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3.12.251  Corporation Income Tax Returns (Cont. 2)

3.12.251.13 
Section 09 Data - Form 1120

3.12.251.13.1  (01-01-2016)
Section 09 Field Errors

  1. Correctable Section 09 fields are listed below:

    Field Designator Maximum Length Valid Entry Title Location - Form 4626
    0903 15 Dollars & cents
    Positive
    Total Pre-adjustment Alternative Minimum Taxable Income (AMTI) line 3
    0904E 15 Dollars & cents
    Positive or Negative
    Adjusted Current Earnings line 4e
    0906 15 Dollars & cents
    Positive
    Alternative Tax Net Operating Loss Deduction line 6
    0911 15 Dollars & cents
    Positive
    Alternative Minimum Foreign Tax Credit line 11
    09VER 15 Dollars & cents
    Positive
    Alternative Minimum Tax Verified Manually computed amount of Alternative Minimum Tax

    Note:

    Field 09VER - This field is not transcribed. Field 09VER will be used to enter the manually computed amount of Alternative Minimum Tax by the ERS tax examiner.

  2. Invalid Condition - Section 09 field errors will display if:

    1. A field is not all numeric

    2. An entry exceeds the maximum field length

    3. A "positive only" field is negative

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If a "positive only" field is negative, delete the field.

3.12.251.14  (01-01-2016)
Section 10 Data-Form 1120

  1. This section contains instructions for correcting Section 10 Field Errors.

  2. Section 10 contains data from Capital Gains and Losses (Form 1120 Schedule D).

  3. All fields in this section are in dollars only and 15 characters long.

3.12.251.14.1  (01-01-2016)
Section 10 Data-Form 1120

  1. Correctable Section 10 fields are listed below:

    Field Designator Field Title Location on Schedule D Valid Entry
    101AD Line 1a Short Term Proceeds (Sales Price) Part I, Line 1a, Column (d) Positive Only
    101AE Line 1a Short Term Cost or other basis Part I, Line 1a, Column (e) Positive Only
    101BD Line 1b Short Term Proceeds (Sales Price) Part I, Line 1b, Column (d) Positive Only
    101BE Line 1b Short Term Cost or other basis Part I, Line 1b, Column (e) Positive Only
    101BG Line 1b Short Term Adjustments to gain or loss Part I, Line 1b, Column (g) Positive or Negative
    1002D Line 2 Short Term Proceeds (Sales Price) Part I, Line 2, Column (d) Positive Only
    1002E Line 2 Short Term Cost or other basis Part I, Line 2, Column (e) Positive Only
    1002G Line 2 Short Term Adjustments to gain or loss Part I, Line 2, Column (g) Positive or Negative
    1003D Line 3 Short Term Proceeds (Sales Price) Part I, Line 3, Column (d) Positive Only
    1003E Line 3 Short Term Cost or other basis Part I, Line 3, Column (e) Positive Only
    1003G Line 3 Short Term Adjustments to gain or loss Part I, Line 3, Column (g) Positive or Negative
    108AD Line 8a Long Term Proceeds (Sales Price) Part II, Line 8a, Column (d) Positive Only
    108AE Line 8a Long Term Cost or other basis Part II, Line 8a, Column (e) Positive Only
    108BD Line 8b Long Term Proceeds (Sales Price) Part II, Line 8b, Column (d) Positive Only
    108BE Line 8b Long Term Cost or other basis Part II, Line 8b, Column (e) Positive Only
    108BG Line 8b Long Term Adjustments to gain or loss Part II, Line 8b, Column (g) Positive or Negative
    1009D Line 9 Long Term Proceeds (Sales Price) Part II, Line 9, Column (d) Positive Only
    1009E Line 9 Long Term Cost or other basis Part II, Line 9, Column (e) Positive Only
    1009G Line 9 Long Term Adjustments to gain or loss Part II, Line 9, Column (g) Positive or Negative
    1010D Line 10 Long Term Proceeds (Sales Price) Part II, Line 10, Column (d) Positive Only
    1010E Line 10 Long Term Cost or other basis Part II, Line 10, Column (e) Positive Only
    1010G Line 10 Long Term Adjustments to gain or loss Part II, Line 10, Column (g) Positive or Negative
    10014 Capital gain distributions Part II, Line 14 Positive Only
  2. Invalid Condition - Section 10 field errors will display if a field is not all numeric.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

3.12.251.15  (01-01-2016)
Section 11 Data - Form 1120

  1. This section contains instructions for correcting Section 11 Field Errors.

  2. Section 11 contains data from the Balance Sheets per Books (Form 1120 Schedule L).

  3. Fields 11DAE, 11CSE, AND 11TLE must be positive only. All other fields may be positive or negative.

  4. All fields in this section are transcribed in dollars only.

  5. When the balance sheet should not be transcribed, (amended, final, etc.), Code-and-Edit will cross out the balance sheet.

3.12.251.15.1  (01-01-2016)
Section 11 Field Errors

  1. Correctable Section 11 fields are listed below:

    Field Designator Field Length Valid Entry Title Form 1120 Schedule L
    11TNE 15 Dollars only
    Positive or Negative
    Trade Notes & Accounts Receivable line 2a(c)
    11LTE 15 Dollars only
    Positive or Negative
    Loans to Shareholders (Ending) line 7(d)
    11DAE 15 Dollars only
    Positive
    Depreciable Assets Less Depreciation Ending line 10b(d)
    11TAB 15 Dollars only
    Positive or Negative
    Total Assets (Beginning) line 15(b)
    11TAE 15 Dollars only
    Positive or Negative
    Total Assets (Ending) line 15(d)
    11CLO 15 Dollars only
    Positive or Negative
    Current Liabilities Other (Ending) line 18(d)
    11LFE 15 Dollars only
    Positive or Negative
    Loans from Shareholders (Ending) line 19(d)
    11OLE 15 Dollars only
    Positive or Negative
    Other Liabilities (Ending) line 21(d)
    11CSE 15 Dollars only
    Positive
    Capital Stock (Ending) line 22b(d)
    11REB 15 Dollars only
    Positive or Negative
    Retained Earnings (Beginning) line 25(b)
    11TLE 15 Dollars only
    Positive
    Total Liabilities and Equity (Ending) line 28(d)
  2. Invalid Condition - Section 11 field errors will display if a field is not all numeric.:

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If a "positive only" field is negative, delete the field.

