Error Resolution is to resolve validity errors, field errors, consistency errors, and math errors in returns and other documents for posting to the Master File. Records fall out in Error Resolution System (ERS) due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields. The GMF programming causes a record to fall out to ERS if it fails to meet certain criteria, including:

This manual is your main source of information in correcting the record on the screen and the related return. You will also find procedures in the following Internal Revenue Manual:

The authority for the procedures in this section is found in the legislation listed below. See IRC 6201(a) of the Internal Revenue Code and the underlying regulations:

All Policy Statements for Submission Processing are contained in IRM 1.2.12 Servicewide Policies and Authorities.

The Campus Director is responsible for monitoring operational performance for the Submission Processing campus.

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

The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their work.

The Team Employees are responsible for following the guidance provided in this IRM and staying abreast of the interim guidance defined as procedural updates.

Program Goals: Define the objectives or goals for the program, what will be achieved by following the process and procedures provided by this IRM. May include references and links to documents that outline program goals and objectives.

Program Reports: System control reports are on the Control-D Web Access (CTDWA) and a general listing of the reports are located in IRM 3.12.38, Error Resolution, BMF General Instructions.

Program Effectiveness: How the program goals are measured. It is not intended to provide instruction for determining the program effectiveness. These documents may include links to program and quality reviews.

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

Federal Managers Financial Integrity Act (FMFIA)

Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

This table below provides a list of acronyms used throughout this IRM 3.12.263 Error Resolution, Gift and Estate Returns:

The table lists Interpretation words and their definitions:

Submission Processing Home page is designed to meet the needs of our employees in addition to:

This text is structured to give you corrective procedures and help you find them quickly.

The text is structured as follows:

This text provides enough information to correct most error conditions. You may sometimes need to see the instructions in IRM 3.11.106, Estate and Gift Tax Returns. If there is any difference between the instructions contained in IRM 3.11.106, Estate and Gift Tax Returns and those in IRM 3.12.263, Error Resolution Estate and Gift Tax Return follow the instructions contained in IRM 3.12.263, Error Resolution Estate and Gift Tax Return, and contact the analyst responsible for IRM 3.11.106. Estate and Gift Tax Return and IRM 3.12.263, Error Resolution Estate and Gift Tax Return using local procedures.

The purpose of the BMF Consistency initiative is to achieve consistency in the BMF Error Resolution System (ERS) processing IRMs.

Topics for BMF Consistency have been identified and developed as a coordinated effort between Kansas City, Ogden, and Wage and Investment (W&I) (Paper Processing Branch, BMF Code and Edit/ERS Section).

IRM 3.12.263 is exempt from BMF Consistency Guidelines, (for example indicating diamonds) as shown in other sections of IRM 3.12, Error Resolution.

The text in normal print within a consistency section signifies the common process to be used for all BMF returns. The text in bold print is form-specific and applies to this IRM only.

The forms listed below are used or referred to in estate and gift tax return processing:

OLE is an On-Line Entity system designed to allow for validation of the Taxpayer Identification Number (TIN) and TIN/Name Control on-line with the Integrated Data Retrieval System (IDRS) input Command Codes (CCs). It is also designed to allow for entity research on a national basis.

The national file is called National Accounts Profile (NAP) and is accessed by using CC INOLE. It is a file of all accounts nationwide. For detailed information and usage of command code INOLE, EOGEN, and SPARQ, see IRM 2.3.47, IDRS Terminal Responses.

INOLE can be used to research name controls. For example, when the TIN is sent to the Master File for validation, but the name control mismatches, you must research to decide the correct name control. If information present on INOLE is consistent with information on the tax return, you can correct the error. If research does not decide the correct name control, then use other research command codes (i.e., NAMES/NAMEI) to decide a better TIN.

Since Master File does not carry all information available on the IDRS screen displays it may be necessary to initiate IDRS research using Command Codes (CCs) such as INOLE, ENMOD, BMFOL or BRTVU.

Use these CCs to research entity and/or tax data which may not be available on IDRS. In most cases, the response will appear on the screen in 5 seconds or less.

Corporate Files On-Line (CFOL) CCs:

Any returns secured by Compliance will have a Transaction Code (TC) 59X and the appropriate Closing Code (CC) input by Compliance prior to processing.

These returns will be identified by a stamped or handwritten TC 59X and CC in the middle left-hand margin of Page 1 of the return.

If there is a math error and taxpayer correspondence is required, SSPND with Action Code (AC) 640 to Rejects for unprocessables conditions. Rejects will void the document from the system and send the document to Compliance Services, Estate and Gift Tax Campus Operation, for further processing. DO NOT correspond with the taxpayer or executor for clarification or more information.

Estate tax returns must contain specific items before they are considered processable. Perfect all returns to the extent possible from schedules and other attachments. The specific items needed are:

If any of the above items are missing or cannot be perfected, give the return to your manager to give to the estate tax attorney.

