3.12.15 Return of Partnership Income

Manual Transmittal

November 14, 2016

Purpose

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

Material Changes

(1) Minor editorial changes have been made throughout this IRM (e.g., line number updates, spelling, punctuation, links, etc,). Other significant changes to this IRM are shown below.

(2) IRM 3.12.15.1.1(1), (2), and (2) b, IRS Employee Contacts - RRA98, Section 3705(a) - Changed "face to face" to "face-to-face" per Chief Counsel IRM 3.12.217 feedback.

(3) IRM 3.12.15.1.1(2) c. - IRS Employee Contacts - RRA98, Section 3705(a) - Changed "where the taxpayer's question can be answered" to "that taxpayers can call for answers to any questions they may have" and changed "their title" to "the employee’s title" per Chief Counsel IRM 3.12.217 IRM feedback. (07-27-2016)

(4) IRM 3.12.15.1.1(2) j. Note - IRS Employee Contacts - RRA98, Section 3705(a) - Reworded and added acronym "TBOR" per TAS IRM 3.11.249 feedback. (07-27-2016)

(5) IRM 3.12.15.1.2(1), IRM Deviation Procedures - Changed the IRM reference for IRM 1.11.2, Internal Revenue Manual (IRM) Process, from IRM 1.11.2.2 to IRM 1.11.2.2.4 and the title. (IPU 16U0011 issued 01-04-2016)

(6) IRM 3.12.15.1.3(1), Taxpayer Advocate Service (TAS) - Added acronym "TBOR" and link, "Taxpayer Bill of Rights" per Chief Counsel IRM 3.11.249 feedback.

(7) IRM 3.12.15.1.4, Frivolous Returns and Claims - Changed IRM 4.10.12 (obsolete) to IRM 25.25.10, Frivolous Return Program. The information has been moved to IRM 25.25.10 to be under the same chapter and section as all other Integrity & Verification Operation (IVO) IRM data. (IPU 16U0517 issued 03-14-2016)

(8) IRM 3.12.15.1.4(1) - Removed (FRP) from Frivolous Return Program title per IRM 3.12.217 review and feedback.

(9) IRM 3.12.15.1.12.2, Use of Fax for Taxpayer Submissions - Changed "fax" to "faxed" and added information and a link about accepting signed taxpayer documents by fax per Chief Counsel IRM 3.11.249 feedback.

(10) IRM 3.12.15.1.15(1), Criminal Investigation (CI) "Funny Box" - Reworded to be consistent with Code and Edit Consistency template. (IPU 16U0517 issued 03-14-2016)

(11) IRM 3.12.15.1.15, Criminal Investigation (CI) Referral - Changed "Funny Box" to "Referral" per Criminal Investigation (CI) IRM 3.11.217 feedback. (IPU 16U1430 issued 09-26-2016)

(12) IRM 3.12.15.1.16(2), Examination (Exam) Funny Box - Removed paragraph to accentuate the need to identify special returns for examination. (IPU 16U0517 issued 03-14-2016)

(13) IRM 3.12.15.1.17(1) - BMF Identification (ID) Theft - Removed "Funny Box" and added "Criminal Investigation (CI), Examination (Exam)" . (IPU 16U1430 issued 09-26-2016)

(14) IRM 3.12.15.3.2(2), Error Record Format - Added Form 1065-B to Field 01TXB (Tax Period Beginning).

(15) IRM 3.12.15.3.4(3), Field 01EIN - Employer Identification Number - Added EIN prefixes 20, 26, 27, 45, 46, 47, 69, 70, and 81 to invalid EIN prefixes.

(16) IRM 3.12.15.3.6(1), Field 01RCD - Received Date - Changed due date from the fourth month to the third month. (01-04-2016)

(17) IRM 3.12.15.3.6(4)c)(2) Field 01RCD - Received Date - Deleted Table, information complete in paragraph (4)c).

(18) IRM 3.12.15.3.6(5)b),Field 01RCD - Received Date - Deleted Paragraph (5)b) Table contained unnecessary information and was not 508 compliant.

(19) IRM 3.12.15.3.7(4), Field 01CCC - Computer Condition Code - Add CCC "2" to valid Computer Condition Codes when Form 8938, Statement of Specified Foreign Financial Assets is attached to a 201601 and subsequent return.

(20) IRM 3.12.15.3.8(1) and (4)b, Field 01TXB - Tax Period Beginning - Added Form 1065-B to Field 01TXB (Tax Period Beginning) in paragraphs (1) and (4). Also, "Reminder " in paragraph (4).

(21) IRM 3.12.15.3.11(4)c, Field 01NOP - Number of Partners - Added IRM reference 3.12.15.1.14.1 to provide a description of a "Short Record Return."

(22) IRM 3.12.15.3.30(4), Field 01ADC - Audit Code - Updated Instructions for Form 8621, Audit Code "2" . with current Line numbers and form title.(IPU 16U0011 issued 01-04-2016)

(23) IRM 3.12.15.3.30(4), Field 01ADC - Audit Code - Updated Instructions for Form 8621, Audit Code "7" . with current Line numbers and form title. (IPU 16U0011 issued 01-04-2016)

(24) IRM 3.12.15.3.36(4)b, Field 01HSC - Historic Structure Code - Form 3468, Investment Credit was revised for PY 2017. The field instructions were updated accordingly.

(25) IRM 3.12.15.7.5(4)2, Field 05FAD - Foreign Address- If/And/Then Table - Added instructions to send Form 8822-B to Entity if Line 8 and Line 9 are present (IPU 16U1147 issued 06-27-2016).

(26) IRM 3.12.15.7.6Field 02ADD - Street Address - Added If/And/Then Table with instructions for Forms 8822 and 8822-B (IPU 16U1147 issued 06-27-2016).

(27) IRM 3.12.15.9.2(2)Table, Error Format - Added plus and negative fields to Section 10, Schedule D, Form 1065. (IPU 16U0478 issued 03-08-2016)

(28) IRM 3.12.15.11.2, Error Record Format - Added Field 21CBX to Section 21.

(29) IRM 3.12.15.13.2 (3) 7, Error Code 002- Name Control Mismatch. If/Then Table - First Then box - 2. Note - Last bullet - Reworded to read: The TIN on the return is the taxpayer's SSN (check CC INOLEG) (IPU 16U1255 issued 08-01-2016).

(30) IRM 3.12.15.13.3, Error Code 003 – Check Digit Invalid - Added Error Code 003 - Check Digit Invalid information back into IRM since the programming is not going to be fixed presently. (IPU 16U0011 issued 01-04-2016)

(31) IRM 3.12.15.13.3 (3) 3, Error Code 003– Check Digit Invalid - If/Then Table - Third Then box - 2. Note - Last bullet - Reworded to read: The TIN on the return is the taxpayer's SSN (check CC INOLEG). (IPU 16U1255 issued 08-01-2016)

(32) IRM 3.12.15.13.4 (3) 7, Error Code 004 - Name Control/EIN Validation. - If/Then Table - First Then box - 2. Note - Last bullet - Reworded to read: The TIN on the return is the taxpayer's SSN (check CC INOLEG). (IPU 16U1255 issued 08-01-2016)

(33) IRM 3.12.15.13.5(4), Error Code 005 - Invalid Tax Year or Received Date - New - Added IRS Received Date for faxes - Enterprise Electronic Fax (EEFax) per memo “Revision of Policy for Use of Fax in Taxpayer Submissions” dated November 19, 2015. (IPU 16U0596 issued 03-24-2016)

(34) IRM 3.12.15.13.5(4), Error Code 005 - Invalid Tax Year or Received Date- Revised IRS Received Date for EEFax information per conference call with Chief Counsel on July 22, 2016. (IPU 16U1255 issued 08-01-2016)

(35) IRM 3.12.15.13.8 (3)b Table, Error Code 008 - Tax Period Beginning Missing - Clarified instructions to only include "Initial" Short Period returns when using "Date Business Started" as Tax Period Beginning Date. (IPU 16U1147 issued 06-27-2016)

(36) IRM 3.12.15.13.14(3)f), Error Code 026 - Tax Period Mismatch - Deleted Transaction Codes (TC) 090-097. These Transaction Codes refer to Form 1120S/Form 2553/small business election.

(37) IRM 3.12.15.13.23(3)b), Error Code 734 - Total Income and Computer Amount Differ - Changed Field 0210 to Field 0211 in first row of "If" "Then" Table. (IPU 16U0011 issued 01-04-2016)

(38) IRM 3.12.15.13.23(3)b Table, Error Code 734 - Total Income and Computer Amounts Differ - Combined information in rows 2 and 4.

(39) IRM 3.12.15.13.24(3)b Table, Error Code 736 - Total Deductions and Computer Amounts Differ - Combined information in rows 5 and 8.

(40) Exhibit 3.12.15-1, Action Codes - Unspanned cells that were merged in order to be 508 Compliant per IRM 1.11.2.5.4(2).

(41) Exhibit 3.12.15-4, U.S. Possessions/Territories State Abbreviations and Zip Codes - Unspanned cells that were merged in order to be 508 Compliant per IRM 1.11.2.5.4(2).

(42) Exhibit 3.12.15-9, Potential Frivolous Arguments for Examination Review - Form 1099-OID - Description Column - Removed "Caution" with special care requirements for Form 1099-OID. (IPU 16U0517 issued 03-14-2016)

(43) IRM references updated throughout the IRM.

(44) Figures revised throughout the IRM.

(45) Exhibits revised throughout the IRM.

Effect on Other Documents

IRM 3.12.15, dated October 17, 2015, (effective January 1, 2017) is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - 16U0011, 16U0478, 16U0517, 16U0596, 16U1147, 16U1255, and 16U1430.

Audience

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

Effective Date

(01-01-2017)

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

Overview

  1. The information captured on Form 1065 and Form 1065-B is used by several functions within the Internal Revenue Service such as Exam Classification and Statistics of Income (SOI). SOI tabulates the data and shares it with agencies outside of the Internal Revenue Service such as the Office of Tax Analysis (OTA), Bureau of Economics (BEA) and the Joint Commerce.

  2. Form 1065, U.S. Return of Partnership Income is an information return used to report the income, deductions, gains, losses, etc., from the operation of a partnership. A partnership does not pay tax on its income but "passes through" any profits or losses to its partners. Partners must include partnership items on their tax returns.

    Exception:

    Partnership returns identified as a "Publicly Traded Partnership" (PTP) will pay a tax on income derived from the active conduct of all trades and businesses of the partnership. These returns will have the annotation "3.5% GROSS INCOME TAX" on Line 22 of the Form 1065 (above or below the Ordinary Business Income (Loss) amount) and the amount of tax owed. These returns are processed in the Ogden Submission Processing Campus (OSPC). See IRM 3.12.15.1.14.4.

  3. Certain partnerships who received a Qualifying Therapeutic Discovery Project grant under Section 9023 of the Affordable Care Act (ACA), and need to recapture part of the grant, will use Form 4255 to report the increase in tax along with filing Form 1065. The Form 1065 should have a notation "QTDP" and money amount in the margin near Line 22. If Form 4255 is attached process as follows:

    1. Verify the Employer Identification Number (EIN) and name on return with Form 4255.

    2. Detach Form 4255.

    3. Edit CCC "X" and action trail on Form 1065.

    4. Photocopy front page of Form 1065.

    5. Route photocopy of return and Form 4255 to Accounts Management.

    6. Continue processing Form 1065.

  4. Form 1065-B, U.S. Return of Income for Electing Large Partnerships, was created as a result of the Tax Reform Act (TRA) of 1997 to reduce the burden for the partners and increase the IRS' ability to match income and deduction amounts reported to individual partners on their individual income tax returns. These returns are processed in the Ogden Submission Processing Campus.

    1. A partnership may elect to file Form 1065-B if the partnership had 100 or more partners during the preceding tax year.