3.12.251.16  (01-01-2016)
Section 12 Data - Form 1120

  1. This section contains instructions for correcting Section 12 Field Errors.

  2. Section 12 contains data from Form 8050, Direct Deposit of Corporate Tax Refund.

    Note:

    Direct Deposit refunds are not valid for prior year returns.

  3. Form 8050 is not edited. The taxpayer's information must be processed as reported.

3.12.251.16.1  (01-01-2016)
Section 12 Field Errors

  1. Section 12 fields are listed below:

    Field Designator Field Length Title Location
    12RTN 9 Routing Transit Number (RTN) Form 8050
    12DAN 17 Depositors Account Number (DAN) Form 8050
    12DDC 2 Direct Deposit Code Computer Generated
    12TDA 1 Type Depositor Account Form 8050

3.12.251.16.2  (01-01-2016)
Field 12RTN - Routing Transit Number (RTN)

  1. Field 12RTN is transcribed from line 1, Form 8050. Field 12RTN is a 9 digit numeric or blank field.

  2. Invalid Condition - Field 12RTN is invalid if present and the first two digits are not:

    • Between 01 through 12 or

    • Between 21 through 32

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the information on the return is not valid, delete Field 12RTN.

3.12.251.16.3  (01-01-2016)
Field 12DAN - Depositor Account Number (DAN)

  1. Field 12DAN is transcribed from line 2, Form 8050. Field 12DAN may be up to 17 characters.

  2. Invalid Condition - Field 12DAN is invalid if:

    1. A Depositor Account Number is present and a character is not numeric, alpha, hyphen or space.

    2. Field 12DAN is present but Field 12TDA is not present.

  3. Correction Procedures:

    1. Correct any transcription errors.

    2. Check line 2 of Form 8050.

      If Then
      The account number is valid (the entry contains only numeric, alpha, hyphen or space) GTSEC 12 and refer to Field 12TDA instructions below.
      Enter a valid code in Field 12TDA.
      The account number is not valid Delete Field 12DAN

3.12.251.16.4  (01-01-2016)
Field 12DDC - Direct Deposit Code

  1. Field 12DDC is a computer generated field and is not correctable. The Direct Deposit Code is included in the Section 12 screen display for information only.

  2. Field 12DDC may be blank or it may contain a two-digit number that's used by the Master File to generate a notice to the taxpayer.

3.12.251.16.5  (01-01-2016)
Field 12TDA - Type Depositor Account

  1. Field 12TDA is transcribed from line 3, Form 8050. Field 12TDA may be blank or a one-digit alpha code ("C" or "S" ).

  2. Invalid Condition - Field 12TDA is invalid if present and the entry is not:

    1. "C" for Checking, or

    2. "S" for Savings

  3. Correction Procedures:

    1. Correct any transcription errors.

    2. If both or neither box (Checking or Savings) is marked, enter "C" in Field 12TDA.

3.12.251.17  (01-01-2016)
Section 14 Data - Form 1120

  1. This section contains instructions for correcting Section 14 Field Errors.

  2. Section 14 contains data from Form 1120, Schedule N, Foreign Operations of U.S. Corporations.

  3. Section 14 data is valid for tax periods beginning after 199912.

3.12.251.17.1  (01-01-2016)
Section 14 Fields Errors

  1. Correctable Section 14 fields are listed below:

    Field Designator Field Length Title Location
    14Q01 1 Disregarded Entity Schedule N, line 1a
    14Q02 3 Number of Forms 8865 Schedule N, line 2
    14Q03 1 Direct/Indirect Interest Schedule N, line 3
    14Q4A 1 Controlled Foreign Corporation Schedule N, line 4a
    14Q4B 3 Number of Forms 5471 Schedule N, line 4b
    14Q05 1 Foreign Trust Distribution Schedule N, line 5
    14Q6A 1 Foreign Country Financial Account Schedule N, line 6a;
    14Q6B 2 Foreign Country Code Schedule N, line 6b;
    14Q7A 1 Extraterritorial Income Exclusion (EI) Schedule N, line 7a;
    14Q7B 3 Number of Forms 8873 Schedule N, line 7b
    14Q7C 11 Total EI Exclusion Schedule N, line 7c

3.12.251.17.2  (01-01-2016)
Field 14Q01 - Disregarded Entity

  1. Field 14Q01 is transcribed from the left of Form 1120, Schedule N, line 1.

  2. Invalid Condition - Field 14Q01 is invalid if it is not blank or an entry other than "1" , "2" or "3" is present.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

      If Then
      Form 1120, Schedule N, line 1 box is "yes" Enter "1" in Field 14Q01
      Form 1120, Schedule N, line 1 box is "no" Enter "2" in Field 14Q01
      Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q01
      Neither box is checked Delete Field 14Q01

3.12.251.17.3  (01-01-2016)
Field 14Q02 - Number of Forms 8865

  1. Field 14Q02 is transcribed from the dotted line area of Form 1120, Schedule N, line 2.

  2. Invalid Condition - Field 14Q02 is invalid if it is not all blank or numeric 001 through 999.

  3. Correction Procedure - Correct coding and transcription errors and misplaced entries.

3.12.251.17.4  (01-01-2016)
Field 14Q03 - Direct/Indirect Interest

  1. Field 14Q03 is transcribed from the left of line Form 1120, Schedule N, line 3.

  2. Invalid Condition - Field 14Q03 is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

      If Then
      Form 1120, Schedule N, line 3 box is "yes" Enter "1" in Field 14Q03
      Form 1120, Schedule N, line 3 box is "no" Enter "2" in Field 14Q03
      Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q03
      Neither box is checked Delete Field 14Q03

3.12.251.17.5  (01-01-2016)
Field 14Q4A - Controlled Foreign Corporation

  1. Field 14Q4A is transcribed from the left of Form 1120, Schedule N, line 4a.

  2. Invalid Condition - Field 14Q4A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    If Then
    Form 1120, Schedule N, line 4a box is "yes" Enter "1" in Field 14Q4A
    Form 1120, Schedule N, line 4a box is "no" Enter "2" in Field 14Q4A
    Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q4A
    Neither box is checked Delete Field 14Q4A
  4. If Form 1120, Schedule N, line 4a is checked "yes" or Forms 5471 are attached, GTSEC 03. Enter "2" in Field 03ADC and in the margin to the left of “Deductions” section of the return following "2" .

