3.12.21 Credit and Account Transfers

Manual Transmittal

November 16, 2017

Note:DO NOT REMOVE AND INSERT PAGES OR DISPOSE OF OBSOLETE TRANSMITTALS PRIOR TO JANUARY 1, 2018.

Purpose

(1) This transmits revised IRM 3.12.21, Error Resolution - Credit and Account Transfers.

Material Changes

(1) Important for Calendar Year 2018 - In a memorandum dated September 14, 2016, from the Deputy Commissioner of Services and Enforcement, the Deputy Commissioner of Operations Support, and the Chief of Staff, Headquarters Management, determined that IRS executives and management officials are responsible for ensuring that their program’s management and internal controls are established and followed. The Government Accountability Office (GAO) has pointed out that program managers may not recognize that various policies, procedures, and reviews are integral parts of their program’s system of internal controls. Management and Internal Controls include the following:

  • Establishing program objectives

  • Defining key terms

  • Creating goals and measures

  • Articulating accurate processes and procedures

  • Documenting authorities and responsibilities

  • Assessing and reporting program results

  • Ensuring program performance and quality reviews

  • Internal Controls heighten managers’ awareness, sensitivity, and understanding of internal controls and equip them to better guide employees and managers in effective program delivery.

  • Analysts received training to implement these internal controls and are fully required to open these items in their respective IRMs.

(2) IRM 3.12.21.1 - Includes new text, entitled, Program Scope and Objectives. to be in compliance with management’s Internal Controls requirements.

(3) IRM 3.12.21.1.1 - Includes new text, entitled, Background. to be in compliance with management’s Internal Controls requirements.

(4) IRM 3.12.21.1.2 - Includes new text, entitled, Authority. to be in compliance with management’s Internal Controls requirements.

(5) IRM 3.12.21.1.3 - Includes new text, entitled, Responsibilities. to be in compliance with management’s Internal Controls requirements.

(6) IRM 3.12.21.1.4 - Includes new text, entitled, Program Management and Review. to be in compliance with management’s Internal Controls requirements.

(7) IRM 3.12.21.1.5 - Includes new text, entitled, Terms/Definitions/Acronyms. to be in compliance with management’s Internal Controls requirements.

(8) IRM 3.12.21.1.6 - Includes new text, entitled, Related Resources. to be in compliance with management’s Internal Controls requirements.

(9) IRM 3.12.21.1.6.1 - Includes new text, entitled, IRM Deviation Procedures. to be in compliance with management’s Internal Controls requirements.

(10) IRM 3.12.21.10.2 - Includes revisions to text, entitled, Correction Procedures - Section 40

  • Field 40 K, Qualified Small Business Credit - Form 8974, is now valid for use with MFT 01, MFT 11 and MFT 14 (UWR #195376)

  • Valid Tax Periods are 201712 and later

  • Valid transaction codes are 29X/30X

(11) Includes revisions to Exhibit 3.12.21-7, BMF Valid Transaction Code Table(UWR #195376; UWR #198150; BRE Ticket #IM03003027; BRE Ticket IM #02898932). As was requested in the prior-listed Unified Work Requests (UWRs) and Business Requirement Error (BRE)/KISAM tickets), we added the following MFTs (Master File Tax Codes) to the table/list of valid MFTs for use with the following transaction codes:

  • Transaction Code 180 (Debit): added MFTs 02, 05, 06, 08, 13, 15, 33, 34, 36, 44, 61, and 67 (Doc Code 51 and Doc Code 52)

  • Transaction Code 190 (Debit): added MFTs 15, 47, and 49 (Doc Code 51)

  • Transaction Code 190 (Debit): added MFTs 17, 47, and 49 (Doc Code 52)

  • Transaction Code 191 (Credit): added MFTs 14, 44, 46, 85 and 86 (Doc Code 51)

  • Transaction Code 191 (Credit): added MFTs 44, 46, 85 and 86 (Doc Code 52)

  • Transaction Code 196/Transaction Code 197 (Debit/Credit): added MFTs 46, 74, 75, 76, 79, 85 and 86 (Doc Code 52)

  • Transaction Code 234 (Debit): added MFTs 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15, 17, 47 and 49 (Doc Code 51/Doc Code 52)

  • Transaction Code 240 (Debit): added MFT 17 (Doc Code 52)

  • Transaction Code 241 (Credit): added MFTs 43, 85 and 86 (Doc Code 51/Doc Code 52)

  • Includes various corrections and modifications throughout Exhibit 3.12.21-7 for consistence with the programming specifications provided in the Functional Specifications Package (FSP)

(12) Includes revised Exhibit 3.12.21-9, Credit Reduction Chart, with the following changes:

  • For Calendar Year (CY) 2016

  • The Credit Reduction Rate for California is .018.

  • The Credit Reduction Rate for the Virgin Islands is .018.

  • PLEASE NOTE: As of this revision, the Credit Reduction Rates for Calendar Year 2017 were not yet released to the public, but we expect that they will be announced during the month of November 2017

(13) Includes updated graphics (i.e., figures and exhibits) as required throughout the text.

(14) Includes various editorial changes made throughout the text.

Effect on Other Documents

IRM 3.12.21, dated November 14, 2016, is superseded. No IRM Procedural Updates were issued during Calendar Year 2017 up to the date of this proposed revision.

Audience

W&I Submission Processing Employees

Effective Date

(01-01-2018)

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

Program Scope and Objectives

  1. Purpose: Credit and/or Account Transfers are most often documents or transfer forms containing data entered and verified data by employees (in Accounting and/or Accounts Management) for posting to the Individual Master FIle (IMF), the Business Master File (BMF), and the Individual Retirement Account (IRAF). The principal forms/documents used for Credit and Account Transfers transactions include the following:

    • Form 3413, Transcription List (Account Transfer-In)

    • Form 3552, Prompt Assessment Billing Assembly

  2. After preparation of these forms by Accounting, the documents are transcribed through the ISRP (Integrated Submissions and Remittance Processing) system and subsequently undergo a series of validation runs known as the Generalized Mainline Framework (GMF). Documents transcribed through ISRP but failing the validation runs (Generalized Mainline Framework) are printed on error registers. These paper registers are worked in the Error Resolution function.

  3. The tax examiners in Error Resolution and Rejects compare the asterisked (*) fields on the paper registers against the original-input documents to correct the “error” fields identified by GMF. The following may not be an all-inclusive list, but provides additional responsibilities and duties for this these examiners to perform:

    • Receive original-input documents failing GMF validation, along with the corresponding paper error registers for correction/resolution

    • Compare the transcribed paper records against the corresponding fields on the original documents (Forms 3413 or Form 3552) to determine the error(s)

    • Make determinations (based on IRM instructions) regarding options necessary to clear the error(s)

    • On the paper registers, examiners line through the errors and enter the correct information above the appropriate field, along with the appropriate Action Code

    • When perfection of a record is not possible and it is necessary to correspond, perform in-house research, or refer the document to another area of the campus, the record will be suspended and the required action taken.

      Reminder:

      Documents processed for Credit and Account Transfers corrections are prepared by the various campus Accounting Function personnel (only) and are not submitted to the Service by taxpayers. As a result, corresponding with taxpayers is NOT a part of Credit and Account Transfers processing. Documents requiring additional information necessary for processing are returned to the originators for completion and/or additional information necessary for correcting the transaction records.

    • Examiners edit the correct data necessary on the error registers for a correction attempt, return the registers to Data Conversion for ISRP input prior to GMF validation

    • If the corrections fail subsequent GMF validation, addition registers will generate (for Error Resolution to re-examine and correct) if the corrections input (ISRP) failed GMF validation/

    • Corrected documents passing the GMF validity checks will post to the Master File (IMF or BMF) and to the appropriate taxpayer’s module or account

  4. Audience: W&I Submission Processing Employees: Documents processed as Credit and Account Transfers are processed in the following five (5) Submission Processing Campuses (SPCs). The five (5) Submission Processing Campuses (SPCs) are listed as follows:

    • Austin Submission Processing Campus (AUSPC) - This SPC processes documents prepared and posted as (domestic and international) Individual Master File (IMF) documents.

    • Cincinnati Submission Processing Campus (CSPC) - This SPC processes documents prepared and posted as Business Master File (BMF) documents.

    • Fresno Submission Processing Campus (FSPC) - This SPC processes documents prepared and posted as Individual Master File (IMF) documents.

    • Kansas City Submission Processing Campus (KCSPC) - This SPC processes documents prepared and posted as Individual Master File (IMF) documents.

    • Ogden Submission Processing Campus (OSPC) - This SPC processes documents prepared and posted as (domestic and international) Business Master File (BMF) documents.

  5. For Credit and Account Transfers correction purposes, the paper error registers used in Error Resolution are the principal tool used to correct errors on documents failing the Generalized Mainline Framework (GMF) computer validation process. The instructions contained in this Internal Revenue Manual (IRM) are used by Error Resolution and Rejects tax examiners for correcting errors made by campus operations.

    Reminder:

    Since these documents are prepared by the campus Accounting Function personnel, they are not submitted to the Service by taxpayers. As a result, corresponding with taxpayers is NOT a part of Credit and Account Transfers processing. Documents requiring additional information necessary for processing are returned to the originators for completion and/or additional information.

  6. This IRM was designed for use by Error Resolution and Rejects personnel as follows.

    • Error Resolution:

    • Supervisory Tax Examining Technician in the Error Resolution department oversees the ERS program and is responsible for correcting all records to ensure validation through GMF before processing payments to BMF and IMF. The Manager reports to the Campus Chief of Input Corrections.

    • Lead Tax Examining Technicians review and approve subordinate employees work prior to GMF validation. The Lead report to the Supervisory Tax Examining Technician.

    • Tax Examining Technicians manning program 270 are responsible for correcting all records to ensure GMF validation before payments are processed to IMF and BMF accounts.

    • Rejects:

    • Supervisory Tax Examining Technicians in the Rejects department make all corrections and complete any additional research required to aid in GMF processing. This department also has a Lead Tax Examining Technician and Tax Examining Technicians in the hierarchy.

    • Lead Tax Examining Technicians review and approve subordinate employees work prior to GMF validation. The Lead report to the Supervisory Tax Examining Technician.

    • Tax Examining Technicians manning program 270 are responsible for correcting all records to ensure GMF validation before payments are processed to IMF and BMF accounts.

  7. Policy Owner: The policy owner for IRM 3.12.21 is the Director, Submission Processing, Wage and Investment Division

  8. Program Owner: The names of the internal organization that are responsible for the administration, procedures, and updates related to the program, include, but, may not be limited, to the following.

    • Director, Submission Processing, Wage and Investment Division

    • Paper Processing Branch (Input by Integrated Submissions and Remittance Processing (ISRP) and Error Resolution correction of documents created by Accounting and Tax Payments Branch)

    • Paper Processing Branch; Business Master File (BMF) Section

    • Accounting and Tax Payments Branch (Credit and Account Transfers documents created by Accounting personnel)

  9. Primary Stakeholders: These can be other areas that are affected by these procedures or have input to the procedures. The affects may include a change in work flow, additional duties, change in established time frames, and similar issues.

    • Accounts Management (AM); Small Business/Self-Employed (SBSE), Large Business and International (LB&I); Chief Financial Officer (CFO); Taxpayer Advocate Service (TAS); Chief Counsel; Information Technology programmers; Statistics of Income (SOI); Tax Exempt/Governmental Entities (TE/GE); Compliance; Modernized E-File (MeF); Submission Processing (SP).

    • Accounting and Tax Payment Branch

    • Accounts Management (AM)

    • Small Business/Self-Employed (SBSE)

    • Large Business and International (LB&I);

    • Chief Financial Officer (CFO)

    • Custodial Detail Database (CDDB)

    • Taxpayer Advocate Service (TAS)

    • Chief Counsel

    • Tax Exempt/Governmental Entities (TE/GE)

    • Modernized E-File (MeF)

    • Information Technology programmers

    • Submission Processing (SP)

Background

  1. The purpose of Error Resolution is to resolve validity errors, field errors, consistency errors, and math errors in returns and other documents for posting to the Master File. Records fall out in ERS due to the Generalized Mainline Framework (GMF). The entries from (ISRP) transcription are transferred to ERS fields.

  2. This section provides instructions for correcting error registers of various credit and account transfers, including account adjustments and reactivation of retention register accounts.

  3. The GMF programming causes records to fall out to the Error Resolution paper registers if they fail to meet certain criteria, including (but NOT limited to):

    • Invalid characters in a field (that is, numeric instead of alpha characters)

    • Invalid length of field (that is, EIN (or SSN) with 8 digits instead of 9)

    • Invalid codes in field (that is, AC 009)

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

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

    • Invalid tax periods and eligibility for certain credits

Authority

  1. Authority for these procedures is found in Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC). Additional authority for these procedures may be found also the Internal Revenue Code sections 6302, in and in Title 31 of the United States Code (USC) ("Money and Finance" ) USC 321, 3301, 3302, 3303 and 3702, and in corresponding Treasury regulations and rules.

  2. The IRC has been amended by acts, public laws, rules and regulations such as the following:

    • The Protecting Americans from Tax Hikes (PATH) Act

    • Hiring Incentives to Restore Employment (HIRE) Act

    • Consolidated Appropriations Act (Extenders)

    • American Taxpayer Relief Act (ATRA)

    • Health Care and Education Reconciliation Act

    • Patient Protection and Affordable Care Act (ACA)

    • Foreign Account Tax Compliance Act (FATCA)

    • Revenue Reconciliation Act of 1998 (RRA 98)

    • Omnibus Budget Reconciliation Act of 1993 (OBRA)

    • Taxpayer Bill of Rights (TBOR)

    • Section 7801 - Application of Internal Revenue Laws

    • Section 2006(a) of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, Public Law (PL) 114-41, changed the return due dates for returns of partnerships, and C corporations

    Note:

    The above list may not be all inclusive of the various updates to the IRC.

Responsibilities

  1. These instructions will be used by Input Correction Operations, Error Resolution Function, when resolving processing errors on Credit and Account Transfer forms and documents (Wage and Investment (W&I)). The following employees are responsible for the activity(s) provided in this IRM, including the employee responsibilities and management responsibilities.

  2. The Director, Submission Processing (Wage and Investment Division), is responsible for monitoring operational performance for the Submission Processing campus.

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

  4. The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

  5. The team employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Management and Review

  1. Program Goals: First line managers of personnel working Credit and Account Transfer transactions will conduct reviews of cases assigned to all employees to ensure effective operational internal controls. The purpose of the review process is to ensure that employees are properly processing cases in a timely manner. Additional IDRS training, research guidance or counseling may be warranted if deficiencies are noted.

  2. Program Reports: Below are a list of reports used to show receipts, production and inventory for the paper return process. These reports are used to report and monitor daily and weekly status of the program to completeness:

    • PCC 6040, SC WP&C Performance and Cost Report

    • PCC 6240, SC WP&C Program Analysis Report

  3. Program Effectiveness: Goals are measured using standard managerial reports by documents processed and completion of each function for each week. Quality reviews are expected to be conducted and monitored by local management and corrective action taken to ensure quality products are released to the next function.

  4. Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under Responsibilities for a manager.

Program Controls

  1. The reports for the Control Data Analysis are on the Control-D/Web Access services, which has a login program control. Program criteria regarding and documents processed as Revenue Receipts and related information are determined by our Accounting and Tax Payments Branch, Accounts Management, and Compliance counterparts.

Terms/Definitions/Acronyms

  1. The following table contains a list of terms, acronyms, and/or abbreviations used throughout this IRM.

    Acronyms and Abbreviations

    Acronyms and Abbreviations Definition
    AC Action Code
    ADP Automated Data Processing
    AFD Alpha-Numeric Field Designator
    AM Accounts Management
    AMA Automated Manual Assessment
    APO Army Post Office
    BMF Business Master File
    C&E Code and Edit
    CC Command Code
    C/GEN Computer Generated
    CR Credit Reduction
    CSPC Cincinnati Submission Processing Center
    DLN Document Locator Number
    Doc Code Document Code
    E-File Electronically File
    e.g. For Example
    EIN Employer Identification Number
    EOCU EO Compliance Unit
    etc. Et Cetera
    ID Identification or Identity
    IDRS Integrated Data Retrieval System
    ISRP Integrated Submission and Remittance Processing
    IMF Individual Master File
    IRC Internal Revenue Code
    IRS Internal Revenue Service
    LB&I Large Business and International
    LCU Large Corporate Underpayment
    MeF Modernized Electronic Filing
    MFT Master File Tax
    MMDDYY Month Month Day Day Year Year
    NAICS North American Industry Classification System
    N/A Not Applicable
    OSPC Ogden Submission Processing Center
    P.O. Post Office
    RRA98 Restructuring and Reform Act of 1998
    SB/SE Small Business & Self-Employed
    SP Submission Processing
    SSN Social Security Number
    TAS Taxpayer Advocate Service
    TBOR Taxpayer Bill of Rights
    TC Transaction Code
    TE Tax Examiner
    TE/GE Tax Exempt & Government Entities
    TETR Telephone Excise Tax Refund
    TIN Taxpayer Identification Number
    TPE Tax Period Ending
    TY Tax Year
    U.S. United States
    USPS United States Postal Service
    W&I Wage and Investment
    ZIP Zone Improvement Plan

     

Related Resources

  1. If additional websites, job aids, or electronic tools are needed to complete the work, these should be listed. If there are many resources (if they extend beyond a page), consider placing them in an exhibit.

  2. Initial processing of the requests for these transfers and preparation of the input documents is described in the following Internal Revenue Manuals (IRMS):

    • IRM 3.17.243, Miscellaneous Accounting

    • IRM 3.17.244, Manual Assessments

    • IRM 3.17.21, Credit and Account Transfers.

    • IRM 3.24.21, Credit and Account Transfers.