Gift tax returns need the following information:

The following table pertains to unprocessables conditions for an incomplete Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

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

If CI has stamped the return, no further CI action is required

For returns with refund claims of≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following:

Because of the repetitive nature of the ERS/Rejects function, ERS/Rejects Tax Examining Technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If ERS identifies return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral.

If a suspicious return is identified, and there is no indication Code and Edit (C&E) made a copy and sent to CI Referral, then, do the following:

If the return fits other criteria (e.g., Frivolous Argument), take appropriate action.

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

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

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

The Business Master File (BMF) campus cycles are:

BMF transaction posting time frames are :

Transaction posting dates will show a format of YYYYCCDD. YYYY is the year. CC is the posting cycle. For BMF transactions, the following values for DD are defined:

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3705(a) gives identification requirements for all IRS employees working tax-related matters.

All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

When taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

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

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

Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

TAS uses Form 12412, Operations Assistance Request (OAR), to show the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps can't be taken to resolve the taxpayer's issue the same day.

The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

When making a TAS referral, use Form 911, and forward to TAS following your local procedures.

See IRM 13.1.7.6, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

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

The SLAs are found at https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx .

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

The manager/lead will expedite the case to the P&A staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable. For more information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax.

Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use.

Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.

Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

Before leaving any messages on a taxpayer's answering machine, review:

Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

Review the return to decide whether it appears to be a frivolous return and take the following action:

Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

Form 706, United State Estate (and Generation-Skipping Transfer) Tax Return.

The following information pertains to the due date of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) husband and wife each usually are considered to own half of the property owned by either one.

Community property laws apply to estate tax returns if the taxpayer is domiciled in a community property state at the time of death. Accept taxpayer's claimed domicile. Half of the community property interest must be included in the decedent's gross estate.

Error Resolution Action Code (AC) - A 3 digit numeric code used to put the document in suspense. This shows the need for more information not available in the record or on the return. Only one action code can be used on a record at a time.

Computer Condition Code - A 1 digit number or letter used to identify a specific condition or computation on a return.

Entity Index File (EIF) - Computer file that stores name data for each SSN on file. A check is made between the SSN and name entered. This check is made during transcription.

Error Code - A 3 digit numeric code naming a specific math or consistency error in an error record.

Error Records - Data records failing any of the math or validity checks on the Generalized Mainline Framework (GMF) system or containing an invalid or incomplete action code.

Generalized Mainline Framework (GMF) - The system used to process and control all documents through the submission processing campus pipeline.

Key Index File (KIF) - A computer file of TINs which can be accessed by using command code NAMES/NAMEI with name and address data.

Perfecting the Tax Return and Error Screen Displays.

Make sure the taxpayer's entries are on the correct lines of the tax return. Check for coding and transcription errors in each section and field of the screen display and on the return and correct as needed. Follow specific instructions and local procedures (such as Quality Alerts) for all sections and fields. Make sure all sections and fields were transcribed.

Missing Signature - A signature is needed on all returns. If the signature area on the tax return is not signed, SSPND with AC 225 (Signature Only - Domestic Returns) or 226 (Signature Only - Foreign Returns).

The Command Codes (CCs) used to correct and research the Error Inventory and the Workable Suspense Inventory are described below. They are also explained in IRM 3.12.38, Error Resolution System (ERS){, General Instructions. Any CC permitted by the employee's security file will be available to the tax examiner.

Enter CCs correctly, or you will get an error message. Correct the data entered with the CC and transmit.

The Error Resolution Action Code (AC) shows that certain information is missing or that the record should be rejected from processing. The code will have sufficient detail to show if correspondence is to be sent to the taxpayer or specific in-house research or action is required.

See AC table below for the appropriate codes:

Document Perfection tax examiners will give a three digit code to numbered returns when they cannot process the return in the present form until more information is received or some manual intervention is required.

Document Perfection will attach Form 3696, Correspondence Action Sheet, to begin correspondence. Use the AC and state what missing information is needed.

A valid AC other than 001 places the record in Suspense Inventory, either Workable or Unworkable.

Only assign one AC at a time to a record. The priority of the ACs are 310, 320, 4XX, 6XX, 3XX, 2XX.

Code and Edit tax examiners will enter ACs on the bottom left hand corner of the return.

An Error Resolution tax examiner may enter an AC on a record, delete or correct an invalid code or may replace the present AC with another to either re-suspend or reject from Error Resolution.

A Reject tax examiner entering a valid AC with CC RJECT rejects the record from Error Resolution. Generally the Service Center Control File (SCCF) will be automatically updated for the rejected records. An Unpostables tax examiner entering an AC with CC NWDLN rejects the record from the Error Resolution inventory and establishes the new DLN under which the record is to be entered.

The computer generates a Form 4251, Return Charge Out, for all new suspense items. Use the form to pull documents to route the controlling documents while holding the record in suspense and to associate the document in the Workable Suspense Inventory when the record becomes workable.

When you cannot perfect a record, reject it from Error Resolution by using CC SSPND/RJECT with AC 640. Unpostables will take action to have the DLN voided.

You may be able to perfect the record but the document may need to be renumbered because the DLN or remittance amount may need to be corrected. Suspend with AC 610 or 611.