3.12.251.17.6  (01-01-2016)
Field 14Q4B - Number of Forms 5471

  1. Field 14Q4B is a 3 digit field. It is transcribed from the dotted line area of Form 1120, Schedule N, line 4b.

  2. Invalid Condition - Field 14Q4B is invalid if it is not blank or numeric 001 through 999.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. Enter preceding zeros if a one-digit or two-digit number is shown on the return. Example: "5" must be entered as "005."

3.12.251.17.7  (01-01-2016)
Field 14Q05 - Foreign Trust Distribution

  1. Field 14Q05 is transcribed from the left of Form 1120, Schedule N, line 5.

  2. Invalid Condition - Field 14Q05 is invalid if it is not all blank or an entry other than "1" , "2" or "3" is present.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

      If Then
      Form 1120, Schedule N, line 5 box is "yes" Enter "1" in Field 14Q05
      Form 1120, Schedule N, line 5 box is "no" Enter "2" in Field 14Q05
      Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q05
      Neither box is checked Delete Field 14Q05

3.12.251.17.8  (01-01-2016)
Field 14Q6A - Foreign Country Financial Account

  1. Field 14Q6A is transcribed from the left of Form 1120, Schedule N, line 6a.

  2. Invalid Condition - Field 14Q6A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    If Then
    The Foreign Country Financial Account box is "yes" Enter "1" in Field 14Q6A
    The Foreign Country Financial Account box is "no" Enter "2" in Field 14Q6A
    Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q6A
    Neither box is checked Delete Field 14Q6A

3.12.251.17.9  (01-01-2016)
Field 14Q6B - Foreign Country Code

  1. Field 14Q6B is transcribed from the left of Form 1120, Schedule N, line 6b.

  2. Invalid Condition

    • Field 14Q6B is invalid if present and the code is not a valid Foreign Country Code.

  3. Correction Procedures:

    1. If Then
      A foreign country is present on Form 1120, Schedule N, line 6b, or See Document 7475 for a list of the valid two-digit Foreign Country Codes.
      Enter the appropriate code in Field 14Q6B and to the left of line 6b or line 6.
      Unable to determine the Foreign Country Code Delete Field 14Q6B.

3.12.251.17.10  (01-01-2016)
Field 14Q7A - Extraterritorial Income Exclusion

  1. Field 14Q7A is transcribed from the left of Form 1120, Schedule N, line 7a.

  2. Invalid Condition - Field 14Q7A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

      If Then
      Form 1120, Schedule N, line 7a box is "yes" Enter "1" in Field 14Q7A
      Form 1120, Schedule N, line 7a box is "no" Enter "2" in Field 14Q7A
      Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q7A
      Neither box is checked Delete Field 14Q7A

3.12.251.17.11  (01-01-2016)
Field 14Q7B - Number of Forms 8873

  1. Field 14Q7B is transcribed from the dotted line area of Form 1120, Schedule N, line 7b.

  2. Invalid Condition - Field 14Q7B is invalid if it is not all blank or an entry other than numeric 001 through 999 is present.

  3. Correction Procedures - Correct coding and transcription errors and misplaced entries.

3.12.251.17.12  (01-01-2016)
Field 14Q7C - Total Extraterritorial Income Exclusion

  1. Field 14Q7C is transcribed from the dotted line area of Form 1120, Schedule N, line 7c, in dollars only. Total Extraterritorial Income Exclusion can be a positive or negative amount.

  2. Invalid Condition - Field 14Q7C is invalid if it is not blank or all numeric.

  3. Correction Procedures - Correct coding and transcription errors and misplaced entries.

3.12.251.18  (01-01-2016)
Sections 15- 18 Data - Form 1120

  1. This section contains instructions for correcting Sections 15- 18 Field Errors.

  2. Computer generated fields are described under the appropriate Error Code(s).

  3. Sections 15- 18 contain data from Form 4136, Computation of Credit for Federal Tax on Fuels. All fields that represent money amounts are transcribed in dollars and cents and must be positive. Each of these fields are 15 characters in length and must be numeric only.

  4. ISRP enters the Form 4136 information by inputting the specific credit reference number (CRN) the taxpayer indicates on his Form 4136. All fields that represent CRNs are three characters in length and must be numeric only.

    Example:

    Taxpayer reports a credit of $4,500.00 on line 3a, and $600.00 on line 5b, Form 4136. Section 15 will show the amounts transcribed from line 3a as 15A01 $4,500.00 with 15C01 as 360 (CRN) and transcribed 15A02 as $600.00 with 15C02 as 355 (CRN). In this scenario only Screen 15 would apply since only two credits were reported.

  5. Screens 15–18 could generate on an account if the taxpayer claimed as many as 43 different credits. Screen 15 reports the first 12 credits transcribed, Screen 16 will report the next twelve, Screen 17 the next 12 and Screen 18 will report the last seven credits. The same applies to the CRNs reported.

3.12.251.18.1  (01-04-2016)
Section 15-18 Field Errors

  1. Correctable Sections 15-18 fields are listed below:

    Field Designator Field Title
    15TG> Total Fuel credits Form 4136 computer generated
    15A01 First Credit Amount Reported
    15C01 First CRN for First Credit amount Reported
    15A02-15A12 Second through twelfth credit amounts reported.
    15C02-15C12 Second through twelfth CRN reported
    16A01–16A12 Thirteenth through twenty-fourth Credit Amounts Reported.
    16C01-16C12 Thirteenth through twenty-fourth CRN Reported
    17A01-17A12 Twenty-fifth through thirty-sixth Credit Amount Reported
    17C01-17C12 Twenty-fifth through thirty -sixth CRN Reported
    18A01-18A07 Thirty-seventh through forty-third Credit Amount Reported
    18C01-18C07 Thirty-seventh through forty-third CRN Reported
  2. Invalid Condition - Sections 15–18 field errors will display if:

    • A money field is not all numeric

    • An entry exceeds the maximum length.

    • A "positive only" field is negative.

    Note:

    Refer to Error Code 122 for Section 15-18 tax period checks. See IRM 3.12.251.24.25

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If a "positive only" field is negative, delete the field.