    2. A partnership cannot make the election to file Form 1065-B for its first tax year.

  5. This IRM cannot address every possibility that may arise while correcting returns or documents. Taxpayer intent must be taken into consideration. In some cases it may be necessary to refer the issue to your Subject Matter Expert (SME), lead and/or manager to determine the proper corrective action.

♦IRS Employee Contacts - RRA98, Section 3705(a)♦

  1. The Restructuring and Reform Act of 1998 (RRA 98) Section 3705(a), provides identification requirements for all IRS employees working tax related matters. IRS employees are required to give their name and unique identification number during taxpayer telephone, face-to-face, and written contact. In addition, a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax related matters.

  2. All IRS employees who communicate by telephone, correspondence or face-to-face, with taxpayers or their personal representatives, on tax-related matters are required to provide (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.

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

    3. Correspondence- All correspondence must include a telephone number that taxpayers can call for answers to any questions they may have. . In addition, manually generated and handwritten correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, and IDRS (Integrated Data Retrieval System), letter system, or their badge identification (ID Card) number.

    4. The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the badge identification (ID Card) number must be used. Toll-free employees may also provide their location for identification purposes. Faxes to taxpayers on tax related matters are considered manually-generated correspondence and must include the required information.

    5. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

    6. When a taxpayer asks to speak with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

    7. Correspondence letter will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information.

    8. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

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

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

    Note:

    The Taxpayer Bill of Rights (TBOR) was adopted by IRS in June 2014 and provides that taxpayers have the right to receive prompt, courteous and professional assistance in their dealings with the IRS. They are to be spoken to in a way that is easily understood and any correspondence from the IRS must be clear and understandable. They have the right to speak to a supervisor whenever quality service is not received.

♦IRM Deviation Procedures♦

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.4, Internal Management Documents System - Internal Revenue Manual (IRM) Process, When Procedures Deviate from the IRM, and elevated through appropriate channels for executive approval.

♦Taxpayer Advocate Service (TAS)♦

  1. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels. For additional information on the Taxpayer Bill of Rights, visit http://taxpayeradvocate.irs.gov/About-TAS/Taxpayer-Rights

  2. Refer taxpayers to TAS when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case 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. "Same day" includes cases that can be completely resolved in 24 hours, as well as cases where steps can be taken within 24 hours to begin resolving the issue. (See also IRM 13.1.7.4, Same Day Resolution by Operations.) When making a TAS referral, use Form 911, and forward to TAS in accordance with your local procedures.

♦Taxpayer Advocate Service - Service Level Agreement (SLA)♦
  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business and Self-Employed (SB/SE) Division, Tax Exempt and Government Entities (TE/GE), Criminal Investigation (CI), Appeals and Large Business & International (LB&I), that outline the procedures and responsibilities for the processing of 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 located at http://tas.web.irs.gov/policy/sla/default.aspx.

♦Frivolous Returns and Claims♦

  1. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program, shown in Exhibit 3.12.15-9, Potential Frivolous Arguments for Examination Review.

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

    If... Then...
    The return meets any of the conditions identified as a frivolous return, (See Exhibit 3.12.15-9)

    Exception:

    If the return shows Action Code 331 and has a Form 4227 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 Processing (FRP) for review.
    Examination has selected the return as frivolous, indicated by Action Code 331 and a Form 4227 with the remarks, "Refer to Exam FRP for audit after processing" but sends the return for processing, Continue processing the return using procedures in IRM 3.12.15. However, do not circle or void the Action Code indicating a frivolous return.

    Note:

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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" )

    • Document Code 68 - Form 1065-B

♦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. Topics for the BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden, and Paper Processing Branch BMF Code and Edit/ERS section.

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

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

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 additional 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 provided.

  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 and Form 1065-B 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 indicated 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 units positions are aligned beneath one another.

    • Sufficient leading blanks are displayed preceding the shorter amounts so that the unit position of these amounts are 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 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 Command Code CRECT.

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

    1. Enter Command Code 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 containing data before transmitting.

  7. If it is necessary to delete a section of the record, enter Command Code 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 additional information or research is necessary to resolve the error (or if the error is rejected), enter the appropriate Action Code with either Command Code SSPND or RJECT.

Command Codes

  1. The Command Codes needed for correcting the Error Inventory and the Workable Suspense Inventory are briefly described below. Any Command Code 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 contains 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% 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 indicates that specific information is missing or that the record is to be rejected from processing. The code will have sufficient detail to indicate 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 numbered returns when they determine that the document is unprocessable in its present form either by needing additional information or some manual intervention is required. This code will be entered in the bottom left margin of the return.

  4. 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.

  5. The Action Code assigned by Document Perfection will be transcribed into the record of the Form 1065 or Form 1065-B.

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

  7. 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.

  8. 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.

  9. 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 a Command Code SSPND, RJECT or NWDLN. See IRM 3.12.38, Error Resolution System (ERS), BMF General Instructions for additional information.

    4. Enter a valid Action Code with the SSPND Command Code 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 the RJECT Command Code 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 3.12.15.1.12.1 for correction procedures for "CIS" returns.

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

    1. Use the IDRS Correspondence feature Command Code 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 3.12.15-11.

  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 indicate 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 ADDITIONAL INFORMATION" .

    2. Provide for a purge date at least 10 days after the date provided 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 contains 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 (including Form 1065 and Form 1065-B) into digital images and working the cases from those images.

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

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

    If... And... Then...
    The "CIS" return has a Form 13596 attached,

    Note:

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

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

      Note:

      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 "Additional information needed to process incomplete CIS return" on Form 4277 or other appropriate routing slip.

    2. Void the DLN.

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

    Note:

    Do not correspond for missing information on "CIS" reprocessable/reinput return.

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

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

    Note:

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

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

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

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

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3. Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Also, before leaving any messages on a taxpayer’s answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

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

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

  3. The BMF campus cycles are:

    • Campus Cycle: Thursday - Wednesday

    • Master File Processing: Friday - Thursday

    • Notice Review Saturday: Monday (8+ days)

    • Unpostables: New available Tuesday; Closing Tuesday

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

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

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

      Note:

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

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

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

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

    .

Perfection of Attachments

  1. Review all attachments to determine proper disposition:

    If... Then...
    Unrelated, unanswered partnership correspondence is attached and no action has been taken, Detach and route to the appropriate area using Form 4227.
    Unanswered partnership correspondence relating to the Form 1065 or Form 1065-B 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 contain name, address, EIN and received date.

Special Conditions

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

    • Short Length Records

    • Non-ADP (Automatic Data Processing) Return

    • Section 6020(b) Returns

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

    • Amended Returns

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

    • Common Trusts. See IRM 3.12.15.3.7(4) CCC 5 for definition.

    • Nominee returns (IRM 3.12.15.1.14.1.1).

    • IRC §761(a) Elections (IRM 3.12.15.1.14.1.2)

    • 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
    Section 06 Address (only if address has changed) on Form 1065-B

    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 margin between the form number and form title 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 contain 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 contains 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, 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 additional 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 require, 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 and reject the record with Action Code 620.

    2. If RJECT Command Code is not in your profile, use SSPND Command Code 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 Campus (OSPC).

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

  3. See IRM 3.12.15.13.25 for correction procedures for Error Code 737 that, if generated, applies only to these PTP returns.

♦Criminal Investigation (CI) Referral♦

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

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

    Caution:

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

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

    Caution:

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

    1. Make a copy of the return.

    2. Attach Form 4227 to the copy.

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

      Cincinnati Ogden
      Mail Stop 83G, Criminal Investigation (CI) Mail Stop 9001, Criminal Investigation (CI)
    4. Continue processing the return.

    5. Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.

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

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

♦Examination (Exam) "Funny Box" Criteria♦

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

♦BMF Identification (ID) Theft♦

  1. BMF Identification Theft is increasing. If a tax examiner in Submission Processing (SP) Error Resolution System (ERS) finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft:

    1. SSPND "360" to route the return to Planning & Analysis (P&A).

    2. Attach Form 4227 (or other appropriate routing slip) with the notation "ID THEFT" .

    3. Provide the entire case to your senior/lead.

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

Types of Errors

  1. This section provides a description of the types of errors generated during Form 1065 and Form 1065-B 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 GTSEC. (See IRM 3.12.15.1.10). 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 indicated 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.

    • 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 Command Code DLSEC with the section number.

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

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

    • All fields present for the section must be examined and the necessary correction(s) made to all the fields.

  5. Correction Procedures:

    • Command Code CRECT will be displayed. If the section needs to be deleted, use Command Code 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 numeric field.

    • Non-alphabetical character in an alpha field.

    • Blank space in a numeric 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 provides instructions for correcting Section 01 error conditions.

General Information

  1. Section 01 contains 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 numeric.

  3. If a numeric 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 contained in Section 01 of Form 1065 and Form 1065-B. See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income and Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

  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 Field Length Title Location on Form 1065 or Form 1065-B
    01NC 4 Name Control/Check Digit First Name line Form 1065 or Form 1065-B, page 1
    01EIN 9 Employer Identification Number Form 1065 or Form 1065-B, page 1, Box "D"
    01TXP 6 Tax Period Form 1065 or Form 1065-B, page 1, between form Title and OMB Number
    01RCD 8 Received Date Form 1065 or Form 1065-B, page 1, Deduction Area
    01CCC 10 Computer Condition Code Form 1065, page 1, dotted portion of Line 1a or Form 1065-B, page 1, dotted portion of Line 3
    01TXB 8 Tax Period Beginning Form 1065 or Form 1065-B, page 1, Left of field 01TXP
    01NAI 6 North American Industry Classification Code System (NAICS) Form 1065 or Form 1065-B, page 1, Box "C"
    01DOB 6 Date Business Started Form 1065 or Form 1065-B, page 1, Box "E"
    01NOP 6 Number of Partners Form 1065 or Form 1065-B, 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 or Form 1065-B, page 1, Box "H"
    01M3 1 Schedule M-3 Form 1065 or Form 1065-B, page 1, Box "J"
    01LPC 1 Limited Partnership Code Form 1065 or Form 1065-B, page 2, Schedule B, Line 1
    01DPC 1 Dual Partner Code Form 1065 or Form 1065-B, page 2, Schedule B, Line 2
    01MPC 1 Multi Partner Code Form 1065-B, page 2, Schedule B, Line 3
    01FDC 1 Foreign/Domestic Corporation Code Form 1065, page 2, Schedule B, Line 3a
    01INE 1 Individual/Estate Ownership Code Form 1065, page 2, Schedule B, Line 3b
    01PCS 1 Ownership of Foreign or Domestic Corporation Code Form 1065, page 2, Schedule B, Line 4a
    01DPT 1 Ownership of Foreign Partnership or Trust Code Form 1065, page 2, Schedule B, Line 4b
    01PTT 1 Partnership Level Tax Treatment Election Code Form 1065, page 2, Schedule B, Line 5
    01DPA 1 Distribution of Property Code Form 1065, page 3, Schedule B, Line 12a
    01DRE 6 Number of Form 8858 attached Form 1065, page 3, Schedule B, Line 15
    01FPI 6 Number of Form 8805 attached Form 1065, page 3, Schedule B, Line 16
    01FPC 1 Foreign Partner Code Form 1065, page 3, Schedule B, Line 16 (Form 1065-B, page 2, Schedule B, Line 4)
    01NFC 3 Number of Form 5471 attached Form 1065, page 3, Schedule B, Line 19
    01IR1 6 Number of Form 8865 attached Form 1065, page 3, Schedule B, Line 17 (Line 9 on Form 1065-B)
    01ADC 9 Audit Code Form 1065, page 1, left margin next to Line 9. Form 1065-B, page 1, left margin next to Line 12.
    01SIC 1 Special Income Code Form 1065, page 1, left margin next to Line 9. Form 1065-B, page 1, left margin next to Line 12.
    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. Form 1065-B, page 1, left margin next to Line 12
    01NRL 1 Nonrecourse Loan Code Form 1065, page 1, left margin next to Line 9. Form 1065-B, page 1, left margin next to Line 12
    01MSC 2 Missing Schedule Code Form 1065, page 1, left margin next to Line 9. Form 1065-B, page 1, left margin next to Line 12
    01HSC 1 Historic Structure Code Form 1065, page 1, left margin next to Line 9. Form 1065-B, page 1, left margin next to Line 12.
    01SWC 1 Salary and Wage Code Form 1065, page 1, right margin next to Line 9. Form 1065-B, page 1, right margin next to Line 12
    01EP 1 EPMF (Employee Plans Master File) Code Form 1065, page 1, right margin next to Line 19. Form 1065-B, page 1, right margin next to Line 22
    01PSN 9 PTIN (Preparer Tax Identification Number)

    Note:

    For Tax Year 2009 and prior, field may indicate Preparer SSN (Social Security Number)

    Form 1065 and Form 1065-B, page 1, Preparer PTIN area
    01PEN 9 FIRM's Employer Identification Number Form 1065 and Form 1065-B, page 1, Preparer EIN area
    01CBI 1 Paid Preparer Checkbox Indicator Form 1065 and Form 1065-B, bottom page 1 to the right of signature date
    01PTN 10 Paid Preparer Phone Number Form 1065 and Form 1065-B, bottom page 1 below preparer EIN

Field 01NC - Name Control/Check Digit

  1. Description - Field 01NC is located in the Entity Section of Form 1065 and Form 1065-B.

  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, numeric, 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 located in the Entity Section of Form 1065 and Form 1065-B, Box "D" .