Use the letter "C" as a Clear Code to remove the error codes (consistency errors) when you do not have to change or correct the record to fix the error. The display will show a Clear field, labeled "CL" if a Clear Code can be used. The Clear field can be found to the right of "CRECT" on the screen display.

Clear an error code with an available Clear Code by either correcting the problem or entering a "C" to state no correction is needed. If other corrections are needed, they must be entered and transmitted prior to entry of the Clear Code "C" . Make sure that all corrective procedures have been followed for each individual error code before entering a "C" in the Clear Code field.

Use Clear Code "C" to clear the AC from the screen after completing corrections, or when AC 410 and 700 are used. The AC must be cleared before other errors in the record can be resolved. The presence of the "C" with a Priority I Error states you have made the corrections to the AC and now wish to see any other errors on the record.

Use Clear Code "000" to delete all action codes only when you have invalid and erroneous ACs and there is no reason to suspend the record. Suspense correction cannot use "000" .

When you suspend a record with CC SSPND, 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 contain none of the "C" Clear Codes given to a record not completely worked.

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

The "C" Clear Code will not allow any other corrections to the record to accompany the "C" Clear Code. If a correction must be entered, but you have already transmitted the "C" Clear Code, enter CC GTSEC 01 and put a "G" in Field 01CCC. Transmit and remove CCC "G" when the Error Code 010 appears to reset the record. If you used CC SSPND and the record is no longer displayed, then use CC GTRECW to make any corrections.

The Error Resolution System identifies errors based on type and priority. The record heading shows the type of error. Types include:

Tax examiners may find that programming has not included a field or section needed to correct an error. In this event, use CC GTSEC to get the needed field. This should be reported to Headquarters for correction of the display.

All records with an invalid AC assigned by Document Perfection will be placed in the Error Inventory and shown as a Priority I Error.

All records with a valid AC will be assigned to a Suspense Inventory and shown as Priority I Error.

See also IRM 3.12.38, BMF General Instructions, for more information regarding ACs and/or Priority I Errors.

The Integrated Submission and Remittance Processing (ISRP) should eliminate most editing, missing section, and terminus errors. If normal Integrated Submission and Remittance Processing, validity checks have been bypassed, edit errors and/or terminus errors may be present.

Edit Error - A section with an error detected by Integrated Submission and Remittance Processing. Edit errors will be coded as follows:

Any field failing to meet the requirement(s) for that field will be shown as a Priority III error. Consistency and/or relationships with other fields will not be a factor. Some reasons for field errors include:

Use this code when there is a math error which affects the tax liability or tax due/overpayment. Enter it on the terminal screen following the literal "NC" and write it on the upper left corner of the return.

Enter the TPNC after you see that no further corrections to the record are needed. The TPNC tells the computer that no other corrections to the screen display will be made. Enter and transmit all corrections for each error condition before using a TPNC. Each math error has a certain TPNC that can be used to clear the error. The TPNC used must be valid for the Error Code.

Each math error display needs either a correction to a field or the entry of a TPNC. You cannot make any other correction when transmitting a TPNC. TPNCs used for a math error will be shown on subsequent displays for the record. This field is used for display purposes only and cannot be corrected.

Records for the documents in the Error Resolution System (ERS) are controlled by Status Codes. The status is updated when the record is placed in a specific inventory.

Here is a list of the status codes with a brief explanation:

The final two positions of the Status Code will consist of the first two positions of the AC. This will put similar work together on the Workable Suspense Inventory.

Records whose Suspense Period has expired before being activated are automatically moved from Status 2XX to Status 3XX.

The following information pertains to unprocessables ADP returns:

You must leave a legible "Working Trail" for those who may work with the return later. If your submission processing campus has a written "In-house Agreement" that differs from the instructions below, follow them. These procedures have been coordinated with Headquarters.

Annotate the following items when making a change to the return:

Edit on the return the preparation of Letter 3024C, Math Error Explained (BMF), and Form 2275, Records Request, Charge and Recharge.

The Error Record Format for Section 01 is listed as follows:

This field is blank for non-remittance returns and remittance returns processed through the Remittance Processing System (RPS) system. It is a non-correctable field.

The remittance amount is found on the Balance due line of a full-paid return and is shown by a green rocker. A partial paid return has the remittance amount entered in green beside the taxpayer's entry on the Balance Due Line.

This field is transcribed from the name line in the entity portion of the return. This field must be the first four alpha characters of the decedent’s last name.

The SSN is a number assigned by the Social Security Administration (SSA) to identify potential Social Security contributors/recipients. The field is found on Page 1, Part 1, Box 2 of the return.

This field is transcribed from Page 1, Part 1, Box 4 of the return. The Date of Birth (DOB) is either blank or numeric in YYYYMMDD format.

The DOB is used as a validity check on the DOD.

This field is transcribed from Page 1, Part 1, Box 5 of the return. It is entered in YYYYMMDD format.

The DOD determines the due date of the return. It also determines which tax laws and rates are in effect for the estate.

The following table pertains to due dates of returns: