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3.12.38  BMF General Instructions

Manual Transmittal

October 20, 2016


(1) This transmits revised IRM section 3.12.38, Error Resolution, BMF General Instructions.

Material Changes

(1) Made various editorial changes throughout the IRM, including tax years, line numbers, and tax rate changes.

(2) IPU 16U0727 issued 04-13-2016 Numerous changes to table formats for 508 compliance. No changes to contents of the tables unless listed in the material changes specifically.

(3) IRM Added Schedule K-1 in green ink to exception.

(4) IRM 3.12.378.1.2.2(1) Added link to TBOR for TAS.

(5) IPU 16U0488 issued 03-09-2016 IRM Corrected IRM reference for Frivolous Returns and Claims.

(6) IPU 16U0371 issued 02-22-2016 IRM Changed Criminal Investigation (CI) Funny Box wording consistent with Code & Edit IRMs.

(7) IPU 16U0039 issued 01-04-2016 IRM - Added subsection on Generating CARE Review/Pull Listing.

(8) IPU 16U0039 issued 01-04-2016 IRM - Added subsection on CARE Review Procedures.

(9) IRM Added additional instructions for Form 8822/8822-B.

(10) IPU 16U0488 issued 03-09-2016 IRM Changed dollar amount for manual refunds not in interest jeopardy to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(11) IPU 16U0727 issued 04-13-2016 IRM Corrected to read $100 million or more.

(12) IRM Added TC 054 also indicates approval of Form 1128.

(13) IRM Added to second Then... row to check and see if returns are posted and are duplicates.

(14) IRM Added new subsection for Annual Statement Replies for certain types of 1120 returns.

(15) IRM Changed to input TC 290 using IAT tool.

(16) IPU 16U0488 issued 03-09-2016 IRM Changed dollar amount for manual refunds not in interest jeopardy to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(17) IPU 16U0727 issued 04-13-2016 IRM Added exceptions for $100 million refund returns still needing manual refunds.

(18) IPU 16U1188 issued 07-08-2016 IRM Added returns with Form 1099-MISC credits claiming refunds are not eligible for manual refunds. The refunds must be generated systemically.

(19) IPU 16U0428 issued 03-01-2016 IRM Removed paragraph on using current RPD on CIS returns, etc.

(20) IPU 16U0488 issued 03-09-2016 IRM Added delays due to taxpayer error on returns are not eligible for interest on refunds. Input current RPD.

(21) IRM Clarified the use of RPD.

(22) IPU 16U0371 issued 02-22-2016 IRM Added information on CC IRPTRO message ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

(23) IPU 16U0371 issued 02-22-2016 IRM Added ELMS course 42481, Monitoring Manual Refunds as a requirement for managers, leads and employees responsible for monitoring manual refunds.

(24) IPU 16U0428 issued 03-01-2016 IRM Added note on interest on overpayment only when liability has been settled and on interest computation date.

(25) IRM Removed link to 3.0.275 and added link to 6209 for accelerated refund cycles.

(26) IPU 16U0488 issued 03-09-2016 IRM Changed dollar amount for manual refunds not in interest jeopardy to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(27) IRM Changed from 180 day back to 45 day interest free rule on Form 1042 refunds.

(28) IPU 16U0054 issued 01-05-2016 IRM Updated to change CCC 8 to CCC 6, which was updated to identify Section 847 payments.

(29) IPU 16U0428 issued 03-01-2016 IRM Added Consolidated 1120 returns with 1120-L or 1120-PC to several paragraphs.

(30) IRM and (4) Removed funny box and replaced it with LB&I Review Box.

(31) IPU 16U0488 issued 03-09-2016 IRM Changed dollar amount for manual refunds not in interest jeopardy to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(32) IRM Corrected dollar amount for manual refunds not in interest jeopardy back to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8038-CP is an exception due to SCRS processing..

(33) IPU 16U0234 issued 02-02-2016 IRM and (5) Updated sequestration rate to 6.8% for manual refunds on 8038-CP returns effective October 1, 2015.

(34) Updated sequestration rate to 6.9% on 8038-CP returns effective October 1, 2016.

(35) IPU 16U1067 issued 06-14-2016 IRM Added caution to check refund date and amount if record doesn’t move to archive.

(36) IPU 16U1223 issued on 07-21-2016 IRM Added note that manager’s can save the Form 14696 by quarter to reduce it’s size. Added instructions.

(37) IPU 16U0727 issued 04-13-2016 IRM Corrected IDRS employee number range to 240 through 279 in accordance with ERS77 programming.

(38) IPU16U1125 issued 6-23-2016 IRM Added MFT 67 to UPC 304 invalid condition.

(39) Corrected UPC 309 RC 1 User Fee instructions.

(40) IRM Clarified sent to Accounting for 6800 Account.

(41) IPU 16U0371 issued 02-22-2016 Exhibit 3.12.38-10 Added more criteria for CI Funny Box.

(42) Exhibit 3.12.38-33 Removed the Refund Cycle Chart since it was put back in the Document 6209.

Effect on Other Documents

IRM 3.12.38 dated October 19, 2015 (effective 01-01-2016) is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - 16U0039. 16U0054, 16U0234, 16U0371, 16U0428, 16U0488, 16U0727, 16U0870, 16U0877, 16U1067, 16U1125, 16U1172, 16U1188, and 16U1223.


Wage and Investment (W&I), Submission Processing Employees

Effective Date


Linda J. Brown
Director, Submission Processing
Wage and Investment Division  (01-01-2017)
Introduction and General Guidelines

  1. This Internal Revenue Manual (IRM) contains general Business Master File (BMF) procedures for the following:

    • General Instructions, including BMF Consistency subsections

    • Control Clerk Guidelines

    • General ERS Tax Examiner Guidelines

    • General Service Center Replacement System (SCRS) Tax Examiner Guidelines

    • General Rejects Tax Examiner Guidelines

    • Manager Guidelines - reports to monitor and control inventories in Input Correction Operation

    • Unpostable Codes and Correction Procedures

  2. General instructions are always overruled by the IRM for the specific form being worked, when there are differences.

  3. 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. Working trails will be done in blue erasable pen.


    Re-inputs will be edited in red erasable pen and Schedule K-1(1041) in green ink..

  4. 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.

  5. 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.

  6. Procedures for the correction of specific tax returns or documents are contained in other Sections of the Internal Revenue Manual (IRM) 3.12, Error Resolution.  (01-01-2016)
General Explanation

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

    1. Control Clerk - Control the inventory received in the Input Correction Branch from other areas. They also control and release inventory to other functions.

    2. ERS/SCRS Tax Examiners - Correct returns or source documents that have failed validity, consistency or math computation and must be corrected via ERS or SCRS. They suspend work and create Rejects by removing the document from normal processing. This allows other areas to perfect and/or review the document and allows correspondence with the taxpayer, when necessary.

    3. Rejects Tax Examiners - Handle all returns and documents suspended from normal processing. Suspended returns may need correspondence with taxpayers or to be perfected and/or reviewed by an area outside of processing.

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


    Tax Examiners and Clerks are not expected to be knowledgeable regarding portions of this manual that clearly do not relate to their work functions.  (01-01-2016)
Suspense/Rejects Conditions

  1. Returns and documents suspended from normal processing are Rejects. Work may be included in the suspense/rejects inventory for any of the following reasons:

    • Correspondence to obtain missing information or attachments

    • Numbered incorrectly

    • Needs review by another function

    • Needs additional research

    • Needs re-entry due to an incorrect Block Header or a program cut - off

    • Unprocessable

    • Missing return

    • Early filed returns

    • Nullified Unpostables

    • Preparation of manual refunds, when needed.  (01-01-2016)
♦BMF Consistency♦

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

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

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

  4. The text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.  (01-01-2016)
♦IRM Deviation Procedures♦

  1. IRM deviations must be submitted in writing following instructions from IRM, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.  (01-01-2017)
♦Taxpayer Advocate Service (TAS)♦

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

  2. Refer taxpayers to TAS when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria), or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day. "Same day" includes cases that can be completely resolved in 24 hours, as well as cases where steps can be taken within 24 hours to begin resolving the issue. (See also IRM, Same Day Resolution by Operations.)  When making a TAS referral, use Form 911, and forward to TAS in accordance with your local procedures.  (01-01-2016)
♦TAS - Service Level Agreement (SLA)♦

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

  2. The SLAs are located at under the heading "Policy/Procedures/Guidance" .  (03-09-2016)
♦Frivolous Returns and Claims♦

  1. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program (FRP), shown in Exhibit 3.12.38-9.

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

    If... Then...
    The return meets any of the conditions identified as a frivolous return. Exhibit 3.12.38-9


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

    SSPND 331, remove return from batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review.
    Examination has selected the return as frivolous, e.g., indicated by an Action Code 331, and a Form 4227 with the remarks "Refer to Exam FRP for audit after process" , but sends the return for processing. Continue processing the return using procedures in IRM 1041. However, do not circle or void the Action Code indicating a frivolous return.


    If the return is requesting a refund, input CCC O to freeze any refund and continue processing. When processing is complete, route the return to Exam and recharge the document.