  3. This IRM provides instructions for correcting the following input documents:

    1. Form 3413, Transcription List (Account Transfer-In); and,

    2. Form 3552, Prompt Assessment Billing Assembly.

IRM Deviation Procedures

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

General Error Correction Procedures

  1. This section describes the various error conditions, how they are identified on the registers, the action codes, and how they are used to resolve these conditions.

Error Register

  1. General descriptions of the contents, format and correction method of the error register are provided in IRM 3.12.37, IMF General Instructions or IRM 3.12.38, BMF General Instructions.

  2. Action Codes—every action taken on the error register requires the use of an action code. The Action Code is entered to the left of the section number being worked. The valid action codes for the error register are as follows:

    1. Action Code 3—(See Figure 3.12.21-1.)

      Note:

      Issue a Form 4227 (Intra-SC Reject or Routing Slip) or a Form 10886 (Reject Routing Slip) and notate on the form the error you need corrected.

      Figure 3.12.21-1

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    2. Action Code 4—(See Figure 3.12.21-2.)

      Note:

      Action Code 4 is not valid for Section 01.

      Figure 3.12.21-2

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    3. Action Code 5—(See Figure 3.12.21-3.)

      Figure 3.12.21-3

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    4. Action Code 6—(See Figure 3.12.21-4.)

      Figure 3.12.21-4

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    5. Action Code 7—(See Figure 3.12.21-5.)

    Figure 3.12.21-5

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Types of Error Conditions

  1. The types of error conditions you will encounter include validity, terminus, extraneous section, and missing section. This section will provide descriptions of and resolution instructions for each condition.

Validity Errors
  1. Validity errors are identified either because a field, which must contain data, is blank, or because the computer identified invalid characters within that field. Fields are validity checked to ensure correct data before transmittal to the master file. Each field that is found invalid is identified on the register with a asterisk (*) before the alpha field designator.

  2. Correct as follows:

    1. Compare the data on the register with the document being processed.

    2. Correct any transcription errors.

    3. If no corrections are necessary, use Action Code 7.

Terminus Errors
  1. A terminus error results when there is a non-numeric character in a numeric field, or when the format of the section is incorrect.

  2. Terminus errors are identified by two asterisks (**) to the left of the section number. (See Figure 3.12.21-6.)

    Figure 3.12.21-6

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  3. Correct as follows:

    1. Compare the data on the register with the document being processed.

    2. Correct any transcription errors.

    3. If no corrections are necessary, use Action Code 7.

Extraneous Sections
  1. Extraneous sections are identified by a single pound (#) sign in front of the section. (See Figure 3.12.21-7.)

    Figure 3.12.21-7

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  2. Correct as follows:

    1. Compare the data on the register with the document being processed.

    2. Correct any transcription errors.

    3. If the section is truly not needed to process the record, delete the section with Action Code 4.

    Note:

    SECTION 01 IS A REQUIRED SECTION AT ALL TIMES. DO NOT ATTEMPT TO DELETE SECTION 01 WITH ACTION CODE 4.

Missing Sections
  1. Missing sections are identified by an asterisk to the left of the section number with the alpha field designator for the section printed on the error register. (See Figure 3.12.21-8.)

    Figure 3.12.21-8

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  2. Correct as follows:

    1. Compare the data on the register with the document being processed.

    2. Correct any transcription errors.

  3. If a section not identified as a missing section must be added, use Action Code 5.

    1. Enter on the register only the fields which will contain data.

    2. The fields must be entered on the register in alphabetical order by alpha field designator.

Invalid Correction Attempt
  1. An invalid correction attempt is indicated by a "AA" printed to the right of the DLN (Document Locator Number) in the title line of the error register. For a complete description of invalid correction attempts, see IRM 3.12.37, IMF General Instructions or IRM 3.12.38, BMF General Instructions.

  2. Correct as follows:

    1. Correct all errors identified on the error register as if no attempt had been made to correct it before. If necessary, examine the corrections on the prior error register.

    2. If all the fields are correct on the error register, enter an Action Code 7 to the left of section 01 on the error register.

Input Documents - General Explanation

  1. This section describes the concept of non-ADP as it relates to the various master files document (e.g., for IMF (Individual Master File), BMF (Business Master File), and IRAF (Individual Retirement Account File)). Also described are the input documents (i.e., Form 3413 (Transcription List (Account Transfer-in)) and Form 3552 (Prompt Assessment Billing Assembly) used to re-establish accounts to or transfer assessments to or between these files.

Non-ADP (Automated Data Processing) Document

  1. A non-ADP (Automated DATA Processing) document, is a document being processed for a tax period that ended before the Automated Data Processing (ADP) system was in place for the particular document.

  2. When a document is for a non-ADP period, reject, using Action Code 3. Prepare Form 4227/Form 10886, (Intra-SC Reject or Routing Slip), and process as Non Master File (NMF).

Form 3413 - Transcription List

  1. Form 3413, Transcription List (Account Transfer-In), with Doc Code 51 or 52 is used to transfer into the Master File a list of all transaction codes, dates and amounts on a single record. All money amounts are entered in dollars and cents.

  2. These documents are prepared for accounts which have been either on Non Master File (NMF) or had been previously on the master file and were transferred out using Transaction Code (TC) 400. (See Figure 3.12.21-9a) See IRM 3.12.37, IMF General Instructions or IRM 3.12.38, BMF General Instructions.

    Figure 3.12.21-9a

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    Figure 3.12.21-9b

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Form 3552 - Prompt Assessment Billing Assembly

  1. Form 3552, Prompt Assessment Billing Assembly, is used to transfer Quick, Prompt, and Jeopardy Assessments to the BMF, IMF, or IRAF. All money amounts are entered in dollars and cents. (See Figure 3.12.21-10.)

    Figure 3.12.21-10

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Section 01

  1. This section provides descriptions of the fields and correction procedures for Section 01 of the register.

Section Fields A Through X Description

  1. The alpha field designators, field lengths (maximum length for variable fields), and the field titles are shown below:

    Field Field Length (+/−) Field Title
    01–A 4   Name Control
    01–B 9   EIN or SSN & TIN Type

    Exception:

    The TIN Type is corrected in Field 01-K.

    01–C 2   MFT Code (Master File Tax Account Code)
    01–D 6   Tax Period
    01–E 8   Date of Transfer (or, Transfer in Date)
    01–F 8   23C Date of Assessment
    01–G 3   Original Assessment Transaction Code
    01–H 12 +/− Original Assessment Transaction Amount
    01–I 15 + Transfer-in Amount (or Balance Transferred-in)
    01–J 8   Agreement Date
    01–K 1   TIN Type (located on Form 3413 under Item B, Section 01 ("EIN or SSN & TIN Type" ))
    01–L 8   Correspondence Received Date (located on Form 3413 as Item K, Section 01)
    01–M 3   Reference Number
    01–N 13 + Reference Number Amount
    01–O 8   2% Interest Date (located on Form 3413 as Item L, Section 01)
    01–P 8   Interest To Date
    01–Q 8   Interest Computation Date
    01–R 3   Plan/Report Number (MFT 46/74/76/85/86 Only)
    01-S 8   Excess Fringe Benefit Year (located on Form 3413 as Item U, Section 01)
    01-T 8   Reversion Date (located on Form 3413 as Item O, Section 01)
    01-U 6   Plan Year Ending Date (located on Form 3413 as Item S, Section 01)
    01-V 8   4980f Amendment Date (located on Form 3413 as Item V, Section 01)
    01-W 8   Form 8288 Trans Date (located on Form 3413 as Item T, Section 01)
    01-X 9   BMF TIN

    Note:

    Refer to the individual text instructions for the most current names/designations of Section 01, Fields A through X.

Correction Procedures - Section 01

  1. This section describes field validity criteria and correction procedures for Fields A through X in Section 01.

Field 01–A - Name Control (Validity Checks)
  1. The Master File Tax Account (MFT) Code is found in Item A (Section 01), Page 1, Form 3413 (Transcription List (Account Transfer-in)). It is located beneath the MFT box in the upper left corner of the Form 3552 (Prompt Assessment Billing Assembly), OR, the upper right corner of Form 3552, beneath the "Notice Date"

  2. This field MUST always be present and can contain up to four characters.

  3. BMF documents with a Social Security Number (SSN) (MFT 51, 52, 58, and 78) the first position must be alphabetic. The remaining characters can be alphabetic, hyphen or blank. No character may follow a blank.

  4. For BMF documents with an Employer Identification Number (EIN)—the first character must be alphabetic or numeric. The remaining characters can be alphabetic, numeric, hyphen, ampersand, or blank. No character may follow a blank.

  5. For IMF and IRAF documents—the first character must be alphabetic. The remaining characters can be alphabetic, hyphen, or blank. No character may follow a blank.

Field 01–A - Name Control (Correction Procedures)
  1. Compare the document with Field 01-A. Correct any transcription errors using Action Code 6.

  2. Research Integrated Data Retrieval System (IDRS) for a valid name control, using appropriate Command Codes.

    1. If a valid name control is found, correct the name control on the document and on the register. (See Figure 3.12.21-11.)

      Figure 3.12.21-11

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    2. If a valid name control is not found, reject the document with Action Code 3.

Field 01–B - EIN (Employer Identification Number) or SSN (Social Security Number) & TIN Type (Taxpayer Identification Number Type) (Validity Checks)
  1. The Taxpayer Identification Number (TIN) MUST always be present and MUST contain 9 digits.

    Note:

    Form 3413 ONLY: The "EIN or SSN & TIN Type" information is found in Item B (Section 01). The "EIN or SSN & TIN Type" field is NOT contained on the Form 3552. Form 3552 Only: The Taxpayer Identification Number is located in the upper right portion of the Form 3552, beneath the Name Control information.

  2. It can not be all zeroes (0) or all nines (9).

  3. IMF (Individual Master File) and IRAF (Individual Retirement Account File) documents will contain social security numbers (SSNs).

    Note:

    The IRAF (as a separate Master File) was retired in 2004. All references to "MFT 29" are what were previously referred to as IRAF.

  4. BMF documents will have a 9–digit taxpayer identification number which can be a Social Security Number (SSN) or an Employer Identification Number (EIN).

    1. SSNVs—MFTs 51 (Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return), and 52 (Form 706, U.S. Estate Tax Return), will always have an SSNV.

    2. MFTs 46, 58, and 78 with a TIN Type (Field 01–K) of "0" will have an SSNV. (See Figure 3.12.21-12.) If the TIN Type is blank, the TIN is an EIN.

      Note:

      The SSNV is used to identify the TIN of a Business Master File (BMF) entity posting to the BMF with a Social Security Number (SSN) as its TIN. If given an SSN by adding the "V" to the end (i.e., XXX-SS-XXXXV) it will pull up the BMF account associated with that MFT.

      Figure 3.12.21-12

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      Please click here for the text description of the image.

    3. EINs—must be all numeric and the first two digits may not be 00, 07 through 09, 17 through 19, 28, 29, 49, 78, 79, or 89.

Field 01–B - EIN or SSN & TIN Type - Correction Procedures
  1. Compare Field 01–B with the document. Correct any transcription errors.

    Exception:

    Only the EIN (Employer Identification Number) or SSN (Social Security Number) are corrected in Field 01-B. The TIN Type must be corrected in Field 01-K. see IRM 3.12.21.4.2.17.

  2. If the document was transcribed correctly and the taxpayer identification number contains other than 9 digits, research via IDRS, using Command Codes NAMEI (SSNs)(NAMES) and NAMEB (EINs)(NAMEE). If you are unable to locate a valid TIN, reject the document with Action Code 3.

  3. If the document is correct as transcribed, compare the document with the MFT code (Field 01–C) and the TIN Type (Field 01–K), i.e., SSN for IMF (Individual Master File), IRAF and MFT 51, 52, 58, and 78 and EIN for BMF. If the document has been numbered incorrectly reject with Action Code 3 for renumbering. (See Figure 3.12.21-13.)

    Figure 3.12.21-13

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    Please click here for the text description of the image.

Field 01–C - Master File Tax Account Code—MFT (Validity Checks)
  1. The Master File Tax Account (MFT) Code is found in Item C (Section 01), Page 1, Form 3413. It is located also in the MFT box on the upper left portion of the Form 3552.

  2. This is a two-digit field that MUST be present.

  3. The MFT is pre-printed or manually entered during the preparation of the document.

  4. The MFT must be compatible with the tax class in the DLN.

Field 01–C - Master File Tax Account Code—MFT (Correction Procedures)
  1. Compare Field 01–C with the document. Correct any transcription errors.

  2. If the MFT is not present, determine the correct code using Exhibit 3.12.21-4 and the criteria below. Enter the data in Field 01–C, using Action Code 6.

    1. If the document is IMF, the MFT must be 30, 31, 35, 55, or 65.

    2. If the document is IRAF, the MFT code must be 29.

    3. If the document is BMF, the MFT code must be 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 33, 34, 36, 37, 40, 43, 44, 46, 47, 49, 50, 51, 52, 55, 58, 60, 61, 62, 63, 64, 67, 74, 75, 76, 77, 78, 79, 85, or 86.

  3. Use the information in the table provided below to determine if the document was numbered correctly. If the MFT was transcribed correctly, compare the MFT and the tax class of the DLN (tax class is the third digit of the DLN). See Figure 3.12.21-14.

    Figure 3.12.21-14

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    Please click here for the text description of the image.

    MFT TAX CLASS Valid Section Presence
    01 1 01, 02–19, 30–33, 36, 40
    02 3 01, 02–19, 20–23, 30–33, 36
    03 4 01, 02–19, 30–33, 36, 37-39
    04 1 01, 02–19, 30–33, 40
    05 2 01, 02–19, 20–23, 30–33, 36
    06 2 01, 02–19, 30–33, 36
    07 3 01, 02–19, 30–33, 36
    08 1 01, 02–19, 20–23, 30–33, 36
    09 7 01, 02–19, 30–33, 36, 40
    10 8 01, 02–19, 30–33, 36, 41, 42–46
    11 1 01, 02–19, 30–33, 36, 40
    12 1 01, 02–19, 30–33, 36, 40
    13 3 01, 02–19, 30–33, 36
    14 1 01, 02-19, 30-33, 36, 40
    15 2 01, 02–19, 30-33
    16 1 01, 02–19, 30–33, 36, 40
    17 1 01, 02–19, 20–23, 30–33, 36
    29 2 01, 02–19, 30–33, 36, 37
    30, 31 2 01, 02–19, 20–23, 30–33, 36
    33 3 01, 02–19, 20–23, 30–33, 36
    34 3 01, 02–19, 20–23, 30–33, 36
    35, 65 2 01, 02–19, 20–23, 30–33, 36
    36 4 01, 02–19, 30–33, 36
    37 4 01, 02–19, 30–33, 36
    40 4 01, 02–19, 30–33, 36
    43 4 01, 02–19, 30–33, 36
    44 4 01, 02–19, 30–33, 36
    46 3 01, 02-19, 20–23, 30-33
    47 4 01, 02–19, 30–33, 36
    49 4 01, 02–19, 30–33, 36–39
    50 4 01, 02–19, 30–33, 36-39
    51 5 01, 02–19, 30–33, 36
    52 5 01, 02–19, 30–33, 36
    55 2 01, 02–19, 30–33, 36
    58 4 01, 02–19, 30–33, 36
    60 4 01, 02–19, 30–33, 36
    61 4 01, 02–19, 30–33, 36, 37-39
    62 4 01, 02–19, 30–33, 36
    63 4 01, 02–19, 30–33, 36
    64 4 01, 02–19, 30–33, 36
    65 2 01, 02–19, 20–23, 30–33, 36
    67 4 01, 02–19, 30–33, 36
    74 4 01, 02–19, 30–33, 36, 37–39
    75 4 01, 02–19, 30–33, 36, 37–39
    76 4 01, 02–19, 30–33, 36, 37-39
    77 5 01, 02–19, 30–33, 36
    78 5 01, 02–19, 30–33, 36
    79 4 01, 02–19, 30–33, 36, 37-39
    85 3 01, 02-19, 20–23, 30-33
    86 3 01, 02-19, 20–23, 30-33
  4. If the document was numbered incorrectly, reject the document for renumbering, using Action Code 3.

  5. If the MFT was transcribed incorrectly and the MFT on the document is compatible with the tax class in the DLN, correct Field 01–C.

    1. IF THE MFT IS CORRECTED TO 03, 50, OR 61 ON A DOC CODE 51 RECORD, BE SURE THE ABSTRACT REQUIREMENTS OF SECTIONS 36–39 ARE MET BY ADDING SECTIONS IF NECESSARY. (See Table IRM 3.12.21.4.2.8.)

    2. IF THE ABSTRACT REQUIREMENTS ARE NOT IN THE SECTION 36–39 REJECT, USE ACTION CODE 3. (See Figure 3.12.21-15.)

    Figure 3.12.21-15

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    Please click here for the text description of the image.

Field 01–D - Tax Period (Validity Checks)
  1. The Tax Period is found in Item D (Section 01), Page 1, Form 3413. It is located also in the Tax Period box on the upper left portion of the Form 3552 (to the right of the MFT box).

  2. This field MUST be present, contain six digits, and be all numeric.

  3. It is edited in YYYYMM format. The first four positions represent the year and the last two positions represent the month of the tax period.

  4. The month in the tax period must be 01 through 12.

    Exception:

    MFT 52 (Form 706) is valid with a tax period of 000000.

  5. MFTs 58, 60, 61, 62, 63, and 64 use the tax period beginning date as the tax period. All other MFTs use the tax period ending date as the tax period with the exception of MFT 52 (see IRM 3.12.21.4.2.7(3) above).