  2. Valid Condition - Field 01EIN must contain nine numeric digits.

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

    • The EIN is not numeric.

    • The EIN is less than nine characters.

    • The first two digits of the EIN are: 00, 07, 08, 09, 17, 18, 19, 20, 26, 27, 28, 29, 45, 46, 47, 49, 69, 70, 78, 79, 81, 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 Command Code NAMEE/NAMEB.

      2. If located, 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 indicates the account has been "Merged To" or "Merged From" ; or the EIN on the return is the taxpayer’s SSN and research shows there is no valid entity on Master File for that EIN.

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

    If... Then...
    Entity located 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 located on page 1, between Form Title and OMB Number of Form 1065 and Form 1065-B. Tax Period ending is printed in year (YYYY), month (MM) format e.g., Dec. 31, 2016 is printed 201612.

  2. Valid Condition - The Tax Period must be present and contain six numeric digits.

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

    • The Tax Period is not all numeric.

    • 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., 2016), 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 located, 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 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 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 numeric 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.

    • If the 15th is a Saturday, Sunday or holiday, the due date is the first workday thereafter.

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

    • 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 numeric.

    • 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., 20150115 instead of 20160115), and other information (Julian date, postmark date, and/or signature date) indicates 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 indicates 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 numeric field edited on the dotted portion of Line 1a, Form 1065 and Form 1065-B.

  2. Valid Condition - Valid characters are "A" , "B" , "D" , "F" , "G" , "I" , "L" , "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 or Form 1065-B 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 and Form 1065-B.

    CCC Description
    A Date Business Started is blank.
    B Schedule M-3 is attached or Line J is checked "YES" .
    D Partnership provided 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 or Form 1065-B 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 exceptSTW 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.
    L Form 8833, Treaty-Based Return Position Disclosure Under IRC §6114 or IRC §7701(b), is attached.
    O Manual Refund/Settlement Freeze
    Q Return filed claiming Telephone Excise Tax (TETR) Only (Form 8913, Credit for Filing Telephone Excise Tax Paid)
    CCC "Q" is no longer edited by C & E. If CCC "Q" is edited in error by C & E, remove CCC "Q" .
    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 or credits or partnership states it's inactive

    • Form 13133, Expedite Processing Cycle, is attached and Examination indicates 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, 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 subsequent.

    Note:

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

    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 to a 201601 and subsequent return.
    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 located to the left/near the title of Page 1, Form 1065 or Form 1065-B. The Tax Period Beginning Date is printed in YYYYMMDD format, e.g., September 1, 2016 is printed 20160901.

  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 numeric digits.

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

    • The Tax Period beginning date is not all numeric.

    • 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 201212 and Tax Period beginning date is 1/1/2013 or later).

    • The Tax Period beginning date is earlier than 12 months before Tax Period end date (e.g., if tax period is 201612, and Tax Period beginning date is 11/01/2015 or earlier)

  4. Correction Procedures:

    1. Correct coding and transcription errors.

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

      Reminder:

      An "Initial Return" cannot be filed using Form 1065-B.

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

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

  2. Valid Condition:

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

    • Blanks on all short length records. (See IRM 3.12.15.1.14.1)

  3. Invalid Condition:

    • Not numeric

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

    • Entry present and Section 02 is not present.

    • Entry contains six of the same digit.

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

    1. Form 1065 or Form 1065-B, Box "C" , Business Code Number.

    2. Form 1065 or Form 1065-B, Box "A" , Principal Business Activity.

    3. Form 1065 or Form 1065-B, 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 numeric field located on page 1, Box "E" of Form 1065 and Form 1065-B.

    • Date Business Started is entered in year (YYYY), month (MM) format e.g., Dec. 31, 2013 is printed 201312.

  2. Valid Condition:

    • Valid characters are numeric only.

    • Field 01DOB may be blank.

  3. Invalid Condition:

    • The Date Business Started is not all numeric 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 is 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 located on page 1, Line I on Form 1065 and Form 1065-B.

    • 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 numeric, 2 through 999,999. See Figure 3.12.15-6.

  3. Invalid Condition:

    • Not numeric.

  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 Tax Periods prior to 200812, 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 3.12.15.1.14.1 for a description of a Short Record, Enter "2" in Field 01NOP.
      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Form 8825 is not attached, Enter "2" in Field 01NOP.
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (1) If Schedule K-1s are attached, enter the number of Schedule K-1s to Field 01NOP and continue processing.
      (2) If Schedule K-1s are not attached, and there is no indication C&E issued Letter 1355C for the missing Schedule K-1s, 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 Schedule K-1s or an indication C&E issued Letter 1355C for missing Schedule K-1s. and/or missing Form 8825, if needed, etc.

        Note:

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

      2. If Schedule K-1s are attached, enter the number of Schedule K-1s 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 Schedule K-1s or, an indication C&E issued Letter 1355C, e.g. for missing Schedule K-1s. 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 or Form 1065-B if they issue Letter 1355C

      2. If there is no Schedule K-1s 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 indicates that the number of Schedules K-1 is "1" or the attached Schedule K-1 shows 100% 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 Schedule K-1s for each partner using Letter 1355C.
      Partnership entity section indicates:
      • "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 indicates payment to a retired or deceased partner or cites IRC §736 or Treasury Regulations 1.736–1, Enter "2" in Field 01NOP.
      The partnership indicates 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 indicate 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 Schedule K-1s,
      1. Change the number of Schedules K-1 to the number provided 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 K-1s to Batching & Numbering to process the Schedule K-1s.

    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 contain 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 located on Line G, Box (6) Technical termination - also check (1) or (2), page 1 of Form 1065.

  2. Valid Condition - Blank or "1" .

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

  4. 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.
    Box (6) on Line G is not checked Leave Field 01TT blank.

Field 01AMC - Accounting Method Code

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

  2. Valid Condition - Entry must be numeric 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 located on Line J, page 1 of Form 1065 and Form 1065-B.

  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 located on Page 2, Schedule B, Line 1 of Form 1065 and Form 1065-B.

  2. Valid Condition - Must be blank or numeric "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 of Form 1065 and Form 1065-B.

  2. Valid Condition:

    • Blank or numeric.

    • "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 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, Leave Field 01DPC blank.
    1. If Schedule B is not attached and the tax year is 1991 and subsequent, determine and correct Field 01DPC as follows:

      If... Then...
      Schedule K-1 is attached and Question I (i) indicates 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 01MPC - Multi-Partner Code

  1. Description - Field 01MPC is based on the partnership response to the question on Page 2, Schedule B, Line 3 on Form 1065-B.

  2. Valid Condition:

    • Must be numeric or blank.

    • "1" , "2" , "3" , or blank for full length records.

    • Blank on short length records.

  3. Invalid Condition:

    • Not numeric or blank.

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

    • Other than blank on short length records.

  4. Correction Procedures:

    If... Then...
    Field 01MPC was transcribed incorrectly, Enter the correct Multi-Partner Code from Page 2, Schedule B, Line 3 on Form 1065-B.
    The "YES" box is checked, Enter "1" in Field 01MPC.
    The "NO" box is checked, Enter "2" in Field 01MPC.
    Both boxes are checked, Enter "3" in Field 01MPC.
    Neither box is checked, Leave Field 01MPC blank.
    1. If Schedule B is not attached and the tax year is 1991 and subsequent, examine the return and attachments for Form 8865, Information Return of U.S. Persons With Respect to Certain Foreign Partnerships. Determine and correct Field 01MPC as follows:

    If... Then...
    Form 8865 is attached, Enter "1" in Field 01MPC.
    Form 8865is not attached, Enter "2" in Field 01MPC.

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 3a of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "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 3a.
    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 3b of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "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 3b.
    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 4a of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "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 4a.
    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 4b of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "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 4b.
    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 of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "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 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, 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 12a on Schedule B of Form 1065.

  2. Valid Condition - Numeric 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 12a.
    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.
    Prior to 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 15 on Form 1065.

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition:

    • No numeric

    • 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 15.
    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 16 on Form 1065.

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition:

    • No numeric

    • 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 16.
    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 16 on Schedule B on Form 1065 (Line 4 on Form 1065-B), "Does this partnership have any foreign partners?"

  2. Valid Condition - Numeric 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 16 (Line 4 on Form 1065-B).
    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 located on Page 2, Schedule B, Line 17 on Form 1065 (Line 9 on Form 1065-B).

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition:

    • Not numeric.

    • 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 17 (Line 9 on Form 1065-B).
    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 located on page 3, Schedule B, Line 19 on Form 1065.

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition:

    1. Not numeric.

    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 19.

Field 01ADC - Audit Code

  1. Description - Field 01ADC is a numeric field edited in the left margin next to Line 9 of Form 1065 (Line 12 of Form 1065-B). Identified by "1 -" followed by the appropriate audit code(s). Audit Codes are used to identify specific conditions requested by Examination.

  2. Valid Condition:

    • Numeric (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 numeric 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 contains 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 11 (Foreign Trust), is answered "YES"

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

    • Form 1065, page 3, Schedule B, Line 16 (Field 01FPI) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or Field 01FPC is answered "YES" .

    • Form 1065, page 3, Schedule B, Line 17 (Field 01IR1) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

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

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

    • Form 1065-B, page 2, Schedule B, Line 3, is answered "YES" .

    • Form 1065-B, page 2, Schedule B, Line 4 (Field 01FPC) is answered "YES" .

    • Form 1065-B, page 2, Schedule B, Line 8 is answered "YES"

    • Form 1065-B, page 2, Schedule B, Line 9 (Field 01IR1) is greater than 0 (zero).

    • 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 prior, 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, is attached.

    • Form 8865, Information 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.

    5
    • Form 8283, Noncash Charitable Contributions, is attached and Page 2, Part I, Question 4, Art (contribution of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ), Box (a) (Rev 2013) is checked. (For prior year form See Page 2, Part II, Question 2, Box "1" ) or

    • Form 8283, Noncash Charitable Contributions, is attached and Page 2, Part I, Question 5, Column (c) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . (For prior year form See Page 2, Part II, Question 3, Column (c)).

    • 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, Question 12a (Field 01DPA) is answered YES.

    • Form 1065, page 4, Line 16l, 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 prior, 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 5c (Property Distribution), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Field 01SIC - Special Income Code

  1. Description - Field 01SIC is edited in the left margin next to Line 9 of Form 1065 (Line 12 of Form 1065-B) 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 numeric field located on the partnership reply to correspondence.

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

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

    • Not numeric.

    • Not in MMDDYYYY 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 prior to 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 (Line 12 of Form 1065-B) as "3 -" followed by the appropriate code when Form 6252, Computation of Installment Sales Income, is attached.