    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡  (02-22-2016)
♦Criminal Investigation (CI) "Funny Box" ♦

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

  2. Any return identified as having any CI criteria found in Exhibit 3.12.38-10 SSPND 332, and after pulling the return place it in the "CI Funny Box" .

  3. If CI has stamped the return, no further CI action is required, but if the return fits other criteria (e.g., Frivolous Argument) take appropriate action.  (01-01-2016)
♦Examination (Exam) "Funny Box" ♦

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

  2. Some returns will need special care. If the withholding is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , attach Form 4227 and place in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review. Pay particular attention to returns with Form 1099-OID attached.  (01-01-2016)
♦BMF Identification (ID) Theft♦

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

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

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

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

    Your senior/lead will expedite the case to the P&A staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must indicate that they are a victim of "ID Theft" ; do not send cases that are subject to "Funny Box" or "Fraud" review.  (01-01-2016)
♦Correspondence Imaging System (CIS) Returns♦

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

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

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

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


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

    The return is not complete (e.g., missing signature, schedules or forms),
    1. SSPND 640 to have the DLN voided.

    2. Attach Form 4227 to the return and route to AM, to secure missing information.


    Do not correspond for missing information on CIS reprocessable/re-input returns.

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

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


    If there is an indication on the return that correspondence has been sent (e.g., CCC 3 is edited on the return), do not route return to AM. Continue processing return.  (01-01-2017)
♦IRS Employee Contacts - RRA98 Section 3705(a)♦

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

  2. All IRS employees who communicate by telephone, correspondence, or face to face, with taxpayers or their personal representative, on tax-related matters are required to provide (at a minimum) the following information:

    1. Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number.

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

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

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

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

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

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

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

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

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


    The Taxpayer Bill of Rights (TBOR) was adopted by IRS in June 2014 and provides that taxpayers have the right to receive prompt, courteous and professional assistance in their dealings with the IRS. They are to be spoken to in a way that is easily understood and any correspondence from the IRS must be clear and understandable. They have the right to speak to a supervisor whenever quality service is not received.  (01-01-2017)
♦Use of Fax for Taxpayer Submissions♦

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

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

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


    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM, Required Taxpayer Authentication and IRM, Additional Taxpayer Authentication. Also, before leaving any messages on a taxpayer's answering machine, review IRM, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.  (01-01-2016)
♦CADE 2♦

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

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

  3. The BMF campus cycles are:

    1. Campus Cycle: Thursday - Wednesday

    2. Master File Processing: Friday - Thursday

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

    4. Unpostables: New available Tuesday; Closing Tuesday

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

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

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


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

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

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday


    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.  (01-01-2016)
Working Trail

  1. Working Trail – It is important to leave a legible "working trail" for those who may work with the return later. If your Campus has written "in-house" agreements which vary from the instructions below, you may follow them. However, the following procedures have been coordinated with appropriate areas in the National Office.

  2. A "Working Trail" is to be left at the point of error on the return or schedule for each correction made in the areas specified below in blue erasable ink. Place an "X" beside the incorrect data and write the correct data to the left or above the "X" . However, If the information is available on the page, you may use an arrow to move the information to the correct line.

  3. Enter the following transcribed items when making a change to the return:

    • Tax Period (Field 01TXP).

    • Name Control (Field 01NC).

    • Employee Identification Number (Field 01EIN).

    • Correspondence Received Date (Field 01CRD).

    • Action Code (bottom left corner of the return, unless otherwise instructed).

    • Taxpayer Notice Code (TPNC).

    • Transaction Code (e.g., TC 013).

    • Non-Suspense Letters (e.g., 3875C).

    • Form 3465 (Adjustment Request).  (01-01-2016)
Guidelines for Code & Editing Responses Using Edit Marks and Working Trails

  1. Tax Examiners in the Reject Suspense function will use the following guidelines while perfecting returns/documents when taxpayers respond to correspondence.

  2. An "X" is used to delete an entry or an entire Form/Schedule attached to the return.


    The terms "circle out" or "X out" are used interchangeably throughout this IRM.

  3. Working trails/Audit trails/Action trails – the following actions will be edited on returns in Reject/ERS programs:

    • Tax periods other than current year returns.

    • Changes to Employer Identification Numbers/Social Security Numbers (EIN/SSN) - Edit change on the Entity portion of the Return, (Field 01EIN).

    • Any Action Code (AC) will be notated on bottom left hand corner of the return.

    • If an IDRS transaction is input, it will be notated on the document with the TC and the date.  (01-01-2016)
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, 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 Database one additional day to allow for TPNC review and correction. The selection can be 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 conditions found in the appropriate ERS IRMs.

