3.12.37 IMF General Instructions

Manual Transmittal

October 27, 2017

Purpose

(1) This transmits revised IRM 3.12.37 Error Resolution, IMF General Instructions.

Material Changes

(1) Removed all obsolete IRM reference throughout the IRM

(2) Various editorial changes were made throughout the IRM

(3) Updated all tax periods and tax period references throughout the IRM

(4) Corrected and added descriptor tags throughout the IRM

(5) IRM 3.12.37.1 Added deviation instructions for this IRM

(6) IRM 3.12.37.2 Added program, objectives and scope of IRM 3.12.37

(7) IRM 3.12.37.3.2 Added additional IRM 21.5.1, General Adjustments, handling classified waste

(8) IRM 3.12.3.5 Updated related replies

(9) IRM 3.12.37.4 Added new control clerk duties

(10) IRM 3.12.37.4.1.1 Controlling transcription carts

(11) IRM 3.12.37.5 Added clerical letter input

(12) IRM 3.12.37.5.1 Batching correspondence

(13) IRM 3.12.37.6 Added new correspondence

(14) IRM 3.12.37.14. Removed command code list

(15) IRM 3.12.37.19.29.1 Updated UPC 162 RC 0 correction procedures

(16) IRM 3.12.37.28.3 Updated signature return procedures

(17) IRM 3.12.37.28.6.3 Updated Form 4442 referrals

(18) IRM 3.12.37.28.11 Added grace period for replies to correspondence

(19) IRM 3.12.37.28.11.1 Added CMODE command codes for all sites to use

(20) IRM 3.12.37.28.11.2 TC 971 AC 522 meaning = valid ID theft claim received

(21) IRM 3.12.37.28.13 Updated undeliverable instructions

(22) IRM 3.12.37.28.14 Updated late replies procedures

(23) IRM 3.12.37.29.7.1. Updated to use IATool for credit transfers

(24) IRM 3.12.37.30 Updated deleting documents

(25) IRM 3.12.37.29.5 Forms 1040NR/NR-EZ with a refund supported by a Form 1042-S will have that portion of the refund systemically frozen for up to 154 days.

(26) Removed UPC 147 RC 1 & 3 input as RESERVED

(27) Exhibit 3.12.37-1 Added new Acronyms

Effect on Other Documents

IRM 3.12.37, IMF General Instructions, dated January 1, 2017, is superseded. This IRM also incorporates the following IRM Procedural Updates (IPU): ,17U00258, 17U00918, 17U00919, 17U00919, 17U00921, 17U01628, 17U01640, 17U02115, 17U02171, 17U02171, 17U02241, 17U02467, 17U05025, 17U04458, 17U04258, 17U04252, 17U04050, 17U03991, 17U02845

Audience

IMF Error Resolution Departments, Submission Processing

Effective Date

(01-01-2018)

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

Deviations from the IRM

  1. Service Center Directors, Headquarter Branch Chiefs, and Headquarter Analysts do not have the authority to approve deviations from IRM procedures. Any request for an exception or deviation to an IRM procedure must be elevated through appropriate channels for executive approval. This will ensure that other functional areas are not adversely affected by the changes and that it does not result in disparate treatment of taxpayers.

  2. See guidelines in IRM 1.11.2, Internal Management Documents System, InternalRevenueManual(IRM)Process. Request for an IRM deviation must be submitted in writing and signed by the Field Director, following instructions from IRM

  3. 1.11.2.2.4

  4. Any disclosure issues will be coordinated by the Program Owner. No deviations can begin until they are reviewed by the Program Owner and approved at the Executive Level. All requests must be submitted to the Submission Processing Headquarters IRM Coordinator.

Program Scope and Objectives

  1. Purpose: This Internal Revenue Manual (IRM) provides instructions for correcting errors in Error Resolution System (ERS). The instructions are used to correct the validity, consistency or math computations during processing.

    1. This IRM also provides instructions for the control clerks to receive, sort, distribute returns, control registers, and input correspondence.

    2. This IRM also provides instructions for unpostable codes, payments and correspondence.

  2. Audience: This IRM is used by tax examiners and clerks in the five (5) Submission Processing sites.

  3. Policy Owner: The Director of Submission Processing

  4. Program Owner: Wage and Investment (W&I) Submission Processing (SP) is responsible for the procedures and all updates related to this IRM.

  5. Program Goals: The goals of the tax examiners and control clerks in Individual Master File (IMF) Rejects are to handle all returns and documents suspended from normal processing in a timely manner.

Introduction and General Procedures

  1. This manual contains general procedures for the following:

    • Control Clerks

    • Corrections of Error Resolution System (ERS)

    • Service Center Replacement System (SCRS)

    • Corrections of Suspense/Rejects

    • Reports to monitor and control inventories in the Input Correction Operation

    • Unpostable Codes and Correction Procedures

    • Procedures for the correction of specific tax returns or documents are contained in other Sections of the Internal Revenue Manual (IRM) 3.12.3, Error Resolution, Individual Income Tax Returns.

  2. General procedures are always overruled by the IRM for the specific form being worked, when there are differences. The purpose of Error Resolution is to ensure that the tax return posts accurately and correctly to the proper taxpayer's account, providing quality customer service to taxpayers. This IRM cannot address every possibility that may arise while correcting returns or documents. Taxpayer intent must be taken into consideration. In some cases, it may be necessary to refer the issue to your Subject Matter Expert (SME), lead and/or manager to determine the proper corrective action. Employees should exercise sound judgment when determining which Tax Payer Notice Codes (TPNCs) is the most appropriate to send, or when to correspond for clarification.

  3. Procedures for specific tax returns, documents and Error Codes are contained in Internal Revenue Manual (IRM) 3.12.3, Error Resolution, Individual Income Tax Returns.

General Explanation

  1. This manual contains instructions that apply to several different functions within the Input Correction and Document Correction Operation.

  2. 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.

  3. Subsections in this manual contain procedures applicable to several different functions. However, tax examiners and clerks are not expected to be knowledgeable regarding portions of this manual that clearly do not relate to their work functions.

    1. Control Clerk—Controls the inventory received into the Input Correction Operation from other areas. They also control and release inventory to other functions.

    2. ERS/SCRS—Returns or source documents that have failed validity, consistency or math computation and must be corrected via ERS or SCRS.

    3. Suspense/Rejects—Returns and documents are unprocessables and included as rejects.

      Note:

      Returns activated to be worked via the Error Resolution System (ERS) should be processed using IRM 3.12.2 & IRM 3.12.3 Individual Income Tax Returns and/or IRM 3.22.3 International ERS

    4. Reports—Designed to control and monitor inventories. Some reports are designed to monitor the performance of employees.

    5. Rejected Unpostable Returns - Certain unpostable returns will be forwarded to Rejects by the Unpostable function to be worked via ERS. These returns should be processed using the procedures in IRM 3.12.3.37.19, IRM 3.12.2, 3.12.3, IRM 3.12.179 and IRM 3.22.3.

Suspense/Rejects Conditions
  1. Work may be included in the suspense/rejects inventory for any of the following reasons:

    • Correspondence with the taxpayer is required to obtain missing information or Schedules/Forms

    • The return or document has been numbered incorrectly

    • The return requires review by another function

    • The return required additional research to determine the correct entity, filing status, FYM (fiscal year month), or filing requirements

    • The return must be reentered because of an incorrect Block Header or a program cut-off

    • The return should not have been processed

    • A previous examiner was unable to make the proper correction

    • The return is missing

    • The return was filed early (i.e., before the end of the tax period)

    • Nullified Unpostables

Related Manuals

  1. This subsection of the manual contains general error resolution procedures. To resolve math and consistency error conditions in Rejects, follow IRM 3.12.3 and IRM 3.22.3. To resolve other conditions in Rejects, follow the relevant IRM from the list below as appropriate.

    IRM TITLE
    2.3 IDRS Terminal Responses
    2.4 IDRS Terminal Input
    20.2 Interest
    3.10.72 Extracting, Sorting and Numbering
    3.10.73 Batching and Numbering
    3.11.3 Returns and Documents Analysis
    3.12.2 Individual Master File Error Resolution General Instructions
    3.12.3 Individual Income Tax Returns
    3.12.8 Information Returns Processing
    3.12.10 Revenue Receipts (ERS)
    3.12.21 Credit and Account Transfers (Miscellaneous Accounting)
    3.12.32 General Unpostables
    3.12.179 IMF Unpostable Resolution
    3.12.212 Applications For Extension of Time to File Tax Returns
    3.12.279 BMF/CAWR/PMF Unpostable Resolution
    3.13.122 Entity Control Unpostables For IMF and Revenue Receipts (Accounting)
    3.17.10 Dishonored Check File (DCF) and Unidentified Remittance File (URF)
    3.17.79 Accounting Refund Transactions
    3.17.220 Excess Collections File
    3.22.3 International ERS
    3.24.21 Credit and Account Transfers (ISRP)
    3.42.5 IRS e-File For Individual Income Tax Returns
    IRM 21.5.1 General Adjustments - handling classified waste
    Document 6209 IRS Processing Codes and Information
    Document 6548 IDRS Correspondex

Miscellaneous Related Forms

  1. This subsection of the manual contains a listing of the miscellaneous forms used in error resolution procedures. Refer below for a listing of these forms and their uses.

    MISCELLANEOUS FORMS DESCRIPTIONS
    Form 813 (2 part) - Document Register Used to list transaction amounts for remittance or assessment documents to be processed with a new Document Locator Number (DLN).
    Form 1332 - Block and Selection Record Used to process non remittance documents with a new DLN. It is usually prepared by the Numbering Unit. (Form 1332R is used for scannable documents).
    Form 2275 - Records Request, Charge and Recharge Used to request documents from Returns File Unit and Federal Record Center. It is also used to replace a document that is sent to Rejects when no Form 813 or Form 1332 is present. Use a single copy as a replacement.
    Form 3210 -Document Transmittal Used to transmit documents to be worked by other submission processing campus functions. These documents will normally be returned to Rejects to be corrected.
    Form 3244 - Payment Posting Voucher Used to post a remittance that cannot be processed with the document with which it was received.
    Form 3465 - Adjustment Request Form Used to request transfers of Credits by Accounts Management or other areas.
    Form 3471 - Edit Sheet Used by Code and Edit to edit ERS Section 02 data.
    Form 3499 - Informational Transmittal Used to transship International returns to AUSPC and BMF returns to Ogden
    Form 3531 - Correspondence Action Sheet Used when returning a tax return back to the taxpayer.
    Form 3696/3696A - Correspondence Action Sheet Used to initiate correspondence to the taxpayer through Integrated Data Retrieval System (IDRS) or Typing Unit.
    Form 3753 - Manual Refund Posting Voucher Used in Rejects to prepare Manual Refunds for Accounting
    Form 3893 - Reentry Document Control Used to reenter documents with original DLNs.
    Form 4028 - SCCF Adjustment Record Form Used by Accounting to remove, establish, and adjust records or money on the Service Center Control File (SCCF). For reject documents, Form 4028 is prepared by Rejects and routed to Accounting. At the option of the Submission Processing Campus Accounting Operation, Form 4028 may be bypassed in favor of direct input of SCCF adjustments using Command Code (CC) SCFAJ.
    4028-A - Service Center Control File Renumber Adjustment Record Used to delete a DLN from the SCCF and simultaneously establish a new DLN for the same count and amount.
    Form 4227 - Intra-SC Reject or Routing Slip Used by Document Perfection and Input Correction Tax Examiners to identify the reason for rejection or suspension.
    Form 4251 (Return Charge-Out) Used by various functions to charge out a document from a block.
    Form 4338 - Information on Certified Transcript Request Used to request copies of the unit ledger card for NMF subsequent and advance payments.
    Form 5792 - Request for IDRS Generated Refund Used in Rejects to prepare Manual Refunds
    Form 6001 - Letter 12C Correspondence Action Sheet Used to request missing information for IMF tax returns on IDRS.
    Form 6001–A - Letter 12 Correspondence Action Sheet (PY) Used to request missing information for IMF Prior Year tax returns on IDRS.
    Form 6114 - Prior Year and Conversion Form 1040 Edit Sheet Used to convert a Form 1040A/ 1040EZ return to a Form 1040 for transcription.
    Form 6752 - Return Non-Refile Flag Used to indicate document requests and IDRS research when a missing document record is being reconstructed or removed from the inventory.
    Form 6826 - Error/Reject Display Request Card Used to designate the print and sort requirements for SCRS error and reject registers and listings.
    Form 6882 - IDRS/Master File Information Request Used to alert the IDRS researcher of what research is to be conducted.
    Form 8161 - (ERS Returns Charge-Out) Used to charge out ERS returns on the New Suspense list, Rejected Records List, and Duplicate Document DLN Register. Input Correction will also use as a routing slip and history item.
    Form 8749 - Unpostable Action Routing Slip Used in Unpostables and Entity to identify reason for reject.
    Form 9856 - Attachment Alert Used to transmit return information to the Files Storage Area.
    Form 12857 - Refund Transfer Posting Voucher Used in Reject to process manually prepared refunds.
    Form 13900 - Letter 4087C Correspondence Action Sheet Used to request missing information for IMF tax returns on IDRS.
    Form 13975 - Letter 2894C/SP Correspondence Action Sheet Used to request missing information for IMF tax returns on IDRS.

IMF Forms

  1. The Error Resolution System (ERS) is a replacement for the Service Center Replacement System (SCRS). The Forms chart below contains a listing of the forms corrected on the terminal via ERS.

    FORMS DESCRIPTION
    1040 U.S. Individual Income Tax Return
    1040A U.S. Individual Income Tax Return
    1040-ES U.S. Declaration of Estimated Income Tax for Individuals
    1040EZ U.S. Individual Income Tax Return
    1040NR U.S. Nonresident Alien Income Tax Return (AUSPC Only)
    1040NR-EZ Nonresident Alien Income Tax Return (AUSPC Only)
    1040-PR U.S. Self-Employment Tax Return Puerto Rico (AUSPC Only)
    1040SS U.S. Self-Employment Tax Return-Virgin Island, Guam, American Samoa (AUSPC Only)
    4868 Application for Automatic Extension of Time To File U.S. Individual Income Tax Return

Related Reports

  1. The table below provide a list of related reports, the report title and IRM references. This is not an all inclusive list. It is intended to provide a basic point of reference. Go to Job Aid 2515–019 for more information.

    ERS REPORT NUMBERS DESCRIPTION IRM References for Report Usage
    CRX-0316 LETTER INPUT DATA FROM ILITS IRM 3.12.37.3.4
    ERS-00-40 ERROR RESOLUTION END OF YEAR INVENTORY REPORT  
    ERS-01-40 ERROR RESOLUTION AVAILABLE INVENTORY REPORT  
    ERS-01-41 ERROR LIST REPORT  
    ERS-01-42 PAS CHARGE-OUT FILE (Form 8161)  
    ERS-01-43 PROGRAM ANALYSIS SELECTION REPORT  
    ERS-01-44 ERROR RESOLUTION ELECTRONIC FILED RETURNS LIST  
    ERS-03-40 ERROR RESOLUTION UNSELECTED RECORDS INVENTORY IRM 3.12.347.10.4
    ERS-03-41 ERROR RESOLUTION SELECTION METHOD IRM 3.12.37.10.4
    ERS-05-40 ERROR RESOLUTION REJECTED RECORDS LIST IRM 3.12.37.21.2
    ERS-05-41 REJECTED-REC-CHARGE-OUTS  
    ERS-07-40 ERROR RESOLUTION UNWORKABLE SUSPENSE INVENTORY IRM 3.12.37.20.7
    ERS-07-41 ERROR RESOLUTION UNWORKABLE SUSPENSE INVENTORY SUMMARY IRM 3.12.37.20.6
    ERS-13-40 ERROR RESOLUTION ERROR INVENTORY IRM 3.12.37.2.3
    ERS-13-41 ERROR RESOLUTION ERROR INVENTORY SUMMARY IRM 3.12.37.2.3
    ERS-13-42 ERROR RESOLUTION WORKABLE SUSPENSE INVENTORY IRM 3.12.37.20.4
    ERS-13-43 ERROR RESOLUTION WORKABLE SUSPENSE INVENTORY SUMMARY IRM 3.12.37.20.3
    ERS-17-40 ERROR RESOLUTION NEW SUSPENSE LIST IRM 3.12.37.4.2.1
    ERS-17-41 NEW-SUSP-CHARGE-OUT (Form 8161)  
    ERS-17-42 ERROR RESOLUTION DUPLICATE DOCUMENT DLN REGISTER  
    ERS-17-43 DUP-DLN-CHARGE-OUT (Form 8161)  
    ERS-17-44 IMF INTEREST JEOPARDY REPORT – ERROR FILE IRM 3.12.37.19.6
    ERS-17-45 IMF INTEREST JEOPARDY REPORT – SUSPENSE FILE IRM 3.12.37.19.6
    ERS-17-46 IMF INTEREST JEOPARDY REPORT SUMMARY  
    ERS-17-47 ERROR RESOLUTION INVENTORY CONTROL REPORT IRM 3.12.37.2.3
    ERS-17-48 ERROR RESOLUTION NEW SUSPENSE LIST SUMMARY IRM 3.30.124.5.2.3
    ERS-19-40 ERROR RESOLUTION DUPLICATE DOCUMENT DLN REPORT BY INVENTORY SOURCE IRM 3.12.37.21.4
    ERS-31-40 ERROR RESOLUTION UNWORKABLE SUSPENSE AGED REPORT IRM 3.12.37.40.2
    ERS-31-41 ERROR RESOLUTION WORKABLE SUSPENSE REPORT IRM 3.30.124.5.2.3
    ERS-77-40 ERROR RESOLUTION PRODUCTION REPORT – ERROR CORRECTION IRM 3.12.37.24.1
    ERS-77-41 ERROR RESOLUTION PRODUCTION SUMMARY – ERROR CORRECTION IRM 3.12.37.24.1
    ERS-77-42 ERROR RESOLUTION PRODUCTION REPORT – SUSPENSE CORRECTION BY PROGRAM  
    ERS-77-43 ERROR RESOLUTION PRODUCTION SUMMARY – SUSPENSE CORRECTION BY PROGRAM  
    ERS-77-44 ERROR RESOLUTION PRODUCTION REPORT – SUSPENSE CORRECTION BY STATUS  
    ERS-77-45 ERROR RESOLUTION PRODUCTION SUMMARY – SUSPENSE CORRECTION BY STATUS  
    ERS-77-46 ERROR RESOLUTION DAILY EMPLOYEE TIME REPORT IRM 3.12.37.24.2
    ERS-77-47 ERROR RESOLUTION DAILY EMPLOYEE TIME REPORT SUMMARY IRM 3.12.37.24.2
    ERS-83-40 ERROR RESOLUTION QUALITY REVIEW REPORT  
    ERS-83-41 DAILY ERS REVIEW QUALITY REVIEW CHARGE-OUT (Form 8161)  
    ERS-83-42 ERROR RESOLUTION QUALITY ASSURANCE HOLD REPORT  
    ERS-83-44 ERROR RESOLUTION QUALITY ASSURANCE REWORKED REPORT  
    MER-03-40 ERROR COUNT REPORT DAILY  
    MER-03-41 ERROR COUNT REPORT YEAR-TO-DATE  
    MER-13-40 PROGRAM ANALYSIS REPORT  
    MERDAIL ERROR COUNT REPORT MeF DAILY  
    MERYRDT ERROR COUNT REPORT ELF YEAR-TO-DATE  
    GMF-10-40 ERROR DISPLAY RUN CONTROL REPORT IRM 3.12.37.7.3.1
    GMF-10-41 ERROR REGISTER RAW/LOOP  
    GMF-10-42 ERROR PULL LIST RAW/LOOP/SUMMARY IRM 3.12.37.5.6
    GMF-10-43 DAILY ERROR VOLUME REPORT/SUMMARY IRM 3.12.37.5.2
    GMF-11-40 REJECT REPORTS RUN CONTROL REPORT IRM 3.12.37.17.3
    GMF-11-41 REJECT RE-INPUT TRANSMITTAL  
    GMF-11-42 REJECTED AGED LIST IRM 3.17.37.40.1
    GMF-11-43 REJECT INVENTORY LIST (DLN Sequence) IRM 3.12.37.19.4
    GMF-11-44 REJECT PULL LIST IRM 3.12.38.2.4.3
    GMF-11-45 REJECT REGISTER RAW/LOOP IRM 3.12.37.6.6
    GMF-11-46 CURRENT REJECT LIST IRM 3.12.37.19.5
    GMF-11-47 REJECT DISPOSITION LIST IRM 3.12.37.6.9
    GMF-11-48 REJECT CORRECTION VERIFICATION LIST IRM 3.12.37.6.8
    GMF-61-41 INTEREST REDUCTION INITIATIVE SUMMARY SCRS AND ERS IRM 3.12.37.19.7
    GUF 55-47 NULLIFIED DISTRIBUTION LIST IRM 3.12.37.17.1
    SCF-11-48 NEW DLN RECORD LIST IRM 3.12.37.31.1
    SCF-11-51 TAPE CONTROL RECORD LISTING IRM 3.12.2.1.1.1

Use of Terminals

  1. The Error Resolution System (ERS) uses the same terminals as the Integrated Data Retrieval System (IDRS). This allows each user to switch easily from ERS to IDRS Command Codes.

  2. Each user should be encouraged to learn and use the IDRS Command Codes that are provided in his or her operator profile.

  3. The ERS computer system and IDRS computer systems are separate and will not necessarily be operating during the same hours. If research is required and an IDRS system is down, suspend the record so that research can be completed when IDRS is available.

Computer Assisted Review of Error Resolution System (CARE)

  1. Computer Assisted Review of Error Resolution System (CARE) is the "on-line" quality review of Taxpayer Notice Codes (TPNC) initiated by the Error Resolution System (ERS).

    1. CARE is used to identify incorrect or erroneous Taxpayer Notice Codes (TPNC) prior to the normal review process.

    2. Notices corrected by CARE prevent delays in refunds or balance due notices issued, thus preventing erroneous notices from being generated to the taxpayer.

  2. CARE requires no manual record keeping and is truly a "Computer Assisted Review" . All statistical data regarding notice and examiner accuracy is gathered by computer programs and then downloaded to a database for analysis.

  3. Command Code QRSEL is used to select documents to stay on the ERS Data Base one additional day to allow for TPNC review and correction. The selection is made using the following criteria:

    • All of an Examiner's Work

    • All Notice Codes

    • Money Amount

    • Batch and Block Number

  4. Documents are reviewed and reworked using instructions for specific error codes in IRM 3.12.2 and IRM 3.12.3 as appropriate.

  5. The LC76440 report can be found on Control D and contains the data used to generate the daily review sheets. This report is imported into the CARE Reports Access Database program. Using the Reports menu, the following types of review sheets can be generated:

    • Julian Date

    • Notice Report

    • Dollar Report

    • Employee Report

    • Cart Report

    • Custom Select Report

  6. The LC76301 report can be found on Control D and contains data showing the before CARE and after CARE status of each return. This report is input into the CARE 2.03 Access Database to generate accuracy reports for each return. The following accuracy reports can be generated:

    • Section Accuracy Rates

    • Individual Tax Examiner Report Summary

    • Team Report Summary

    • TPNC Review Report Summary

    • TPNC Review accuracy by Team

    • Notice Code Review Totals

    • Notice Code Review by Team

    • Notice Code Review by Program

    • Quality Review Report

  7. The Utility Window is used to specify review begin and end dates. This will allow weekly, monthly or yearly accuracy reports to be generated.

    • Local reports should be generated and distributed as requested by local management officials.

    • HQ reports should be generated and distributed as requested by HQ CARE analyst

CARE Reports
  1. The LC 76440 report can be found on Control D and contains the data used to generate the daily review sheets. this report is imported in to the CARE Reports Access Database program. Using the Reports menu, the following types of review sheets can be generated:

    1. Julian Date

    2. Notice Report

    3. Dollar Reports

    4. Employee Report

    5. Cart Report

    6. Custom Select Report

  2. The LC76301 report can be found on Control D and contains data showing the before CARE and after CARE status of each return. This report is input into the CARE 2.03 Access Database to generate accuracy report for each return. The following accuracy reports can be generated:

    1. Section Accuracy Rates

    2. Individual Tax Examiner Report Summary

    3. Team Report Summary

    4. TPNC Review Report Summary

    5. TPNC Review accuracy by Team

    6. Notice Code Review totals

    7. Notice Code Review by team

    8. Notice Code Review by program

    9. Quality Review Report

  3. The Utility Window is used to specify review begin and end dates. This will allow weekly, monthly or yearly accuracy reports to be generated.

    1. Local reports should be generated and distributed as requested by local management officials.

    2. HQ reports should be generated and distributed as requested by the HQ CARE analyst.

Generating CARE Review/Pull Listing
  1. Each morning, the applicable Control D reports (LC76440-BMF and LC76441-IMF) should be loaded into the CARE Access database. See IRM 3.12.37.3.7.1(1) above. The daily review/pull listings are then generated and printed.

  2. Using these listings, the returns are then located and made available to the CARE Reviewers.

CARE Review Procedures
  1. In order to prepare the return for review, the previously sent TPNCs must be removed. Take the following steps in the order shown:

    1. Enter the complete DLN (including the serial number of the return) from the review sheet using Command Code GTRECQ. Transmit.

    2. Enter GTSEC 01. Transmit.

    3. Delete all Computer condition Codes (CCC) present in Field 01CCC (notate the CCC’s deleted as they will be re-entered).

    4. Enter CCC "G" in Field 01CCC. Transmit.

    5. EC 048 will then display. Delete CCC "G" from Field 01CCC and re-enter any previously deleted CCCs. Transmit.

  2. The return is now ready to be reworked and should be either corrected or a notice(s) sent.

  3. Refer to the following IRMs for ERS correction procedures:

    IMF Individual Master File
    IRM 3.12.2 IMF Error Resolution General Instructions
    IRM 3.12.3 IMF Error Resolution System
    IRM 3.12.37 IMF General Instructions
    IRM 3.12.179 IMF Master File Unpostable Resolution
    BMF Business Master File
    IRM 3.12.38 Business Master File General Instructions
  4. It is very important that each return is worked completely. The ERS Screen will display the message, Error Block Completed. If this message does not display, the return was not closed and will remain in the ERS inventory.

  5. If the return was worked incorrectly by the ERS tax examiner, feedback may be given following local procedures.

Control Clerk Guidelines

  1. This subsection of the manual lists control clerk procedures. Control clerk duties include:

    • Receiving, sorting and distributing work

    • Controlling documents

    • Inputting correspondence

    • Controlling registers

    • Maintaining suspense files and charge out

    • Fulling other clerical functions as assigned

Control of Error Documents

  1. The control clerk is responsible for controlling error documents including:

    • Controlling transcription carts

    • Alpha Block Control Number (ABC) Listing or Batch Transmittals

    • Document withdrawal requests

    • Related processing for payment documents

Controlling Transcription Carts
  1. All returns and documents are routed to Cycle Control Unit after transcription is completed. Prioritize cart order as follows:

    1. Correspondence Carts (CORR)

    2. Block Out of Balance Cart(s) (BOB) - Blocks are pulled from the regular error carts and routed to the BOB resolution function. The blocks are returned and placed on separate carts after resolution; they will be identified by new work group after resolution. Cart does not need to be entered in Batch Block Tracking System (BBTS), the write-up sheet is pre-written and attached to the front of the cart(s).

    3. Prior Year Carts (PY)

    4. Current Year Carts (CY)

    5. Miscellaneous Cart (MISC) - The write-up sheet is pre-written and attached to the front of the cart(s) by the clerks.

  2. Carts are to be separated by program code order smallest to the largest, then block order smallest to largest within Domestic, ITIN, & International returns.

  3. Each cart is labeled according to local procedures for Control Day = Julian Date to indicate the day the work was received and the type of documents on the cart. Complete “roadmap” for carts as follows:

    1. Prepare a list (i.e., "roadmap" ) that shows all of the alphas and batches on each cart. This list should be prepared using (BBTS) IRM 3.10.5.5, Batch/Block Tracking System (BBTS) .

    2. This "roadmap" may be combined with a program to verify that each block actually received in Cycle Control Unit was released from the Integrated System Remittance Processing (ISRP).

      Note:

      Do not depend on the Batch Transmittals to list blocks actually received. Each block must be checked against the transmittal or a separate listing prepared to verify blocks actually received.

  4. Carts of documents are retained until:

    1. SCRS—the first loop register has been worked, or three days.

    2. ERS—all items in error inventory have been worked.

  5. All documents must be identified based on the Julian date to maintain effective control.

  6. Documents not removed to Files within the normal 4–5 day period must be maintained in a researchable order by work group so that the documents can be pulled by Files personnel.Route completed carts to Files or a designated stating area.

Alpha Block Control Number (ABC) Listing or Batch Transmittal
  1. Check each block of documents (including single-document re-inputs) off the ABC listing or the Batch Transmittal as it is associated with the ERS-13-40, Error Resolution Error Inventory. . Remove any "left over" blocks not been pulled for BOBs, Data Conversion, or Accounting and containing no errors from the cart. Verify the blocks have processed using the Service Center Control File (SCCF)

  2. Use any ERS terminal to input Command Code (CC) SCFTR to verify the block has been processed. Enter the following format:

    • enter SCFTR

    • a blank space

    • enter the Master File Code (IMF–1, Information Returns Processing IRP–5, or Non Master File NMF–6)

    • enter the 12–digit block Document Locator Number (DLN) (without hyphens),

    • transmit

    • For example, block 0020-056-003-8, enter SCFTR 1002090560038.

  3. The response screen should indicate that the block has already been processed by showing the 0–5 (or 1–5) control record with the entire count of the block and machine Alpha Block Control Number (ABC). The error, reject, and suspense counts in the header should be blank for original blocks. For reentries, the ABC and serial number of the 0–5 or 1–5 control record should match the Form 3893.

  4. Use the SCF–11–51, Tape Control Record List, as an alternative..

  5. If any "left-over" blocks cannot be located on the SCCF, research using the following steps:

    1. Check for unassociated error registers, Error Inventory listings or BOB registers for two days before or after current date.

    2. For ERS documents, research using CC ERINV.

    3. Recheck the SCRS tape listing and ISRP mismatch listing back and forward at least two days.

    4. Check the Edit Reject List.

    5. Check leftover error, ERS, and BOB listings for matching alpha and batch number, indicating that the block has been input with the wrong DLN.

    6. Research the Batch Transmittals to determine when the block was to be input.

    7. If unsuccessful, leave the block with the Data Control Unit as a potential unprocessed block.

Document Withdrawal Requests
  1. Files processes most document requests. Control clerks process priority document requests when the blocks are located in Error Correction.

  2. Form 2275 or Form 4251 will be received for each document to be pulled for other campus functions. Attach the original record request to the document being pulled. File the second copy in the block the document was removed from as a substitute for the document and document trail.

  3. Every ERS suspense document has a 3 part Form 8161 attached.

    1. Use the original to pull or replace the document in Files

    2. Copy two is detached and retained in a suspense file.

    3. Copy three copy stays on the document to inform the receiving area that the document is controlled by ERS.

      Note:

      If the documents are hand carried to the receiving function, the second copy of the Form 8161 may be signed as a receipt. A separate routing form such as a form 3210 may be used in the place of the Form 8161.

  4. Form 8161 is received as a charge-out for ERS suspense documents and deleted ERS documents.

  5. Form 8161 identified as "Program Analysis" charge-outs should be placed on top of the appropriate cart and used to pull the documents immediately before the cart is released to Files.

Related Processing for Payment Documents
  1. Some documents will be separately sorted, blocked, and numbered so that they can be easily routed to other campus functions for subsequent actions.

    • Entity Control—Returns without TINs

    • Taxpayer Identification Number (TIN) Penalty Function—CP2100, Form 8210, and Self Assessed Penalties Returns

    • Rejects Correspondence

  2. Form 813 will be routed to Files after the errors are corrected for these documents. The documents will be routed to the appropriate areas.

  3. If these documents need to be suspended, a photocopy will be made before routing. The photocopy will be associated with the suspended item.

    Note:

    Form 1040NR, Form 1040NR-EZ, Form 1040PR, and Form 1040SS are processed only at the Austin Submission Processing Campus (AUSPC). Route the International documents to the AUSP Campus following local procedures.

  4. All other documents will be routed to Files.

ERS Suspense Document Control

  1. This subsection of the manual lists the procedures to be followed for pulling ERS suspense documents listed on ERS-17-40, Error Resolution New Suspense List and document disposition.

    • Pulling ERS Suspense Documents, ERS-17-40

    • Disposition of documents

Pulling ERS Suspense Documents, ERS-17-40
  1. Receive the New Suspense List and accompanying charge-outs for each record assigned to ERS Suspense.

  2. The Error Resolution New Suspense List identifies the source of each record to assist in locating the documents.

    Figure 3.12.37-1

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  3. Pull documents listed as suspended by Code and Edit from the ISRP cars received for that day. Complete the following procedures: .

    1. Replace each document removed from its original block with the original copy of its associated charge-out. (

    2. Attach the remaining copy of the charge-out to the removed document.

    3. If the document is missing, indicate on both copies of the charge-out and on the New Suspense List that it is missing. Date and initial your entry on the New Suspense List, and notify the work lead.

  4. Pull each document from the carts suspended by ERS shown on the New Suspense List.

    1. Replace each document removed from its original block with the original copy of its associated charge-out.

    2. Attach one copy of the charge-out to the removed document.

    3. If the document is missing, indicate on both copies of the charge-out and on the New Suspense List that it is missing. Date and initial your entry on the New Suspense List, and notify the work lead.

  5. Verify receipt of all New Suspense List documents received from the Unpostable Unit.

    1. Associate the change-outs with the unpostable documents.

    2. Forward the original of the charge-outs to Files for all unpostable documents received from the Unpostable Unit.

    3. Attach the remaining copies to the unpostable document

Disposition of Documents
  1. The instructions in this subsection for routing and filing refer to several different suspense files. These files may be maintained separately or combined in a single ERS suspense file. The ERS automated control system will be easier to maintain by using a single ERS suspense file.

  2. The Action Code printed on the charge-out indicates the disposition of the paper document or MeF Section 01 Print. See for an example of the Form 8161 that stays with the document or Section 01 print for routing and/or history.

    Figure 3.12.37-2

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  3. Action Code 21X & 22X—Correspondence:

    1. Place the paper documents/MeF Section 01 print and charge-out in the Correspondence suspense basket to be batched by ACA, SSPND 224 and Non-ACA, SSPND 211.

    2. Place the paper document and charge-out in the Correspondence suspense basket to be batched by ACA, SSPND 224 and Non-ACA, SSPND 211.

  4. Action Codes 331, 335, & 336— Scheme Development Center:

    1. Place the paper documents/MeF Section 01 print and charge-outs in the folder or basket for review by Scheme Development Center.

    2. If the suspended work will leave the immediate work area, attach a copy of the charge-out and place in a Scheme Development Center suspense file.

    3. If the document must be routed to another area, follow local routing procedures to route the paper documents/MeF Section 01 print.

  5. Action Code 370 — Examination Review:

    1. Place the paper documents/MeF Section 01 print and charge-out in the folder or basket for review by Examination.

    2. Examination will visit the Rejects area to work the case.

  6. Action Codes 310, 320, 333, 334, 337, 34X, 360 — Suspense to Other Functions:

    1. Use the second copy of the charge-out as a routing slip to the designated function in the campus.

    2. Detach the copy of the charge-out and place in a suspense folder for the designated function in DLN order.

    3. If the document must be routed to another area, follow local routing procedures to route the paper documents/MeF Section 01 print.

  7. Action Codes 351, 410, 510, 6XX, 700, 900 — Workable Suspense:

    1. Associate the paper document/MeF Section 01 print with the current Workable Suspense Inventory report.

    2. If the document must be routed to another area, follow local routing procedures to route the paper documents/MeF Section 01 print

  8. Action Codes 352 through 355 — Research-Suspense:

    1. Place the paper document/MeFSection 01 print and charge-out in the file designated for suspense in DLN order.

    2. Place in the suspense file in DLN order.

  9. Action Codes 420 through 499 — Management Suspense:

    1. Place the paper documents/MeF Section 01 print in a suspense file for management suspense and system problems.

    2. The file should be maintained in DLN order, unless otherwise instructed.

  10. Action Codes 511 through 515 — Missing Documents:

    1. If the document is not available, place the copy of the charge-out in the missing document suspense in DLN order. The first and second copies of the charge-out are used to initiate a special search.

    2. If the document is attached for Action Codes 511–514, input CC ACTVT and route the document and charge-out for association with the Workable Suspense Inventory report on the following day.

Error Resolution System (ERS) Reports

  1. This subsection of the manual provides information about the ERS reports.

  2. Information in this subsection includes the following:

    • Error Resolution Inventory Control Report, ERS–17–47

    • Error Resolution Error Inventory Summary, ERS–13–41

    • Error Resolution Error Inventory, ERS–13–40

Error Resolution Inventory Control Report, ERS-17-47
  1. The ERS Inventory Control Report, ERS–17–47, is a one-page summary of activity for each of the ERS files.

    1. This daily report is used to provide an overview of the ERS inventories.

    2. The report shows the number of records added and removed from each inventory daily. Items in the Quality Review File are included in the ending inventory counts for Errors and Workable Suspense.

  2. The primary purpose of this report is to provide Data Controls a simplified method of balancing the ERS to the SCCF.

    Figure 3.12.37-3

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Error Inventory Summary, ERS-13-41
  1. The ERS Error Inventory Summary Report, ERS-13-41, shows the volume of error records by ascending program number with a total for each Master File. Separate reports are produced by the number of working days the records remain unworked in the error inventory. This report is available daily. Figure 3.12.37-4

  2. The report is used for management control of the inventory and work planning and control.

    Figure 3.12.37-4

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Error Inventory, ERS-13-40
  1. The ERS Error Inventory Report, ERS-13-40, lists the error records by the number of days in working inventory with their Block DLN. This report is printed daily. Separate inventories are printed for:

    • Each Master File

    • Each Program number

  2. Use this report to assign work to tax examiners, to associate documents with error records, and to release documents from previous day’s workload, retaining only those for the unworked records. (

  3. Separate reports are printed showing the records in inventory by the number of working days the records have been in the inventory.

  4. Separate reports are printed for each Batch number showing the following information items:

    • Block Control Number

    • Block DLN

    • Error Count for each Block

    • Control date of data entry through ISRP and GMF

    • Ascending DLN order within each Batch

    • Total error count for each Batch

  5. Separate reports are available for Blocks received from BOB Correction.

    Figure 3.12.37-5

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Clerical Letter Input

  1. This section of the manual lists the procedures for:

    • Batching

    • Letter Tool Set-up

    • Input of Correspondence

    • ICO Letter Inventory Tracking System (ILITS) Tool

Batching

  1. This subsection of the manual lists the Batching procedures for the suspended and Non-Pending Correspondence to be entered by Letter Input Clerical Teams.