  2. Valid Condition - Numerics "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 Indicates a "Yes" to Question "3" of Form 6252, Installment Sale Income.
    2 Indicates a "No" to Question "3" of Form 6252.
    3 Indicates 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 (Line 12 of Form 1065-B) as "4 -1" when there is an entry on Schedule L, Line 18, Columns (b) or (d) and/or Schedule K-1, Question M (Schedule L, Line 18, Columns (b) or (d) on Form 1065-B).

  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 indicates 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 numeric 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 provide missing TINs on Schedule K-1, Enter Missing Schedule Code "33" in Field 01MSC and continue processing.
    Taxpayer provides missing K-1s 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 (Line 12 of Form 1065-B) 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 subsequent, 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 prior, 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 (Line 12, Form 1065-B).

  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 contain a "1" if any of the following conditions exist:

      Field 01SWC
      • An entry is present on Page 1, Line 9, Form 1065 (Line 12 on Form 1065-B)

      • 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 prior)

      • 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 19 of Form 1065 (Line 22, Form 1065-B).

  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 contain a "1" if any of the following conditions exist:

      Field 01EP
      • An entry on Line 18, Form 1065 (Line 21 on Form 1065-B).

      • 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 and Form 1065-B (below the Taxpayer Signature section). Data may or may not be present in Fields 01PSN and 01PEN.

  2. Valid Condition - Entries are blank, all numeric or a "P" for the first character followed by eight numeric 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:

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

    2. Field 01PEN is other than nine numeric digits.

    3. Fields contain all zeroes.

    4. Fields contain 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 or Form 1065-B.
      Only a valid EIN is located, Enter the EIN in Field 01PEN and on Form 1065 or Form 1065-B.
      Only a valid SSN is located, Enter the SSN in Field 01PSN and on Form 1065 or Form 1065-B.
      A valid PTIN is present and an EIN is also present, Enter the PTIN in Field 01PSN and on Form 1065 or Form 1065-B.
      A valid PTIN is present and a SSN is also present, Enter the PTIN in Field 01PSN and on Form 1065 or Form 1065-B.
      A valid PTIN is not present but both an EIN and SSN are present, Enter the SSN in Field 01PSN and on Form 1065 or Form 1065-B.
      A valid TIN (PTIN, EIN or SSN) cannot be located, 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 and Form 1065-B, to the right of the signature date. The checkbox is used to indicate 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 and Form 1065-B, 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.

Section 02 Errors

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

General Information

  1. Section 02 contains 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 and Form 1065-B. See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income and Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

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

    Field 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 12a(1) (+) Form 1065, Schedule K, Line 15b
    02KB1 15 Qualified Rehab (+) Form 1065, Schedule K, Line 15c
    02FTP 15 Foreign Gross Passive Income (±) Form 1065, Schedule K, Line 16d
    02FTG 15 Foreign Gross Income - Other (±) Form 1065, Schedule K, Line 16f
    02DIN 15 Interest Expense at Partners Level (±) Form 1065, Schedule K, Line 16g
    02DED 15 Foreign Deductions at Partners Level - Other (±) Form 1065, Schedule K, Line 16h
    02DAP 15 Deductions on Foreign Source Income at Partnership Level - Passive (±) Form 1065, Schedule K, Line 16i
    02DAG 15 Deductions on Foreign Source Income at Partnership Level - Other (±) Form 1065, Schedule K, Line 16k
    02FTC 15 Total Foreign Taxes (±) Form 1065, Schedule K, Line 16l
    02FTR 15 Reduction in Foreign Taxes (±) Form 1065, Schedule K, Line 16m
    02MCV 15 Merchant Card Vendor (±) Form 1065, (Rev 2011 only), Line 1a

    Note:

    Field applicable only to Tax Year 2011

  3. The Form 1065-B field designators, the title and the location on the return where the data is obtained is shown below: (See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnership)

    Field Field Length Title Positive/Negative Location on Form 1065-B
    0201A 15 Gross Receipts or Sales (±) Form 1065-B, page 1, Line 1a
    0201B 15 Returns and Allowances (±) Form 1065-B, page 1, Line 1b
    0202 15 Cost of Goods Sold (±) Form 1065-B, page 1, Line 2
    0204 15 Net Income/Loss from Rental Real Estate (±) Form 1065-B, page 1, Line 4
    0205 15 Net Income/Loss from Other Rental Activities (±) Form 1065-B, page 1, Line 5
    0206 15 Ordinary Income (Loss) from Other Partnerships and Estates and trusts (±) Form 1065-B, page 1, Line 6
    0207 15 Net Farm Profit (Loss) from Schedule F (±) Form 1065-B, page 1, Line 7
    0208 15 Excess Net Short-Term Capital Gain (±) Form 1065-B, page 1, Line 8
    0209 15 Net Gain (Loss) from Form 4797 (±) Form 1065-B, page 1, Line 9
    0210 15 Other Income (Loss) (±) Form 1065-B, page 1, Line 10
    0211 15 Total Income (Loss) (±) Form 1065-B, page 1, Line 11
    02TAS 15 Total Assets (±) Form 1065-B, page 1, Box "F"
    02KB1 15 Taxable Income from Trade or Business (±) Form 1065-B, Schedule K, Line 1b(1)
    02KB2 15 Taxable Income (Loss) from Rental Real Estate (±) Form 1065-B, Schedule K, Line 1b(2)
    02KB3 15 Taxable Income (Loss) from Other Rental Activities (±) Form 1065-B, Schedule K, Line 1b(3)
    02K1D 15 Taxable Income (Loss) from Passive Loss Limitation (±) Form 1065-B, Schedule K, Line 1d
    02K02 15 Taxable Income (Loss) from Other activities (±) Form 1065-B, Schedule K, Line 2
    02K03 15 Net Capital Gain (Loss) from Passive Loss Limitation Activities (±) Form 1065-B, Schedule K, Line 4a
    02K04 15 Net Capital Gain (Loss) from Other Activities (±) Form 1065-B, Schedule K, Line 4b
    02K05 15 Net Passive Alternative Minimum Tax Adjustment (±) Form 1065-B, Schedule K, Line 5
    02K06 15 Net Other Alternative Minimum Tax Adjustment (±) Form 1065-B, Schedule K, Line 6
    02K07 15 Guaranteed Payments (±) Form 1065-B, Schedule K, Line 7
    02K08 15 Income from Discharge of Indebtedness (±) Form 1065-B, Schedule K, Line 8
    02K09 15 Tax-Exempt Interest Income (+) Form 1065-B, Schedule K, Line 9
    02K10 15 General Credits (+) Form 1065-B Form 1065-B, Schedule K, Line 10
    02K11 15 Low Income Housing Credit (LIHC) After 1989 (+) Form 1065-B, Schedule K, Line 11
    02K12 15 Rehabilitation Credit from Rental Real Estate (+) Form 1065-B, Schedule K, Line 12
    02FTP 15 Foreign Gross Passive Income (±) Form 1065-B, Schedule K, Line 14d(1)
    02FTG 15 Foreign Gross Income - Other (±) Form 1065-B, Schedule K, Line 14d(3)
    02DIN 15 Foreign Deductions - Interest Expense (±) Form 1065-B, Schedule K, Line 14e(1)
    02DED 15 Foreign Deductions at Partner Level -Other (±) Form 1065-B, Schedule K, Line 14e(2)
    02DAP 15 Foreign Deduction on Passive Income (±) Form 1065-B, Schedule K, Line 14f(1)
    02DAG 15 Foreign Deduction - Other (±) Form 1065-B, Schedule K, Line 14f(3)
    02FTC 15 Total Foreign Taxes (±) Form 1065-B, Schedule K, Line 14g
    02FTR 15 Reduction in Foreign Tax Amount (±) Form 1065-B, Schedule K, Line 14h
  4. Invalid Condition - Any field in Section 02 will be invalid if not all numeric.

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

Section 03 Errors

  1. This section identifies Section 03 field errors.

General Information

  1. Section 03 contains monetary amounts.

  2. The entries are of variable lengths.

  3. All entries are dollars only except 03TAX, 03TET and 03TRV on Form 1065 and 0326, 0327, 0328, 03TET and 03TRV on Form 1065-B 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 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% Tax (+) Form 1065, page 1, write-in above Line 22.
    03TET 15 Federal Telephone Excise Tax (+) Form 1065, page 1, on the dotted line to the left of Line 22
    03TRV 15 Federal Telephone Excise Tax (Verified) (+) ERS Input Only
    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 (±) Schedule F, Line 9* (dotted portion)
    *(Line 11, dotted portion for prior years)
    03FL1 15 Sale of Livestock (±) Schedule F, Line 1c
  3. The Form 1065-B field designators, the title and the location on the return where the data is obtained is shown below: (See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships)

    Field Field Length Title Positive/Negative Location on Form 1065-B
    0312 15 Net Salary and Wages (+) Form 1065-B, page 1, Line 12
    0313 15 Guaranteed Payments to Partners (+) Form 1065-B, page 1, Line 13
    0314 15 Repairs Deduction (±) Form 1065-B, page 1, Line 14
    0315 15 Bad Debts Deduction (±) Form 1065-B, page 1, Line 15
    0316 15 Rent Deduction (+) Form 1065-B, page 1, Line 16
    0317 15 Taxes/Licenses (+) Form 1065-B, page 1, Line 17
    0318 15 Net Interest (+) Form 1065-B, page 1, Line 18
    0319C 15 Depreciation Deduction (±) Form 1065-B, page 1, Line 19c
    0320 15 Depletion (±) Form 1065-B, page 1, Line 20
    0321 15 Retirement Plans (±) Form 1065-B, page 1, Line 21
    0322 15 Employee Benefit Programs (±) Form 1065-B, page 1, Line 22
    0323 15 Other Deductions (±) Form 1065-B, page 1, Line 23
    0324 15 Total Deductions (±) Form 1065-B, page 1, Line 24
    0325 15 Taxable Income (Loss) from Business (±) Form 1065-B, page 1, Line 25
    0326 13 Tax Due (+) Form 1065-B, page 1, Line 26.
    0327 15 Other Payments (+) Form 1065-B, page 1, Line 27
    03TET 15 Federal Telephone Excise Tax (+) Form 1065-B, page 1, on the dotted line to the left of Line 27
    03TRV 15 Federal Telephone Excise Tax (Verified) (+) ERS Input Only
    0328 15 Tax Due/Overpayment (±) Form 1065-B, page 1, Line 28/Line 29
  4. Invalid Condition - Any field in Section 03 will be invalid if not all numeric.

  5. 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 contains 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 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. The Form 1065-B field designators, the title and the location on the return where the data is obtained is shown below: (See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships).

    Field Field Length Title Positive/Negative Location on Form 1065-B
    0401 15 Interest (±) Form 1065-B, page 2, Part II, Line 1
    0402 15 Ordinary Dividends (±) Form 1065-B, page 2, Part II, Line 2a
    0403 15 Royalties (±) Form 1065-B, page 2, Part II, Line 3
    0404 15 Excess Net Short-Term Gain Over Loss (±) Form 1065-B, page 2, Part II, Line 4
    0405 15 Other Income (Loss) (±) Form 1065-B, page 2, Part II, Line 5
    0406 15 Total Income (Loss) (±) Form 1065-B, page 2, Part II, Line 6
    0407 15 Interest Expense (+) Form 1065-B, page 2, Part II, Line 7
    0408 15 State/Local Income Tax (+) Form 1065-B, page 2, Part II, Line 8
    0409 15 Charitable Contributions (+) Form 1065-B, page 2, Part II, Line 9
    0410 15 Total Miscellaneous Itemized Deductions (+) Form 1065-B, page 2, Part II, Line 10a
    0410B 15 Deductible Miscellaneous Amount (+) Form 1065-B, page 2, Part II, Line 10b
    0411 15 Other Deductions (+) Form 1065-B, page 2, Part II, Line 11
    0412 15 Total Deductions (+) Form 1065-B, page 2, Part II, Line 12
    0413 15 Taxable Income (Loss) (±) Form 1065-B, page 2, Part II, Line 13
    04A01 15 Beginning Inventory Amount (+) Form 1065-B, page 2, Form 1125-A, Line 1
    04A02 15 Net Purchases (±) Form 1065-B, page 2, Form 1125-A, Line 2
    04A06 15 Total Costs (±) Form 1065-B, page 2, Form 1125-A, Line 6
    04A07 15 Ending Inventory Amount (+) Form 1065-B, page 2, Form 1125-A, Line 7
    04H02 15 Gross Rental (+) Form 8825, Line 18a
    04FL1 15 Sale of Livestock (±) Schedule F, Line 1c
    04FL3 15 Gross Farm Income Cash (±) Schedule F, Line *9 (dotted portion)
    *(Line 11 for prior year)
  4. Invalid Condition - Any field in Section 04 will be invalid if not all numeric.

