3.41.277 Form 940 Processing on Service Center Recognition/Image Processing System

Manual Transmittal

November 09, 2021

Purpose

(1) This transmits revised IRM 3.41.277, Optical Character Recognition Scanning Operations - Form 940 Processing on Service Center Recognition/Image Processing System.

Material Changes

(1) Title of this IRM Chapter and Section updated for consistency with all IRMs in the series.

(2) IRM 3.41.277.1, Program Scope and Objectives, Corrected to better define the Audience and add Primary Stakeholders.

(3) IRM 3.41.277.1.6, Terms and Definitions, Added the missing terms Document, ERS and FLC with definitions to the table.

(4) IRM 3.41.277.1.7, Related Resources, (1) Updated row 4 of the table to remove the IRM 3.11.13 reference and added the correct reference to IRM 3.11.154.

(5) IRM 3.41.277.3, Introduction, Added new section to the IRM to include introduction to IRM, IRM deviation instructions and Taxpayer Bill of Rights information. All remaining section and subsections were renumbered accordingly.

(6) IRM 3.41.277.3.1, Source Documents, Added new subsection to the IRM to reflect the actual forms and schedules processed through SCRIPS. All remaining sections and subsections were renumbered accordingly.

(7) IRM 3.41.277.3.2, Program Codes, Moved to the new Introduction section of IRM. All remaining sections and subsections were renumbered accordingly.

(8) IRM 3.41.277.3.3, How to Use This Internal Revenue Manual (IRM), Moved to the new Introduction section of IRM. All remaining sections and subsections were renumbered accordingly. Also added a table to include additional IRM references for easier use and definition of table locations.

(9) IRM 3.41.277.5.1, Form 940 Document Perfection Operation Pre-Document Preparation (Pre-Doc Prep), Added missing instructions needed for preparing the returns for scanning.

(10) IRM 3.41.277.8.1, Form Identification (FI) QUICK START, Added instruction for handling an incorrect selection in FI.

(11) IRM 3.41.277.9.1, Original Entry (OE) From Image QUICK START, Added instruction for handling an incorrect selection in OE.

(12) IRM 3.41.277.10.1, Data Validation (DV) Image QUICK START, Added missing step for selecting a DV Image block.

(13) IRM 3.41.277.11, General Correction Procedures, Added additional instruction for data crossed out by the taxpayer and the handling of illegible images.

(14) IRM 3.41.277.11.3.1, Entering Name Lines, Included instruction for entering numerics in the Name Control.

(15) IRM 3.41.277.11.5, Entering Code and Edit Fields, (12) and (13) Updated instructions to enter 090999 instead of 022222.

(16) IRM 3.41.277.14, Other Validations, (4), (6), and (7) Added a Note for temporary action code guidance for Action Code 211 and 225.

(17) IRM 3.41.277.17.9, Pull Document Report, Added a table a include a listing of the Reason Codes and Conditions for the document deletion.

(18) Exhibit 3.41.277-1, Transcription Sheets (Miscellaneous), Updated the Instructions for Received Date to enter 090999 instead of 022222.

(19) Exhibit 3.41.277-3, Street Abbreviations, Updated Exhibit to correct the abbreviation for Cove.

(20) Exhibit 3.41.277-5, Function Key List, Clarified the description for <F4> and updated the available Key Combinations and corrected the description to provide instruction for the Schedule R for <Ctrl>-S.

(21) Exhibit 3.41.277-8, Valid Characters, Updated the exhibit to add instruction for specific entry and valid character to the table for the 940 EIN, and Schedule R Employer EIN, Clients EIN and Money Fields.

(22) Exhibit 3.41.277-9, Consolidated List of Acronyms, Added the missing acronym for ERS.

(23) Editorial corrections and consistency changes made throughout including, updating titles of referenced Chapter 3 and Section 41 to reflect changes in the IRM series, removing italics, updating other titles, correcting IRM links, etc.

Effect on Other Documents

IRM 3.41.277 dated November 20, 2020 (effective January 01, 2021) is superseded.

Audience

Wage and Investment, Submission Processing Site, Receipt and Control Operation, Document Perfection Operation, and Data Conversion Operation Employees

Effective Date

(01-01-2022)

James L. Fish
Director, Submission Processing
Customer Accounts Services
Wage and Investment

Program Scope and Objectives

  1. This program provides human intervention for data verification of electronic data record created by optical recognition engines for the purpose of data capture from paper returns filed with the IRS.