  5. Corrected batches of work are then released as usual to subsequent functions. With the CARE process, corrected TPNCs that post to Master File match the notice received by the taxpayer  (01-01-2016)
CARE Reports

  1. 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 Reports

    • Employee Report

    • Cart Report

    • 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 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

  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.

    • 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.  (01-04-2016)
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 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.  (01-04-2016)
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 010 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. Refer to form specific IRMs.

  3. 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 has not been closed and will remain in the ERS inventory.

  4. If the return was worked incorrectly by the ERS tax examiner, feedback may be given following local procedures.  (01-01-2016)
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.


    IDRS will be used when IAT is unavailable.

  3. See the IAT web site at for a complete list of available tools and User Guides. A few of the tools available are:

    • Address Change

    • Auto MFREQ

    • CC Prints

    • Credit Transfer

    • Manual Refund

    • Route It Out  (01-01-2016)
Related Manuals

  1. This section of the manual contains general error resolution procedures.

  2. Tax Examiners or clerks – depending on the duties assigned – should be familiar with other Part III manuals.

  3. In certain cases, knowledge of the related section of IRM 3.11, Returns and Documents Analysis, may also be required.

  4. The following tables provide a listing of these Part III manuals and other IRMs:

    Submission Processing- General

    3.0.101 Schedule K-1 Processing
    3.0.273 Administrative Reference Guide

    Receipt & Control Branch

    3.10.72 Receiving, Extracting and Sorting
    3.10.73 Batching and Numbering

    Submission Processing Error Resolution

    3.12.8 Information Returns Processing
    3.12.10 Revenue Receipts
    3.12.12 Exempt Organization Returns
    3.12.13 Employment Tax Returns
    3.12.14 Income Tax Returns for Estates and Trusts
    (Form 1041, 1041-QFT, and 1041-N)
    3.12.15 Return of Partnership Income
    (1065 and 1065B)
    3.12.16 Corporation Income Tax Returns
    (Form 1120 SCRS Series)
    3.12.21 Credit & Account Transfers
    3.12.22 Employee Plan Excise Tax Returns
    (Form 5330)
    3.12.23 Excise Tax Returns
    (Forms 730 and 11C)
    3.12.32 General Unpostables
    3.12.37 IMF General Instructions
    3.12.106 Estate Tax Returns - Paper Correction Processing
    3.12.154 Unemployment Tax Returns
    3.12.166 EPMF Unpostables
    3.12.179 IMF Unpostables
    3.12.212 Applications for Extension of Time to File Tax Returns
    3.12.213 Form 1066, U.S. REMIC Income Tax Return
    3.12.217 Error Resolution Instructions for Form 1120S
    3.12.220 Error Resolution System for Excise Tax Returns
    3.12.249 Error Resolution for Form 8752
    3.12.251 Corporation Income Tax Returns
    3.12.263 Estate and Gift Tax Returns - Error Resolution Systems (ERS) Corrections
    3.12.278 Exempt Organization Unpostable Resolution
    3.12.279 BMF/CAWR/PMF Unpostables
    3.22.15 Foreign Partnership Withholding (Form 8804)
    3.22.19 Foreign Trust System (Form 3520 and 3520A)
    3.22.110 Chapter Three Withholding (CTW) Returns - Form 1042
    3.22.261 Foreign Investment in Real Property Tax Act (FIRPTA) (Form 8288 and 8288A)

    Submission Processing Returns and Document Analysis

    3.11.8 Information Return Processing
    3.11.10 Revenue Receipts
    3.11.12 Exempt Organization Returns
    3.11.13 Employment Tax Returns
    (941, 943, 944, 945, and CT-1)
    3.11.14 Income Tax Returns for Estates and Trusts
    (Form 1041, 1041-QFT, and 1041-N)
    3.11.15 Return of Partnership Income
    (Form 1065)
    3.11.16 Corporation Income Tax Returns
    (Form 1120 Series)
    3.11.22 Employee Plan Excise Tax Returns
    (Form 5330)
    3.11.23 Excise Tax Returns
    (Form 720, 730, 11C, and 2290)
    3.11.25 Miscellaneous Tax Returns
    3.11.26 Miscellaneous Tax- Exempt Governmental Entities (TE/GE) Tax Returns
    3.11.106 Estate and Gift Tax Returns
    3.11.154 Unemployment Tax Returns
    3.11.180 Allocated Tips
    3.11.212 Applications for Extension of Time to File
    3.11.213 Form 1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return
    3.11.217 Form 1120S Corporation Income Tax Returns
    3.11.249 Processing Form 8752
    3.21.15 Foreign Partnership Withholding (8804)
    3.21.110 Chapter Three Withholding Returns - Form 1042