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

Section 05 Errors

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

General Information

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

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

    • Contains an address change.

    • Form 1065, page 1, Line G, Box "3" is checked to indicate 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.

  5. Section 05 for Form 1065-B contains monetary amounts.

    1. All entries are dollars only.

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

Foreign Address -
General Information

  1. Ogden Submission Processing Campus (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 650

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

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

♦Foreign Addresses (OSPC Only)♦
  1. A Foreign Address will contain:

    • Street address or P.O. Box

    • City or town name

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

    • Postal Code, if present 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. Possession/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 3.12.15-4.

Error Record Format

  1. Listed below are the fields contained 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 located 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 located in the Entity section of the return.

    1. This field will contain 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 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 all coding and transcription errors.

      If... Then...
      Field 05FAD is present,
      1. GTSEC 05.

      2. Ensure Field 05CTY contains a Foreign Country Code and Field 05ST contains a "." (period/space). See Document 7475.

      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 appropriate position in Field 05FAD. See (Exhibit 3.12.15-5, Province, State and Territory Abbreviations).

      Exception:

      Use the country code based on the province in Field 05CTY if the Foreign address is from Canada and the address contains a province name or abbreviation. See Exhibit 3.12.15-5, Province/Country Code - Canada Only.

      A Foreign Address is not present on the return,
      1. SSPND 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 listed on Form 8822/8822-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 listed on Form 8822/8822-B, Line 7,

      • An entry is listed on Form 8822-B, Lines 8 or 9,

      1. Enter address shown on Form 8822/Form 8822-B in Field 05FAD.

      2. Notate "Form 8822 or Form 8822-B detached" on tax return.

      3. Detach Form 8822/Form 8822-B and route to Entity Control using Form 4227 or follow local procedures.

      4. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or Form 8822-B"

    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 05ADD - Street Address

  1. Description - Field 05ADD is located 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 located, 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.

      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 listed on Form 8822/8822-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 listed on Form 8822/8822-B, Line 7,

      • An entry is listed on Form 8822-B, Lines 8 or 9,

      1. Enter address shown on Form 8822 /Form 8822-B in Field 02FAD.

      2. Notate "Form 8822 or Form 8822-B detached" on tax return.

      3. Detach Form 8822/Form 8822-B and route to Entity Control using Form 4227 or follow local procedures.

      4. Notate on Form 4227, "CHANGE OF ADDRESS PER Form 8822 or Form 8822-B" .

    Note:

    The lead tax examiner is required to batch all Form 8822/8822-B daily and hand carry to Entity Control for expedite processing.

Field 05CTY - City

  1. Description - Field 05CTY is located 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 or Field 05CTY contains "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 contains 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 contains a province name or abbreviation. See Exhibit 3.12.15-5, Province/Country Code - Canada Only.

      Field 05CTY (Field 06CTY) contains 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/Form 8822-B to the return.

Field 05ST - State

  1. Description - Field 05ST is located 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 contained 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 3.12.15-4,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 8822/8822-B to the return. See IRM 3.12.15.7.6.

Field 05ZIP - ZIP Code

  1. Description - Field 05ZIP is located in the Entity section of the return.

  2. Valid Condition - Valid characters are numeric 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 numeric 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 3.12.15-4 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/Form 8822-B against the return.

Section 05 - Form 1065-B

  1. Data in Section 05 is obtained from Form 1065-B. See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

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

    Field Maximum Length Title Positive/Negative Location on Form 1065-B
    0519D 15 Mortgages, notes, bonds payable in 1 year or more (±) Form 1065-B, Schedule L, Line 19, Column (d)
    05PCA 15 Partners' Capital Account Ending (±) Form 1065-B, Schedule M-2, Line 9
  3. Invalid Condition - Any field in Section 05 will be invalid if not all numerics.

Section 06 Errors

  1. This section provides instructions for correcting Section 06 error conditions.

General Information

  1. Section 06 contains the address information of the partnership filing Form 1065-B.

  2. Section 06 will be present if any of the following conditions exist:

    • Contains an address change.

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

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

  4. Section 06 can be present on other short length records.

Error Record Format

  1. Listed below are the fields contained in Section 06. Data in this section is obtained from Form 1065-B: See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

    Field Designator Maximum Length Title Location on Form 1065-B
    06CON 35 "In-Care Of" Name Entity Section Form 1065-B
    06FAD 35 Foreign Address Entity Section, Form 1065-B
    06ADD 35 Street Address Entity Section, Form 1065-B
    06CTY 22 City Entity Section, Form 1065-B
    06ST 2 State Entity Section, Form 1065-B
    06ZIP 12 ZIP Code Entity Section, Form 1065-B

Field 06CON - "In-Care Of" Name

  1. See IRM 3.12.15.7.4 (4) for procedures to correct Field 06CON error.

Field 06FAD - Foreign address

  1. See IRM 3.12.15.7.5 (4) for procedures to correct Field 06FAD error.

Field 06ADD - Address

  1. See IRM 3.12.15.7.6 (4) for procedures to correct Field 06ADD error.

Field 06CTY - City

  1. See IRM 3.12.15.7.7 (4) for procedures to correct Field 06CTY error.

Field 06ST - State

  1. See IRM 3.12.15.7.8 (4) for procedures to correct Field 06ST error.

Field 06ZIP - ZIP Code

  1. See IRM 3.12.15.7.9 (4) for procedures to correct Field 06ZIP error.

Section 10 Errors- Schedule D (Form 1065)

  1. This section provides Section 10 error conditions.

General Information

  1. Section 10 contains money amounts in dollars and cents.

  2. Valid entries are blank, or zero (0) through "9" .

  3. There is no math check on these fields.

  4. The taxpayer performs computations on Form 8949,Sales and Other Disposition of Capital Assets and transfers the result to the appropriate column, (column (d) or column (e)) on Schedule D.

Error Format

  1. Listed below are the fields in Section 10 from Form 1065, Schedule D. Section 10 is made from the Lines 1a, 1b, 2, 3, 8a, 8b, 9, and 10, Columns (d), (e), (g) and Line 14. The field designators, title and location on the return where the data is obtained from is shown in the table:

  2. AFD Field Length Field Title Positive/Negative Location
    101AD 15 Line 1a, Short Term Proceeds (Sales price) (+) Part I, Line 1a, Column (d)
    101AE 15 Line 1a, Short Term Cost or Other Basis (+) Part I, Line 1a, Column (e)
    101BD 15 Line 1b, Short Term Proceeds (Sales price) (+) Part I, Line 1b, Column (d)
    101BE 15 Line 1b, Short Term Cost or Other Basis (+) Part I, Line 1b, Column (e)
    101BG 15 Line 1b, Short Term Adjustments to Gain or Loss (±) Part I, Line 1b, Column (g)
    1002D 15 Line 2, Short Term Proceeds (Sales price) (+) Part I, Line 2, Column (d)
    1002E 15 Line 2, Short Term Cost or Other Basis (+) Part I, Line 2, Column (e)
    1002G 15 Line 2, Short Term Adjustments to Gain or Loss (±) Part I, Line 2, Column (g)
    1003D 15 Line 3, Short Term Proceeds (Sales price) (+) Part I, Line 3, Column (d)
    1003E 15 Line 2, Short Term Cost or Other Basis (+) Part I, Line 3, Column (e)
    1003G 15 Line 3, Short Term Adjustments to Gain or Loss (±) Part I, Line 3, Column (g)
    108AD 15 Line 8a, Long Term Proceeds (Sales price) (+) Part II, Line 8a, Column (d)
    108AE 15 Line 8a, Long Term Cost or Other Basis (+) Part II, Line 8a, Column (e)
    108BD 15 Line 8b, Long Term Proceeds (Sales price) (+) Part II, Line 8b, Column (d)
    108BE 15 Line 8b, Long Term Cost or Other Basis (+) Part II, Line 8b, Column (e)
    108BG 15 Line 8b, Long Term Adjustments to Gain or Loss (±) Part II, Line 8b, Column (g)
    1009D 15 Line 9 Long Term Proceeds (Sales price) (+) Part II, Line 9, Column (d)
    1009E 15 Line 9, Long Term Cost or Other Basis (+) Part II, Line 9, Column (e)
    1009G 15 Line 9, Long Term Adjustments to Gain or Loss (±) Part II, Line 9, Column (g)
    1010D 15 Line 10 Long Term Proceeds (Sales price) (+) Part II, Line 10, Column (d)
    1010E 15 Line 10, Long Term Cost or Other Basis (+) Part II, Line 10, Column (e)
    1010G 15 Line 10, Long Term Adjustments to Gain or Loss (±) Part II, Line 10, Column (g)
    10014 15 Capital Gain Distributions (+) Part II, Line 14
  3. Correction Procedures - Correct all misplaced or transcription errors.

Section 20 Errors - TETR

  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 Field Length Title Positive/Negative Location on Form 8913
    20TTR 15 Telephone Excise Tax Refund (+) Line 15(d)
    20TTI 15 Telephone Excise Tax Interest (+) Line 15(e)
  3. Invalid Condition - Any field in Section 20 will be invalid if not all numeric.

  4. Correction Procedure - The Statute of Limitations to file Form 8913, or a claim for the Credit for Federal Telephone Excise Tax Paid, expired July 27, 2012. If there is any entry in Field(s) 20TTR or 20TTI, blank the entry.

Section 21 Errors -
Small Employer Health Insurance Premiums (Form 8941)

  1. This section identifies Section 21 field errors.

General Information

  1. Section 21 contains a numeric entry or money amounts.

  2. Dollar and cent fields should be dollars only, and positive only.

    Note:

    Field 21LN1, 2102, 2113, and 2114 should be 4 numeric digits.

  3. Valid characters are numeric 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 prior to 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 numeric only 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 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 numeric 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 contains numeric 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 Field Length Tittle 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 numeric.

  4. Correction Procedures - Correct all misplaced entries, coding errors, and transcription errors.

Priority IV Errors - Error Codes 001 through 999

  1. This section provides 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:

    • Computer Condition Code "G" is Not Present -The processing date is equal to or more than 2 years and 10 months after the Return Due Date or the Received Date (whichever is later) and Computer Condition Code "W" is not present.

    • 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.

    • "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 following returns to Statute Control for clearance. Instead, enter "W" in Field 01CCC and on the return and continue processing:

      • Any return secured by Compliance (i.e., IRC §6020(b)

      • Any return secured by Examination/Collections.

      • Any return with a TC 59X (Transaction Code)

      • Any return with "ICS" (Integrated Collection System) notated on the face of the return.

      • Any return that is a Substitute for Return prepared by Examination ("SFR" in the margin) with Document 13133, Expedite Processing Cycle, attached.

      • Any return with a stamp indicating a previous clearance by Statute Control within the last ninety days.

    3. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    If... Then...
    Field 01RCD is blank,
    1. Enter the Received Date in Field 01RCD. Use the earliest date if multiple Received Dates are present.

    2. See IRM 3.12.15.3.6 to determine the Received Date.

    CCC "W" was entered incorrectly, Delete CCC "W" from Field 01CCC.
    The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days, Enter CCC "W" in Field 01CCC and on the return.