  6. Field 01–D will appear invalid if MFT is 30 or 31 and the tax period is before 196212.

  7. Field 01–D will appear invalid if MFT is 29 and the tax period is before 197512.

  8. Field 01–D will appear invalid if MFT is 55 and the tax period is before 197512.

  9. Field 01–D will appear invalid if MFT is 35 and the tax period is before 201412.

  10. Field 01–D will appear invalid if MFT is 43 and the tax period is before 201512.

  11. Field 01–D will appear invalid if MFT is 65 and the tax period is before 201412.

  12. Field 01–D will appear invalid, along with Fields 20A–E or I, if the tax period is other than 197810 through 198011 and the transaction code is 63X. (63X equals 630, 632, 636, and 637. For MFT 02, 05, 30, 31, 33, and 34 only.) (See Figure 3.12.21-16.)

    Figure 3.12.21-16

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    Please click here for the text description of the image.

  13. Field 01–D, Tax Period, will appear invalid along with Field 01–M, Reference Number, if

    1. The tax period is prior to 198709 and the reference number is 685; or

    2. The tax period is prior to 198909, the MFT Code is not 29, and the reference number is 686(See Figure 3.12.21–17); or

    3. The tax period is prior to 199012, the MFT is 13, and the reference number is 649; or

    4. The tax period is prior to 199012, the MFT is 13, and the reference number is 678; or

    5. The tax period is prior to 199712, the MFT is 55, and the reference number is 627; or

    6. The tax period is prior to 200209, the MFT is 13 OR MFT 55, and the reference number is 708 or 709; or

    7. The tax period is prior to 200705, the MFT is 30, and the reference number is 687; or

    8. The tax period is prior to 200912, the MFT is 30, and the reference number is 677OR 706; or

    9. The tax period is prior to 201003, the MFT is 46, and the reference number is greater than 291 and less than 296, or

    10. The tax period is prior to 201003, the MFT is either 02, 03, 05, 06, 07 30, 31, 34, 51, 52, 55, and the reference number is 683, or,

    11. The tax period is prior to 201006, and the reference number is 682 or,

    12. The tax period is prior to 201006, and the reference number is 780 or 781; or,

    13. The tax period is not equal to or within 201112 through 202103, the MFT is 01 and the reference number is 290; or,

    14. The tax period is not equal to or within 201112 through 202112, the MFT is either 11 or 14, and the reference number is 290; or,

    15. The tax period is prior to 201409, the MFT is 79, and the reference number is 290 or 298;, OR

    16. The tax period is prior to 200912 and the reference number is 677 OR 706.

      Figure 3.12.21-17

      This is an Image: 33670017.gif
       

      Please click here for the text description of the image.

  14. If Reference Code is 528, MFT is 55, and the Reference Number Amount is greater than $10,000, all three fields (i.e., Field 01-D, Field 01-M (Reference Number), and Field 01-N (Reference Number Amount)) will appear invalid.

  15. When Reference Number 658 is present with MFT Code 13, Reference Number Amount cannot exceed $5,000.00. The Tax Period cannot be prior to 199812 and the Month of Tax Period cannot be other than 12.

  16. If Reference Code is 678, Field 01–D will appear invalid with Field 01–M (Reference Number) and Field 01–N (Reference Number Amount), if the tax period is earlier than 198512. The Month of the Tax Period must be "12" . The dollar amount cannot be greater than $50,000.00. If any of these conditions are present all three Fields will appear invalid.

  17. If Reference Code is 663, MFT is 13, and the Tax Period is before 200008, OR the Reference Number Amount is greater than $50,000, all three fields will appear invalid.

Field 01–D - Tax Period (Correction Procedures)
  1. Correct as follows:

    1. Compare the register with the document. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record with Action Code 3. Attach Form 4227 /Form 10886, notate "invalid tax period" , and route to the Accounting function.

  2. The tax period cannot be later than the current processing month plus one year or earlier than the beginning tax period indicated in the table found in Exhibit 3.12.21-1 for the specific MFT being processed.

    MFT–CD BMFTX/PRD END TX/PD EARLIEST DATE ALLOWED MM–LIMITS
    01 196203 YYYY12 TAX–PRD minus 2 months 3, 6, 9, 12
    02 196112 YYYY12 TAX–PRD minus 11 months 1–12
    03 196203 YYYY12 TAX–PRD minus 2 months 3,6,9,12
    04 196203 199412 TAX–PRD minus 2 months 3,6,9,12
    05/06 196112 YYYY12 TAX–PRD minus 11 months 1–12
    07 198712 YYYY12 TAX-PRD minus 11 months 12
    08 200412 YYYY12 TAX–PRD minus 11 months 1–12
    09 196203 197512 TAX–PRD minus 2 months 3,6,9,12
    09 197612 YYYY12 TAX–PRD minus 11 months 12
    10/11 196112 YYYY12 TAX–PRD minus 11 months 12
    12 198512 YYYY12 TAX–PRD minus 11 months 12
    #13 198012 YYYY12 TAX–PRD minus 11 months 12
    14 200612 YYYY12 TAX–PRD minus 11 months 12
    15 199012 YYYY12 TAX–PRD minus 11 months 12
    16 199412 YYYY12 TAX–PRD minus 11 months 12
    17 200512 YYYY12 TAX-PRD minus 11 months 1–12
    33 196112 200611 TAX–PRD minus 11 months 1–12
    34 196112 YYYY12 TAX–PRD minus 11 months 1–12
    35, 65 201412 YYYY12 TAX–PRD minus 11 months 1–12
    36 197012 YYYY12 TAX–PRD minus 11 months 1–12
    37 197001 198712 TAX–PRD minus 11 months 1–12
    37 198812 YYYY12 TAX–PRD minus 11 months 12
    40 200401 YYYY12 TAX-PRD minus 11 months 1-12
    43 201512 YYYY12 TAX-PRD minus 11 months 1–12
    44 197001 YYYY12 TAX–PRD minus 11 months 1–12
    46 198412 YYYY12 TAX–PRD minus 11 months 1–12
    47 200007 YYYY12 TAX-PRD minus 11 months 1–12
    49 200007 YYYY12 TAX-PRD minus 11 months 1–12
    50 197001 YYYY12 TAX–PRD minus 11 months 1–12
    51 196112 197012 TAX–PRD minus 11 months 12
    51 197103 198112 TAX–PRD minus 2 months 3,6,9,12
    51 198212 YYYY12 TAX–PRD minus 11 months 12
    52 000000 000000 12/01/1961  
    58 197007 198009 TAX–PRD 1–12
    *60 195607 YYYY12 TAX–PRD 1–12
    *61 196206 198706 TAX–PRD 1–12
    *62 196206 198006 TAX–PRD 1–12
    *63 196206 YYYY12 TAX–PRD 1–12
    *64 196206 YYYY12 TAX–PRD minus 1 month 1–12
    65 201412 YYYY12 TAX–PRD minus 11 months 1-12
    67 197012 YYYY12 TAX–PRD minus 11 months 1–12
    74 198412 YYYY12 TAX-PRD minus 1 months 1-12
    76 198412 YYYY12 TAX-PRD minus 11 months 1-12
    77/78 198612 YYYY12 TAX–PRD minus 11 months 12
    79 201409 YYYY12 TAX–PRD minus 11 months 12
    85/86 198412 YYYY12 TAX–PRD minus 11 months 1-12
  3. IMPORTANT: The following "bullets" provide additional information on certain items displayed in the above-referenced table (i.e., note asterisked (*) and pound-signed (#) references):

    • * Bypass generating EARLIEST—DATE—ALLOWED on correction passes

    • # Month range for MFT—CD 13 with Reference Numbers 565, 613, 643, 644, 648, 650, 655, 656, 657, 661, 676, 677 is 01 through 12.

    • # MFT-CD 13 has to be calendar year with Reference Number 628.

      Note:

      Day in EARLIEST—DATE—ALLOWED is 01. YYYY in TAX–PRD is equal to YEAR of PROCESS—DATE plus 1 year.

  4. Correct as follows:

    1. Compare the document to the error register. Correct any transcription errors.

    2. If the tax period was transcribed correctly but the period was prior to the earliest valid tax period, reject using Action Code 3 for further research.

    3. If transcribed correctly but the tax period on the document is incorrect, reject with Action Code 3. Attach Form 4227/Form 10886 and notate "invalid tax period" . (See IRM 3.12.21.4.2.8(2) above.)

Field 01–E - Date of Transfer (also known as "Transfer-In Date" (Validity Checks))
  1. The Date of Transfer is found in Item E (Section 01), Page 1, Form 3413.

  2. This is a eight-digit field which MUST be present and must be NUMERIC.

  3. It is edited in YYYYMMDD format. The month (fifth and sixth digits) must be 01–12 and the day (seventh and eighth digits) must be 01–31).

  4. On BMF documents—the date may not be later than the current date, earlier than the tax period beginning nor earlier than 1961–12–01.

  5. On IMF documents—the date may not be later than the current date, earlier than the tax period beginning nor earlier than 1962–12–01.

  6. On IRAF documents—the date may not be later than the current date, earlier than the tax period beginning date nor earlier than 1976–01–01.

  7. For all MFTs—the transfer in date cannot be earlier than the earliest date allowed for the individual MFT (see IRM 3.12.21.4.2.8 for table).

Field 01-E - Date of Transfer (also known as "Transfer-In Date" ) (Correction Procedures)
  1. Compare the document with the register. Correct any transcription errors.

  2. If correct as transcribed, determine the valid date from Form 3413 or Form 3552 and enter the result in Field 01–E.

  3. If there is no date on the document, enter the same date as in Field 01–F (23C Date (Date of Assessment/Transaction Date)).

Field 01–F - 23-C Date of Assessment (also known as "Transaction Date" ) (Validity Checks)
  1. The 23C Date or Date of Assessment is found in Item F (Section 01), Page 1, Form 3413. It is located also under the Reference column (Line 30) of the Form 3552.

  2. This field is the 23C date of Field 01–G, Original Assessment Transaction Code.

  3. This field is a eight-digit field which must be numeric.

  4. It is edited in YYYYMMDD format. The month (fifth and sixth digits) must be 01–12 and the day (seventh and eighth digits) must be 01–31.

  5. The transaction date may not be later than the current processing date, not earlier than the tax period beginning date and not earlier than the earliest date valid for the master file and MFT being processed. (See table in IRM 3.12.21.4.2.8 for earliest date allowed by MFT.)

    1. BMF—cannot be earlier than 1961–12–01 (i.e., December 1, 1961).

    2. IMF—cannot be earlier than 1962–12–01 (i.e., December 1, 1962).

    3. IRAF—cannot be earlier than 1976–01–01 (i.e., January 1, 1976).

  6. For BMF only—the transaction date may be earlier than the tax period on the correction run for MFTs 51, 58, 60, 61, 62, 63 and 64. If the date is correct, enter Action Code 7 to clear the register. For other BMF MFT Codes, see correction procedures under IRM 3.12.21.4.2.12.

  7. Both the transaction code and the transaction date must be present. If one is missing, Fields 01–F, 23-C Date of Assessment (Transaction Date), 01–G, Original Assessment Transaction Code, and 01–H, Original Assessment Transaction Amount, will appear invalid. (See Figure 3.12.21-18.)

    Figure 3.12.21-18

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Field 01-F - 23-C Date of Assessment (also known as "Transaction Date" ) (Correction Procedures)
  1. Compare the document with the register. Correct any transcription errors.

  2. If BMF MFT Code is other than 51, 58, 60, 61, 62, 63 or 64, reject, using Action Code 3, and notate on Form 4227/Form 10886, "Trans. Date is prior to tax period" .

  3. If the date is correct as transcribed and Field 01–F is in error, determine the correct date or tax period. Enter the information on the register with Action Code 6.

  4. If the correct data cannot be determined, reject the register with Action Code 3. Attach Form 4227/Form 10886 and notate "invalid or missing Assessment date" .

Field 01–G - Original Assessment Transaction Code (or, "Transaction Code of Original Assessment" )
  1. The Original Assessment Transaction Code is found in Item G (Section 01), Page 1, Form 3413. It is located also under the TC (Transaction Code) column (Line 31) of the Form 3552.

  2. This field will appear invalid if it is not one of the codes shown in the appropriate chart Exhibit 3.12.21-5 through Exhibit 3.12.21-7.

  3. This field will appear invalid if it does not contain a Transaction Code that is valid for the doc code and MFT being processed.

    1. Compare the document with the register. Correct any transcription errors (NUMERIC).

      Note:

      The Original Assessment Transaction Code is found in Item G (Section 01), Page 1, Form 3413.

    2. If the document is correct as transcribed and a valid transaction code cannot be determined, reject the document with Action Code 3. Attach Form 4227/Form 10886 (Intra-SC Reject or Routing Slip) and notate "01-G invalid" .

  4. Fields 01–G and 01–H will appear invalid if there is an entry in Field 01–I and Field 01–H is blank. Enter the original transaction amount from Form 3413, in Field 01–H. If the amount cannot be determined, reject the document with Action Code 3.

  5. Fields 01–G and 01–J will both asterisk if there is an entry in Field 01–J, and Field 01–G is not 300. ( Figure 3.12.21-19.) If Field 01G is other than 300, reject the document with Action Code 3. Attach Form 4227/Form 10886 and notate "01-G not 300" .

    Figure 3.12.21-19

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  6. Field 01–G will asterisk if the MFT is 12, Field 40–H is present and the transaction code is other than 150. (See Figure 3.12.21-20.) Correct as follows:

    Figure 3.12.21-20

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    Please click here for the text description of the image.

    1. Compare the register with the document. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record with Action Code 3. Attach Form 4227 /Form 10886 and notate "TC 150 missing MFT 12 with Line 8 amount present."

  7. Field 01–G will appear invalid along with Fields 01–H, Original Assessment Transaction Amount, Field 01–M, Reference Number and Field 01–N, Reference Amount if the information contained in those fields does not match the information contained in the table below.

    MFT is 13 or 55*

    MFT-CD 01–M REFERENCE NUMBER 01–N REFERENCE NUMBER AMT 01–G TRANS CD SECTION 01 01–H TRANS AMOUNT SECTION 01
    55 527, 528 Greater than 0 240 0
    55 Present (exclude 527, 528) Greater than 0 290 0
    13 Present Greater than 0 240 0
    13 Present (exclude 662, 663) Greater than 0 290 or 241 0
    55 Not Present 0 402 0 or positive
    13 Not Present 0 240 or 402 0 or positive
    13 Not Present 0 241 0 or negative

     

    MFT is 02, 05, 51, 52, 30, 31

    01–M REFERENCE NUMBER 01–N REFERENCE NUMBER AMT 01–G TRANS CD SECTION 01 01–H TRANS AMOUNT SECTION 01
    Present greater than 290 Positive or 0
    (not blank) 0    
    Present greater than 300 Positive or 0
    (not blank) 0    

     

    1. Compare the document with the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record with Action Code 3.

  8. IMPORTANT: The following "bullets" provide additional information on certain items contained in the above-referenced tables:

    • * MFTs 13 or 55: If Fields 01–M and 01–N are present, there must be a TC 290 in Field 01–G and NO amount in Field 01–H.

    • ** MFTs 02, 05, 30, 31, 51, or 52: If Fields 01–M and 01–N are present, there must be either a TC 290 in Field 01–G and NO amount in Field 01–H, or a TC 300 in Field 01–G with or without an amount in Field 01–H.

  9. Fields 01–G and 01–H will appear invalid if the transaction code is 150, the transaction amount is greater than 0 (zero), and the MFT is 06, 36, 37 (with a tax period later than 198711), or 67. Reject the register with Action Code 3. Attach Form 4227/Form 10886, notating, "Transaction Code 150 transaction amount greater than 0" (zero).

Field 01–H - Original Assessment Transaction Amount (or, "Transaction Amount" )
  1. The Original Assessment Transaction Amount is found in Item H (Section 01), Page 1, Form 3413. It is located also under the Assessment column (Line 32) of the Form 3552.

  2. This field must be all numeric.

  3. The sign of this field must be compatible with Field 01–G (Transaction Code). See Exhibit 3.12.21-5 through Exhibit 3.12.21-7 for the valid debit and credit transaction codes.

  4. If there is an entry in Field 01–H, there must be an entry in Field 01–G.

  5. This field cannot be signed negative unless Field 01–G contains TC 430. TC 430 is only valid for IMF, MFT 30, Doc Code 52.

  6. Fields 01–G and 01–H will appear invalid if the transaction code is 150, the transaction amount is greater than 0 (zero), and the MFT is 06, 36, 37 (with a tax period later than 198711), or 67. Reject the register with Action Code 3. Attach Form 4227/Form 10886, notating, "Transaction Code 150 transaction amount greater than 0" (zero).

Field 01–I - Transfer-in Amount (also known as "Balance Transferred-In" or "Primary-Trans-PJ (prejournalized) - Amount" )
  1. The Transfer-In Amount is found in Item I (Section 01), Page 1, Form 3413.

  2. This field must contain all numerics.

  3. This field cannot be changed. If there is a transcription error in the money amount, reject the document with Action Code 3 to be reinput.

    Note:

    Issue a Form 4227 (Intra-SC Reject or Routing Slip) or a Form 10886 (Reject Routing Slip) and notate on the form the transfer-in amount was not transcribed correctly.

  4. If the Doc Code is 51, Field 01–I must be a debit (signed positive) or zero.

  5. If the Doc Code is 52, Field 01–I must be zero.

  6. If Field 01–I underprints, see IRM 3.12.21.12.1.

Field 01–J - Agreement Date (also known as, "870 Agreement Date" )—DOC Code 51 only
  1. The Agreement Date is found in Item J (Section 01), Page 1, Form 3413. It is located on Line 23 of the Form 3552 (it is displayed as the "870 Agreement Date" ).

  2. This field is invalid with Doc Code 52.

  3. This date is entered from Form 3552 and Form 3413 (Doc Code 51 only) to provide the master file with the correct interest computation date.

  4. This date must be in YYYYMMDD format. The month (fifth and sixth digits) must be 01–12 and the day (seventh and eighth digits) must be 01–31.

