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3.12.212  Applications for Extension of Time to File Tax Returns

Manual Transmittal

October 31, 2016

Purpose

(1) This transmits revised IRM 3.12.212, Error Resolution, Applications for Extension of Time to File Tax Returns.

Material Changes

(1) IRM 3.12.212 - Due date, received date, and tax period information updated throughout this IRM.

(2) IRM 3.12.212 - Grammatical and editorial changes made throughout this IRM.

(3) IRM 3.12.212.1.1(4) -Rewritten to remove unnecessary information.

(4) IRM 3.12.212.1.3(2) -Revised to update SLA web address.

(5) IRM 3.12.212.1.3.3(2) - Moved instructions for TAS same day cases.

(6) IRM 3.12.212.1.3.4 - Added new bullet with reference to IRM for exceptions to TAS criteria.

(7) IRM 3.12.212.1.5 - Rewritten for clarity.

(8) IRM 3.12.212.1.5(1) - Deleted TAS same day instructions.

(9) IRM 3.12.212.1.8 - Deleted (2) Error register information unnecessary.

(10) IRM 3.12.212.1.9 - Rewritten for clarity.

(11) IRM 3.12.212.1.11 - Rewritten for clarity.

(12) IRM 3.12.212.1.11(1) a - Rewritten to add OUO.

(13) IRM 3.12.212.1.11(1)d - Added wording to clarify determination of timely filed request after electronically being rejected.

(14) IRM 3.12.212.1.11(1)f -Moved from (3)f; information regards to officially declared disasters.

(15) IRM 3.12.212.1.11(5) - Rewritten for clarity.

(16) IRM 3.12.212.1.11(5) - Example updated with current year information.

(17) IRM 3.12.212.1.11(5) -Example Rewritten for clarity.

(18) IRM 3.12.212.1.12(1) -Revised chart for 2017 processing.

(19) IRM 3.12.212.1.13 - Section rewritten to more accurately define research and how to perform that research.

(20) IRM 3.12.212.1.13(1) d - Example reworded for clarification.

(21) IRM 3.12.212.2(1) - Note corrected with the applicable program code.

(22) IRM 3.12.212.2.1 - Section redesigned to move Form 7004 information to the top and clarify instructions based on 2017 processing rules for extended due dates.

(23) IRM 3.12.212.2.3 - Rewritten for clarity.

(24) IRM 3.12.212.2.3(2)c - Status Code 3XX rewritten for clarification of the code.

(25) IRM 3.12.212.2.4 - Rewritten for clarity.

(26) IRM 3.12.212.2.6 - Rewritten for clarity.

(27) IRM 3.12.212.2.9(3)a - Added instruction to drop to the bottom and transmit once all fields have been verified.

(28) IRM 3.12.212.2.10 - Added a definition of the acronym, AFD.

(29) IRM 3.12.212.2.10(4) - Rewritten to more define error code requirements.

(30) IRM 3.12.212.3 - Section rewritten and expanded to incorporate the correction of errors for Form 7004 based on P.L. 114-41.

(31) IRM 3.12.212.3 - Rewritten to correct wording.

(32) IRM 3.12.212.3(3) - Re-written for clarification, obsolete information removed.

(33) IRM 3.12.212.3(5) - Rewritten to correct wording.

(34) IRM 3.12.212.3.1 thru 3.12.212.8.9 Titles updated to conform to the formatting for other ERS' IRMs.

(35) IRM 3.12.212.3.1(1) - Re-written for clarification.

(36) IRM 3.12.212.3.1(1) Chart - Rewritten to correct wording.

(37) IRM 3.12.212.3.2(1) - Added information that this field is not correctable.

(38) IRM 3.12.212.3.3 - Rewritten to correct wording.

(39) IRM 3.12.212.3.4 - Rewritten to correct wording.

(40) IRM 3.12.212.3.4(1) - Clarified that this applies to EIN and (3) Clarified that the transcriptions should be corrected.

(41) IRM 3.12.212.3.5 - Invalid Conditions and Correction Procedures rewritten to clearly state rules based on new rules for P.L. 114-41 and included in one section instead of two separate sections. 3.12.212.3.5.1 and 3.12.212.3.5.2 deleted and incorporated into this section.

(42) IRM 3.12.212.3.5.1 - Rewritten to correct wording. Later deleted and incorporated into 3.12.212.3.5.

(43) IRM 3.12.212.3.5.2 - Rewritten for clarity. Later deleted and incorporated into 3.12.212.3.5. Subsequent sections renumbered accordingly.

(44) IRM 3.12.212.3.5.2(3) c - Re-written for clarification Field 01TNT.

(45) IRM 3.12.212.3.6 - Section revised to include invalid conditions, and 3.12.212.3.6.1 was deleted.

(46) IRM 3.12.212.3.6 - Rewritten to correct wording and for clarity.

(47) IRM 3.12.212.3.6.2(6) - Example updated with current year information for Tax Period Ending.

(48) IRM 3.12.212.3.7 - Section revised to include invalid conditions and 3.12.212.3.7.1 was deleted. Subsequent section renumbered.

(49) IRM 3.12.212.3.7.1 - Section updated to reflect Form 7004 changes (P.L. 114-41), for TY 2017.

(50) IRM 3.12.212.3.7.1(3) - Re-written for clarification.

(51) IRM 3.12.212.3.7.2 - Rewritten to correct wording.

(52) IRM 3.12.212.3.7.1(4) - Re-written for clarification.

(53) IRM 3.12.212.3.7.2(1) d - Deleted Exception.

(54) IRM 3.12.212.3.9 - Rewritten to correct wording.

(55) IRM 3.12.212.3.10 - Rewritten to correct wording.

(56) IRM 3.12.212.3.10(2) - Chart: 01CCC re-worded for clarification.

(57) IRM 3.12.212.3.12.1 - Rewritten to correct wording.

(58) IRM 3.12.212.4. - Section rewritten for clarity. Removed inaccurate information on Error Code 003 validity.

(59) IRM 3.12.212.4.1.2(1) - Rewritten for clarity.

(60) IRM 3.12.212.4.1.2(3) - Note - Rewritten for clarity.

(61) IRM 3.12.212.4.1.2(3) Chart - Rewritten for clarity and to correct instructions.

(62) IRM 3.12.212.4.1.2(4) - Rewritten for clarity.

(63) IRM 3.12.212.4.3.2(1) - Rewritten for clarity.

(64) IRM 3.12.212.4.3.2(3) - Rewritten for clarity.

(65) IRM 3.12.212.4.3.2(3) Exception - Rewritten for clarity.

(66) IRM 3.12.212.4.3.2(5) Chart - Rewritten for clarity.

(67) IRM 3.12.212.4.3.2(8) - Rewritten to correct instructions.

(68) IRM 3.12.212.4.7.2 - Section rewritten for clarity.

(69) IRM 3.12.212.4.7.2(5) a - Rewritten to correct date.

(70) IRM 3.12.212.4.7.2(5) a - Example updated for current year processing, Error Code 026.

(71) IRM 3.12.212.4.7.2(5) b - Example updated for current year processing, Error Code 026.

(72) IRM 3.12.212.4.7.2(6) b - Rewritten for clarity.

(73) IRM 3.12.212.4.7.2.4. - Section rewritten for clarity.

(74) IRM 3.12.212.4.7.2.4.1(8) b Example - Rewritten to correct date.

(75) IRM 3.12.212.4.7.2.4.1(8) c - Rewritten for clarity.

(76) IRM 3.12.212.4.9.2(1) b - Example updated for Error Code 609.

(77) IRM 3.12.212.4.10.1(1) - Corrected paragraph for invalid conditions for Error Code 615.

(78) IRM 3.12.212.4.10.2(3) - Example updated for Error Code 615.

(79) IRM 3.12.212.4.11.1(1) - Corrected paragraph for invalid conditions for Error Code 617

(80) IRM 3.12.212.4.11.1(2) - Corrected paragraph for invalid conditions for Error Code 617

(81) IRM 3.12.212.4.11.2(3) - Note deleted, not a correction procedure.

(82) IRM 3.12.212.4.12.1 - Revised Section Title, removed End of Year.

(83) IRM 3.12.212.4.12.2 - Revised Section Title, removed End of Year.

(84) IRM 3.12.212.4.12.2(1) - Re-wrote correction procedures.

(85) IRM 3.12.212.5.1 - Titles in this section were updated to include the appropriate Form numbers.

(86) IRM 3.12.212.5.1 - Section rewritten for clarity and to correct wording.

(87) IRM 3.12.212.5.1 - Corrected the extended due date for Form 8892.

(88) IRM 3.12.212.5.1(1) - Revised for consistency; Chart updated; 01ED updated for clarification; 01TDT updated to read Transaction Date, removed words ” Received Date”, 01-LY removed from chart as obsolete.

(89) IRM 3.12.212.5.1.5(1) Invalid Conditions revised.

(90) IRM 3.12.212.5.1.8(3) - Rewritten to correct dates. Corrected the due date and extended due date for Form 8892.

(91) IRM 3.12.212.5.1.12 - Deleted prior subsection. Subsequent subsection shifted up and rewritten to correct working.

(92) IRM 3.12.212.6.1.1 - Rewritten to correct wording. Deleted paragraph (2).

(93) IRM 3.12.212.6.1.2 - Rewritten to correct wording.

(94) IRM 3.12.212.6.2.1 - Rewritten to correct wording.

(95) IRM 3.12.212.6.2.2 - Rewritten to correct wording.

(96) IRM 3.12.212.6.3.1 - Rewritten to correct wording.

(97) IRM 3.12.212.6.5.1 - Rewritten to correct wording.

(98) IRM 3.12.212.6.5.2 - Rewritten for clarity.

(99) IRM 3.12.212.6.6.1 - Rewritten for clarity.

(100) IRM 3.12.212.6.6.2 Corrected dates in Error Code 110 for Form 8892.

(101) IRM 3.12.212.6.6.2(1) - Rewritten for clarity.

(102) IRM 3.12.212.6.6.2(2) a - Rewritten for clarity.

(103) IRM 3.12.212.6.6.2(2) c - Rewritten to correct dates.

(104) IRM 3.12.212.6.6.2(2)c - Added information not to adjust the extended due date for weekends for Error Code 110.

(105) IRM 3.12.212.6.7.2(3)c - Added information not to adjust the extended due date for weekends for Error Code 135.

(106) IRM 3.12.12.6.7.2(3) - Corrected dates in Error Code 135 for Form 8892.

(107) IRM 3.12.212.6.8 - Rewritten for clarity.

(108) IRM 3.12.212.6.7.1 - Rewritten for clarity.

(109) IRM 3.12.212.6.7.2(1) - Rewritten for clarity.

(110) IRM 3.12.212.6.7.2(3) a - Rewritten for clarity.

(111) IRM 3.12.212.6.7.2(3) c - Rewritten to correct dates.

(112) IRM 3.12.212.7 - Expanded instructions to more clearly identify approved vs. denied extension requests.

(113) IRM 3.12.212.7.1 - Added reference to Revenue Receipts IRM for Form 4868 with Document Code 17 and 19. Also changed SSN to TIN in chart.

(114) IRM 3.12.212.7.1.1 - Rewritten to correct wording.

(115) IRM 3.12.212.7.1.2 - Revised instructions to Reject extension request if SSN is not found.

(116) IRM 3.12.212.7.1.2(2) c - Note re-written for clarification and dates updated.

(117) IRM 3.12.212.7.1.3 - Rewritten for clarity.

(118) IRM 3.12.212.7.1.4 - Rewritten for clarity.

(119) IRM 3.12.212.7.1.6 - Rewritten for clarity. Revised Field 01TDT procedures for determining Form 4868 received date.

(120) IRM 3.12.212.7.1.6(1) - Revised to clearly define invalid conditions for Field 01TDT and the correction procedures for timely receipts.

(121) IRM 3.12.212.7.1.7 - Rewritten for clarity. Corrected instructions for Form 4868/2350 Extended Due Date.

(122) IRM 3.12.212.7.1.7(4)(5) - Added prior year editing instruction.

(123) IRM 3.12.212.8 - Wrote specific instructions for resolving error codes for IMF Doc Code 77 with a reference to Revenue Receipts IRM.

(124) IRM 3.12.212.8.1.2(7)a - Clarified when to use the Clear Code Field.

(125) IRM 3.12.212.8.1.3 - Rewritten for clarity.

(126) IRM 3.12.212.8.1.3(1)a - Clarified when to use the Clear Code Field.

(127) IRM 3.12.212.8.2(3) - Chart Revised instruction to enter SSN only after verifying the account matches on INOLE.

(128) IRM 3.12.212.8.3 - Rewritten for clarity.

(129) IRM 3.12.212.8.4 - Rewritten for clarity.

(130) IRM 3.12.212.8.5 - Rewritten for clarity.

(131) IRM 3.12.212.8.6 - Section rewritten for clarity. Added instructions for prior year and fiscal year in Error Code 110.

(132) IRM 3.12.212.8.8 - Section rewritten for clarity. Corrected dates in Error Code 135, and added instructions for prior year.

(133) IRM 3.12.212.8.6(3)b See IRM 3.11.212.5.4.3(5) chart for fiscal year returns

(134) IRM 3.12.212.8.7 - Rewritten to correct wording.

(135) IRM 3.12.212.8.8 - Rewritten for clarity.

(136) IRM 3.12.212-1 - Exhibit updated with the 2016 version of Form 7004, adding page 2.

(137) Exhibit 3.12.212-7 - Dates updated throughout for current processing year.

(138) Exhibit 3.12.212-7 - Corrected Master File Generated Extension dates.

(139) Exhibit 3.12.212-8 - Postmark Date and Extended Due Date chart updated and note following re-written to remove obsolete information.

(140) Exhibit 3.12.212-8 - Rewritten to clarify and correct dates. Corrected Master File Generated Extension Dates.

(141) Exhibit 3.12.212-9 - Dates updated throughout for current processing year. Corrected Automatic Extended Due Dates.

(142) Exhibit 3.12.212-10 New exhibit added for Form 1120-POL due dates. Subsequent exhibits renumbered.

(143) Exhibit 3.12.212-11 - Rewritten for clarity.

(144) Exhibit 3.12.212-13 - Disaster Chart updated.

(145) Exhibit 3.12.212-13 - Corrected a date, and added Louisiana and Texas to Disaster Dates chart.

(146) Exhibit 3.12.212-13 - Added second Mississippi incident, and added asterisks to indicate overlapping dates.

(147) Exhibit 3.12.212-13 - Added second Texas incident, and added asterisks to indicate overlapping dates.

(148) Exhibit 3.12.212-13 - Added Florida to the Disaster Date Chart, FEMA 4280-DR.

Effect on Other Documents

IRM 3.12.212 dated October 30, 2015 (effective January 1, 2016) is superseded. The following IPUs have been incorporated: IPU 16U0025 issued 01-04-2016, IPU 16U0222 issued 02-01-2016, IPU 16U0307 issued 02-11-2016, IPU 16U0356 issued 02-18-2016, IPU 16U0592 issued 03-28-2016, IPU 16U0668 issued 04-01-2016, IPU 16U0826 issued 04-29-2016, IPU 16U1005 issued 05-31-2016, IPU 16U1096 issued 06-20-2016, IPU 16U1169 issued 06-20-2016, IPU 16U1309 issued 08-18-2016, IPU 16U1474 issued 10-03-2016.

Audience

Error Correction employees in LB&I, SB/SE, and W&I.

Effective Date

(01-01-2017)

Linda J. Brown
Director, Submission Processing
Wage and Investment

3.12.212.1  (01-01-2003)
General

  1. This chapter contains instructions to be used by the Error Correction function to correct errors made by taxpayers as well as those made by the IRS.

3.12.212.1.1  (02-18-2016)
Purpose and Scope

  1. Included in this chapter are instructions for correcting errors on applications for extensions of time to file and certain other miscellaneous forms.

  2. This IRM should be used in conjunction with IRM 3.11.212, Applications for Extension of Time to File.

  3. The instructions in this IRM cover the correction of the following forms.

    Form Title
    2350 Application for Extension of Time To File U.S. Income Tax Return
    3177 Notice of Action for Entry on Master File (an internally generated form)
    4868 Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
    5466-B Multiple Record of Disclosure (an internally generated document)
    7004 Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns
    8892 Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax
  4. Correction Instructions for approved Form 4868 (Document Code 17 and 19) processed as Program 447XX are in IRM 3.12.10, Revenue Receipts.

  5. Correction Instructions for Form 5558, Application for Extension of Time To File Certain Employee Plan Returns and Form 8868, Application for Extension of Time To File an Exempt Organization Return, are in IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns.