    Note:

    Do not send the return to Statute Control.

    The return received date is 2 years and 9 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 ninety days,
    1. Suspend (SSPND) 310.

    2. Prepare Form 4227 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 the record to be voided to them, SSPND 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
    Field Designator on Form 1065-B 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
    06CON "In-Care-Of" Name 35
    06FAD Foreign Address 35
    06ADD Street Address 35
    06CTY City 22
    06ST State 2
    06ZIP 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 will ensure that 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.

    2. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the On-line Entity (OLE) indicators as appropriate upon transmitting the ERS screen.

    3. Correct all misplaced entries, coding and transcription errors.

    4. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    5. Refer to all of the following research instructions in this error code before taking any action.

    6. If Field 01NC and the Name on the return or attachments are the same but differ from the underprint in Field 01NC, research IDRS using Command Code INOLES to determine the correct Name.

      If... Then...
      The Name on the return or attachment matches the Name Control on INOLES, Bring up underprint.
      The Name Control on INOLES is different from the Name on the return or attachment, Research IDRS using Command Code NAMEB/NAMEE for a new EIN.
    7. If a new EIN is located, 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 that the entity information matches the return.

      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return. Ensure that the entity information matches the return.

        • Do not send Letter 3875C when:

          1. Three or less digits of the EIN are transposed, different or missing, or

          2. INOLES indicates the account has been "merged to" or "merged from" , or

          3. The TIN on the return is the taxpayer's SSN (check CC INOLEG) .

      Multiple EINs are located,
      1. SSPND 320 to Entity Control.

      2. Prepare Form 4227 with the notation "MULTIPLE EINs" .

      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on Command Codes INOLES.
      The "MT" EIN matches the entity on the return or attachment, Enter the "MT" EIN in Field 01EIN.

      Note:

      Do not send Letter 3875C on MT EIN cases.

      The "MT" EIN does not match the entity on the return or attachment, SSPND 320 to Entity Control.
    8. If the Name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change on Form 1065 (Line G, Box (3)) or Form 1065-B (Line G, Box (2)), research IDRS using Command Code ENMOD for a new name.

      If... Then...
      The Name Control on ENMOD matches the Name on the return or attachment, Enter "C" in the Clear Code field.
      The Name Control on ENMOD or INOLES does not match the Name on the return or attachment,
      1. SSPND 320 to route the return to Entity Control.

      2. Attach Form 4227 with the notation "NO RECORD" .

    9. 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 320 to route to Entity Control.

      2. Attach Form 4227 with the notation "REQUEST NAME CHANGE (TC 013)" .

    10. The Name Control for EINs with the prefix 20, 26, 27, 45, 46 or 47 will be the first four characters of the Primary Name line. These EINs were assigned by the Modernized Internet EIN (MOD I-EN) 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 incorrect 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 located, Enter "C" in the Clear Code field.

♦Error Code 003 – Check Digit Invalid♦

  1. Fields Displayed

    Field Designator Field Name Length
    01NC Name Control 4
    01EIN Employer Identification Number 9
  2. Invalid Condition – Error Code 003 will generate when any of the following conditions are present:

    • A check digit is present but is not valid for the EIN.

    • The letters "E" , "G" or "M" (in check digit only) are present in Field 01NC.

  3. Correction Procedures:

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

    2. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

      If... Then...
      The check digit in Field 01NC does not match the return or is not legible, Enter the Name Control from the return in Field 01NC.
      The EIN on the return is not legible, Research IDRS using CC NAMEB/NAMEE for correct EIN.
    3. Compare the EIN from NAMEB/NAMEE to the EIN on the return.

    If... Then...
    The EIN on Form 1065 matches the EIN on NAMEB/NAMEE, Enter Name Control from NAMEB/NAMEE in Field 01NC.
    Research indicates a different EIN, Verify the EIN and name on INOLES.
    Name Control on INOLES matches the name on the return or attachment,
    1. Overlay Field 01EIN with the EIN from INOLES.

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

      • Do not send Letter 3875C when:

        1. Three or less digits of the EIN are transposed, different, or missing, or

        2. INOLES indicates the account has been “merged to” or “merged from”, or

        3. The TIN on the return is the taxpayer's SSN (check CC INOLEG).

    Unable to locate an EIN or more than one EIN is located,
    1. SSPND 320 to Entity Control.

    2. Prepare Form 4227 with the notation "NO RECORD OF EIN" .

  4. Suspense Correction:

    1. Research IDRS using CC BMFOL to determine if payments posted incorrectly:

    If... Then...
    The payment posted to the wrong EIN,
    1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.

    2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .

    3. Write "FORM 3465 PREPARED" on the return, to the left of the Entity section.

    4. Enter CCC "X" in Field 01CCC.

    The payment posted to the correct EIN, Enter the correct EIN in Field 01EIN and on the return
    Payment cannot be located, Enter "C" in the Clear Code field.

♦Error Code 004 - 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" indicates that there is no account on the Master File, while a blank underprint indicates that the NAP has not been accessed or was not operational.

  3. Correction Procedures:

    1. Before taking any additional research steps to resolve Error Code 004, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Name Control/EIN have posted to the NAP. If Error Code 004 reappears, continue with the remainder of the correction procedures.

    2. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the ERS screen.

    3. Correct all misplaced entries, coding and transcription errors.

    4. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    5. Refer to all of the following research instructions in this error code before taking any action.

    6. If Field 01NC and the Name on the return or attachments are the same but differ from the underprint in Field 01NC, research IDRS using Command Code (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 Command Code NAMEB/NAMEE for a new EIN.
    7. If a new EIN is located, verify the Name Control using IDRS Command Code (CC) INOLES:

      If... Then...
      The Name Control on INOLES agrees with the Name on the return or attachment,
      1. Ensure that the entity information matches the return.

      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

        Note:

        Do not send Letter 3875C when:
        • Three or less digits of the EIN are transposed, different, or missing, or
        • INOLES indicates the account has been “merged to” or “merged from”, or
        • The TIN on the return is the taxpayer’s SSN (check CC INOLEG).

      Multiple EINs are located,
      1. SSPND 320 to Entity Control.

      2. Prepare Form 4227 with the notation "MULTIPLE EINs" .

      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on Command Code INOLES.
      The "MT" EIN matches the entity on the return or attachment, Enter the "MT" EIN in Field 01EIN.
      The MT EIN does not match the entity on the return or attachment, SSPND 320 to Entity Control.
    8. If the Name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change on Form 1065 (Line G, Box (3)) or Form 1065-B (Line G, Box (2)), 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 320 to route the return to Entity Control.

      2. Attach Form 4227 with the notation "NO RECORD" .

    9. If the Name change has not been made, research ENMOD for a pending TC 013.

      If... Then...
      A pending TC 013 is present, Enter "C" in the Clear Code field.
      A pending TC 013 is not present,
      1. SSPND 320 to route to Entity Control.

      2. Attach Form 4227 with the notation "REQUEST NAME CHANGE" .

  4. Suspense 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 incorrect 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 located, Enter "C" in the Clear Code field.

♦Error Code 005 - Invalid Tax Year or Received Date♦

  1. Fields Displayed

    Field Designator Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    01RCD Received Date 8
  2. Invalid Condition - Error Code 005 will generate when the year-month of the processing date is later than the Tax Period plus six months and the Received Date is not present.

  3. Correction Procedures:

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

    2. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.

    3. A Received Date must be in Field 01RCD if the return is not timely filed.

    4. Use the earliest Received Date in Field 01RCD if there are multiple received dates on the return.

      Exception:

      Do not use a Received Date in Field 01RCD that is prior to the beginning of the tax period.

    5. Determine the Received Date using the following instruction in IRM 3.12.15.3.6(4)(1) when one is needed but is not stamped on the return or a valid handwritten Received Date is not present.

    • Earliest legible Postmark Date (e.g., U.S. Postal Service, Foreign or Private Delivery Service).

      Note:

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

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

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

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

    • Julian Date of the Document Locator Number (DLN) .

    • Current Date minus 10 days.

  4. If a return has been faxed to another area of the service and then sent to Submission Processing for processing, do not enter the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Enter a Received Date according to normal procedures.

    Caution:

    The EEFax Date cannot legally be used as an IRS Received Date.

Error Code 006 - 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., 20150115 instead of 20160115), and other information (Julian date, postmark date, and/or signature date) indicates 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 is less than four months after the Received Date,
    1. SSPND 480.

    2. Prepare Form 4227 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 211.

    The return is not an early filed "Final" return, The month of the Received Date is prior to the Tax Period ending, Change the month of the Received Date to equal the month of the Tax Period.
  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 480 until the end of the tax period provided by the taxpayer.
    The taxpayer fails to reply or the reply is not adequate,
    1. Enter "3" in Field 01CCC.

    2. SSPND 480 until the end of the tax period indicated 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 prior to 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.

    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
    01NAI NAICS Code 6
    01DOB Date Business Started 6
    01IRC Initial Return Code (Form 1065 only) 1
    01TT Technical Termination Code (Form 1065 only) 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
    01MPC Multi Partner Code (Form 1065-B only) 1
    01FDC Foreign/Domestic Corporation Code (Form 1065 only) 1
    01INE Individual/Estate Ownership Code (Form 1065 only) 1
    01PCS Ownership of Foreign or Domestic Corporation Code (Form 1065 only) 1
    01DPT Ownership of Foreign Partnership or Trust Code (Form 1065 only) 1
    01PTT Partnership Level Tax Treatment Election Code (Form 1065 only) 1
    01DPA Distribution of Property Code (Form 1065 only) 1
    01DRE Number of Form 8858 Attached (Form 1065 only) 6
    01FPI Number of Form 8805 Attached (Form 1065 only) 6
    01FPC Foreign Partner Code 1
    01IR1 Number of Form 8805 Attached 6
    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
    Section 02
    Section 03
    Section 04
    Section 05
    Section 06 (Form 1065-B only)
    Section 10 (Form 1065 only)
    Section 21 (Form 1065 only)
    Section 22 (Form 1065 only)
  2. Invalid Condition - Error Code 010 will generate when Computer Condition Code "G" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC and 01CRD contain 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 indicates amended, revised, supplemental, corrected or superseding, Research the applicable Command Code(s), such as BRTVU, BMFOL, SUMRY, and/or TXMOD to determine if information is exactly 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 exactly the same, Suspend 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 (02 through 06 for Form 1065-B) as needed.

    2. Ensure that 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 only.

    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
    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
    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 6
    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
    Section 02
    Section 03
    Section 04
    Section 05
    Section 21
    Section 22
  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 contains entries.

    • Computer Condition Code "6" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01NOP, 01CCC, 01ADC and 01CRD contain 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 3.12.15.3.7, 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
    Field Designator on Form 1065-B Field Name Length
    06CON "In-Care-Of" Name 35
    06FAD Foreign Address 35
    06ADD Street Address 35
    06CTY City 22
    06ST State 2
    06ZIP ZIP Code 12
  2. Invalid Condition - Error Code 014 will generate when any of the following conditions are present:

    • If the street address is present, Field 05CTY (Field 06CTY on Form 1065-B) and Field 05ST (Field 06ST on Form 1065-B) must be present, unless a Major City Code is used.

    • If a Major City Code is used, Field 05ADD (Field 06ADD on Form 1065-B) must be present.

    • A City must be present. If the city is not in the Major City format, Field 05ST (Field 06ST on Form 1065-B) must be present. Field 05ADD (Field 06ADD on Form 1065-B) can be blank.

    • A Major City Code is used and Field 05ST (Field 06ST on Form 1065-B) 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, or 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 (Field 06CTY on Form 1065-B).

    2. Enter the State Code in Field 05ST (Field 06ST on Form 1065-B).

    The Major City Code is correct, The state is present, Delete Field 05ST (Field 06ST on Form 1065-B).
    The ZIP Code or Address cannot be corrected from the information on the return, attachments or from research, DLSEC Section 05 (DLSEC 06 on Form 1065-B).