  5. The date may not be later than the current processing date or earlier than the following dates:

    1. 1970–01–01 (i.e., January 1, 1970) for IMF and BMF on initial input or 1962–01–01 (i.e., January 1, 1962) for BMF and 1962–12–01 (i.e., December 1, 1962) for IMF on error correction run.

    2. 1976–01–01 (i.e., January 1, 1976) for IRAF on both initial input and error correction run.

  6. If an invalid 870 date is present on Form 3552 and a valid date is not available from the attachments, reject the document using Action Code 3 and notate on Form 4227/Form 10886, "invalid 870 date" .

  7. If an agreement date is present in Field 01–J, then Field 01-G must have a TC 300, 304 or 308. If Field 01-G is other than TC 300, 304 or 308 remove the agreement date in Field 01-J.

Field 01–K - TIN Type
  1. This field must contain a "0" (Zero) when the MFT, (Field 01–C) is 58, 78, 76 and TIN, (Field 01-B), is SSN. In all other cases, leave blank.

    Note:

    If incorrect or missing, compare against the TIN Type found in Item B (Section 01), Page 1 ("EIN or SSN & TIN Type" ), Form 3413) and correct Field 01-K.

  2. If MFT is 29, 30, 31, 35, 51, 52, 55, or 65 then TIN Type should be "0" (SSN).

  3. If MFT is 17, 58, 76 or 78 TIN Type can be either "0" for (SSN) or Blank for (EIN).

  4. Delete entry Field 01-K if invalid.

Field 01–L - Correspondence Received Date
  1. The Correspondence Received Date is found in Item K (Section 01), Page 1, Form 3413. It is located on Line 24 of the Form 3552.

  2. The Correspondence Received Date must be in YYYYMMDD format and must be all numeric. It may not be later than the current processing date nor earlier than 1962–12–01 (December 1, 1962) for IMF, 1961–12–01 (December 1, 1961) for BMF, or 1976–01–01 (January 1, 1976) for IRAF. It cannot be earlier than the earliest date allowed.

  3. If the date was transcribed incorrectly, correct using Action Code 6.

  4. If a valid correspondence received date cannot be located, reject the document with Action Code 3 and notate on Form 4227/Form 10886, "invalid correspondence received date" .

Fields 01–M and 01–N - Reference Number and Reference Number Amount
  1. This data is necessary to allow the automatic transfer of certain civil penalties, using Doc Code 51 or 52 into MFTs 02, 05, 13, 30, 31, 51, 52, and 55.

    Note:

    The Reference Number and Reference Number Amount are found under Item M and Item N (Section 01), respectively, Page 1, Form 3413.

  2. Fields 01–M and 01–N are invalid for IRAF (MFT 29). If present, reject the document with Action Code 3. Notate the Form 4227/Form 10886, "Reference Number and amount not valid on IRAF."

  3. Instructions: If there is a Reference Number (01–M), there must be an amount in (01–N). If either is present they must both be present. These Fields are not valid for IRAF (MFT 29).

  4. IMF (MFT 55) or BMF (MFT 13) with TC 402 is not valid with Fields 01–M and 01–N.

  5. IMF (MFT 35) or IMF (MFT 65) with TC 240 is not valid with Fields 01–M.

  6. The original 01-N is a positive number. If correction is made on 01-N, it can be a negative number.

  7. Field 01M, Reference Number, if present, must be a three-digit numeric. See the table below for valid MFTs and Reference Numbers.

    MFT–AND REFERENCE–NUM–TABLE

    REFERENCE–NUM MFT–CD DOC–CD
    198 12 51, 52
    253 30 51
    255 through 258 30 51
    260 30 51
    262 30 51
    281 through 282 12 51
    290 01, 11, 14 51, 52
    292 through 295 46 51
    296 (needs verified for MFT 01) 01 51
    299 (needs verified for MFT 01) 01 51
    324 40 51, 52
    330 through 333 08 51, 52
    330 through 333 02, 12 51
    331 through 332 30 51
    334 30 51
    336 30 51
    338 30 51
    346 40 51, 52
    350 40 51, 52
    352 through 357 40 51, 52
    359 through 363 40 51, 52
    369 40 51. 52
    375 through 377 40 51, 52
    391 13, 55 51, 52
    411 13, 55 51, 52
    438 03 51, 52
    500 through 510 13, 55 51
    511 13, 55 51, 52
    512 through 518 13, 55 51
    520 through 526 13, 55 51
    527 through 528 55 51, 52
    530 13, 55 51, 52
    531 13, 55 51, 52
    533 13, 55 51, 52
    535 13, 55 51, 52
    537 13, 55 51, 52
    547 through 548 13, 55 51
    549, 550 13, 55 51, 52
    551 13, 55 51, 52
    559 through 562 13, 55 51, 52
    581 13, 55 51, 52
    589 13, 55 51, 52
    598 13, 55 51, 52
    599 13, 55 51, 52
    600 through 657 13, 55 51
    627 55 52
    658 13 51, 52
    658 through 660 55 51
    661 13, 55 51
    662 through 663 13 51, 52
    662 through 673 55 51
    674 through 677 13, 55 51
    678 *** 13 51
    680 01 through 05, 07, 09 through 12, 14, 16, 30, 31, 33, 34, 37, 44, 50, 51, 52, 60, 63, 64, 77, 78 51, 52
    681 02, 05, 30, 31, 51, 52 51, 52
    682 51, 52 51, 52
    683 02, 03, 05, 06, 07, 30, 31, 34, 51, 52, 55 51, 52
    685 02, 30, 31 51, 52
    686 * 01 through 05, 07, 09 through 12, 14, 16, 30, 31, 33, 34, 37, 44, 50, 51, 52, 60, 63, 64, 77, 78 51, 52
    687 30 51
    689 ** 37, 44, 46, 67, 85, 86 51
    692 35, 65 51, 52
    700 55 51
    706 13, 55 51
    708, 709 13, 55 51
    711 13, 55 51, 52
    780, 781 ALL 51, 52
    786 through 792 02/30 51
    870, 871, 872 35, 37 51/52

     

  8. IMPORTANT: The following "bullets" provide additional information on certain items contained in these instructions and the above-referenced table:

    • The original O1-N is a Positive Number. If a correction is made on O1-N, it can be a negative.

    • *DOC Code 52 will be valid for Reference Number 686 for 200101 processing.

    • ** Reference Number 689 valid only with TC 240

    • If Field 01–M is 680, 681, 682, 685, 686, or 689, then Field 01–G must contain either TC—290, 294, 298, 300, 304, 308, or 402; or TC-291, 295, 299, 301, or 309 must appear in the appropriate TC field in Sections 02–19. (TC 291, 295, 299, 301, or 309. May appear in Section 02–19 but are not required. Their associated Transaction Amounts must be negative).

    • If not, Field 01–D, Field 01–M, Field 01–N or the appropriate TC and Amount Fields in Sections 02–19 will appear invalid.

    • ***Reference Code 678 is valid for calendar year Tax Periods 198512 and subsequent. It must be month 12. It is invalid for amounts greater than $50,000. If any of these requirements are not met, Fields 01–D, 01–M and 01–N will appear invalid.

    Note:

    This table matches the MFT/REF-NUM/TAX-PRD CONSISTENCY TABLE FOR DP-ADJUSTMENTS (FSP NO.: 1.05.19.01).

  9. If there is either a reference number or amount, there must be both. Field 01–N, Reference Amount, is a numeric not to exceed 13 digits. If there is a reference number present and no reference amount, search the document and attachments for a valid reference amount.

    1. If one is found, enter it in Field 01–N.

    2. If a valid reference amount cannot be found, reject the document with Action Code 3. Notate on Form 4227/Form 10886, "Reference Amount missing" .

  10. If there is a reference amount present and no reference number, search the document and attachments for a valid reference number.

    1. If one is found, enter it in Field 01–M.

    2. If one is not found, use the table above to determine the correct reference number and enter in Field 01–M.

    3. If you can not readily determine the correct reference number, use your local procedures to correct the problem.

Field 01–0 - 2% Interest Date
  1. The 2% Interest Date is not valid for MFTs 29, 30, and 55.

    Note:

    The 2% Interest Date is found in Item L (Section 01), Page 1, Form 3413. It is located on Line 21 of the Form 3552.

  2. The 2% Interest Date is not a required field.

  3. If the 2% Interest Date is present on Form 3552, TC 340 (Section 02 through 16) and the Interest-To-Date (Field 01–P) must also be present. If the required fields are not present, reject the register using Action Code 3. Attach Form 4227/Form 10886, notating, "interest-to date missing" .

  4. The 2% Interest Date must be numeric and in YYYYMMDD format.

  5. The 2% Interest Date may not be earlier than 1991–01–01 (i.e., January 1, 1991), nor may it be later than the current processing date.

  6. TC 340/341 must be present for Sections 30 through 33.

    1. If the date was transcribed incorrectly, correct using Action Code 6.

    2. If the correct 2% Interest date cannot be determined, reject, using Action Code 3. Attach Form 4227/Form 10886, notating, "2% interest to date cannot be determined" .

  7. See IRM 3.12.21.4.2.23 for additional information regarding validity checks and if Large Corporate Underpayment (LCU) interest (i.e., additional 2% interest) is applicable.

Field 01–P - Interest-To-Date (Form 3552 only)
  1. The Interest-to-Date is located on Line 20 of the Form 3552.

  2. Only one Interest-To-Date can be present.

  3. This field must be all numeric and in YYYYMMDD format.

  4. Month must be in the range of 1 through 12.

  5. Month/Day configuration must be valid in the Month-Day-Table.

  6. If the date is not valid or it has been transcribed incorrectly, correct with Action Code 6.

  7. If the date is not valid and it has been transcribed correctly, reject, using Action Code 3. Attach Form 4227/Form 10886, notating, "interest-to date is not valid" .

  8. See IRM 3.12.21.4.2.23 for additional information regarding validity checks and Interest-to-Date.

Field 01–Q - Interest Computation Date (Form 3552) BMF/IMF
  1. The Interest Computation Date is located on Line 22 of the Form 3552.

  2. If an Interest Computation Date is present, one of the following Transaction Codes (TCs) 294, 295, 298, 304, 308, and/or 309 must be present. Only one transaction must be present with the following exceptions.

    1. A TC 294 or TC 298 can be present with or without TC 290. If any other TC is present with TC 290, Field 01–Q will asterisk.

    2. A TC 304 or TC 308 can be present with or without TC 300. If any other TC is present with TC 300, Field 01–Q will asterisk.

  3. Transaction codes may appear in Field 01–G or in Sections 02 through 19.

  4. Invalid Conditions:

    Note:

    Not valid for IRAF (MFT 29).

    1. If the Interest Computation Date (Field 01–Q) is present, but none of these transaction codes is present, Field 01–Q will asterisk (set to "error" ).

    2. If the Interest Computation Date (Field 01–Q) is present, and more than one of these transaction codes is present, Field 01–Q and all corresponding transaction code fields will asterisk.

    3. If the Interest Computation Date is present with either a TC 294 or 298, and more than one TC 290 or any TC 300 is present in Section 01–19, Field 01–Q and all corresponding transaction codes will asterisk.

    4. If the Interest Computation Date is present with either a TC 304 or 308, and more than one TC 300 or any TC 290 is present in Section 01–19, Field 01–Q and all corresponding transaction codes will asterisk.

    5. If the Interest Computation Date (Field 01–Q) contains NO entry, and any Transaction Code (294, 295, 298, 299, 304, 308, or 309) is present in Sections 01–19, Field 01–Q and all corresponding transaction codes will asterisk.

  5. Correction Procedures:

    1. Compare the document and the register.

    2. If the date is invalid and/or was transcribed incorrectly, correct with Action Code 6.

    3. If the date is transcribed correctly, verify that a valid transaction code was entered.
      If the document was correctly transcribed, reject the record with Action Code 3. Attach Form 4227/Form 10886, notating, "Comp date or Trans code invalid" .

  6. See IRM 3.12.21.4.2.23 below for additional information regarding validity checks and the Interest Computation Date. Also refer to correction procedures in IRM 3.12.21.5.2.2 (Section 02–19—Fields B, E, and H—Transaction Codes).

Field Validity - Interest Computation Date, Interest-to-Date and 2% Interest Date
  1. Each of these fields must be all numeric and in YYYYMMDD format. Except for MFT 52, the Interest Computation Dates are invalid when the Year of the Interest to Date or Interest Computation Date is earlier than the Year of the Tax Period or later than the Year of the Process Date. (For MFT 52 Only, the Interest-to-Date and Interest-Computation-Date are invalid when Date is after the Process Date, or Date is before December 1, 1961 (12/01/1961).)

  2. The MM must be 01 through 12. The DD must be 01 through 31. If the month is February, then numerics 30 and 31 are invalid. If the additional 2% interest rate applies, the 2% "Interest Date" must be present with Field 01–Q.

    Note:

    The 2% "Interest Date" is entered only if Large Corporate Underpayment (LCU) interest (i.e., additional 2% interest) is applicable.

Field 01–R, Plan/Report Number (MFT 46/74/76/85/86 ONLY) (also known as "Report Number" ) (BMF Only)
  1. The Plan/Report Number can only be present with MFT Code 46, 74, 76, 85, or 86 and vice versa. This applies to BMF only. If the MFT is not 46, 74, 76, 85, or 86, Field 01–R and Field 01-C (Master File Tax Account (MFT) Code) will asterisk.

    Note:

    The Plan/Report Number is found in Item R (Section 01), Page 1, Form 3413. It is located in the upper right portion of the Form 3552, beneath the Name Control, Taxpayer Identification Number, and Form Number information.

  2. If the Plan/Report Number is present, but the MFT is not 46, 74, 76, 85, or 86, Field 01–R and Field 01-C (Master File Tax Account (MFT) Code) will asterisk.

  3. The MFT 46, 85, or 86 Plan/Report Number must not be in the range of 001-199, 200-299, 400–499, 600–699, 800–899; and for the MFT Code 74 the report must not be in the range of 100-199, 300-399, 500-599, 700-799, 900-999.

  4. The MFT 76 Plan/Report Number must not be in the range 000-999.

Field 01-S, Excess Fringe Benefit Year (also known as "Excess Fringe Benefit-Date" ) (BMF ONLY)
  1. The Excess Fringe Benefit Year is found in Item U (Section 01), Page 1, Form 3413. This is also located on Line 25 ("Excess Fringe Benefit-Date" ) of Form 3552.

  2. The following EXCESS-FRINGE-BENEFIT-Date field, if present, should be validated in the following order.

    1. Valid for BMF Only.

    2. MFT-CD must be 76.

    3. Excess-FRINGE-BENEFIT-DATE must be numeric and in the range 1 through 12.

    4. Month/Day configuration must be valid in the Month-Day-Table.

    5. If EXCESS-FRINGE-BENEFIT-DATE is before 01/01/1969 or is after the process date, it will be invalid.

  3. If the EXCESS-FRINGE-BENEFIT-Date is not present, BUT:

    1. the Abstract Number 201 is in Section 36 through 39,

    2. Transaction Code 150 is in Section 01 through 15,

    3. Master File System Code is "2" (BMF),

    4. the Format Code equals Form 3552(i.e., "325" , "326" , or "347" ), and,

    5. MFT equals 76,

    6. Field 01-S will appear invalid, if the EXCESS-FRINGE-BENEFIT-Date is not present, BUT the conditions described in (a) through (e) (above) are.

Field 01-T, REVERSION DATE/DATE OF TRANSFER (Valid for BMF Only)
  1. The Reversion Date is found in Item O (Section 01), Page 1, Form 3413. It is located on Line 26 ("Reversion Date" ) of the Form 3552.

  2. The following Reversion Date/Date of Transfer field, if present should be validated in the following order.

    1. Valid for BMF Only.

    2. MFT-CD must be 76 or 17 (Date of Transfer).

    3. REVERSION-DATE/DATE OF TRANSFER must be numeric.

    4. Month of REVERSION-DATE/DATE OF TRANSFER must be in the range of 1 through 12.

    5. Month/day configuration must be in the MONTH-DAY-TABLE.

    6. If MFT 76 (REVERSION-DATE) cannot be before 12/31/1984 (i.e., December 31, 1984).

    7. If MFT 17 (DATE OF TRANSFER) cannot be before 12/31/2005 (i.e., December 31, 2005).

  3. If the Reversion Date is not present, BUT:

    1. the Abstract Number 204 is in Section 36 through 39,

    2. Transaction Code 150 is in Section 01 through 15,

    3. Master File System Code is "2" (BMF),

    4. The Format Code equals Form 3552(i.e., "325" , "326" , or "347" ), and,

    5. MFT equals 76,

    6. Field 01-T will appear invalid, if the Reversion Date is present, BUT the conditions described in (a) through (e) (above) are.

Field 01-U, PLAN-YEAR-ENDING DATE (Valid for BMF Only)
  1. The Plan Year Ending Date is found in Item S (Section 01), Page 1, Form 3413. It is located on Line 27 ("Plan Year Ending" ) of the Form 3552.

  2. The following PLAN-YEAR-ENDING field, if present should be validated in the following order.

    1. Valid for BMF Only.

    2. MFT-CD must be 76 or 74.

    3. PLAN-YEAR-ENDING must be numeric.

    4. Month of PLAN-YEAR-ENDING is in the range of 1 through 12.

    5. PLAN-YEAR-ENDING is not before 198412 (i.e., December 1984) for MFT 76 and is not before 199101 (i.e., January 1991) for MFT 74.

  3. If the Plan Year Ending Date is not present, BUT:

    1. the Abstract Number is (either) 163, or 226, or 205 in Section 36 through 39, and

    2. Transaction Code 150 is in Section 01 through 15, and

    3. Master File System Code is "2" (BMF), and

    4. the Format Code equals Form 3552(i.e., "325" , "326" , or "347" ), and

    5. MFT equals 76,

    6. Field 01-U will appear invalid, if the Plan Year Ending Date is present, BUT the conditions described in (a) through (e) (above) are.