    Submission Processing Document Services

    3.13.2 BMF Account Numbers
    3.13.12 Exempt Organization Account Numbers
    3.13.36 EPMF Account Numbers
    3.13.62 Media Transport and Control
    3.13.122 IMF Entity Control Unpostables
    3.13.222 BMF Entity Unpostable Correction Procedures

    Submission Processing and MCC Accounting and Data Control

    3.17.10 Dishonored Check File (DCF) and Unidentified Remittance File (URF)
    3.17.30 SC Data Controls
    3.17.41 Accounting and Operating Reports
    3.17.46 Automated Non-Master File Accounting
    3.17.63 Redesign Revenue Accounting Control System
    3.17.79 Accounting Refund Transactions
    3.17.220 Excess Collections File
    3.17.221 Enterprise Computing Center Data Controls
    3.17.243 Miscellaneous Accounting
    3.17.277 Electronic Payments

    Information Systems Multifunctional Handbooks

    IRM Chapters TITLE
    2.3 IDRS Terminal Responses
    2.4 IDRS Terminal Input
  5. Other related IRMs:

    2.11.1 IDRS Correspondence
    20.2 Interest
    21.2.4 Master File Accounts Maintenance
    Document 6209 IRS Processing Codes and Information
    Document 6548 IDRS Correspondex  (01-01-2016)
Control Clerk Guidelines

  1. This section of the manual lists the procedures that are to be performed by Control Clerks. The duties may include:

    • Receiving, sorting, and distributing work

    • Document control

    • Input of correspondence

    • Control of registers

    • Maintaining Suspense File and Charge-outs

    • Various other clerical functions.  (01-01-2016)
Control of Error Documents

  1. The control clerk is responsible for the control of error documents. This includes the following activities:

    • Controlling transcription carts

    • Alpha Block Control

    • Document charge out requests

    • Related processing for payment documents  (01-01-2016)
Transcription Carts

  1. At most Submission Processing Centers (SPCs), the carts of documents are retained until:

    1. SCRS - the first loop register has been worked and Statistics of Income (SOI) pulled, or three days.

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

    3. Block-Out-of-Balance (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 are identified by new work group after resolution.

  2. To maintain effective control, it is imperative that all documents be identified by work group based on the Julian date of processing through the Generalized Mainline Framework (GMF).

  3. Any documents that cannot be sent to Files within the normal 4-5 day period should be maintained in a researchable order by work group, so that the documents can be pulled by Files personnel.


    When the carts are no longer needed for error resolution, route them to Files or a staging area designated by Files.  (01-01-2016)
Alpha Block Control Number (ABC) Listing or Batch Transmittal

  1. Each block of documents (including single-document re-inputs) is checked off the ABC listing or the Batch Transmittal as it is associated with the error register or ERS listing.

  2. Any block, containing no errors, that has not been pulled for BOBs, Data Conversion or Accounting, should be removed from the batch cart. Check against SCCF to ensure the block has been processed.

  3. Use any ERS terminal to input Command Code (CC) SCFTR. Enter in the following format:

    • enter SCFTR

    • a space

    • enter the Master File Code (BMF-2, Information Returns Processing IRP-5, or Non Master File NMF-6)

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

    • transmit

  4. 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.

  5. As an alternative, the SCF 11-51 listing may be used.

  6. If any “left-over” blocks cannot be located on the SCCF, additional steps should be taken:

    1. Check for extra unassociated error registers, Error Inventory listings or BOB registers going back and forward at least two days.

    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, normally available in the BOB unit.

    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 supposed to be input.

    7. If all else fails, leave the block with the Data Controls Unit as a potential unprocessed block.  (01-01-2016)
Charge Out Requests

  1. Most document requests are processed by the Files function. However, priority charge-out requests will be honored when the blocks are located in Error Correction.

    1. Form 2275 or Form 4251 will be received for each document to be pulled for other campus functions.

    2. Attach the original request to the document being pulled and file the second copy as a substitute for the document.

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


    "Program Analysis" charge-outs will be placed on top of the appropriate carts and used to pull the documents immediately before the cart is released to Files.  (01-01-2016)
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:

    • Federal Unemployment Tax Act (FUTA) Unit - CP167/167A

    • Entity Control - Returns without Taxpayer Identification Numbers (TINs)

    • Document Services - Federal Tax Deposit (FTD) Penalty Assessment Letter 313C

    • Combined Annual Wage Reconciliation (CAWR) Unit - CP 252

    • Rejects - Correspondence

  2. Form 813 is routed to Files after the errors are corrected for these documents.

  3. The documents will be routed to the appropriate areas.


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

  4. All other documents will be routed to Files.  (01-01-2016)
Form 6826 - Service Center Replacement System (SCRS) Error/Reject Display Request Card

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

  2. Information in this section includes the following:

    • Purpose of the Form 6826

    • 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

    • Error Display Run Control Report

    • Form 6826, Section V - Reject Sort Card  (01-01-2016)
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.