    Note:

    All documents are batched in Suspense Date Order.

  2. Batch documents by Paper vs. MeF, area of suspense, (Code & Edit or ERS),2nd Correspondence/Non-Pending, and special suspense codes.

  3. Bundles should be no more than 25 documents per batch. Assign each batch numerically in range or per local procedure based on type of correspondence. Notate batch number on each bundle and the log in order to ensure numbers are not reissued.

  4. Bundle work by each type and place on batch carts for letter processing by processing day.

Letter Tool Set-up

  1. This subsection of the manual lists the procedures performed to set-up the Letter tool prior to entering any ICO Correspondence.

    1. Open IAT on Desktop after logging into IDRS. If IAT is not present see Get IAT, http://iat.web.irs.gov.

    2. Open Letters and select Options: CAS Mode - Checked; View - Unchecked; User Settings to complete tabs.

    3. Letter Tool Tab - the following listed items should be selected:

      Section Action
      Tool Defaults Check "Show Selected Only"
      Tool Defaults Default to DLN research
      Tool Defaults Populate form to applicable fill-ins
      Tool Defaults Populate plan numbers to IRS Control N...
      Tool Defaults Populate tax period to applicable fill-ins
      Tool Defaults Populate TIN to applicable fill-ins
      F5703 Print Manual
      Letter Sent Confirm transmit of CC LPAGE
      Letter Sent Clear fields after letter is successfully sent
      Letter Sent Close tool after letter is successfully sent
      Sort Letters Useage
      Sort Scenarios Useage
      Sort Paragraphs Useage
      STAUPS Checked (Cycles default of 03)
      LPAGE Defaults Number: 12C
      LPAGE Defaults Employee: (enter 10 IDRS Employee number)
      LPAGE Defaults Suspend: R
      LPAGE Defaults Ex-Spouse Copy: Unchecked
      LPAGE Defaults OMB, CB, & PA: All Blank
      LPAGE Defaults Return Address Code: Specific by Service Center - See http://serp.enterprise.irs.gov/databases/who-where.dr/signaturelist.dr/return-address-codes.htm
    4. General Info Tab - Fill-in Name, Mailing Address, & Manager’s Information fields. The following listed items should be selected:

      Section Action
      IDRS Minimize IDRS when researching: Checked
      508-Compliance Zoom Text User: Checked
    5. Work Info Tab - Function and Program Codes & Categories remain blank. TIMIS # is assigned by the system, do not change. The following listed items should be selected:

      Section Action
      Organizational Information BOD: W&I SP
      Organizational Information Org: Input Corrections
      Organizational Information Area: Error Resolution
      Organizational Information Title: Clerk
      Organizational Information Team Number: Enter Unit 5 digit number
      Organizational Information Badge Number: Varies by Clerk
    6. Letter Info Tab - the following listed items should be selected

      Section Action
      Signature Code
      1. Austin - CJ

      2. Cincinnati - AD

      3. Fresno - BW

      4. Kansas City - CB

      5. Ogden - AJ

      Opening None
      800 Extension 0922
      Certified Mail Signature Code Blank
      Closing None
      800 Number 800-829-1040
      My Info Fax: by Campus
      1. Austin -855-204-5020

      2. Cincinnati - 855-262-0485

      3. Fresno - 559-456-7233

      4. Kansas City - 855-892-7588

      5. Ogden - 855-309-9361

      My Info All other fields to be completed by user.
    7. Select Save

Input of Correspondence

  1. Correspondence may be input, at campus option, by tax examiners or clerical clerks following local procedures.

  2. Input the letter using the IAT CAS Letter Tool. Refer to the Letter Job Aid at //iat.web.irs.gov/.

  3. Input other Non-Pending C Letters using IAT as appropriate.

  4. Correspondence must be issued as soon as possible, but no later than 10 business days from the ERS Suspense date. If correspondence has not been issued within 10 business days, ACTVT and resuspend correspondence immediately and issue correspondence.

ICO Letter Inventory Tracking System (ILITS) Tool

  1. The Input Correction Operation Letter Inventory Tracking System (ILITS) is a tool developed by IAT that is used by the correspondence function to maintain and control the letter inventory. The tool performs three primary actions:

    • Add Case Controls

    • Close Single Case Controls, and

    • Purge Expired Case Controls

  2. The CRX0316 Report is a daily report on Control-D, which contains the previous days letter input data. Use the"Add Case Control" feature daily to run the CRX0316 file through the ILITS tool. Case controls are added to display the Batch Number on CC ENMOD, which identifies where the document is located in the suspense file. This control will also show on the CCA4243 Overage Report with a list of the controls assigned to the employee who ran the tool.

  3. Use the "Generate Batch Sheets" feature to print all the batch sheets for that letter file. Associate each batch sheet with its related bundle and place the bundle in the suspense file in batch number order.

  4. As correspondence replies are received, associate the reply with the return. Use the "Close Single Case Control" feature and the SSN on the reply/return to close the case control on CC ENMOD and activate the return to Workable Suspense Inventory.

    Note:

    Do not perform a separate action with CC ACTVT.

  5. Use the "Purge Expired Case Controls" feature to run the weekly Overage Report through the tool to close the case controls on the No Reply documents. DO NOT activate No Reply documents. when the suspense period has expired, IDRS will automatically place the documents in the Workable Suspense Inventory.

  6. Batch Sheet and Case Control Instructions to be run daily:

    1. Control D filter, Report Name CRX0316

    2. Verify and select correct day of work, highlight and Select SAVE

    3. Select SAVE AS in the drop down box and add the previous day’s date to the end of the file name

    4. Select C-drive, Users, your SEID, My Documents, SBU , IAT, Save

    5. Go to IAT TOOL and Select Generate Batch Sheets

    6. Select Continue (a list will open in IAT of the CRX0316 saved in the C-drive) Select the previous day’s date, Select Open - Batch sheets will print

    7. After Batch sheets are complete Select Add Case Control

    8. Select Continue (a list will open in IAT of the CRX0316 saved in the C-drive) Select the previous day’s date and Select Open

    9. Once complete, close out of ILITS

Correspondence Suspense File

  1. When the correspondence letter has been prepared, place the return in a suspense file awaiting a reply from the taxpayer.

    1. File ERS paper documents in Batch Number order.

    2. File ERS MeF Section 01 print and Correspondence Action Sheet in Suspense date order in a separate section from paper returns.

    3. File Non-Pending and 2nd Correspondence in date order.

  2. Maintain each document and Correspondence Action Sheet in a suspense file for at least 10 days after the period given for the taxpayer to respond. Maintain each MeF Section 01 print & Correspondence Action Sheet for 60 days from Suspense date and destroy per local procedure after suspense time has elapsed.

    Note:

    Only destroy Section 01 screen print and do not destroy taxpayer’s correspondence or taxpayer’s documentation.

    DO NOT activate No Reply documents. When the suspense period has expired, IDRS will automatically place the documents in the Workable Suspense Inventory.

  3. When the taxpayer's reply is received:

    1. Stamp letter with Rejects Unit received date, if not already date stamped.

    2. For paper replies, associate the reply with document and Correspondence Action Sheet.

    3. For MeF replies, DO NOT associate with the Section 01 print and Correspondence Action Sheet.

    4. Check the envelope for remittance or additional information.

    5. For paper replies, attach the envelope and Form 6001/A, 3696/A, 13900, or 13975. For MeF replies, attach the envelope to the reply.

      Caution:

      If reply is received through Registered Letter, do not discard the envelope or contents.

    6. Staple the letter and attachments to back of original paper document in the upper left hand corner.

    7. For ERS, bring the record to the workable file using the ILITS tool.

  4. If a reply is received without the DLN or Batch number, research to obtain the correct DLN or Batch number. Use the following instructions to research:

    1. If the TIN is not available, use CC NAMEI or NAMES.

    2. Use CC ERINV with the TIN to search for the DLN.

    3. Use CC ENMOD with the TIN to search for the Batch Number.

    Note:

    Review the document received to ensure it is a reply for ICO Correspondence. Mis-routed documents are to be returned to the originating location in the pipeline. See specific sections of IRM 3.10.72 Receiving, Extracting, and Sorting: IRM 3.10.72-1 Routing Guide/Local Maildex, IRM 3.10.72-2 Correspondex "C" Letters - Routing Guide, or IRM 3.10.72-3 Computer Paragraph (CP) Notices - Routing Guide.

Control of Error Registers

  1. This subsection of the manual lists the procedures that are to be performed to maintain control of error registers.

  2. Information in this subsection includes the following:

    • General control procedures

    • Daily Error Volume Report, GMF–10–43

    • Error Register Summary

    • Associate Error Registers with documents

    • Control of Loop Registers

    • Error Pull List, GMF–10–42

    • Disposition of Completed Registers

General Control Procedures

  1. As new data enters the Submission Processing Campus (SPC) computer, the computer performs validity and consistency checks, mathematically verifies taxpayer computations, and codes the data to assure taxpayer notification of errors.

    1. If the data for an input document passes all required checks, it is placed on a tape for transmittal to the Enterprise Computing Center at Martinsburg (ECC-MTB). This is known as "good tape" .

    2. If the data for an input document does not pass all validity checks, the record is placed in error status.

  2. The error sequence numbers will have gaps because the same series of numbers is used for BOB registers. The last number on the right side of the Document ID line is a register counter to be used to count the number of errors within a batch of work.

    Figure 3.12.37-6

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  3. The Error Display Run Control Report, GMF–10–40, is generated daily as a computer summary of the error processing for the day. ( )

    1. The information on this report should reflect the totals for the Error Register Summary, Pull List, and Daily Error Volume Report.

    2. Three portions of this report are used in preparing Form 6826, Error/Reject Display Request Card.

    Figure 3.12.37-7

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Daily Error Volume Report, GMF–10–43

  1. The Daily Error Volume Report is a listing of volumes of error records in each program on the error tape. The information is provided by Master File and Error Sequence Number Julian date. This report is used to schedule the workload for Error Resolution and to prepare Error Display Requests.

    Figure 3.12.37-8

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  2. The last line of the report contains the total volume for all programs within the Master File and Julian date specified.

  3. There is a summary page for each Master File system. The summary page is in the same format as the detail page except that the word "SUMMARY" replaces the Julian date on the second print line.

    Figure 3.12.37-9

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  4. Review the Daily Error Volume Report when preparing the daily Error Display Card to be sure the correct error Julian dates are being requested.

  5. If any items are shown with a Program Number of "00000" determine which programs are not recognized by number and follow the procedures in IRM 3.30.126, Control Data Analysis, for updating the Program Number Master List.

Error Register Summary

  1. The Error Register Summary (GMF–10–42) is produced when the error register is printed.

    1. GMF–10–42 reflects the count of all the error documents printed on the register for that day.

    2. This summary is used by management to maintain a daily count of work in the Error Correction function.

  2. This summary contains totals for each type of error document by Program Number and error status (i.e., Raw, 1st Loop, and Advanced Loops). The listing also provides the total error documents in error status for all program numbers within a Master File.

    Note:

    This is not a comprehensive total of all records on the error tape. Those figures are available on the Daily Error Volume Report.

  3. The count by loops is based strictly on the Julian dates designated by the Error Display Card. The computer does not independently determine how many times a record has appeared on an error register.

  4. Any program shown as Program Number "00000" with no title has not been recognized by the Program Number Master List. See IRM 3.30.126, Control Data Analysis, if any programs have not been identified or if changes are needed to identify campus subprograms.

Associate Error Registers with Documents

  1. The Error Correction Control function receives the error register from the Computer Operation normally within half a day after receiving the carts of newly transcribed documents.

  2. After verifying with the Error Register Summary the correct registers have been received, the registers are sorted by batch number for association with the documents.

  3. The control clerk assigns portions of the error register with the related document cart to the various units. Many campuses use various local controlling, routing, or sign-out forms prepared by the Error Correction Control function.

Control of Loop Registers

  1. Each error register is corrected, transcribed, and re-validated. If the record is still unresolved, a loop error register is printed and worked in the same manner as the original register.

    1. In some cases, the original register has not been corrected or transcribed and the loop will be identical to the original register.

    2. The raw registers may be retained and compared to the loop to help identify program or transcription problems.

  2. In most campuses, first loop registers are worked directly from the document carts in the same manner as raw.

  3. For second loop, all documents should be pulled from the blocks and associated directly with the individual error registers.

  4. Be sure to indicate on the Block Header, Form 1332 or Form 813, that the document is being pulled for error loop.

    Figure 3.12.37-10

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  5. Be sure that old error records do not remain in the inventory for an extended period. Except for Information Returns Processing (IRP), all errors should be corrected or rejected within three weeks of the Error Sequence Julian date. Carefully monitor the Daily Error Volume Reports (GMF–10–43) to ensure that this procedure is being followed.

    Note:

    Only transactions in the reject file are available for IDRS research by other functions within IRS.

Error Pull List, GMF–10–42

  1. The Error Pull List (GMF–10–42) may be requested as an aid to locating source documents for error register items:

    1. The Pull List may be printed for raw errors, first loop, second loop, or subsequent loop.

    2. The Error Pull List is always printed in the same sequence as the error registers.

    3. The Pull List is recommended for the loop in which the documents will be pulled from the block for association with the individual register. The listing is then used as a check list as the documents are pulled.

    Figure 3.12.37-11

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  2. The Error Pull List Summary may be used to assist in scheduling the resources needed to pull documents

    Figure 3.12.37-12

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Disposition of Completed Registers

  1. Corrected error registers are released to the control function as the pages are completed by Tax Examiners and/or Quality Review.

  2. The registers are batched and routed to ISRP throughout the workday until the daily cut-off. The last transmittal for the day's registers should be marked "final" .

  3. Each block of registers must have a correction alpha block control (ABC) and each corrected register requires a serial number.

    1. If the ABC is generated and is to be transcribed, it must be underlined for the first record of the register block.

    2. An ABC sticker must be used if the ABC is not generated or is not to be transcribed.

      Note:

      The ABC sticker will take priority over the generated ABC. In this case, the generated serial numbers may still be used as long as they are in ascending sequence for the transcription operations.

    3. If the Serial Number (SN) is not generated, an SN must be stamped or written above and to the right of the "@@" signs.

    4. If the SN is generated but is not to be transcribed, an SN must be stamped (or written) above the generated number. (The generated SN will not be lined through in this case.)

      Note:

      The stamped or written SN takes priority over the generated SN.

    5. If a record on the error register is not to be corrected at all for that day (i.e., no corrections are to be transcribed for that record), the SN must not be stamped or written onto the register for that record. In addition, if a generated SN is present, it must be lined through. The absence of any SN—or the presence of a lined through SN—will indicate to ISRP not to transcribe any correction data for that record.

  4. The error registers are returned to Error Correction after transcription. They may be destroyed after verification that no unusual problems have occurred on the subsequent loop.

Control of Reject Registers

  1. This subsection of the manual lists the procedures that are to be performed to maintain control of error registers.

  2. Information in this subsection include the following:

    • General reject register control procedures

    • Reject Sequence Number (RSN)

    • Reject Inventory List, GMF–11–43

    • Receipt of Documents and Registers

    • Control of Reject Loop Registers

    • Reject Register Summary, GMF–11–45

    • Disposition of Reject Registers (coding and routing)

    • Reject Correction Verification List, GMF–11–48

    • Reject Disposition List, GMF–11–47

General Reject Register Control Procedures

  1. Each reject register must be associated with the source document. The specific procedure for pulling and associating the documents is determined by campus management.

Reject Sequence Number (RSN)

  1. The Reject Sequence Number (RSN) is used to access each record on the file.

  2. The RSN is 10 digits and it is displayed in the format of "X–XXX–XXXXXX" . The RSN format is described in the following table:

    Position Content Description
    XXXX Year digit
    2 through 4 Julian date plus 600
    5 through 10 Consecutive serial numbers beginning with 000001 for all new rejects on the file

Reject Inventory List, GMF–11–43

  1. The Reject Inventory List (GMF–11–43) is a listing of all items in the reject inventory as of the date of the listing.

    Figure 3.12.37-13

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  2. The listing may be produced in any of the following sequences:

    • Document Locator Number (DLN)

    • Reject Sequence Number (RSN)

    • Taxpayer Identification Number (TIN)

  3. The inventory list should be produced at least once a week as a research tool for items in rejects. Retain this list for at least one year.

  4. The Reject Display Card is used to request the inventory list and select the sequence(s) for the printed list.

Receipt of Documents and Registers

  1. Upon receipt of the documents and registers, the Reject Control Clerk will compare document and register for correct association.

    1. The Tax Examiner/clerk will make sure that all documents are received or noted as missing.

    2. At this time, sorting of the various types of reject cases can be made.

  2. Route the work to the applicable functions within the unit. The following cases should be worked on a priority basis:

    1. Non-correspondence returns for which refund interest may be payable.

    2. Subsequent payment documents (Document Code 17, 18, or 19, Transaction Code 670).

  3. Some reject registers will be received without documents.

    1. Submission Processing Campus deletes have already been pulled by Data Controls in Accounting.

    2. Verify the DLN and alpha with Data Control and code the register with Action Code "2–R" .

    3. Registers with missing documents should be maintained in a missing suspense file.

  4. When documents are received without a Reject Register, take the following action(s):

    1. Research using CC SCFTR to determine if the Document Locator Number (DLN) is in Rejects and the date of the register.

    2. Research using the appropriate CC (s) to determine if the document is in Rejects.

    3. Check the reject DLN Inventory listing to verify if document is a reject.

    4. If the document is found on inventory listing, check "missing reject suspense" file for association.

  5. In cases where documents are received without a Reject Register, items are on inventory, and the original register cannot be located, use the reject file copy and replace with photocopy.

  6. If a file copy is not available, reconstruct register as follows:

    1. Use a photocopy of a reject file copy register with the same format code applicable to document.

    2. Line through and rewrite above the Reject Sequence Number (RSN) the document’s corresponding sequence number.

    3. Line through pertinent data on the register, such as the Employee Identification Number (EIN), to insure that the register will loop. Route photocopy of register to ISRP.

    4. When the reject item appears on loop, associate loop register with document and work as required.

  7. If the document is not on the reject inventory listing, route to a senior technician for research to determine if the transaction has posted to the Master File.

Documents Received Without a Reject Register
  1. Research using CC SCFTR to determine if the DLN is in Rejects and the date of the register.

  2. Research using the appropriate Command Code(s) to determine if the document is in Rejects.

  3. Check the reject DLN inventory listing to verify that the document is a reject case.

  4. If the document is found on the inventory listing, check the missing reject suspense file for association.

  5. In cases where items are listed on inventory and the original register cannot be located, use the reject file copy and replace it with a photocopy. If a file copy is not available, reconstruct the register as follows:

    1. Use a photocopy of a reject file copy register with the same format as is applicable to the document.

    2. Line through and rewrite above the RSN the document's corresponding sequence number.

    3. Line through pertinent data on the register, such as the SSN, to ensure that the register will loop. Route the photocopy of the register to ISRP for input. When the reject item appears on the loop, it should have all the data applicable to the document. Associate the loop register with document and work the case as required.

  6. When the reject document is a Computer Paragraph (CP) 2000 issued to a taxpayer to request verification of under reported Income, photocopy the front and back of the form (and any attachments). Use the photocopy and route the original document to the appropriate campus.

    Note:

    A document may have to be held and checked against the following week's inventory listing since it will not show in the current week's inventory if the document was rejected during the current week.

  7. If the document is not on the reject inventory listing, route to your lead TE. The lead will perform research to determine if the transaction has posted to the Master File.

Control of Reject Loop Registers

  1. Each corrected reject record is resubmitted to the normal validity checks just as any error record is.

    1. The record becomes a reject loop if the correction has failed to clear to "good tape" or to delete from the reject file.

    2. Each time the reject loop register is printed, every record in loop status is re-displayed, regardless of whether a correction has been transcribed.

    3. A reject loop record can be returned to a regular reject status with Action Code "9" . This will prevent the record from reprinting each time the loop is printed.

  2. Reject loop records are considered part of the reject inventory and will print on the Reject Inventory List, Reject Aged List, and Reject Disposition List. Corrected loop records do not print on the Correction Verification List.

  3. Any action that is valid on a reject register is also valid on a reject loop register. It is not necessary to re-reject the record before deleting it with Action Code "2" .

  4. Reject loop registers must be associated with the documents in much the same way as raw rejects.

    1. Separate Reject Pull Lists may be requested for reject first loop or all subsequent loops.

    2. If the corrected raw reject documents were sent to Files, the first loop pull list should be sent with the registers to the Files Cycle Control function.

  5. Reject loop registers should be printed at least once a week, but may be printed as often as daily.

    1. Loop registers may be requested by individual program number or by Master File Tax Code (MFT).

    2. As program completion dates approach, the loop registers for those programs should be requested more than once a week.

  6. Use the Reject Display Card to request printing of the loop. Use the Reject Sort Card to determine the print sequence and to request the pull list.

Reject Register Summary, GMF–11–45

  1. The Reject Register Summary (GMF–11–45) lists all programs and categories of reject registers for the day.

  2. This summary should be used to ensure that all registers have been received. The summary may also be used to assist in work assignment or resource allocation.

    Figure 3.12.37-14

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Disposition of Reject Registers (Coding and Routing)

  1. Batch the completed reject registers for data transcription as follows:

    1. Separate the documents and route to Files or other holding area as determined by campus management.

    2. Sort the registers into raw and loop, by Master File.

    3. Separate the corrected from the deleted register.

    4. Group into blocks of 100 or fewer registers.

  2. Assign a sequential Serial Number to each register.

    1. Enter the serial number immediately above the Reject Sequence Number.

    2. Number the registers consecutively, beginning with 00. (

    Figure 3.12.37-15

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  3. Enter an alpha sticker on the top-left corner of the first document in each block.

  4. Prepare a transmittal to ISRP according to local procedures.

  5. The registers are returned after transcription and matched against the Reject Correction Verification List.

    1. Deleted registers are filed and retained for one year.

    2. Corrected raw reject registers are retained for four months.

    3. Corrected loop reject registers may be destroyed.

Reject Correction Verification List, GMF–11–48

  1. The Reject Correction Verification List (GMF–11–48) is printed in correction block and Serial Number sequence for easy association with the reject registers returned from transcription.

    1. This listing contains an entry for each reject correction record which either failed to match to a reject document by RSN or matched to a previously "non-corrected" reject. Reject loop corrections are not printed on this listing and require no verification because "no match" would print as a subsequent loop.

    2. This listing matches the order in which the corrected registers were transcribed.

    3. Compare each block of returned registers with the Verification List to ensure that all corrections were transcribed. Corrected items identified as "Valid" or "Invalid" require no additional action. If the item is still in the reject inventory, a loop register will be printed.

    4. Deleted items (Code "2–D" or "2–R" ) should be further checked against the Reject Disposition List. (See IRM 3.12.37.8.9 Reject Disposition List)

    Figure 3.12.37-16

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  2. The following registers should be pulled from the block for re-transcription or, if necessary, to be reworked:

    1. Any register with a corrected RSN that was not transcribed.

    2. Any register identified as "No Match" .

    3. Any register identified as "Dup RSN" . If the two corrections are input for the same SN, both will come out as "Dup RSN" , unless one also had an incorrect Format Code.

  3. Check the Summary and reconcile the total count with the number of registers processed.

  4. Retain the Correction Verification List as an index to the corrected registers for at least one year.

  5. Items identified as "Invalid" will always loop. Some of the reasons for "Invalid" corrections are as follows:

    • Invalid Action Code

    • Invalid RSN

    • Invalid Action Code for the section being corrected

    • Invalid data for the Action Code

    • Action Code "2" not followed by a Disposition Code

    • Disposition Code "N" does not contain the required section

    • Action Codes "0" , "1" , "2" , "7" , or "9" used with other Action Codes

    • SNs transcribed in the wrong sequence

Reject Disposition List, GMF–11–47

  1. The Reject Disposition List (GMF–11–47) is used to research rejects that have already matched corrections input. (

    Figure 3.12.37-17

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  2. This listing is printed in RSN sequence and includes all corrected rejects for that date, both raw and loop.

  3. Each entry includes a literal indicating the disposition of the document, or in the case of renumbered documents, includes the new DLN.

    1. Good—Valid correction sent the document to good tape.

    2. Loop—The correction was invalid or a valid correction failed to resolve all reject conditions.

    3. Reentry—Action Code "2" and Disposition Code "R" . Check off each reentry document and mark the date as it is released to Batching.

    4. Re-Reject—Action Code "9" .

    5. Void—Action Code "2" and Disposition Code "D" . These items should be checked against returned reject registers to ensure that the correct code was entered.

    6. Renumbered Documents—Action Code "2" and Disposition Code "N" . The new DLN must be verified with the document before release.

    Note:

    Verify by comparing with the new DLN on the Disposition List (GMF–11–47) or on the New DLN Record List (SCF–11–48).

  4. Retain the Disposition List as a reference for at least one year, so that corrected reject registers can be located. The correction ABC and serial number are shown on the Disposition List.

Form 6826, Error/Reject Display Request Card

  1. This subsection of the manual lists the procedures related to Form 6826, Error/Reject Display Request Card.

  2. Information in this subsection includes the following:

    • Purpose of the Form 6826

    • Form 6826, Section I - Beginning SC Block Number Card (ABC Card)

    • Form 6826, Section II—Error Display Card

    • Form 6826, Section III—Reject Display Card

    • Form 6826, Section IV—Error Sort Card

    • Form 6826, Section V—Reject Sort Card

Purpose of Form 6826

  1. The error and reject register correction systems provide a great deal of flexibility in deciding what registers and inventory listings will be printed each day, and in what sequence.

    1. Form 6826 is prepared to select the needed printouts.

    2. The program provides a "default value" that determines what will be printed when no card is input.

  2. Sections I, II, and IV of Form 6826 are used for error registers. Sections III and V are for rejects.

    1. The error correction sections are normally prepared in the Error Correction Control Unit.

    2. The rejects sections may be prepared by the Control Unit, Rejects Unit supervisor, or the lead TE.

  3. Form 6826 is for register processing for all Master Files. Programs that have been converted to ERS cannot be affected by this form.

  4. Complete Form 6826 electronically and send it to the Unisys Scheduling Unit. E-mail it to &MITS ACIOEOPS-ECC-OSSVB-USS. Do not fax Form 6826.

    1. The Error Correction cards are input to run GMF–10.

    2. The Reject Display and Sort cards are input to GMF–11.

Form 6826, Section I-Beginning SC Block Number Card (ABC Card)

  1. Section 1 should be prepared whenever the Correction ABC and SN are preprinted on the error registers.

  2. Examine the Informational Run Control Data for the Beginning ABC on the Error Display Run Control Report (GMF–10–40) of the previous day.

    Figure 3.12.37-18

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  3. Enter the "Beginning ABC to be Input Next Day" in Section I of Form 6826.

Form 6826, Section II—Error Display Card

  1. Section II, Error Display Card, is used to request the printing of raw and loop error records from the error tape and must be input daily. ( Figure 3.12.37-19 )

    Figure 3.12.37-19

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    If an Error Display Card is not input on a particular day... Then...
    A] For IMF and BMF, Only the raw error documents will print on the error register.
    B] For IRP Nothing will appear on the error register.
  2. Each horizontal line on the Error Display Card represents a computer line. A separate line must be completed for each Master File. A separate line must also be completed if only certain programs within a Master File are being requested.

  3. Circle the appropriate Master File Identification Code number on the Error Display Card as follows:

    • "1" for IMF

    • "2" for BMF

    • "5" for IRP

  4. Use the Program Number field to select specific programs within a Master File to be printed on the error register. Enter the complete Program Number or enter any lead numerics followed by Xs. The program numbers may be entered as follows:

    1. Leave blank or enter "XXXXX" —All programs within a Master File will print on the error register.

    2. "NXXXX" —All programs with the same first digit will print (e.g., 4XXXX).

    3. "NNXXX" —All programs with the same first two digits will print (e.g., 44XXX).

    4. "NNNXX" —All programs with the same first three digits will print (e.g., 444XX).

    5. "NNNNX" —All programs with the same first four digits will print (e.g., 4444X).

    6. "NNNNN" —Only one program will print (e.g., 44700).

  5. Use the Raw field to select the raw error records to be printed on the error register. This field contains four positions as year digit and Julian date (YYDD). If loop registers are requested, and a card is not input to request the raw register, only the loop register will print. A request for loop register will override the default values which have been set.

    1. If error records for one Error Sequence Number Julian dates are requested, enter as YYDD in the "From" column and leave the "To" column blank.

    2. If error documents from two or more Julian dates are requested, enter as "YDDDYDDD" . All error records which have Error SN Julian dates greater than or equal to the first YDDD and less than or equal to the second YDDD will be selected for printing as raw errors.

    3. Check the Daily Error Volume Report (GMF–10–43) to determine which Julian dates are on the error file.

  6. Loops, First through Fifth—The same criteria for raw errors applies to loop errors.

  7. Subsequent Loop (YDDD Only)—All error records that have Error Sequence Number Julian dates less than or equal to the YDDD entered will print as "sixth loop or over" errors.

  8. Be sure that all records with old Julian dates are printed on the error register. Except for IRP, no record should remain in error status for more than 3 weeks.

Error Display Cards
  1. Error Display Cards are validated and printed on the Error Display Run Control Report (GMF–10–40). ( Figure 3.12.37-20 )

    Figure 3.12.37-20

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  2. Valid Error Display Cards will appear on the listing with nothing printed in the last column of the report. The last column of the report does not have a printed title.

  3. Invalid Error Display Cards will appear on the listing with "INVALID" printed in the last column. The Error Display Cards will be invalid if any of the following conditions are present:

    1. The Master File Identification (ID) Code is other than 1, 2, 3, 4, or 5. If the Master File ID code is invalid, the card will print on the listing for IMF.

    2. The program number entered is not in a valid format.

    3. A Julian date is entered for the "TO" column and the "FROM" column is blank.

    4. The Julian date is not numeric.

    5. The day portion of the Julian date is not 001–366.

  4. The items listed as "invalid" will not print on the error register.

Form 6826, Section III—Reject Display Card

  1. Section III, Reject Display Card, should be input whenever a Reject Inventory or Age List is required or whenever reject loop registers should be printed.

    1. If no card is input, only the raw rejects will be printed.

    2. If Inventory and Age Lists and loop registers are always printed on the same day of the week, the same card may be used by the Computer Operation.

  2. Prepare the Reject Display Card as follows:

    1. Circle the "RD" for each Reject Display card being prepared.

    2. Circle the appropriate Master File. A separate card must be prepared for each SCRS file. ("1" = IMF, and "5" = IRP)

    3. Enter the program number only if the request applies only to a particular program or group of programs. For a group of programs, enter two succeeding X fillers. An additional request with the program number blank may be used to request all remaining items on a Master File.

    4. Circle the "1" for "Print Raw Rejects " . If the card is prepared, this position must be circled for each Master File or the raw rejects will not print.

    5. Circle "1" for "Print Loop" if the loop should be printed on this day. To avoid duplicate registers, the loop is normally not requested until all of the previous loop has been input for the designated file.

    6. Circle "1" for "Reprint Raw Rejects" if registers have been printed incorrectly and must be reprinted.

    7. If the Reject Inventory List should be printed on this day, circle a number for "Reject Inventory List" . The available sorts for the inventory list are shown in the lower-right corner of the Form 6826. Be sure to circle only one number. For instance, if the list should be printed in both DLN and RSN order, circle 3, not 1 and 2.

    8. To print the Age List circle one number for "Age List" using the same code shown on the form.

Form 6826, Section IV—Error Sort Card

  1. Section IV, Error Sort Card, is used to request changes in the following:

    1. The order the error records will print.

    2. The Error Pull List.

    3. The computer generation of the Alpha Block Control Number and correction record Serial Numbers (ABC/SN).

  2. Prepare an Error Sort Card to change the following conditions:

    1. The order in which the error records will print.

    2. Whether or not to print an Error Pull List.

    3. Whether or not to computer generate the ABC and correction record SNs.

  3. Generally, the sort requests should not change from day to day. If a request is not input, the computer will default to the last request made.

  4. Each horizontal line on the Error Sort Card represents a computer line. A separate line must be prepared for each Master File.

  5. Circle the appropriate Master File Code as follows:

    • "1" = IMF

    • "2" = BMF

    • "5" = IRP

  6. The Print Sequence field determines whether the error records are printed on the error register in transcribed batch sequence or in DLN sequence. Circle the appropriate number on the card for Raw, First, Second and Subsequent Loops. A code must be circled for all four items.

    1. Code 1—Transcribed Document Locator Sequence. The error registers are printed in the following order: Error Sequence Julian date, Program Number, Batch Number, SC Block Control Number and DLN Serial Number. Use this code for raw and loop errors.

    2. Code 2—Files DLN Sequence Within Loop. The error register will be printed in Files DLN order within each Error Sequence Julian date within each loop. Use this code for raw and loop registers.

    3. Code 3—Files–DLN Sequence Without Regard for Loop. The Loop error registers will be printed in Files DLN order.

  7. Circle "1" for each register for which an Error Pull List is to be printed. If the Error Pull List is not to be printed, do not circle a number.

  8. Correction ABC/SN—This field determines whether or not the computer will generate correction record alpha block control numbers and correction record serial numbers for raw and first loop records. Circle the appropriate number. Leave blank if the numbering is not to be computer generated.

    1. Code 1—Raw errors only.

    2. Code 2—Raw and first loop errors.

    3. Code 3—Raw and all loops. Until the form is revised to show this option, enter the numeric "3" on Form 6826.

  9. If the Correction ABC/SN has been computer generated, a computer card must be prepared daily to assign the beginning ABC. If a Beginning SC Block Number Card is not input to update the generated ABC, the computer will default to "/22" . It is recommended that a Beginning SC Block Number Card be input so that the ABCs will not be duplicated from day to day. The Beginning SC Block Number is listed on page 3 of the Error Display Run Control Report.

Error Display Run Control Report
  1. Error Sort Cards are validated and printed on the Error Display Run Control Report.

  2. The Error Sort Requests show the Old Error Sort Parameters, the Error Sort Requests Input, and the New Error Sort Parameters.

  3. Valid Error Sort Requests Input will appear on the listing with nothing printed in the last column of the report.

  4. Error Sort Requests will appear on the listing with "DUPLICATE" printed in the last column. If the request is valid, but there already is a valid Error Sort Request, the first valid request input is used to determine the print sequence.

  5. Error Sort Requests will appear on the listing with "INVALID" printed in the last column if any of the following conditions exist:

    • The Master File Code is other than a 1, 2, or 5

    • If the Master File Code is entered as an invalid character

    • If any invalid characters are entered

  6. Error Sort Requests will also appear on the listing with "INVALID" printed in the last column if any of the following combinations are entered:

    1. Print Sequence Key for First Loop is 3 and for Second and/or Advance Loops is 1 or 2.

    2. Print Sequence Key for Second Loop is 3 and for Advanced Loops is 1 or 2.

    3. Print Sequence Key for First Loop is 3 and the Correction ABC/SN code is 2.

  7. If a valid Error Sort Request was input, the New Error Sort Parameters should be identical to the valid Error Sort Request. Otherwise, the New Error Sort Parameters should be equal to the old Error Sort Parameters.

Form 6826, Section V—Reject Sort Card

  1. Section V, Reject Sort Card, is prepared only if the Rejects Unit wishes to change the way that registers are sorted or the way the Current Reject Listing or Pull List is printed.

  2. Prepare Section V, Form 6826, to establish a standard print format for the reject register, Current Reject Listing, and Pull List. Once the desired sort is determined, the same card will be used each day by the Computer Operation. No new card is needed unless the Rejects function changes procedures. ( Figure 3.12.37-21 )

    Figure 3.12.37-21

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Preparing the Reject Sort Card
  1. Circle "RS" for each Reject Sort card being prepared.

  2. Circle the desired Master File. A separate line must be used for each file.

  3. Circle the sort option desired for the reject register.

    1. Circle "1" to sort the register in Files DLN sequence.

    2. Circle "2" to sort first by the source of the reject. That is, all Rejects coming from errors, BOBS, raw data, or Unpostables will be printed separately. The sort within each source is by DLN for errors, BOBS, and Unpostables and by transcribed document sequence for raw data.

  4. Circle the sort desired for the Current Reject Listing. Circle "3" if the list should be printed in both DLN and RSN sequence.

  5. Indicate the desired loop print sequence.

    1. Circle "1" if the loop should be printed in strict DLN sequence, without regard to loop.

    2. Circle "2" if each loop should be printed separately.

    3. Circle "3" if only the first loop should be printed separately, with all other loops combined.

  6. If one or more Reject Pull Lists is used, indicate the requested lists. If a pull list is used for all reject registers, circle the "1" for "Raw" , "First Loop" , and "Other Loop" .

Error Register Format

  1. This subsection of the manual lists the procedures related to the Error Register.

  2. Information in this subsection includes the following:

    • General Error Register information

    • Error Register title line

    • Error Register ID line

    • Error Register document sections

    • Types of errors

General Error Register Information

  1. The Error Registers are listings of document records that failed the validity, consistency, or math verification tests of the service center (SC) computer.

  2. The Error Register is printed in the order requested by each campus on the Error Sort Card from Form 6826. The registers may be sorted in any of five sequences. (See IRM 3.12.37.4.5 for additional information)

  3. Each processing campus should select the sequence best suited for its operations. The sort sequence is not required to be the same for every Master File.

Error Register Title Line

  1. The Error Register Title Line identifies the Run Number and Master File, type of record, type of register, and source of the error register, program, form number, Format Code, date, and page number. ( Figure 3.12.37-22 ) It will appear as the first printed line at the top of each page.

    Figure 3.12.37-22

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  2. The Generalized Mainline Framework (GMF) processes all Master Files on one file but the error registers will be printed separately for each Master File (see the following list).

    • IMF—Individual Master File

    • BMF—Business Master File

    • IRP—Information Returns Program

    • EPMF—Employee Plans Master File

  3. The title line designates that the register is raw or loop.

  4. For loop registers, the correction loop counter specifies which loop may be contained on the page. If loop errors have been sorted separately, this field will be a one-digit number (e.g., "1" , "2" , etc.). This field will be the range of loop registers printed (e.g., "1–6" , "2–6" , or "3–6" ) if some or all loop errors have been sorted separately.

Error Register Identification (ID) Line

  1. The Error Register ID Line will identify each document on the error register and, sometimes, why the document is on the error register.

  2. The Error Register ID Line is always the first printed line for each document on the error register. If an error document is too long to fit on one page, the ID line for this split record is repeated on the next register page.