  4. Current valid Credit Reference Numbers with their valid tax periods are listed below:

    CRN Valid Tax Periods
    306 200601 and later
    307 200601 and later
    309 200601 and later
    310 200601 and later
    318 199708 and prior
    324 199701 and later
    346 199801 and later
    347 199801 and later
    350 199801 and later
    352 199401 thru 200708
    353 All
    354 All
    355 All
    356 199301 thru 200511
    357 199301 thru 200511
    359 199301 thru 200511
    360 All
    361 199401 thru 200708
    362 199401 and later
    363 199301 thru 200511
    369 199401 and later
    375 199301 thru 200511
    376 199301 thru 200511
    377 199301 thru 200511 Or after 200711
    388 200501 and later
    390 200501 and later
    393 200501 thru 201211
    394 200501 thru 201211
    395 200501–200708
    411 200601 and later
    412 200601 and later
    413 200601 and later
    414 200601 and later
    415 200601 and later
    416 200601 and later
    417 200601 and later
    418 200601 and later
    419 200610 and later
    420 200610 and later
    421 200610 and later
    422 200610 and later
    423 200610 and later
    424 200610 and later
    425 200610 and later
    426 200610 and later
    427 200610 and later
    428 200610 and later
    429 200610 and later
    430 200610 and later
    431 200610 and later
    432 200610 and later
    433 200510 and later
    434 200510 and later
    435 200810 and later
    436 200810 and later
    437 200810 and later
  5. For tax periods 2000 and prior, use the conversion chart below:

    If Tax Year is 2000 or prior and CRN is Then Convert to CRN
    301 362
    302 356
    303 360
    304 361
    305 353
    307 324
    310 369
    312 359

3.12.251.19  (11-14-2016)
Section 21 Data- Form 1120 - Small Employer Health Insurance Premiums

  1. Section 21 contains information reported on Form 8941, Credit for Small Employer Health Insurance Premiums.

  2. Beginning in TY 2013 this section became required on returns in the Form 1120 series when this credit is being claimed, however there are several exceptions to that. See IRM 3.12.251.24.36(3) d. for the exceptions. Error Code 177 for the Parent Form 1120 only was added beginning in TY 2013 (PY2014). Additional forms in the 1120 series will continue to be coded with an MSC of 76 when a Credit from this form is being claimed and the form is not attached. There are now two error codes associated with this form. They are Error Code 124, Consistency Error and Error Code 177, Math error. Both of these error codes are applicable to the Form 1120 (Parent only).

  3. All fields in Section 21 are numeric only. Fields 21LN1, 2102, 2113, and 2114 are 4 characters only. Field 21LNB is 9 characters only. All other fields are 15 character dollar only fields

    Exception:

    Form 8941 had one new field for TY2015, (PY2016), titled as SHOP Market Check Box. At the top of Form 8941 the new Line A now asks filers of the Form 8941 the following question: Did you pay premiums during your tax year for employee health insurance coverage you provided through a Small Business Health Options Program (SHOP) Marketplace (or do you qualify for an exception to this requirement)? When there is an entry in Field 2116 there must be either a "1" if the question is answered Yes, a "2" if answered No, a "3" if Both boxes are checked and a "0 (zero)" will indicate that Neither box has been checked. For a list of the exceptions please IRM 3.12.251.24.37.

    Note:

    For TY 2011 and prior revisions, if a significant amount is present on Line 1 it is to be entered in Field 21LN1.

  4. All fields in Section 21 must be positive.

  5. Credit from this form is reported on Form 3800, Line 4H.

  6. Listed below are all valid fields:

    Field Designator Maximum Length Title Location Form
    21CBX 1 (SHOP) Market Check Box Line A
    21BXC 1 Credit Period Limitation Check Box Line C
    21LNB 9 Taxpayer's Identifying Number Line B
    21LN1 4 Number of Employees Line 1
    2102 4 Number of Full Time Employees Line 2
    2103 15 Average Annual Wages Line 3
    2104 15 Health Insurance Premiums Paid Line 4
    2105 15 Premiums You Would Have Paid Line 5
    2110 15 Premium Subsidies Paid Line 10
    2113 4 Number of Employees With Premiums Paid Line 13
    2114 4 Number of Full Time Employees With Premiums Paid Line 14
    2115 15 Credit for small employer health insurance premiums from partnerships, S corporations, cooperatives, estates, and trusts Line 15
    2116 15 Sum of 12 and 15 Line 16
    2116V 15 Verified Amount of Line 16 Line 16
  7. Field Errors will display for this section whenever non-numeric characters are entered into any field. Field 2101B cannot be all zeros.

  8. Correct coding and transcription errors and misplaced entries.

  9. Field 21CBX and Field 21BXC - Valid entries include:

    • 0 - no boxes checked.

    • 1 -" Yes" box checked.

    • 2 - "No" box checked.

    • 3 - Multiple boxes are checked.

  10. IRM 3.12.251.24.37 for Error Code 177 procedures.

3.12.251.20  (01-01-2016)
Section 22 Data - Form 1120 - New Hire Retention Credit

  1. Section 22 data is transcribed from Form 5884-B, New Hire Retention Credit.

  2. This section is not required.

  3. Field 2210 should be 15 numeric digits, dollars only and positive only.

  4. Field 2211 should be 7 numeric positive digits, not dollar field.

  5. Listed below are all valid fields:

    Field Designator Maximum Length Title Location
    2210 15 Total of Line 9, columns (a) through (c) Line 10
    2211 7 Number of retained workers for whom receiving credit Line 11
  6. Field Errors will display for this section whenever non-numeric characters are entered into any field.

  7. Correct coding and transcription errors and misplaced entries.

  8. If correct information is not available, delete the entry.

3.12.251.21  (11-14-2016)
Section 23 Data - Form 1120

  1. Listed below are the fields contained in Section 23. Data in this section is from Form 3800, Parts I, II, and a portion of Part III.