♦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
    Field Designator on Form 1065-B Field Name Length
    06CON "In-Care-Of" Name 35
    06FAD Foreign Address 35
    06ADD Street Address 35
    06CTY City 22
    06ST State 2
    06ZIP ZIP Code 12
  2. Invalid Condition - Error Code 015 will generate when any of the following conditions are present:

    • Field 05ST (06ST) has an entry other than "." (period/space) when Field 05FAD (06FAD) is present.

    • Field 05ZIP (06ZIP) has an entry when Field 05FAD (06FAD) 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 (Field 06FAD on Form 1065-B),
    1. Field 05ST (Field 06ST on Form 1065-B) must contain "." (period/space)

    2. Delete any entry in Field 05ZIP (Field 06ZIP on Form 1065-B).

    A foreign address is not present in Field 05FAD (Field 06FAD on Form 1065-B), Check return for foreign address.
    A foreign address is present on the return,
    1. Enter the foreign address in Field 05FAD (Field 06FAD on Form 1065-B).

      Note:

      If additional space is required, continue entering the address in Field 05ADD (Field 06ADD on Form 1065-B)

    2. Field 05CTY (Field 06CTY on Form 1065-B) must contain the appropriate Foreign Country Code. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries).

    3. Field 05ST (Field 06ST on Form 1065-B) must contain "." (period/space).

    4. Delete any entry in Field 05ZIP (Field 06ZIP on Form 1065-B).

    A foreign address is not present on the return,
    1. Verify the address on the return is not a foreign address.

    2. SSPND 610.

    3. Renumber return with domestic DLN.

♦Error Code 016 - 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
    Field Designator on Form 1065-B Field Name Length
    06CON "In-Care-Of" Name 35
    06FAD Foreign Address 35
    06ADD Street Address 35
    06CTY City 22
    06ST State 2
    06ZIP 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, 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 (Field 06ZIP on Form 1065-B).
      Only the first three digits of the ZIP Code can be determined, Enter "01" in the (4th) and (5th) position.
      A ZIP Code cannot 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 (Field 06CTY on Form 1065-B).
      The address is in a major city, A Major City Code cannot be determined,
      1. Enter the name of the city in Field 05CTY (Field 06CTY on Form 1065-B).

      2. Enter the State Code in Field 05ST (Field 06ST on Form 1065-B).

      The address is not in a major city,
      1. Enter the appropriate state abbreviation in Field 05ST (Field 06ST on Form 1065-B).

      2. Enter ZIP Code in Field 05ZIP (Field 06ZIP on Form 1065-B).

    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 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:

      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 additional 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, 2016, then the tax period is 201604.

      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, 2016, enter 201604 in Field 01TXP.

    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

    5. See Exhibit 3.12.15-7, Error Code 026 - Error Correction Procedures and for research and correction procedures.

    6. See table below for a list of transaction codes and definitions applicable to possible changes to the fiscal year month.

    Transaction Code Definition
    016 Indicates 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
Error Code 026 - Suspense Correction
  1. See Exhibit 3.12.15-8, 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 prior to 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 201609, use 201509; if the Tax Period is 201611, use 201511.

    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 prior to the Tax Period of the return Enter a "Y" in Field 01CCC.
Procedures for Converting Form 1065-B to Form 1065
  1. If a Form 1065-B is filed as an "Initial" return it must be converted to a Form 1065. See Figure 3.12.15-10a through 3.12.15-10d and the procedures below:

    1. Enter Code "2" in Field 01IRC and edit to the left of Line G, page 1 of Form 1065.

    2. Income - Edit the income section of Form 1065-B to the following lines and fields on Form 1065.

      Edit From
      Form 1065-B...
      Edit To Form 1065 and Enter In...
      Line 1a - (Gross receipts or sales) Field 0201A
      Line 1b - (Less returns and allowances) Field 0201B
      Line 2 - (Cost of Good sold) Field 0202
      Computer Condition Code - (CCC) Field 01CCC
      Line 4 - (Net income (loss) from rental real estate) Field 02K02
      Line 5 - (Net income (loss) from other rental activities Field 02K3C
      Line 6 - (Ordinary income (loss) from other partnerships, estates, and trusts) Field 0204
      Line 7 - (Net farm profit (loss)) Field 0205
      Line 9 - (Net gain (loss) from Form 4797) Field 0206
      Line 10 - (Other income (loss)) Field 0207
      Line 11 - (Total income (loss)) Field 0208
  2. Deductions - Edit the Deductions section of Form 1065-B to the following lines and fields on Form 1065.

    Edit From
    Form 1065-B...
    Edit To Form 1065 and Enter In...
    Line 12 - (Salaries and wages) Field 0309
    Line 13 - (Guaranteed payments to partners) Field 0310
    Line 14 - (Repairs and maintenance) Field 0311
    Line 15 - (Bad debts) Field 0312
    Line 16 - (Rent) Field 0313
    Line 17 - (Taxes and licences) Field 0314
    Line 18 - (Interest) Field 0315
    Line 19c - (Depreciation) Field 0316C
    Line 20 - (Depletion) Field 0317
    Line 21 - (Retirement plans, etc.) Field 0318
    Line 22 - (Employee benefit programs) Field 0319
    Line 23 - (Other deductions) Field 0320
    Line 24 - (Total deductions) Field 0321
  3. Part II - Taxable Income or Loss From Other Activities - Edit the income amounts from Part II of Form 1065-B to the following lines and fields on Form 1065.

    Edit From Part II
    Form 1065-B...
    Edit To Part II
    Form 1065 and Enter in...
    Line 1, Interest Field 02K05
    Line 2a, Ordinary Dividends Field 02K6A
    Line 4, Excess of net Short-Term Capital gain over net Long-Term Capital loss Field 02K07
    Line 5, Other Income (loss) Field 02K11
  4. Schedule A - Cost of Goods Sold - Edit the income amounts from Schedule A of Form 1065-B to the following lines and fields on Form 1065.

    Edit From Form 1125-A
    Form 1065-B...
    Edit To Form 1125-AForm 1065 and Enter in...
    Line 1, Inventory at beginning of year Field 03A01
    Line 2, Purchases less cost of items withdrawn for personal use Field 03A02
    Line 6, Total. Add Lines 1 through 5 Field 03A06
    Line 7, Inventory at end of year Field 03A07
  5. Schedule B - Other Information - Edit Schedule B entries from Form 1065-B to the following lines and fields on Form 1065.

    Edit From Schedule B
    Form 1065-B...
    Edit To Schedule B
    Form 1065...
    Question 2, Are any partners in this partnership also partnerships? Filed 01DPC
    Question 4, Does this partnership have any foreign partners? Field 01FPC
    Question 9, Enter the number of Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. Field 01IR1
  6. Partners' Share of Income, Credits, Deduction, etc. - Edit Schedule K amounts from Form 1065-B to the following lines and fields on Form 1065.

    Edit From Schedule K
    Form 1065-B...
    Edit to Schedule B
    Form 1065 and Enter in...
    Line 4b - (Net capital gain (loss) from other activities) Field 02K9A
    Line 11 - (Low-Income Housing Credit) Field 02KA1
    Line 12 - (Rehabilitation credit from rental real estate activities) Field 02KB1
    Line 14d(1) - (Foreign gross income sourced at partnership level - passive category) Field 02FTP
    Line 14d(3) - (Other foreign gross income) Field 02FTG
    Line 14e(1) - (Deductions allocated at partner level - interest expense) Field 02DIN
    Line 14e(2) - (Other deductions at partner level) Field 02DED
    Line 14f(1) - (Deductions allocated at partnership level - passive category) Field 02DAP
    Line 14f(3) - (Other deductions at partnership level) Field 02DAG
    Line 14g - (Total foreign taxes) Field 02FTC
    Line 14h - (Reduction in taxes available for credit) Field 02FTR
  7. Balance Sheets per Books (Schedule L and Schedule M-2) - Edit Schedule L and Schedule M-3 amounts from Form 1065-B to the lines and fields on Form 1065.

    Edit From Schedule L and Schedule M-2
    Form 1065-B...
    Edit to Schedule L and Schedule M-2
    Form 1065 and Enter in...
    Schedule L, Line 19b - (Mortgages, notes, bonds payable in 1 year or more) Field 0419D
    Schedule M-2, Line 9 - (Balance at the end of year) Field 04PCA

    Figure 3.12.15-10a

    This is an Image: 33655130.gif

    Please click here for the text description of the image.

    Figure 3.12.15-10b

    This is an Image: 33655131.gif

    Please click here for the text description of the image.

    Figure 3.12.15-10c

    This is an Image: 33655132.gif

    Please click here for the text description of the image.

    Figure 3.12.15-10d

    This is an Image: 33655133.gif

    Please click here for the text description of the image.

    Figure 3.12.15-10e

    This is an Image: 33655134.gif

    Please click here for the text description of the image.

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 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.

      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 indicates 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, always 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 is 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, determine the date in the following order:

      Received Date is Missing or Illegible
      • 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 indicates signature date is invalid). This applies to Revenue Officers' or other IRS Officials' 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 and on Form 1065 or Form 1065-B.

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:

      Determine Received Date
      • 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 indicated that 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 Number of Schedules K-1 and Total Assets are the same, Enter a "C" in the Clear Code field.

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 Number of Schedules K-1 and Date Business Started are the same, Enter a "C" in the Clear Code field.

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 Number of Schedules K-1 and NAICS Code are the same, Enter a "C" in the Clear Code field.
    The Number of Schedules K-1 is greater than 999, Enter a "C" in the Clear Code field.

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 indicates that the number of Schedules K-1 is "1" or the attached Schedule K-1 shows 100% interest in the partnership, follow the procedures below:

    If... Then...
    The partnership indicates 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 3.12.15.1.14.1), 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 indicates
    • 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 indicates 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 cannot have one 100% 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
    Field Designator on Form 1065-B Field Name
    0201A Gross Receipts or Sales
    0201B Returns and Allowances
    >>>>> Total Gross Receipts - Computer
    0202 Cost of Goods Sold
    0204 Net Income (Loss) from Rental Real Estate
    0205 Net Income (Loss) from Other Rental Activities
    0206 Ordinary Income (Loss) from Other Partnerships and Estates and Trusts
    0207 Net Farm Profit (Loss) from Schedule F
    0208 Excess Net Short Term Capital Gain
    0209 Net Gain (Loss) from Form 4797
    0210 Other Income (Loss)
    0211 Total Income (Loss)
    >>>> 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 (Field 0211 on Form 1065-B) to agree with the underprint amount.
    Line 8 (Line 11 on Form 1065-B), Total Income is the only entry present,
    1. Verify that the entries on Lines 4 through 7 (Lines 4 through 10 on Form 1065-B) have been brought forward from schedules and/or attachments.

    2. If the amount is not identified on Lines 4 through 7 (Lines 4 through 10 on Form 1065-B), enter the amount from Line 8 (Line 11 on Form 1065-B) in Field 0207 (Field 0210 on Form 1065-B) and on Line 7 (Line 10 on Form 1065-B) 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 (Lines 3 through 10, Form 1065-B) in Field 0208 (Field 0211, Form 1065-B) on the screen and edit Line 8 (Line 11, Form 1065-B) 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
    Field Designator on Form 1065-B Field Name
    0312 Net Salary and Wage
    0313 Payments to Partners
    0314 Repairs and Maintenance
    0315 Bad Debts
    0316 Rent
    0317 Taxes and Licenses
    0318 Interest Expense
    0319C Depreciation
    0320 Depletion
    0321 Retirement Plans
    0322 Employee Benefit Program
    0323 Other Deductions
    0324 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) (Line 23 on Form 1065-B) or incorrectly calculated the Total Deduction field, Change Field 0321 (Field 0325, Form 1065-B) to agree with the underprint amount.
    Line 20 (Line 23, Form 1065-B) is not perfected when the only entry present was on Line 21 (Line 24, Form 1065-B), Enter amount from Line 21 (Line 24, Form 1065-B) in Field 0320 (Field 0324, Form 1065-B).
    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 (Line(s) 12, 13, 16, 17 or 18 on Form 1065-B),

    Note:

    Follow taxpayer intent by looking at Line 22 before changing Line 20.