    1. This chapter also provides information for Quality Review in performing the review of information transcribed on SCRIPS.

    2. Use IRM 1.11.10, Interim Guidance Process, and elevated through the proper channels for operational situations, temporary procedures, pilot program, or a change to current procedures.

  2. Purpose: The instructions in this IRM apply to the paper filed Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return processed through Service Center Recognition/Image Processing System (SCRIPS).

  3. Audience: Submission Processing Data Conversion Operation, Receipt and Control Operation and Document Perfection Operation personnel and their support staff, including but not limited to the following: peripheral scanner operators, general clerks, tax examiners, leads and supervisors. These instructions apply to all campuses.

  4. Policy Owner: The Director, Submission Processing, Wage and Investment Division.

  5. Program Owner: Mail Management Data Conversion Section, Paper Processing Branch (an Organization within Submission Processing).

  6. Primary Stakeholders: Those affected by these procedures or have input to the procedures, including a change in workflow, additional duties, change in established time frames, and similar issues include:

    • Accounts Management (AM)

    • Small Business/Self Employed (SB/SE)

    • Submission Processing (SP)

    • Chief Financial Officer (CFO)

    • Taxpayer Advocate Service (TAS)

    • Chief Counsel

    • Information Technology (IT) Programmers

    • Tax Exempt/Government Entities (TEGE)

    • Compliance Strategy and Policy

    • Operations Business Support

    • Office of Servicewide Penalties

  7. Program Goals: Convert processable paper media unemployment returns to electronic data records.

Background

  1. Filers send paper unemployment forms to the Internal Revenue Service (IRS) to fulfill their requirement to file an annual unemployment tax return and provide their taxpayer identification number (TIN). The IRS must convert the information present on the paper filings to an electronic data record. Employees input and validate the data present and the IRS systems for these records during conversion to electronic data records.

Authority

  1. Authority for these procedures is found in Title 26 of the United States Code (USC) commonly known as the Internal Revenue Code (IRC). The IRC has been amended by acts, public laws, treasury determinations, rules, and regulations such as the following:

    • The Protecting Americans from Tax Hikes (PATH) Act

    • Hiring Incentives to Restore Employment (HIRE) Act

    • Consolidated Appropriations Act (Extenders)

    • American Taxpayer Relief Act (ATRA)

    • Health Care and Education Reconciliation Act

    Note:

    The above list may not be all-inclusive of the various updates to the IRC.

  2. All policy statements for Submission Processing are found in IRM 1.2.1.4, Servicewide Policies and Authorities, Policy Statements for Submission Processing Activities:

    • Code sections that provides the IRS with the authority to issue levies.

    • Congressional Acts that outline additional authorities and responsibilities like the Travel and Transportation Reform Act of 1998 or the Tax Act of 1986.

    • Policy Statements that provide authority for the work being done.

Roles and Responsibilities

  1. The Director, Submission Processing approves and authorizes issuance of this IRM.

  2. The Planning and Analysis staff provides feedback and supports local management to monitor and achieve and scheduled goals.

  3. The Operation Manager secures, assigns, and provides training for the staff needed to perform the duties presented in this IRM.

  4. The Team Manager assigns, monitors, and controls the workflow to complete the work timely.

  5. The Employee applies the instruction for the duties presented in this IRM on the SCRIPS system to accurately convert paper data to an electronic data record for proper posting for use by the IRS.

Program Management and Review

  1. Program Reports: These reports listed below show work schedules, receipts, production and inventory for conversion of paper returns to electronic data. Management uses these reports to monitor the daily and weekly status of the program through completion.