    Field Designator Maximum Length Title Location
    23001 15 General business credit Part I, Line 1
    23002 15 Passive activity credits Part I, Line 2
    23003 15 Passive activity credits allowed Part I, Line 3
    23004 15 Carryforward of general business credits Part I, Line 4
    23005 15 Carryback of general business credits Part I, Line 5
    2310B 15 Certain Allowable Credits Part 1, Line 10b
    2316B 15 For a corporation electing to accelerate the research credit ERS Input Only
    23022 15 Amount for form 8844 Part III, Line 3
    23024 15 Passive activity credit allowed Part II, Line 24
    23028 15 Add lines 17b and 26 Part II, Line 28
    23030 15 Enter the general business credit Part II, Line 30
    23031 15 ) Enter the total eligible small business credits allowed (2012 and 2011 only)
    Reserved (2016 through 2013
    Part II, Line 31
    23032 15 Passive activity credits Part II, Line 32
    23033 15 Passive activity credits allowed Part II, Line 33
    23034 15 Carryforward of business credits Part II, Line 34
    23035 15 Carryback of business credits Part II, Line 35
    2301A 15 Investment Credit Part III, Line 1a
    2301B 15 Reserved Part III, Line 1b
    2301C 15 Credit for increasing research activities Part III, Line 1c
    2301D 15 Low-Income housing credit Part III, Line 1d
    2301E 15 Disabled access credit Part III, Line 1e
  2. Any time there is a credit claimed of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ that should be or is claimed on the Form 3800, all three pages of the Form 3800 must be present. C&E will correspond when all pages are not attached. For additional guidance refer to IRM 3.12.251.24.35.

  3. Correction Procedures- correct coding and transcription errors, and misplaced entries.

  4. Verify the credit is valid for the tax period on the return.

3.12.251.21.1  (01-01-2016)
Field 2301E - Disabled Access Credit - (Form 8826)

  1. Description:

    • Field 2301E is transcribed from Part III, Line 1e on Form 3800, General Business Credit.

    • Cannot be more than ≡ ≡ ≡ ≡

3.12.251.22  (01-01-2016)
Section 24 Data - Form 1120

  1. Listed below are the fields contained in Section 24. Data in this section is from Form 3800, a portion of Part III:

    Field Designators Maximum Length Title Location
    2401F 15 Renewable electricity production credit Part III, Line 1f
    2401G 15 Indian employment credit Part III, Line 1g
    2401H 15 Orphan drug credit Part III, 1h
    2401I 15 New markets credit Part III, Line 1i
    2401J 15 Credit for small employer pension plan startup costs Part III, Line 1j
    2401K 15 Credit for employer-provided child care facilities and services Part III, Line 1k
    2401L 15 Biodiesel and renewable diesel fuels credit Part III, Line 1l
    2401M 15 Low sulfur diesel fuel production credit Part III, Line 1m
    2401N 15 Distilled spirits credit Part III, Line 1n
    2401O 15 Nonconventional source fuel credit Part III, Line 1o
    2401P 15 Energy efficient home credit Part III, Line 1p
    2401Q 15 Energy efficient appliance credit Part III, Line 1q
    2401R 15 Alternative motor vehicle credit Part III, Line 1r
    2401S 15 Alternative fuel vehicle refueling property credit Part III, Line 1s
    2401T 15 Reserved Part III, Line 1t
    2401U 15 Mine rescue team training credit Part III, Line 1u
    2401V 15 Agricultural chemicals security credit Part III, Line 1v
    2401W 15 Credit for employer differential wage payments Part III, Line 1w
  2. Any time there is a credit claimed of ≡ ≡ ≡ ≡ ≡ ≡ that should be or is claimed on the Form 3800, all three pages of the Form 3800 must be present. C&E will correspond when all pages are not attached. For additional guidance refer to IRM 3.12.251.24.35.

  3. Correction Procedures - correct coding and transcription errors and misplaced entries.

  4. Verify the credit is valid for the tax period on the return.

3.12.251.22.1  (01-01-2016)
Field 2401J - Credit for Small Employer Pension Plan Startup Costs (Form 8881)

  1. Description:

    • Field 2401J is transcribed from Part III, Line 1j on Form 3800, General Business Credit.

    • The credit is valid from 200201 to present.

    • Cannot be more than ≡ ≡ .

3.12.251.22.2  (01-01-2016)
Field 2401K - Credit for Employer-Provided Child Care Facilities and Services (Form 8882)

  1. Description:

    • Field 2401K is transcribed from Part III, Line 1k on Form 3800.

    • The credit is valid from 200201 to present.

3.12.251.22.3  (01-01-2016)
Field 2401L - Biodiesel and Renewable Diesel Fuels Credit (Form 8864)

  1. Description:

    • Field 2401L is transcribed from Part III, Line 1l on Form 3800.

    • The credit is valid from 200401 to present.

3.12.251.22.4  (01-01-2016)
Field 2401M - Low Sulfur Diesel Fuel Production Credit (Form 8896)

  1. Description:

    • Field 2401M is transcribed from Part III, Line 1m on Form 3800.

    • The credit is valid from 200401 to present.

3.12.251.22.5  (01-01-2016)
Field 2401N - Distilled Spirits Credit (Form 8906)

  1. Description:

    • Field 2401N is transcribed from Part III, Line 1n on Form 3800.

    • The credit is valid from 200508 to present.

3.12.251.22.6  (01-01-2016)
Field 2401O - Nonconventional Source Fuel Credit (Form 8907)

  1. Description:

    • Field 2401O is transcribed from Part III, Line 1o on Form 3800.

    • The credit is valid from 200508 to present.

3.12.251.22.7  (01-01-2016)
Field 2401R - Alternative Motor Vehicle Credit (Form 8910)

  1. Description:

    • Field 2401R is transcribed from Part III, Line 1r on Form 3800.

    • The credit is valid from 200508 to present.

    Note:

    Valid in service dates must be after 2/17/09.

3.12.251.22.8  (01-01-2016)
Field 2401S - Alternative Fuel Vehicle Refueling Property Credit (Form 8911)

  1. Description:

    • Field 2401S is transcribed from Part III, Line 1s on Form 3800.

    • The credit is valid from 200508 to present.

3.12.251.22.9  (01-01-2016)
Field 2401T - (PY ONLY) - Credits for Affected Midwestern Disaster Area Employers (Form 5884-A)

  1. Description:

    • Field 2401T is transcribed from Form 3800, Part III, Line 1t on Form 3800 for (2009 and 2008). It is not applicable for (2007). It is transcribed from Line 1aa for (2006) and Line 1z for (2005).

    • The valid years for the Form 5884–A credit is 2009 and 2008.