  6. Correction Instructions for Form 5768, Election/Revocation of Election by an Eligible Section 501(C)(3) Organization To Make Expenditures To Influence Legislation, are in IRM 3.12.12, Exempt Organization Returns.

3.12.212.1.2  (04-03-2015)
IRM Deviation Procedures

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

3.12.212.1.3  (10-31-2016)
Taxpayer Advocate Service (TAS)

  1. The National Taxpayer Advocate (NTA) has reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business and Self-Employed (SB/SE) Division, Tax Exempt and Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals and Large Business and International (LB&I) Divisions. Each Service Level Agreement (SLA) outlines the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or the delegated authority to complete case transactions rests outside of TAS.

  2. The SLAs are located at http://tas.web.irs.gov/policy/sla/default.aspx

3.12.212.1.3.1  (01-01-2014)
TAS is an Independent Organization

  1. The TAS is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

  2. TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the NTA). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

3.12.212.1.3.2  (02-18-2016)
Same Day Resolution

  1. A referral to a TAS office is not necessary even if a TAS case criterion is met if an Operating Division or Function can immediately resolve the issue within 24 hours. It is important that all IRS employees handle potential TAS cases with the taxpayer’s best interest in mind. More information on 24 hour same day resolution can be found in IRM 13.1.7.4, Same Day Resolution by Operations.

  2. If action can be taken within 24 hours to resolve the taxpayer’s issue, but the taxpayer requests TAS assistance or is not satisfied with the service provided, refer the taxpayer to the NTA toll-free number, 1-877-777-4778 or TTY/TDD 1-800-829-4059. Refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

3.12.212.1.3.3  (03-28-2016)
Referral to TAS

  1. If the IRS employee receives taxpayer contact that meets TAS criteria, and the employee cannot initiate action to resolve the taxpayer's inquiry or provide the relief requested by the taxpayer, refer the case to TAS. A taxpayer should not have to request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer to support the requested relief, or when required by the IRM.

  2. Refer taxpayers to the TAS (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) and the issue cannot be resolved the same day.

    • The definition of same day is within 24 hours. Same day cases can be resolved in 24 hours.

    • Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations.

    • When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS in accordance with local procedures.

  3. In preparation for a case being referred to the W&I Division, TAS is responsible for:

    1. Preparing Form 12412, Operations Assistance Request (OAR);

    2. Securing all necessary supporting documentation;

    3. Forwarding Form 12412 and documentation on Form 3210, Document Transmittal, to the W&I Division Liaison;

    4. Clearly identifying an OAR requiring expedited processing.

  4. W&I Division is responsible for:

    1. Assigning a liaison in each office or Campus where a Taxpayer Advocate is located;

    2. Acknowledging receipt of the case via Form 3210 within one (1) workday for expedite processing and within three (3) workdays for non expedite cases;

    3. Reviewing the case for appropriate assignment;

    4. Assigning the case to the appropriate employee within the function;

    5. Providing TAS with the name and telephone number of the W&I employee assigned the case;

    6. Determining a reasonable time frame for case resolution;

    7. Providing TAS written approval to input an adjustment or issue a manual refund, in accordance with TAS delegated authorities, after a W&I determination has been made;

    8. For cases requiring expedited processing, responding to TAS within three (3) workdays in writing via facsimile or hand delivery of resolution;

    9. Returning Form 12412 within three (3) workdays from the date all actions have been completed and transactions input.

  5. For additional information, see the SLA located at http//tas.web.irs.gov under the heading "Policy/Procedures/Guidance" , or IRM 13.1.19, TAS Operations Assistance Request (OAR) Process.

3.12.212.1.3.4  (10-31-2016)
Exceptions to TAS Criteria Cases

  1. The following types of cases should not be referred to TAS:

    • The taxpayer's complaint or inquiry only questions the constitutionality of the tax system.

    • The focus of the taxpayer's inquiry is solely to employ frivolous tax strategies to avoid or delay filing federal returns or paying federal taxes.

    • For additional information on cases that TAS will generally not accept, see IRM 13.1.7.3, Exceptions to Taxpayer Advocate Criteria.

3.12.212.1.4  (10-31-2016)
Related Forms

  1. The following forms are referred to in this section. The chart below shows their form number, form title and use.

    Form Title Use
    Form 3244 Payment Posting Voucher To post payments on accounts
    Form 3696 Correspondence Action Sheet To initiate correspondence to the taxpayer
    Form 4227 Intra-SC Reject or Routing Slip To identify the unprocessable condition
    Form 6401 Request for Missing Information To inform taxpayer of erroneous filed extensions
    Form 6882 IDRS/Master File Information Request To request IDRS research
    Form 8161 ERS Return Charge-Out To charge out returns on the new Suspense List, Rejected Records List and Duplicate Document DLN Register. Input Correction Operation will also use as a routing slip and history item.
    Form 13482 Letter 3699C Extension Correspondence Action Sheet To initiate correspondence to the taxpayer using Letter 3699C

3.12.212.1.5  (03-28-2016)
ERS Inventories

  1. Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction. Once the Error Resolution tax examiner accesses the record and it is displayed on the screen, it must either be fully corrected, placed in suspense for additional information, or rejected from pipeline processing. Corrections will include correcting errors in editing or transcription.

  2. This IRM is the main source of information in correcting the record on the screen and the related return. Procedures will also be found in IRM 3.12.37, IMF General Instructions, and IRM 3.12.38, BMF General Instructions, which contain general instructions for correcting records on the screen, document control, inventories, and management reports.

3.12.212.1.6  (01-01-2009)
Error Inventory Report

  1. Each day the Error Inventory Report will be furnished showing the blocks by the block control number and block Document Locator Number (DLN) in DLN order. Each batch will be on separate pages. Blocks received from Block Out of Balance (BOB) Correction will also be listed separately.

  2. A copy of the Error Inventory Report can be placed on the carts of documents and used as a charge-out. This will help to determine when a cart is completed.

  3. The first line of the Error Inventory Report will show the number of working days the records on that page have been in the Error Inventory. This will enable work left from a previous day to have priority.

3.12.212.1.7  (01-01-2003)
Workable Suspense Inventory Report

  1. Each day the Workable Suspense Inventory Report will be furnished showing the records by program in DLN order for various statuses. Separate pages for each program with totals will be provided.

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

3.12.212.1.8  (10-31-2016)
Unprocessable Documents

  1. Error Resolution System (ERS )- When perfection of a document is not possible because it is necessary to correspond, perform research or refer the document to another area of the Campus, suspend the unprocessable record by entering Command Code SSPND followed by the appropriate Action Code.

3.12.212.1.9  (02-18-2016)
Non Master File Extensions

  1. When an ERS document is extending the time to file a Non Master File (NMF) return (Form 8612, 8613, 8725, 8831, 8876, 8924, or 8928), the record must be rejected from ERS.

    1. For non-remittance NMF items, SSPND 620. If necessary, Rejects will suspend with Command Code (CC) RJECT.

    2. For the NMF item with payment, follow instructions in IRM 3.12.38, BMF General Instructions, but first SSPND 343 to Accounting for research before finally rejecting from ERS and transferring to NMF or Unidentified, depending upon the instruction from Accounting.

3.12.212.1.10  (01-01-2009)
Perfection of Attachments

  1. If unrelated or unanswered taxpayer correspondence or questions are attached or written on the document and no action has been taken, detach or photocopy and route to the appropriate area.

  2. If unanswered taxpayer correspondence relating to the extension application forms is attached, make a photocopy of the attachment and forward it to the appropriate area.

  3. Be sure that any attachment or photocopy of an attachment routed elsewhere contains name, address, Taxpayer Identification Number (TIN), received date, and an audit trail is noted on the extension form.

3.12.212.1.11  (10-31-2016)
Determination of Timely Filing/Received Date - General

  1. Caution should be taken to determine when an extension was filed. The received date is the date the extension was delivered to the IRS.

    1. An extension is considered timely filed if the received date is within the ≡ ≡ ≡ ≡ ≡ grace period after the due date or if it has a postmark date on or before the due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. If the due date falls on a Saturday, Sunday, or legal holiday, the extension is still considered timely if it is postmarked by the following day that is not a Saturday, Sunday, or legal holiday.

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Under the timely mailing treated as timely filing rules of IRC Section 7502, the filing date is the postmark date if the postmark date is on or before the due date of the extension and the extension is received after the due date.

      Note:

      An extension with a timely foreign postmark would be considered timely filed based on Rev. Rule 2002-23.