    • IPS0083, Workstation Operator Statistics Program and Function Summary Report

    • IPS0698, Workflow Status

    • IPS10610, Run Balancing Report

    • IPS06440, Throughput Statistics Report

    • PCC 2240, Daily Production Report - Program Sequence

    • PCC 6040, SC WP&C Performance and Cost Report

    • PCC 6240, SC WP&C Program Analysis Report

    • PCB 0440, Daily Workload and Staff Hours Schedule

    • PCB 0540, Weekly Workload and Staffing Schedule

  2. Program Effectiveness: Management measures weekly goals using the above reports for each function compared to the established completion schedule. Each function is expected to complete the inventory on or before the program completion, and retain or exceed schedule prior to the program completion date stated in IRM 3.30.123, Work Planning and Control Processing Timeliness: Cycles, Criteria, and Critical Dates. Local Management conducts and monitors quality reviews and takes corrective action to ensure quality products. A managerial or product review in the Data Validation function is performed each week on every employee and entered into the Embedded Quality for Submission Processing System (EQSP). Managerial and product reviews supplement the quality review process.

  3. Annual Review: Management reviews the processes in this manual annually to ensure accuracy and promote consistent tax administration.

Program Controls

  1. Management can use local reports to establish additional information for maintaining daily program control. Local reports never replace the established official reports.

Terms and Definitions

  1. The following are terms or acronyms used throughout this instruction.

    TERM DEFINITION
    Alpha Character A character (letter) of the alphabet.
    Alphanumeric Field A field that accepts both alpha and numeric characters.
    APO Army Post Office
    Application Refers to the system used for form type being processed (i.e., IRP, ACA-IRP, Schedule K-1, Form 940, Form 941, Stand-Alone Schedule R).
    Block DLN The first 11-digits of 14-digit document locator number (DLN) that consists of a two-digit file location code, tax class (tax class is always 8 for Form 940), two-digit document code, three-digit Julian day, three-digit block number. Also see DLN.
    Capture The process of obtaining images of a document for character recognition and operator use.
    Character Any symbol or alpha (special or numeric), that represents information.
    Character Recognition The process of converting information from paper images to digital data form.
    Check Digit (CD) Check Digit should be two-digit Alpha Code preceding EIN or SSN on label.
    Cursor A vertical line showing the position where the next entry is keyed.
    Data Fields Those fields that do not include entity fields, e.g., on all documents listed such as: money amounts, dates, indicators, covered individuals, etc.
    DLN
    (Document Locator Number)
    A 14-digit document locator number consisting of a two-digit file location code, tax class (tax class is always 8 for Form 940), two-digit document code, three-digit Julian day, three-digit block number, two-digit sequence number and a year digit. Also see Block DLN.
    Document Code
    (Doc Code)
    The fourth and fifth position of each DLN identifying the type of return the electronic data record has captured. The document code is always 40 for Form 940.
    DPO Diplomatic Post Office
    DV
    (Data Validation)
    Workstation operators enter, verify and/or correct data in flagged fields.
    EIN An employer identification number (a nine-digit number) typically identifies an entity such as a corporation, a trust, a nonprofit association, or a sole proprietor whose resides on the business master file. Usually in NN-NNNNNNN format.
    Entity/Entity Fields The part of the document that deals with TIN, name, and requests an address be present for the entries.
    ERS Error Resolution System
    Field Specific area provided for data entry.
    Flag A question mark used to designate an unrecognizable character, or an error within a field.
    FLC
    (File Location Code)
    A two-digit number designed to represent the Service Center where an action is taken on a taxpayer module. The action is a transaction representing a return filing or subsequent compliance action.
    Form Identification Number
    (Form ID)
    A six-digit number located at the top right of each page of a SCRIPS Form 940 document.
    • First two-digits = Document Code

    • Third and Fourth digits = Page number of the return

    • Fifth and Sixth digits = Year the template (form layout or form revision) is last updated/changed

    FPO Fleet Post Office
    Function Keys The upper row of keys on the SCRIPS keyboard. The function keys <F1> through <F12>.
    Highlighting A three-dimensional shadowing of a template field used to direct attention to the field. Used in OE to show the current cursor position. Used in DV to show the current cursor position, and the current field with the error.
    The <Ctrl>-5 function key highlights the corresponding field on the image template.
    Image Strip A section of the true and complete image magnified and displayed above the template. The image strip displayed is a magnified version of the corresponding field highlighted on the image.
    Pressing <Ctrl>-3 toggles the image strip on and off.

    Reminder:

    The Image Strip does not display if the form needed Form Identification (FI) during scanning or the F4 key has been used to change the template.

    Key Combination Keystroke commands requiring two or more simultaneous key presses.