Field 01-V, 4980 F-AMENDMENT-DT (Valid for BMF Only)
  1. The 4980F Amendment Date is found in Item V (Section 01), Page 1, Form 3413. It is located on Line 28 ("4890F Amendment Date" ) of the Form 3552.

  2. The following 4980 F-AMENDMENT-DT field, if present, should be validated in the following order.

    1. Valid for BMF - MFT-CD must be 76.

    2. 4980 F-AMENDMENT-DT must be numeric.

    3. Month of 4980 F-AMENDMENT-DT must be in the range of 1 through 12.

    4. Month/day configuration must be in the MONTH-DAY-TABLE.

    5. If 4980 F-AMENDMENT-DT is not before 12/31/1984 (i.e., December 31, 1984).

  3. If the 4980F Amendment Date is not present, BUT:

    1. the Abstract Number is 228 in Section 36 through 39, and

    2. Transaction Code 150 is in Section 01 through 15, and

    3. Master File System Code is "2" (BMF), and

    4. the Format Code equals Form 3552(i.e., "325" , "326" , or "347" ), and

    5. MFT equals 76,

    6. Field 01-V will appear invalid, if the 4980F Amendment Date is present, BUT the conditions described in (a) through (e) (above) are.

Field 01-W, F8288 Transfer Date (also referred to previously as "DATE-OF-TRANSFER" )
  1. The F8288 Transfer Date is found in Item T (Section 01), Page 1, Form 3413. It is located on Line 29 ("Form 8288 Date of Transfer (MFT 17 only)" ) of the Form 3552.

  2. The following DATE-OF-TRANSFER FIELD, if present, should be validated in the following order.

    1. MFT-CD must be 17.

    2. DATE-OF-TRANSFER must be numeric.

    3. Month must be in the range of 1 through 12.

    4. Month/ Day configuration must be in the MONTH-DAY-TABLE.

    5. Cannot be before 12/31/2005 (i.e., December 31, 2005).

Field 01–X - BMF TIN (Form 3552 Only)
  1. The BMF TIN (Taxpayer Identification Number) MUST contain 9 digits and MUST always be displayed with a Q/P/J (Quick, Prompt, Jeopardy) 240 Assessment when inputting a Form 2859 for civil penalty 240 reference number 618 into Automated Manual Assessments (AMAs). Correct any transcription errors.

    Note:

    Require the BMF TIN from the "Remarks" section of the Form 2859 and display the information on the Form 3552. ISRP must transcribe the BMF TIN to display on IDRS.

  2. It can not be all zeroes (0) or all nines (9).

  3. IMF (Individual Master File) and IRAF (Individual Retirement Account File) documents will contain social security numbers (SSNs).

    Note:

    The IRAF (as a separate Master File) was retired in 2004. All references to "MFT 29" are what were previously referred to as IRAF.

  4. BMF documents will have a 9–digit taxpayer identification number which can be a Social Security Number (SSN) or an Employer Identification Number (EIN).

    1. SSNs—MFT 51 (Form 709, United States Gift Tax Return), and MFT 52 (Form 706, U.S. Estate Tax Return), will always have an SSN.

    2. MFTs 46, 58, and 78 with a TIN Type (Field 01–K) of "0" will have an SSN. (See Figure 3.12.21-12.) If the TIN Type is blank, the TIN is an EIN.

    3. EINs—must be all numeric and the first two digits may not be 00, 07 through 09, 17 through 19, 28, 29, 49, 78, 79, or 89.

Section 02 Through 19

  1. This section provides descriptions of the fields and correction procedures for Sections 02 through 19 of the register.

Sections 02 Through 19 - Fields A Through I Description

  1. Listed below are the fields contained in Sections 02–19.

  2. The alpha field designators, field lengths (maximum length for variable fields) and field titles are shown below.

    Field Field Length (+/−) Field Title
    02–19A/D/G 8   Transaction Date
    02–19B/E/H 3   Transaction Code
    02–19C/F/I 12 +/− Transaction Amount
  3. Each section within sections 02 through 19 is made up of groups of three items. Each group consists of a transaction code, transaction date and transaction amount. A group is considered significant when at least one field in the group is present. The document will appear on the error register if all the required fields Transaction Code and Transaction Date in a group are not present when one field is present.

  4. When deleting a section, move the data to the smallest numbered section available and delete the highest.

    1. On the error register, edit the data from the current field to the appropriate corresponding field(s) in the smallest numbered section available.

    2. Enter an Action Code "6" to the left of that section to alert ISRP operators this information is being added to the section.

    3. Enter an Action Code "4" to the left of the (higher numbered) section from which the data was moved. This will inform ISRP operators to delete the section.

    (See Figure 3.12.21-21.)

    Note:

    For Form 3552ONLY Sections 02–16 are valid.

    Figure 3.12.21-21

    This is an Image: 33670021.gif
     

    Please click here for the text description of the image.

Correction Procedures—Sections 02–19

  1. This section describes field validity criteria and correction procedures for all fields in Section 02 through 19.

Section 02–19 - Fields A, D, and G - Transaction Date
  1. These fields must be all numeric and if present, must contain eight numerics.

  2. The Month of the Transaction Date is not in the range of 01 through 12.

  3. The transaction date may not be later than the current processing date and not earlier than the earliest date allowed.

  4. On the correction run, a date earlier than the earliest date allowed is valid but it cannot be before the following dates.

    1. For BMF—1961–12–01 (i.e., December 1, 1961)

    2. For IMF—1962–12–01 (i.e., December 1, 1962)

    3. For IRAF—1976–01–01 (RAW PASS), 1962–12–01 (CORR)

      Note:

      The Individual Retirement Account File (as a separate Master File) was retired in 2004. All references to "MFT 29" are what were previously referred to as IRAF.

  5. If date is blank and TC is a penalty or additional tax, use the date from Field 01–F.

  6. If all Transaction Dates were correctly input from the document and are valid for the allowable dates listed in (4), use Action Code 7 to clear the register.

  7. If a valid transaction date cannot be determined, reject using Action Code 3. Attach Form 4227/Form Form 10886 and notate "invalid transaction date" .

    Exception:

    BMF MFT 51, 58, 60, 61, 62, 63, and 64 have no restrictions on the earliest valid date on the correction run. Use Action Code 7 to clear the register.

  8. If all Transaction Dates were correctly input from the document and are valid for the allowable dates listed in (4), use Action Code 7 to clear the register.

Section 02–19 - Fields B, E, and H - Transaction Codes
  1. These fields will be invalid if they do not contain a transaction code (TC) that is valid for the doc code, MFT, and section number being processed. See Exhibit 3.12.21-5 through Exhibit 3.12.21-7.

  2. Fields B, E, or H will appear invalid if more than one TC 150 is present in the document. Correct as follows:

    1. Compare the document and the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3, Notate on Form 4227/Form 10886, "two TC 150s present" .

  3. The transaction codes and their corresponding transaction amount must be compatible.

  4. For every transaction code 402 there must be a corresponding TC 400 with the transaction date and transaction amount of the same value. Correct as follows:

    1. Compare the document and the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3. Notate on Form 4227/Form 10886, "TC 402 without TC 400 Present" .

  5. If TCs 630, 632, 636 or 637 appear in this section, move the TCs to section 20 in accordance with the requirements for that section.

  6. If fields A, B and C have entries, Fields D, E and F are blank, and Fields G, H, and I have entries, an asterisk will print before the blank fields. Correct by moving the data, leaving no blank intervening fields or sections. (See Figure 3.12.21-22.) Move entries from Fields G, H, and I into Fields D, E, and F, and delete Fields G, H, and I.

  7. If IMF record and TC 450 is present and tax period is 197512 or later, this is an invalid condition.

    Figure 3.12.21-22

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    Please click here for the text description of the image.

  8. If there is any TC 340/341 in Sections 02–19, dated 01/01/1991 (i.e., January 1, 1991) or later, there must be an equal number of TC 340/341s in Sections 30–33. If they are not present in an equal number, all TC 340/341 in Sections 02–19 and 30–33 and their related date and money amount fields will asterisk if the date is after 01/01/1991. Compare the register to the document and if you can determine the problem, correct. If not, reject to the originator for resolution using Action Code 3. Attach Form 4227 /Form 10886 and send to originator, notating, "please verify transaction codes" .

    Note:

    For Form 3413 only.

  9. The Interest Computation Date (Field 01–Q) is checked against Transaction Codes 290, 294, 295, 298, 299, 300, 304, 308, 309 in Sections 01 through 19.

    Note:

    This applies only to Form 3552 (Doc Code 51) and BMF and IMF. The program will bypass this check if the Interest Computation Date (Field 01–Q) is invalid.

  10. When Transaction Codes 290, 295, 298, 299, 300, 304, 308, 309 are present in Sections 01 through 19, the Interest Computation Date (Field 01–Q) must be present. If any of Transaction Codes 294, 295, 298, 299, 304, 308, and 309 are present, but Field 01–Q (Interest Computation Date) contains no entry, Fields B, E, H (Sections 01–19), and Field 01–Q will error code. To correct:

    1. Compare the document (Form 3552) and register.
      Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3. Notate on Form 4227/Form 10886, "Transaction Codes (TCs) are present without an Interest Computation Date" .

  11. If a TC 290 or TC 300 is present with none of the Transaction Codes (TCs) 294, 295, 298, 299, 304, 308 and 309 Fields B, E, H, Field 01–Q (the Interest Computation Date) and all of the corresponding TC fields will error code. To correct:

    1. Compare the document (Form 3552) and the register.
      Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3. Notate on Form 4227/Form 10886, "Needs one of the following (TC 294, 295, 298, 299, 304, 308, or 309) present with TC 290 or TC 300" .

  12. If more than one of these transaction codes (294, 295, 298, 299, 304, 308 and 309) are present, Field 01–Q and the corresponding TC fields will error code. To correct:

    1. Compare the document and the register.
      Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3. Notate on Form 4227/Form 10886, "Interest Computation Date is present with more than one of the Transaction Codes (TCs 294, 295, 298, 299, 304,308, and 309)" .

  13. If a TC 294 or TC 298 is present with more than one TC 290 (or any TC 300) in Section 01 through 19, Field 01–Q, and the corresponding transaction code fields will error code.
    To correct:

    1. Compare the document (Form 3552) and the register.
      Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3. Notate on Form 4227/Form 10886, "TC 294 or TC 298 is present with more than one TC 290 (or (any) TC 300)" .

  14. If a TC 304 or TC 308 is present with more than one TC 300 (or any TC 290) in Section 01 through 19, Field 01–Q, and the corresponding transaction code fields will error code.
    To correct:

    1. Compare the document (Form 3552) and the register.
      Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3. Notate on Form 4227/Form 10886, "TC 294 or TC 298 is present with more than one TC 290 (or (any) TC 300)" .

  15. If any Transaction Code 294, 295, 298, 299, 304, 308, OR 309 is present in Section 01 – 19, but the Interest Computation Date (Field 01–Q) is NOT present, Field 01–Q and the corresponding transaction code fields will error code.
    To correct:

    1. Compare the document (Form 3552) and the register.
      Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3. Notate on Form 4227/Form 10886, "Transaction Codes are present without an Interest Computation Date" .

  16. The program will check Credit Transaction Codes 291, 295, 299, 301, 309 (Sections 02–19) against Debit Transaction Codes 290, 294, 295, 298, 299, 300, 304, 308, 309 in Sections 01 through 19 for valid Tax Liability/Carryback combinations.

    Note:

    This applies only to Form 3552 (Doc Code 51) and BMF and IMF. The program will bypass this check if IRAF (MFT 29), if any Transaction Code Error Indicators in Sections 01 through 19 are set, if the Interest Computation Date 01–Q is invalid, or if the Computer Date Error Indicator is set.

  17. If more than one of these (credit) transaction codes (291, 295, 299, 301, and 309) is present, the corresponding TC fields will error code. To correct:

    1. Compare the document and the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3, Notate on Form 4227/Form 10886, "More than one of the credit transaction codes (TCs) is present" .

  18. There must be one debit TC for every credit TC. If none, or more than one of these debit TCs 290, 294, 298, 300, and 308 is present, the credit TC and all corresponding (debit) TC fields will error code. To correct:

    1. Compare the document and the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3.

    3. If none of the debit TCs is present, notate on Form 4227/Form 10886, "None of the debit TCs is present" .

    4. If there are more than one of the debit transaction codes present, notate on Form 4227/Form 10886, "More than one of the debit TCs are present" .

  19. If Transaction Code 298 is present for IMF, it will error code if used with other tax and interest transaction codes. Otherwise, it is the same as a TC 290.

    1. Compare the document and the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3.

    3. If there are none of the debit transaction codes are present, notate on Form 4227/Form 10886, "TC 298 is present for IMF with other tax and interest TCs"

    `

  20. If any transaction code combination is not found in the Tax Liability Carryback Transaction Code Table (see below), both the credit and debit will error code. To correct:

    1. Compare the document (Form 3552) and the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3. Notate on Form 4227/Form 10886, "Combination is not found in the Tax Liability Carryback Transaction Code Table" .

    Tax Liability Carryback Transaction Code Table - Debit Transaction Code with Credit Transaction Code

    (Debit) (Credit)
    290 295
    290 299
    294 291
    298 291
    300 309
    308 301

     

Section 02–19 - Fields C, F, and I - Transaction Amount
  1. These fields will be invalid if the amount is signed positive and the related transaction code is not a debit or if the amount is signed negative and the related transaction code is not a credit.

  2. Compare the document and the register. Correct any transcription errors.

  3. If the document is correct as transcribed, reject the record, using Action Code 3.

  4. Notate on Form 4227/Form 10886, "Transaction Amount error" .

Sections 20 Through 23 - Form 3413

  1. This section provides descriptions of the fields and correction procedures for Section 20 through 23 (Form 3413).

Sections 20 Through 23 - Fields A Through L Description

  1. Listed below are the fields contained in Sections 20 through 23.

  2. The alpha field designator, field length (maximum length for variable fields) and the field title is shown below:

    Field Field Length (+/−) Field Title
    20–23A/E/I 3   Transaction Code
    20–23B/F/J 2   Appropriation Code
    20–23C/G/K 1   Appropriation Indicator
    20–23D/H/L 12 +/− Transaction Amount
  3. Sections 20 through 23 contain transaction codes, appropriation codes, appropriation indicators and transaction amounts. The valid MFT codes for Form 3413 are 02, 05, 08, 17, 30, 31, 33, 34, 35, 46, 65, 85, and 86.

  4. For each transaction, the transaction code, appropriation code, and the transaction amount must be present.

  5. This section will appear invalid if a significant group of fields follows an insignificant (blank) group of fields or if the first group of fields is not present.

Correction Procedures - Sections 20 Through 23

  1. This section provides descriptions of the fields and correction procedures for Section 20 through 23 of the register.

Section 20 Through 23 - Fields A, E, and I - Transaction Codes
  1. The valid debit codes are TC 632 and TC 637.

  2. The valid credit codes are TC 630 and TC 636.

  3. TC 630 and TC 632 are valid only for Doc Code 51 and 52, MFT 02, 05, 08, 17, 30, 31, 33, 34, 46, 85, and 86.

  4. TC 636 and TC 637 are valid only for Doc Code 52, MFT 02, 05, 08, 30, 31, 33, 34, 46, 85, and 86.

  5. The transaction code fields will appear invalid along with the appropriation code fields if the transaction code is 630 or 636 and the appropriation code is other than 02 or the transaction code is 632 or 637 and the appropriation code is other than 03. (See Figure 3.12.21-23.)

    Figure 3.12.21-23

    This is an Image: 33670023.gif
     

    Please click here for the text description of the image.

    1. Compare the document with the register. Correct any transcription errors.

    2. If the transaction code is 630 or 636, change Field 20B/F/J to 02.

    3. If the transaction code is 632 or 637, change Field 20B/F/J to 03.

    4. If there is a notation on the document not to alter any information, reject with Action Code 3. Use Form 4227 /Form 10886 and route to originator; notate "Doc not to be altered (per doc notation); validate Transaction Code and Appropriate Code"

  6. The transaction code fields will appear invalid along with the tax period field (Field 01-D) if the transaction code is TC 630 or TC 632 and MFT is 46, 85, or 86 and tax period is before 198412 (i.e., December 1984).

  7. The transaction code fields will appear invalid along with the tax period field (Field 01-D) if the transaction code is TC 630 or TC 632, the MFT is 08, and tax period is before 200412 (i.e., December 2004).

  8. The transaction code fields will appear invalid along with the tax period field (Field 01-D) if the transaction code is TC 630 or TC 632, the MFT is 17 and the tax period is before 200512 (i.e., December 2005).

  9. The transaction code fields will appear invalid along with the tax period field (Field 01-D) if the transaction code is TC 630 or TC 632, the MFT is 17 and the tax period is before 197810 (i.e., October 1978) or after 198011 (i.e., November 1980).

  10. The transaction code fields will appear invalid, along with the tax period field (Field 01-D) if the transaction code is TC 636 or 637, the tax period is before 197810 (i.e., October 1978) or after 198011 (i.e., November 1980).

  11. The transaction code fields and the Appropriations Code fields will appear invalid, if the transaction code is TC 630, TC 632, TC 636, or TC 637, the Appropriations Code is present, and the Doc Code is 52.

    1. Compare the document with the register. Correct any transcription errors.

    2. If the tax period was transcribed correctly and is invalid, reject the register with Action Code 3. Use Form 4227/Form 10886 and route to originator; notate "Tax Period invalid with Trans Code and Appropriation Code"

  12. If any transaction code valid for Sections 02–19 is input in Section 20, move the transaction code to the correct section.