    4. Rejected electronically filed Individual Master File (IMF) extension request: if there is an indication that the taxpayer attempted to timely file a Form 4868 or Form 2350 extension electronically and it was rejected, the paper request must be filed by the later of the regular due date or 10 calendar days after the date of the notification that the electronic submission was rejected.

    5. Rejected electronically filed Business Master File (BMF) extension request: if there is an indication on the extension or an attachment that the taxpayer attempted to timely file the Form 7004 extension electronically and it was rejected, the paper request must be filed by the later of the due date or 5 calendar days after the date of the notification of the rejection.

    6. Officially declared disasters: if the address on the extension is in a state covered by an officially declared disaster, or a FEMA number or disaster designation is notated, and the extension is postmarked on or before the disaster end date granted by the Commissioner in the Federal Emergency Management Agency (FEMA) disaster memo, the extension is timely filed. For a list of FEMA disaster states and dates, see Exhibit 3.12.212-13.

  2. If more than one extension request is included in a single envelope, Receipt and Control will stamp the postmark date on the face of each additional extension document.

  3. Exceptions to normal due date: some taxpayers are allowed additional time to file their extension request. If any of the following criteria are found, the extension is considered timely filed if received or postmarked by the 15th day of the 6th month after the end of the tax period (if postmarked 06/15/2017 for tax period 201612.) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    1. Form 7004 - if the taxpayer indicates 26 Code of Federal Regulations (CFR) section 1.6081-5, or checks the box on line 4.

    2. Form 7004 - if the taxpayer checks the box on line 2. It is not necessary for the extension to show a foreign address.

    3. Form 4868 - if the box on line 8 is checked or the taxpayer indicates on the extension form or on an attachment that the taxpayer is "out of the country" or "taxpayer abroad" , or that the taxpayer is in military service stationed abroad.

    4. Form 4868 - if the box on line 9 is checked or the taxpayer indicates "1040NR no withholding" , or "no withholding" .

    5. Form 2350 taxpayers are generally considered to be "out of the country" , so would always qualify for the 06/15/YYYY due date.

  4. There is no reasonable cause for late-filed extensions unless the Commissioner has extended the due date for filing due to a situation contained in Policy Statement 3-12. Policy Statement 3-12 states, "Late filed applications for extensions of time to file returns will not be approved. The Service will neither consider nor approve on a case-by-case basis late filed applications for extensions of time to file returns. The Commissioner may extend the due date for filing returns for broad classes or groups of taxpayers, but only in cases of natural disaster, catastrophe or other extraordinary situations. "

  5. If the Received Date is invalid, and the incorrect year was used when the date was stamped (i.e., 20160315 instead of 20170315), and other information (Julian date, postmark date, and/or signature date) indicates that the Received Date should be the current year, change the Received Date year to the current year.

    Example:

    Form 7004 has a stamped Received Date 20160315. The Tax Period is 201612. Postmark date is 03/13/2017. Postmark date indicates that 2017 is the correct year of the received date. Change Field 01RCD to 20170315.

  6. Received dates should be determined using the following priority:

    1. IRS date stamp

      Note:

      Earliest date stamp by Campus, Area Office, US Consulate, or Revenue Officer.

    2. The earliest legible postmark date (U. S. Postal Service, Foreign Postmark, or Private Delivery Service) on the envelope or stamped on the face of the document.

    3. Service Center Automated Mail Processing System (SCAMPS) date.

    4. Revenue Officer's signature date

    5. Signature date (Form 2350 only)

    6. DLN control (Julian) date minus 10 days

    7. Current date minus 10 days

  7. Use the due date charts for the specific forms in Exhibit 3.12.212-7, Exhibit 3.12.212-8 and Exhibit 3.12.212-9.

  8. For further information, refer to IRM 3.10.72, Receiving, Extracting, and Sorting, and IRM 3.11.212, Applications for Extension of Time to File.

3.12.212.1.12  (10-31-2016)
Transshipping Extensions

  1. Normally extension requests will be processed by the campus where they are received, but there are some exceptions. Use the following chart to determine transshipping:

    If Then route to
    Form 2350, Austin Submission Processing Center (AUSPC)
    Form 4868 and the taxpayer requests an extension longer than 6 months, Austin Submission Processing Center (AUSPC)
    Form 7004 for consolidated return and for Form 1120-F and 1120-C, Ogden Submission Processing Center (OSPC)
    Form 7004 for Form 8612, 8613, 8725, 8831, 8876, 8924 or 8928, Cincinnati Submission Processing Center (CSPC)
    Form 8892, Cincinnati Submission Processing Center (CSPC)

    Caution:

    Never transship a Form 7004 to an IMF campus.

  2. Never transship a Form 4868 to a BMF campus unless it is for a Form 1040NR estate or trust. Transship to CSPC only if the Form 4868 meets all the following conditions:

    • The request was originally filed in Austin or Cincinnati and

    • The Social Security Number (SSN) block contains an EIN or states that an EIN has been applied for with no SSN present and

    • The taxpayer name includes the word estate or trust.

  3. Form 7004 extensions for Forms 8612, 8613, 8725, 8831, 8876, 8924 and 8928 are processed to the NMF. See IRM 3.12.212.1.9, Non Master File Extensions.

  4. When transshipping extensions to another campus, do not send an 86C letter.

3.12.212.1.13  (10-31-2016)
Research

  1. Command Code (CC) INOLE definer S (INOLES) with the taxpayer's EIN or SSN, IRSN, or ITIN is used to find the following information:

    1. Taxpayer's name and address.

    2. Taxpayer's name control.

    3. Filing requirements (for BMF and Employee Plans Master File (EPMF) taxpayers).

    4. Fiscal Year Month (FYM) - this is the month the taxpayer's tax year ends.

      Example:

      If the FYM is 12, the tax year ends in December.

    5. See IRM 2.3.47, Command Codes INOLE, EOGEN and SPARQ, for more information on the use of this command code.

  2. CC BMFOL definer I (BMFOLI) with the taxpayer's EIN or SSN (SSN must be followed by a V or W) is used to find the following information:

    1. Taxpayer's name control.

    2. Taxpayer's filing history. BMFOLI will list the tax periods on the master file and whether a return has posted to the tax period. A Y under RET PST column indicates that a return (TC 150) has posted to that module.

      Note:

      Definer T may be used to display information from a specific Tax Period.

    3. See IRM 2.3.59, IDRS Terminal Responses, Command Codes BMFOL and BMFOR, for more information on the use of this command code.

  3. CC IMFOL definer I (IMFOLI) with the taxpayer’s SSN, IRSN, or ITIN is used to find the following information:

    1. Taxpayer’s name control.

    2. Taxpayer’s filing history. IMFOLI will list the tax periods on the master file and whether a return has posted to the tax period. The POSTED RETURN column indicates if a return (TC 150) has posted to that module with entries of POSTED, MEF, SUBST4, etc.

      Note:

      Definer T may be used to display information from a specific Tax Period.

    3. See IRM 2.3.51, IDRS Terminal Responses, Command Code IMFOL, for more information on the use of this command code.

  4. CC ENMOD with the taxpayer's EIN or SSN is used to find the following information:

    1. Taxpayer's name control.

    2. Pending entity transactions such as Transaction Code (TC) 000 which establishes the taxpayer's account, name changes (TC 013) which may change the name control, or transactions such as TC 053, that may change the taxpayer's tax year.

    3. See IRM 2.3.15, Command Code ENMOD, for more information on the use of this command code.

  5. CCs NAMEE and NAMES, NAMEB and NAMEI, FINDE and FINDS, and TPIIP.

    1. Research for a taxpayer's EIN or SSN on the BMF or EPMF using the taxpayer's name (and address information if known).

    2. Research for a taxpayer's SSN on the IMF by entering the taxpayer's name (and address information if known).

    3. The most efficient search uses the taxpayer's name and ZIP Code.

      Note:

      If researching for an SSN and the taxpayer is using a foreign address, enter the fully spelled country name or a double asterisk (**) in the country field of CC NAMES to access the International Account Profile.

    4. CC NAMEI and NAMES are used to research for the taxpayer's SSN.

    5. CC NAMEB and NAMEE are used to research for the taxpayer's EIN or SSN for a BMF entity.

    6. CC FINDS (SSN) and FINDE (EIN) are used to find a name and address for a TIN.

    7. CC TPIIP (Taxpayer Personally Identifiable Information Protection) is used to research using the last four digits of the taxpayer’s SSN and taxpayer name.