    • Employers Affected by Hurricane Katrina, Rita, or Wilma are the valid credits for 2006 and 2005.

    • If an EIN is present on Form 3800, Page 3, Column (b), do not correspond. The credit is from a passthrough entity and the form is not required.

3.12.251.22.10  (02-09-2016)
Field 2401U-- Mine Rescue Team Training Credit - Form 8923

  1. Description:

    • Form 3800, Part III, Line 1u or Form 1120 (TY2011 and later), ((Form 3800 Part 1, Line u for TYs 2010, 2009 and 2008.), (Part i, Line v for TY2007, Part 1, Line y for TY 2006) not valid for tax years prior to 2006.

    • If an EIN is present on Form 3800, Page 3, Column (b), do not correspond. The credit is from a passthrough entity and the form is not required.

3.12.251.22.11  (01-01-2016)
Field 2401V - Agricultural Chemicals Security Credit (Form 8931)

  1. Description:

    • Field 2401V is transcribed from Part III, Line 1v on Form 3800.

    • The credit is valid from 200805 to present.

    • Cannot be more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

3.12.251.22.12  (01-01-2016)
Field 2401W - Credit for Employer Differential Wage Payments (Form 8932)

  1. Description:

    • Field 2401W is transcribed from Part III, Line 1w on Form 3800.

    • The credit is valid from 200901 to present.

3.12.251.23  (11-14-2016)
Section 25 Data - Form 1120

  1. Listed below are the fields contained in Section 25. Data in this section is from Form 3800, a portion of Part III:

    Field Designators Maximum Length Title Location
    2501X 15 Carbon dioxide sequestration credit Part III, Line 1x
    2501Y 15 Qualified plug-in electric drive motor vehicle credit Part III, Line 1y
    2501Z 15 Qualified plug-in electric vehicle credit Part III, Line 1z
    251AA 15 New Hire Retention Credit Part III, Line 1aa

    Note:

    Valid March 19, 2010 through December 31, 2010.

    251BB 15 General credits from an electing large partnership Part III, Line 1bb
    251ZZ 15 Other Part III, Line 1zz
    2504A 15 Investment credit Part III, Line 4a
    2504B 15 Work opportunity credit Part III, Line 4b
    2504C 15 Alcohol and cellulosic biofuel fuels credit (Biofuel Producers) Part III, Line 4c
    2504D 15 Low-income housing credit Part III, Line 4d
    2504E 15 Renewable electricity, refined coal, and Indian coal production credit Part III, Line 4e
    2504F 15 Credit for employer social security and Medicare taxes paid on certain employee tips Part III, Line 4f
    2504G 15 Qualified railroad track maintenance credit Part III, Line 4g
    2504H 15 Credit for small employer health insurance premiums Part III, Line 4h
    2504I 15 Increasing Research Activities (Form 6765) Part III, Line 4i
    2504J 15 Reserved Part III, Line 4j
    2504Z 15 Other Part III, Line 4z
  2. Any time there is a credit claimed of ≡ ≡ ≡ ≡ ≡ ≡ ≡ that should be or is claimed on the Form 3800, all three pages of the Form 3800 must be present. C&E will correspond when all pages are not attached. For additional guidance IRM 3.12.251.24.38.

  3. Correction Procedures - correct coding and transcription errors and misplaced entries.

  4. Verify the credit is valid for the tax period on the return.

3.12.251.23.1  (01-01-2016)
Field 2501X - Carbon Dioxide Sequestration Credit (Form 8933)

  1. Description:

    • Field 2501X is transcribed from Part III, Line 1x on Form 3800.

    • The credit is valid from 200810 to present.

3.12.251.23.2  (01-01-2016)
Field 2501Y - Qualified Plug-in Electric Drive Motor Vehicle Credit (Form 8936)

  1. Description:

    • Field 2501Y is transcribed from Part III, Line 1y on Form 3800.

    • The credit is valid from 200901 to present.

    Note:

    Valid in service dates must be after 1/01/2009 and vehicle year 2009.

3.12.251.23.3  (01-01-2016)
Field 2501Z - Qualified Plug-in Electric Vehicle Credit (Form 8834, Part I only)

  1. Description:

    • Field 2501Z is transcribed from Part III, Line 1z on Form 3800, General Business Credit.

    • Must have valid in service date after 2/17/2009 and vehicle year 2009.

3.12.251.23.4  (01-01-2016)
Field 2504G - Qualified Railroad Track Maintenance Credit (Form 8900)

  1. Description:

    • Field 2504G is transcribed from Part III, Line 4g of Form 3800.

    • The credit is valid from 200501 to present.

3.12.251.23.5  (11-14-2016)
Field 2504I - Increasing Research Activity Credit (Form 6765)

  1. Field 2504I is transcribed from Part lll, Line 4i of Form 3800.

  2. On page 3, line 4i, the text "Reserved" has been replaced with "Increasing Research Activities (Form 6765)" to reflect that the research credit is allowed against AMT for certain small businesses. This credit has been made permanent beginning in Tax Year 2016, (PY2017).

3.12.251.24  (11-14-2016)
Math/Consistency Errors—Priority IV

  1. A priority IV error will display whenever the contents of one field is inconsistent with the contents of another field, or when a math computation is incorrect. These errors will be assigned a specific Error Code and will display in ascending Error Code order.

  2. The screen display will show the Error Code assigned and all the fields needed to make the necessary correction.

  3. For some math error codes, a field labeled "NC" will display for the entry of a Taxpayer Notice Code (TPNC). Multiple taxpayer notice codes may be entered when multiple XX(s) are shown. Previously assigned TPNC(s) will display on the right hand side of line 3 of the screen.

  4. A field labeled "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed. All coding and transcription errors and misplaced entries must be corrected, and all IRM procedures must be applied BEFORE entering a "C" in the Clear Code field. All errors must be resolved, as applicable, by:

    1. Eliminating the error;

    2. Entering a Clear Code;

    3. Entering a Taxpayer Notice Code; or

    4. Suspending the document with the appropriate Action Code.

  5. ERS MUST enter Action Code 341 and route to ERS/Rejects for the issuance of a manual refund when either of the following conditions are present:

    1. The refund amount is ≡ ≡ ≡ ≡ ≡ ≡ or more, OR

    2. The processing date is more than 20 days after the Received Date or, the Return Due Date (whichever is later) and the 45 day interest free period is in jeopardy and the refund amount is≡ ≡ ≡ ≡ or more.