    1. "X" the negative amount and subtract on Line 20 (Line 23, Form 1065-B) of the return.

    2. Delete the negative amount from the corresponding field on the screen.

    3. Enter (the adjusted) amount from Line 20 (Line 23, Form 1065-B) in Field 0320 (Field 0324, Form 1065-B).

    Line 21 (Line 24, Form 1065-B), Total Deductions is the only entry present,
    1. Verify that the entries on Lines 9 through 20 (Lines 12 through 23, Form 1065-B) have been brought forward correctly from schedules and/or attachments.

    2. If the amount is not identified on Lines 9 through 20 (Lines 12 through 23 on Form 1065-B), enter the amount from Line 21 (Line 24 on Form 1065-B) in Field 0320 (Field 0323 on Form 1065-B) and on Line 20 (Line 23 on Form 1065-B) of the return.

    There are amounts in Line 9 through 20 (Lines 12 through 23, Form 1065-B) but an amount is not on Line 21 (Line 24, Form 1065-B), Enter the verified total of Lines 9 through 20 (Lines 12 through 23, Form 1065-B) in Field 0321 (Field 0324, Form 1065-B) 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% 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% tax amount is located on return or attachment,
    1. Edit amount to area above Line 22, Form 1065.

    2. Enter amount in Field 03TAX.

    A 3.5% tax amount is not located 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
    Field Designator on Form 1065-B Field Name
    0211 Total Income
    >>>> Total Income - Computer
    S03 (Not Present)
    0324 Total Deduction
    >>>> Total Deduction - Computer
    0325 Taxable Income
    >>>> Taxable 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" .

      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.

    2. Compare the entry in Field 0325 (Form 1065-B) to Line 25 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 Taxable Income field incorrectly, Change Field 0325 to agree with the underprint amount.
    Fields 0211, 0324 or 0325 are transcribed incorrectly, Enter correct amount from the return.
    Line(s) 11, 24 or 25 are edited incorrectly, Correct entry and enter the correct amount in Fields 0211, 0324 or 0325.
    There is an amount present for Taxable Income on Line 25 but the amount is not identified on Lines 1 through 24,
    1. Edit the amount from Line 24 to Lines 10 and 11.

    2. Enter the amount in Fields 0210 and 0211. Enter as negative amounts if Line 25 amount is negative.

    There are amounts on Lines 1 through 24 but an amount is not on Line 25, Enter the underprint amount in Field 0325.
    There are no transcription errors and the partnership has made an error in its calculations,
    1. Enter the underprint amount in Field 0325.

    2. Edit an "X" next to the partnership figures on Line 25 of the return.

    3. Enter the correct figure to the left of the "X" .

    The error in Taxable 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-B to Schedule K or vice versa.

Error Code 739 - Tax Due/Overpayment and Computer Amounts Differ

  1. Fields Displayed

    Field Designator on Form 1065-B Field Name
    CL Clear Code
    0326 Tax Due
    0327 Other Payments
    03TET Telephone Excise Tax Refund
    03TC> Telephone Excise Tax Combined - Computer
    03TRV Telephone Excise Tax Verified
    0328 Tax Due/Overpayment
    0328> Tax Due/Overpayment - Computer
  2. Invalid Condition - Error Code 739 will generate when the transcribed amount for Tax Due/Overpayment differs from the computer amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. Correction Procedures:

    If... Then...
    The partnership has failed to complete a field specific to this error code or calculated the Tax Due or Overpayment amount incorrectly, Change Field 0328 to agree with underprint amount.
    Fields 0326, 0327 or 0328 are transcribed incorrectly, Enter the correct amount shown on the return.
    Line 26, 27, 28 or 29 are edited incorrectly, Correct entry and enter the correct amount in Field 0326, 0327 or 0328.
    There are no transcription errors and the partnership has made an error in its calculations,
    1. Enter the underprint amount in Field 0328.

    2. Edit an "X" next to the partnership figures on Line 28 or 29 of the return.

    3. Enter the correct figure to the left of the "X" .

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♦

  1. General Information

    1. For tax returns filed with tax period ending 200612 through 200711, a refund for the federal telephone excise tax paid on long-distance service may be claimed.

    2. The credit claimed is for the tax paid on service that was billed after February 28, 2003 and before August 1, 2006.

    3. Partnerships claiming this credit must complete and submit Form 8913 Credit for Federal Telephone Excise Tax Paid, with their tax return.

  2. Fields Displayed

    Field Designator on Form 1065 Field Name
    CL Clear Code
    01TXP Tax Period
    20TTR Telephone Excise Tax Refund
    20TTI Telephone Excise Tax Credit Interest
    03TC> Total Telephone Excise Tax Refund - Computer
    03TET Telephone Excise Tax Refund
    03TRV TETR Credit Verified
    Field Designator on Form 1065-B Field Name
    CL Clear Code
    01TXP Tax Period
    20TTR Telephone Excise Tax Refund
    20TTI Telephone Excise Tax Credit Interest
    03TC> Total Telephone Excise Tax Refund - Computer
    03TET Telephone Excise Tax Refund
    03TRV TETR Credit Verified
  3. Invalid Condition - Error Code 074 will generate when any of the following conditions is present:

    • Tax period is before 200612 or after 200711.

    • There are entries in Fields 20TTR and 20TTI and there is no entry in Field 03TET.

    • Field 20TTI is greater than Field 03TETand the total claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    • The transcribed amount for telephone excise tax refund amount (on return) differs from the computer amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  4. Correction Procedures: C & E will no longer edit the TETR amount next to Line 03TET for Form 1065: This will allow all TETR claims filed on original returns to fall out to ERS. Follow the directions below to resolve EC 074 when it generates on any Form 1065.

    1. Change all TETR fields to zero on the screen display and remove AC 420 if applicable.

    2. Detach Form 8913 and make a copy of page 1 of the Form 1065. Staple the copy of the return behind Form 8913 and route to Accounts Management.

    3. Send TPNC 90 to the taxpayer with the following literal: Due to processing constraints your Credit for Federal Telephone Excise Tax Paid could not be processed with your tax return. Your claim for this credit has been forwarded to another area to be processed.

♦Action Codes♦

ExhibitAction CodesAction Code Chart
  • CE = Code and Edit; EC = Error Correction; S = Suspense Correction; GEN = Computer Generated

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

ExhibitForm 1065, U.S. Return of Partnership IncomeThis is an Image: redimage.gif

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Form 1065-B, U.S. Return of Income for Electing Large Partnerships

ExhibitForm 1065-B, U.S. Return of Income for Electing Large PartnershipsThis is an Image: redimage.gif

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♦U.S. Possessions/Territories State Abbreviations and ZIP Codes♦

ExhibitU.S. Possessions Territories State Abbreviations and 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
Aquada 00602
Aquadilla 00603
Agnes Buenas 00703
Aguirre 00704
Aibonito 00705
Anasco 00610
Angeles 00611
Arecibo 00612
Arroyo 00714
Bajadero 00616
Barceloneta 00617
Barraquitas 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
Cero Gordon 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
Harmingueros 00660
Humacao 00791
Isabela 00662
Juyaya 00664
Juana Diaz 00795
Juncos 00777
La Cumbre 00926
Lajas 00667
Laplata 00786
Lares 00669
Las Marias 00670
Las Piedras 00771
Levittown 00949
Loiza 00772
Loiza Street Station 00936
Loquillo 00773
Manati 00674
Maricao 00606
Maunabo 00707
Mayaquez 00680
Mercedita 00715
Minillas Center 00936
Moca 00676
Morovis 00687
Naguabo 00718
Narajito 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
Sanrurce 00936
Toa Alta 00953
Toa Boa 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, State and Territory Abbreviations♦

ExhibitProvince, State and Territory Abbreviations

Australia State

Australia State Abbreviation
Australian Capital Territory ACT
New South Wells 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
Esperito Santo ES
Goias GO
Maranhao MA
Mato Grasso MT
Mato Grosso do Sul MS
Minas Gerais MG
Para PA
Paraiba PB
Parana PR
Pernambuco PE
Piaui PI
Rio de Janeiro RJ
Rio Grande do Norte RN
Rio Grande do Sul RS
Rondonia RO
Roraima RR
Santa Catarina SC
Sao Paulo SP
Sergipe SE
Tocantins TO

Canada Province/Territory

Canada Province/Territory Abbreviation
Alberta AB
British Columbia BC
Manitoba MB
New Brunswick NB
Newfoundland and Labrador NL
Northwest Territories NT
Nova Scotia NS
Nunavut NU
Ontario ON
Prince Edward Island PE
Quebec QC
Saskatchewan SK
Yukon YT

Cuba Province

Cuba Province Abbreviation
Camaguey CG
Ciego de Avila CA
Cienfuegos CF
Ciudad de La Habana CH
Gramma (Bayamo) GR
Guantanamo GT
Holguin HO
La Habana HA
Matanzas MT
Municipio Especial Isla de La Juventud IJ
Pinar del Rio PR
Sancti Spiritus SS
Santiago de Cuba SC
(Victoria de) Las Tunas LT
Villa Clara VC

Italy Province

Italy Province Abbreviation
Agrigento AG
Alessandria AL
Ancona AN
Aosta/Aoste AO
Arezzo AR
Ascoli Piceno AP
Asti AT
Bari BA
Belluna BL
Beneveto BN
Bergamo BG
Biella BI
Bologna BO
Bolozano Bolzen BZ
Brescia BS
Brindisi BR
Cagliari CA
Caltanisetta CL
Campobasso CB
Caserta CE
Catania CT
Catanzaro CZ
Chieti CH
Como CO
Cosenza CS
Cremona CZ
Crotone KR
Cuneo CV
Enna EN
Ferrara FE
Firenze FI
Foggia FG
Forli FO
Frosinone FR
Genova GE
Gorizia GO
Grosseto GR
Imperia IM
Isernia IS
L'Aquila AQ
La Spezia SP
Latina LT
Lecce LE
Livorno LI
Lodi LO
Lucca LU
Macerata MC
Mantova MN
Massa-Carrara MS
Matera MT
Messina ME
Milano MI
Modena MO
Napoli NA
Novara NO
Nuoro NU
Oristano OR
Padova PD
Palermo PA
Parma PR
Pavia PV
Perugia PG
Pesaro-Urbino PS
Pescara PE
Piacenza PC
Pisa PI
Pistoia PT
Pordenone PN
Potenza PZ
Prato PO
Ragusa RG
Ravenna RA
Reggio de Calabria RC
Reggio nell'Emilia RE
Rieti RI
Rimini RN
Roma RM
Rovigo RO
Salerno SA
Sassari SS
Savona SV
Siena SI
Siracusa SR
Sondrio SO
Taranto TA
Teramo TE
Terni TR
Torino TO
Trapani TP
Trento TN
Treviso TV
Trieste TS
Udine UD
Varese VA
Venezia VE
Verbania VB
Vercelli VC
Verona VR
Vibo Valentia VV
Vincenza VI
Viterbo VT

Mexico State

Mexico State Abbreviation
Aquascalientes AGS
Baja California Norte BCN
Baja California Sur BCS
Campeche CAM
Chiapas CHIS
Chihuahua CHIH
Coahuila COAH
Colima COL
Distrito Federal DF
Durango DGO
Guanajuato GTO
Guerrero GRO
Hidalgo HGO
Jalisco JAL
Mexico MEX
Michoacan MICH
Morelos MOR
Nayarit NAY
Nuevo Leon NL
Oaxaca OAX
Puebla PUE
Queretaro QRO
Quintana Roo QROO
San Luis Potosi SLP
Sinaloa SIN
Sonora SON
Tabasco TAB
Tamaulipas TAMPS
Tlaxcala TLAX
Veracruz VER
Yucatan YUC
Zacatecas ZAC

The Netherlands Province