    8. See IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP, for more information on the use of these command codes.

3.12.212.2  (10-31-2016)
Error Resolution System (ERS)

  1. The following extension forms are processed in ERS:

    1. Form 2350, Application for Extension of Time To File U.S. Income Tax Return

    2. Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return

      Note:

      ERS instructions for correcting errors on approved Form 4868 processed under Revenue Receipts Program 447XX (DLN document code 17 and 19) are found in IRM 3.12.10, Revenue Receipts.

    3. Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns

    4. Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax.

  2. The following Doc Code 77 forms are processed in ERS:

    • Form 5466-B, Multiple Record of Disclosure.

    • Form 3177, Notice of Action for Entry on Master File.

3.12.212.2.1  (10-31-2016)
General Information

  1. Form 7004 is processed in ERS:

    1. Form 7004 is numbered with Tax Class 1, 2, 3 or 5 in the DLN. Document Code is 04, Transaction Code (TC) is 620.

    2. When the TC 620 posts, it generates a TC 460 (has the same DLN as the TC 620) with the automatic extended due date (RDD plus 5, 5 1/2, 6, or 7 months).

      Exception:

      If the TC 620 has Computer Condition Code (CCC) L, no TC 460 is generated, so there is no extended due date.

    3. The Master File Tax (MFT) Code must be edited and transcribed on each record.

      DLN Tax Class Extension for:
      1
      • Form 1042 (MFT 12)

      • Form 8804 (MFT 08)

      2
      • Form 1041 (trust or estate) (MFT 05)

      • Form 1041-N (MFT 05)

      • Form 1041-QFT (MFT 05)

      • Form 1041 (bankruptcy estate only) (MFT 05)

      • Form 1065 (MFT 06)

      • Form 1065-B (MFT 06)

      3
      • Form 1120 series (MFT 02)

      • Form 1066 (MFT 07)

      • Form 3520-A (MFT 42)

      5
      • Form 706-GS(D) (MFT 78)

      • Form 706-GS(T) (MFT 77)

    4. A correspondence letter or other notice must be manually issued to the taxpayer when the extension request is denied; there is no automatic notice generated.

    5. All money amount fields are transcribed in dollars and cents.

  2. Form 3177 is processed in ERS:

    1. Program number 1550X is used.

    2. These are numbered with Document Code 77, Blocking Series 000-499.

    3. Transaction Code is 460.

    4. Extended due date must be edited and transcribed for these documents.

    5. These documents cannot carry a remittance.

  3. Form 5466-B is processed in ERS:

    1. Program numbers 1550X (BMF) or 4550X (IMF) are used.

    2. These are numbered with Document Code 77 and Blocking Series 500-699 (BMF) or 500-549 (IMF) in the DLN.

    3. Transaction Code is 120.

  4. Form 8892 gift tax extensions are processed in ERS.

    1. Program number 1550X is used.

    2. These are numbered with Document Code 77, Blocking Series 000-499, in the DLN.

    3. Transaction Code is 460.

    4. Extended due date must be edited and transcribed for these documents.

    5. These documents cannot carry a remittance.

  5. IMF extension Form 4868 (denied, Program 4550X) and Form 2350 (both approved and denied, Program 4550X) are processed in ERS. See IRM 3.12.212.7, Doc Code 77 IMF - Correction of Errors for Form 4868 and Form 2350.

    1. These Form 4868 and Form 2350 are numbered with Document Code 77 in the DLN. Transaction Code is 460.

      Note:

      Approved Forms 4868 with Document Code 17 and 19 are processed under Program 447XX and are worked in Revenue Receipts. ERS Correction instructions are contained in IRM 3.12.10, Revenue Receipts.

    2. Forms 2350 are numbered with Blocking Series 400-499. Only records with this blocking series will allow an extended due date past 12/15/YYYY.

    3. Extended due date must be edited and transcribed for these documents.

    4. These documents cannot carry a remittance.

3.12.212.2.2  (10-31-2016)
Type of Errors

  1. ERS will identify errors according to type and priority. The record heading will show the type of error.

  2. This IRM will furnish the solution for the displays of the errors. There may be records where the tax examiner finds that programming has not furnished a field that is needed to correct an error. In this event, the tax examiner can use CC GTSEC. This should be reported to the National Office for correction of the display.

    1. Action Code Error - (Priority I)

    2. Section Error - (Priority II) Integrated Submission & Remittance Processing (ISRP) problem code

    3. Validity Error - (Priority III)

    4. Math/Consistency Error (Error Codes) - (Priority IV)

3.12.212.2.3  (10-31-2016)
Status Codes

  1. Records for the documents in ERS are controlled by Status Codes. The status is updated when the records are placed in specific inventory.

  2. Below is a list of the Status Codes and brief explanation:

    1. Status 100 is an error awaiting correction. Records are in the Error Inventory.

    2. Status 2XX is a record awaiting information. Records are in the Suspense Error Inventory.

    3. Status 3XX is a record that the suspense period expired and the record was not activated or there was no response. Records are in the Workable Suspense Inventory.

    4. Status 4XX is a record with information, awaiting correction. Records are in the Workable Suspense Inventory.

    5. Status Code 900 is when the record is in the unselected inventory.

  3. The final two positions of the Status Code are the first two positions of the Action Code. This will group similar work together on the Workable Suspense Inventory.

    Example:

    Status 321: Suspense period expired, no response to taxpayer correspondence. If a record has been selected to be held for Quality Review, the positions 2 and 3 will be QA.

3.12.212.2.4  (10-31-2016)
Action Codes

  1. An ERS Action Code indicates specific information is missing or the record is to be suspended or rejected from processing. The code will have sufficient detail to indicate if correspondence is to be sent to the taxpayer or the specific in-house research or action required.

  2. Code and Edit will assign Action Codes to numbered returns when it is determined that the document is unprocessable, either by needing additional information or some manual intervention is required. This code will be entered on the bottom of the extension.

  3. Correspondence Action sheets (Form 3696 and Form 13482) will be attached by Document Perfection. For routing within the campus (in-house research), an explanation concerning the missing information will need to be attached to the return.

  4. The Action Code assigned by Code and Edit will be transcribed into the record of the document.

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

  6. A Charge-Out (Form 8161) will be computer-generated for all new suspense items. The charge-out will be used for pulling documents as well as routing and controlling documents while the record is being held in suspense and for use in associating the document with the Workable Suspense Inventory when the record becomes workable.

  7. When a record displays on the Workable Suspense Inventory with the Action Code as first priority:

    1. Add the information received to the record or follow the IRM instructions for the no reply and clear the Action Code by entering C in the Clear Field and transmitting.

    2. Once the Action Code is cleared, any validity, section or math/consistency errors will be displayed for correction.

    3. Records may have been unprocessable and again require suspension for additional information. A charge-out will not be generated for resuspended items. The charge-out should be notated in the appropriate block by entering the Action Code and date.

    4. Some Action Codes cannot be resuspended. If this occurs, the charge-out should be notated in the appropriate block by entering the correct Action Code and date.

  8. When perfection is not possible, the record may be rejected from ERS and action initiated to have the DLN voided. If remittance is involved, remittance may have to be transferred to the Unidentified Remittance File.

  9. Perfection may be possible but the record may require renumbering or uncorrectable fields may need correcting and the record will require rejecting for reinput. Reject the record by entering the CC RJECT followed by the Action Code 630 (reinput) or 640 (void). If a new DLN is to be assigned, use CC NWDLN with the appropriate Action Code and new DLN Master File ID Code if required.

  10. A charge-out will be generated for all rejected records. The charge-out will remain in the campus files for future reference.

    Note:

    If the DLN was transcribed incorrectly, the DLN on the charge-out will be erroneous. The correct DLN must be noted on the charge-out for use in pulling the document. Inform your supervisor of the block involved and the location of the document.

  11. ERS will automatically control most of the adjustments to Service Center Control File (SCCF). When manual adjustment is required, Form 4028, Service Center Control File Adjustment Record will be used.

  12. Only one Action Code may be assigned at a time to a record. The priority of the Action Code will be 310, 4XX, 6XX, 3XX, 2XX. An ERS tax examiner may enter an Action Code on a record, delete or correct an invalid code or may overlay the present Action Code with another to either resuspend or reject from ERS. This is done by entering the valid Action Code with the CC RJECT, SSPND, or NWDLN.

  13. An ERS tax examiner entering a valid Action Code with SSPND will clear the record from the screen and place the record in either Workable Suspense or Unworkable Suspense.

  14. A Suspense Correction tax examiner entering a valid Action Code with CC RJECT will delete the record from ERS. Generally SCCF will automatically update for the rejected records.