3.12.251.24.1  (01-01-2016)
Documents with Overfilled Money Fields

  1. If the money amount on a return exceeds the maximum field length allowable, enter the maximum amount of tax in Field 07GVT. Prepare Form 3465 to have the remainder assessed by Accounts Management.

  2. If a correction causes a difference of≡ ≡ ≡ ≡ or more between taxpayer tax and computer tax, correspond for an explanation or follow local Submission Processing Campus procedures. If no reply, send TPNC 40.

3.12.251.24.2  (11-14-2016)
♦Error Code 001 - Tax Year - Invalid Entry♦

  1. Fields Displayed

    Field Designator Field Title Length
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01RCD Received Date 8
    01RDD Return Due Date Computer Generated 8
  2. Invalid Condition – Error Code 001 will generate when any of the following conditions are present:

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

    • CCC "G" is Present – The processing date is equal to or more than 2 years and 10 months after the Return Due Date and CCC "W" is not present.

    • "G" Coded and Non "G" Coded Returns-The processing date is less than two years after the Return Due Date and CCC "W" is present.

  3. Correction Procedures:

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

    2. Do not send the following returns to Statute Control for clearance. Instead, enter "W" in Field 01CCC and on the return and continue processing:

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

      • Any return secured by Examination/Collections, Secured by TE/GE, Secured by TE/GE EP Exam

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

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

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

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

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

      Caution:

      The EEFax Date cannot legally be used as a Received Date.

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

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

      2. IRM 3.12.251.5.5 to determine the Received Date.

      3. IRS Received Date for faxes - Enterprise Electronic Fax (EEFax) is the e-fax system used by IRS employees to send and receive fax documents. When fax receipts are timely dated by the fax machine (e.g., RECEIVED BY IRS-EEFAX 03/04/201X), no further action is required to evidence receipt. Code & Edit should edit the Received Date to the proper location on the return. Enter the Received Date according to instructions:

        Caution:

        Only use the EEFax received date as the IRS Received Date on original return submissions. If the EEFax is a response to correspondence requesting additional information on a suspended return, use the received date of the suspended return as the IRS Received Date instead of the EEFax received date.

        Note:

        The Taxpayer Advocate Service (TAS) organization is not a point of filing and TAS employees have not been delegated the authority to accept returns for filing. Treat all TAS Received Dates as invalid by circling them out (if Code & Edit hasn’t). Enter the Received Date according to instructions.

        Note:

        EEFax added per memo "Revision of Policy for Use of Fax in Taxpayer Submissions" dated November 19, 2015, located athttp://irweb.irs.gov/AboutIRS/co/dcse/memo/48254.aspx.

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

      Note:

      Do not send the return to Statute Control.

      The return receive date is 2 years and 9 months or more after the Return Due Date The return is stamped, No Statute issue Edit a CCC W
      The return receive date is less than 2 years and 9 months from the Return Due Date and the return is stamped, "No Statute issue" , "Statute N/A" , or a similar statement indicating there is no statute issue Do not edit a CCC W
      The return is not stamped by Statute Control within the last ninety days 1. SSPND "310."
      2. Prepare Form 4227 or Form 10886 to route to Statute Control.
  4. Suspense Corrections:

    1. When Statute Control returns the cleared document, enter "W" in Field 01CCC and on the return. Continue processing.

    2. Statute Control requests the record to be voided to them, SSPND "640."

3.12.251.24.3  (11-14-2016)
♦Error Code 002 - Name Control Mismatch♦

  1. Fields Displayed

    Field Designator Field Title Length
    CL Clear Code 1
    01NC Name Control 4
    >>>> Name Control Underprint 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    02CON "In-Care-of" Name 35
    02FAD Foreign Address 35
    02ADD Street Address 35
    02CTY City 22
    02ST State 2
    02ZIP ZIP Code 12
  2. Invalid Condition – Error Code 002 will generate when the Name Control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF).

  3. Correction Procedures:

    1. Before taking any additional research steps to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Name Control have posted to the NAP. If Error Code reappears, continue with the remainder of the correction procedures.

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

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

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

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

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

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

      If Then
      The Name Control on INOLES matches the Name on the return or attachment, 1. Ensure that the entity information matches the return.
      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return. Ensure that the entity information matches the return.

      Note:

      Do not send Letter 3875C when:

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

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

      • The TIN on the return is the taxpayer's SSN (check CC INOLEG) and research shows there is no valid entity on Master File for that EIN.

      Multiple EINs are located, 1. SSPND "320" to Entity Control.
      2. Prepare Form 4227 or Form 19886 with the notation "MULTIPLE EINS."
      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES.
      The "MT" EIN matches the entity on the return or attachments, Enter the "MT" EIN in Field 01EIN

      Note:

      Do not send Letter 3875C on MT EIN cases.

      The "MT" EIN does not match the entity on the return or attachments, SSPND "320" to Entity Control.
    8. If the Name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change on Form 1120, research ENMOD for a new name.

      If Then
      The Name Control on ENMOD matches the Name on the return or attachments, Enter "C " in the Clear Code field.
      The Name Control on ENMOD or INOLES does not match the Name on the return or attachment, 1. SSPND "320" to route the return to Entity Control.
      2. Attach Form 4227 or Form 10886 with the notation, "NO RECORD" .
    9. If the Name change has not been made, research ENMOD for a pending TC 013.

      If Then
      A pending TC 013 is present, Enter "C" in the Clear Code field.
      A pending TC 013 is not present, 1. SSPND "320" to route to Entity Control.
      2. Attach Form 4227 or Form 10886 with the notation "REQUEST NAME CHANGE (TC 013)."
  4. Suspense Corrections:

    1. If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date:

      If Then
      The Entity Assignment Date is past the Return Due Date and IRS Received Date, 1. GTSEC 01
      2. Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date and IRS Received Date. Continue processing.
    2. Research IDRS using CC BMFOL to determine if payments posted incorrectly:

    If Then
    The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
    2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE."
    3. Write, "FORM 3465 PREPARED" on the return, to the left of the Entity section.
    4. Enter CCC "X" in Field 01CCC.
    The payment posted correctly, 1. Enter the correct EIN in Field 01EIN and on the return.
    2. Enter "C" in the Clear Code field.
    Payment cannot be located, Enter "C" in the Clear Code field.