Sections 20 Through 23 - Fields B, F, and J - Appropriation Codes
  1. The valid appropriation codes are 02 and 03.

  2. Appropriation Code 02 or 03 must be present when the transaction code field is present.

  3. If an appropriation code is not present, or is invalid enter 02 for a credit or 03 for a debit.

Sections 20 Through 23 - Fields C, G, and K - Appropriation Indicator
  1. This field may be "1" or blank when the related fields are present.

  2. If the indicator is blank, the transaction amount will be included in the math verification for the "CGA" field.

  3. If the appropriation Indicator is "1" , the transaction amount will not be included in the math verification.

Sections 20 Through 23 - Fields D, H, and L - Transaction Amounts
  1. This field must be present for each appropriation transaction code.

  2. The amount is included for math error computation when the related Appropriation Indicator is blank, and excluded when the indicator is "1" .

  3. The transaction amount must match (debit or credit) the related transaction code.

  4. If the transaction amount does not match (debit or credit) the related transaction code, do as follows:

    1. Compare the document and the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record, using Action Code 3.

    3. Notate on Form 4227/Form 10886, "Transaction Amount does not match the related transaction code" .

Sections 30 Through 33 (Valid only for Form 3413)

  1. This section provides descriptions of the fields and correction procedures for Section 30 through 33 (Fields A through I) of the register.

Sections 30 - Through 33 Procedures - Fields A Through I Description

  1. Listed below are fields contained in Sections 30 through 33.

  2. The alpha field designator, field length (maximum length for variable fields) and the field title is shown below:

    Field Field Length Field Title
    30–33A/D/G 8 Status/Interest-to-Date
    30–33B/E/H 3 Status Transaction Code
    30–33C/F/I 8 Statute Extension Date
  3. These sections are valid only for Form 3413. If present for Form 3552, the sections will be coded extraneous.

  4. Sections 30 through 33 contain Status Dates/Interest-To-Dates, Status Transaction Codes, and Statute Extension Dates.

  5. Sections 30 through 33, Fields A, D, and G, Status Date/Interest-To-Date (formerly titled, "Status Transaction Date" ) have been serving a dual purpose since January 1, 1993.

    1. If the corresponding Transaction Code (Sections 30 through 33, Fields B, E, or H) is 340 or 341, the field must contain an Interest-To-Date. Refer to IRM 3.12.21.7.2.2 for correction procedures.

    2. If the corresponding Transaction Code is other than 340 or 341, the field will contain a Status Date. Refer to IRM 3.12.21.7.2.1 for correction procedures.

Correction Procedures - Sections 30 Through 33

  1. This section provides descriptions of the fields and correction procedures for Section 30 through 33 (Fields A, D, and G (Status Transaction) of the register.

Sections 30 Through 33 - Fields A, D, and G - Status/Interest-To-Dates
  1. This field must be all numeric and in YYYYMMDD format. The month must be 01–12, and the day must be 01–31.

  2. The Interest-To-Date is a required field when Transaction Codes 340 or 341 are present in Sections 30 through 33.

  3. If a Transaction Code 340 or 341 is present with a transaction date of 1991–01–01 (i.e., January 1, 1991) or later, a corresponding transaction code entry must be present in Section 02–19. The Section 02–19 entry will include an amount. They must be in the same physical order in both sections. If any of the required fields are missing, all present fields in those sections will be error coded, so that they may be corrected.

  4. Correct as follows:

    1. Check for transcription errors. If the date was incorrectly transcribed, correct it, using Action Code 6.

    2. If the correct Interest-To-Date cannot be determined, reject using Action Code 3. Use Form 4227/Form Form 10886 and route to originator; notate "Interest-to-Date cannot be determined"

    3. If Transaction Code 340 or 341 is present and the Interest-To-Date is missing, reject using Action Code 3. Attach Form 4227/Form 10886 and notate "invalid transaction date" .

    4. If Transaction Code 340 or 341 is present in Sections 30 through 33, but the required identical entry (as stated in paragraph (3) above) is missing, reject using Action Code 3. Use Form 4227/Form 10886 and route to originator; notate "TC 340/341 present, but, required transaction fields not present" .

Sections 30 Through 33 - Fields B, E, and H - Status Transaction Codes
  1. These fields are invalid if not one of the status transaction codes listed in Exhibit 3.12.21-5 through Exhibit 3.12.21-7. Certain codes are valid with certain MFT codes only as set forth in the applicable chart. If a transaction code is present, there must also be a status date.

  2. Fields E and H may be blank but must be present if their corresponding status date is present. If the transaction code in the input document is invalid, reject the record with Action Code 3. Use Form 4227/Form 10886 for contact with the preparer.

  3. TC 912 and TC 914 are valid only when both are present and only when they are present an equal number of times.

  4. TC 916 and TC 917 are valid only when both are present and only when they are present an equal number of times.

  5. TC 550, TC 560 and TC 564 are valid only once per document. If TC 550, TC 560 and TC 564 occur more than once in Sections 30 through 33, the duplicate transaction codes will appear invalid.

  6. TC 560 and TC 564 are not valid on the same record. If this occurs all the TC 560 and TC 564 will appear invalid.

  7. TC 550, TC 560, and TC 564 are not valid for IRAF (MFT 29).

  8. Correct as follows:

    1. Compare the document with the register. Correct any transcription errors.

    2. If the document is correct as transcribed and the data on the input document is incorrect, reject the record with Action Code 3. Use Form 4227/Form 10886 for contact with the originator; notate, "data on input document is incorrect" .

    3. If the Transaction Code is 340 or 341, a corresponding Interest-To-Date must also be present. If the Interest-To-Date is missing, reject using Action Code 3. Use Form 4227/Form 10886 for contact with the originator; notate, "data on input document is incorrect" .

    4. If the Transaction Code is 340 or 341, a TC 340 or 341 must exist in the same physical order in Sections 02 through 19. If not in the same physical order (disregarding TCs other than 340/341 in sections 02–19 and 30–33), reject using Action Code 3. Use Form 4227/Form 10886 for contact with the originator.

Sections 30 Through 33 - Fields C, F, and I - Statute Extension Dates (BMF and IMF only)
  1. The format for these fields is YYYYMMDD.

  2. The date must also meet the validity checks relative to month and day presented for the Status Transaction Dates, good until year 2099.

  3. A date must be present if the corresponding Status Transaction Code is 468, 469, 550, 560 or 564. These fields must be blank for all other status transaction codes. These Transaction Codes will be valid until year 2099.

  4. The Statute Extension Date must be later than the Status Date.

  5. This information is not valid for IRAF (MFT 29).

  6. Correct as follows:

    1. Compare the document with the register. Correct any transcription errors.

    2. If the document is correct as transcribed and the data on the input document is incorrect, reject the document with Action Code 3. Use Form 4227/Form 10886 for contact with the originator; notate, "data on input document is incorrect" .

Sections 30 Through 33 - Missing Field Groups
  1. If Fields A and B are printed, Fields D and E are blank, and Fields G and H are printed; an asterisk is printed before Fields D and E.

  2. Correct by entering the data, leaving no blank intervening fields or sections.

Sections 36 Through 39

  1. This section provides descriptions of the fields and correction procedures for Section 36 through 39 of the register.

Sections 36 Through 39 - Fields A Through F Description

  1. Listed below are the fields contained in Sections 36 through 39.

  2. The alpha field designator, field length (maximum length for variable fields) and the field titles are shown below:

    Field Field Length (+/−) Field Title
    36–39A/C/E/G* 3   Abstract Number
    36–39B/D/F/H* 12 +/− Abstract Amount
  3. Sections 36 through 39 contain Abstract/IRS Numbers and Abstract Amounts.

  4. Section 36 is valid for all master files.

  5. Section 37 is valid for BMF, MFT 03, 50, 61, and IRAF, MFT 29, 74, 76, 49.

  6. Section 38 is valid with MFT code 03, 50, and 61,74, 76, 49.

  7. Section 39 is valid only with MFTs 03 and 61, 74, 76, 49.

    Note:

    Fields 36–39/G and 36–39/H of Section 01 are valid for Form 3552only.

Correction Procedures - Sections 36 Through 39

  1. This section contains correction procedures for Sections 36 through 39.

Sections 36 Through 39 - Fields A, C, E, and G - Abstract/IRS Numbers
  1. An Asterisk is printed before the field if the Abstract/IRS Number is invalid. The valid Abstract/IRS Numbers are listed as follows:

    MFT-CD Abstract/IRS Number
    02 330 through 333
    03 009 through 024, 026 through 098, 101 through 125, 133, 136, 140, 291, 303 through 310, 322 through 324, 326 through 329, 340 through 390, 392 through 398, 411 through 437
    12 330, 333
    29 160, 162, 194, 195, 233, 235, 236, 237
    34 330 through 333
    44 330 through 333
    49 163, 164
    50 213, 214, 151 through 154, 182, 183, 234, 237, 238, 240
    61 001 through 009, 013 through 035, 040
    74 165, 167, 169
    75 165
    76 159, 161, 163, 164, 165, 167, 169, 200, 201, 203 through 205, 206, 209, 224 through 228, 237, 450, 451, 452.
    77 218
    78 217
    All MFTs except 15, 46, 77, 78, 85, 86 221, 222

    Note:

    * MFT 03 - Abstract Number 125 is valid for Tax Period 200803 and after. MFT 29 - Abstract Numbers 235 or 236 are valid for Tax Periods 200012 (i.e., December 2000) and greater. Abstract 237 is valid for Tax Period 200412 (i.e., December 2004) and after. MFT 50 - Abstract Numbers 151–154 cannot appear on the same record as 214, 182, 183. If this occurs, all Abstract Number fields that contain 214, 151–154, 182 or 183 will appear invalid. For Raw Processing, Abstract Numbers 182 and 183 (TC 150) may not appear on the same record. Abstract 234 is valid for Tax Period 199902 (i.e., February 1999) and greater. (See Figure 3.12.21-24.)

    Figure 3.12.21-24

    This is an Image: 33670024.gif
     

    Please click here for the text description of the image.

  2. Determine the correct Abstract/IRS Number from the Form 3413 or Form 3552.

  3. When there is no Abstract/IRS Number available on the input form, or the correct one cannot be determined, use the following Abstract/IRS numbers:

    1. For MFT Code 03, use abstract number 080.

    2. For MFT Code 29, use abstract number 160 or 162.

    3. For MFT Code 50, use abstract number 151.

    4. For MFT Code 61, use abstract number 006.

  4. Abstract numbers 221 and 222 may appear only once in a record and if one is present, the other must be present. If the abstract number is 221 or 222 the abstract amount must be greater than 0 or both the abstract number and the abstract amount will appear invalid.

  5. If the Abstract Number is 221 or 222 the transaction code must be 340 or 341 or the Abstract Number field will appear invalid.

  6. When there is a Net Tax Assessment associated with Transaction Codes 15X, 29X or 30X in Sections 01–19, there must be a valid abstract number other than 221 and 222.

  7. When Abstract is 227 there must a Transaction Code 290 or 300 in Section 01-19.

Sections 36 Through 39 - Fields B, D, F, and H - Abstract Amount
  1. These fields must be all numeric and have corresponding Abstract/IRS numbers.

  2. Determine the correct abstract amount from the input document and correct the error register.

  3. If the correct amount cannot be determined, reject using Action Code 3. Attach Form 4227/Form Form 10886 for contact with the originator.

Sections 36 Through 39 - Missing Field Groups
  1. Both items, abstract number and abstract amount must be present for each transaction group.

  2. An insignificant group (both items missing) indicates no further information in the section.

  3. Use Action Code 6 to fill or blank fields. Delete any unnecessary fields to the right of the last significant field.

Section 40 - Doc Code 51 Only

  1. This section contains field descriptions, correction procedures and related information for Section 40 (Document Code 51 only).

Section 40 - Fields A Through T Description

  1. Listed below are the fields contained in Section 40.

  2. The alpha field designator, field length (maximum length for variable fields) and the field title is shown below.

    Field Field Length (+/−) Field Title
    40A 13 + Adj. total of inc. tax withheld (Form 943, Form 945, & Form 941 -MFT 01- posted prior to 12/31/2004).
    40B 13 + Taxable Social Security Wages (Form 941, Form 943, Form 944 and Form 945) (also known as, Taxable FICA Wages Paid Amount (program))
    40C 13 + Taxable Social Security Tips (Form 941 and Form 944) (also known as, Taxable Tips Reported Amount (program))
    40D 13 +/- Taxable Medicare Wages and Tips (Form 941 and Form 944) (also known as, Taxable Hospital Insurance Benefits Wages (program))
    40E 13 + Additional Taxable Medicare Wages and Tips (Form 941)
    40F 13 + Exempt Wages/Tips Paid to Qualified Employees (Form 941, Form 943, & Form 944) (also known as Qualified Employer Exempt Wage/Tip Paid Amount)
    40G 13 +/- Section 3121Q Taxable Amount
    40H 13 +/- Fractions of Cents (Form 941)
    40I 13 +/- Current Quarter's Sick Pay Amount (Form 941) Form 944 Current Year's Adjustment (also known as, CURR-QTR's - Sick Pay (Form 941) Form 944 Current yrs. Adj. (program))
    40J 13 +/- Current Quarter's Tips and Group Term Insurance Adjustment (also known as, CURR-QTR- Tips and Group Term Life Insurance Adjustment (program))
    40K 13 +/- Qualified Small Business Credit - Form 8974 (Form 941, Form 943, and 944)
    40L 13 +/- Income Tax Withheld Adj. (Form 941 Current), Form 944 Prior Year) (i.e., Income Tax Withholding - Adjustment. (Form 941 (Current)), (Form 944 Prior Year) (program))
    40M 13 +/- SS and Med. Tax - Adj. (Form 941, Form 943, Form 944, & Form 945) (i.e., Social Security and Medicare Tax - Adjustment (Form 941, Form 943, Form 944 and Form 945))
    40N 13 +/- Special Additions to Federal Income Tax (Form 941 and Form 944)
    40O 13 +/- Special Additions to Social Security and Medicare Tax (Form 941 & Form 944)
    40P 13 +/- Total Income Tax Withheld from wages (Form 941 and Form 944) posted after 12/31/2004
    40Q 13 + Tips Deemed Wages (Sec 3121g)
    40R 13 +/- Total Backup Withhold Adj. (Form 945)
    40S 13 + Gross Income Paid (Form 1042)
    40T 13 +/- RR Retirement Tax Adj (Form CT-1)

Correction Procedures - Section 40

  1. If there is a field within Section 40 that is not valid for the MFT being processed, the individual field will asterisk. Use the following chart to validate the MFT and Section 40 field presence.

    Section 40 and MFT Code Table

    Field MFT Code
    40A 01, 11, 16
    40B 01, 11, 14, 16
    40C 01,14
    40D 01, 14
    40E 01, 11, 14, 16
    40F 01, 11, 14
    40G 01
    40H 01
    40I 01,14
    40J 01
    40K 01, 11, 14
    40L 01,14
    40M 01, 11, 14,16
    40N 01,14
    40O 01,14
    40P 01,14
    40Q 01,14
    40R 16
    40S 12
    40T 09

     

  2. If Section 40 is present, the MFT must be 01, 09, 11, 12, 14 or 16 on the Raw Data Run. It is not required on the correction run.

  3. If the input document is a Form 3413 and the tax class is "1" , this section should be present. If the section is not present or the required elements in the section are not present, review the input document and any attachments for the missing data.

    1. If the required data is found, enter the data on the register using Action Code 6.

    2. If the data is not found, enter Action Code 7 to the left of section 01.

    Note:

    If more than an occasional Form 3413 is received without this information, refer this matter to the error correction supervisor, who will contact his/her counterpart in the appropriate Function, in the Accounting Branch, to ensure the correct preparation of the Form 3413 in the future.

  4. Section 40 is valid when Field 01–G, Original Assessment Transaction Code, is 150, 290, 294, 298, 300, 304, or 308.

  5. IMPORTANT: The program is set up to validate the credit transaction codes against the debit transaction codes. If any of the following combinations in the following Tax Liability Carryback table is not found, then both the credit and debit transaction codes will be set to error. To correct:

    1. Compare the input document against the appropriate field on the register.

    2. Correct transcription errors, if any.

    3. Using the table below, compare the appropriate Debit/Credit combinations.

    4. If the required data is found, enter the data on the register, using Action Code 6.

    5. If the data is not found, enter Action Code 7 to the left of the section.

    Tax Liability Carryback Table - Debit Transaction Code with Credit Transaction Code

    Debit Credit
    290 295
    290 299
    294 291
    298 291
    300 309
    308 301

     

  6. This section is not valid with doc code 52 records. An extraneous section (#) will result if any data is present in Section 40. If the doc code is 52, delete Section 40 with Action Code 4.

Section 40 - Field Requirements - Fields A Through T
  1. Field 40–A—Adjustment Total of Income Tax Withheld (Form 943, Form 945, & Form 941- MFT 01- posted prior to 12/31/2004)

    1. This information is found under Item A (Section 40), Page 2, Form 3413 (also, Line 1, Form 3552 (Page 1)).

    2. This field is valid for MFT 01,11, and 16.

    3. On original input, this field, plus Field 40–B, Taxable Social Security Wages, and Field 40–O, Total Income Tax Withheld, must equal the net of all transaction codes 29X and 30X. If invalid or Math Error, Clear with Action Code 7.

  2. Field 40B—Taxable Social Security Wages (Form 941, Form 943, Form 944 and Form 945)

    1. This information is found under Item B (Section 40), Page 2, Form 3413 (also, Line 2, Form 3552 (Page 1)).

    2. This field is valid for MFT 01,11,14, and 16.

    3. If the doc code is 51, MFT is 01, 11, 14, or 16 and Field 40B equals zero, Field 40B will appear invalid. If invalid or Math Error, Clear with Action Code 7.