3.12.212.2.5  (01-01-2014)
Action Code Chart

  1. See the Action Code Chart below:

    Note:

    EC=Error Correction, CE=Code and Edit, S=Suspense Correction, and GEN=Computer Generated.

    Action Code Description Suspense Period Function Used In
    001 Input Document 0 EC
    211 First Correspondence 40 CE, EC, S
    212 Second Correspondence 25 CE, EC, S
    213 Correspondence to other 40 CE, EC, S
    215 International Correspondence 45 CE, EC, S
    220 Correspondence Input 21 CE, EC, S
    300 Fuel Tax Credit 10 CE, EC, S
    310 Statute Control 10 CE, EC, S
    320 Entity Control 10 CE, EC, S
    331 Protest Review 3 CE, EC
    332 QRDT Review 3 CE, EC
    333 Prompt Audit 10 CE, EC, S
    334 Joint Committee 10 CE, EC, S
    335 Protest Case 10 CE, EC, S
    336 QRDT 10 CE, EC, S
    337 Other CID 10 CE, EC, S
    341 Manual Refund 10 CE, EC, S
    342 Credit Verification 10 CE, EC, S
    343 Other Accounting 10 CE, EC, S
    344 Manual Refund by ERS 0 EC
    351 TIN Research 0 EC, S
    352 Name Research 3 CE, EC, S
    353 Address Research 3 CE, EC, S
    354 Filing Requirement Research 3 CE, EC, S
    355 Other MFTRA Research 5 CE, EC, S
    360 Other In-House Research 10 CE, EC, S
    370 Examination 10 CE, EC, S
    380 Amended-Consolidated 30 CE, EC, S
    383 1040EZ Audit Code 0 CE
    410 Technical Assistance 0 EC
    420 Management Suspense–A 5 CE, EC, S
    430 Management Suspense–B 10 CE, EC, S
    440 Management Suspense–C 15 CE, EC, S
    450 Management Suspense–D 20 CE, EC, S
    460 Management Suspense–E 25 CE, EC, S
    470 Complex Error Codes 0 EC, S
    480 Early Filed 150 CE, EC, S
    490 System Problem 5 CE, EC, S
    510 Missing Documents 0 CE
    511 Missing Document 1st Suspense 25 EC, S
    512 Missing Document 2nd Suspense 20 S
    513 Missing Document 3rd Suspense 20 S
    515 Missing Document Short Term 5 EC, S
    550 Mag Tape Attachments 3
    551 Mag Tape Inconsistent Data 3 CE
    610 Renumber 0 CE, EC
    611 Renumber with-remit 0 CE, EC
    620 NMF/Non-ADP 0 CE, EC
    630 Reinput 0 EC
    640 Void 0 CE, EC
    650 International 0 CE, EC
    651 International-AUSPC 0 CE, EC
    660 Data Control Delete (TEP Delete) 0 CE, EC, GEN
    670 Rejected Missing Documents 0 EC, S
    700 Duplicate Block DLN 0 GEN
    711 Duplicate Document DLN from CE NA GEN
    712 Duplicate Document DLN from Error NA GEN
    713 Duplicate Document DLN from Unpostable NA GEN
    714 Duplicate Document DLN from Unworkable Suspense NA GEN
    715 Duplicate Document DLN from Workable Suspense NA GEN
    900 Unpostable Record 0 GEN

3.12.212.2.6  (02-18-2016)
Clear Code C and 000

  1. The letter C is used as a Clear Code for the Error Codes where the error condition does not require a change or correction to the record as displayed. The screen display will include a clear field labeled CL to indicate the possible need of a clear code.

  2. Error Codes are cleared by either correcting the condition or entering a C in Field CL to indicate no correction is needed.

  3. Code C is also used for clearing the Action Code from the screen after corrections have been completed, or as with Action Codes 410 and 700, the Action Code must be cleared initially, so other errors in the record can be resolved.

  4. The 000 is also used as a Clear Code when deleting Action Codes. It will only be used for erroneous Action Codes when there is no reason to suspend the record. The 000 cannot be used in suspense correction.

  5. Programming erases all C Clear Codes for Error Codes when a record is suspended with the CC SSPND.

  6. Programming erases all C Clear Codes for Error Codes and Action Codes for the new day's Error Inventory and Workable Suspense Inventory. Unfinished records from the previous day will contain none of the C Clear Codes that were assigned to a record that was not completely worked.

  7. Error Codes (including the ones which may require a C Clear Code) are numbered consecutively for correcting.

    1. There may be instances an error code with a higher priority will display.

    2. Beginning with the higher priority error code created, programming will continue displaying error codes for the record. Screen displays with the corrected data may be different from those previously displayed.

    3. There may be instances when an error code which was previously cleared and now no longer displays.

    4. If there are errors remaining on the record, they will be displayed for resolution.

  8. The Clear code will prevent any other corrections to the record. If a correction must be entered and the error is no longer displayed, enter CC GTRECW to make corrections.

3.12.212.2.7  (10-31-2016)
Correspondence

  1. Correspondence may be necessary if Code and Edit has not corresponded for missing or contradictory information or to notify the taxpayer that the extension has not been approved for Forms 4868, 2350, 7004 and 8892.

  2. The following table shows the available IDRS Correspondex Letters to be used if corresponding to the taxpayer is necessary.

    Letter Title
    Letter 0296C Information Requested for Extension of Time to File
    Letter 0297C Extension of Time to File (IMF/BMF), Denial Explained
    Letter 0320C Unexplained Remittance—Explanation Requested
    Letter 0333C Extension of Time to File (IMF/BMF) Approved
    Letter 3699C Extension of Time to File (BMF)

    Note:

    Other letters, forms, or a Quick Note may be used for correspondence if appropriate to the situation. See Exhibit 3.12.212-12 for Quick Note.

  3. When the taxpayer replies to correspondence, enter the correct information provided by the taxpayer.

  4. When there is no reply from the taxpayer for correspondence requesting information needed to process the extension, follow the no reply instructions for the Error Code, and ensure an Audit Trail is noted on the extension form. If the document carries a remittance, reinput the form as a non-remittance document and prepare Form 3244, Payment Posting Voucher, with TC 670 to post the payment to the appropriate account. If unable to determine the appropriate account, send payment to Unidentified Remittance Unit.

  5. Undeliverable correspondence - when correspondence is returned as undeliverable, research attachments and IDRS for another address. If found, send the correspondence to the new address. If no new address is found:

    1. If the correspondence was requesting information, follow no reply procedures.

    2. If the correspondence was notification to the taxpayer that the extension request was not approved, destroy the correspondence.

3.12.212.2.8  (01-01-2007)
Field Errors

  1. Any field that does not meet the requirements for that field will be shown as a field error. Some reasons for this type of error are:

    • Non alphabetical character in an alpha field.

    • Blank space in a numeric field.

    • Blank in the first position of an alpha field.

  2. All fields with a field error will be displayed in the order encountered in the record. The Action Code will never be displayed as a field error.

3.12.212.2.9  (10-31-2016)
Section Errors

  1. There are two types of errors which are identified as section errors— Integrated Submission & Remittance Processing (ISRP) and Terminus errors.

  2. ISRP errors are errors detected by the ISRP System. The table below shows the codes that identify what type of ISRP error is being displayed.

    Code Meaning
    1 Split screen transmission. Key verifier attempted to change check digit, Key verifier changed 4 or more digits of TIN, or the original entry operator entered required section as missing.
    3 Invalid section ending point
    4 Invalid field length
    5 Questionable Section—the ISRP operator input the same section more than once. The computer program will drop all duplicate sections and display on the error screen the first one encountered.
  3. When displayed, an ISRP error will display all input fields except for the Remittance in Section 01 of the section in error. Transcribed data will be present. Computer generated data will not be present.

    1. Check all fields of the section when this condition exists, verify that all data is entered as coded, and drop to the bottom of the screen and transmit.

    2. If no correction is needed, or once the section is correct, enter C in the Clear Code Field.

  4. Terminus Errors are caused by a section with variable length input fields containing an erroneous size field.

    1. This type of error will show all input fields of the terminus section. Transcribed data will be present, computer generated fields or Remittance Field for Section 01 will not be present.