  3. The Correction ABC and SN are present when requested on the Error Sort Card.

    1. See IRM 3.12.37.3.7 for procedures for assignment of the ABC/SN.

    2. When the generated ABC/SN is not selected, each error record is preceded by "@@" .

  4. The IRP and Windfall Profit Tax (WPT) error registers may contain "%%" to the right of the generated SN. "%%" indicates that a correction record is needed but should not contain data for associated data errors. See IRM 3.12.8 Information Returns Processing, for specific information regarding this field.

  5. The Error Sequence Number (ESN) is assigned to each raw input document that is determined to be in error.

    1. This number remains the ESN of the error document until the record is corrected or rejected from the Error File Tape.

    2. The ESNs will not be in sequence on the error registers. ESNs are assigned to all Error and BOB Records as they are entered on the files, whereas Error Records are sorted in various sequences prior to being printed on the Error Register.

    3. The first four positions of the ESN are the year digit and Julian date.

  6. The Service Center Block Control Number is a three-digit alpha-numeric assigned to a block of documents and input by ISRP for control purposes. It is used to associate error registers with blocks or documents.

  7. The Batch Number is a four-digit number assigned to a group of blocks which have been associated for document control purposes and which have identical program code, tax class, document code, and other specific record criteria.

  8. The Document Locator Number (DLN) is a unique 14-digit number assigned to each document within a block.

  9. The Block Header MFT is a code which is used to further identify the types of documents in a block. The MFT is a two position numeric code.

  10. The Invalid Correction Error Reason Code is a code indicating that the last error register correction attempt was invalid. This invalid correction attempt will be identified by Error Reason Code AA for all Master Files. See IRM 3.12.37.8 for a list of the various invalid correction attempt conditions. This field will be blank if an invalid condition is not identified.

  11. The (Specific Document) Error Reason Codes are specific codes explaining the reason an input document is on the error register. The Error Reason Codes and their related explanation and correction procedures will be included in the IRM 3.12. chapter for each document. If the document does not have Error Reason Codes, this field will be blank. If Error Reason Codes are valid for a document, a maximum of nine two-digit Error Reason Codes can be present in this field.

  12. The Math Status Code is a one-digit numeric code that indicates whether a return is mathematically correct, or in error within tolerance, or in error out of tolerance. If this Math Status Code is not used for a document then the field is blank. The valid code values and meanings are as follows:

    • Blank—not relevant

    • "0" —non-money return

    • "1" —no math error

    • "2" —math error within tolerance

    • "3" —math error out of tolerance

  13. The XXX (Specific Document) Error Reject Document Identification Data provides specific document identification data for additional information regarding the records. This ID data should not duplicate any information already provided in the Document ID Line or the Error Register Title Line. For example, the Block Header Transaction Code for Revenue Receipt Documents will be reflected in this field.

  14. The Correction Loop Counter is a two-digit numeric field that provides the number of times a particular record has appeared on a Loop register.

  15. The Correction Match Counter is a two-digit numeric field that provides the number of times that a document on the error register has had a correction matched to it. This number reflects the number of correction attempts.

  16. The Last Action Code Used is a code identifying the correction action code applied to an error document to resolve an error condition. When more than one action code is present in the matching correction record, the first action code in the correction record is considered to be the last action code used.

  17. The Error Register Consecutive Counter is an ascending and consecutive count of error records as they appear on the error register. The counter is reset to 00001 with each change of Master File and each change of raw to loop register. This counter should be used to determine the number of registers in a block of work.

Error Register Document Sections

  1. Each error register document record contains one or more sections of data.

    1. The section number is displayed to the left of the first line of each section.

    2. The first section number for each document is 01. Other sections may follow, always in ascending order but not necessarily consecutively.

  2. The fields of each section begin on the same line as the Section Number. Each field is identified on the Error Register by an Alpha Field Designation printed before the field. The sign of the field is also printed on the Error Register for variable length input fields. When required, the sign of a field is printed after the field.

    1. If the field in error is one normally designated by an asterisk, the asterisk is printed in the first space immediately to the left of the field designator.

    2. The fields of a section must always be in the same sequence and must be corrected in that sequence. For correction purposes, each field is referred to by its Alpha Field Designation. The first field of each section is designated as the "A" field and letters are assigned in alphabetic sequence for the rest of the fields in the section. Corrections must be transcribed in alphabetical order.

Types of Errors

  1. Every record that appears on an Error Register has failed a specific validity, consistency, or math error check.

  2. Every error must be corrected with an Action Code.

  3. Computer Condition Code (CCC) "U" will create an entry source code of "D" on the register.

  4. An unpostable will create a "U" and the Unpostable Code (e.g., "U168" ).

Character Errors
  1. Character Errors include the following:

    • A non-numeric character in a numeric field

    • A non-alphabetic character in an alpha field

    • A blank space in a numeric field

    • A blank in the first position of an alpha field

Field Errors
  1. A Field Error in a specific Alpha Field Designation indicates the field, or characters within the field, that failed a validity test. Correct by entering the correct data.

  2. Field Errors include the following:

    • A non-numeric character in a numeric field

    • A non-alphabetic character in an alpha field

    • Blanks in a must enter field. ( Figure 3.12.37-23 )

    Figure 3.12.37-23

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  3. The error indicator for a Field Error is an asterisk (*) printed to the left of the Alpha Field Designation. ( Figure 3.12.37-24 ) Such fields contain valid alpha or numeric characters, but the field content is invalid.

    Example:

    Only digits 1, 2, or 3 are acceptable to the program and 0, 4, 5, 6, 7, 8, or 9 has been transcribed, or a return period is prior to the acceptable ADP period.

    Note:

    The specific validity tests for each type of document are listed in the various chapters of IRM 3.12.

  4. An overflow field for a Field Error is identified by all question marks (????) for a money field or a single pound sign (#) in the last position of a name line.

    Figure 3.12.37-24

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Terminus Errors
  1. A Terminus Error is indicated by two asterisks (**) printed to the left of the Section Number. ( Figure 3.12.37-25 ) This indicates that there is a non-numeric character in a numeric field or that the format of the section is incorrect.

    1. In case of a Terminus error, check that all necessary fields and sections are present. If they are not present, enter the missing section with Action Code "5" and the fields with Action Code "6" .

    2. If the data is correct, it will be necessary to reenter a field using Action Code "6" to send the record to good tape.

    Figure 3.12.37-25

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Edit Errors
  1. The Edit Error Indicator is printed to the left of the Section Number. This error will be shown on the error register as follows:

    1. "#1" —Split screen transmission, Key Verifier attempted to change Check Digit, Key Verifier changed 4 or more digits of TIN, or the OE operator entered a required Section as "missing " , or the depositor account number (DAN) in Section 06 (which is input twice) was not entered the same way both times.

    2. "#2" — A mixed condition exists caused by back-to-back returns with the same data.

    3. "#3" — Invalid Section ending point.

    4. "#4" — Invalid field length.

    5. "#5" — A section was entered twice or entered out of sequence by ISRP.

  2. All fields of a section must be examined when the Edit Error Indicator is present. If Section 01 of a return is coded, also examine the tax base data section for error to ensure the return data is for the taxpayer whose name is in Section 01.

  3. Even though one or more sections of a record are coded, the validity and consistency checks necessary for the record are made for all sections. If the record is correct as it appears on the Error Register, use Action Code "7" to send the record to Good Tape.

  4. Normal corrective action for fields in error is to be taken as instructed in the applicable chapter of IRM 3.12. An Action Code "4" , "5" , or "6" must be used for each section coded in error, unless Action Code "7" is used.

Validity Errors
  1. Data within the field is invalid and error indication has an asterisk (*) before the field.

Relationship Errors
  1. Relationship Errors involve more than one field of the error record.

  2. The Error indicator is the Error Reason Code and/or asterisks printed before the fields involved.

  3. If an Exempt Organization (EO) entity change and the error code is "01" , a pound sign (#) will be shown before the invalid field.

Math Errors
  1. Math Errors result when the computer computation differs from taxpayer on IRS computation (transcribed amount).

  2. The Error indicator is the computer computation amount printed on the Error Register under the transcribed amount. ( Figure 3.12.37-26 )

    Figure 3.12.37-26

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Missing Section Errors
  1. Missing Section errors will be indicated by a single asterisk (*) to the left of the section number. This indicates a missing required section. Use Action Code "6" to enter the missing data.

Extraneous Section Errors
  1. Extraneous Section errors are indicated by a pound sign (#) to the left of the Section Number. This indicates an invalid section. Use Action Code "4" to delete an unnecessary section. ( Figure 3.12.37-27 )

    Figure 3.12.37-27

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Error/Reject Register Action Codes

  1. This subsection of the manual provides information on Error/Reject Register Action Codes.

  2. Information in this subsection includes the following:

    • Action Codes "2" through "7" and "9"

    • Invalid correction attempts

Action Code "2"

  1. Action Code "2" is used to delete, reenter or renumber records on Service Center Control File (SCCF).

  2. Action Code "2" is entered to the left of Section 01 and must be accompanied by a Reject Disposition Code. ( Figure 3.12.37-28 ) The valid Reject Disposition Codes are as follows:

    • 2–D— delete the document from the Reject inventory

    • 2–R— reenter the document with the current DLN

    • 2–N— renumber the document

  3. Be sure to maintain an audit trail of deleted documents. Notate on the register the reason for Action Code "2" .

  4. Action Code "2" is valid for IRP and Reject Register only.

  5. When Action Code "2" is used, no other Action Code is valid.

    Figure 3.12.37-28

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Action Code "3"

  1. Enter Action Code "3" to the left of Section 01 for any record that is unprocessable.

  2. Some of the reasons for using Action Code "3" are:

    1. A return or other document with illegible or missing necessary data, which requires additional research or taxpayer or area office contact.

    2. A return/document that cannot be processed by the program under which it was blocked and must be processed with a DLN or Block Header for a different program.

    3. A return or other document that has data incorrectly transcribed in a field that cannot be changed by an Error Register Correction.

  3. Action Code "3" is valid for Error Registers only.

    Exception:

    IRP

  4. Attach a Correspondence Action Sheet or Reject Routing Slip to the document to explain the invalid condition or intended corrective action. Figure 3.12.37-29

  5. Immediate action may be necessary to suppress generation of erroneous balance due or delinquency notices before rejecting a payment/delinquency return to be renumbered/reentered.

  6. When Action Code "3" is used, no other Action Code is valid.

    Figure 3.12.37-29

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Action Code "4"

  1. Action Code "4" is used to delete a section from a register. ( Figure 3.12.37-30 )

  2. This code is valid for any section that is considered optional by the return program. Section 01 can never be deleted.

  3. This code should not be used to delete a section identified as "missing" (a single asterisk in front of the section number). A missing section will be dropped automatically if no data is entered in it.

    Figure 3.12.37-30

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Action Code "5"

  1. Action Code "5" is used to add a section to a record on the register.

  2. Action Code "5" is followed by the number of the section being added and the alpha field designator(s) and the data for the section being added. ( Figure 3.12.37-31 )

  3. This code is invalid for a section already on the register or a section that is not valid for the type of document being processed.

  4. When adding sections, be sure that all corrections are entered in the proper sequence.

    1. If the document also requires Action Code "6" corrections, sections must be added in the proper sequence with respect to other corrected sections.

    2. If the document requires no other corrections, sections may be added at any place on the record, provided that each new section is in the proper sequence.

    Figure 3.12.37-31

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Action Code "6"

  1. Action Code "6" is used to change a field or fields of a section within the Error Record.

    1. The computer identifies each field of a section with an Alpha Field Designation and prints the Alpha Field Designation before the field on the Error Register.

    2. To correct a field, the incorrect field data must be lined out and the correct data entered above. Any number of fields may be changed during one correction cycle.

    3. Enter Action Code "6" immediately to the left of the Section Number for the section being changed. ( Figure 3.12.37-32 )

  2. When a fixed-length field must be blanked out or left partially blank, special procedures are required.

    1. If the fixed field requires leading blanks, always enter the number of blanks encircled, followed by the corrected data.

    2. If the fixed field requires blanks after the data or if the entire field must be blanked, the spaces must be accounted for only if another field is being corrected later in the section.

  3. Action Code "6" cannot be used to add, delete, or change the remittance amount on an error register. If the remittance is incorrect, use Action Code "3" .

    Figure 3.12.37-32

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Action Code "7"

  1. Action Code "7" is used to indicate that the data on the error register is correct and that no action is necessary.

  2. Use Action Code "7" to clear an error record that is on the register for a one time only validity condition. ( Figure 3.12.37-33 )

    Note:

    Action Code "7" must not be used unless all other information on the register is correct.

  3. Action Code "7" will not clear a math error condition even if the taxpayer was correct. Instead, use Action Code "0" .

  4. When Action Code "7" is used, no other Action Code is valid.

    Figure 3.12.37-33

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Action Code "9"

  1. Use Action Code "9" to re-reject a loop register for correspondence or other suspense action. ( Figure 3.12.37-34 )

  2. This code is used to prevent a reject loop record from reprinting each time the loop is run, if the record is not ready for correction.

  3. Action Code "9" is to be used for reject loop only. Do not use for raw rejects or error registers.

  4. When Action Code "9" is used, no other Action Code is valid. See Exhibit 3.12.37-2 for a listing of the Use of Action Codes on Error/Reject Registers.

    Figure 3.12.37-34

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Invalid Correction Attempts

  1. Each correction attempt is subject to tests which ensure proper correction.

    1. If a correction attempt fails, the record will reappear on the Error Register with Error Reason Code "AA" .

    2. When Error Reason Code "AA" is present, correct the error register as if no other correction attempt has been made.

  2. For a given record, any correction that precedes the invalid correction attempt will print out as a corrected field.

    1. Any other corrections made after an invalid correction will not printout, an Error Reason Code "AA" will be present.

      Example:

      Fields A, B, and C are to be corrected in a section and C was transcribed "Z" . "Z" is an invalid Alpha Field Designation for the Section.

    2. The Error Register will have the corrected Fields A and B printed out, but Field C will still be incorrect.

Action Codes
  1. Action Codes "0" , "1" , "2" , "3" , and "7" are considered invalid correction attempts under the following conditions:

    1. The Correction Record contains other than the Error Sequence Number, Section Number 01, and Error Action Code, the TPNC (for Action Code 1 only) or Reject Disposition Code (Action Code 2 only).

    2. There is more than one section in the Correction Record for an Error Sequence Number.

  2. Action Code "4" is considered an invalid correction attempt under the following conditions:

    1. An attempt is made to delete any section with a single asterisk (*) before the Section Number.

    2. An attempt is made to delete a section of an Error Record when the Error Record Section is not on the Error Tape.

    3. Attempts are made to delete the only section, Section Number 01, for a record.

  3. Action Code "5" is considered an invalid correction attempt under the following conditions:

    1. The Alpha Field Designators are not in alphabetic sequence

    2. An attempt is made to add a section already in the error record

    3. An attempt is made to add a section that has an invalid Section Number

    4. An attempt is made to add a section with a field that has an Alpha Field Designation not possible for that section

  4. Action Code "6" is considered an invalid correction attempt under the following conditions:

    1. The Alpha Field Designators are not in alphabetic sequence.

    2. An attempt is made to change a field of a section with an invalid Section Number or invalid field breaker.

    3. An attempt is made to change a field of a section which is not on the Error Tape.

    4. An attempt is made to change a field with an Alpha Field Designation not possible for that section.

Error Resolution System (ERS)

  1. This subsection of the manual provides information about the Error Resolution System (ERS).

  2. Information in this subsection includes the following:

    • General concepts

    • General correction procedures

    • Use of terminals

    • System capacity

General Concepts

  1. ERS is a real—time computer system used to correct errors detected during Generalized Mainline Framework (GMF) processing.

  2. All errors for the 1040 series returns are corrected on the terminal using ERS.

  3. All other returns and documents that are processed through mainline Submission Processing Campus programs are corrected according to Service Center Replacement System (SCRS) error and reject register procedures.

  4. All ERS records are controlled by DLN.

  5. ERS records are divided into three inventories:

    1. The ERS Error Inventory consists of records that have failed specific validity, consistency, or math checks. Records are accessed by block DLN and remain in the complete block while being worked. The ERS record remains in the Error Inventory until all corrections are made. Any error record that cannot be corrected is suspended.

    2. The ERS Workable Suspense Inventory contains the Rejects inventory. These records are accessed by the complete 14-digit DLNs, as the documents have been pulled from the original block and are no longer identified with block processing.

    3. The ERS Unworkable Suspense Inventory consists of the reject items that are being held in suspense, pending a reply to correspondence or the return of a document from elsewhere in the campus. These records are not included in the on-line file and cannot be worked until they have been activated in overnight batch processing.

General Correction Procedures

  1. ERS Tax Examiners (TE) access error blocks using CC GTREC with the block DLN.

    1. The first error document within the block displays. It displays with the highest priority error first.

    2. When the correction is made and transmitted for that error, the document is validity checked.

    3. Each error record must be completed before the next error record in the block can generate.

    4. When the last error in the block has been corrected, the screen message indicates that the error block is completed and the tax examiner enters another DLN.

  2. Any document that cannot be corrected is suspended with a three-digit action code, which identifies the reason the return was unprocessable. The record is then controlled on either the Workable or Unworkable Suspense Inventory, depending on the action code used.

  3. If a record needs to be reworked, it can be retrieved at any time on the same day using CC GTRECW. See Current Year Job Aid 2515–015 for details.

  4. All corrected records are transmitted to the Enterprise Computing Center at Martinsburg (ECC-MTB), also known as "good tape" .

  5. ERS listings and charge-outs should be received and associated timely. This process should be well underway each morning before the real-time ERS system is available.

  6. All ERS functions should use the system as designed by the following:

    1. Using all appropriate control listings.

    2. Working older errors and Workable Suspense cases first.

    3. Resolving or suspending all error records within three days.

    4. Resolving or suspending all Workable Suspense records within five days.

  7. In order to prevent workable inventory being sent to files in error, all 1340s should be checked for "Error Block Completed" prior to releasing block of work to files.

Use of Terminals

  1. ERS uses the same terminals as IDRS and each tax examiner can easily switch from ERS to IDRS Command Codes.

  2. Each TE should learn and use the IDRS Command Codes that are provided in their operator profile. See IRMs 2.3 (IDRS TERMINAL RESPONSES) and 2.4 (IDRS TERMINAL INPUT) for further instructions.

  3. The ERS and IDRS computer systems are separate and will not necessarily be operating during the same hours. If a TE needs to research IDRS while the IDRS system is down, suspend the record so the research can be completed at a later time.

IDRS Changes and Posting Time Frames Due to CADE2
  1. The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal to implement a single, modernized programming solution which provides daily processing of taxpayer accounts.

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

  3. The new cycles are:

    1. Campus Cycle – Thursday – Wednesday

    2. Master File Processing – Friday – Thursday

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

    4. Unpostables – New available Tuesday; Closing Tuesday

      Note:

      New Cycles are not limited to IMF Sites. BMF sites will also have the new campus cycle.

  4. Refunds for IMF accounts will be accelerated to provide refunds to taxpayers quicker.

    1. Direct deposit refunds will be issued in 4 business days from posting.

    2. Paper check refunds will be issued in 6 business days from posting.

  5. IMF transactions posting time frames are outlined as follows:

    1. Daily transactions directed to a daily account are expected to post daily with daily processing. Transactions will be viewable using CFOL command codes the second day after campus input. Transactions will be viewable on IDRS command codes the third day after campus input.

    2. Weekly transactions directed to a daily account are expected to post with the weekly processing run on Thursday and may result in the account type changing to Weekly.

    3. Daily and Weekly transactions directed to a Weekly account are expected to post with the weekly processing on Thursday.

    4. The following transactions will post daily on weekly accounts: Name change, Address change, Disasters designations, Combat Zone, ID Theft and certain MFT 29 and 30 payments (TCs 430, 610, 660 and 670).

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

    1. 01 = Friday

    2. 02 = Monday

    3. 03 = Tuesday

    4. 04 = Wednesday

    5. 05 = Thursday

      Note:

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

Error Resolution System Capacity

  1. The real-time portion of the Error Resolution System has a capacity of approximately 400,000 Form 1040 records per campus. The capacity may be set higher as individual campuses deem necessary.

    1. Up to 30,000 records may be retained on the Quality Review File, so the effective capacity for real-time planning is 400,000 records.

    2. The ERS programs will run more efficiently with fewer records on the file. If the system approaches capacity, it may be difficult to have ERS real-time available by the beginning of the shift the next day because the nightly update may not have been completed.

    3. Although the ERS database can hold several days of inventory, the campuses should strive to keep each Master File's inventory that is day 5 or older at less than five percent (5%) of that Master File's total inventory (e.g., if the sum of IMF ERS cases from the ERS-13-41 Report is 100,000 cases, that means inventory that is day 5 or older should not be 5,000 or more).

  2. An ERS inventory threshold has been established where up to 50,000 records are automatically added to the error file. This would happen only if the entire workable suspense file had been worked.

    1. An automatic "ORDER ALL RECORDS" will be made if the total of the unworked/unselected records is less than 70,000 records.

    2. If the total of the unworked/unselected records will exceed the threshold, only the two oldest workgroups will be added. (The system will keep a count of the two oldest workgroups.)

    3. If the addition of the two oldest workgroups will exceed the threshold, only the oldest workgroup will be added. If the oldest workgroup will exceed the threshold, only the predetermined program (43110) will be added automatically.

    4. No inventory will be automatically added to the system if the threshold will be exceeded unless a selection is made.

  3. The Input Correction Operation has the ability to select any or all the unselected records that are available. However, if the total workable inventory (error, suspense and quality review) is permitted to exceed capacity, the excess will be placed in overflow status.

    1. Because the ERS file is maintained in DLN sequence, the records with the highest DLNs, regardless of status or days in inventory, will move to the temporary "overflow" inventory.

    2. All overflow records will appear on the ERS control file with status 999.

    3. During the nightly update, if the size of the workable file has been reduced, overflow records will be automatically transferred back to the workable inventory.

    4. In overflow status, the record is not accessible with any command code or included on any inventory list. The record is available only for research on the ERS control file with CC ERINV.

  4. Although unselected records will be automatically added to the ERS error file, Input Correction Operation managers should monitor the inventory levels to ensure that adequate work will be available for the next day.

    1. After each GMF 27 and GMF 37 runs, records are loaded into the ERS01 file prior to selection for the real-time ERS system. Records are held in this file to be selected later for real-time. The Error Resolution Available Inventory Report will be received from the console printer in the Computer Operation. ( Figure 3.12.37-35 )

    2. A separate printout, Error Resolution Unselected Records Inventory (ERS–03–40) is in the same format as the Available Records Inventory and lists all ERS records being held in the unselected inventory. In addition, the Error Resolution Selection Method (ERS–03–41) lists the records selected and the number of the employee making the selection. ( Figure 3.12.37-36 )

    Figure 3.12.37-35

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    Figure 3.12.37-36

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Command Code ERVOL
  1. Command Code ERVOL may be used to estimate, view, and select records for ERS processing.

  2. Each day, compare the Grand Total Error Records count to the count from ERVOL 100 to estimate the unselected records that will be automatically added to ERS during nightly processing. Remember that Workable Suspense records are always added automatically to the real-time file and must be considered to the system capacity.

  3. If the automatic selection will exceed the established threshold, but it has been determined that all records should be added to ERS, enter CC ERVOL, space once and "ORDER ALL RECORDS" .

  4. If only a limited number of records should be added, enter CC ERVOL, space once, and "INVENTORY DISPLAY" .

Viewing and Selecting Records From the Available Records Inventory
  1. There are two screens available for viewing and/or selecting. The two screens will display the program number and available inventory. Each page/screen will consist of the program number and available workable inventory as it appears in the data base.

  2. When ordering by program number from one page/screen only:

    1. "Page" (position cursor on line 24 position 47 and transmit) to needed page/screen.

    2. Select program number(s) and enter amount(s) to order or enter "ALL" to order all inventory of selected program(s).

    3. Transmit from line 23 or below last item on page/screen.

  3. When ordering from more than one page/screen:

    1. Enter "ERVOL INVENTORY DISPLAY" .

    2. Select program number(s) and enter amount(s) to order or enter "ALL" to order all inventory of selected program(s).

    3. Transmit from line 23 or below last item on page/screen.

    Note:

    ERVOL ORDER BY PROGRAM must appear at top left corner when ordering. This is issued by the program. Do not attempt to input this command or the program will abort.

  4. After records have been ordered, the first page/screen of the series will display the message "REQUEST COMPLETED-ORDER AS FOLLOWS:" This message will appear on all pages/screens. The page/screen will display all the program numbers along with the selected inventory ordered.

  5. Within each program, the oldest records are automatically selected. Within an inventory day, records are selected in DLN sequence up to the end of the batch in which the requested volume has been reached.

  6. Selections made using CC ERVOL can be changed at any time during the workday. If a selection is not made, the automatic selection procedures will be employed.

Viewing and Selecting Records From the Error Resolution Unselected Records Inventory
  1. Selective ordering of documents is available as well as moving from screen 1 to screen 2.

    1. To view the documents on the second screen, position cursor on line 24, column 47 of screen 1 and transmit.

    2. To return to the first screen, position the cursor at the bottom of the screen 2 on line 24, column 47 and transmit.

  2. To order records from the first screen, enter number of documents requested in each program and transmit on line 23.

  3. Ordering from the second screen requires entering "ERVOL INVENTORY DISPLAY" going to the second page/screen and making individual selections.

  4. To selectively order records on the second screen, make your selections then position the cursor on any line below the last item on this screen and transmit.

  5. Within each program, the oldest records are automatically selected. Within an inventory day, records are selected in DLN sequence up to the end of the batch in which the requested volume has been reached.

  6. To request all documents for a program, enter "ALL" then transmit.

    Note:

    Command Code ERVOL will only order programs from the first screen and not the second screen unless you go back to the "ERVOL ORDER ALL RECORDS" and go to the second page and order "ALL" .

Command Codes Used in the Error Resolution System (ERS)/Rejects/Suspense

  1. This subsection of the manual provides information for command codes used in Error Resolutions and Rejects. Many of the command codes can be used by the IAtool.

General Information

  1. This subsection of the manual provides information about the Command Codes used in the Error Resolution (Rejects). Many of these command codes can also be accessed using the IAT tool.

  2. A five-character Command Code must be entered with every IDRS screen transmission. The Command Code tells the computer what action to perform. The instructions for using the following command codes are located in the Command Code section of Current Year Job Aid, 2515–015.

    Note:

    Use the IAT Tool to perform the IDRS Command Codes available in te IAT applications.

Command Codes SINON and SINOF

  1. Command Code SINON is used to sign onto the computer. SINON will be used by all SCRS terminal users including ERS, GUF, and IDRS.

    Note:

    To ensure the accuracy of production reports, be sure to enter CC SINON if the system has been down.

  2. Command Code SINOF is used to sign off of the computer and is used by all SCRS terminal users, including ERS, GUF, and IDRS.

    Note:

    You must sign off the computer when leaving your terminal, or at the completion of your shift.

Command Code ACTON

  1. Command Code ACTON is used to:

    1. Establish/update the status of an IDRS control base

    2. Establish/update a history item on ENMOD

    3. Establish/update a dummy account

    4. Change the name control on an account

Command Code ACTVT

  1. Command Code ACTVT is used to transfer an Unworkable Suspense record to the Workable Suspense Inventory.

Command Code ADD24/DRT24

  1. Command Code ADD24, which defaults to CC DRT24, is used to input credit transfers.

Command Code ADD48/DRT48

  1. Command Code ADD48, which defaults to CC DRT48, is used to input credit transfers involving credit elects.

Command Code ATINQ

  1. Command Code ATINQ is used to research the status of the Adoption Taxpayer Identification Number (ATIN) application. Use definer "T" and the Primary or Secondary SSN.

  2. Taxpayers are required to list a TIN for each adoptive dependent child to claim the exemption. These taxpayers can apply for an Adoption Taxpayer Identification Number (ATIN) for that child. Applicants must apply to the IRS using Form W–7A, Application for Taxpayer Identification Number for Pending U. S. Adoptions. A Form W-7A cannot be used if the child is not a U.S. citizen.

  3. The Austin Submission Processing Campus will process the Form W–7A application and will issue the ATIN upon receiving a complete signed application and valid documentation.

  4. The ATIN is a temporary number normally used as a dependent TIN only until the applicant obtains an SSN for their adoptive child. In only one circumstance can an ATIN be valid as a primary TIN. That is when a Form 8615 is attached.

  5. The taxpayer may not use the ATIN to qualify for EIC or ESP.

  6. ATINs are in the same format as an SSN or an ITIN. The format is 9XX-93-XXX.

    1. The ATIN must begin with the digit "9" .

    2. The fourth and fifth digit must be "93" .

    3. The last four digits must be assigned in ascending sequential order.

  7. If a dependent TIN is missing and a notation such as "ATIN applied for" is indicated in the dependent's social security number area of Form 1040/A, line 6c, then:

    1. Code & Edit will detach the Form W-7A and route it to Austin for processing. Code & Edit will leave a working trail notation, such as "Detached W-7A" in the margin.

    2. Research CC ATINQ to determine the status of the ATIN application. If ATINQ shows status "A" , enter the ATIN in the appropriate dependent TIN field. If ATINQ shows status "S" (ATIN Unit corresponding for additional info), "R" (Rejected), continue processing the return without the dependent TIN.

    3. If Error Code 010 generates, disallow the dependent exemption without a TIN.

    4. For refund returns only, input the STAT-DT on ATINQ into Field 02RPD.

  8. In addition to the dependency exemption, the ATIN also qualifies the taxpayer to claim the Adoption Credit, Child Tax Credit, and the Credit for Child and Dependent Care Expenses. However, the taxpayer is not entitled to EIC or ESP for any child using an ATIN.

  9. ATIN's status will be updated on the DM–1. When the filer notifies the IRS of the child's Social Security Number, the ATIN unit will input the Social Security Number into the database and it will delete the ATIN on the DM-1.

Command Code BMFOL

  1. Command Code BMFOL is used to research nationwide entity and tax data posted to the Business Master File.

Command Code CFINK

  1. Command Code CFINK is used to research the Centralized Authorization File (CAF) for Power of Attorney (POA).

Command Code CMODE

  1. Command Code CMODE is used to access a database at another campus.

Command Code COMPA

  1. Command Code COMPA is used to manually compute interest and certain penalties (e.g., Failure to Pay, Estimated Tax).

Command Code CRECT

  1. Command Code CRECT is used to enter a correction.

  2. Command Code CRECT will be valid after an error has been displayed in response to the use of Command Codes GTREC or GTSEC.

Command Code DLSEC

  1. Command Code DLSEC is used to delete a section from the data record.

    Note:

    Required sections cannot be deleted (i.e., 01, 02, 03, 04, 05).

Command Code DUPOL

  1. Command Code DUPOL is used to access the duplicate TIN database and provides duplicate Social Security Number (SSN) data.

Command Code EFTPS

  1. Command Code EFTPS is used to research Electronic Federal Tax Payment System (EFTPS).

Command Code ENMOD

  1. Command Code ENMOD is used to request the Entity Module for a specific SSN.

Command Code ENREQ/INCHG

  1. Command Code ENREQ, which defaults to INCHG, is used in requesting an entity update of the Master File (i.e., TC 000, TC 013).

Command Code ENREQR/IRCHG

  1. Command Code ENREQR, which defaults to IRCHG, is used to merge invalid and valid segments of Master File when the taxpayer has provided supporting documentation or an adequate explanation of name discrepancies (i.e., TC 016).

Command Code EREMP

  1. Command Code EREMP is used to change records on the ERS Employee Name and Organization File.

Command Code ERINV

  1. Command Code ERINV is used to research a DLN or TIN on the ERS Control File.

Command Code ERSSD

  1. This command code is used by managers to sort ERS batches. It replaces the IAT ERS Batch Sorter Tool.

Command Code ERUTL

  1. Command Code ERUTL is used to display several different areas in the ERS record for research purposes.

Command Code ERVOL

  1. Command Code ERVOL is used to obtain the actual count of records in current Workable Inventory or the status of an error record.

Command Code ESTAB

  1. Command Code ESTAB is used to request documents (i.e., returns) from files.

Command Code FFINQ

  1. Command Code FFINQ is used to research for a Document Locator Number (DLN) using the SSN.

Command Code FINDE

  1. Command Code FINDE is used to research for the business' name and address information, using the Employer Identification Number (EIN).

Command Code FINDS

  1. Command Code FINDS is used to research for the taxpayer's name and address information, using the Social Security Number (SSN).

Command Code FRM49

  1. Command Code FRM49 is used to input Transaction Code (TC) and Closing Code (cc) to finalize or satisfy the requirement for filing a tax return (i.e., TC 599 with CC 18 is used to indicate that the original return posted to the wrong module and will be reprocessed to the correct module).

Command Code GTREC

  1. Command Code GTREC is used to access any of the following:

    1. First error record in an ERS error block.

    2. A specific record in the Workable Suspense Inventory.

    3. Re-display the previous uncorrected error display of a record after performing IDRS operations for the error.

    4. Previous uncorrected error display is desired.

Command Code GTSEC

  1. Command Code GTSEC is used to obtain or enter a specific section on an ERS record.

Command Code IMFOL

  1. Command Code IMFOL is used to research nationwide entity and tax data posted to the Individual Plans Master File. Command Code IMFOL is updated at least one day before Command Code TXMOD and may contain transactions that have not yet posted by IDRS to TXMOD.

Command Code INOLE

  1. Command Code INOLE is used to access the National Account Profile (NAP) which contains selected entity information for all Master File (MF) accounts.

Command Code INTST

  1. Command Code INTST is used to request accruals of interest and Federal Tax Deposit (FTD) penalty to a specific date.

Command Code IRPTR

  1. Command Code IRPTR is used to request either online or hardcopy IRP transcripts from Information Returns Master File Processing (IRMF). This command code contains income information, entity data, cross reference information, and DOD/DOB information.

Command Code LETER

  1. Command Code LETER is used to initiate taxpayer correspondence.

Command Code LPAGD

  1. Command Code LPAGD is used to delete a letter.

Command Code MFREQ

  1. Command Code MFREQ is used to request an entity module and/or tax module from Master File.

Command Code MFTRA

  1. Command Code MFTRA is used to request transcripts from a taxpayer's account.

Command Code NAMEE

  1. Command Code NAMEE is used to search for EINs for both Primary and Doing- Business-As (DBA) names.

Command Code NAMEI

  1. Command Code NAMEI is used to search for TINs for the Primary and Secondary filer.

Command Code NAMES

  1. Command Code NAMES is used to search for TINs for both the Primary and Secondary filer.

Command Code NWDLN

  1. Command Code NWDLN is used to assign a new DLN to a record. This action deletes the original record.

Command Code QRSEL

  1. Command Code QRSEL is used to select a record which will remain in ERS (1 day) for Quality/CARE review and possible correction.

Command Code REINF

  1. Command Code REINF is used to research the IDRS Refund Information File (RFIF).

Command Code REQ54/ADJ54

  1. Command Code REQ54, which defaults to CC ADJ54, is used to adjust tax modules.

Command Code REQ77/FRM77

  1. Command Code REQ77, which defaults to CC FRM77, is used to input Individual Master File (IMF) miscellaneous transaction (i.e., TC 971 AC 010 indicates an amended return has been sent to Adjustments).

Command Code RFUND

  1. Command Code RFUND is used to generate a manual refund to the taxpayer.

Command Code RJECT

  1. Command Code RJECT is used to delete a record from ERS.

Command Code RTFTP

  1. Command Code RTFTP is used to request a sanitized version of CC RTVUE for printing and mailing to the taxpayer.

Command Code RTVUE

  1. Command Code RTVUE is used to display the line items transcribed from the Form 1040 series and their accompanying schedules and/or forms as the returns are processed at the campuses.

Command Code SCFTR

  1. Command Code SCFTR is used to research the Service Center Control File (SCCF) for the status of a block DLN.

Command Code SFDISP

  1. Command Code SFDISP is used to view a listing of the command codes in an employee's profile.

Command Code SSPND

  1. Command Code SSPND is used with an ERS Action Code to place a record in suspense status.

Command Code STAUP

  1. Command Code STAUP is used to suppress balance due notices that are normally sent to the taxpayer.

Command Code SUMRY

  1. Command Code SUMRY is used to request a summary of an account on IDRS for a particular TIN and File Source.

Command Code TERUP

  1. Command Code TERUP is used to delete erroneous transaction (i.e., tax adjustments).

Command Code TRDBV

  1. Command Code TRDBV is used to view the transcribed and corrected data from Modernized e-File and paper returns for tax year 1998 and later.

Command Code TRPRT

  1. Command Code TRPRT is used to order electronic filed tax returns.

Command Code TRERS

  1. Command Code TRERS is used to view the transcribed and corrected data from the Modernizede-File and display the MeF Return.

Command Code TXMOD

  1. Command Code is used to request all of the tax module information for a specific tax period on the Taxpayer Information File (TIF).

Command Code UPCAS

  1. Command Code UPCAS is used to add or delete history items posted on the Generalized Unpostable Framework (GUF) database.

Command Code UPDIS/UPRES

  1. Command Code UPDIS, which defaults to CC UPRES, is used to correct unpostables.

Command Code UPTIN

  1. Command Code UPTIN is used to research open and closed cases on the GUF database.

Command Code URINQ

  1. Command Code URINQ is used to research credits in the Unidentified Remittance File (URF).

Command Code XSINQ

  1. Command Code XSINQ is used to research credits in the Excess Collections File (XSF).

Integrated Automation Technologies (IAT)

  1. IAT provides tools to IRS employees that simplify research, reduce keystrokes and increase the accuracy of regular work processes. When used with IRS systems, it eliminates repetitive typing and assists in making precise decisions. IAT tools improve efficiency, productivity and quality by performing some functions automatically. Through more complex programming, they are designed to reduce fallout to other areas.

  2. Managers will ensure employees understand that the use of IAT is mandatory and will verify that employees have access to all the tools needed for their duties. They will make sure that all employees receive training on the use of IAT.

    Note:

    IDRS will be used when IAT is unavailable.

Error Resolution System (ERS) Action Codes

  1. This subsection of the manual provides information about the Command Codes used in ERS.

  2. Information in this subsection includes the following:

    • General information

    • Correspondence Action Codes

    • Routing Action Codes

    • Research Action Codes

    • Delete Action Codes

    • Other ERS Action Codes

    • Management Suspense Action Codes

General Information

  1. An ERS Action Code must be entered with CC SSPND. An ERS Action Code is a three-digit numeric code that identifies the reason for suspending or rejecting a record.

  2. ERS Action Codes are assigned to records by tax examiners in the following functional areas:

    • Code & Edit

    • ISRP

    • Error Correction

    • Suspense Correction/Rejects

    Note:

    Some Action Codes are computer generated when an unprocessable condition is identified.

  3. Suspense records will remain in the Unworkable Suspense Inventory until requested to be placed in the Workable Suspense Inventory (via the ERS Control File, or until the Suspense Period expires, whichever is first).

Correspondence Action Codes

  1. Enter CC SSPND with the appropriate Action Code (21X) to suspend the record.

    1. See the specific sections in IRM 3.11.3 Individual Income Tax Returns (C&E), IRM 3.12.3, Individual Income Tax Returns (ERS) for instructions for initiating correspondence.

    2. Initiate second correspondence only when authorized by IRM 3.12.3.

  2. Correspond for ALL missing forms and schedules prior to sending returns to other areas such as, IVO or EXAMS. Resuspend returns if the original suspense code has changed.

    Note:

    Re-suspend the return after correspondence if the case needs to go to another area for review.

  3. Correspondence can be initiated via Form 3696, Form 3696–A, Form 6001 or Form 6001–A, Form 13975, Form 13900 or by using IDRS directly.

Routing Action Codes

  1. When a document must be referred to another area of the campus before it can be processed, enter CC SSPND with the appropriate Action Code and attach Form 4227 with an explanation.

  2. In some cases, research must be performed before forwarding the document.

    1. A transcript is required before a document is sent to Statute Control.

    2. Research must be performed before sending a document to Entity. This includes CC INOLE.

  3. Any processing center can process electronically filed (MeF) returns with command code (CC) CMODE. CMODE allows an IDRS user access to different IDRS databases. To change modes, enter CMODE and a two-digit abbreviation for another campus. Refer to Job Aid Book 2515-015 for procedures for the use of CC CMODE.

    1. Note:

      Campus will perform REQ54 290.00 to send MeF Replies to their Campus files.

  4. If you cannot close an MeF return and have to suspend it, create a paper trail by following these steps.

    1. GTSEC 01 of the return in question and print the entity.

    2. Write the number of the action code used for suspension, the error code with the instruction for suspension, and the reason for the suspension on the print. Type or write the information on the print of section 01. For example: AC 211, EC 118 or Correspond for W-2.

    3. Complete Form 6001, Form 13975 and Form 13900 Correspondence Action Sheet, or Form 4227, Intra-SC Reject or Routing Slip, and attach it to the print of Section 01.

    4. Place the print in the area designated for MeF suspense.

Research Action Codes

  1. After a thorough check of the document and all attachments, research is the first step in resolving items such as:

    • Missing or Invalid TIN

    • Excess Remittance

    • Missing Name and/or Address

  2. Other information that is frequently secured by research includes the following:

    • Correct Tax Period

    • Estimated Tax Payments

    • Filing Requirements

  3. Attach Form 4227 and note the research to be performed on the document if the Action Code doesn't fully explain.

Delete Action Codes

  1. If it is determined that a document should be renumbered, re-input, voided, or transferred to Non-Master File or AUSPC (International) use CC SSPND with Action Code 6XX.

  2. Action must be taken immediately to suppress generation of delinquency notices before suspending a return to be renumbered or reentered because the MFT or tax period was in error.

Other ERS Action Codes

  1. Action Code 410 must be used with discretion. If you determine that special expertise is needed to properly resolve the error, enter CC SSPND with Action Code 410.

    1. Use only as a last resort or when authorized by your supervisor.

    2. Use of this code should be closely monitored by management.

  2. Action Code 360 is used to suspend Form 1040NR and Form 1040 returns for verification of credits claimed for tax withheld on Form 8288-A. All credits must be verified using the instructions in IRM 3.21.25.15, International Returns and Document Analysis - Miscellaneous Tax returns, credit verifying Form 8288-A FIRPTA Credits

  3. Action Code 470 should only be used when instructed by management.

  4. Action Code 480 is used to suspend an early filed return.

  5. Action Code 490 is used to suspend a record when the system cannot identify an error. See IRM 3.12.37.13.2, Error Messages, before assigning Action Code 490.

  6. Suspend with Action Code 511 when the document for the error displayed is missing from the block during error correction.

  7. See Exhibit 3.12.37-2 for a complete list of ERS Action Codes.

Management Suspense Action Codes

  1. Management may direct that certain records will be held to await further processing instructions.

  2. Some reasons for suspension are in the following list:

    1. A Submission Processing Campus computer program bug exists for a particular type record.

    2. Master File programs are not yet available or are incorrect for a specific type record.

    3. Legal or administrative complications exist that indicates this specific type of record should not be processed.

Types of Error Resolution System (ERS) Errors

  1. This subsection of the manual lists the procedures to be followed when resolving types of error resolution errors.

  2. Information in this subsection includes the following:

    • Error displays and corrections

    • Error messages

    • ERS record headings

    • Priority errors

Error Displays and Corrections

  1. Each field is identified by an Alpha/Numeric Field Designator displayed before that field.

  2. Negative values will be indicated by a minus sign (-) following the amount. If any amount is negative on a field that can be either positive or negative, the minus sign must be entered.

  3. Decimal points display for dollars and cents fields. The cents digits are not displayed for dollars only fields; two asterisks (**) display in the cents position. ( Figure 3.12.37-37 )

    Note:

    It is not necessary to enter a decimal point when entering an amount.

  4. Corrections are entered starting with the second position of the field after the Field Designator. If fewer than the maximum number of positions is required, the program will automatically right justify the digits.

  5. Do not enter more than the number of positions allowed for a particular field. If more data is entered, the overflow characters will display on the input screen, but they are dropped when the field is added to the record.

    Note:

    This is especially important for the TIN, name, and address fields.

  6. Corrections can be made to a displayed field by overlaying only the digit(s) in error and not reentering the entire field.

    Figure 3.12.37-37

    This is an Image: 33710048.gif
     

    Please click here for the text description of the image.

Error Messages

  1. "ERROR BLOCK COMPLETED" displays after the last error record in a block is worked.

  2. "SUSPENSE RECORD COMPLETED" displays after a suspense record is worked or resuspended.

  3. "DLN NOT IN ERS" displays when CC GTRECW is entered with a DLN (fourteen -digits with hyphens) that is not in ERS.

  4. "DLN HAS NOT BEEN WORKED" displays when CC GTRECW is entered with a DLN (14 digits with hyphens) that has not been worked.

  5. "DLN NOT IN ERROR" displays when CC GTREC is entered with a DLN that is not in Error Inventory.

  6. "DLN NOT IN WORKABLE SUSPENSE INVENTORY" displays when CC GTREC is entered with a DLN (14 digits with hyphens) that is not in Workable Suspense Inventory.

  7. "INVALID COMMAND" displays when any of the following conditions is present:

    1. CC GTREC or ERINV is entered without a complete DLN (14 digits or 12 digits "XX" for serial number with hyphens).

    2. CC ACTVT is entered without a complete DLN (14 digits with hyphens).

    3. CC GTSEC or DLSEC entered without a valid section number (two digits).

    4. CC SSPND, NWDLN or RJECT is entered without a valid Action Code (three digits).

    5. CC NWDLN is entered with an invalid DLN.

    6. CC ERINV is entered without a nine-digit TIN.

  8. "REQUIRED SECTION" displays when CC DLSEC is entered attempting to delete a required section or if the section contains the remittance (payment) field.

  9. "INVALID SECTION" displays when CC GTSEC or DLSEC is entered with an invalid section.

  10. "INITIALIZATION INVALID — ENTER DLN" displays when CC GTREC is entered without a DLN.

  11. "INITIALIZATION INVALID" displays when any CC SSPND, NWDLN, or RJECT is entered without an Action Code.

  12. "INVALID PARAMETER" displays when CC ERVOL is entered without a valid status code.

  13. "INVALID STATUS CODE" displays when CC ERVOL is entered with an invalid status code.

  14. "UNRECOGNIZABLE FIELD ERROR - CONTACT SUPERVISOR" displays when a field error cannot be displayed and/or contains invalid data.

    Note:

    To resolve this condition enter CC GTSEC 01, go to the bottom of the screen, and transmit. If this does not resolve the Unrecognizable field error "RJECT 630" the document and re-input the document to resolve the Unrecognizable field error. All MeF unrecognizable field errors must be renumbered using "RJECT 610" .

  15. "NO ERROR IN RECORD-CONTACT SUPERVISOR" displays when there is no error set.

  16. "TRANSFERRED" displays when CC ACTVT is entered with a complete 14-digit DLN (include hyphens) to transfer a record from Unworkable Suspense Inventory to Workable Suspense Inventory.

  17. "IN WORKABLE SUSPENSE" displays when CC ACTVT is entered with a complete 14-digit DLN (include hyphens) and the record is already in Workable Suspense Inventory.

  18. "IN ERROR INVENTORY" displays when CC ACTVT is entered with a complete 14-digit DLN (include hyphens) and the record is already in Error Inventory.

ERS Record Heading

  1. Every error display will show the following data as part of the standard display heading ( Figure 3.12.37-38 ):

    • Document Locator Number (DLN)

    • Primary Taxpayer Identification Number (TIN) (Social Security Number or "SSN" for IMF)

    • Name Control/Check Digit

    • Current Processing Date

    • Remittance Processing System (ISRP) Indicator

    • Error Resolution System (ERS) Status Code

    • Taxpayer Notice Code (TPNC)

    Figure 3.12.37-38

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    Please click here for the text description of the image.

  2. All TPNCs assigned to a record will display on the third line of all subsequent displays for the record. A maximum of five TPNCs may display. This field is not correctable directly, but the TPNC can be deleted by creating a higher priority error.

  3. Compare the header information to the document. If a mixed data situation exists (information from two taxpayers' returns display on the error record under the same DLN or the DLN does not match the return on the screen display), stop processing. Give the block of work to your supervisor. Management will make the determination if the mixed data can be corrected via the terminal screen displays or have the block deleted and re-input.

Priority I Errors—Action Code/Unpostable Code

  1. All records with an invalid Action Code assigned by Code & Edit or Action Code 001 will be placed in the Error Inventory and displayed as a Priority I Error.

  2. Records with a valid Action Code, assigned by Unpostables or computer generated Action Codes, will be assigned to a Suspense Inventory and will be displayed as a Priority I Error.

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

Error Correction
  1. If suspense action is required, enter CC SSPND with the correct Action Code, then transmit.

  2. If no suspense action is required, enter numeric "000" in the Clear Field (CL), and transmit.

  3. If Action Code 001 displays, this record must be entered by Error Resolution.

    1. Enter CC GTSEC for each record section that should contain data. Add the required data.

    2. After all of the sections have been entered, enter C in the Clear Field, and the record will be subjected to normal validity checks.

    Note:

    This condition occurs whenever the BOB Resolution function has added a document to a block by entering only the name control and TIN.

Suspense Correction
  1. If a correction is required, enter CC GTREC with a complete DLN.

    Caution:

    If correspondence is received after the due date plus the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the return, enter the Correspondence Received Date in Field 02RPD. Refer to IRM 3.12.2 (Section 02)

    1. Enter CC GTSEC with the appropriate section number and enter the data received.

    2. After all the data has been entered, enter C in the Clear Field and the record will be subjected to normal validity checks.

  2. If no correction is required, enter CC GTREC with a complete DLN and enter C in the Clear Field.

  3. If a correction is required to computer-generated Action Codes, refer to the appropriate IRM.

    1. Action Codes 700, 711–715, Duplicate DLNs, enter "C" in the Clear Field and the record will be subjected to normal validity checks.

    2. Action Code 900, Unpostables, refer to IRM 3.12.37.19.4.

    3. When all the data has been entered, enter "C" in the Clear Field and the record will be subjected to normal validity checks.

  4. Code & Edit edits Action Code "430" when a return is received with a statement or an amount is present on or near line 65 indicating the taxpayer wants the credit applied to the spouse's account. The return is FSC 3 or FSC 6 and there is a statement or schedule present showing how estimated payments are to be allocated.

    1. Research to determine correct taxpayer/spouse

    2. Research to verify credit amount is correct

    3. Follow taxpayer's intent/request and transfer the credit as requested.

    4. Ensure the amount is correct before inputting credit transfer

    5. Follow IRM 3.12.3729.7 for Credit Transfer instructions

    6. If unable to determine taxpayer's intent, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    If the taxpayer requests a credit transfer input the credit transfer first and hold the return to allow the credit transfer to post. After the credit transfer posts work the return.

  5. Code & Edit edits Action Code "460" when a return is received with a credit card or credit card information. Take the following actions when the suspense period expires on these returns held under Action Code "460" . Research to determine:

    1. If the taxpayer's tax per return is full paid as indicated by the TC 670, then input CCC "M" and release the return for further processing.

    2. If the taxpayer's tax per return is only part paid as indicated by the TC 670, then release the return for further processing. Do not enter CCC "M" .

    3. If TC 670 is not present, then release the return for further processing. Do not enter CCC "M" .

Priority II Errors—Section Errors

  1. Most edit, missing section, and terminus errors should be eliminated by the Integrated System Remittance Processing (ISRP).

  2. The following conditions may be present if normal ISRP validity checks have been bypassed:

    • Edit errors

    • Missing required section or questionable section

    • Terminus errors

  3. All transcribed fields, except the ERS Action Code and the Remittance (Payment Received), will be displayed in columnar format with or without data. The error type will also be indicated for ISRP Problem Code errors. Only one section (error) will be displayed at a time.

  4. Any individual section excluding computer generated fields and the Action Code will be present. (The Action Code is an uncorrectable field except as defined for CC SSPND and RJECT.)

Edit Error
  1. "Edit error" indicates a section with an error detected by ISRP.

    1. Literal = DDES "1" —Split screen transmission. Key Verifier attempted to change the Check Digit, Key Verifier changed four or more digits of the Primary TIN, or the Original Entry Operator indicated that a required section was missing.

    2. Literal = DDES "3" —Invalid section ending point.

    3. Literal = DDES "4" —Invalid field length.

    4. Literal = DDES "5" —"Questionable Section" (A section was entered twice or entered out of sequence by ISRP.).

  2. All fields of the section must be examined when this condition exists. If Section 01 of a return is coded, examine the tax base data section (via CC GTSEC) for an error to ensure that the return is for the taxpayer whose name is in Section 01. Correct the section. Once the section is correct or if no corrections are necessary, transmit.

Missing Required Section and Questionable Section
  1. "Missing required section" indicates a missing section determined to be required, but missing.

  2. To correct the "missing required section" condition:

    1. If no data is present for the missing section, see IRM 3.12.3 for initiating research or correspondence.

    2. After initiating research or correspondence, enter CC SSPND and the appropriate Action Code to suspend the document.

    3. If data is present for the missing section, enter the data for the missing section with CC GTSEC. After entering all the data for the section, transmit.

  3. Take the following actions to correct a "questionable section" :

    1. Verify and enter all of the data for the displayed sections.

    2. Transmit when all the data is correct.

Terminus Error
  1. "Terminus Error" indicates a section with variable length fields containing an erroneous size field or otherwise being of erroneous size.

  2. All fields of the section must be examined when this condition exists.

    1. Make the necessary corrections to the record.

    2. Once the section is correct, or if no corrections are necessary, transmit.

Priority III Errors—Field Errors

  1. Definition—Any field failing to meet the requirement(s) for that field (and that field only) will be shown as a Priority III Error. Consistency and/or relationships with other fields will not be a factor. Individual field validity errors to be bypassed after initial consideration will be shown as Priority IV Errors. Some reasons for field errors include:

    • Non-numeric character in a numeric field ( Figure 3.12.37-39 )

    • Non-alphabetic character in an alpha field

    • Blank space in a number field

    • Blank in the first position of an alpha field

    Figure 3.12.37-39

    This is an Image: 33710050.gif
     

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  2. Display—All fields with a Priority III Error will be displayed in the order encountered in the record. The Action Code and TPNCs will never be displayed as a Priority III Error. An overflow field is identified by all question marks for a money field or a single pound sign in the last position of a name line.

  3. Correction:

    1. Every field displayed is in error. See the appropriate section of IRM 3.12.3 for the specific field.

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

    3. Enter the correct data for each field displayed.

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

    5. Correct each field displayed.

    6. Transmit.

    Note:

    If "Unrecognizable Field Error" GTSEC 01, go to the bottom of the screen and transmit.

Priority IV Errors—Math/Consistency Errors

  1. Any valid field used in any computation in which the result is inconsistent with or contradictory to any other valid field or fields will have Error Code 001–999 assigned to it by the computer shown as Priority IV Error.

  2. Using valid fields, if the result of the computer computation of an amount differs from that which is contained in the record, the computation fields will be shown as a Priority IV Error.

Display
  1. Priority IV errors will be displayed with the Error Code for the specific error determined by each return program. The screen display will show the error code assigned and the fields needed to make the necessary correction. ( Figure 3.12.37-40 )

    Figure 3.12.37-40

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  2. The first correction that must be made for each generated Error Code is to compare the displayed fields with the return. If edited or transcribed incorrectly, follow specific instructions in IRM 3.12.3.

  3. For all math error codes, a field labeled "NC" followed by XXX will generate.

    1. IMF can generate a maximum of 5 TPNCs; the fifth TPNC must be TPNC 100.

    2. Each math error code will have limited TPNCs which will be valid.

    3. If an invalid TPNC is entered, the same math error code will re-display.

    Caution:

    The entry of a "TPNC" in the Taxpayer Notice Code Field will prevent any other correction on the same screen display.

  4. Previously assigned TPNCs will be displayed on line 3 preceded by literal "NC" . If determined that the generated math error code was the direct result of a previous error (resolved by a TPNC), enter "Any previously assigned TPNC" .

    Note:

    It is important that the taxpayer be advised of all errors that are present on the return. Precaution should be used when entering "Any Previously Assigned TPNC" .

  5. A field labeled "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed.

    1. This field is located on line 4 to the right of CC CRECT.

    2. All coding and transcription errors on displayed fields must be corrected and IRM procedures applied before entering "C" in the Clear Field.

      Caution:

      The entry of "C" in the Clear Field will prevent any other correction on the same screen display.

Correction
  1. All errors must be resolved by eliminating the error, entering the Clear Code or a TPNC.

  2. If a correction causes an error code with a higher priority than the previous error code, all Clear Codes and TPNCs already entered for a lower priority error code will be deleted. All lower priority error codes still present in the record will be re-displayed for resolution, even if previously cleared with a TPNC or Clear Code.

  3. If a correction causes a cleared error code to no longer be in error, the TPNC or Clear Code for that error code will be deleted and all TPNCs and Clear Codes assigned to all lower priority (higher numeric) error codes will also be deleted. Any remaining error codes, previously cleared but now no longer cleared, will be re-displayed.

  4. Error or Suspense records from a previous day's workload that are unfinished or suspended will have all previously assigned TPNCs and Clear Code eliminated.

Receiving Rejected and Suspended Documents

  1. This subsection of the manual lists the procedures to be followed when receiving rejected and suspended documents.

  2. Information in this subsection includes the following:

    • Timeliness of processing rejects

    • Sources of rejects

Timeliness of Processing Rejects

  1. Rejected Documents — Corrective action for items in the work inventory should be completed within 10 work days. Correspondence (Letter Input) should be within 10 work days for items requiring taxpayer contact. ERS Workable Suspense items should be worked or resuspended within 5 work days.

  2. The above time frames do not apply while processing is unworkable for:

    • Taxpayer contact

    • Accounting or Adjustment action

    • Prescribed re-sequencing action

    • ECC-MTB Transcripts

    • Entity Control Suspense

    • Extensive research

    • Examination suspense

    • Review by Fraud Detection

    • Documents not readily available in campus

    • Control by Technical

    • Bankruptcy Suspense

  3. Aged reject cases (over 60 days) should be worked as quickly as possible and should not exceed twenty percent of the inventory. All cases should be completed within 120 days.

  4. Beginning with the sixth week of receipts (January through February 15), combined Rejects should not exceed the previous four weeks receipts (excluding current cycle's receipt).

    Exception:

    During the full paid peak (June–August), inventory should not exceed the previous six weeks.

  5. In order to prevent returns from being sent to files in error all completed rejects worked should be checked using CC ERINV for a status prior to releasing the returns to files. Only release returns to files that are no longer in an ERS suspense status. Any returns reflecting a ERS status should be returned to the Rejects function for resolution.

Sources of Rejects

  1. Records are identified and coded for rejects or ERS suspense from several different sources. These sources are:

    • Code & Edit

    • Error Correction

    • Unpostables

  2. Records are automatically sent to ERS suspense because of a duplicate block DLN.

Code & Edit Function
  1. A tax examiner has determined that research or correspondence is required on a numbered document.

  2. An Action Code is entered on the source document and transcribed as part of the record. A valid Action Code will place the record in the unworkable suspense inventory for a predetermined number of days or in the workable suspense inventory to be resolved immediately.

Error Correction Function
  1. A tax examiner has determined that additional information is needed for processing.

  2. The ERS examiner will enter CC SSPND with a valid Action Code.

  3. An error correction tax examiner will enter Action Code 3, on the register.

Unpostables Function
  1. Certain unpostable records, determined to be uncorrectable on the Generalized Unpostable File (GUF), are rejected and automatically established on a reject register or an ERS workable suspense record.

  2. A tax examiner nullifies an unpostable document with Unpostable Resolution Code (URC) "8" .

Unpostables

  1. This subsection of the manual lists the procedures to be followed when receiving and correcting unpostables.

  2. Information in this subsection includes the following:

    1. Receiving rejected and auto voided unpostables

    2. Types of rejected unpostables

    3. Researching rejected unpostables

    4. Applicable unpostables and their various correction procedures

    5. Research IRM 3.12.38, 3.12.179 and 3.12.279 for UPC 300 and 400 series.

    6. Unpostables – New available Tuesday; Closing Tuesday (CADE)

  3. (CADE) IMF will identify unpostable criteria daily, but the files will not be processed by GUF until the weekly cycle. This may result in subsequent transactions posting in the same cycle the could resolve the unpostable criteria for the earlier transaction marked as unpostable.

Receiving Rejected Unpostables

  1. Unpostable records are received directly from the Generalized Unpostable Framework (GUF).

  2. Each reject unpostable (or batch of rejected unpostables) will include an explanation of the unpostable condition, the suggested action, and the document or return. Normally this information is shown in an Unpostable Routing Slip (Form 8749) or an attached CC UPRES print. Any document or return received without a satisfactory or with a conflicting explanation will be referred to unpostable for clarification. ( Figure 3.12.37-41 )

    Figure 3.12.37-41

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    Please click here for the text description of the image.

  3. All nullified records are listed on the Nullified Distribution Listing (GUF–55–47) by the area that is to receive the documents. The Nullified Distribution Listing provides an audit trail for all nullified closures (URC "1" , "2" or "8 " ).

  4. Items nullified with Unpostable Resolution Code "8" will appear on a listing titled "Nullified Distribution Listing—Rejects " . When receiving 8 coded returns use the GUF-55-47 to verify.

  5. The Reject function will receive a copy of the listing for all URC "8" closures. Cases may also be referred back to the Unpostable Function for clarification.

Types of Rejected Unpostables

  1. Rejected Unpostables are divided into four categories:

    • Statute Cases

    • Batch Rejects

    • Missing Documents

    • Unpostable Resolution Code (URC) "8"

Statute Cases
  1. Statute cases are assigned directly to the Statute Unit, but will remain in the Unpostable inventory until the case is resolved by the Statute Unit or URC 8 coded into Reject/Suspense inventory.

  2. In order for the Statute Unit to clear a case where the document is missing, rejects must correspond to the taxpayer for the missing information.

    1. Initiate taxpayer correspondence requesting a copy of the return using Letter 282C. Be sure to ask for all attachments and original signatures.

    2. If there is no reply from the taxpayer, refer to No Reply Procedures.

    Note:

    Generally the Statutes Unit will not clear any potential statute documents without enough information (i.e., to establish a tax liability amount) or a return, and/or correspondence without an original signature agreeing to that liability. (A photocopy of a signature is not acceptable).

  3. After reviewing the documents, the Statute Unit will make corrections to the files available to them on the GUF screen. The Statute Unit will URC 8 the case to be worked by Rejects/Suspense.

Batch Rejects
  1. Certain unpostable conditions are identified and corrected for several documents at the same time. These may be received with a single Unpostable Routing Slip for the entire batch of unpostable documents.

Missing Documents
  1. Unpostables is required to conduct the initial research for missing documents and three additional follow-up searches; one after the initial search and two at approximately 14 day intervals.

    1. When a record is rejected (after the third search), all research documentation is routed to Rejects to await the outcome of the fourth search request initiated by Unpostables. An unpostable routing slip is attached to indicate the reason for the unpostable and the corrective action (when appropriate) if the document is located, reconstructed or resubmitted.

    2. When additional information or action is needed to process the return and Unpostables is unable to locate the correct taxpayer entity information, and the record has been processed with full entity, then Rejects/Suspense will be able to correspond or request a copy of the return.

  2. If all of the procedures in the proceeding (1) a. and b. have been addressed with no resolution, make copies of all the ERS screen displays (all sections with entries) and proceed as follows:

    If the return is Then
    A] A non-remittance Enter CC RJECT with Action Code 670.
    B] A remittance If transferring the money to Unidentified, enter CC NWDLN with Action Code 670 and the literal "URF" . If transferring to Excess Collection, use the literal "EXC" .
Unpostable Resolution
Code "8"
  1. URC 8 is used by Unpostables Tax Examiner when it is determined the document must be corrected by Rejects/Suspense. A separate unpostable routing slip will be attached with an explanation of the unpostable condition and the proposed resolution (corrective action). Resolution Code 8 documents may originate with instructions from Unpostables, Entity, Fraud Detection Center, or Statutes.

  2. The Unpostable units will "8" code duplicate TC 841 to Rejects. The Unpostable units will identify the duplicate TC 841. e Rejects 630 (4–0) and prepare a Form 4028 (0–2) for the duplicate TC 841, this will delete the item from SCF. Route the case and Form 4028 under cover of a Form 3210 to Accounting.

  3. Revalidate all returns before correcting the Unpostable record by using GTSEC 02 and entering "R" in Field 02RI.

Researching Rejected Unpostables

  1. Sources of information on unpostables activated and case status, in addition to IDRS Command Codes are:

    • GUF–11–40—New Unpostable Report (reports are separated by Master File)

    • GUF-55–47–Nullified Distribution Listing

    • GUF–57–40—Closed Unpostable Register

    • Unpostable Log Book or Listing

  2. GUF–11–40, New Unpostable Report is generated each week for all unpostables printed in order by Master File, Category Code and DLN and contains the following information:

    • Sequence Number

    • Document Locator Number (DLN)

    • Repeat Indicator

    • Taxpayer Identification Number (TIN)

    • Name Control or Check Digits

    • MFT

    • Tax Period

    • Transaction Code (TC)

    • Cycle of Unpostable

    • Unpostable Code

    • Master File Name Control if applicable

  3. The Cumulative Closed Unpostable Register lists all unpostables which have been closed during the current processing year.

    1. It is used as the audit trail for closed unpostables.

    2. A separate list is provided for each Master File, and cases for each list are sorted in unpostable TIN order.

    Note:

    If a Field Error occurs with an A in Field 05PC ( Preparer's Code Field) delete the A.

Receiving Autovoid Unpostables

  1. Rejects will be receiving certain unpostable returns directly from the GUF system.

  2. Unpostable returns routed to Rejects for correction by the unpostable unit or through Auto Void from GUF will need to be worked using the Error Resolution System by accessing the DLN document via command code GTREC on IDRS. Rejects tax examiners should follow the procedures in IRM 3.12.3 when resolving the unpostable returns.

  3. The ERS Priority I screen has been changed to display the Master File unpostable and reason code on all transactions with Action Code 900.

  4. For more detailed information on category codes reference IRM 3.12.32, Generalized Unpostable Framework (GUF).

  5. For more detailed information on Autovoid Unpostables reference IRM 3.12.179, (IMF) Individual Master File Unpostable Resolution.

Unpostable Code 126 RC 0

  1. This condition occurs when a TC 150 is input to a module containing TC 971 AC 121. TC 971 AC 121 is generated by the RICS DDB filter criteria.

Correction Procedures UPC 126 RC 0
  1. Verify and correct all Entity in Section 01.

  2. Follow instructions given by RICS unit to process the return and assign all applicable TPNCs.

  3. If Form 8749 (Unpostable Action and Routing Slip) is received from the Unpostable units review purpose for routing and make corrections. If purpose of routing slip not notated return Form 8749 to the Unpostable Unit.

Unpostable Code 127 RC 0

  1. Unpostable Code 127 is for invalid Area Office Code OR

  2. Occurs when TC 150/430, Entity Code is "1" (Long Entity) or "3" (Intermediate Entity) and the Area Office (AO) is invalid.

Correction Procedures UPC 127 RC 0
  1. Renumber the return with the appropriate AO.

Unpostable Code 130 RC 0
  1. This unpostable occurs when an input transaction contains information that causes a halt in the posting run.

Correction Procedures UPC 130 RC 0
  1. Compare the tax return with all fields on the screen.

  2. Verify the taxpayer's SSN, name, address and ALL money amount fields before transmitting. Ensure the AGI, total tax and withholding amounts are the same as the taxpayer's figures.

  3. If the debit module is $100,000,000 or greater, follow instructions in IRM 3.12.37.29.5.3 for cases over 100 million dollars.

Unpostable Code 136 RC 1 (Temporary SSN with Unallowable Claims)

  1. Occurs when TC 150 attempts to post with a Primary SSN starting with a "9" containing EIC Computer from Section 5 of the input return or containing a "1" in position one of Field 01EXC and/or a Personal Exemption.

    Note:

    Master File will bypass this check if the SSN is in the ITIN range (middle two digits are 50-65,70-88, 90-92, 94-99). Master File will bypass the exemption portion of the unpostable if the exemption positions verified field contains a 0 in position 1 or if the return contains RPC O.

Correction Procedures UPC 136 RC 1
  1. Research for the correct TIN/ITIN and name control of the taxpayer. Research to determine the correct last name of the taxpayer. Ensure the TIN/ITIN and last name/NC were transcribed correctly.

  2. IF the TIN/ITIN need correcting input correction using Section 01 as needed. If Name control is incorrect, verify correct Name control and update name control in Section 01. Ensure all corrective action is taken before proceeding.

  3. If either the primary or the secondary taxpayer has a TIN/ITIN/IRSN starting with a 9 ensure RPC A is removed from the Field 01RPC. Assign TPN 702 when EIC is limited to zero at EC 337 or EC 338.

  4. If the primary taxpayer has an IRSN, ensure RPC O is entered.

  5. If the TIN is invalid enter RPC O and if EIC is claimed enter RPC B.

  6. If Field 01EXV is needed to verify or disallow other dependents, enter 0 in the first position of Field 01EXV,

  7. Assign appropriate TPNCs when exemptions, EIC or other credits are disallowed.

Unpostable Code 137 RC 3

  1. Occurs when the money amount of the TC 898 is greater than the money amount of the matched TC 840/846. If the module contains multiple TC 898/899 transactions with the same date, these must be netted when performing this check.

  2. The split refund indicator on the TC 898 is not the same as the split refund indicator on the matched TC 846 with the same date.

Correction Procedures UPC 137 RC 3
  1. Research IDRS CC TXMOD and correct the split refund indicator on the TC 898 to match the split refund indicator on the TC 846.

  2. Ensure the money amounts and date match for the split refund indicator on the TC 846 and TC 898

Unpostable Code 138 RC 0 (Refund Repayment/Cancellation)

  1. UPC 138 RC 0 occurs when any of the following unpost:

  2. TC 841 does not have a Split Refund Indicator that matches the indicator on a prior posted TC 846.

  3. TC 740/841 not equal to a prior posted unreversed TC 840 or TC 846, unless TC 898 is also on the module with the same date as the TC 840/846.

Correction Procedures UPC 138 RC 0 (Refund Repayment/Cancellation)
  1. The transaction date and the amount of the TC 841 must match the date and amount of a prior posted TC 846. If the split refund indicator of the TC 841 does not match the split refund of the TC 846, then change the TC 841 indicator to equal the TC 846 indicator.

  2. If the UPC 138 RC 0 is caused by a duplicate TC 841, RJECT 630 (4–0) and prepare a Form 4028 (0–2) for the duplicate TC 841, so that it can be deleted from SCCF. Rejects will route the case and Form 4028 using Form 3210 and send to the Accounting Function.

  3. Ensure the Unpostable units provide adequate instructions in the Remarks field. If more instructions are needed, contact the Unpostables unit.

Unpostable Code 138 RC 4

  1. UPC 138 RC 4 occurs when:

    1. TC 848 does not match the date of a prior posted TC 840 or 846.

    2. TC 848 exceeds the net of the TC 84X/TC 74X with matching date.

    3. TC 848 does not match the date of a TC 849 posted to the module.

    4. TC 841 with doc code 48, blocking series 940–999 with an inflated julian date

    5. TC 841 is a duplicate

Correction Procedures UPC 138 RC 4
  1. Verify the TC 848s TIN, MFT and Tax period. Ensure the TIN, MFT and Tax period are correct and match the TC 849 that is cross referenced.

  2. Correct the date of the TC 840, 848 or 846

  3. If unable to determine the correct TIN, MFT or Tax period, Wash out transfer and notify Originator of action taken.

  4. Research IDRS to determine if the TC 841 with doc code 48 and blocking series 940-999. Determine the correct julian date and make corrections

  5. Research IDRS to determine if the TC 841 is a duplicate. If TC 841 is a duplicate, RJECT 630, prepare Form 4028. Route the case and Form 4028 using Form 3210 to Accounting.

Unpostable Code 140 RC 5

  1. This conditions occurs when a TC 150 contains a transaction date prior to the transaction date of an unreversed TC 610 or unreversed TC 610 with Doc Code 19, 70, or 76 which is dated ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Correction Procedures UPC 140 RC 5

  1. Verify the correct date of the return.

  2. Research the return for the correct date.

  3. Consider the return filed on time and enter the return due date in Field 01RCD when all of the following exist:

    1. The return was originally received by the due date

    2. Code and Edit or ITIN corresponded with the taxpayer

    3. No received date stamped or edited on the return

  4. When a received date is not required, delete data in Field 01RCD

Unpostable Code 140 RC 6

  1. This condition occurs on a TC150 when the result of the balance due per taxpayer plus Pre-Delinquent Penalty plus Estimated Tax Penalty IMF (all from section 6 of the input return) multiplied by 105 percent is less than the sum of the TC 610s posted in the tax module by $50 or more.

Correction Procedures UPC 140 RC 6
  1. Thoroughly research IDRS, CFOL command codes and attachments to correctly determine where the payment should be applied.

  2. Thorough research determines the payment is not taxpayer’s payment and you are able to identify the correct taxpayer’s account, transfer the payment correctly.

  3. If correspondence is received with legible cancelled checks, money orders or cashier's checks apply taxpayer’s payment correctly.

  4. If tax payer did not provide a legible copy of their canceled check, money order, cashier's check, input CCC "3" to freeze the module.

  5. After all thorough research has been completed and no determination where to apply payment, transfer payment to Unidentified.

Unpostable Code RC 141 RC 0

  1. TC 150 (except Doc Code 26) input into a module containing an unreversed TC 971 AC 150.

Correction Procedures UPC 141 RC 0
  1. Void the DLN RJECT 640/651, enter ESTABDT and use Form 3210 with address to forward the return to the Philadelphia Campus, Accounts Management International Accounts , 2970 Market Street Building Location Number 3.E17.143 Philadelphia PA 19104. The returns will be processed by the International Department.

    Note:

    Write in the Remarks section of Form 3210 "Reverse TC 971 AC 150" .

Unpostable Code 145 RC 0

  1. Unpostable Code 145 is for Substitute for Returns (SFR).

  2. Occurs when a TC 150 SFR (Doc Code 10, Blocking Series 000–299) attempts to post to a module with a posted TC 150.

Correction Procedures UPC 145 RC 0
  1. Research command codes TXMODA and IMFOLT to determine the correct area to send the return.

  2. Void the DLN and route the document to either -ASFR (Automated Substitute for Returns) or CORR-EXAM (Examination).

  3. Cases posted with TC 150 on the account and TC 290 for $0.00 should be sent to ASFR.

  4. Cases with an L freeze or TC 420 should be sent to Exam.

  5. The addresses below are used to send delinquent secured returns to ASFR when it has been identified that a previous Automated Substitute For Return (ASFR) assessment has been made.

    W&I Cases SB/SE Cases Form 1040 with Schedule C, E, F or Form 2106 International Returns
    FSC - 89 BSC - 19 BSC - 19
    Fresno Campus ASFR Unit Stop 81304 Po Box 24015 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Brookhaven Campus ASFR Unit Stop 654 PO Box 9013 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Brookhaven Campus ASFR Unit Stop 654 PO Box 9013 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Unpostable Code 147 RC 1 and Unpostable Code 147 RC 3

  1. Unpostable Code 147 RC 1 and RC 3 are for ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Unpostable Code 147 RC 3 occurs when an account with a TC 971 AC 523 is on the Entity module.

Correction Procedures Unpostable Code 147 RC 1
  1. Compare the taxpayer's return to the screen fields

  2. Ensure the SSN, name, address and money amounts are displaying the same as the taxpayer's return. Verify ALL money amounts are correct for the AGI, total tax, withholding and baldue/refund.

  3. Correct UPC 147 RC 1 using the following instructions:

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

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    Note:

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

  4. Use the following chart to correct UPC 147 RC 1:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Then do the following...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Unpostable Code 147 RC 1 and RC 3

  1. RESERVED

Unpostable Code 148

  1. Unpostable Code 148 is for a missing spouse's SSN.

Unpostable Code 148 RC 0 and RC 1
  1. Unpostable Condition—UPC 148 RC 0– Occurs when a TC 150 with Section 18 (Schedule SE for the spouse) is present and transaction does not contain a secondary SSN and no secondary SSN is present to control the name line for the input period.

  2. Unpostable Condition—UPC 148 RC 1– Occurs when a TC 150 with Section 18 (Schedule SE for the spouse) is present and Field 18SSN does not match the secondary SSN for the controlling name line of input return contained in entity or not matching S–SSN from input return.

Correction Procedures UPC 148 RC 0
  1. Use the following chart to correct UPC 148, RC 0.

    If the Schedule SE is for... And... Then...
    A] The primary taxpayer,   Correct the SSN and change Section 18 to Section 17.
    B] The primary taxpayer, Section 17 is blank, Correct Field 18SSN and the computer will generate the data from Section 18 to Section 17 based on the SSN.
    C] The secondary taxpayer,   Correct Fields 18SSN and 01SS. Add the spouse's name to Field 01NL1.
Correction Procedures UPC 148 RC 1
  1. Use the following chart to correct UPC 148, RC 1.

    If the Schedule SE is for... And... Then...
    A] The primary taxpayer,   Verify and/or correct Fields 01PS and 18SSN.
    B] The primary taxpayer, Section 17 is blank, Correct Field 18SSN and the computer will generate the data from Section 18 to Section 17 based on the SSN.
    C] The secondary taxpayer,   Verify and/or correct Fields 01SS and 18SSN.
    D] The secondary taxpayer, There are no transcription errors and the correct SSN is not available from the return or attachments, Research IDRS for an SSN. If an SSN is found, enter in appropriate field(s). If an SSN is not available, SSPND 211 to correspond with the taxpayer.

    Note:

    Refer to IRM 3.12.2 Section 17/18 and IRM 3.12.3 for appropriate Error Codes).

Unpostable Code 148 RC 2
  1. Unpostable Condition-UPC 148 RC 2- Occurs when a TC 150 with Section 25 (Form 4137 for the spouse) is present and transaction does not contain a secondary SSN and no secondary SSN is present to control the name line for the input period.

Correction Procedures UPC 148 RC 2
  1. If the Form 4137 is for the primary taxpayer, correct the SSN in Field 24SSN/25SSN. Refer to IRM 3.12.3 (Section 24/25 and appropriate Error Codes).

  2. If the Form 4137 is for the spouse, correct Fields 25SSN/01SS and add the spouse's name to Field 01NL1.

Unpostable Code 148 RC 3
  1. Unpostable Condition-UPC 148 RC 3- Occurs when a TC 150 with Section 25 (Form 4137 for the spouse) is present and Field 25SSN does not match the secondary SSN for the controlling name line of input return contained in entity or not matching S–SSN from input return.

Correction Procedures UPC 148 RC 3
  1. Use the following chart to correct UPC 148, RC 3.

    If the Form 4137 is for... And... Then...
    A] The primary taxpayer,   Verify and/or correct Fields 01PS and 25SSN.
    B] The primary taxpayer, Section 24 is blank, Correct Field 25SSN and the computer will generate the data from Section 25 to Section 24 based on the SSN.
    C] The secondary taxpayer,   Verify and/or correct Fields 01SS and 25SSN.
    D] The secondary taxpayer, There are no transcription errors and the correct SSN is not available from the return or attachments, Research IDRS for an SSN. If an SSN is found, enter in appropriate field(s). If an SSN is not available, SSPND 211 to correspond with the taxpayer.

    Note:

    Refer to IRM 3.12.2 (Section 24/25) and IRM 3.12.3 for appropriate Error Codes.

Unpostable Code 148 RC 4
  1. Unpostable Code -148 RC4 - Occurs when a TC 150 with Section 62 (Form 8919 for the spouse) is present and transaction does not contain a secondary SSN and no secondary SSN is present to control the name line for the input period.

Correction Procedures UPC 148 RC 4
  1. Correct transcription errors and misplaced entries in Sections 61 and 62.

  2. Verify the Primary and Secondary name line and SSN in Section 01.

  3. Ensure the primary taxpayer's data is in Section 61 and the secondary taxpayer's data is in Section 62.

  4. Ensure all data present on Form 8919 has been entered into the correct fields for Section 61/62.

  5. Delete Section 61 and/or 62 if the taxpayer has not used/completed Form 8919.

  6. Follow correction procedures in IRM 3.12.2 Section 61/62 and IRM 3.12.3 for appropriate Error Codes.

Unpostable Code 148 RC 5
  1. Unpostable Condition -148 RC 5 - Occurs when a TC 150 with Section 62 (Form 8919 for the spouse) is present and Field 62SSN does not match the secondary SSN for the controlling name line of input return contained in entity or not matching S–SSN from input return.

Correction Procedures UPC 148 RC 5
  1. Correct transcription errors and misplaced entries in Sections 61 and 62.

  2. Verify the secondary SSN in Field 01SS.

  3. Ensure the secondary SSN in Field 01SS matches the secondary SSN in Field 62SSN.

  4. Ensure all data present on Form 8919 has been entered into the proper fields for Section 61/62.

  5. Delete Section 61 and/or 62 if the taxpayer has not used/completed Form 8919.

  6. Follow correction procedures in IRM 3.12.2 Section 61/62 and IRM 3.12.3 for appropriate Error Codes.

Unpostable Code 148 RC 6
  1. Unpostable Code 148 RC 6– Occurs when a TC 150 with Form 5405 (FTHBC); Section 58 contains an SSN not equal to the primary SSN in Field 01PS.

Correction Procedures UPC 148 RC 6
  1. GTREC the DLN of the document.

  2. Re-validate the document by entering "R" in field 02RI.

  3. Correct transcription errors and misplaced entries in Section 58/59.

  4. Verify the Primary and Secondary name line and SSN from Section 01.

  5. Ensure the primary taxpayer's SSN is in Section 58, Field 58SSN and the secondary taxpayer's SSN is in Section 59, Field 59SSN.

  6. If a change is made to the primary or secondary taxpayer's SSN, enter "R" in Field 02RI after the change has been made to re-validate the SSN.

  7. If FSC is other than 2 and data has been entered in Section 59; DLSEC Section 59.

  8. Ensure all data present on Form 5405 has been entered into the correct fields/sections.

  9. Follow correction procedures in IRM 3.12.3 EC 128 and EC 328 & EC 329 as appropriate.

Unpostable Code 148 RC 7
  1. Unpostable Code 148 RC 7 occurs when a TC 150 with Form 5405 (FTHBC); Section 59 contains an SSN not equal to the secondary SSN in Field 01SSN.

Correction Procedures UPC 148 RC 7
  1. GTREC the DLN of the document.

  2. GTSEC 02 and enter "R" in field 02RI to re-validate the return.

  3. Correct transcription errors and misplaced entries in Sections 58 and 59.

  4. Verify the Primary and Secondary name line and SSN from Section 01.

  5. Ensure the secondary taxpayer's SSN is in Section 59, field 59SSN and the primary's SSN is in Section 58, field 58SSN.

  6. Ensure all data present on Form 5405 has been entered into the correct fields for Section 58/59.

  7. Follow correction procedures in IRM 3.12.2 Section 58/59 and IRM 3.12.3 for Error code as appropriate.

Unpostable Code 148 RC 9
  1. Unpostable Code 148 RC 9 occurs when Form 8941, Section 65 contains SSN that is not equal to the primary or Section 66 contains an SSN that is not equal to the secondary SSN

  2. If 2 Forms 8941 are filed both SSNs are invalid on Form 8941

Correction Procedures UPC 148 RC 9
  1. Correct transcription and misplaced entries on displayed fields

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Review Form 1040, Form 8941 and attachments to ensure the primary SSN is entered in field 65SSN correctly.

  4. Review Form 1040, Form 8941 and attachments to ensure the secondary SSN is entered in field 66SSN correctly,

  5. If 2 Forms 8941 are filed, review attachments to ensure the primary and secondary SSNs are entered correctly. The primary should be entered in field 65SSN and the secondary should be entered in field 66SSN.

  6. Delete Section 65/66 if taxpayer has not used Form 8941

  7. If unable to determine correct SSN assign Primary SSN in field 65SSN

Unpostable Code 151 RC 0

  1. Unpostable Code 151 RC 0 occurs when transactions do not create entities and no entity is present on Master File.

Correction Procedures UPC 151 RC 0
  1. Correct transcription and misplaced entries in displayed fields.

  2. Disallow personal exemptions claimed and disallow EIC per remarks from Unpostable unit. Apply appropriate TPNC. If no remarks are notated, return the document to originator for clarification.

Unpostable Code 151 RC 1

  1. Unpostable Code 151 RC 1 occurs if the account is not present and the TC 670 input to MFT 29 or current year RPS TC 610s and TC 610s with Doc Codes 19, 70, or 76 input with MFT 30 to the valid segment.

  2. EFTPS payments post with a TIN which contains 0000000002 or an invalid TIN.

Correction Procedures UPC 151 RC 1
  1. Research using IDRS CC IMFOL "Q" on the resequencing file by the TIN or payment amounts. Additional information on CC IMFOL Q is available in IRM 2.3.51, Command Code IMFOL.

  2. If you locate the TC 610 payment, input a TC 000 using the valid taxpayer's information to bring the payment off the Re-sequencing file. If necessary request MFTRA U to establish the account. Do not establish account on the invalid side. Monitor account and once established transfer the payment to the correct taxpayer.

  3. If unable to determine the correct taxpayer's TIN/payment or establish the account, forward to Unidentified.

Unpostable Code 153 RC 0

  1. This condition occurs on a name control and TIN mismatch—long entity TC 150, 140, or 430 addressing invalid segment.

Correction Procedures UPC 153 RC 0
  1. Correct transcription and misplaced entries in displayed fields.

  2. If SSN is incorrect, research return, attachments and IDRS for the correct SSN and update Entity

  3. Follow instructions provided by Unpostable Unit, if no instructions provided return to Unpostables for clarification.

Unpostable Code 156 RC 0

  1. This condition occurs when a name control mismatches on the valid segment for TC 150 or 430 (Entity Code 2 or 3) or TC 140. Exceptions occur for TC 150, 140, or 430, Entity Code 1, 4, and 5.

Correction Procedures UPC 156 RC 0
  1. Correct transcription and misplaced entries in displayed fields.

  2. Follow instructions provided by Entity or Unpostables area. Delete exemptions and EIC as documented. If no instructions are provided send case back to original area for guidance.

Unpostable Code 157 RC 0/Generated Name Control

  1. This condition occurs when a TC 150 with FSC 5 attempts to post and the controlling name line for two most current preceding tax periods before the year of the input transaction contains FSC 5.

Correction Procedures UPC 157 RC 0
  1. If Unallowable Code 70 and CCC Y is edited on the return or by the Unpostable Unit, Delete both Codes.

  2. Research the two most current tax periods. If research determines the taxpayer has claimed FSC 5 for more than two years, take the following actions:

    • If dependents are claimed, change FSC to 4 and send TPNC 104. If no dependents are claimed, change the FSC to 1 and send TPNC 101.

    • If EC 252 generates and the taxpayer is using the Standard Deduction, assign the appropriate TPNC.

    • If EC 260 generates, verify the taxpayer's computation of Tentative Tax and enter the correct amount of Tentative Tax in Tentative Tax Verified Field.

    • Take into account all previous math errors when verifying Tentative Tax.

Unpostable Code 157 RC 2
  1. This condition occurs when a TC 000, TC 01X containing name information, TC 140, 150, or 430 with a joint name line that:

    1. Contains an ampersand (&) and is not followed by a minimum of a blank space, alpha, blank space, alpha.

    2. The & is followed or preceded by blank space, blank space.

    3. The & is part of the last name.

    4. FSC is other than 2 or 7 and the ampersand (&) is included in the name line or the "To last name line" is blank.

Correction Procedure UPC 157 RC 2
  1. Correct transcription and misplaced entries in displayed fields.

  2. Compare the names on the return to the name line Section 01.

  3. Research thoroughly using IDRS CC ENMOD & INOLE to determine the correct name and/or TIN information.

  4. If FSC is other than 2 or 7 and the ampersand is included follow IRM 3.12.2.4.3.12 procedures to correct FSC field.

Unpostable Code 157 RC 3 (Spouse SSN)
  1. Unpostable Code 157 RC 3 occurs when a return contains either a RPC E, a TC000, a TC016, a TC017 that has a temporary spouse SSN (except ITINs) or spouse SSNs with 123456789 or 111-11-1111, 222-22-2222 etc.

Correction Procedures UPC 157 RC 3 (Spouse SSN)
  1. Correct transcription and misplaced entries in displayed fields.

  2. When the return is received from the Unpostable Units with a valid TIN, input the correct SSN in Field 01SS.

  3. When the return is received from the Unpostable Units without a valid TIN, research the documents and attachments for the correct secondary SSN. If unable to determine the correct secondary SSN, disallow entry in Field 01SS and exemption for the secondary taxpayer and RPC E, and apply TPNCs as appropriate.

Unpostable Code 157 RC 4 (Invalid SSN)
  1. This condition occurs for any transaction attempting to post to the entity containing SSN 123-45-6789 or with SSN 111-11-1111, 222-22-2222, etc.

Correction Procedures UPC 157 RC 4
  1. If payment document is received from Unpostables with a TC 610, TC 670 or TC 430, forward the payment document to Unidentified.

Unpostable Code 159 RC 0 Payments

  1. This condition occurs when there are invalid payments posted to an account or no existing tax account module.

Correction Procedures UPC 159 RC 0
  1. Correct transcription and misplaced entries

  2. Correct designated payment codes (DPC) as directed by the Unpostable unit.

  3. Follow instructions provided by Unpostable units. If no instructions are provided, return the document to the Unpostable unit for clarity.

Unpostable Code 162 RC 0 Tax Period Ending (TPE) Mismatch

  1. Unpostable Code 162 RC 0 occurs when the displayed taxpayer's Tax Year month is different from the month of the return.

Correction Procedures UPC 162 RC 0
  1. Correct transcription and misplaced entries in displayed fields

  2. If Form 4868 is received with incorrect FY, follow the Unpostable units request to change the FY to agree with Master File.

  3. Follow taxpayer’s intent when correcting the Tax Period Ending of the transaction.

  4. If payment transaction is TC 610, 640, 660 or 670 renumber to a BMF account.

    Note:

    Ensure the payment is directed to correct MFT and/or taxpayer. These payments may be for a module on MFT 55.

  5. Follow Unpostable unit request to change TPE on document to match Master File's TPE.

  6. Follow Unpostable unit request to change the month ending to agree with Master File.

  7. If the date of death is before the beginning of the tax period of the return, , follow the Unpostable unit request to convert document to Form 1041.

  8. If the document is a Short period return and the date of death is after the return's ending period, follow Unpostable units request to change month ending on return to agree with Master File.

  9. If the tax year is not a Short Period return ensure the date and form is correct. If it’s not correct convert the return to a Short period return.

  10. If nothing is documented from Unpostables, return to Unpostable unit and state explanation needed.

Unpostable Code 164

  1. Unpostable Code 164 is for EIC Recertification Indicators, Killed in Terrorist Actions (KITA), Health Coverage Tax Credit, First-Time Homebuyer Credit (FTHBC).

Unpostable Code 164 RC 0
  1. This condition occurs when an input TC 150 contains a significant withholding amount equal to the sum of ES credits posted

Correction Procedures UPC 164 RC 0
  1. Taxpayers may claim both ES credits and withholding credits, verify withholding amount per Form(s) W–2 or substitutes attached. Research to verify withholding using IDRS CC IRPTR, TXMOD and IMFOL, etc.

  2. Verify ES credits using IDRS CC IMFOLT or TXMOD

  3. If withholding amount is not verified, or no W–2 or substitutes are attached, correspond with taxpayer using 12C letter for verification of withholding amount.

  4. If No Reply to correspondence and withholding is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ delete withholding and follow instructions in Exhibit 3.12.3-1

Unpostable Code 164 RC 1
  1. Unpostable Code 164 RC 1 occurs when a TC 150 with a tax period of 201212 or later contains EIC per computer input to an account containing the Recertification Indicator when Audit Code U is not present.

Correction Procedures UPC 164 RC 1
  1. When EIC is disallowed due to deficiency procedures, Examination sends CP 79A, Earned Income Credit Eligibility Requirement, to the taxpayer explaining the EIC disallowance and the recertification requirements. Exam will set a Recertification Indicator based on the result of the examination. The entity module will reflect the EIC recertification indicator if EIC was disallowed through deficiency procedures, or if Examination determines that recertification is no longer required.

  2. Research using IDRS CC ENMOD and CC IMFOLE to locate the EITC Recertification Indicator. When the Recertification Indicator is located, use the following instructions:

    If the recertification indicator is… And the…. Then….
    A) Blank Recertification is not required, Allow credit if necessary.
    B) The document is TY2017 and earlier
    RI 1 or 9
    Taxpayer has a Schedule EIC with qualifying children; Schedule EIC with no qualifying children; or no Schedule EIC and form 8862 is not present Enter RPC B and assign TPNC 653 to disallow EIC.
    C) The document is TY 2017 and earlier Taxpayer is claiming EIC and Form 8862 is present, Enter Audit Code U and RPC A to allow EIC.
    D) RI 1 or 9, and the document is TY 2014 or later Taxpayer is claiming EIC with qualifying children and Schedule EIC and Form 8862 are present, Enter Audit code U and RPC A to allow EIC.
    E) RI 1 or 9 and the document is TY 2014 or later Taxpayer has a Schedule EIC with qualifying children; Schedule EIC with no qualifying children; or no Schedule EIC and Form 8862 are not present, Enter RPC B and assign TPNC 653 to disallow EIC.
    F) RI 1 or 9 and the document is TY 2014 or later Taxpayer is claiming EIC with qualifying children but Schedule EIC and Form 8862 are not present Enter RPC B and assign TPNC 653 to disallow EIC
    G) RI 1 or 9, and the document is TY 2014 or later Taxpayer is claiming EIC without qualifying children and Form 8862 is present Enter Audit Code U and RPC A to allow EIC (recertification is not required).
    H) RI 2 Tax year is less than EITC-EL-TXPD field and the taxpayer is claiming EIC with qualifying children regardless if Schedule EIC and Form 8862 are present or not, Enter RPC B and assign TPNC 814 and disallow EIC
    I) RI 2 Tax year is greater than or equal to EITC-EL-TXPD field and Schedule EIC and Form 8862 are present, Enter Audit Code U and RPC A to allow EIC.
    J) RI 2 Tax year is greater than or equal to EITC-EL-TXPD field and Schedule EIC and Form 8862 are not present, Enter RPC B and assign TPNC 653 to disallow EIC.
    K) RI 3 Tax year is less than EITC-EL-TXPD field, Enter RPC B and assign TPNC 815 and disallow EIC.
    L) RI 3 Tax year is greater than EITC-EL-TXPD field, Enter Audit Code U and RPC A to allow EIC (Recertification is not required).
    M) RI 4 Tax year is less than EITC-EL-TXPD field and the taxpayer is claiming EIC with qualifying children regardless if Schedule EIC and Form 8862 are present or not, Enter RPC B and assign TPNC 816 and disallow EIC.
    N) RI 4 Tax year is greater than or equal to EITC-EL-TXPD field and Schedule EIC and Form 8862 are present, Enter Audit Code U and RPC A to allow EIC.
    O) RI 4 Tax year is greater than or equal to EITC-EL-TXPD field and Schedule EIC and Form 8862 are not present, Enter RPC B and assign TPNC 653 to disallow EIC.

    Note:

    TPNC 653 "We can't allow the amount claimed as Earned Income Credit on your tax return. We have no record of receiving Form 8862, Information to Claim Earned Income Credit after Disallowance, recertifying that you are eligible for the credit. You need to file Form 8862. The IRS may request additional verification in addition to the completed Form 8862."

  3. The recertification requirement applies to TY 2013 and later returns only.

    Note:

    If CCC H displays as a Field Error, delete the H.

Unpostable Code 164 RC 2
  1. Unpostable Code 164 RC 2 occurs when a TC 150, TC 290, or TC 300 is input to an account containing a Killed in Terrorist Action (KITA) or Hostage Indicator.

Correction Procedures UPC 164 RC 2
  1. If the remarks from Unpostable Unit states "HSTG" or "KITA" follow instructions. If IDRS command codes ENMOD, SUMRY or TXMOD displays "HSTG" or "KITA" on ENMOD, SUMRY, TXMOD, RJECT 640 document to void the DLN. Mail the case along with all supporting documentation (tax forms, taxpayer correspondence, etc.) after cancellation of the DLN to the following address:

    1. For Hostage Indicators only - Internal Revenue Service Hostage Indicator, 2385 Chamblee Tucker Road STOP 74 / Team 107, Chamblee GA 30341.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for clarity of Hostage Indicators.

    2. For KITA Indicators only - IRS Accounts Management, 333 W. Pershing Rd., Kansas City, MO 64108. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for clarity of KITA Indicators.

Unpostable Code 164 RC 5 thru UPC 164 RC 8
  1. Unpostable Condition 164 RC 5 occurs when a return claiming the Health Care Coverage Tax Credit (05HCTC) does not have the HCTC indicator set.

  2. Unpostable Condition 164 RC 6 occurs when TC 150 input at the same time as a TC 971 AC 137, taxpayer has previously claimed First-Time Home Buyer Credit

  3. Unpostable Condition 164 RC 7 occurs if a TC 150 with Making Work Pay Credit (MWP) per computer is significant and the FSC is other than 2 and the first digit of the SSN is 9 or,

  4. Unpostable Condition 164 RC 8 occurs when the FTHBC is significant and either primary or secondary or (both) taxpayers FTHBC are on the DMF file a duplicate credit attempts to post.

Correction Procedures UPC 164 RC 5
  1. Correct transcription errors, misplaced entries and verify the taxpayer is claiming HCTC.

  2. For HCTC TY 2015, 2014, 2013 and prior follow instructions in IRM 3.12.3.29.7.5.2 Error Code 348 AC 450/491 HCTC..

  3. If correspondence has not been issued and documentation for the credit is not present, correspond following instructions in EC 348.

    Note:

    If MeF correspondence is needed for EC 348, ensure the 20 day suspense period has expired.

  4. Ensure Audit Code J is input correctly if needed by following EC 348 instructions.

  5. For Health Coverage Tax Credit (HCTC) for (TY02 - TY13):

    1. Delete the amount entered in field 05HCC and 0573 for HCTC.

    2. Assign TPNC 594 for domestic and assign TPNC 377 for Form 1040-PR

Unpostable 164 RC 6
  1. This condition will occur when the return breaks the FTHBC rule

    Note:

    Masterfile will bypass for a corrected UPC 164 RC 6 or if the FTHBC amount is equal to zero.

  2. Occurs when the First-Time Home Buyer Credit (FTHBC) is present with TC 150 FTHBC computer is significant and either primary or secondary or (both) FTHBC are on the DMF file or

  3. TC 150 input at the same time as a TC 971 AC 137, taxpayer has previously claimed First-Time Home Buyer Credit or

  4. Taxpayer has owned another main home during the 3 year period ending on the purchase date.

Correction Procedures UPC 164 RC 6
  1. Correct coding, transcription errors and misplaced entries in displayed fields.

  2. If the taxpayer indicates they are First time home buyer by checking the 1st box on line 3, Form 5405 or the amount present on line 3 Form 5405 is not equal to $6500, delete all Special Processing Codes related to First-Time Home Buyer Credit if present and assign appropriate TPNC.

  3. If the taxpayer indicates they are Long Time Resident by checking the 2nd box on line 3, Form 5405 or $6,500 is present on line 3, Form 5405 follow instructions in IRM 3.12.3 EC 350

Unpostable Code 164 RC 7
  1. Unpostable Condition 164 RC 7 occurs if a TC 150 with Making Work Pay Credit (MWP) per computer is significant and the FSC is other than 2 and the first digit of the SSN is 9 or,

  2. TC 150 with MWP per computer is significant and the FSC is 2 and the spouse SSN is present, the first digit of the Primary SSN is 9 and the first digit of the spouse SSN is 9.

Correction Procedures UPC 164 RC 7
  1. GTREC the DLN and correct coding, transcription errors and misplaced entries in displayed fields.

  2. GTSEC 02 and enter "R" in field 02RI to re-validate the return.

Unpostable Code 164 RC 8 (Duplicate Claim from a previous tax year)
  1. Unpostable 164 RC 8 occurs when TC 150 with First Time Home buyer Credit (FTHBC) per Computer (section 4) is significant and either primary or secondary or (both) taxpayers FTHBC are on the DMF file.

Correction Procedures UPC 164 RC 8
  1. This error occurs when the taxpayer, according to our records, has already received the credit.

  2. GTREC the DLN.

  3. Re-validate the document by entering "R" in Field 02RI.

  4. Correct coding, transcription errors and misplaced entries in displayed fields.

  5. Research using IMFOL, TXMOD, and/or RTVUE to determine if a TC 150 has posted.

  6. If research determines the return is a duplicate or an amended return follow procedures for both.

  7. If FSC 3 and taxpayer is splitting FTHBC with spouse, and research shows primary taxpayer has not received credit; Delete fields 01SNC and 01SS. See EC 346

  8. If instructions in 2 through 7 (above) do not apply, GTSEC 01 and delete all FTHBC codes in field 01SPC. If EC 346 appears, assign applicable TPNC.

  9. If the first box is checked on line 3, (Form 5405 TY 2011 and earlier), or the amount present on line 3, (Form 5405 TY 2011 and earlier) is $6,500, then assign TPNC 636.

Unpostable Code 167 RC 2

  1. Unpostable Condition 167 RC 2 occurs when the pre-journalized amount is not equal to zero or a TC 270 is input as the secondary transaction to a Revenue Receipt and the module contains an unreversed TC 320.

Correction Procedures UPC 167 RC 2
  1. If the pre-journalized amount is not equal to zero, re-input the transaction after removing the TC 570 for zero (00), by either:

    1. re-inputting the document.

    2. Routing a copy of the corrected document to SCCB, explaining the unpostable condition and action taken to resolve it.

    Note:

    Send a copy to the originator, informing them of the action taken.

Unpostable Code 168 RC 0 (Resolution of Transaction Codes)

  1. Unpostable Condition 168 RC 0 occurs if TC 892 is addressing the correct module.

  2. It also occurs if correct account is being addressed and a TC 896 with the correct money is posted.

Correction Procedures UPC 168 RC 0
  1. Correct the tax period and/or SSN is of the module.

  2. Correct the account being addressed and the TC 896 with the correct money.

  3. If TC 892, determine if TC is addressing the correct module. Determine If tax period and/or SSN is correct. Review spousal indicators and change spousal indicators to agree with Master File.

  4. Review spousal indicators and change spousal indicators to agree with Master File.

    Note:

    The valid spousal indicators are:

    1. "0" (non-joint taxpayer systemically generated)

    2. "1" (joint-filer primary taxpayer)

    3. "2" (joint-filer secondary taxpayer)

  5. If Doc Code 51 is present change Doc Code and transaction code according to instructions from Unpostable Units.

Unpostable Code 169 RC 9

  1. Unpostable Code 169 RC 9 occurs when a TC 150 attempts to post to a MFT 30 with FSC 2 (including dummy IRA) containing an IRA Form 5329 (Section 29 or 30) and any of the following conditions are met:

    1. Does not contain a spouse indicator, contains a spouse indicator greater than 02 or contains a section 29 or 30 with spouse indicators of equal value.

    2. Contains a spouse indicator of 02 and the Secondary SSN in the controlling name line is missing or invalid.

Correction Procedures UPC 169 RC 9
  1. Correct coding, transcription, and misplaced entries on displayed fields

  2. Ensure field 29ISI IRA Spouse Indicator is correct. If the FSC 2, Form 5329 is for the Primary taxpayer, the code should be 1. If the FSC 2 Form 5329 is for the Secondary taxpayer the Code should be 2. If the FSC is other than 2, delete the code from Field 29ISI.

  3. Follow instructions from Unpostable unit. Research all documents to ensure the correct SSN is provided by the Unpostable Unit. The Secondary SSN must be corrected on the document and the screen. If unable to determine the correct Secondary SSN, SSPND 211 to obtain the correct Secondary SSN from the Primary Taxpayer. Follow No Reply procedures if no response is received.

Unpostable Code 175 RC 0

  1. Unpostable Code 175 RC 0 occurs when a TC 820, 824, 830, or 890 attempts to post after re-sequencing one cycle, if amount exceeds the credit balance.

    Note:

    UPC 168 has priority over this check except for TC 820 or TC 830

Correction Procedures UPC 175 RC 0
  1. Check for coding, transcription and misplaced entries on displayed fields.

  2. Research IDRS CC's for refunded amounts. If an amount has refunded, reverse the credit. Notate on routing slip "Possible erroneous refund" and route to Originator. If credit side has not posted, correct and/or cancel both sides of credit transfer.

Unpostable Code 176 RC 0 thru UPC 189 RC 8

  1. Unpostable Condition 176 RC 0 occurs when TC 150 or 430 which would create an entity on the invalid segment of Master File and no account is present. This condition is bypassed by:

    1. Corrected UPC cases.

    2. TC 150 or TC 430 with high order digit in SSN of 9 (temporary SSN).

    3. TC 430 for Form 1040C (Doc. Code 61).

    4. TC 150 with CCC X.

    5. TC 150 or 430 with the Accretion Indicator

      Note:

      Dual, hyphenated, or alternated-dual surnames are sometimes transcribed incorrectly. Make every effort to follow taxpayer's intent. If the taxpayer's signature contains one last name or a dual name is hyphenated, post the document to that name control. Input TC 013 or TC 000 if needed.

      .

Correction Procedures UPC 176 RC 0 thru UPC 189 RC 8
  1. Correct coding, transcription and misplaced entries on displayed fields.

  2. Follow instructions given by Unpostable Unit to correct SSN on Form 1040 Schedule SE and other forms and schedules.

  3. If further research is required, search the return, attachments and Form W2. Use IDRS CC NAMEI, NAMES, INOLE, to find valid SSN. If no SSN provided, return to Unpostable Unit.

  4. Edit new SSN on all fields and documents to correct unpostable condition.

  5. Leave a working trail if TC 013 or TC 000 is input.

  6. Follow instructions given by Unpostable Unit. Disallow personal exemptions, IRSN and EIC as requested. GTSEC 01 and disallow exemptions as appropriate. Assign correct TPNC as necessary for EIC and exemptions. GTSEC 17 and 18 and enter correct SSN as given by the Unpostable Unit for Schedule SE and other forms and schedules.

Unpostable Code 177 RC 0
  1. This condition occurs when a module creating transactions attempts to post to an account on the valid segment with the Scrambled SSN Indicator set to 01, 10, 12 or 20 if the MFR is set to 08. All transactions except TC 01X with a significant Scrambled SSN value or TC 020 if the Scrambled SSN Indicator is set to 13 or 23.

Correction Procedures 177 RC 0
  1. Do not research SSNs or TINs.

  2. Follow instructions provided by the Entity Unpostable Units

Unpostable Code 182 RC 0
  1. This condition occurs when a module creating transaction except TC 140; TC 500 cc 52, 54, or 56; or TC 971 AC 100–106 input to MFT 31, attempts to post to an account with MFR 8.

Correction Procedures 182 RC 0
  1. Follow instructions provided by Entity and the Unpostable unit.

  2. Ensure IRSN has been assigned.

  3. Assign TPNC 100 using the following verbiage: You are not entitled to a refund of tax withheld on United States social security benefits as shown on your tax return. As a nonresident alien, you are required to pay 30% if you are a resident of treaty country. We have adjusted your return accordingly.

Unpostable Code 183 RC 0
  1. Cases are Scheme development cases from IDT unit.

Correction Procedures UPC 183 RC 0
  1. Follow instructions provided by Entity and the Unpostable unit. If no instructions provided return to Entity/Unpostable units for clarification.

  2. Update IRSN ( IRSN 9XX-XX-XXXX*) as provided in Remarks section of Form 8749 or local transfer

  3. Remove personal exemptions for the primary taxpayer, remove EIC, and input CCC" 3" to freeze any possible refund.

Unpostable Code 186 RC 1
  1. This condition occurs if module balance is credit and any TC (except TC 400), attempts to post to a tax module with a transaction section exceeding maximum programming size.

    Note:

    A TC 820 will post if, after posting of the TC 820, the module balance becomes zero or debit.

Correction Procedures UPC 186 RC 1
  1. Follow instructions provided by the Unpostable unit. If no instructions provided return to the Unpostable unit for clarification

  2. If TC 400 is on module and there is a payment or payment reversal TC, research CC XSINQ, SUMRY for correct module.

  3. If unable to find payment or reversal payment forward to Accounts Management with note on routing slip "TC 400 on module." Ensure all research is attached.

  4. If no TC 400 on module and it is a payment/payment reversal TC, forward to Accounts Management with note on routing slip "No TC 400 on module.". Ensure all research is attached.

Unpostable Code 188 RC 0
  1. This condition occurs when a module creating transactions not containing name line information addresses a period earlier than earliest name line on Master File, except TC 140, Entity Code 2.

    Note:

    Master File will bypass this check for the following:

    1. TC 971 AC 010

    2. RPS TC 610s

    3. TC 610 with Doc Code 19, 70, or 76 that are input to a module one year prior to the earliest tax module on the Master File

    4. all DOD TC 500s regardless of the name line comparison

    5. any transaction input to MFT 29, 31 or 55

Correction Procedures UPC 188 RC 0
  1. Verify transaction is input to correct taxpayer's account.

  2. Ensure all tax data is entered correctly. Verify name, address, SSN, TXPD, AGI, Credits, Total Tax and Balance Due/Refund is entered correctly before processing return.

  3. Form 3413 Doc Code 52— Renumber with Doc Code 51 following instructions from the Unpostable units.

  4. Form 3413 Doc Code 52— Renumber to 200–299 Blocking series per Unpostable instructions.

Unpostable Code 189 RC 0 Reversal TC Amount Discrepancy
  1. Unpostable Code 189 RC 0 occurs if Form 3552, TC amount or date, incorrect money amounts, transaction dates, and installment agreement user fees are in error.

Correction Procedure UPC 189 RC 0
  1. Form 3552 Prompt Assessment Billing Assembly Research Form 3552 for correct money amount. Verify correct MFT, TXPD, Assessment Date and Transaction Code (TC). If the amount is located, contact initiator of document and explain the condition. If money amount is correct but date and/or TC is wrong, change date and/or TC using (ADJ54).

  2. TC 892 If TC 892 with the correct money is posted, correct Spousal Indicator to agree with Master File.

    Note:

    Valid Spouse Indicators are:

    1. 0 (non-joint taxpayer)

    2. 1 (joint filer—primary taxpayer)

    3. 2 (joint filer—secondary taxpayer)

  3. Review IDRS CC TXMOD for the correct tax period. Ensure the Unpostable amount and the TC 896 amount match using IDRS CC TXMOD. If the amount is less than the Unpostable amount Wash out credit transfer and notify Originator of action taken. If the amount is greater than the Unpostable amount notify the originator for correction.

    Note:

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

    .

Unpostable Code 189 RC 7
  1. Unpostable Code 189 RC 7 occurs if a TC 150 of the SSN from Section 59 (Secondary Form 5405) is not equal to the posted spouse First Time Home Buyer Credit SSN in the Entity and the spouse First Time Home Buyer Credit FSC is equal to 2.

Correction Procedure UPC 189 RC 7
  1. GTREC the DLN.

  2. Re-validate the document by entering "R" in Field 02RI.

  3. Section 59 information is for the Spouse. Research Form 5405 and Section 01 field 01SS for the correct spouse SSN.

  4. Ensure the correct spouse SSN is input in field 59SSN.

  5. If the taxpayer's return is not FSC 2 and Form 5405 is not needed DLSEC 59.

  6. Refer to IRM 3.12.3.83.6 EC 329 for further processing instructions.

Unpostable Code 189 RC 8
  1. Unpostable Code 189 RC 8 occurs when a TC 150/29X/30X containing reference numbers 873, 874, 878, 879, 891, or 892. If the amounts exceeds the limitations for total wages and tips subject to social security or railroad retirement tax plus net earnings from self-employment is more than the following:

    • TY15: $118,500

    • TY14: $117,000

    • TY13: $113,700

    • TY12: $110,100

  2. In addition, Unpostable Code 189 RC 8 occurs when a TC 29X/30X contains reference numbers 895 or 896 and the adjustment is LESS THAN the Primary or Secondary SS SE Income or Secondary SS SE Income. Reference number 873 or 874 if the end result exceeds the net 893/894.

Correction Procedure UPC 189 RC 8
  1. GTREC the DLN of the document and enter a R in field 02RI.

  2. Correct coding, transcription and misplaced entries on displayed fields.

  3. GTSEC 17 Primary SE & 18 Secondary SE and ensure the income amounts are entered correctly.

  4. If the taxpayer's total for wages and tips subject to Social Security or Railroad Retirement Tax plus net earnings from self-employment is more than the following:

    • TY15: $118,500

    • TY14: $117,000

    • TY13: $113,700

    • TY12: $110,100

  5. See IRM 3.12.2.17 (Section 17/18) for further instructions.

Unpostable Code 189 RC 9 (First-Time Homebuyer Credit Recapture)

  1. This condition occurs for a TC 150 not containing Form 5405 (Section 58 or 59), but the entity contains a First Time Homebuyer section with purchase year 2008.

Correction Procedure UPC 189 RC 9

  1. GTREC the DLN of the document.

  2. Stop. Do not clear the return

  3. Enter "R" in field 02RI and transmit.

  4. GTSEC 58 and enter 250.00 in field 5808 and transmit.

  5. Enter "C" in the clear field

  6. Delete the entry in Field 01RCD if the return is a current year return and was received before April 15th. Delete the entry in Field 05PC if a Field Error occurs.

  7. Refer to IRM 3.12.3.27.6.7 for processing instructions for EC 329.

Unpostable Code 194 RC 0 Form 3552 (Prompt Assessment Billing Assembly)

  1. This conditions occurs when Form 3552 has incorrect dates posted to the account.

Correction Procedures UPC 194 RC 0 Form 3552 (Prompt Assessment Billing Assembly)
  1. Form 3552 Prompt Assessment Billing Assembly research Form 3552 for correct dates. Verify correct MFT, TXPD, Assessment Date and Transaction Code (TC). If the amount is located, contact initiator of document and explain the condition. If money amount is correct but date and/or TC is wrong, change date and/or TC using (ADJ54).

  2. If unable to determine correct date or amount contact originator

Unpostable Code 194 RC 1

  1. This condition occurs when Doc codes and payments are applied incorrectly.

Correction Procedures UPC 194 RC 1
  1. If Doc Code 87, route to Dishonored Check Function in Accounting for corrective action.

  2. If Doc Code 24, 48, 58, If credit side has posted with the incorrect money amount, notify originator.

  3. If necessary, input a TC 570 to prevent an erroneous refund.

  4. If Form 3552 has incorrect dates, money amounts or transaction codes, correct according to the Form 3552. If unable to determine contact the originator.

Unpostable Code 195 RC 1 (Secondary FTHBC)

  1. This condition occurs when the FSC is other than 2 and Section 59 is present.

Correction Procedures UPC 195 RC 1 (Secondary FTHBC)

  1. GTREC the DLN of the document.

  2. To ensure programming is correct; drop down and transmit.

  3. GTSEC 01 and verify the taxpayer's primary and secondary SSN.

  4. If Section 59 is entered and the filing status is not FSC 2 delete section 59. Section 59 is for the secondary taxpayer only.

  5. If Form 5405 is required; GTSEC 58 and enter the correct data in the appropriate fields.

  6. Verify that the taxpayer's SSN is entered correctly in field 58SSN before transmitting.

Unpostable Code 195 RC 2

  1. Unpostable Code 195 RC 2 occurs when the Primary/Secondary NAP FTHBC amount is not equal to zeros. If Form 5405, Section 58/59 is present and the Disposition code is equal to ‘I’ and the repayment-per-computer is less than the Primary/Secondary NAP FTHBC Installment amount.

Correction Procedures UPC 195 RC 2

  1. GTREC the DLN of the document.

  2. Verify from the return that sections 58/59 have been transcribed correctly. Correct Coding and transcription errors.

  3. Remove the Disposition Code "I" in field 5803. This action will generate the correct error code.

  4. If the Disposition Code is necessary re-enter as appropriate when the correct Error Code generates.

  5. When Error Code 329 (Form 5405 attached) or Error Code 334 (No Form 5405) generates follow instructions in IRM 3.12.3 as appropriate.

Unpostable Code 197 RC 4, 5, and 6

  1. Unpostable Condition 197 RC 4, 5,6 and 7 will be auto closed by GUF to Rejects when the MFT is 29.

Unpostable Code 197 RC 4
  1. Unpostable Condition 197 RC 4 occurs when any TC 370 contains a return TC 150 and TC 150 has already posted.

Correction Procedures UPC 197 RC 4
  1. To resolve this condition, change TC 150 to TC 290.

  2. Re-input the document Form 3893 Re-entry document control per Unpostable Unit instructions

  3. If MFT 29, cancel DLN and route to originator

Unpostable Code 197 RC 5
  1. Unpostable Condition 197 RC 5 occurs when a TC 400 or TC 971 AC 145 is input to a credit balance module or a module does not contain a TC 150.

Correction Procedures UPC 197 RC 5
  1. GTREC the DLN and follow instructions provided by Unpostable Unit.

  2. Research IDRS command code TXMOD to determine the originator.

  3. Cancel the DLN and route the document to the originator with remarks to input "TC 402 and input TC 972 AC 145" .

  4. Do not send document to NMF or MF send return to the originator.

Unpostable Code 197 RC 6
  1. Unpostable Condition 197 RC 6 occurs when a TC 370 with a secondary TC 402 is input and does not find an unreversed TC 400 in the module with the same date and amount as TC 402.

Correction Procedures UPC 197 RC 6
  1. To resolve this condition, cancel the DLN and route the document to originator.

Unpostable Code 197 RC 7
  1. Unpostable Condition 197 RC 7 occurs for the following reasons:

    1. When a TC 400 (Transfer Out) amount is not equal to zero or attempts to post to a module without a TC 150 or a module is in credit balance.

    2. When a TC 370 with a secondary TC 402 does not find an unreversed TC 400 for the same date and amount.

    3. When a TC 370 with a secondary TC 402 attempts to post to a module that is not in Status 29.

Correction Procedures UPC 197 RC 7
  1. Verify using TXMOD the correct transaction date and amount.

  2. If date or amount is mismatch and unable to determine the correct date or amount, cancel the DLN and send to originator for correction.

Unpostable Code 198 RC 2

  1. UPC 198 RC 2 occurs when a TC 430, 610 (Doc Codes 19, 70 or 76) 660, 670 or 760 attempts to post to a settled module.

Correction Procedures UPC 198 RC 2
  1. Correct any transcription errors or misplaced amounts

  2. Verify payment, date, Transaction code, DPC and amount using IDRS command codes IMFOLT, TXMODA, ENMOD, BMFOLI

  3. If a TC 670 contains DPC 36, DPC 36 is valid for MFT 35 only. Correct MFT if it is listed as MFT 29/30/31 & 55.

  4. If payment belongs to a different Master File (e.g. BMF) and or different MFT, input ADD24 to input credit transfer.

  5. If payment is TC 430 or 660 or module contains a TC 836, post to current processing year.

  6. If the module contains an "L" Freeze, change the TC 670 to TC 640.

  7. If research indicates that the TC 610 or the TC 670 payment should have processed as a quarterly estimated tax payment, correct the tax period and change the Transaction Code to TC 660.

Unpostable Code 198 RC 3

  1. This condition occurs when a revenue receipt transaction causes the module balance to be credit of $1,000,000,000.00 or greater.

Correction Procedures UPC 198 RC 3
  1. Correct transcription or misplaced entries

  2. Verify the credit amount is correct.

  3. Coordinate with Accounting to transfer to Non-Master File (NMF)

    Note:

    Module balances over $1,000,000,000.00 or more cannot be processed to Master File. These cases are processed to NMF and consolidated in Cincinnati. Coordinate with Accounting to process revenue receipt.

Unpostable Code 290 RC 2, Unpostable Code 290 RC 3 & Unpostable Code 290 RC 5

  1. This condition occurs when any TC is not valid for IMF processing and includes the following;

    1. 060, 95X, 05X, 07X, 080 (campus Generated), 081, 473, 41X, 422, 423, 564, 772, 940, 942, 962; or

    2. If transactions input to MFT 35 including transactions that are secondary to TC 290, TC 300 and TC 370 or revenue receipt.

    3. Revenue Receipt transaction with reversal digit not 0/1/2/4.

Correction Procedures UPC 290 RC 2
  1. Correct transcription or misplaced entries

  2. Follow instructions provided by Unpostable unit for the correct transaction code

  3. If unable to determine correct transaction code, MFT or payments RJECT 640 and send to originator.

Unpostable Code 290 RC 3
  1. Unpostable Code 290 RC 3 occurs when the following transactions are input to MFT 35/55 including transactions that are secondary to TC 290 or TC 370 or a revenue receipt

Correction Procedures UPC 290 RC 3
  1. Correct transcription or misplaced entries

  2. Correct UPC 290 RC 3 if any of the following transactions input to MFT 35 including transactions that are secondary to TC 290, TC 300, TC 370 or revenue receipt

    140 83X 141 64X
    32X 150 61X 96X
    80X 43X 93X 27X
    35X 59X 17X 475
    81X 922 46X 66X
    142 924 63X 71X
    081 925 94X 31X
    42X 16X 20X 49X
    58X 45X 474 971 AC 60/61/62
    474 80X 59X 58X

    .

  3. If unable to correct transaction codes, MFT or reference numbers cancel DLN (RJECT 640) and send to originator.

Unpostable Code 290 RC 4
  1. This condition occurs for the following:

    1. Tax period invalid

    2. If TC 290, 300, 861/862, 901–904, 971, and 972 with a tax period more than two years later than the 23C date month and year.

    3. Reference numbers 865-869/262 and PRN 692 input for tax period other than 201412.

    4. If TC 740/841 containing an invalid tax period

    5. MFT 35 post to tax period prior to 201412

Correction Procedures Unpostable Code 290 RC 4
  1. Correct transcription and misplaced entries

  2. The tax period is in the format YYYYMM. The current period is never transcribed for current-year returns. It is transcribed for prior- and fiscal-year returns.

  3. Review the document and attachments to determine correct tax period

  4. If TC 290, 300, 901-904, 971 and 972 with a tax period more than two years verify correct tax period and update as appropriate. Allow credit reference numbers 861/862 for tax period 201312 and subsequent only.

  5. If TC 740/841 research for better address to determine correct mailing of refund check. Update IDRS using ENMOD to correct address. Correcting the address will send the refund to the correct address (TC 018).

  6. Allow credit reference numbers 865-869/262 and PRN 692 for tax period 201412 and subsequent

  7. If MFT 35 post to tax period prior to 201412, research for correct MFT. If unable to determine correct MFT RJECT 640 and send to Originator

  8. If unable to determine the correct Reference number, PRN, or tax period, RJECT 640 and send return to Originator

Unpostable Code 290 RC 5 Form 3245 Undelivered or Refund Cancellation Reasons
  1. This condition occurs for the following reasons:

    1. TC 740 or TC 841 with a zero Undelivered Refund amount is present.

    2. TC 740 coming from RFC (Required Filing Checks) without cancellation code of 1, 2, 3, 8, 9, 40, 60–63, 71 or 72 is present.

      Note:

      Master File will bypass this condition if the first position of the check number is blank.

Correction Procedures UPC 290 RC 5
  1. Research TXMOD to see if a control base with activity code "841TOPOST" or Category Code 3913 or module indicates Output Review has stopped the refund, if the notation is on TXMOD the credit must post as a TC 841.

  2. Renumber and process the document per Unpostable Unit instructions Form 3245 Posting Voucher – Refund Cancellation or Repayment with TC 841.

  3. If no further information is found by the Unpostable unit and a better posting can not be found route entire case to Accounting.

Unpostable Code 291

  1. Use the following instructions for resolving UPC 291 with Reason Codes 1, 2 and 9.

Unpostable Code 291 RC 1
  1. Unpostable Condition 291 RC 1 occurs when the transaction amount is not compatible to transaction code.

    1. Transaction amount is not zero and the transaction code is 140/141/142/474/475/582/583 or 59X.

    2. TC 370 Doc Code 51 for a credit amount.

    3. TC 61X–69X with a reversal code other than zero and a Doc Code of 34 must have a zero primary amount and significant secondary amount (except TC 896 and 694).

    4. TC 150 with a negative liability.

    5. TC 610 with return Doc Code must be credit.

    6. TC 430 with a zero amount field (Doc Code 61).

Correction Procedures UPC 291 RC 1
  1. Renumber or cancel as appropriate.

Unpostable Code 291 RC 2
  1. Unpostable Condition 291 RC 2 occurs when Revenue Receipt transaction contains an invalid secondary transaction code:

    1. Secondary Transaction Code is other than 170, 171, 200, 270, 280, 360, 460, 472, 570, 770 or 772.

    2. Secondary Transaction Code 280 only valid for Primary Transaction Code 611, 641, 661, 671, 681, 691, or 721.

    3. Secondary Transaction Code 460 valid for Primary Transaction Code 670 only.

    4. Secondary Transaction Code 570 must have zero amount.

    5. Secondary Transaction Code 200 or 360, must have a significant amount.

    6. Secondary Transaction Code 770 only valid with Primary Transaction Code 721.

    7. Secondary Transaction Code 772 only valid with Primary Transaction code 720.

  2. Unpostable Code 291 RC 2 occurs when a TC 370 has any of the following conditions:

    1. Secondary TC 630 or 636 with ID number other than 02.

    2. Secondary TC 632 or 637 with ID number other than 03.

    3. Secondary TC 63X present and Doc Code 52 has a status indicator of 1.

    4. Secondary TC 63X is present and tax period is other than 197810 through 198011.

    5. Secondary TC 636 or 637 with Doc Code other than 52.

    6. Document contains an 870 Date with no secondary TC 300 present.

Correction Procedures UPC 291 RC 2
  1. If Revenue Receipt, correct secondary transaction as appropriate.

    1. If unable to correct and the secondary transaction contains a money amount, remove the TC and money. Add a Secondary TC 570 for blank. Notify SCCB of action taken.

    2. If unable to correct and the secondary transaction does not contain a money amount, remove the TC and continue processing.

  2. If TC 370 with assessment code TC 290 and Doc Code 51:

    1. If module already contains an 870 Agreement date, remove the agreement date and continue processing

    2. If module does not contain an 870 Agreement date, change the TC 290 to 300 and continue processing.

  3. If TC 370 with assessment code TC 290 and Doc Code 52, delete the DLN and forward the document to originator.

Unpostable Code 291 RC 3
  1. TC 29X, or TC30X Reference Numbers invalid

  2. TC 29X blocked 400–499 can only contain reference numbers 766 or 767.

  3. Reference Number 887 with an amount field greater than 99.

  4. Reference Number 262, 865-868 and amount is not significant, not valid on MFT 29/35/55.

  5. Reference Number amount is less than $.00 or higher than $.01.

  6. Penalty Reference Number (PRN) 692 input on TC 29X for MFT other than 35 and amount not significant.

  7. MFT 29, 35 and 55 invalid

  8. MFT 55 Adjustment Transactions TC 290 Doc Code 54 with invalid blocking series and credit reference numbers

  9. TC 370 carrying TC 290 Doc Code 51/52 is input to MFT 55 with invalid reference code

Correction Procedures Unpostable Code 291 RC 3
  1. The Valid reference numbers are: 003, 004, 007, 073, 221, 222, 250–260, 262, 330-336, 337 ( must contain priority code 9), 338, 339, 680–696, 764–767, 780-799, 806–811,865-868, 861-877, 878, 879, 880–890 (TC 30X only), 891, 892, 893-896, 897 (TC 29X only), 898, 899, 903, 904, 907, 973, 975–976, 993, 994, 995, 996, 997, 998, 999, 090 (TC 30X only).

  2. All reference numbers must be for a significant amount except reference number 090,334, 680–696, 886, 889, 890, and 999.

  3. MFT 55 Adjustment Transactions TC 290 Doc Code 54 must be Blocked 050–199, 520-539, 590–599, 800–899 or 960–999, and cannot contain secondary tax transactions (TC 294, 295, 298, 299). if secondary tax transaction present research for correct reference number. The primary transaction must be TC 290 with no significant money amount or TC 534/535: If the blocking series is 590–599, the record must be input with a reference number 500–599. The reference must be for a significant amount .If the blocking series is other than 590–599, a reference number may be input. Valid numbers are 339, 500–679, or 697–759. If reference number 698 is input, reference number 618, 697 or 699 must also be input in the first reference number field. Also allow reference number 766/767 if an OTN is input.

  4. If TC 370 carrying TC 290 Doc Code 51/52 is input to MFT 55: Reference numbers must be present for TC 370 unless the primary transaction code is TC 402. Valid reference numbers are 500–679. The reference number must be for a significant amount.

  5. Allow reference number 861/862 on TC 29X and TC 30X for MFT 30 and 31. Amount must be significant. Do not allow on MFT 29 or 55.

  6. Allow reference number 865-868/262 on TC 29X and TC 30X for MFT 30 and 31. Do not allow on MFT 29/35/55.

  7. Allow penalty reference number 692 on TC 29X for MFT 35 only. Amount must be significant. Reference Numbers are:

    1. Ref number 865 to adjust the Total APTC

    2. Ref number 866 to adjust the Total PTC

    3. Ref number 867 to adjust the APTC Repayment

    4. Ref number 868 to adjust the PTC Excess advance payment above the limitation

    5. Ref number 869 to add/reverse coverage checkbox - (value 1 = add) ( value 0 = reverse)

  8. Research for correct amounts, credit reference numbers, MFTs and blocking series. If unable to correct, RJECT 640 and send to originator.

Unpostable Code 291 RC 9
  1. Unpostable Condition 291 RC 9 occurs when TC 150 with transaction with invalid Information .

Correction Procedure UPC 291 RC 9
  1. Review to determine correct information.

  2. If unable to determine correct transactions RJECT 640 and send to originator

Unpostable Code 292

  1. Use the following instructions for resolving UPC 292 with Reason Codes 0, 1, 2, 3, 4 and 5.

Unpostable Code 292 RC 0
  1. Unpostable Condition 292 RC 0 occurs when EIC is greater than the maximum allowed for the tax period.

  2. See IRM 3.12.3 Error Codes 335, 336 & 338 and the Prior Year Job Aid, 2515–014, for the allowable amounts.

Correction Procedures UPC 292 RC 0
  1. Correct the EIC amount and assign appropriate TPNC. (See IRM 3.12.3 (Error Codes 335, 336 & 338) and Prior Year Job Aid, 2515–014, EIC PY information).

Unpostable Code 292 RC 1
  1. Unpostable Condition 292 RC 1 occurs if section word count is present and corresponding section is not input on the return.

Correction Procedures UPC 292 RC 1
  1. Enter the appropriate section with all applicable fields or delete the section that was erroneously entered.

Unpostable Code 292 RC 2
  1. Unpostable Condition 292 RC 2 occurs when TC 150 with doc code other than 07–12, 21–22, 26–27, or 72–73.

Correction Procedures UPC 292 RC 2
  1. Renumber the document with the appropriate doc code.

Unpostable Code 292 RC 3 & Unpostable Code 292 RC 4
  1. Unpostable Condition 292 RC 3 occurs when a:

    1. Non-math error return with IMF Total Tax Liability Computer not equal to IMF Total Tax Computer or

    2. Math error return with IMF Total Tax Computer equal to IMF Total Tax Liability Computer and Balance Due/Refund equal to Balance Due/Overpayment Computer.

Correction Procedure UPC 292 RC 3
  1. Correct math error. (See IRM 3.12.3)

Unpostable Code 292 RC 4
  1. Unpostable Condition 292 RC 4 occurs when TC 150 or TC 430 has any of the following invalid entity code address information present:

    • City character count +3, greater than City/State word count X5, and non-zero city character count

    • City character count or Major City Code is less than 2 characters

    • Entity Code is 1 or 3 and City/State word count is zero

    • Transaction with address data and invalid state code or major possession or blank city/state field

Correction Procedure UPC 292 RC 4
  1. GTSEC 01 and enter the complete address as shown on the return.

  2. Research IDRS CC INOLES and ENMOD for the address.

  3. If you are unable to perfect the entity from the information on the return, CC INOLES or ENMOD take the following action:

    If the address is... Then...
    A] Found on INOLES or ENMOD Enter the long entity (IRM 3.12.3.4.2)
    B] If an address is NOT found
    1. Enter IRS in Field 01ADD

    2. Enter your campus city and state in Field 01C/S and the ZIP code unique to that campus in Field 01ZIP

    3. Review EC 014

  4. The city, state, and ZIP Code for each IMF campus appear below:

    Campus City & State 01ZIP
    AUSPC Austin/TX 73301
    FSPC Fresno/CA 93888
    KCSPC Kansas City/MO 64999
Unpostable Code 292 RC 5
  1. Unpostable Condition 292 RC 5 occurs when entity code is 1, 4 or 5 and either of the following conditions is present:

    • Schedule SE SSN is invalid

    • Individual Retirement Arrangements (IRA) section when the significant type indicator and entity code is other than 2 or a non remittance, or FSC of 2 and IRA Spouse Indicator is zero

Correction Procedure UPC 292 RC 5
  1. Verify the entity information in Section 01 is correct. Compare and correct the Name, SSN, Address, City, State and Zip code on the return and the screen.

  2. Correct Schedule(s) SE. Ensure that the SSN on Schedule SE matches the Secondary SSN on the return (See IRM 3.12.2 Section 17 & 18, 29/30 and Section 01).

  3. Correct the IRA Spouse Indicator or filing status if Form 5329 is transcribed into Section 29/30 (the IRA Spouse Indicator is 1 for the Primary taxpayer and 2 for the Secondary taxpayer.

Unpostable Code 293

  1. Use the following instructions for resolving UPC 293 with Reason Codes 2, 3, 4 and 8.

Unpostable Code 293 RC 2
  1. Unpostable Condition 293 RC 2 occurs when SFR TC 150, Doc Code 10, blocking series 000–299 are present, the tax period is 198112 and later, and either of the following conditions are present:

    • Sections other than 1–6 are present

    • Tax data is present in Sections 4 through 6, other than Exemption Amount Computer, Standard Deduction Amount, Non Taxable Earned Income, or Form 6251 ADJ Computer amount

Correction Procedures UPC 293 RC 2
  1. Check transcription in Sections 1–6.

  2. If Sections other than 1–6 are present, delete the return and route back to originator.

  3. If data is present in Sections 4–6, other than the information previously listed, delete the return and route back to originator.

Unpostable Code 293 RC 3 & Unpostable Code 293 RC 4
  1. UPC 293 RC 3 occurs when TC 370 transaction amount is not equal to net money amount of all secondary transaction plus the civil penalty reference number amount.

Corrections Procedures UPC 293 RC 3
  1. Re-input the document.

Unpostable Code 293 RC 4
  1. Unpostable Code 293 RC 4 occurs when TC 150 containing IMF Total Tax Computer, Withholding Amount, or Excess Social Security Tax greater than 10 positions (i.e., $100,000,000.00).

Corrections Procedures UPC 293 RC 4
  1. Cancel "DLN" and route the document to Accounting for Non Master File Processing.

Unpostable Code 293 RC 8
  1. Unpostable Condition 293 RC 8 occurs when TC 150 has an Entity Code 1 (Long Entity), 4 (Partial Entity), or 5 (Partial Entity) and any of the following conditions are present:

    • The last name is not present

    • The first name exceeds the 35 maximum field length

    • The first name line is not present

Correction Procedures UPC 293 RC 8
  1. Enter the correct information in Field 01NL.

  2. Follow instructions in IRM 3.12.2 in accordance with entity information in IRM 3.12.2.4.3.20

Unpostable Code 294 RC 1

  1. This condition occurs when a TC 150 with DLN XX211-XXX-99XXXX containing CCC G and any of the following conditions apply:

    1. Entity code is other than 2 or 4; or

    2. Tax period is prior to 197301; or

    3. CCC 5 or 6 is not present.

    Note:

    CCC 5 is needed when Form 1040X shows one yes box checked for Presidential Election Campaign Fund (PECF). CCC 6 is needed when Form 1040X shows two yes boxes checked for the PECF.

Correction Procedures UPC 294 RC 1
  1. If Entity code is other than 2 or 4, Re-input the return using short entity.

  2. If tax period is prior to 197301, before releasing, research for correct tax period. If the tax period was correctly transcribed, cancel the return DLN. Notate on routing slip "Invalid tax period prior to 197301" . If tax period was transcribed incorrectly, re-input return with the correct tax period.

  3. If the return does not contain CCC 5 or 6, determine if one of those codes are needed. If CCC 5 or 6 is needed ensure CCC G precedes the CCC 5 or 6.

  4. For all other conditions, cancel DLN and route to Files

Unpostable Code 295 RC 1 and Unpostable Code 295 RC 2

  1. Unpostable Condition 295 RC 1 occurs when TC 150 has Entity Code 1 and CCC "G" (Amended Return) is present.

Correction Procedures UPC 295 RC 1
  1. If CCC G is correct, delete the address information.

  2. If the return should not be G coded, delete CCC "G" and enter all applicable sections. Refer to IRM 3.12.3.

Unpostable Code 295 RC 2
  1. This condition occurs when the Name Control (NC) must equal the first four significant characters of the last name (except Doc Code 63 transactions).

  2. Entity data posting incorrectly

Correction Procedures UPC 295 RC 2
  1. Verify the Entity information from the tax return with Section 01.

  2. Ensure the name, address, city, state and zip code are correct in each field.

  3. Compare the field with the return and overlay the correct Name Control. Blank the remaining positions when the primary taxpayer's last name is less than four characters. Refer to Document 7071, Name Control Job Aid, or IMF ERS Job Aid Book 2515–015.

Unpostable Code 299

  1. Unpostable Code 299 is for TC 150 with invalid fields/invalid transactions.

Unpostable Code 299 RC 0
  1. This condition occurs when an invalid received date is present. .

Correction Procedures UPC 299 RC 0
  1. Verify the received date on the return or attachments and correct any coding or transcription errors.

  2. Ensure the received date is not earlier than the ending month and year of the tax period in Field 01TXP.

  3. If the return is received timely delete the data in field 01RCD

  4. If the return has multiple receive dates enter the earliest received date in Field 01RCD.

  5. Verify and correct tax periods, dates, months, and year for Form 1040 on the following conditions:

    1. The date received must not be earlier than normal RDD month and year.

    2. If the input return is other than a timely filed current calendar year, then date received must not be subsequent to current (23C date) processing date.

    3. The month digits must be 01 through 12.

    4. The day digits must be 01 through 28 when month is 02, except when leap year, then day digits must be 01 through 29.

    5. The day digits must be 01 through 30 when the month is 04, 06, 09, or 11.

    6. The day digits must be 01 through 31 when the month is 01, 03, 05, 07, 08, 10, or 12.

      Note:

      Remember the format of the received date is YYYYMMDD YYYY for the year, MM for the month, and DD for the day YYYY for the year

  6. Be sure CCC Y is present for Short Year tax returns to change the accounting period at the Master File. See EC 260 for more information.

  7. Ensure the tax period is entered correctly for Fiscal Year tax returns. See EC 260 for more information.

  8. After all corrections have been made drop down to the BOTTOM of the screen and transmit.

Unpostable Code 299 RC 1
  1. Unpostable Condition 299 RC 1 occurs when an invalid field or section is present 1040/A/EZ.

  2. This condition also occurs when more than 25 TC 150s are received for the same MFT/Tax Period.

Correction Procedure UPC 299 RC 1
  1. Verify and correct tax periods, dates, months, and year for Form 1040

  2. After all corrections have been made drop down to the BOTTOM of the screen and transmit.

  3. If unable to determine correct dates, months, and year of Form 1040; RJECT 640 and send return to originator

Unpostable Code 299 RC 2
  1. Unpostable Condition 299 RC 2 occurs when:

    1. TC 150 contains significance in the Making Work Pay Credit or American Opportunity Tax (Hope) Credit , input to a tax period prior to 200912.

    2. TC 150 contains Section 61 and 62 Form 8919, Uncollected Social Security and Medicare Tax on Wages input to a tax period prior to 200712.

    3. TC 150 contains significance in the First-Time Homebuyer Cr-Computer for Tax Period other than 200812 through 201211.

    4. TC 150 contains significance in the Other Payment CR amount and the Other Payment Credit type is equal to R input to tax period other than 200812 through 200911.

    5. TC 150 containing significance in the Section 71 or 72 presence indicator input to tax period prior to 201312.

    6. TC 150 contains significance in the Taxable Investment Income amount input to tax period prior to 201312.

    7. TC 150 contains significance in the Additional Medicare tax on wages, Additional Medicare tax on SE Income, Tier I additional Medicare tax on Railroad Retirement Compensation amount, Additional Sch H tax for each spouse input to tax period prior to 201312.

    8. TC150 containing blanks in the Other Payment CR Type. Invalid codes are: 8, P, N, 4, X, F, 6, 1, B, Y, H, 3, 2, A, 9, 5, C

    9. TC 150 containing significance in the taxpayer health care responsibility penalty amount per computer or Total APTC/Total PTC/APTC Repayment/Reconciled PTC input to tax period prior to 201412.

    10. Modify UPC 299 RC 2 to unpost TY 2014 through TY 2016 return with a responsibility penalty per computer is more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    11. TC 150 containing significance in the Tax on Excess ABLE contribution amount for (Section 29 or 30) input to tax period prior to 201512.

    12. TC 150 containing significance in the Form 8839 Refundable Adoption Credit computer amount input to tax period prior to 201012 through 201211.

Correction Procedure UPC 299 RC 2
  1. Correct coding, transcription, and misplaced entries on displayed fields.

  2. Ensure all credits are input for the correct tax period

  3. Verify Sections 05, 61/62 , 71/72, 73/74 are entered correctly.

  4. Review return and determine type of refundable credit being claimed by the taxpayer.

  5. Ensure amount in Field 050TH and the code in Field 05TYP are correct.

  6. For Form 8863 for TY 2008 and prior, If an amount of .01 or more is entered in Field 0568V, remove the amount and manually compute the non-refundable credit and enter the amount in Field 0450V, (0433V Form 1040A) If Error Code 342 re-displays, enter "K" in Field 01SPC.

  7. For Form 8919 for TY 2007 and later, verify transcription in Section 61 & 62. Section 61/62 should not be present for tax years prior to 2007. Delete sections 61 & 62 if erroneously transcribed for TY 2007 and prior.

  8. Enter the other payment amounts and other payment credit types per IRM 3.12.2.8.4.17

  9. The Other Payment or Credit Type codes must be entered one space after the field title EXAMPLE: 05TYP M

  10. Codes for Field 05TYP are as follows:

    1. "A" - Refundable Adoption Expenses (TY10 and TY11 only)

    2. "I" - IRC 1341 Amount

      Note:

      GTSEC 01 and ensure "N" is present in Field 01SPC.

    3. "M" - Making Work Pay Credit (TY10 and TY09 only)

    4. "P" - Prior Year Minimum Tax Credit 2007 through 201311

    5. "R" - Recovery Rebate Credit (TY08 only)

    6. "S" - Withholding from Form 1042-S, AUSPC only

    7. "T" - Federal Telephone Excise Tax (TETR) (TY 06 only)

    8. "V" - Multiple Credits/Payments Identified

    9. "Z" - Other, or Unidentified Payment and First-Time Homebuyer Credit FTHBC (TY 08 - TY 11only)

    Note:

    If more than one payment or credit type, use code "V" .

    Note:

    Other payment credit type codes should not be 8, P, N, 4, X, F, 6, 1, B, Y, H, 3, 2, A, 9, 5, C

  11. Ensure the correct amount is entered for the responsibility penalty. Compare the lines to the form and adjust accordingly. The amount can not be greater than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  12. Correct coding and transcription errors or misplaced entries in Field 2951 or 3051 for Tax on Excess ABLE Contribution amount. The field should only be used for tax years 2015 going forward. Ensure field amount is from Line 51 Form 5329.

Unpostable Code 299 RC 3
  1. Unpostable Condition 299 RC 3 occurs when a TC 150 contains a credit amount in an Unallowable Total field.

Correction Procedure UPC 299 RC 3
  1. Correct coding and transcription errors or misplaced entries in displayed fields.

  2. If the credit is for Form 4136 review Form 1040 field 0572.

  3. Enter UA 85 and the amount on Form 1040 line 72 (Field 0572) when the credit amount claimed is $1,500 or more.

Unpostable Code 299 RC 4
  1. Unpostable Condition 299 RC 4 occurs when a TC 150 is present and the Primary SSN equals the Secondary SSN.

Correction Procedures UPC 299 RC 4
  1. Research IDRS and attachments for correct Primary and Secondary SSN

  2. Determine the correct Primary and Secondary SSN.

  3. Correct Section 01 and all applicable fields and sections with the correct SSN

Unpostable Code 299 RC 5
  1. Unpostable Condition 299 RC 5 occurs when:

    1. A TC 150 contains Basic Recovery Rebate Credit on Tax Liability greater than $1,200 for FSC 2 or greater than $600 for all other FSCs.

    2. A TC 150 contains Basic Recovery Rebate Credit on Qualifying Income for greater than $600 for FSC 2 or greater than $300 for all other FSCs.

    3. A TC 150 contains Additional Recovery Rebate Credit for Eligible Children for greater than $10,000.

Correction Procedures UPC 299 RC 5
  1. Correct coding and transcription errors on misplaced entries on displayed fields for Unpostable Condition 299 RC 5.

  2. Re-work the document using IRM 3.12.3 procedures.

Unpostable Code 299 RC 6 & RC 8
  1. Unpostable Condition 299 RC 6 occurs when:

    1. TC 150 for Tax Period 200812–201011 with significant First Time Home Buyer Credit amount in Section 58 (primary Form 5405) or Section 59 (secondary Form 5405).

    2. If First Time Home Buyer Credit NAP amount field for the primary is equal to zeros and check a box a , b, d, f, or g for Section 58 (primary Form 5405) is present.

    3. If First Time Home Buyer Credit NAP amount field for the secondary is equal to zeros and check a box a , b, d, f, or g for Section 59 (secondary Form 5405) is present.

Correction Procedures UPC 299 RC 6
  1. GTREC the DLN of the document.

  2. Input "R" in Field 02RI to revalidate the document.

  3. Follow instructions in IRM 3.12.3; Error Code 329 and EC 128.

Unpostable Condition 299 RC 8
  1. Unpostable Condition 299 RC 8 occurs when a TC 150 claiming First-Time Home Buyer Credit Section 58 & 59 are present/input before February 7, 2010.

  2. The TC 150 claiming First-Time Home Buyer credit amount per computer without Section 58 and/or Section 59.

Correction Procedures UPC 299 RC 8
  1. GTREC the DLN of the document.

  2. Input "R" in field 02RI for validation.

  3. Ensure sections 58 for the primary taxpayer & 59 for the secondary taxpayer are correctly transcribed.

  4. Follow the instructions in IRM 3.12.3, Error Code 329.

Unpostable Condition 299 RC 9
  1. This condition occurs when TC 150 with remittance attempts to post to MFT 32.

Correction Procedures UPC 299 RC 9
  1. If the return is a current year post the return with a CCC "3" .

  2. If the return is a prior year (tax period 2013 and prior) CCC "3" .

  3. If return has a remittance, post return and send remittance to Unidentified.

Unpostable Condition 325 RC 3

  1. Unpostable Code 325 RC 3 occurs when a credit reversal (TC XX2) with Doc Code 24, 47, 48 ,54 or 58 may have X-Ref, MFT, Tax Period 99/999999 (TIN) attempts to post and the input debit amount exceeds the module credit balance.

  2. The credit reversal exceeds the Master File module credit balance.

Correction Procedures 325 RC 3
  1. Correct coding, transcription errors and misplaced entries on displayed fields.

  2. Forward to 6800 Account Excess.

Reject Inventory Controls

  1. This subsection of the manual lists the procedures to be followed for controlling the reject inventory.

  2. Information in this subsection includes the following:

    • Reject Sequence Number (RSN)

    • Reject Register

    • Reject Register Summary

    • Reject Inventory List

    • Current Reject Listing

    • ERS Error File, Suspense File, and IMF Interest Jeopardy reports

    • SCRS Error and SCRS Reject Interest Reduction Initiative reports

    • Interest Reduction Initiative Summary for ERS and SCRS

Reject Sequence Number (RSN)

  1. Rejects are maintained on a separate computer file from Errors and BOB.

  2. The Reject Sequence Number is used to access each record on the file.

  3. The Reject Sequence number is in the following format which consists of: X–XXX–XXXXXX

    1. Position 1 — year digit.

    2. Positions 2 through 4 — Julian date plus 600.

    3. Positions 5 through 10 — Consecutive serial number, beginning with 000001 for all new rejects on the file.

Reject Register

  1. See ( Figure 3.12.37-42) for an illustration of the reject register.

    Figure 3.12.37-42

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  2. The Reject Register will remain in the Rejects Unit until the register is coded for transcription.

    1. If the document must be routed elsewhere, maintain a register file in DLN sequence order. Notate at the top of the register the date and area where the document was routed.

    2. Associate the document with the register when it is returned.

  3. All reject register corrections should be made with a colored pen/pencil or in accordance with campus procedures.

    1. As the registers are corrected, the documents should also be perfected. Circle any CCC "U" .

    2. All document corrections for re-input or renumbered documents should be made with a red pencil .

Reject Register Title Line
  1. The first line of the reject register is the title line.

  2. Each register contains a literal in the title line which identifies the register as "raw" , "loop" , "re-reject" , or "special" .

  3. The Entry Source Code is located on the title line. It identifies the last status of the document before it was rejected. The Entry Source Codes, and the meaning of each, are in the following list:

    1. D-Raw Input—If the last function handling the document was ISRP. The document was CCC "U" coded by Code and Edit.

    2. B - Corrected BOB — After ISRP, the block of document was worked by the BOB Resolution function.

    3. U- Unpostables — The document was nullified to Rejects by Unpostables. The "U" will be followed by the Unpostable Code.

    4. E– Error—The error register was "3" coded by Error Correction.

  4. The program number is printed to left of the name of the program on the title line.

Reject Register Identification Line
  1. The second line is the document ID line.

  2. The batch number is printed between the ABC and DLN.

  3. The correction loop and correction match counter identifies the number of times a register has printed and the number of times a correction record has attempted to post to good tape. The loop counter and match counter are reset for re-rejects.

  4. The last number on the right is the last action code used.

  5. Each Reject is matched with its corresponding document. Make sure the DLNs and TINs on the register and document match.

Reject Register Summary, GMF–11–45

  1. The Reject Register Summary lists all programs and categories of reject registers printed for the day.

  2. This summary should be used to ensure that all registers have been received. The summary may be used to assist in work assignment or resource allocation.

Reject Inventory List, GMF–11–43

  1. The Reject Inventory List is a listing of all items in the reject inventory as of the date of the listing.

  2. The listing may be produced in any of the following sequences:

    • Document Locator Number

    • Reject Sequence Number

    • Taxpayer Identification Number

  3. The Inventory list should be produced at least once a week as a research tool for items in rejects. Retain this list for at least one year.

  4. The Reject Display Card is used to request the inventory list and select the sequence(s) for the list to be printed.

Current Reject Listing, GMF–11–46

  1. The Current Reject Listing is a daily list of all items added to reject inventory on that date. ( Figure 3.12.37-43 )

    Figure 3.12.37-43

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  2. Some items may be added and removed from the inventory during the same week and never appear on the Reject Inventory List. These items can only be researched on the Current listing.

  3. The Current Reject Listing may be printed in DLN or RSN sequence, or both. Use the Reject Sort Card to request the sequence.

ERS–17–44 Error File, ERS–17–45 Suspense File, IMF Interest Jeopardy Reports

  1. These reports are generated from the error tape file and Reject Transaction File in an effort to reduce the amount of interest paid by the IRS.

  2. The reports include:

    • BLOCK NUMBER

    • BATCH NUMBER

    • DLN

    • TAX PERIOD

    • STATUS

    • RECEIVED DATE

    • EXPIRATION DATE

    • OVERPAYMENT

    • CONTROL DATE

  3. ERS–17–44 and ERS–17–45 are daily reports and they list overpayments in excess of $1,500 that may not be processed within the 45–day interest-free period. Items included are those with a Tax Class 2 an MFT 30 and the received date is 25 or more days. ( Figure 3.12.37-44 and Figure 3.12.37-45 )

    Figure 3.12.37-44

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    Figure 3.12.37-45

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  4. Documents listed on ERS–17–44 or ERS–17–45 require expedited corrective actions to refund the overpayment.

    1. Locate the Error and Reject item listed and resolve immediately.

    2. Notate the report with the date of correction and the Tax Examiner's initial to the right of the overpayment column.

GMF–61–41, Interest Reduction Initiative Summary SCRS and ERS

  1. Use the Interest Reduction Initiative Summary GMF–61–41 to pinpoint the range of overpayments and the number of returns falling into each category.

  2. The GMF–61–41 Summary Report includes the following data ( Figure 3.12.37-46

    • RANGE OF OVERPAYMENT.

    • NUMBER OF ERROR RETURNS-ERS.

    • NUMBER OF ERROR RETURNS-SCRS.

    • NUMBER OF REJECT RETURNS-ERS.

    • NUMBER OF REJECT RETURNS-SCRS.

    • NUMBER OF ERROR AND REJECT RETURNS-ERS.

    • NUMBER OF ERROR AND REJECT RETURNS-SCRS.

    Figure 3.12.37-46

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  3. The GMF–61–41 Summary Report includes the following breakdown of the RANGE OF OVERPAYMENT data:

    • $1,500–$1,999

    • $2,000–$2,999

    • $3,000–$3,999

    • $4,000–$4,999

    • $5,000–$9,999

    • $10,000–$14,999

    • $15,000–$999,999

    • $1,000,000 AND ABOVE

  4. GMF–61–41 ERS/SCRS Interest Reduction Initiative Summary (Error and Rejects) is a daily report and it lists overpayments in excess of $1,500 that may not be processed within the 45–day interest-free period. Items included are those with a Tax Class 2, MFT 30 and the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Documents listed on GMF–61–41 ERS/SCRS Summary report require expedited corrective actions to refund the overpayment. Documents listed in the higher dollar amount should be corrected first.

    1. Locate the Error or Reject item listed and resolve immediately.

    2. Notate the report with the date of correction and the tax examiners initial to the right of the overpayment column.

ERS Suspense Inventory Control

  1. This subsection of the manual lists the procedures to be followed for controlling the ERS suspense inventory.

  2. Information in this subsection includes the following:

    • Types of suspense records

    • ERS Status Codes

    • ERS reports

    • Workable inventory display

    • Maintaining the ERS suspense file

Types of Suspense Records

  1. A suspense record may originate from:

    1. Code and Edit—An Action Code is edited and transcribed as part of the data record.

    2. ERS—A record may be suspended for additional information by either Error Correction or Suspense Correction. The ERS Tax Examiner may suspend a record for deletion.