  3. Field 40C—Taxable Social Security Tips (Form 941 and Form 944)

    1. This information is found under Item C (Section 40), Page 2, Form 3413 (also, Line 3, Form 3552 (Page 1)).

    2. This field is valid for MFT 01 and 14.

    3. If invalid on another MFT, delete Field 40–C.

  4. Field 40D—Taxable Medicare Wages and Tips (Form 941 and Form 944)

    1. This information is found under Item D (Section 40), Page 2, Form 3413 (also, Line 4, Form 3552 (Page 1)).

    2. This field is only valid with MFT 01 and 14.

    3. If Field 40D is different from the amount on the form, strike through the entry on the register. Edit the correct amount above it and correct with Action Code 6.

    4. If Field 40D is correct as entered, accept with Action Code 7.

    5. If invalid on another MFT, delete Field 40–D.

  5. Field 40E—Additional Taxable Medicare Wages and Tips (Form 941, Form 943, Form 944, and Form 945)

    1. This information is found under Item E (Section 40), Page 2, Form 3413 (also, Line 5, Form 3552 (Page 1)).

    2. This field is only valid with MFT 01 (Form 941), MFT 11 (Form 943), MFT 14 (Form 944), and MFT 16 (Form 945).

    3. If Field 40E is different from the amount on the form, strike through the entry on the register. Edit the correct amount above it and correct with Action Code 6.

    4. If Field 40E is correct as entered, accept with Action Code 7.

    5. If invalid on another MFT, deleted Field 40E.

  6. Field 40F—Exempt Wages/Tips Paid to Qualified Employees (Form 941, Form 943, & Form 944)

    1. This information is found under Item F (Section 40), Page 2, Form 3413 (also, Line 6, Form 3552 (Page 1)).

    2. This field is only valid with MFT 01 (Form 941), MFT 11 (Form 943), and MFT 14 (Form 944).

    3. If Field 40F is different from the amount on the form, strike through the entry on the register. Edit the correct amount above it and correct with Action Code 6.

    4. If Field 40F is correct as entered, accept with Action Code 7.

    5. If invalid on another MFT, delete Field 40F.

  7. Field 40G—Section 3121Q Tax Amount

    1. This information is found on Item G (Section 40), Page 2, Form 3413 (also, Line 7 ("SECT 3121Q Tax Amt." ) of the Form 3552).

    2. This field is only valid with MFT 01 (Form 941).

    3. If invalid on another MFT, delete Field 40G.

  8. Field 40H—Fractions of Cents - Adjustment (Form 941)

    1. This information is found under Item H (Section 40), Page 2, Form 3413 (also, Line 8, Form 3552 (Page 1)).

    2. This field is only valid with MFT 01.

      Note:

      Currently, the program does not accept this item with MFT 14 (Form 944).

    3. If Field 40H is different from the amount on the form, strike through the entry on the register. Edit the correct amount above it and correct with Action Code 6.

    4. If Field 40H is correct as entered, accept with Action Code 7.

    5. If an amount is present in this field for MFT 11 use Action Code 7 to accept taxpayer information.

    6. If invalid on another MFT, delete Field 40H.

    7. REMINDER: This field is not valid for MFT 14. If Field 40H was deleted on Raw, but continues to loop with an asterisk (*), reject with Action Code 3. Attach Form 4227/Form 10886, notating, "Fraction of Cents - Adjustment is not valid for MFT 14 (Form 944)" .

  9. Field 40I—Current Quarter's Sick Pay (Form 941) Form 944 Current Year's Adjustment

    1. This information is found under Item I (Section 40), Page 2, Form 3413 (also, Line 9, Form 3552 (Page 1)).

    2. This field is valid with MFT 01 and 14.

    3. If invalid on another MFT, delete Field 40I.

      Note:

      Field 40I is positive and negative for Form 3552 ONLY.

  10. Field 40J—Current Quarter's Tips and Group Term Insurance Adjustment

    1. This information is found under Item J (Section 40), Page 2, Form 3413 (also, Line 10, Form 3552 (Page 1)).

    2. This field is only valid with doc code 51, MFT 01 (01 only prior to 199412).

    3. If invalid on another MFT, delete Field 40J.

      Note:

      Field 40J is positive and negative for Form 3552 and Form 3413.

  11. Field 40K—Qualified Small Business Credit - Form 8974(Form 941, Form 943 and Form 944)(NEW)

    1. This information is found under Item K (Section 40), Page 2, Form 3413 (also, Line 11, Form 3552 (Page 1)).

    2. This field is valid for MFT 01, MFT 11, and MFT 14.

    3. Valid tax periods are 201712 and later

    4. Valid transaction codes are 29X/30X.

    5. If invalid on another MFT, delete Field 40K.

  12. Field 40L—Income Tax Withheld Adjustment (Form 941 (Current)), Form 944 (Prior Year)

    1. This information is found under Item L (Section 40), Page 2, Form 3413 (also, Line 12, Form 3552 (Page 1)).

    2. This field is valid for MFT 01 and 14.

    3. If invalid on another MFT, delete Field 40L.

  13. Field 40M—SS and Med. Tax- Adj. ((Form 941, Form 943, Form 944 & Form 945) (Social Security and Medicare Tax - Adjustment (Form 941, Form 943, Form 944 and Form 945))

    1. This information is found under Item M (Section 40), Page 2, Form 3413 (also, Line 13, Form 3552(Page 1)).

    2. This field is valid for MFT 01,11,14 and 16.

    3. If invalid on another MFT, delete Field 40M.

      Note:

      Field 40M is positive and negative for Form 3552 ONLY.

  14. Field 40N—Special Addition to Federal Income Tax (Form 941 and Form 944)

    1. This information is found under Item N (Section 40), Page 2, Form 3413 (also, Line 14, Form 3552(Page 1)).

    2. This field is valid for MFT 01 and 14.

    3. If invalid on another MFT, delete Field 40N.

  15. Field 40O---Special Additions to Soc. Sec. and Med. Tax (Form 941 & Form 944)

    1. This information is found under Item O (Section 40), Page 2, Form 3413 (also, Line 15, Form 3552(Page 1)).

    2. This field is valid for MFT 01 and 14.

    3. If invalid on another MFT, delete Field 40O.

  16. Field 40P---Total Income Tax Withheld from wages (Form 941 and Form 944) posted after 12/31/2004

    1. This information is found under Item P (Section 40), Page 2, Form 3413 (also, Line 16, Form 3552 (Page 1)).

    2. This field is valid for MFT 01 and 14.

    3. If invalid on another MFT, delete Field 40P.

  17. Field 40Q---Tips Deemed Wages (Sec. 3121q)

    1. This information is found under Item Q (Section 40), Page 2, Form 3413 (also, Line 17, Form 3552 (Page 1)).

    2. This field is valid for MFT 01 and 14

    3. If invalid on another MFT, delete Field 40Q.

  18. Field 40R---Total Backup Withholding - Adjustment (Form 945)

    1. This information is found under Item R (Section 40), Page 2, Form 3413 (also, Line 18, Form 3552 (Page 1)).

    2. This field is valid for MFT 16.

    3. If invalid on another MFT, delete Field 40R.

  19. Field 40S---Gross Income Paid (Form 1042)

    1. This information is found under Item S (Section 40), Page 2, Form 3413 (also, Line 19, Form 3552 (Page 1)).

    2. This field is valid for MFT 12

    3. If invalid on another MFT, delete Field 40S.

  20. Field 40T---RR Retirement Tax Adjustment (Form CT-1)

    1. This information is found under Item T (Section 40), Page 2, Form 3413 (also, Line 20, Form 3552 (Page 1)).

    2. This field is valid for MFT 09.

    3. This field must be blank for all other MFTs. If invalid on another MFT, delete Field 40T.

Section 41 - Form 3552 only

  1. This section contains correction procedures and related information for Section 41 (Form 3552 only).

Section 41 - Fields A Through H Description

  1. Listed below are the fields contained in Section 41.

  2. The alpha field designator, field length (maximum length for variable fields) and the field title is shown below:

    Field Field Length (+/−) Field Title
    41A 13 + Total Taxable Form 940 Wages
    41A 13 + Total Taxable Form 940 Wages Computer
    41B 13 + Total Amount Credit Reduction
    41B 13 + Total Amount Credit Reduction Computer
    41C 2   State Code
    41D 12 + Credit Reduction Wages
    41E 2   State Code
    41F 12 + Credit Reduction Wages
    41G 2   State Code
    41H 12 + Credit Reduction Wages
  3. Section 41 must be present for Form 3552, Doc Code 51, if the tax class is 8, the MFT is 10 and there is either a TC 150, 29X or 30X. (See Figure 3.12.21-25.)

    Figure 3.12.21-25

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    Please click here for the text description of the image.

  4. This section must not be present for Form 3413.

  5. If an amount is present in Field 41–A, Total Taxable 940 Wages, there must be an entry in Field 41–C, State Code. Search the document for the valid entries for these fields. If valid entries cannot be located, reject the document with Action Code 3.

    Note:

    The "Taxable Total Wages" and the "State Code" information may be located in the bottom portion of Form 3552.

    Note:

    If a State Code cannot be found and you are rejecting the document, issue a Form 4227 (Intra-SC Reject or Routing Slip) or a Form 10886 (Reject Routing Slip) an notate on the form "need valid entry for Field 41-C (State Code)" .

  6. A state code may not occur more than once per document.

  7. There can be no spaces between groups of state codes and wages. Missing fields will appear invalid. Move the data to fill the spaces.

Correction Procedures - Section 41

  1. Field 01G, Transaction Code, and Field 41C, State Code, will appear invalid if the MFT is 10 and the transaction code in section 01 is other than 150. (See Figure 3.12.21-28.)

    Figure 3.12.21-26

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    Please click here for the text description of the image.

  2. Compare the document with the register and correct any transcription errors.

    Note:

    The Section 41 data (i.e., "Taxable 940 Wages" , "Total Amount C. R. (Credit Reduction)" , "State Code" and "Credit Reduction" (CR)) may be found in the bottom portion of the Form 3552.

  3. If correct as transcribed, and the transaction code is other than 150, reject with Action Code 3. Notate on Form 4227/Form 10886, "Must have TC 150 when Credit Reduction data is present" .

  4. If the transaction code is 150, Section 41 will asterisk (*) as missing if the MFT is 10, Doc Code 51, Form 3552, Tax Class 8 and Section 41 is blank. (See Figure 3.12.21-27.)

    Figure 3.12.21-27

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    Please click here for the text description of the image.

    1. Compare the document with the register. If the data is present on the document for section 41, correct the register with Action Code 6.

      Note:

      The Section 41 data (i.e., "Taxable 940 Wages" , "Total Amount C. R. (Credit Reduction)" , "State Code" and "Credit Reduction" (C.R.)) may be found in the bottom portion of the Form 3552.

    2. If the data is not present on the document for Section 41, verify that MFT, 01C is correct. If so, reject with Action Code 3.

    3. If Credit Reduction years, notate on Form 4227/Form 10886, 'Credit Reduction Data required'.

    4. If not Credit Reduction year, notate 'Taxable Futa Wages Required'.

  5. Section 41 will appear on the register as extraneous (#) if the MFT is other than 10 and there is data present in Section 41. (See Figure 3.12.21-28.)

    Figure 3.12.21-28

    This is an Image: 33670028.gif
     

    Please click here for the text description of the image.

    1. Compare the document with the register. Correct any transcription errors.

      Note:

      The Section 41 data (i.e., "Taxable 940 Wages" , "Total Amount C. R. (Credit Reduction)" , "State Code" and "Credit Reduction" (C.R.)) may be found in the bottom portion of the Form 3552.

    2. If the MFT is other than 10, delete Section 41 with Action Code 4.

  6. If Field 01–G is 150, and there is an entry in Field 41A and 41B, a valid Credit Reduction State and Credit Reduction Wages must be present. If missing, reject with Action Code 3 and enter the state code from entity in Field 41-C. Notate on Form 4227 /Form 10886, "Must have credit reduction state and/or wages amount."

  7. Field 41–B, Total Credit Reduction, is computed using the sum of Credit Reduction Wages in Sections 41–46, multiplied by the percentage shown for each state in Exhibit 3.12.21-9. This field will underprint if a math error exists. (See Figure 3.12.21-29.)

    Figure 3.12.21-29

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    Please click here for the text description of the image.

    1. Compare the document with the register. Correct any transcription errors.

    2. If correct as transcribed, reject with Action Code 3, and bring up underprint in Field 41–B. Attach Form 4227 /Form 10886 and send to the originator with notating, "Credit Reduction amount incorrect" .

    Note:

    If Field 41–B underprints, check to see if the amounts in Field 41–B and Field 41–D are in each other's field. Field 41–D will always be larger than Field 41–B. If they are, switch Field 41–B and Field 41–D. If Field 41–B re-underprints, either reject or send to Accounting.

  8. If Field 41B underprints and a State Code Field has an invalid credit reduction state, see Exhibit 3.12.21-9 to correct any transcription errors. If unable to determine the Credit Reduction State, reject with Action Code 3. Attach Form 4227/Form 10886 and send to originator notating, "Credit Reduction state invalid" .

  9. The State Code Field and Credit reduction Wages Field, will appear invalid if a valid credit reduction state is in the State Code Field, a TC 150 is in Section 01 and the Credit Reduction Wages field is blank. (See Figure 3.12.21-30.)

    Figure 3.12.21-30

    This is an Image: 33670030.gif
     

    Please click here for the text description of the image.

    1. Compare the document with the register. Correct any transcription errors.

    2. If correct as transcribed, search the document for valid credit reduction wages. If you cannot determine the valid credit reduction wages, reject the record with Action Code 3. Attach Form 4227 /Form 10886 and send to the originator with notation, "Credit Reduction info not determined" , for missing information.

  10. The State Code field and associated significant (greater than zero) Credit Reduction Wages field will error code if Transaction Code 150 is not present in Section 01. (See Figure 3.12.21-31.)

    Figure 3.12.21-31

    This is an Image: 33670031.gif
     

    Please click here for the text description of the image.

    1. Compare the document with the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record with Action Code 3. Attach Form 4227 /Form 10886 and send to the originator with notation, "Credit Reduction wages without TC 150" .

  11. Field 01–D, Tax Period, State Code field, and Credit Reduction Wages field (greater than zero) will appear invalid when there is no TC 150 in Section 01 and Credit Reduction Wages field is present; the State Code field is blank and Credit Reduction Wages field is present or an invalid credit reduction state for the tax period is present. (see Figure 3.12.21-32).

    Figure 3.12.21-32

    This is an Image: 33670032.gif
     

    Please click here for the text description of the image.

    1. Compare the document with the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject with Action Code 3. Attach Form 4227 /Form 10886 and send to the originator with notation, "Credit Reduction wages without TC 150 and other Credit Reduction information" .

Sections 42 Through 46 -Form 3552 only

  1. This section contains correction procedures and related information for use with Sections 42 through 46 (for Form 3552 only).

Sections 42 Through 46 - Fields A Through T Description

  1. Listed below are the fields contained in Sections 42 through 46.

  2. The alpha field designators, field lengths (maximum length for variable fields) and the field titles are shown below.

    Field Field Length (+/−) Field Title
    42–46A 2   State Code
    42–46B 12 + Credit Reduction Wages
    42–46C 2   State Code
    42–46D 12 + Credit Reduction Wages
    42–46E 2   State Code
    42–46F 12 + Credit Reduction Wages
    42–46G 2   State Code
    42–46H 12 + Credit Reduction Wages
    42–46I 2   State Code
    42–46J 12 + Credit Reduction Wages
    42–46K 2   State Code
    42–46L 12 + Credit Reduction Wages
    42–46M 2   State Code
    42–46N 12 + Credit Reduction Wages
    42–46O 2   State Code
    42–46P 12 + Credit Reduction Wages
    42–46Q 2   State Code
    42–46R 12 + Credit Reduction Wages
    42–46S 2   State Code
    42–46T 12 + Credit Reduction Wages
  3. A state code may not occur more than once per document.

  4. There can be no missing fields between groups of state codes and wages. Missing fields will appear invalid. Move the data to fill the spaces.

Correction Procedures -Sections 42 Through 46

  1. This section contains validity information and procedures for use in correcting Sections 42 through 46.

Sections 42 Through 46 - State Code Fields
  1. The valid State Codes are AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NY, NM, NV, NY, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VA, VI, VT, WA, WI, WV, and WY.

  2. The State Code field and Credit Reduction Wages field will appear invalid if the State Code field (see Exhibit 3.12.21-9) is blank and the Credit Reduction Wages field is present.

    1. Compare the document with the register. Correct any transcription errors.

    2. If the document is correct as transcribed, reject the record with Action Code 3. Attach Form 4227/Form 10886 and send to the originator with notation, "Credit Reduction wages present; State Code blank" .

    Note:

    The Section 42 data (i.e., "State Code" and "Credit Reduction" fields are found in the bottom portion of the Form 3552.

Sections 42 Through 46 - Credit Reduction Wages Fields

  1. The State Code field and Credit Reduction Wages field, will appear invalid if a valid credit reduction state (see Exhibit 3.12.21-9) is in the State Code field and the Credit Reduction Wages field is blank.

  2. Compare the document with the register. Correct any transcription errors.

  3. If the document is correct as transcribed, reject the record with Action Code 3. Attach Form 4227/Form 10886 and send to the originator with notation, "State Code field present; Credit Reduction Wages blank" .

Math Errors

  1. This section contains information and procedures for use with correcting math errors.

    1. Balance Transferred In-Field 01-I - Underprint - See IRM 3.12.21.12.1

    2. Abstract Math Error Net Assessment—Sections 36–39 See IRM 3.12.21.12.2 and IRM 3.12.21.12.3

    3. TC 29X–30X Net CGA—Math Error See IRM 3.12.21.12.4

Balance Transferred-In - Field 01–I - Underprint Amount

  1. A math error is indicated by printing the computer generated amount (CGA) under Field 01–I on the register.

  2. Compare all the amount fields in Sections 01–19 and Reference Amount on the register with the input document. Sections 20–23 are also included in the computation when the Appropriation Indicator is blank. This sum must equal Field 01–I.

  3. If a transcription error is found, correct the register with Action Code 6.

    Note:

    FIELD 01–I, BALANCE TRANSFERRED IN, MAY NOT BE CHANGED.

  4. If no transcription error is found in the amount fields, determine if the transaction codes agree with the sign accompanying the amount fields. Both the transaction code field and the amount field will appear invalid if the transaction code does not agree with the sign of the transaction amount field. The valid transaction codes for BMF, IMF and IRAF are listed in the Exhibits at the end of this IRM.

    1. If the sign of the transaction amount is in error, correct the register by entering a comma (,) for debit or a pound sign (#) for credit as field breakers.

    2. If the transaction code is in error, determine the correct code and correct the register.

  5. If the document has been prepared from an attached transcript, examine the transcript to determine if an error has been made in the preparation of the document.

    Note:

    IF TC 402 IS ON THE Form 3413 IN SECTION 01, MAKE THE PROPER CHANGES TO CORRECT THE PROBLEM.

  6. When any of the following transaction codes are invalid for the doc code being processed, they may be converted to the following equivalent valid transaction code.

    TC Convert To TC Convert To
    163 160 673 670
    166 160 706 700
    167 161 716 710
    176 170 736 730
    177 171 756 700
    186 180 768 764
    196 190 776 770
    197 191 777 771 (BMF)
    238 234 796 790
    239 235 806 800
    246 240 807 802
    276 270 836 830
    277 271 842 841
    286 280 846 840
    336 340 or 190 856 850
    337 341 876 850
    386, 388,389 Do not add    
    606 600 896 820
    613 610 897 822
    663 660    
    666 700    
    667 820    
  7. If no change is to be made to an amount, an amount sign, or transaction code, or if an amount is added and there is still a math error, using Action Code 3 and reject the document. Attach Form 4227/Form 10886 and send to Accounting for contact with the originator. Notate as follows: "Math error continues to appear; no obvious correction found" .

Abstract Math Error Net Assessment - Sections 36–39

  1. An Abstract Math Error will be located under the last Section present of the register.

  2. This math check is performed only if the Doc Code is 51, the MFT is 03, 29, 50, 61, 76, 77 or 78 and TC 15X, TC 29X or TC 30X is present in sections 01–19. Also refer to Exhibit 3.12.21-10 (TC 150 Abstract versus Tax Period Table) and Exhibit 3.12.21-11 (TC 290–30X Abstract versus Tax Period Table) and see Figure 3.12.21-33 for additional information.

  3. The computation is the sum of all the abstract amounts contained in Sections 36 through 39 except those amounts associated with Abstract Numbers 221 and 222.

  4. An abstract amount error is indicated by printing the computer generated net tax assessment amount, which is the sum of all TC 15X, 29X and 30X amounts in Sections 01–19, on the math error line of the register.

    Figure 3.12.21-33

    This is an Image: 33670033.gif
     

    Please click here for the text description of the image.

  5. If the Net Tax Assessment Computer Generated Amount is greater than zero (0), Sections 36–39 must contain an abstract amount other than those associated with Abstract Numbers 221 and 222.

Abstract Math Error Net Assessment - Sections 36–39 (Correction Procedures)

  1. Compare the document with the register. Correct any transcription errors.

  2. This math check is performed only if the Doc Code is 51, the MFT is 03, 29, 50, 61, 76, 77 or 78 and TC 15X, TC 29X or TC 30X is present in sections 01–19. Also refer to Exhibit 3.12.21-10 (TC 150 Abstract Versus Tax Period Table), Exhibit 3.12.21-11 (TC 290–30X Abstract Versus Tax Period Table) and Figure 3.12.21-33 for additional information.

  3. If the document was transcribed correctly or there are no abstract numbers and amounts present, add section 36 to the register, using the following abstract numbers, for the Net Tax Assessment Amount.

    1. Use Abstract 080 for Form 720, Quarterly Federal Excise Tax Return.

    2. Use Abstract 006 for Form 11, Special Tax Return and Application for Registry.

    3. Use Abstract 151 for Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC.

    4. Use Abstract 160 for Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.

  4. If the abstract amounts are present in Sections 36–39 and do not equal the net tax assessment, reject, using Action Code 3. Attach Form 4227/Form 10886 and send to Accounting for contact with the originator. Notate as follows: "Abstract amounts do not equal net tax assessment" .

TC 29X/30X Net–CGA - Math Error

  1. A TC 29X/30X Net–CGA Math Error will be located under the last section present on the register. (See Figure 3.12.21-34.)Also refer to Exhibit 3.12.21-10 (TC 150 Abstract versus Tax Period Table) and Exhibit 3.12.21-11 (TC 290–30X Abstract versus Tax Period Table) for additional information.

    Figure 3.12.21-34

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    Please click here for the text description of the image.

  2. The computation of TC 29X/30X Net–CGA is the sum of all Transaction Codes 29X and 30X in Sections 01 through 19. The Total Tax–CGA is the sum of Fields 40–M, Total Income Tax Withheld, 40–J, Adjusted Total Social Security Tax, and 40–O, Adjusted Total Backup Withholding.

    1. Compare the document with the register. Correct any transcription errors with Action Code 6.

    2. Raw input only: If the document is correct as transcribed, clear the register with Action Code 7.

    Note:

    If more than an occasional Form 3552 is received without this information, refer this matter to the Error Correction supervisor who will contact his/her counterpart in the Account Transfer Function, Accounting Branch, to ensure the correct preparation of Form 3552 in the future.

Valid Tax Periods

MFT-CD BMFTX/PRD END TX/PD EARLIEST DATE ALLOWED MM-LIMITS
01 196203 YYYY12 TAX-PRD minus 2 months 3, 6, 9, 12
02 196112 YYYY12 TAX-PRD minus 11 months 1-12
03 196203 YYYY12 TAX-PRD minus 2 months 3, 6, 9, 12
04 196203 199412 TAX-PRD minus 2 months 3, 6, 9, 12
05/06 196112 YYYY12 TAX-PRD minus 11 months 1-12
07 198712 YYYY12 TAX-PRD minus 11 months 12
08 200412 YYYY12 TAX-PRD minus 11 months 1-12
09 196203 197512 TAX-PRD minus 2 months 3, 6, 9, 12
09 197612 YYYY12 TAX-PRD minus 11 months 12
10/11 196112 YYYY12 TAX-PRD minus 11 months 12
12 198512 YYYY12 TAX-PRD minus 11 months 12
13 # 198012 YYYY12 TAX-PRD minus 11 months 12
14 200612 YYYY12 TAX-PRD minus 11 months 12
15 199012 YYYY12 TAX-PRD minus 11 months 12
16 199412 YYYY12 TAX-PRD minus 11 months 12
17 200512 YYYY12 TAX-PRD minus 11 months 1-12
33 196112 200611 TAX-PRD minus 11 months 1-12
34 196112 YYYY12 TAX-PRD minus 11 months 1-12
35, 65 201412 YYYY12 TAX-PRD minus 11 months 1-12
36 197012 YYYY12 TAX-PRD minus 11 months 1-12
37 197001 198712 TAX-PRD minus 11 months 1-12
37 198812 YYYY12 TAX-PRD minus 11 months 12
40 200401 YYYY12 TAX-PRD minus 11 months 1-12
43 201512 YYYY12 TAX-PRD minus 11 months 12
44 197001 YYYY12 TAX-PRD minus 11 months 1-12
46 198412 YYYY12 TAX-PRD minus 11 months 1-12
47 200007 YYYY12 TAX-PRD minus 11 months 1-12
49 200007 YYYY12 TAX-PRD minus 11 months 1-12
50 197001 YYYY12 TAX-PRD minus 11 months 1-12
51 196112 197012 TAX-PRD minus 11 months 12
51 197103 198112 TAX-PRD minus 2 months 3, 6, 9, 12
51 198212 YYYY12 TAX-PRD minus 11 months 12
52 000000 000000 12/01/1961  
58 197007 198009 TAX-PRD 1-12
60 * 195607 YYYY12 TAX-PRD 1-12
61 * 196206 198706 TAX-PRD 1-12
62 * 196206 198006 TAX-PRD 1-12
63 * 196206 YYYY12 TAX-PRD 1-12
64 * 196206 YYYY12 TAX-PRD minus 1 month 1-12
65 201412 YYYY12 TAX-PRD minus 11 months 1-12
67 197012 YYYY12 TAX-PRD minus 11 months 1-12
74 198412 YYYY12 TAX-PRD minus 11 months 1-12
75 1974 YYYY12 TAX-PRD minus 11 months 1-12
76 198412 YYYY12 TAX-PRD minus 11 months 1-12
77/78 198612 YYYY12 TAX-PRD minus 11 months 12
79 201409 YYYY12 TAX-PRD minus 11 months 1-12
85/86 198412 YYYY12 TAX-PRD minus 11 months 1-12

The following "bullets" are footnotes to various items contained in the above-referenced table:

  • * Bypass generating EARLIEST-DATE-ALLOWED on correction passes.

  • # Month range for MFT-CD 13 with Reference Number 565, 613, 643, 644, 648, 650, 655, 656, 657, 661, 676, OR 677 is 01 through 12.

  • MFT-CD 13 has to be calendar year with Reference Number 628.

    Note:

    Day in EARLIEST-DATE-ALLOWED is 01. YYYY in TX-PRD is equal to YEAR of PROCESS-DATE plus 1 year.

Valid Tax Periods Form 3413

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Valid Tax Periods Form 3552

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MFT and Tax Class Chart

BMF MFT/Tax Class Chart

BMF MFT FORM TAX CLASS BMF MFT FORM TAX CLASS
01 941 1 46 8038 3
02 1120 3 46 8038-CP 3
03 720 4 46 8038-G 3
04 942 1 46 8038-GC 3
05 1041 2 46 8038-T 3
06 1065 2 46 8328 3
07 1066 3 47 8871 4
08 8804 1 49 8872 4
08 8813 1 50 4720 4
09 CT-1 7 51 709 5
10 940 8 52 706 5
11 943 1 58 4638 4
12 1042 1 60 2290 4
13 8278 3 61 11 4
14 944 1 62 11-B 4
15 8752 2 63 11-C 4
16 945 1 64 730 4
17 8288 1 67 990 4
33 990C 3 74 5500 4
34 990T 3 75 8955-SSA 4
35 ----- 2 76 5330 4
36 1041A 4 77 706-GS(T) 5
37 5227 4 78 706-GS(D) 5
40 8849 4 85 8038-B 3
43 ----- 4 86 8038-TC 3
44 990PF 4      
 

IMF MFT/Tax Class Chart

IMF MFT FORM TAX CLASS IRMF MFT FORM TAX CLASS
30/31 1040 2 29 5329 0
30/31 1040A 2      
30/31 1040NR 2      
30/31 1040SS 2      
30/31 1040PR 2      
30/31 1040ES 2      
30/31 1040EZ 2      
30/31 8278 2      
35/65 ------- 2      
55 8278 (IMF) 2      
65 ------- 2      

Valid IMF Transaction Code Table

Valid IMF TRANS-CD

DB(+) CR(-) SECTION DOC-CD VALID MFT-CD
150   01 51, 52 30, 31
150   02-19 51, 52 30, 31, 55
160   01 51, 52 30, 31
160   02-19 51, 52 30, 31, 55
  161 02-19 51, 52 30, 31, 55
166 167 02-19 52 30, 31, 55
170   01 51, 52 30, 31
170   02-19 51, 52 30, 31, 55
  171 02-19 51, 52 30, 31, 55
176 177 02-19 52 30, 31, 55
190 191 02-19 51, 52 30, 31, 35, 55
196 197 02-19 52 30, 31, 35, 55
200 201 02-19 51, 52 30, 31, 55
240   01 51, 52 30, 31, 35
240 241 02-19 51, 52 30, 31, 35, 55
270   01 51, 52 30, 31
270   02-19 51, 52 30, 31, 55
  271 02-19 51, 52 30, 31, 55
272   30-33 51, 52 30, 31, 55
276 277 02-19 52 30, 31, 55
280   01 51, 52 30, 31
280   02-19 51, 52 30, 31, 35, 55
  281 02-19 51, 52 30, 31, 55
286   02-19 52 30, 31, 55
290   01 51, 52 30, 31, 35, 55
290 291 02-19 51, 52 30, 31, 35, 55
294   01 51, 52 30, 31
294   02-19 51, 52 30, 31
  295 02-19 51, 52 30, 31, 55
298   01 51, 52 30, 31
298   02-19 51, 52 30. 31, 55
299   02-19 51, 52 30, 31, 55
  299 02-19 51, 52 30, 31, 55
300   01 51, 52 30, 31, 35
300   02-19 51, 52 30, 31, 35, 55
  301 02-19 51, 52 30, 31, 35, 55
304   01 51, 52 30, 31
304   02-19 51, 52 30, 31, 55
  305 02-19 51, 52 30, 31, 55
308   01 51, 52 30, 31
308   02-19 51, 52 30, 31, 55
  309 02-19 51, 52 30, 31, 55
310 311 02-19 51, 52 30, 31, 55
 

Exhibit (Cont. 1) - Valid IMF TRANS-CD

DB(+) CR(-) SECTION DOC-CD VALID MFT-CD
320   01 51, 52 30, 31
320 321 02-19 51, 52 30, 31, 55
336 337 02-19 52 30, 31, 35, 55
340 341 02-19 51, 52 30, 31, 35, 55
340 341 30-33 51, 52 30, 31, 35, 55
342   30-33 51, 52 30, 31, 35, 55
350   01 51, 52 30, 31
350   02-19 51, 52 30, 31, 55
351   02-19 51, 52 30, 31, 55
360   01 51, 52 30, 31, 35
360   02-19 51, 52 30, 31, 35, 55
  361 02-19 51, 52 30, 31, 35, 55
380   02-19 51, 52 30, 31, 55
386   02-19 52 30, 31, 55
388   01 52 30, 31
388   02-19 52 30, 31, 55
  389 02-19 52 30, 31, 55
  400 02-19 52 30, 31, 35, 55
402   01 51 30, 31, 35, 55
402   02-19 52 30, 31, 35, 55
420 421 30-33 52 30, 31, 55
422 423 30-33 52 30, 31, 55
424   30-33 52 30, 55
425   30-33 52 30, 31, 55
  430 01 52 30
  430 02-19 51, 52 30, 55
450   01 51, 52 30, 31
450 451 02-19 52 30, 31, 55
460   30-33 51, 52 30, 31, 55
  462 30-33 52 30, 31, 55
470   30-33 51, 52 30, 31, 55
471 472 30-33 51, 52 30, 31, 35, 55
473   30-33 51, 52 30, 31, 55
474 475 30-33 51, 52 30, 55
480 481 30-33 51, 52 30, 31, 55
482 483 30-33 51, 52 30, 31, 55
490 496 30-33 51, 52 30, 31, 55
500 502 30-33 51, 52 30, 31, 55
 

Exhibit (Cont. 2) - Valid IMF TRANS-CD

DB(+) CR(-) SECTION DOC-CD VALID MFT-CD
510 516 30-33 51, 52 30, 31, 55
517   30-33 51, 52 30, 31, 55
520 521 30-33 51, 52 30, 31, 55
522   30-33 51, 52 30, 31, 55
530   30-33 51, 52 30, 31, 55
531 532 30-33 51, 52 30, 31, 55
535 534 02-19 51, 52 30, 31, 55
537   30-33 51, 52 30, 31, 55
540 542 30-33 51, 52 30, 31, 55
550 560 30-33 51, 52 30, 31, 55
570 571 30-33 51, 52 30, 31, 35, 55
572   30-33 51, 52 30, 31, 55
576 577 02-19 51, 52 30, 31, 55
582 583 30-33 51, 52 30, 31, 55
590   30-33 51, 52 30, 55
591 592 30-33 51, 52 30, 55
593 594 30-33 51, 52 30, 55
595   30-33 51, 52 30, 55
599   30-33 51, 52 30, 55
  600 02-19 51, 52 30, 31, 55
607 606 02-19 52 30, 31, 55
609 608 02-19 52 30, 31, 55
611 610 02-19 51, 52 30, 31, 55
612   02-19 51, 52 30, 31, 55
632 * 630 20-23 51, 52 30, 31
637 * 636 20-23 52 30, 31
641 640 02-19 51, 52 30, 31, 35, 55
642   02-19 51, 52 30, 31, 35, 55
661 660 02-19 51, 52 30, 31, 55
662   02-19 51, 52 30, 31, 55
667 666 02-19 52 30, 31, 55
671 670 02-19 51, 52 30, 31, 35, 55
672   02-19 51, 52 30, 31, 35, 55
681 680 02-19 51, 52 30, 31, 35, 55
682   02-19 51, 52 30, 31, 35, 55
691 690 02-19 51, 52 30, 31, 35, 55
692 694 02-19 51, 52 30, 31, 35, 55
695   02-19 51, 52 30, 31, 35, 55
701 700 02-19 51, 52 30, 31, 35, 55
 

Note:

Section 20-23 is marked as extraneous when Section is present with MFT Code 55.

Exhibit (Cont. 3) - Valid IMF TRANS-CD

DB(+) CR(-) SECTION DOC-CD VALID MFT-CD
702   02-19 51, 52 30, 31, 35, 55
  706 02-19 52 30, 31, 55
  710 02-19 51, 52 30, 55
712   02-19 51, 52 30, 55
716   02-19 52 30, 55
721 720 02-19 51, 52 30, 31, 35, 55
722   02-19 51, 52 30, 31, 35, 55
731 730 02-19 51, 52