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

    3. When all fields have been verified and/or corrected, drop to the bottom and transmit to clear the terminus error.

3.12.212.2.10  (10-31-2016)
ERS Error Codes General

  1. An error code is computer generated to a record and assigned in numerical order.

  2. Each field that displays in each error code is defined by an Alpha/Numeric Field Designator (AFD).

  3. Error Codes will be displayed in ascending numerical order.

  4. Error codes require at least one of the following three actions to be taken by the tax examiner per IRM instructions:

    1. Correct the invalid condition.

    2. Verify and enter C in the Clear Code Field.

    3. Suspend the document with the appropriate Action Code.

3.12.212.3  (10-31-2016)
BMF - Correction of Errors for Form 7004

  1. Use the following instructions to correct ERS screens for Form 7004 extension requests.

  2. Section 2006(a) of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, P. L. 114-41, (the Act) changed the due dates for filing tax returns or extension requests of partnerships and most corporations for tax years beginning January 1, 2016 and after (i.e., Tax Period 201612 and subsequent).

  3. For tax years beginning January 1, 2016 and after, partnership returns and extension requests are now due 2 and 1/1 months after tax period end (March 15 for calendar year Form 1065).

  4. For tax years beginning January 1, 2016 and after, Form 1120 series returns for C corporations (other than Form 1120-C, Form 1120-POL and corporations that end the tax year on June 30) are now due 3 and 1/1 months after tax period end (April 15 for calendar year Form 1120). In addition, the Act changed the duration of the automatic extension of time to file some C corporation returns. C corporations that end the tax year on December 31 receive a 5 month extension. C corporations that end the tax year on June 30 receive a 7 month extension.

  5. The Act increased the duration of extensions for Form 1041 (trust or estate other than a bankruptcy estate) to 5 1/1 months for tax years beginning after January 1, 2016.

  6. Form 7004 may be filed electronically via the Modernized electronic Filing (MeF) System.

    1. Forms filed electronically are corrected using the same procedures as a manually transcribed document.

    2. Electronically filed Forms 7004 can be identified by File Location Code (first two digits of the DLN) 88, 93 or 92 for domestic filers, or 66 or 98 for foreign filers. Program Code 11710.

    3. Refer to IRM 3.42.4, IRS e-file for Business Tax Returns, for viewing forms filed via MeF.

  7. Return Code 5 will be edited on extensions for Form 1041 (bankruptcy estate only) . Return Code 5 will generate an automatic 6 month extension.

  8. Form 7004 will be numbered with one of four Tax Classes in the DLN based on the type of return:

    1. Tax Class 1 is for Form 1042 (MFT 12) and Form 8804 (MFT 08).

    2. Tax Class 2 is for Form 1041 series (MFT 05), and Form 1065 and Form 1065-B (both MFT 06) .

    3. Tax Class 3 is for Form 1120 series (MFT 02), Form 1066 (MFT 07), and Form 3520-A (MFT 42).

    4. Tax Class 5 is for Form 706GS(D) (MFT 78) and Form 706GS(T) (MFT 77).

3.12.212.3.1  (02-18-2016)
Section 01 - Form 7004

  1. Section 01 contains the following fields: See Exhibit 3.12.212-1 for Form 7004 locations for Field entries.

    Field Length Title Location
    RMIT 11 Remittance Line 8
    01NC 4 Name Control Name Line
    >>>> 4 Name Control Underprint  
    01TIN 9 Taxpayer Identification Number Identifying number block
    01TNT 1 TIN-Type End of TIN (SSN only)
    01TXP 6 Tax Period Edit to the left of the OMB number
    >>>> 2 Tax Period Underprint Present when the taxpayer's Tax Period month doesn't match the taxpayer's FYM
    01MFT 2 MFT Code Upper left margin
    01PL 3 5558 Plan Number Not present on Form 7004
    01RCD 8 Received Date IRS date stamp in center of form
    01TTX 16 Reserved Not transcribed - always zero filled
    01CRT 16 Reserved Not transcribed - always zero filled
    01CCC 1 Computer Condition Code Top center margin
    01RGC 1 Group Code Not present on Form 7004
    01RTC 2 Return Code Only present on extensions for Form 1120-F and Form 1041 (bankruptcy estate only) - edited in the right margin of line 1a
    01CAF 1 CAF Indicator No longer edited
    01NOT 1 Notice Code Not present on Form 7004

3.12.212.3.2  (10-31-2016)
RMIT - Remittance, Form 7004

  1. Form 7004 may carry a remittance. This field is not correctable.

  2. This field will be blank for non remittance forms.

3.12.212.3.3  (10-31-2016)
Field 01NC - Name Control, Form 7004

  1. Invalid Conditions:

    1. The second, third, or fourth character is not alpha, numeric, hyphen, or ampersand.

    2. The first position is not alpha or numeric.

    3. There are blanks between characters.

  2. Correction Procedures:

    1. If the name control is invalid or blank, check for transcription errors and enter the correct data in Field 01NC.

    2. If the name control cannot be determined, research using IDRS command codes INOLE, NAMEE, NAMEB and ENMOD. If correct name control is found, enter it in Field 01NC.

    3. After reviewing the research, if the name control cannot be determined, SSPND 320 to Entity Control.

    4. If IDRS is not available, SSPND 351.

3.12.212.3.4  (10-31-2016)
Field 01TNT - TIN-Type, Form 7004

  1. A 2 is generated in this field (indicating EIN) unless ISRP has transcribed a 0 to indicate that the TIN is an SSN.

  2. Invalid Condition:

    1. The entry is other than 0 (zero) or 2.

  3. Correction Procedures:

    1. Correct transcription and coding errors.

    2. Form 7004 MFT 78 only: If the TIN is formatted as an SSN and the extension request is a Form 7004 for Form 706-GS(D) (MFT 78), enter 0 in Field 01TNT.

    3. All others, enter 2 in Field 01TNT.

3.12.212.3.5  (10-31-2016)
Field 01TIN - Taxpayer Identification Number, Form 7004

  1. Invalid Conditions:

    1. The field is all zeroes or nines.

    2. If the TIN is an EIN, it begins with 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

    3. If the TIN is an SSN, it is other than numeric.

  2. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If no transcription error is found, examine the form and/or attachment for another TIN.

    3. Form 7004 MFT 78: GTSEC 01 and check Field 01TNT. If the TIN is formatted as an SSN, and the Form Code is 01, Form 706-GS(D), change Field 01TNT to 0 (zero).

    4. If another TIN cannot be found, correct per Error Code 004 instructions. See IRM 3.12.212.4.3.2.

3.12.212.3.6  (10-31-2016)
Field 01TXP - Tax Period, Form 7004

  1. The following Section gives correction procedures for Field 01TXP, Tax Period.

  2. This field contains the ending month and year of the Tax Period of the extension. The Tax Period is printed in year-month (YYYYMM) format (i.e., December 31, 2016 is printed 201612).

  3. Invalid Conditions:

    1. The Tax Period is later than the current processing date.

    2. Field 01TXP is less than 6 numeric digits.

    3. The last 2 digits are other than 01–12.

3.12.212.3.6.1  (10-31-2016)
Correction Procedures For Field 01TXP - Tax Period Ending, Form 7004

  1. Correct coding and transcription errors.

  2. The Tax Period is determined from the taxpayer's entry on line 5a. If the taxpayer has not made an entry on this line, the Tax Period is assumed to be 201612 and no Tax Period would be edited by Code and Edit.

  3. If the Tax Period cannot be determined from the document or attachments, and the name and a valid TIN are present, research and enter the correct data in Field 01TXP.

  4. If the correct Tax Period cannot be determined from research (i.e., no filing requirements present for the form on the extension or no account), SSPND 320 for Entity research.

  5. If the extension form is early filed, and

    1. The taxpayer indicates "Final Return" , SSPND 480. Attach Form 4227 and notate "Early filed final extension."

    2. If the extension is not for a final return, research to determine the correct Tax Period. If the month of the Tax Period the taxpayer is using is different than the Fiscal Year Month (FYM) found on Master File, follow correction procedures for Error Code 026. See IRM 3.12.212.4.7.2 and Exhibit 3.12.212-11.

    3. If the taxpayer is using the same month as the FYM found on Master File and:

      Tax Period is later than the current year/month by: Then
      One year or more, Change the Tax Period to the current fiscal or calendar year.

      Note:

      Review the received date/postmark date for timeliness based on the Tax Period correction. See IRM 3.12.212.1.11. If the change makes the request late, enter L in Field 01CCC and send a letter to notify the taxpayer.

      Less than one year, SSPND 480 and attach Form 4227 noting that the extension should be held and processed after the end of the Tax Period.
  6. Short period Forms 1120S due to termination of the S status are not due until the subsequent Form 1120 is due. If an extension for a short period Form 1120S is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , enter C in the Clear Code Field.

    Example:

    An extension for a short period Form 1120S with a tax period of 01/01/2016 to 06/30/2016 is not due until 04/15/2017 so long as the reason for the short period was due to termination of the "S" status.

3.12.212.3.7  (10-31-2016)
Field 01MFT - Master File Tax Code, Form 7004

  1. The MFT is a two position field that indicates the type of tax return for which an extension is being requested.

  2. It is edited in the top left margin of the Form 7004.

  3. Invalid Conditions:

    1. If the field is blank or other than two numeric digits.

    2. If DLN tax class is 1, Field 01MFT codes are other than 08 and 12.

    3. If DLN tax class is 2, Field 01MFT codes are other than 05 and 06.

    4. If DLN tax class is 3, Field 01MFT codes are other than 02, 07 and 42.

    5. If DLN tax class is 5, Field 01MFT codes are other than 77 and 78.

3.12.212.3.7.1  (10-31-2016)
Correction Procedures for Field 01MFT - MFT Code, Form 7004

  1. If the document has been numbered with the incorrect Tax Class, SSPND 610 to have the document renumbered.

    1. If the extension is for Form 8804 (MFT 08) or Form 1042 (MFT 12), the DLN tax class must be 1.

    2. If the extension is for the Form 1041 series, (MFT 05), Form 1065 or Form 1065-B (both MFT 06), the DLN tax class must be 2.

    3. If the extension is for Form 1066 (MFT 07), Form 1120 series (MFT 02), or Form 3520-A (MFT 42), the DLN tax class must be 3.

    4. If the extension is for Form 706-GS(T) (MFT 78) or Form 706-GS(D) (MFT 77), the DLN tax class must be 5.

  2. Extensions for Form 8612, Form 8613, Form 8725, Form 8831, Form 8876, Form 8924 and Form 8928 must be processed to NMF . See IRM 3.12.212.1.9

  3. Review the Form Code on lines 1a, 1b, 1c or 1d to determine the type of return being extended:

    If line 1a/1b/1c/1d Form Code is The extension is for Form Then enter in Field 01MFT
    01 706-GS(D) 78
    02 706-GS(T) 77
    03-07 1041 series 05
    08 1042 12
    09, 10 1065/1065-B 06
    11 1066 07
    12, 15-26, 34 1120 series 02
    27 3520-A 42
    31 8804 08

    Note:

    Return Code 5 must be present on extensions for Form 1041 for bankruptcy estate only.

  4. If the taxpayer has indicated multiple types of returns or has not made any indication, or the entry is illegible, and there is nothing on the extension or any attachment to indicate what type of return is being extended, research to find the entity's filing requirements.

    1. Enter the correct code in Field 01MFT based on the taxpayer's filing requirements.

    2. If unable to determine, or the taxpayer has no open filing requirements for any of the forms listed on the extension request, SSPND 211 and correspond with the taxpayer to find out what type of return they are trying to extend.

  5. Suspense Correction Procedures:

    1. If the taxpayer replies, enter the correct code in Field 01MFT based on the taxpayer's reply.

    2. If no reply, RJECT 640 to void the DLN and prepare the document for destruction.

3.12.212.3.8  (10-31-2016)
Field 01PL - Form 5558 Plan Number

  1. This field should be blank for Form 7004.

3.12.212.3.9  (10-31-2016)
Field 01RCD - Received Date, Form 7004

  1. Invalid Conditions:

    • The field is other than blank or eight numerics.

    • Valid format is other than YYYYMMDD.

    • The fifth and sixth digits are other than 01–12.

    • The seventh and eighth digits are not valid day designation and/or a valid day for the month.

    • The date is later than the current processing date.

    • The date is earlier than 01/01/1962 for Form 7004.

  2. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If the date is invalid and the date stamp on the extension is missing, invalid, illegible, or later than the process date, determine the Received Date according to the instructions in IRM 3.12.212.1.11.

    3. If the date is prior to 01/01/1962, SSPND 620. Attach Form 4227 stating "Non-ADP record" .

  3. For further information, refer to IRM 3.10.72, Receiving, Extracting, and Sorting, and IRM 3.11.212, Applications for Extension of Time to File.

3.12.212.3.10  (10-31-2016)
Field 01CCC - Computer Condition Code, Form 7004

  1. The entry for Field 01CCC is transcribed from the top center margin of the form.

  2. Invalid Condition:

    • Entry is other than L, W, or Y:

    Code Condition
    L Form 7004 denied extension request due to late filing
    W Short period and an acceptable reason is provided for the short period. (This will cause Error Code 026 to bypass ERS)

    Note:

    Use of CCC W will not bypass Unpostable checks on Tax Period unless TC 054 or TC 055 is posted in the entity.

    Y Reserved

    Reminder:

    CCC L does not cause generation of an automatic notification to the taxpayer; if CCC L is present, correspond to notify the taxpayer that the extension request was not approved. See IRM 3.12.212.2.7.

  3. Priority of codes is L, then W. If both CCC L and W are applicable, only edit CCC L.

  4. Correction procedures - check for transcription errors, and correct Field 01CCC and the form as appropriate.

3.12.212.3.11  (02-18-2016)
Field 01RGC - Group Code

  1. This field should be blank for Form 7004.

3.12.212.3.12  (10-31-2016)
Field 01RTC - Return Code, Form 7004

  1. The Return Code is used by the master file computer program to determine the correct return due date for generating the extension date.

  2. Return Code 06 or 07 must be present when the extension is for Form 1120-F (Form Code 15 on line 1a, 1c, or 1d).

    Reminder:

    Only OSPC may process Form 7004 for Form 1120-F. If found in another campus, SSPND 650 and attach Form 4227 indicating "transship to OSPC" .

  3. Return Code 05 must be present when the extension is for Form 1041 for bankruptcy estate only (Form Code 03).

3.12.212.3.12.1  (10-31-2016)
Invalid Conditions For Field 01RTC - Return Code, Form 7004

  1. If DLN Tax Class is 1 or 5, Field 01RTC has an entry.

  2. This field is other than 05, 06, 07 or blank.

  3. If Return Code is 06 or 07 and Tax Class is 3, the File Location Code is other than 60.

  4. If Return Code is 05, Field 01MFT is other than 05.

3.12.212.3.12.2  (10-31-2016)
Correction Procedure For Field 01RTC - Return Code, Form 7004

  1. Correct coding and transcription errors.

  2. The Return Code for Form 7004 is edited in the right margin of line 1a.

  3. A Return Code must be present if the extension is for a Form 1120-F and for Form 1041 (bankruptcy estate only). If the extension is for any other type of tax return, delete the entry in Field 01RTC and circle any Return Code edited on the document.

  4. If the extension is for a Form 1120-F, correct the Return Code in Field 01RTC and on the document:

    1. If the box on line 2 is checked, enter 06 in Field 01RTC.

    2. If the box on line 2 is not checked, enter 07 in Field 01RTC.

  5. Tax Class in the DLN must be 3 if the extension request is for Form 1120-F. If the Tax Class is incorrect, SSPND 610 to have the document renumbered with the correct Tax Class.

  6. If the Return Code is 06 or 07 and Tax Class is 3, the File Location Code (the first 2 digits of the DLN) must be 60 and the form must be processed at OSPC.

    1. If other than OSPC, SSPND 650 and attach Form 4227 indicating "Transship to OSPC" .

    2. OSPC Only—If the File Location Code is not "60" , SSPND 610 to have the document renumbered.

  7. If the extension is for Form 1041 (bankruptcy estate only), enter 05 in Field 01RTC.

3.12.212.3.13  (10-31-2016)
Field 01CAF - Centralized Authorization File (CAF) Indicator

  1. The CAF Indicator is no longer edited by Document Perfection. If an entry displays in Field 01CAF, delete the entry.

3.12.212.3.14  (10-31-2016)
Field 01NOT - Notice Code

  1. This field should be blank on Form 7004.

3.12.212.4  (01-01-2011)
Error Codes for Form 7004

  1. This sub-section contains instructions for resolving specific error codes related to Form 7004.

3.12.212.4.1  (02-18-2016)
Error Code 002 - Name Control Mismatch, Form 7004

  1. The screen display for Error Code 002:

    AFD Field Name
    CL Clear Code
    01NC Name Control/Check Digit
    >>>> Name Control Underprint
    01TIN Taxpayer Identification Number
    01TXP Tax Period

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