    3. Unpostable Resolution—Rejects will receive certain unpostables for correction that are uncorrectable by the Unpostable Unit. Additionally, designated Unpostables are automatically routed to Rejects for correction by the computer. This will eliminate the necessity to nullify and re-transcribe the entire record. These records are placed in the Workable Suspense Inventory for immediate resolution.

  2. Suspense records appear on one of two inventories.

    1. Records requiring correspondence, research, or routing to other campus functions are placed in the Unworkable Suspense Inventory to await additional information.

    2. Records that are immediately resolvable are placed in the Workable Suspense Inventory. These records should be controlled and assigned to tax examiners for resolution as they appear on the Workable Suspense Inventory.

  3. The Action Code determines in which inventory a record appears. For a specific list for a workday suspense period, see Exhibit 3.12.37-2.

ERS Status Codes

  1. Records wait in suspense under different Status Codes, which are determined by the Action Code assigned. The second and third digits of the Status Code are the same as the first and second digits of the Action Code. The first digit of the Status Code indicates whether the record is in the Workable or Unworkable Inventory.

  2. Records held for quality review are in status "1QA" for Worked Error Records, and "3QA" and "4QA" for Worked Suspense Records.

  3. All error records on the real-time file are included in Status 100. Error records waiting to be loaded from the ERS 01 file are identified on CC ERVOL as status 900.

  4. For a listing of the ERS Status Codes, see Exhibit 3.12.37-21.

Workable Suspense Inventory Summary, ERS–13–43

  1. This report shows the total number of records in the workable Suspense Inventory by program number and number of days in Workable Suspense. ( Figure 3.12.37-47 )

    1. Each program is printed on a separate page and counts the number of days in Workable Suspense for items in each Status Code. A separate page provides totals for each Master File.

    2. All items in Workable Suspense should be resolved or resuspended within 5 work days.

    Figure 3.12.37-47

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  2. This report is used to monitor the timely resolution of Workable Suspense records.

Workable Suspense Inventory, ERS–13–42

  1. This report lists by DLN, each record in the Workable Suspense Inventory and the total number of days the record has been in ERS. ( Figure 3.12.37-48 )

    1. The records are listed in DLN order for each program. Separate pages with totals for each program are provided.

    2. Separate inventories will be provided for each Suspense Status in each Master File. Separate reports will be printed showing the records in inventory by the number of working days the records have been in the inventory.

    Figure 3.12.37-48

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  2. Items identified as zero days in Workable Suspense reflect the complete inventory of records newly assigned to Workable Suspense.

    1. These items should be resolved within 5 work days. If a case cannot be closed and requires additional action (i.e. second correspondence, routed to Entity, etc.), suspend using the appropriate action code.

    2. Records will appear on the Workable Suspense Inventory listing (ERS 13–42) in 5 day intervals until resolved.

    3. All listings of 10 or more days should be routed to the person designated to work aged cases.

Workable Inventory Display

  1. Command Code ERVOL shows, by ascending program number, the current number of records in the Workable Error Inventory and Workable Suspense Inventory. Separate displays will be provided for each status and shows the time and date of the display.

  2. This report is used for work planning and control and indicates the volume of unworked Error Records remaining that day. ( Figure 3.12.37-49 )

    Figure 3.12.37-49

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Unworkable Suspense Summary, ERS–07–41

  1. This report shows the total number of records in the Unworkable Suspense Summary for each status code based on the number of days remaining in suspense. Separate Inventory and Summary reports and totals are printed for each Master File. ( Figure 3.12.37-50 )

  2. The Unworkable Suspense Summary report provides an overview of the status code and age of the records and may be used to project the number of items that will become workable on future dates.

    Figure 3.12.37-50

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Unworkable Suspense Inventory, ERS–07–40

  1. This report provides the same information as the Unworkable Suspense Inventory, except it contains further breakout by program number.

  2. This report is especially useful for programs approaching a completion date to identify the type of documents in the inventory. ( Figure 3.12.37-51 )

    Figure 3.12.37-51

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Maintaining the ERS Suspense File

  1. ERS Suspense records are automatically moved to the Workable Inventory when the designated suspense period has expired.

  2. Associate the expired suspense documents or charge-outs with the workable Suspense Inventory listing. Review to determine if the documents are ready to be worked. If the document was routed to another area of the campus, contact that area to determine if the document has been completed.

    1. If not, resuspend with the same action code and place back in the suspense file.

    2. Check the correspondence to ensure that the taxpayer has had at least 10 days beyond the date stated in the letter for response. Do not mark as No Reply or route to tax examiners without verifying the actual expiration date of the letter.

  3. When correspondence replies are received, input CC ACTVT to move the returns to the Workable Suspense Inventory.

Disposition of ERS Records and Documents

  1. This subsection of the manual lists the procedures to be followed for the disposition of ERS records and documents.

  2. Information in this subsection includes the following:

    • General information

    • Rejected records list

    • Data control deletes

    • Duplicate DLNs

General Information

  1. While a record is in ERS, it will appear on an inventory listing and will be controlled by the DLN. When it is corrected or cleared, no verification of correction is required for an ERS record.

    1. Deleted records must be matched against the Rejected Records List.

    2. The routing of the document depends on the action shown on the listing.

  2. Managers have production reports available to monitor the volumes of records worked and to be worked.

  3. Tax examiners will have Daily Employee Time Reports to record their individual time spent and volume on ERS.

Rejected Records List, ERS–05–40

  1. This report lists each record that is deleted from ERS. It is printed each day and contains the following: ( Figure 3.12.37-52 )

    • Original DLN

    • Master File Code

    • Block Number

    • Batch Number

    • Primary TIN

    • Name Control

    • Employee number of Tax Examiner who rejected the record

    • Action Code used

    • Renumbered DLN (and MFT, if applicable)

    • New Master File Code

    • Total number of Rejected Records

    Figure 3.12.37-52

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  2. For each rejected record, there is a charge-out, with the literal "REJECT" .

    1. Make sure that you have a document and charge-out for each entry on the Rejected Records List.

    2. Contact Data Controls if the documents are available for Action Code 600. They are probably looking for the documents.

  3. Route the documents according to the Action Code shown on the listing.()

    1. Action Code 610 or 611 —Renumber. After verifying that the same DLN is shown on the New DLN Summary as on the document, route the documents to Batching with the new Form 813 or 1332. Action Code 611 items that show a literal should be routed to Accounting.

    2. For Action Code 620, route the documents to the NMF function in Accounting.

    3. Items with Action Code 630 are routed to Batching for re-input after verifying that Form 3893 has been prepared for each block DLN. Occasionally, Action Code 630 is entered for non-re-input items where later manual SCCF adjustments will be prepared.

    4. Action Code 640 indicates documents that have been voided. Route campus initiated documents to the originator. Otherwise, route to Files unless other routing instructions are attached to the return.

    5. Action Code 651 –Route International documents to the Austin Submission Processing Campus per local procedures. Prior to transshipping line through the DLN. (See IRM 3.12.37.27.1).

    6. Action Code 660 —Data Control Delete. Route to Data Controls if not already sent.

    7. Action Code 670 —Missing documents. Attach all documentation and research to the approved Form 6752 and retain in the closed missing documents file. A separate copy of Form 6752 is routed with Form 8161 (Charge-out) to Files.

  4. Keep the Rejected Records List for one year as a reference.

Data Control Deletes

  1. Data Control Deletes are removed from ERS with Action Code 660. These are records that have been selected by Data Control in Accounting for deletion.

    1. Data Control function may access an ERS record and delete it, instead of indicating to ERS Tax Examiners which records to delete at the campus option.

    2. Regardless of the method used to enter "RJECT 660" , the documents will be pulled by Data Control.

  2. Compare the DLNs with Action Code 660 on the Rejected Records List with the list of deletes received from Data Control to ensure that the correct records were deleted. If Data Control has deleted the records by accessing the ERS file, no verification is necessary.

    1. If the correct documents were deleted, destroy the charge-outs and mark both lists to show that the items have been deleted.

    2. If any Action Code 660 charge-out does not match the Data Control list, pull the document using local procedures and annotate the Rejected Records List and all copies of the charge-out that the record was deleted in error. Route the document and remaining copies of the charge-out (according to local procedures) for preparation of the necessary forms to adjust the SCCF and reenter the document.

Duplicate DLNs

  1. The Document Locator Number is used in ERS to control every record on the file. Items in the error inventory are controlled by block DLN, while suspense records are controlled by 14–digit DLN.

  2. If a block DLN attempts to establish on the error inventory for a DLN that is already on the file, the record is passed to the Suspense Inventory.

    1. If the 14–digit DLN does not match another on the workable inventory, the record will become part of Workable suspense, with a generated Action Code 700 and Status Code 470.

    2. After accessing the Suspense Record by 14–digit DLN, clear the Action Code 700 and correct as an error record.

    3. If ERS 19–40 is generated work the workable document first, then activate unworkable and cancel DLN

ERS Inventory
  1. Identical 14–digit DLNs are not permitted in the same ERS inventory at the same time.

  2. If a second record attempts to establish on either the Workable or Unworkable Suspense Inventory, one is purged from ERS.

    1. A record already on the Unworkable file has priority over a new record trying to establish on that file.

    2. A record on the Workable file has priority over a new or Unworkable record attempting to establish on the Workable file.

    3. A record being activated from the Unworkable file has priority over a new record trying to establish on the Workable file.

Purged ERS Records
  1. All purged ERS records are listed on the Duplicate Document DLN Register.

  2. The Action Code indicates the previous status of the record being purged. The codes are as follows:

    • 711 – From Code and Edit

    • 712 – From Error Correction

    • 713 – From Unpostables

    • 714 – From Unworkable Suspense

  3. No SCCF control records are produced for documents purged from ERS. If not prepared by Data Control, use Form 4028 to correct the SCCF for deleted and/or renumbered documents.

  4. Most duplicate DLN cases will have already been identified by the Data Controls function in Accounting.

    If Data Control... Then...
    A] Has already requested deletion of the document on the duplicate listing, No further action is necessary. The document has already been deleted from ERS and Data Control will complete the required action on the SCCF.
    B] Has requested deletion of the other document with that DLN, Enter "RJECT 660" for the DLN on ERS. Then reenter the document erroneously deleted from ERS. Contact Data Control or research the SCCF with CC SCFTR to ensure that the SCCF will accept this reentry. It may be necessary to prepare Form 4028 with From-To Code 3–0 or 4–0 before routing the document to Batching with Form 3893.
    C] Wants both documents deleted, Enter "RJECT 660" and route to Accounting any documents not already pulled.
    D] Has not identified the duplicate condition, Contact Data Control for further instructions. SCCF research will be used to determine if the documents must be reentered.
  5. A 3 part charge-out is generated for each item on the duplicate listing.

    1. For Action Codes 711 and 712, the documents should be located in blocks still in the Error Correction work area.

    2. For Action Code 713, the documents have been routed by Unpostables to Error Resolution. Detach and route the original copy of the charge-out to Files for insertion into the block.

    3. If the documents are already charged to ERS Suspense, route the original copy of the charge-out to Files for insertion into the block next to the previous charge-out for Action Code 714.

    4. Regardless of Action Code, the documents may have already been charged to Data Control. Insert the original copy of the charge-out into the block where the document had been previously filed.

    5. The second copy of the "Duplicate" charge-out may be destroyed when the case is resolved, or the second copy may be attached to the back of the return to provide an audit trail.

  6. All duplicate DLN cases raise questions regarding the validity of any record still on the ERS file for the block DLN.

    1. If the duplicate DLN is not resolved immediately, enter CC SSPND 420 for all documents on the Workable ERS file for the block DLN in question.

    2. Pull the block or blocks of documents and do not release (except to Data Control) until the case is resolved.

Loose Documents

  1. This subsection of the manual lists the procedures to be followed for loose documents.

General Procedures

  1. A loose document is any document, form, or letter that was detached or cannot be associated with other related forms.

  2. When a loose document is found, check the inventory to see if the case is in ERS.

    1. If it is in the inventory, use the information to complete the case.

    2. If correspondence was sent to the taxpayer, send a Form 5260, Quick Note, to inform the taxpayer that the missing information has been found. Let the taxpayer know that no further action/information is necessary from them to process their return.

    3. If the taxpayer sends in the requested information, route it to Files for association with the original return.

  3. If the loose document is not in ERS inventory, use IDRS to determine if the return is controlled.

    1. If it is controlled, route the document to the correct area.

    2. If the loose document is not controlled, send all the documentation to Accounts Management.

    3. If a loose document is not controlled, and TC 150 is posted, follow Late Reply Procedures IRM 3.12.37.28.14.

Suspense Action Codes

  1. This subsection of the manual lists the procedures to be followed for the disposition of ERS records and documents.

  2. Information in this subsection includes the following:

    1. Assigning Action Codes to resuspend records

    2. Use of the suspense charge-out by tax examiners

Assigning Action Codes to Resuspend

  1. During suspense correction, the Suspense Tax Examiner may decide to resuspend a record if either of the following conditions is present:

    1. Additional research or correspondence is needed.

    2. An incorrect action code was assigned in Code and Edit or Error Correction.

  2. For a complete list of ERS Action Codes, See Exhibit 3.12.37-2

Use of Suspense Charge-Out by Tax Examiners

  1. For each suspense record, a Form 8161, ERS charge-out is generated. Information included on the charge-out is as follows:

    • Primary TIN

    • Form Number of Document

    • Tax Period

    • Current Date

    • Original DLN

    • Name Control

    • Control Day—Julian date of the GMF processed date

    • Literal "ERS"

    • Literal "Suspense"

    • Remittance Amount

    • Action Code description

    • Alpha Block Control

    • Batch Number

    • Employee Number of Error Correction or Rejects Tax Examiner

  2. Each charge-out has an original and two copies. The two copies should be attached to the document when the Rejects TE receives a suspense case.

  3. Use the charge-out to record such actions as:

    1. Resuspending—Enter the new Action Code and the date you resuspended the record.

    2. Routing to other areas—"X" the appropriate campus function or "other" listed on the Form 8161.

    3. Recording data received from research or history items.

    4. Processing instructions for the person who may follow up on the case after you.

    5. Deleting a record with CC RJECT or NWDLN; enter the Action Code assigned and the date of deletion.

Other ERS Functions

  1. This subsection of the manual lists the procedures to be followed for other ERS functions.

  2. Information in this subsection includes the following:

    • Production reports

    • Daily employee time reports

    • Command Codes EREMP and Maintaining CC EREMP and ERUTL

    • Employee name and organization file

Production Reports, ERS–77–40 and ERS–77–41

  1. The Error Resolution Production Report, ERS–77–40, shows the number of hours worked, the volume of documents worked, the production rates and the disposition of the records worked for each individual tax examiner by program. ( Figure 3.12.37-53 )

    1. To be included in ERS production reports, each employee must have an Employee Identification Number with 340 through 389 in third, fourth and fifth positions.

    2. The report with totals will be prepared for each program in Error Correction and the program and status in Workable Suspense Correction.

    Figure 3.12.37-53

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  2. This information will be used by management for monitoring performance. It will also be used to detect possible misuse of Action Codes.

  3. The Production Summary, ERS–77–41, gives a total for each item monitored by the Production Report, categorized by program for Error Correction and Suspense Correction. ( Figure 3.12.37-54 )

    Figure 3.12.37-54

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Daily Employee Time Reports, ERS–77–46 and ERS–77–47

  1. The Error Resolution Daily Time Report shows the number of hours worked and the volume of records worked, by ascending program number and the total, for each tax examiner, for both Error Correction and Suspense Correction. ( Figure 3.12.37-55 )

    1. The report will show the employee's identification number and name. Separate pages with employee totals will be printed for each employee.

    2. The pages will be printed by ascending employee identification number in each organization.

    Figure 3.12.37-55

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  2. The employee uses this report to prepare his or her individual employee time reports.

  3. The Daily Employee Time Report Summary gives a total for each item monitored by the Daily Employee Time Report . The total is given for each organization, Error Correction and Suspense Correction. ( Figure 3.12.37-56 )

    Figure 3.12.37-56

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Command Code EREMP

  1. Command Code EREMP is used to add, delete, or change employee records on the Employee Name and Organization File, or to designate a specific employee for Quality Review Analysis the following day. Enter CC EREMP on line 1 and transmit.

    1. Your response will be the EREMP format with column headings on line 2, and all fields

    2. Enter on the fifth line the appropriate Action Indicator, the 10 digit Employee Number, and if applicable, the unit number, the employees first initial, middle initial and last name.

    3. If you wish to enter actions for additional employees, enter the appropriate data on the remaining lines, on e per line through line 23.

    4. Your response will display of EREMP with all the entered data fields for all records processed correctly.

    5. Invalid entries will result in a display of that line with an Error Code in positions 64-65.

  2. Command Code EREMP is restricted to designated managers and Quality Assurance personnel (See Job Aid For ERS Managers, 2515–019). Instructions for the ERS Quality review system and the use of Definer ! with EREMP are included in IRM 3.30.28.5.6.1, Work Planning and Control - Individual Review.

    Note:

    EREMP is overwritten by QRSEL. If an employee is chosen for QRSEL, no information will show on EREMP.

Maintaining the File for EREMP

  1. All employees are held in TIP file 28 that are added via EREMP (Action Code A) until they are deleted with an Action Code D in EREMP and passed through ERS83 to execute the deletion. The TIP file is never dumped so employees will remain in the file year after year. It is the responsibility of the service center to ensure the review and “clean up” their TIP file 28 by utilizing definers in EREMP.

  2. If your site is experiencing issues with adding employees for review using CC EREMP, it is likely that you have exceeded the limit in the TIP 28 file.

  3. To clean up your site's TIP 28 file, you need to identify all employees in the file:

    • Access EREMP to load a blank screen,

    • Input R in the Action Code,

    • Input ALL in the employee number.

  4. EREMP will return a complete list of all employees in the TIP 28 file. Verify all employees listed and identify employees that need to be deleted.

  5. Delete employees no longer under review from your file using Action Code D and the employee number. The employee(s) will be deleted when ERS83 runs at the end of the day.

    Note:

    Employee numbers are not validated by the program and you will not receive any error message.

Employee Name and Organization File

  1. The Employee Name and Organization File is the controlling file for the Production Reports and the Daily Employee Time Reports.

    1. Whenever a new employee is assigned to ERS, that employee must be added to this file.

    2. Whenever a current employee is reassigned from or within ERS, the file must be updated.

  2. Enter CC EREMP to obtain the display of the entry format, then enter below the "Xs" the Employee Action Code, the ten–digit Employee Number, the unit number, the employee's first initial, middle initial, and last name.

    1. Enter the appropriate Employee Action Code for each employee to indicate the action to be taken. Data for multiple employees may be entered on one screen.

    2. The response will be the display of EREMP with the data entered without an error code. Invalid entries will result in a re-display of that line entry with an Error Code in the last column of the screen display.

Employee Action Codes
  1. The Employee Action Codes are listed in this subsection of the manual.

  2. A—Add a new employee. All fields must be present (middle initial excepted). Each Employee Number must contain 340 to 389 in the third, fourth and fifth positions.

  3. C—Change the information in a current employee's record. The Employee Number must be present. Only the remaining fields to be changed are required.

  4. D—Delete a current employee's record. Only the Employee Number is required.

  5. R—Display this employee's current information. Only the Employee Number is required.

    1. This response will be a re-display of this line including the employee's data.

    2. To request all of the data on the Employee File, enter "ALL" .

Error Codes
  1. The Error Codes are listed in this subsection of the manual.

  2. E1 — Invalid Employee Action Code. The code is other than A, C, D, or R.

  3. E2 — An attempt was made to add a new employee when an employee record already exists with the same employee number.

  4. E3 — An attempt was made to change an employee record, delete an employee record, or display an employee's current information when there is no employee record with that employee number in the file.

  5. E4 — Invalid program number.

  6. E5 — Invalid quantity.

  7. E6 — Attempt to delete an employee from Quality Review who was not marked for review.

  8. E7 — Attempt to display Quality Review information for an employee who was not marked for Quality Review.

  9. E8 — Non-numeric employee number.

Command Code ERUTL

  1. Command Code ERUTL is a utility command designed to display several different areas within the ERS record for research purposes. It can be used to display the following:

    • Section problem indicators (Priority II Errors)

    • The error code and clear code indicators (Priority IV Math and Consistency Errors)

    • Section presence indicators

    • Selected header information

    Note:

    This code is valid for workable records or on the day the record is worked.

  2. If only CC ERUTL is entered, a screen listing the available function codes and their uses will be displayed.

ERUTL Function Codes
  1. The three-character codes perform the functions described in this subsection of the manual.

  2. DPD —displays section problem indicators for Priority II section problems.

  3. DEI —displays field error indicators for Priority III Errors.

  4. DEC —displays Error Codes and Clear Codes for Priority IV Errors.

    1. An "*" appears where an error code is set.

    2. A "C" appears where an error code is cleared.

  5. DSP —displays section presence indicators.

    1. A "0" indicates section is not present.

    2. A "1" indicates section is present.

  6. DHR —displays the following ERS header information:

    • Line 1—Header information (DLN, current date, and time)

    • Line 2—Blank

    • Line 3—Document DLN

    • Line 4—Document program number

    • Line 5—Employee Number (last person to update the record)

    • Line 6—Shows a "Y" if the record has an invalid action code (Priority I Error)

    • Line 6—Shows an "R" if document was reworked

    • Line 7—Displays any Action Code assigned to the record

    • Line 7—File from which the record was loaded (Error or Suspense)

    • Line 8- ERS worked indicator ("W" for Worked or "U" for Unworked)

    • Line 8—Disposal code listed in the following (8)

    • Line 9—The Action Taken is listed in the following (7)

    • Line 10—Any remittance amount displayed with the error record

    • Line 10—DLN of the record

    • Lines 11 - 13 - CAPR Code Modules

    • Line 14—RPS Indicator is listed in the following (9)

    • Line 15 - EIF Access Indicators

    • Lines 16 - 23 - NAP Access/Response Indicators

  7. The line 9 Action Taken for the parameter "DHR" are as follows:

    1. CORRECTED—indicates error free record.

    2. NEW DLN XXXXX-XXX-XXXXX-X—indicates a new DLN was assigned.

    3. SUSPENDED—indicates record was suspended.

    4. NOT WORKED—indicates record is not worked.

    5. REJECTED—indicates record was rejected. It listed the reason it was rejected such as: NMF/NON-ADP, REENTRY (re-input), VOID, INTERNATIONAL, DATA CONTROL DELETE, or MISSING DOCUMENT.

  8. The line 8 Disposal Code can be one of the following:

    • 1—error record awaiting correction

    • 2—suspense record awaiting information

    • 3—suspense record with expired suspense period

    • 4—suspense record with information

    • 5—record was deleted

    • 6—record is corrected and error free

  9. The line 14 RPS indicator can be one of the following:

    • Blank—for non-ISRP

    • S—for IMF ISRP

    • 2—for BMF ISRP

Research

  1. This subsection of the manual lists the procedures to be followed when researching for documents needed by other functions.

Research for Documents Needed by Other IRS Functions

  1. The Control Unit and Reject/Suspense Unit frequently receive calls or visits from other IRS employees attempting to locate documents that may be in the reject inventory. These requests should be accommodated whenever possible.

  2. The Reject Manager may authorize certain restrictions to this outside access to expedite handling of these inquiries and reduce interruptions to normal rejects activity.

    1. Area Offices may be required to call only at specified times or to combine the requests into one or two calls per week.

    2. Submission Processing Campus personnel may be required to call or visit only during certain hours, prepare a specified local form, or may be required to do their own research. Any function which frequently visits Rejects may be given its own copy of the Reject Inventory List.

    3. Taxpayer Advocate Service (TAS) has priority on Hardship Cases.

  3. Research the correspondence suspense file, the file copies of reject registers, and the inventory lists as needed. It may also be necessary to search the following:

    • Closed registers

    • The Forms 3210 for documents temporarily reassigned

    • The disposition list

    • The current work inventory

  4. If the requested document is in the reject inventory, pull the document immediately and attempt to resolve. The requesting organization may have the information needed to resume processing.

  5. The ERS Control File is available for research from any SCRS terminal, using CC ERINV and either the TIN or DLN. Other functions should be encouraged to use this method, rather than asking Error Resolution to do the research. The ERS Status Code, Days Remaining in Suspense, and the Control Day also display.

Correspondence

  1. This IRM subsection contains the lists of required procedures to be followed for taxpayer correspondence and must be used in conjunction with IRM 3.12.3.2.9 to avoid situations where subsequent correspondence cannot be initiated. Additionally, this subsection also provides instructions for working correspondence received from taxpayers.

  2. Letters generated by Submission Processing must be approved by Headquarters when they are intended for dissemination to 10 or more persons. These letters are numbered in accordance with IRM 1.17.1 and IRM 1.17.2, Printing and Publication. Form letters, pattern letter, and pattern paragraph are prescribed by Headquarters for use in service centers. Do NOT make changes to text format, date of issue (or revision), or physical characteristics of these letters and paragraphs without prior Headquarters approval. In addition, Quick Notes that are computer generated must be forwarded to Headquarters for approval. Submit request for new letters using Form 1767, Publishing Services Requisition, following procedures outlined in 1.17.1 and 1.17.2 for minor changes or additions to current letters, follow procedures in IRM 3.0.275, Business Results Measures for Submission Processing Functions.

  3. Information in this subsection includes the following:

    • Taxpayer correspondence

    • Signature Requirements

    • Quick Notes (Form 5260)

    • Correspondence suspense

    • Streamline International Correspondence

    • FIRPTA Credit Verification

    • Form 4442 Referrals

    • IPSU and Suspected Identity Theft

    • Second correspondence

    • Telephone contact

    • Field 02RPD Return Processing Date (RPD)

    • Replies to Letter 5858 and 5862

    • Replies to Correspondence

    • MeF Replies

    • Identity Theft - Related Replies

    • No Reply Cases

    • No Reply Processing Instructions

    • Undeliverable

    • Late Replies

Taxpayer Correspondence

  1. All Taxpayer Correspondence is defined as, but not limited to the following:

    1. All written communications from a taxpayer or his or her representative, excluding tax returns, whether solicited or unsolicited.

    2. Written communication in response to IRS requests for information or data.

    3. Written communication which requests information, including requests that may accompany tax returns.

    4. Written communication, including annotated notice responses, that provide additional information or dispute a notice.

  2. If the taxpayer has responded to an IRS request or the taxpayer has initiated a request, the action should be completed in 30 days. If not, an interim reply must be made telling the taxpayer when we expect to complete the required action.

  3. Correspondence must be issued as soon as possible, but no later than 10 business days from the ERS Suspense date. If correspondence has not been issued within 10 business days, ACTVT and resuspend correspondence immediately and issue correspondence.

  4. If taxpayer correspondence is for International IMF returns, follow the instructions in IRM 3.22.3, International Error Resolution – Individual Income Tax Returns, Correspondence Procedures.

  5. Include the following instructions to the taxpayer on each correspondence letter:

    1. Advise the taxpayer of the consequences of failure to respond. Most C Letters include selective paragraphs for this purpose.

    2. Indicate the number of days the taxpayer has to respond. Most C Letters include this in the letter. If not and the selected letter provides an optional response period to be entered by the preparer, enter 20 days for IMF or 30 days for international. When preparing second correspondence, allow 20 days for IMF.

    3. Request a telephone number and the best time to call, so that we can contact the taxpayer for additional clarification.

  6. Most taxpayer correspondence is initiated by tax examiners in Code and Edit or ERS using Form 6001/A, Letter 12C Correspondence Action Sheet, or Form 3696/A, Correspondence Action Sheet.

    1. These forms should be routed directly to the TE/clerk (normally IDRS) when received by the Rejects Unit. If the return or Correspondence Action Sheet indicates that the letter has already been transmitted, route the return directly to the suspense file.

    2. IDRS should be used for all correspondence letters, if possible. If the letter cannot be issued via IDRS, research the CAF for Power of Attorney prior to issuing the letter whenever the return was prepared by someone other than the taxpayer.

  7. Preparation of Correspondence Action Sheets:

    1. Prepare Form 6001/A or 3696/A (according to local procedures) for IMF correspondence.

    2. Request all missing information. Check for missing signature(s).

    3. Enter the money amount(s) from the return in dollar and cents.

    4. Attach the completed Form 6001/A or Form 3696/A to the front of the return, leaving the entity portion exposed.

    5. If the record was not suspended with the proper Action Code, enter CC SSPND and use the following as appropriate:
      - 211 for first correspondence
      - 212 for second correspondence
      -213 HCTC


    6. - 215 for International correspondence
      -216 International second correspondence
      - 224 for ACA correspondence
      -225 SRP

Signature Requirements

  1. An original signature, made by the taxpayer himself or herself, is required below the jurat (perjury statement) in the "Sign Here" area of the return. Without the taxpayer's signature, the return is not an official document and may not be processed. Accept a taxpayer's signature elsewhere on the return if the taxpayer has arrowed their signature to the Sign Here/Jurat area. A signature that does not appear under a jurat statement can warrant up to two correspondences to obtain a signature in the jurat statement. Correspond for an original signature only when the present signature cannot be clearly determined to be an original signature. If the taxpayer's signature is missing, request the missing signature using the following:

    • Check for C&E markings of prior correspondence for taxpayer's signature

    • If previous correspondence was not issued, send return to C&E for contact with the taxpayer for missing signature

    • If correspondence was issued and no response from the taxpayer VOID the document. Without the taxpayer's signature the document is not a valid return.

    • Circle out or erase any received dates, editing and coding markings

    • Delete the DLN with RJECT 640 and mark through the DLN. Use Form 3531 to mail back the tax return to the taxpayer and request an original signature. Identify all other correspondence conditions when mailing a return back to the taxpayer for a missing, photocopied or incorrectly placed signature.

    • If the signature has been requested two times, VOID the document and send to Alpha Files.

  2. Faxed or scanned signatures are valid signature and are acceptable only when they are:

    1. Signatures received by EFax on replies

    2. Received from Taxpayer Advocate Service (TAS) or an IRS area, Substitute for Return (SFR) return or returns marked 59XXX (excluding 59918) received from the Collections Branch, or Correspondence Imaging System (CIS) returns from Accounts Management.

    3. Returns stamped by IVO (Handwritten by IVO or IVO reviewed) and/or edited with SPC "M" .

    4. Copies with the remark Process as Original (PAO)

    5. Electronic prints with the IRSN process as an original, even when no copy of Form 8453 is attached, or the electronically filed return was signed with a PIN.

  3. If the taxpayer used a thumbprint instead of a signature, route return to the Frivolous Filing Program (FRP), unless already seen by Frivolous, Then process the return as an original and do not correspond for signature.

  4. When you are speaking to the taxpayer or authorized representative take the following steps :

    1. Validate that you are speaking to the taxpayer or authorized representative.

    2. Advise the taxpayer/representative that his/her faxed signature will become a permanent part of the tax return.

    3. Fax the signature jurat to the taxpayer or authorized representative.

    4. When the taxpayer/authorized representative sends back the signed jurat, attach the signed jurat to the return.

  5. Joint returns require the signature of both taxpayers EXCEPT when a notation indicates that the spouse is:

    1. Deceased and taxpayer is filing as the surviving spouse

    2. A "POW-MIA"

    3. Unable to sign the return due to health reasons

    4. In a combat zone/qualified hazardous duty area identified by -C freeze on IDRS cc IMFOLE for the Combat Zone (CZ) indicator.

    5. If CZ indicator is "1" then the taxpayer is still serving in a combat zone. If CZ indicator is "2" , then the taxpayer is no longer a combat zone participant.

    6. Any of the following and a POA is attached: overseas (including military), incapacitated by disease or injury, or received advance permission from IRS.

  6. If the taxpayer is a minor child and the return is:

    1. Signed by a parent - Never requires documentary evidence such as birth certificate, but the parent must sign as "Parent for Minor Child"

      Note:

      The notation must clearly identify the relationship to the minor.

    2. Signed by a guardian or other fiduciary designee -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. Correspond for the signature of two witnesses, if not present, when the taxpayer signs the return with a mark such as an "X" .

  8. Do not correspond for a missing original signature when:

    1. Substitute for Return Prepared by IRS is noted, or dummy return.

    2. Section 6020(b) or prompt assessment is noted, or Form 4810 is attached

    3. Form 8879 is attached with a valid signature, and there is any indication of rejected electronic filing or prior year.

    4. The return comes from Exam ,Collection, or Accounts Management and "Process as Original" (PAO) is present on the return.

    5. An employee's IDRS number is present on the signature line

    6. Taxpayer has signed an attached CP59 or Letter 143C on the Sign Here line. CSCO will notate in the "sign here" area of the return when the taxpayer has signed under the jurat on the CP59 or Letter 143C.

    7. Automated Substitute for Return (ASFR) is notated in the top margin, a pink Form 3531 is attached, or Letter 2566 (SC/CG) or Letter 3219 (SC/CG) is attached. See IRM 3.12.3.3.2.

    8. There is an indication of TRPRT (transcript of a return).

    9. CCC "3" is already present.

    10. The return is from the Correspondence Imaging System (CIS).

  9. If a decision is made to send correspondence/returns to the Alpha Files, ensure the following are complete:

    1. Line through and/or X out any coding and editing markings for example CCC or SPC

    2. Use Form 3210 to send correspondence/returns to Alpha Files

    3. Ensure the "Remarks" box of Form 3210 notates the reason the returns/correspondence should be stored in the Alpha File

  10. Use the following chart for missing signatures and no reply to missing signatures.

    If Signature is Then Rejects will No Reply to missing signature
    A) Missing signature and NO previous correspondence RJECT 640 and use Form 3531 to send return to the taxpayer. Return to the taxpayer
    B) Missing signature and NO Reply after second correspondence RJECT 640 to Alpha Files after second correspondence - RJECT 640 to Alpha Files
    C) Signature is in wrong place and taxpayer did not arrow signature RJECT 640 and use Form 3531 to send return to taxpayer up to two times. after second correspondence - RJECT 640 to Alpha Files
    D) FSC 2 but only 1 taxpayer signed return RJECT 640 and use Form 3531 to send return to taxpayer up to two times. after second correspondence - RJECT 640 to Alpha Files
    E) FSC 2 only one signature with POA attached Research using CC CFINQ for POA verification. Verify POA for missing TP signature, if POA is not valid, , correspond SSPND 211 CCC "3" and process return
    F) FSC 1 or 4 POA signed return, POA attached Research using CC CFINQ for POA verification. Verify POA is correct for taxpayer; Accept POA signature and continue processing. If POA signature is valid, continue processing. If POA is NOT correct correspond SSPND 211 CCC "3" and process return
    G) Photocopy Signature RJECT 640 and use Form 3531 to send return to the taxpayer. RJECT 640 to Alpha Files
    H) Undelivered mail return with missing signature Research for better address if better address found SSPND 211, if better address not found, RJECT 640 and send to Alpha Files RJECT 640 to Alpha Files
    I) Page 2 missing and No Signature If no previous correspondence RJECT 640 use Form 3531 to send return to taxpayer. RJECT 640 to Alpha Files
    J) Taxpayer signs with an "X" RJECT 640 use form 3531 to send return to the taxpayer. RJECT 640 to Alpha Files
    K) Digital Signature RJECT 640 and use Form 3531 to send return to the taxpayer RJECT 640 to Alpha Files

Quick Notes, Form 5260

  1. Quick notes may be used instead of IDRS letters when no IDRS letter is suitable or for a less formal request for information or action. Retain a copy of each Quick Note with the return. Managerial approval is required before sending Quick Note, Form 5260.

  2. A quick note must contain all of the following:

    • Original and 1 copy of the letter

    • Request to return one copy of the letter with the reply

    • Tax examiners name, employee number and 1-800-829-1040

    • Return envelope

    • Return Address

    Note:

    Do not use your digital signature when using Form 5260.

  3. Quick Notes should be brief and concise and written in business-like and non-threatening terms. Specify the purpose of the letter, what information is needed, and what action will be taken if no reply is received.

  4. Be sure to specify the type of document and the tax period in question. In cases where the recipient of the letter is a trustee, guardian, or other legal representative, specify the name and TIN of the return entity. ( Figure 3.12.37-57 )

    Figure 3.12.37-57

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    Please click here for the text description of the image.

Correspondence Suspense

  1. When the correspondence letter has been prepared, the return is placed in a suspense file awaiting a reply from the taxpayer.

  2. Check the actual date that the letter was sent. If the ERS suspense period has expired and additional time should be given to the taxpayer, the record may be resuspended with a 4XX Action Code. Use Action Code 420 for 5 work days or Action Code 430 for 10 work days.

  3. Do not identify a return as No Reply because the suspense period has expired. If a reject register is more than 45 days old, check the actual correspondence date to be sure the taxpayer has been given at least ten days longer than the date specified.

  4. If notified by Taxpayer Advocate Service (TAS) or the taxpayer that the correspondence was not received due to a bad address, reissue the original correspondence to the correct address and resuspend.

  5. If the correspondence letter is returned as undeliverable take the following actions:

    1. Check to see if the address was input correctly. If not, initiate a second request using the correct address.

    2. Examine the return for a second address. If one is located, initiate a second request.

    3. If a better address cannot be found on the return or attachments, initiate research for another address. Research CC ENMOD, NAMES, NAMEI, and/or INOLE for a current address within one year of the present date.

    4. IDRS research may indicate that a control base is established for the account. By contacting the person with the control, the case can probably be resolved without further correspondence.

    5. If a no signature return is received as an undeliverable return and all research above has been completed void the return RJECT 640. The return is not a valid return without the taxpayer's signature.

    6. If none of these actions prove successful, attach the undeliverable envelope and letter or a correspondence action sheet to the return and process as a "No Reply" .

  6. Loose Forms and Schedules are defined as those schedules and forms which have inadvertently been detached, or which cannot be associated with a return. When a loose schedule is found, research CC ERINV to determine if the case is in Rejects or ERS.

    1. If correspondence was initiated, pull the case and work with the information obtained. At management's discretion, send a quick note to the taxpayer if the correspondence was issued less than one week earlier. Quick notes are used when a non-IDRS letter is not suitable or when a less formal request for information is needed.

    2. If a loose page 2 with only a signature and no attachments or page 1 are obtained, research for more information. If no other information is received, and the document is no longer in ERS/Rejects, check for an IDRS control base. If an open control base is not found void the page 2. If loose page 2, original signature and attachments are received associate correspondence and return.

    3. If the loose schedule does not pertain to an item in the Rejects or ERS inventory, research to determine if the return is controlled on IDRS and route the schedule to the function with the IDRS control base.

      Note:

      Send the schedule to Accounts Management Operation if the return is not in Rejects or ERS and has not been located through IDRS research.

    4. For International loose Forms and Schedules Austin ONLY If a loose Form 8843 or 8840 are in ERS inventory associate return with original DLN. If research determines the return is not in ERS inventory send the Form 8843 or 8840 to Alpha files.

Streamline International Correspondence
  1. Streamlined Non-filers correspondence is received ensure all returns submitted by the taxpayer are kept together. Do not separate the package. ERS will correspond if any of the following are not attached:

    1. The taxpayer is required to submit delinquent tax returns for the last three years for which a U.S. tax return is due. It is acceptable for the taxpayer to submit more than 3 years returns. If the taxpayer submits less than 3 years but attach copies of returns or statements indicating the other years were already filed, DO NOT correspond.

    2. Completed questionnaire signed under penalty of perjury

    3. Signed and dated delinquent Form TDF 90-22.1 FBAR-Report of Foreign Bank & Financial Accounts, for the past 6 years.

    4. If a Form 8891, U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans, is included with the submission, the following should be included with that form:
      A statement requesting an extension of time to make the election
      A dated statement signed under penalty of perjury describing the events that led to the failure to file Form 8891, how they discovered that failure and if they relied on a tax professional.

    5. If any of the above items are missing correspond with the taxpayer using Letter 4087. Ensure page 1 and page 8 are always included in the correspondence to the taxpayer.

  2. If late replies or miscellaneous correspondence is received on a Streamlined return follow the table below.

    If And Then
    Response is received after the return has been sent to files OR
    Miscellaneous Streamlined correspondence is received for a return that is not in ERS
    Form 8891 is attached
    • Detach the F8891 and forward to Mail Stop 4300 AUSC

    • Send all other correspondence to Files to be associated with the original return.

    • Write "Streamlined" at the top of the attachment alert when sending Streamlined Correspondence to Files

    Response is received after the return has been sent to Files OR
    Miscellaneous Streamlined correspondence is received for a return that is not in ERS
    FBAR (Form TDF 90–22.1) is attached
    • Detach FBAR(s) and route to Detroit per the routing guide.

    • Send all other correspondence to Files to be associated with the original return.

    Note:

    Write "Streamlined" at the top of the attachment alert when sending Streamlined correspondence to Files

    Response is received after the return has been sent to Files OR
    Miscellaneous Streamlined correspondence is received for a return that is not in ERS
    No Form 8891 or FBAR is attached Send to files to be associated with the original return.

    Note:

    Write "Streamlined" at the top of the attachment alert when sending Streamlined correspondence to Files.

    If a 2012 tax return is submitted to be associated with the original Streamlined package. We did not correspond for the 2012 tax return Process as original non Streamlined return
  3. If the taxpayer's correspondence is returned No Reply or incomplete SSPND 360 the entire package. Place the entire package in the Funny Box labeled specifically for LB&I review for "Streamlined Returns" . Once the package is reviewed by LB&I, follow the instructions provided by LB&I.

FIRPTA Credit Verification
  1. When taxpayers claim FIRPTA (Foreign Investment in Real Property Tax Act) credits on their income tax return, they must submit Form 8288-A, Copy B.

  2. Attach the FIRPTA Credit Verification Slip, Form 13698, for proof of verification and check the validity of the credits claimed on Form 8288-A against the NSA Database prior to allowing/disallowing the credit.

  3. If correspondence is received, verify credits using NSA Database.

    IF Form 8288-A Then...
    A) Credit is verified and it is the same amount the taxpayer reported.
    • Leave Form 13698 attached to the return.

    • Enter the amount in Field 0562C

    B) The credit is verified, but less than the amount the taxpayer claimed, and is greater than zero

    Note:

    Enter only the amount that was verified not to exceed the amount the taxpayer is claiming

    • Leave Form 13698 attached to the return.

    • Enter verified amount in Field 0562C

    Note:

    Enter only the amount that was verified not to exceed the amount the taxpayer is claiming

    C) The credit is verified, to zero Send TPNC 434
  4. Follow procedures in IRM 3.22.3 for further instructions.

Form 4442 Referrals
  1. Address Changes. If the return referenced on Form 4442 is in Rejects awaiting a reply to taxpayer correspondence, input the new address information in Fields 01ADD, 01C/S, and 01ZIP. SSPND the return with Action Code 211 and resend the correspondence to the new address. If the return is not in Rejects when Form 4442 is received, return the Form 4442 to the originator with an indication that the return is no longer in Rejects (and the current location of the return, if known).

  2. Responses to Reject Letters. If the Form 4442 transmits a response to a letter issued out of Rejects, treat the response as if it has been received directly from the taxpayer. Follow reply/no reply procedures as appropriate. If the return is not in Rejects when Form 4442 is received, return the Form 4442 to the originator with an indication that the return is no longer in Rejects (and the current location of the return, if known). If there are documents attached to the Form 4442 and the return is no longer in ERS treat Form 4442 reply as late reply. Follow Late Reply procedures at IRM 3.12.37.28.14 as appropriate.

  3. Other Issues. If you can determine what area the Form 4442 should be routed to, route to that area such as Entity or Exam.

  4. Other Issues. Return Form 4442 to the originator if any of the following conditions exist:

    1. Form 4442 does not indicate why it is being sent to Rejects

    2. Form 4442 does not include enough information to determine what information is missing from the return

Identity Protection Specialized Units (IPSU) and Suspected Identity Theft
  1. IPSU will send ERS/Rejects Form 14103, Identity Theft Assistance Request (ITAR), or Form 14027-B, Identity Theft Case Referral, providing a recommendation for resolution with a resolution date requesting ERS take some action or identify action ERS took in a return suspected of being affected by identity theft.

  2. With Form 14103 IPSU requests that ERS take action and provide support for that request. The return may or may not be in the ERS inventory. ERS may return any Form 14103 that doesn't meet both conditions.
    -The ITAR must provide a recommendation.
    -Form 14039 or other supporting documents must accompany the resolution.

  3. With Form 14027B IPSU informs ERS of potential identity theft in its inventory and requests a record of the action ERS took but doesn’t recommend an action. ERS will follow procedures in IRM 3.12.3 for processing the return and provide a summary of the resolution such as correction of the return and associated TPNC and any codes (CCC/SPC) added to the return.

  4. Follow IRM 25.23.2.13 for Identity Theft Liaison Responsibilities. Follow IRM 25.23.2.14 Function Employee Responsibilities for Identity Theft Assistance Requests (ITAR) and Global Review (GRVW) Referrals. Follow IRM 25.23.2.14.1 Identity Theft Assistance Requests (ITAR) Referrals.

Second Correspondence

  1. Treat missing information on a return as a No Reply, except in the situations listed below, when contact from any area of Submission Processing has previously been made with the taxpayer, including Form 3531 (greenies). Correspond a second time when any of the following exceptions apply and had not been requested during first correspondence:

    1. Form 4137 when you cannot determine the liable taxpayer

    2. Form 5329 when you cannot determine the liable taxpayer

    3. Form 6251 as required by Error Code 268

    4. Form 8606 when you cannot determine the liable taxpayer

    5. Form 8919 when you cannot determine the liable taxpayer

    6. Schedule H when you cannot determine the liable taxpayer

    7. Schedule SE when you cannot determine the liable taxpayer

    8. If EC 028, 029, or EC 038 displays after Code and Edit has corresponded or ERS has corresponded for" field errors only" use 1263C letter.

  2. When second correspondence is issued based on the exceptions in (1) a) through h), enter SSPND 212 and prepare the applicable Form 3696-A for LTR 1263.

    Note:

    Refer to the Forms 3696-A located under Job Aids in the SERP ERS/Rejects portal.

  3. If ACA Error Codes 068, 100, 101, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, and 344 displays after the first Non-ACA related correspondence has been issued and the taxpayer has provided a complete reply, issue a second correspondence. SSPND 224 and follow the procedures under the error code for the appropriate paragraphs(s) to send using Form 6001. Also include paragraph h with fill-in #33.

  4. If HCTC Error Code 348 displays after first correspondence and the taxpayer provided a complete reply, SSPND 213. Follow the procedures in the error code for the appropriate paragraphs(s) to send using Form 6001. Also, include paragraph h with fill-in #33.

  5. If the exceptions in (1) through (4) do not apply, do not correspond a second time if the information was previously requested and the taxpayer did not furnish the information or furnished an incomplete response. Treat the return as a No Reply using the procedures in Exhibit 3.12.3-1.

  6. If taxpayer second correspondence is for International IMF returns, follow the instructions in IRM 3.22.3.260, International Error Resolution – Individual Income Tax Returns, Second Correspondence.

Telephone Contact

  1. Upon managements approval it may be necessary to contact the taxpayer by telephone. If the taxpayer has provided a telephone number on the correspondence, Telephone calls are not mandatory. Make the call during the time specified in the taxpayer's correspondence. Phone calls may be completed on other shifts to accommodate the taxpayer’s requests. If the taxpayer has marked the "Third Party Designee Check Box" and has provided a name and phone number, contact the Third Party Designee. When it is determined that a call will bring the required information, contact the taxpayer/POA. Seek your manager/lead before contacting the taxpayer. Telephone contact should be used with discretion.

    Note:

    Use IRM 21.1.3 General Disclosure Guidelines and IRM 21.1.1.7 Communication Skills also review IRM 21.1.3.2.4 Additional Taxpayer Authentication before contacting the taxpayer

  2. Remember the following before contacting the taxpayer:

    • Be totally prepared before dialing the taxpayer

    • Be patient and courteous at all times when contacting the taxpayer

    • Do not use IRS jargon when communicating with the taxpayer.

    • Ask for permission before placing the taxpayer on hold and wait for a response.

    • Do not mute calls when research is being conducted. Place the caller on hold or continue speaking.

    • Do not leave taxpayers on hold for an extended time (5 minutes or longer) without checking back to advise them you need additional time. Explain the delay, and thank the taxpayer for holding.

    • At the end of the conversation summarize the call to ensure the taxpayer understood what was needed.

  3. When making an outgoing call, the taxpayer may be reluctant to provide their Social Security Number (SSN) or Taxpayer Identification Number (TIN). To ease their concerns provide the taxpayer with the last four digits of their SSN/TIN. Request the taxpayer verify the first five digits. If taxpayer is still reluctant to provide information, provide the taxpayer with the correct phone number to call back. Do NOT resuspend the document.

  4. Do NOT leave any taxpayer information on taxpayer's answering machine/voice mail, review IRM 11.3.2.7.1

  5. Complete Form 12130, Telephone Contact Sheet, and attach it to the back of the documents. ( Figure 3.12.37-58 )

    Figure 3.12.37-58

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    Please click here for the text description of the image.

Field 02RPD Return Processing Date (RPD)

  1. The field Return Processed Date (RPD) is located on line 4 Form 3471. The date is stamped on the reply and is sometimes called the correspondence received date. The date is stamped on the reply or the IRS received date printed on a fax response. The field format is YYYYMMDD:

    1. Y = Year

    2. M = Month

    3. D = Day

  2. Field 02RPD will be invalid when any of the following conditions are present:

    1. Day of the month (DD) exceed number of days for the transcribed calendar month (MM).

    2. Field is blank in the first position with other data.

    3. Field is less than eight (8) numerics.

    4. The field is greater than the current date.

    5. The field is not numeric

  3. When a return has been held in suspense and a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ enter the return processing date in Field 02RPD.

  4. When a return has been held in suspense and an incomplete reply is received, the correspondence is undeliverable, or the taxpayer doesn't reply, enter CCC U.

    Note:

    CCC U and the RPD must not both be present on the same return.

  5. If the taxpayer's response is incomplete because the IRS did not request all of the missing information, do not enter CCC U. Instead enter the reply date in Field 02RPD and process the missing information with no reply procedures.

  6. Do not enter the return processed date when:

    1. a complete reply is received before the due date of the return,≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , or

    2. the correspondence was issued in error.

      Note:

      If correspondence was issued erroneously, refer to Correction Procedures for EC displayed

  7. To correct Field 02RPD, refer to the date stamped on the reply. Correct any coding or transcription errors. Correct the field to be in YYYYMMDD format using the following priority:

    1. Correspondence Received Date.

    2. IRS E-Fax Received Date.

    3. Postmark Date on reply envelope.

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

    Note:

    If more than one Correspondence Received Date is stamped on the reply, enter the earliest date in Field 02RPD.

  8. Austin only. If the return has an ITIN (9XX-50–XXXX through 9XX-65–XXXX, 9XX-70-XXXX through 9XX-88-XXXX, 9XX-90-XXXX through 9XX-92-XXXX, 9XX-94-XXXX through 9XX-99-XXXX) written in red ink and "W-7" is stamped in the bottom left hand corner of the return, resolve the error according to these instructions.

    1. If the received date is equal to the return processed date, ensure the correct received date is input.

    2. If EC 058 reappears, delete the entry in field 02RPD.

Replies to Letter 5858 and 5862

  1. Research Command Codes ERINV and CMODE to determine if Letter 5858 or 5862 is open in ERS. Use the following chart to process the responses for Letters 5858 or 5862 as appropriate.

    If... And... Then...
    A)    
    1. Letter 5858 or 5862 received and 12C attached ERINV/CMODE research shows the item is in ERS
    1. Correct 12C issue

    2. Attach 12C and Letter 5858 or 5862 and process reply

    2. Letter 5858, or 5862 received and 12C attached ERINV/CMODE research shows the item is NOT in ERS
    1. Review Late Reply procedures to determine if it is a Late Reply

    2. Forward Late Reply and Letter to ICT for scanning

    B)    
    1. Letter 5858 or 5862 received and NO attachment e.g.: no 12C Research ERINV/CMODE to determine if in ERS, if NOT in ERS research IMFOLT for TC 150
    1. If NOT in ERS and no TC 150, Forward Letter to ICT for scanning

    2. If NOT in ERS and TC 150 post send to classified waste

    2. Letter 5858 or 5862 received and NO attachment e.g.: no 12C Research ERINV/CMODE to determine if in ERS, if in ERS If in ERS, process taxpayer’s response as appropriate
    C)    
    1. Letter 5858 or 5862 received and Form 1040 attached ERINV/CMODE research shows the item is in ERS
    1. If the return is the same as the return in ERS, ensure all amounts are the same and the taxpayer is not amending the return

    2. If the return is NOT the same as the return in ERS, check for line changes and correct as appropriate.

    2. Letter 5858 or 5862 received and Form 1040 attached ERINV/CMODE research shows the item is NOT in ERS AND there is a TC 150
    1. Review Form 1040 amounts and compare line number for AGI , Total Tax, ACA and Balance due/Refund to CC IMFOLT amounts.

    2. If the amounts are different than amounts posted, forward to ICT for scanning.

    3. If the amounts are the same send to Classified Waste (CW)

    3. Letter 5858 or 5862 received and Form 1040 attached ERINV/CMODE research shows the return is NOT in ERS AND there is not a TC 150 Forward to R&C and process as original
    D)    
    1. Letter 5858 or 5862 received and Form 1040X attached ERINV/CMODE research shows the return is in ERS Process Form 1040X according to taxpayer’s intent
    2. Letter 5858 or 5862 received and Form 1040X attached ERINV/CMODE research shows the item is NOT in ERS and there is a TC 150 Forward to Form 1040X Unit
    3. Letter 5858 or 5862 received and Form 1040X attached ERINV/CMODE research shows the item is NOT in ERS AND there is NOT a TC 150 Forward to AM Screener for ICT
    E)    
    1. Letter 5858 or 5862 received and Form 8962 or 1095-A attached ERINV/CMODE research shows the items is in ERS Process return based on reply
    2. Letter 5858 or 5862 received and Form 8962 or 1095-A attached ERINVCMODE/ research shows the returns are NOT in ERS Forward to AM Screener for ICT
    F)    
    1. Letter 5858 or 5862 received Taxpayer states have previously filed or similar statement and NO TC 150 Forward to AM Screener for ICT
    2. Letter 5858 or 5862 received Taxpayer states have previously filed or similar statement and TC 150 post Send to Classified Waste (CW) Refer to IRM 21.5.1 for handling Classified Waste

Replies to Correspondence

  1. When a reply is received from the taxpayer revalidate the return, GTSEC 02 and enter R in field 02RI. After revalidation use the reply to perfect the document. It is imperative that the correct information is entered to prevent erroneous tax refunds. Use the reply information to update all ERS fields and schedules. Resolve every issue with the taxpayer’s correspondence by updating fields, schedules and dummying in forms or schedules as required.

    Note:

    If necessary, use CC ENMOD to identify LTR 12C paragraphs issued for MeF and/or missing information for paper correspondence in the Reply. See Job Aid 2515-015 for instruction on how to access LTR 12c.

  2. When correspondence has been issued in error do not enter return processing date in Field 02RPD or CCC "U" .

    Note:

    If correspondence was issued erroneously, refer to Correction Procedures for the Error Code.

  3. Enter the correspondence reply received date in Field 02RPD (Return Processed Date). The format is YYYYMMDD. Y= Year, M= Month and D=Day. To correct Field 02RPD, refer to the date stamped on the reply or the received date printed on the fax response. Do not use dates generated by the sending fax machine when the reply is received via FAX

  4. When a return has been held in suspense and a complete reply has been received≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    CCC U and the RPD must not both be present in the same return.

  5. The date in Field 02RPD may not be later than the current processing date or earlier than or equal to the received date in Field 01RCD.

  6. The return processed date must be present when:

    1. a return has been held in correspondences suspense and,

    2. a complete reply is received after the due date of the return.

  7. The RPD and CCC U should not be present if a complete reply is received prior to the due date of the return, including the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  8. If the taxpayer responds Not My Return RJECT 640 and enter TC 971 AC 522.

    1. Send MeF reply to Alpha File.

    2. If the taxpayer provides a completed return (i.e.. page 1 and 2 of Form 1040 and Form 1040A or page of 1 of Form 1040EZ; accurately reports estimated payments/credit elect, all required form and schedules are attached, and an original signature, detach the complete return from the correspondence including Form 14039. Edit correspondence received date in the center of page 1 of the tax return and edit SPC 8. Send document to Receipt and Control to be processed.

    3. If paper return, attach response to return and send return to Files to be refiled in block.

  9. If the taxpayer submits an amended return, Form 1040X, treat the amended return as the reply to the correspondence only if the ERS correspondence is attached. If it is not attached file Form 1040X on the wall and wait for correspondence. If correspondence is not timely, correct the account using the Form 1040X and follow no reply procedures. If the Explanation of Changes indicates a change or the addition of a form or schedule, in order to make that change to the original return the form or schedule must be attached to the Form 1040X. If the taxpayer’s computations on the amended return does not agree with the taxpayer’s original computation, correct/process the return with the information provided by the taxpayer. Assign TPNC 558 as appropriate.

  10. Refer to the Error Codes contained in IRM 3.12.3 for the specific correction procedures.

  11. If a 12C letter has been sent to the taxpayer and the 1040X unit forwards a Form 1040X before the reply due date, hold the Form 1040X only if the required information isn’t provided. Combine the 1040X and the taxpayer’s 12C reply and process. Do not process the Form 1040X without the complete 12C response.

  12. A return that had been issued a 12C letter for EC 190 through 199, EC 270 or EC 344 and responds with a reply, if other ACA error Codes display for the return requesting additional information (correspondence) DO NOT CORRESPOND.

  13. Reply instructions for the following error codes can be found in IRM 3.12.3 within ; ECs 018, 028, 029, 068, 075, 085, 088, 100, 101, 118, 157, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, 344. Follow the reply instructions under each error code in IRM 3.12.3.

    Note:

    CCC U is not input on EC 195, 197, 198 and 199.

  14. Enter the reply data including any address changes. Use CC GTSEC for applicable sections.

    Note:

    Master File addresses should not be changed unless there is oral/written verification from the taxpayer or written information from the authorized POA.

  15. If the taxpayer's correspondence reply is a TIN, it must be validated against the NAP/OLE (e.g., Primary TIN, dependent/EIC TINs, child care credit TIN, Schedule H TIN, etc.).

    1. Enter CC GTSEC 02 and transmit. Enter R in Field 02RI, Revalidation Indicator, to generate Error Code 011 for TIN validation.

      Note:

      It may be necessary to access the NAP using CC INOLE for verification of any TINs that do not display in Error Code 011.

  16. When correspondence issue is unknown, research CC ENMOD to identify the LTR 12C paragraph(s) number/alpha sent. Refer to LTR 12C and read the applicable paragraph(s). See Job Aid 2515-015 instructions on how to access LTR 12C.

  17. If the taxpayer's correspondence amount differs from the computer amount, assign TPNC 558 and all other applicable TPNCs.

  18. For replies to multiple tax periods on the Same Return, take one of the following actions:

    1. If the taxpayer responds with income different from a tax year that is different from that of the tax period of the return (e.g. W-2s for more than one tax year, or income statements for another tax period etc.) allow only the income and withholding for the tax return in hand. Adjust the taxpayer’s figure to include only the income and withholding for that tax year. Assign TPNC 759.

    2. If the taxpayer indicates a non-remittance multiple period return, determine how the data is to be divided and prepare dummy returns for those periods. Correct the original return to reflect liability for the earliest tax periods. Route the new returns to Receipt and Control for normal processing.

    3. If the taxpayer submits returns to cover all tax periods, correct the rejected return to reflect the tax liability for one tax period. If the return was non-remittance, send the additional return(s) to Batching and Numbering.

    4. The taxpayer must meet all requirements to file a change-of-accounting period return if indicated in the correspondence.

    5. Follow instructions in IRM 3.12.2.3.22 for more information.

  19. Try to process as "No Reply" when the taxpayer has indicated a refusal to comply. Otherwise, refer to Fraud Detection Center.

  20. If the taxpayer indicates that the response must be delayed because of illness, the preparer is out of town, or other valid reason, attach the letter to the return. Resuspend the return with Action Code 212 as appropriate and leave in suspense. Allow the taxpayer up to thirty days from the interim response received date. Consider the original response due date (45 days) and the 2nd correspondence date and ensure enough time has been given for the taxpayer to respond. If no response from the taxpayer after the extended 30 days, treat as No Reply.

  21. When the taxpayer requests a photocopy of the return or part of the return in order to answer our correspondence:

    1. Photocopy the requested return or parts of the return.

    2. Prepare a Quick Note, Form 5260. (See Figure 3.12.37–58.)

    3. Send the Quick Note and photocopy of the return to the taxpayer without charge.

  22. If the taxpayer's response includes a question or a request for additional information, take the following action :

    1. If the information is not available to answer the question/request, send a copy to the appropriate area in the campus.

    2. Ensure that the taxpayer's name, TIN, and the received date are on any correspondence leaving the area.

      Note:

      Process the reply and close the case prior to routing the taxpayer's request.

  23. Prepare a Quick Note, Form 5260, and mail directly to the taxpayer instead of a typed letter when:

    1. Responding to inquiries that can be answered in a few sentences.

    2. Returning documents to the taxpayer and a brief explanation is needed.

    3. Making interim replies.

  24. Ensure all Quick Notes have been reviewed and approved by a manager or lead before sending to the taxpayer.

  25. If additional information is provided, make the necessary corrections based on the new information.

  26. If the taxpayer addresses new/other issues that are not related to the correspondence, but the issue does relate to the original return, correctly process the return using IRM 3.12.3. If the issue relates to another type of return (ie. Prior Year Return), route to Accounts Management.

  27. Filing of original tax returns via FAX will only be allowed as part of a return perfection process initiated by the IRS where contact with the taxpayer has been made and documented. If multiple fax replies are received for the same taxpayer destroy the duplicate faxes. Do not send duplicate fax replies to Files or the Alpha File.

  28. If unable to determine the taxpayer’s TIN after thorough research, refer to lead. If lead has completed more thorough research and unable to determine the taxpayer’s TIN, treat as Classified Waste (CW).

MeF Replies
  1. Use the following procedures before sending MeF replies to Files. Ensure all IDRS research is performed before inputting IDRS action.

    Note:

    This process is necessary to create a DLN in Files to associate the reply. Input all REQ54 actions within 5 days from the date the return was closed in Rejects. Complete routing form and send to Files. Allow the CARE unit to review the return before sending to Files. Do Not input TC 290 .00 when an MeF reply has been closed after inputting SPC "T" .

  2. Any processing center can process MeF replies using IDRS CC CMODE. IDRS CC CMODE allows the user to access other IDRS databases. To change modes enter CC CMODE and the 2 digit code abbreviation for the other campus.

  3. Research for Freeze codes using IDRS CC TXMODA and IMFOLI and IMFOLT. Freeze codes are listed next to the letters FRZ> at the top of each IDRS screen. Use Document 6209, Section 8A, Master File codes to research displayed freeze codes. Leave hold code field blank if Freeze code field is blank. Use the freeze code chart below if freeze codes are listed. Research IDRS CC IMFOL, TXMOD, TRDBV, TRERS and take the following action:

    1. On CC TXMODA enter CC REQ54 and transmit. This will generate an ADJ54 format.

    2. On ADJ54 input the next sequence number (i.e., if this is your first input for the day start with 1). Then for each subsequent input change accordingly (1, 2, 3, etc.). Notate your tax examiner number on the correspondence with the sequence number used behind it (i.e., 12345XXXXX-4).

    3. Enter the Blocking Series (BLK) as "05. "

    4. Enter the Correspondence Received Date (CORRESP-DT). This should be the received date stamped on the correspondence by Receipt and Control.

    5. Enter the IRS Received Date (IRS-RCVD—DT) as "*" . This will generate the current date.

    6. In the ACTIVITY filed, overlay 54-TAX-ADJ with MeFReply. (This field will not accept a space between words).

    7. Enter the Return Processing Date (RET-PROC-DT). This entry should be the same as the CORRESP-DT entry.

    8. Enter the Transaction Code (TC) as "290. "

    9. Enter the Transaction Amount (AMT) as ".00 ."

    10. Enter the Hold Code (HLD-CD) per the instructions in (3) below.

    11. If TC150 not posted, enter the Posting Delay Code (PSTNG-DLAY-CD) as “4”. If TC150 posted, do not enter Posting Delay Code.

      Note:

      If CCC 3 or O is input, enter Hold Code 4

    12. If there is an open control, place the control in "B" status, work as instructed, and put control back in open status when completed.

    13. Enter the SOURCE-DOCUMENT-ATTACHED as " Y."

    14. Enter the REMARKS as "MeF Reply."

    15. Transmit.

    16. Put source document in Folder, (Document 6981) and attach Form 10274 to the front of the folder. Include current date (Input Date), Employee Number, Sequence numbers (ex.,103,104,105) Function and Program Code on label (Form 10274). Bundle 100 documents or less in each source document folder to send to files.

    17. Send folders to files.

  4. If the Freeze code is not listed below enter 0 in the Hold Code field. If screen shows CI/IVO involvement input hold code 4. the IVO indicators are TC 971 AC 111, 121,122, 123, 124, 125, and 134. Use the following chart when considering Freeze codes and Hold codes.

    Note:

    If Action Needed for Freeze Codes state to Route to AM, do not input a REQ54 for 290.00. Route per local procedures.

    Freeze code... Use Hold Code... Action Needed
    -A   Route to AM
    E-   Route to AM
    -E   Route to AM
    -G   Route to AM
    -K   Route to AM
    -L 4  
    M-   Route to AM
    P- 4  
    -Q   Route to AM
    -R
    • 4 if screen shows CI/IVO indicators

    • 4 if Form 8379 (BS 92X) and route to AM

     
    -S 4  
    -U 4  
    -V   Route to AM
    -W 4  
    -X 4  
    Y-   Route to AM
    -Z - 4  
  5. If IDRS CC ENMOD displays name control mismatch or no account on Masterfile as an examples create a dummy module to input the TC 290 .00 using IDRS CC MFREQD.

  6. For MeF returns with MFT 32, send the returns to Alpha Files. Use MFREQD to create the MFT 32 module if the MFT 32 is not established. Use CC TXMODA when the MFT 32 is established to enter a History Item using IDRS CC ACTON: H,DOC2ALPHA

    Note:

    Use Exhibit 17 as a reference/example for Acton History Procedures IRM 3.12.37-17.

Identity Theft - Related Replies
  1. The following instructions are for Identity Theft Error Code (EC 029 only) related replies. Do not issue 4310C letter or similar ID Theft letter if it was previously issued. If TC 971 AC 522 was previously entered, do not reinput the TC 971 AC 522. The duplicate TC 971 AC522 will cause additional unpostable conditions. Each TC 971 will require reversing if duplicates are created.

  2. The TC 971 MISC field provides an audit trail on all cases. Input the TC 971 codes correctly using the codes listed:

    • 971 AC 522 = Valid Identity Theft Claim received

  3. Use the following chart to resolve taxpayer's ID Theft related replies:

    IF... AND... THEN
    A)    
    Timely Reply A) Taxpayer states Not My Return and/or Form 14039, police report and/or equivalent statement
    1. RJECT 640 bad return

    2. Input TC 971 AC 522

    3. If paper, send return including 12-C and/or Form 14039 to Files to be refiled in the block of work.

    4. If MeF, send reply to Alpha files.

      B) Not My Return, Form 14039, police report and/or equivalent statement and Here's my return
    1. RJECT 640 the bad return .

    2. Input TC 971 AC 522

    3. If paper, route reply including 12-C and Form 14039 to Files to be refilled in the block of work

    4. If MeF, send reply to Alpha files.

    5. Process the good return with SPC" 8"

      1. Attach Form 14039 or equivalent statement to the good return

      2. Forward good return to R&C for processing

    B)    
    No Reply/Undeliverables If EC 029 (Unclaimed Credits)
    1. For TY 17, if the filer doesn’t reply to correspondence or is undeliverable, enter SPCT, CCC "3" in first position and CCC "U" in the second position, when EC 029 redisplays, enter "C " in the clear field.

    2. For Prior year returns, No reply, insufficient reply, RJECT 640.

    3. If paper return, send to Files to be refiled in the block of work.

    4. If MeF, input CC ACTON History Item, DOC2ALPHA, and send return to Alpha Files.

    C)    
    Late Reply A) Not My Return and/or Form 14039 and/or equivalent statement for EC 029
    1. If MeF, route reply including 12-C and Form 14039 to Alpha File

    2. If paper, route reply including 12-C and Form 14039 to Files to be refiled in the block of work

    3. Input TC 971 AC 522.

      B) Not My Return and/or Form 14039 and/or equivalent statement for EC 029 AND Here’s my return
    1. Process the good return with SPC 8

    2. Attach Form 14039 or equivalent statement to the back of the good return

    3. Forward good return to R&C for processing

    4. Bad return: If MeF return, send to Alpha File and if paper return send to Files to be refiled in the block of work.

    5. Input TC 971 AC 522

      C) Is MY Return and return was moved to MFT 32 Before sending correspondence to the SP IDT group, ensure the return's DLN matches the DLN of the TC 976 posted on MFT 32. Once determination is made, forward TP return, Form 1040X/other documentation and 12-C to SP IDT unit using Form 3210 to have return moved from MFT 32 to MFT 30.
      D) Is MYReturnand return was moved to MFT 32 and TP sends Form 1040X or other documentation for additional credits deduction, or other changes Before sending correspondence to the SP IDT group, ensure the return's DLN matches the DLN of the TC 976 posted on MFT 32. Once determination is made forward TP return, Form 1040X/other documentation and 12-C to SP IDT unit using Form 3210 to have return moved from MFT 32 to MFT 30.
  4. Entering 971-522 Instructions:

    1. On CC ENMOD, enter CC REQ77 and transmit. This will generate FRM77 format.

    2. Enter the TC field as 971

    3. Enter Secondary Date field as 123120XX, XX notates the year the ID Theft is based on return information.

    4. Enter the TC971/151 field as 522

    5. Enter the Misc field as WI SP OTHER

    6. Enter Remarks as IDENTITY THEFT

    7. Transmit

No Reply Cases

  1. Revalidate the return by inputting GTSEC 02 and entering R in Field 02RI.

  2. Ensure that the taxpayer is given sufficient time to respond. If the letter shows a specific date, allow ten additional days for the letter to be received.

  3. If the taxpayer does not reply to a request and the suspense period has expired pull the paper return from the suspense file and stamp it "No Reply" . MeF No Reply cases, generate the ERS-13-42 Control-D report daily to work the cases and stamp it No Reply.

  4. If the correspondence is "undeliverable" and if the letter comes back a second time as "undeliverable" , treat it as a "No Reply" and process the return immediately.

  5. If none of these actions prove successful, attach the undelivered envelope, letter or Correspondence Action Sheet and process the return with the available information following the "No Reply" procedures.

  6. Ensure all instructions are followed in the No Reply procedures section of IRM Exhibit 3.12.3-1.

  7. When correspondence issue is unknown, research CC ENMOD to identify LTR 12C paragraph(s). See Job Aid 2515-015 for instructions on how to access LTR 12C.

No Reply Processing Instructions
  1. Perfect all documents from information on the return and/or attachments as well as any research specifically permitted in IRM 3.12.3 and IRM 3.12.37.

  2. Follow instructions in the No Reply section of IRM 3.12.3-1 or the No Reply instructions incorporated in each Error Code. Follow specific No reply instructions in IRM 3.12.3 in Error Codes 018, 028, 029, 068, 100, 101, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, 344 and 348. If the instructions under Actions to Be Taken are to enter CCC 3, enter it in the first position of Field 01CCC. All other CCCs must follow. CCC U is not input on EC 195, 197, 198 and 199.

  3. Follow instructions under IRM 3.12.3.32.4 before entering CCC "U" .

  4. Ensure all NAP values are current, GTSEC 02 and enter "R" in field 02RI. If the return closes prior to revalidating, recall the record with GTRECW and revalidate.

  5. If the instructions under "Actions to Be Taken" you are to enter Audit Code B, follow that instruction first before taking any other action.

  6. Perform research using CC IMFOL and/or IRPTR, to obtain missing information if available.

  7. No reply, Incomplete reply, Undeliverable returns are to be worked using No Reply instructions through the completion of the return.

  8. If other Error Codes display on the return requesting additional information (correspondence), follow the no reply procedures for those Error Codes. DO NOT CORRESPOND.

  9. The return processing date and CCC U should not be present if the following conditions are met:

    • The complete reply was received prior to the due date of the return≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or

    • The correspondence was issued in error.

  10. Use the following table when working correspondence:

    If reply is... And Then
    A) Complete, additional information is needed but not requested
    1. Processing missing information with no reply procedures.

    2. Enter the date stamped on the reply in Field 02RPD, if received after the due date of the return.

      Note:

      See the example in 11a below

    B) unnecessary, because the correspondence was issued in error,   do not enter the return processed date in field 02RPD or CCC U. See example 11b below.
    C) a completed Form 8962 (requested), the taxpayer didn’t include Form 1095-A (requested) consider a complete reply,.

    Note:

    Form 1095-A is not a required attachment.

  11. Examples associated with the table above:

    1. IRS corresponded for Schedule A, and the taxpayer replies with a completed Schedule A. Yet Form 2441 was missing, but it wasn’t requested. Enter the date stamped on the reply in Field 02RPD, if received after the due date of the return. Follow no reply procedures for the missing Form 2441.

    2. IRS corresponded needlessly for Schedule A. It was attached to the return but overlooked. The return was complete and the correspondence was in error. Do not enter the return processed date or CCC U.

  12. On any correspondence (incomplete reply) received from the taxpayer and the taxpayer states Not My Return, RJECT 640 and enter TC 971 A 522. Follow IRM 3.12.37.26.9.2.3, Identity Theft Related replies procedures.

  13. For No reply/Incomplete reply/Undeliverables follow the instructions for Action to be taken in Exhibit 3.12.3-1.

  14. If the initial correspondence is undeliverable, look for the presence of the USPS forwarding label (especially an expired label) and reissue the correspondence to the address the label shows if the address is different than what’s on the return. If no USPS forwarding label is attached, research IDRS to locate a better or more current address.

    1. If research shows a more current address, reissue correspondence using the address found on IDRS and SSPND 211.

    2. If research shows the same address and same DLN (no additional DLNs) process the return using no reply procedures.

    3. If research shows a different DLN for the same tax period with the same address for the taxpayer, refer to the lead for further instructions if the DLN is open in ERS AND the return is located.

  15. If the return has a "Missing Signature" follow instructions in IRM 3.12.37.28.3 before taking action.

  16. Take the following actions for Multiple Tax Periods:

    1. If the taxpayers include in the tax return income from a tax year different from that of the tax period of the return, allow only the income and withholding for the year of the tax return in hand. Adjust the taxpayer's figures to include only income and withholding for that tax year and assign TPNC 759.

    2. For all other income and withholding statements that do not belong to that tax period, take the following actions:
      -Detach income and withholding statements from the return.
      -Edit in the left margin Detached income/withholding document as appropriate.
      -Take detached documents to work leader. The work leader will complete Form 5260, Quick Note using the verbiage below.
      -Mail the Quick Note and income and withholding statements to the taxpayer shown on the documents.

      Note:

      Use the following verbiage on Form 5260, "We have detached the enclosed income and/or withholding statement(s) from your XXXX (XXXX=tax year) tax return. The statement(s) are for a different tax year(s). If you have not filed a tax return for this year, you will need to file your tax return. If the enclosed statements are for more than one year, you will need to file a return for each tax year. If you need additional assistance, you may call 1–800–829–0922."

Undeliverable

  1. Undeliverable mail is any letter, notice or correspondence sent to an individual or business taxpayer and is returned to the IRS with an indication that the individual no longer resides or the business is no longer located at the address.

  2. If undeliverable correspondence is received with an USPS "yellow label address sticker" , this USPS address may be the last known address (LKA) for this account. However research is necessary prior to using this USPS address.

    Note:

    Any USPS yellow label sticker undeliverable mail received with handwritten address information or comments, MUST BE considered "THIRD PARTY" information and may not be used to update the address on IDRS.

  3. If the undelivered mail is for ID Theft correspondence such as 4310C letter, attache the Form/Correspondence and destroy as classified waste. Refer to IRM 21.5.1 for guidance on handling classified waste. Do no research on undelivered ID Theft correspondence.

  4. If the undelivered mail is for ID Theft correspondence such as 4310C letter, attach the Form/correspondence and destroy as classified waste. Do not research on undelivered ID Theft correspondence.

  5. If the following is written or stamped on the undeliverable mail envelope, research is mandatory for a more current address:

    • Forward Time Expired, return to sender

    • Bad Address

    • No such street

    • No such number

  6. Research using IDRS Command Codes such as ENMOD, and IMFOLE, for the most current address. Use the ITIN Real Time System (RTS) for ITIN filers, if needed. Before completing any address changes, compare and note the following researchable dates:

    • date of correspondence

    • postmark date on the envelope

    • date of pending address change

    • latest address change on IDRS (TC 152 date)

  7. When undeliverable correspondence is in the ERS inventory, research IDRS for a more current address.