    • Form 6826, SCRS Error/Reject Display Request Card is prepared to select the needed printouts. It is for register processing for all Master Files. Programs that have been converted to ERS cannot be affected by this form. Form 6826 is now PDF fillable and is available on the publishing website.

    • 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 and are input to run the GMF-10.

    2. The rejects sections may be prepared by the Control Unit, Rejects Unit supervisor, or the lead TE and are input to run the GMF-11.


      Hand carry Form 6826 to the Scheduling Unit or other area designated for processing.  (01-01-2016)
Beginning SC Block Number Card (ABC Card)

  1. This card will be prepared when the Correction ABC/Sequence Number (SN) is generated.

    1. Examine the Information Run Control Data, from the Error Display Run Control Report GMF 10-40 of the previous day.

    2. Enter the Beginning ABC (for the next day) in Section I, of Form 6826.  (01-01-2016)
Form 6826, Section II - Error Display Card

  1. The Error Display Card is to request the printing of raw and loop error records from the error tape and must be input daily.

    If Then
    An Error Display Card is not input on a particular day, BMF - Only the raw error documents will print on the register.
    An Error Display Card is not input on a particular day, Employee Plans Master File (EPMF) - Nothing will appear on the register.
    1. Each horizontal line on the Error Display Card represents a computer line.

    2. A separate line must be completed for each Master File.
      • Circle the appropriate Master File Identification Code number on the Error Display Card (2 for BMF).

  2. A separate line must also be completed, if only certain programs within a Master File are being requested. Use the Program Number field to select specific programs within a Master File, to be printed on the register. Enter the complete Program Number or enter any lead numerics followed by Xs. The program numbers may be entered as follows:

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

    • "NXXXX" - All programs with the same first digit will print, "NNXXX" - will print all program with the same first and second digits, etc.

    • "NNNNN" - Only one program will print (for example, 12401).

  3. Use the Raw field to select the raw error records to be printed on the register. This field contains seven positions for year and Julian date (YYYYDDD). A request for loop registers will override the default values which have been set.


    If loop registers are requested, and a card is not input to request the raw register, only the loop register will print.

    1. If error records for one Error SN Julian date, are requested, enter as YYYYDDD in the "From" column and leave the "To" column blank.

    2. All error records which have Error SN Julian dates greater than or equal to the first YYYYDDD and less than or equal to the second YYYYDDD 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.

  4. Loops, First through Fifth - The same criteria for raw errors applies to loop errors.

  5. Subsequent Loop (YYYYDDD Only) - All error records that have Error SN Julian dates less than or equal to the YYYYDDD entered, will print as "sixth loop or over" errors.

  6. Be sure that all records with old Julian dates are printed on the error register.


    Except for Information Report Program (IRP), no record should remain in error status for more than 3 weeks.

  7. 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.

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

    1. The Master File Identification (ID) Code is not 1, 2, 3, 4, or 5. If the code is invalid, the card will print on the listing for Individual Master File (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.


    The items listed as "invalid" will not print on the error register.  (01-01-2016)
Form 6826, Section III - Reject Display Card

  1. This card should be input whenever a Reject Inventory or Aged List is required, or reject loop registers should be printed.

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

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

  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. ( 2 = BMF)

    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 succeeding X fillers. An additional request with the program number blank may be used to request all remaining items on a Master File.


      For example, enter 728XX to request all of the EPMF programs or 72830 to restrict the request to a single major program.

    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.


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

    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. 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 Document Locator Number (DLN) and Reject Sequence Number (RSN) order, circle 3, not 1 and 2.

    7. To print the Aged List circle one number for "Aged List" using the same code shown on the form.  (01-01-2016)
Form 6826, Section IV - Error Sort Card

  1. Prepare an Error Sort Card to request changes to the following conditions:

    • The order the error records will print

    • The Error Pull List - whether to print or not

    • The computer generation of the Alpha Block Control Number and correction record Serial Numbers (ABC/SN) - to generate or not

  2. 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.

  3. Each horizontal line on the Error Sort Card represents a computer line. A separate line must be prepared for each Master File. Circle for the appropriate Master File Code as follows:

    • 1 = IMF/Individual Retirement Account File (IRAF)

    • 2 = BMF

    • 3 = Employee Plans Master File (EPMF)

    • 5 = Information Returns Processing (IRP)

  4. The Print Sequence field determines whether the error records are printed in transcribed batch sequence or in DLN sequence. Circle the appropriate number on the card for Raw, First, Second and Subsequent Loops.

    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.