3.12.251.24.4  (11-14-2016)
♦Error Code 003 - Check Digit Invalid♦

  1. Fields Displayed- Error Code 003 will display as:

    Field Designator Field Title Length
    01NC Name Control 4
    01EIN Employer Identification Number 9
    01CCC Computer Condition Code 10
  2. Invalid Condition - Error Code 003 will generate when any of the following conditions are present:

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

    • The letters "E" , "G" , or "M" are present in Field 01NC

  3. Correction Procedures:

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

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

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

      If Then
      The EIN on the Form 1120 matches the EIN on NAMEB/NAMEE Enter Name Control from NAMEB/NAMEE in Field 01NC
      Research indicates a different EIN Verify the EIN and name on INOLES
      Name Control on INOLES matches the name on the return or attachment,
      1. Overlay Field 01EIN with the EIN from INOLES

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

        Note:

        Do not send Letter 3875C when:
        •Three or less digits of the EIN are transposed, different or missing or
        • INOLES indicates the account has been "merged to" or "merged from" or
        • The TIN on the return is the taxpayer's SSN (check CC INOLEG).and research shows there is no valid entity on Master File for that EIN.

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

      2. Prepare Form 4227 or Form 10886 with the notation "NO RECORD OF EIN" .

      Working a return with an RPS indicator that has an EIN change
      1. SSPND 351 to Entity Control

      2. Prepare Form 4227 or Form 10886 with the notation "RPS RETURN WITH EIN CHANGE" .

  4. Suspense Correction

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

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

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

      3. Write "F3465 PREPARED" on the return, to the left of the entity.

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

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

3.12.251.24.5  (11-14-2016)
♦Error Code 004 - Name Control/EIN Validation♦

  1. Fields Displayed

    Field Designator Field Title Length
    CL Clear Code 1
    01NC Name Control 4
    >>>> Name Control Underprint 4
    01EIN Employer Identification Number 9
  2. Invalid Condition – Error Code 004 will generate when any of the following conditions are present:

    • The EIN is not present at Master File (MF)

    • The Entity Index File (EIF) and the National Account Profile (NAP) were not accessed or were not operational, causing a blank underprint in Field 01NC

    Note:

    An underprint of "XXXX" indicates that there is no account on the Master File, while a blank underprint indicates that the NAP has not been accessed or was not operational.

  3. Correction Procedures:

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

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

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

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

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

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

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

      If Then
      The Name Control on INOLES agrees with the Name on the return or attachment, 1. Ensure that the entity information matches the return.
      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875C when

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

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

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

      Multiple EINs are located, 1. SSPND "320" to Entity Control.
      2. Prepare Form 4227 or Form 10886 with the notation "MULTIPLE EINS."
      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on Command Code INOLES.
      The "MT" EIN matches the entity on the return or attachments, Enter the "MT" EIN in Field 01EIN.
      The "MT" EIN does not match the entity on the return or attachments, SSPND "320" to Entity Control.
    8. If the Name on the return or attachments does not agree with the Name Control on INOLES or there is an indication of a name change on the Tax Form, research IDRS using Command Code ENMOD for a new name.

      If Then
      The Name Control on ENMOD agrees with the Name on the return or attachments, Enter "C" in the Clear Code Field
      The Name Control on ENMOD or INOLES does not agree with the Name on the return or attachments 1. SSPND "320" to route the return to Entity Control.
      2. Attach Form 4227 or Form 10886 with the notation, "NO RECORD."
    9. If the Name change has not been made, research IDRS using Command Code ENMOD for a pending TC 013.

      If Then
      A pending TC 013 is present, Enter "C" in the Clear Code Field.
      A pending TC 013 is not present 1. SSPND "320" to route to Entity Control.
      2. Attach with the notation, "REQUEST NAME CHANGE."
  4. Suspense Corrections:

    1. If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date.

      If Then
      The Entity Assignment Date is past the Return Due Date and IRS Received Date 1. GTSEC 01.
      2. Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date and IRS Received Date, Continue processing.
    2. Research IDRS using BMFOL to determine if payments posted incorrectly:

      If Then
      The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
      2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE."
      3. Write "FORM 3465 PREPARED" on the return, to the left of the Entity section.
      4. Enter CCC "X" in Field 01CCC.
      The payment posted correctly 1. Enter correct EIN in Field 01EIN and on the return.
      2. Enter "C" in the Clear Code field.
      Payment cannot be located Enter "C" in the Clear Code field.

3.12.251.24.6  (01-01-2016)
♦Error Code 007 - Received Date is Earlier Than Tax Year♦

  1. Fields Displayed

    Field Designator Field Title Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10
  2. Invalid Condition – Error Code 007 will generate when the Received Date is earlier than the first day of the Tax Period/Year by two months or more.

  3. Correction Procedures:

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

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

      If And Then
      The Received Date is invalid and it appears that the incorrect year was used (i.e. 20150115 instead of 20160115), and other information (Julian Date, postmark date, and/or signature date) indicates that the Received Date should be the current year   Change the Received Date year to the current year and enter in Field 01RCD.
      The return is an early filed "Final" return   1. Change the tax period to agree with the month before the Received Date and enter in Field 01TXP.
      2. Enter "F" in Field 01CCC.
      The return is not an early filed "Final" return The tax period ending is less than four months after the Received Date 1. SSPND "480."
      2. Prepare Form 4227 with the notation, "EARLY FILED."
      The return is not an early filed "Final" return The tax period ending is more than four months after the Received Date 1. Initiate correspondence for clarification of tax period.
      2. SSPND "211."
      The return is not an early filed "Final" return The month of the Received Date is prior to the Tax Period ending Change the month of the Received Date to equal the month of the Tax Period
  4. Suspense Corrections:

    If Then
    The taxpayer replies that the return is a "Final" 1. Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP.
    2. Enter "F" in Field 01CCC.
    The taxpayer replies that the return is not a "Final" return SSPND "480" until the end of the tax period provided by the taxpayer.
    The taxpayer fails to reply or the reply is not adequate 1. Enter "3" in Field 01CCC.
    2. SSPND "480" until the end of the tax period indicated on the return.

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