    2. Code 2 - Files DLN Sequence Within Loop. The error register is 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 is printed in Files DLN order.

  5. Circle "1" for each register to print an Error Pull List.


    If the Error Pull List is not to be printed, do not circle a number.

  6. Correction ABC/SN - This field determines whether or not the computer will generate correction record ABC/SN for raw and first loop records. Circle the appropriate number or leave blank if the numbering is not to be generated.

    • Code 1 - Raw errors only

    • Code 2 - Raw and first loop errors

    • Code 3 - Raw and all loops - until the form is revised to show this option, enter the numeric 3 on Form 6826

  7. 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 Service Center (SC) Block Number is listed on page 3 of the Error Display Run Control Report.  (01-01-2016)
Error Display Run Control Report

  1. Error Sort Cards are validated and printed on the Error Display Run Control Report. The Error Sort Requests show the Old Error Sort Parameters, the Error Sort Requests Input, and the New Error Sort Parameters.

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

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

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

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

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

  4. 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.  (01-01-2016)
Form 6826, Section V - Reject Sort Card

  1. This 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.

    • Prepare Section V on the back of 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 Branch. No new card is needed unless the Reject function changes procedures.  (01-01-2016)
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.


    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, or 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.

  7. If a pull list is used for all reject registers, circle the "1" for "Raw" , "First Loop" , and "Other Loop" .  (01-01-2016)
Control of Error Registers

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

  2. Information in this section 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  (01-01-2016)
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

    • Codes the data to assure taxpayer notification of errors

  2. After data for an input document passes all required checks, it is sent to the Martinsburg Computing Center (MCC). This is known as good tape.

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


    The error sequence numbers will have gaps because the same series of numbers is used for BOB registers.

  4. 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.

  5. The Error Display Run Control Report, GMF 10-40, is generated daily as a computer summary of the error processing for the day. This report reflects the totals for the:

    • Error Register Summary

    • Pull List

    • Daily Error Volume Report

  6. Three portions of this report are used in preparing Form 6826, Error/Reject Display Request Card. See IRM  (01-01-2016)
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.

    • This report is used to schedule the workload for Error Resolution and to prepare Error Display Requests.

    • Review the report when preparing the daily Error Display Card to be sure the correct error Julian dates are being requested.

    • 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.

  2. The information is provided by Master File in Error Sequence Number by Julian date.

    • There is a summary page for each Master File system. It is in the same format as the detail page, except that the word "Summary" is printed on the second print line.

    • The last line of the report contains the total volume for all programs within the Master File and Julian date specified.  (01-01-2016)
Error Register Summary, GMF 10-42

  1. The Error Register Summary 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 (for example, Raw, 1st Loop, and Advanced Loops).

    • The count by loops is based 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.

  3. The listing also provides the total error documents in error status for all program numbers within a Master File. It is not a comprehensive total of all records on the error tape. Those figures are available on the Daily Error Volume Report.  (01-01-2016)
Associate Error Registers with Documents

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

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

    • The control clerk assigns portions of the error register with the related document cart to the various units.

  2. Many SPCs use various local controlling, routing, or sign-out forms prepared by the Error Correction Control function.  (01-01-2016)
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.

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

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

  2. In most SPCs, 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.

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

    • Be sure that old error records do not remain in the inventory for an extended period.


      Information Returns Processing (IRP)

  4. 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. Only transactions in the reject file are available for IDRS research by other functions within IRS.  (01-01-2016)
Error Pull List, GMF 10-42

  1. The Error Pull List, GMF 10-42 is used as an aid for locating source documents for error register items. It is printed in the same format as the error registers.

  2. The list is printed for the loop in which the documents will be pulled from the block, for association with the register.

    • It is printed for raw errors, first loop, second loop, or subsequent loops.

    • The listing is used as a check list as the documents are pulled.

  3. The Error Pull List Summary may be used to assist in scheduling the resources needed to pull documents.  (01-01-2016)
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. They 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.

  2. Each block of registers must have a correction alpha block control (ABC) and each corrected register requires a serial number. If the ABC is generated and is to be transcribed:

    • It must be underlined for the first record of the register block. An ABC sticker must be used, if the ABC is not generated or is not to be transcribed. The sticker will take priority over the generated ABC.

    • If the Serial Number (SN) is not generated, an SN must be stamped or written above and to the right of the "@@" signs. If the SN is generated, but is not to be transcribed, the SN must be stamped (or written) above the generated number. (The generated SN will not be lined through in this case.)

  3. If a record on the error register is not to be corrected at all for that day, 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.  (01-01-2016)
Control of Reject Registers

  1. This section of the manual lists the procedures that are to be performed to maintain control of Reject registers. Information in this section includes the following:

    • General reject register control procedures

    • Reject Sequence Number (RSN)

    • Reject Inventory List, GMF 11-43

    • Pulling Reject Documents, GMF 11-44

    • 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  (01-01-2016)
General Reject Register Control Procedures

  1. Each reject register must be associated with the source document. The specific procedures for pulling and associating the documents are determined by SPC management.  (01-01-2016)
Reject Sequence Number (RSN)

  1. The RSN is used to access each record on the file. It 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
    1 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  (01-01-2016)
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 date of the listing. It can be sorted by any of the following:

    • Document Locator Number (DLN)

    • Reject Sequence Number (RSN)

    • EIN

  2. The inventory list should be generated at least once a week as a research tool for items in rejects.

  3. Retain this list for at least one year.


    The report is available online and can be accessed for the past 12 months, so it is not necessary to retain paper copies. If documentation is made on the reports, the paper copy should be retained for one year.

  4. The Reject Display Card is used to request the inventory list and select the sequence(s) for the printed list.  (01-01-2016)
Pulling Reject Documents, GMF 11-44

  1. The Reject Pull List, GMF 11-44 is a list of items in the reject inventory and is printed upon request. The list is always printed in the same sequence as the reject register. If the registers are sorted by source, the headings will show the registers as:

    • From Errors

    • From Raw Input

    • From UNP

    • From BOB

  2. Use the Reject Sort Card to request the Pull List to designate whether the registers will be sorted by source.


    The Pull List is optional and may be printed for raw or loop rejects, or both.

  3. As the document is rejected, it may be pulled by:

    • Files,

    • Error Correction Cycle Control Unit,

    • Reject Control Unit, or

    • Each tax examiner.

  4. The documents may be pulled from the reject register or from the Pull List.

    1. Note:

      Each document must be charged out, by indicating on Form 1332 or Form 813 that the document is being sent to Rejects.  (01-01-2016)
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:

    • Make sure that all documents are received or noted as missing.

    • Sort the various types of reject cases.

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

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

    • Subsequent payment documents (Document Codes 17, 18, or 19, TC 670).

  3. Some reject registers will be received without documents.

    • Remittance Processing System (RPS) TC 610 documents are pulled by Error Correction and routed separately to Rejects.

    • Service Center Deletes have already been pulled by Data Control in Accounting.

    • Missing document registers should be maintained in a missing suspense file.


      Verify the DLN and alpha with Data Control and code the register with Action Code 2-R.  (01-01-2016)
Documents Received Without a Reject Register

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

    1. Research using the appropriate CCs to determine if the document is in Rejects, including SCFTR for the date of the register,

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

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

  2. 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.

  3. 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 the document,

    2. Line through and rewrite above the RSN the document sequence number,

    3. Line through pertinent data on the register, such as the EIN, to ensure that the register will loop,

    4. Route the photocopy of the register to ISRP for input,

    5. 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.

  4. 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.  (01-01-2016)
Control of Reject Loop Registers

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

    • The record becomes a reject loop if the correction fails to clear to "good tape" or delete from the reject file.

    • Each time the register is printed, every record in loop status is re-displayed.

    • 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.

  2. Reject loop records are 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

    • 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.

  3. Reject loop registers must be associated with the documents the same way as raw rejects.

    • Separate Reject Pull Lists may be requested for reject first loop or any subsequent loop.

    • 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.

  4. Reject loop registers should be printed at least once a week, but may be printed as often as daily. As Program Completion Dates (PCD) approach, the loop registers for those programs should be requested more than once a week.

    1. Note:

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

  5. Use the Reject Display Card to request printing of the loop.

  6. Use the Reject Sort Card to determine the print sequence and to request the pull list.

  7. If a document reappears on the loop register more than four cycles and it is not due to a programming issue, coordinate with your Lead/Manager, at their discretion, to:

    • Ensure accurate input through Data, or

    • Re-input the document with a F3893 and put an Action Code 2-R on the register, or

    • Cancel a zero balance return to files with an Action Code 2-D.  (01-01-2016)
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 and is:

    • Used to ensure that all registers have been received.

    • Used to assist in work assignments of resource allocation.  (01-01-2016)
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 SPC management,

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

    3. Separate the corrected from the deleted register, and

    4. Group into blocks of 100 or fewer registers.

  2. Assign a sequential Serial Number to each register.

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

    • Number the registers consecutively, beginning with 00.

  3. Enter an alpha sticker on the top-left corner of the first document in each block. Prepare a transmittal to ISRP according to local procedures.

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

    • Deleted registers are filed and retained for one year.

    • Corrected raw reject registers are retained for four months.

    • Corrected loop reject registers may be destroyed.

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