    Example:

    Press <Ctrl>-P or post-to-close means to press and hold the <Ctrl> key and then press the P key before releasing the <Ctrl>key.

    LC
    (Location Code)
    A two-digit number designed to represent the Service Center where an action is taken on a taxpayer module. This acronym is used in place of FLC in creating sanitized DLN’s (e.g., LC#########).
    Menu A list of operations or options the workstation operator selects.
    Message Window A window that appears within the main window. It usually appears in the center of the screen. The system uses these windows to relay messages to the operator.
    Name Control A code of up to four characters consisting of alphas and numerics, derived from a taxpayer's name or business name.
    Non-Conforming Form A form the scanner cannot recognize.
    Numeric Character A number ranging from 0 to 9. A digit.
    OE
    (Original Entry)
    Workstation operators enter data into the template field that corresponds to the data in the fields of the scanned document image.
    Prompt A message or statement displayed that requires an operator response.
    Sequence Number/ Serial Number (SN) A two-digit number located at positions 12 and 13 within the DLN that uniquely identifies the document.
    Sight-Verify Examine a highlighted field in DV. If correct, release the field. If incorrect, correct the field. Also, called verify.
    Social Security Number (SSN) A nine-digit number issued to an individual by the Social Security Administration. The IRS uses this number to process tax documents and returns. Usually in NNN-NN-NNNN format.
    Special Characters (symbols) *, &, /, -, %, #, ?, etc.

    Note:

    Ampersand "&" is not considered a special character in the name line entry.

    Status Line A strip of information found along the bottom right side of the main working window below the prompt area. Displays the program number, DLN/SN, document count, and AUTO, Insert and Numeric indicators.
    Submission Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, and its associated schedules. Also, called a unit-of-work (UW).
    Template Each image of the form processed by SCRIPS is displayed on the left side of the workstation screen. A corresponding line by line template representing the fields of the form appears on the right, displaying fields for data entry.
    TIN Taxpayer Identification Number. Either an EIN or an SSN.
    Transmittal A Form 1332-SC, Block and Selection Record, Breaker Sheet.
    True and Complete Image The image the system displays for data entry or validation purposes. If available, the system always displays it on the left half of the monitor screen.
    Unit-of-Work (UW) A group of Form 940 containing one transmittal and one or more Form 940.

Related Resources

  1. The following table lists the IRM primary sources of guidance on the processing of paper filed Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.

    IRM Title Guidance on
    IRM 3.10.5 Campus Mail and Work Control - Batch/Block Tracking System (BBTS) utilizing BBTS to drop unit production cards for daily incoming receipts and production
    IRM 3.10.72 Campus Mail and Work Control - Receiving, Extracting, and Sorting receiving, extracting, sorting, and routing mail within the Submission Processing campuses
    IRM 3.10.73 Campus Mail and Work Control - Batching and Numbering batching and numbering with a document locator number (DLN) of documents
    IRM 3.11.154 Returns and Documents Analysis- Unemployment Tax Returns document perfection to code and edit (perfect) returns and other documents for input to the Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) or the Service Center Recognition/Image Processing System (SCRIPS)
    IRM 3.41.274 Optical Character Recognition Scanning Operations-General Instructions for Processing via Service Center Recognition/Image Processing System workstation functions, workstation keyboard, Windows environment, and general instruction for entering data for tax returns and related data through SCRIPS
    IRM 3.41.275 Optical Character Recognition Scanning Operations-Scanner Operations on Service Center Recognition/Image Processing System scanning returns on SCRIPS
    IRM 10.5.1 Privacy and Information Protection - Privacy Policy shipping of SCRIPS requests
    Document 12990 Records and Information Management Records Control Schedules time frame to destroy paper sample after conversion to electronic data records
    Document 13144 Proper PII Shipping Procedures shipping of SCRIPS requests
  2. Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area

  3. IRM’s present on the Servicewide Electronic Research Program (SERP) at the following site: http://serp.enterprise.irs.gov/homepage.html. Specific instructional links are available on the BMF Data Conversion Research Portal located at: http://serp.enterprise.irs.gov/databases/portals/sp/bmf/data-conversion/data-conversion.html.

  4. IRM 3.13.62, Campus Document Services, Media Transport and Control, or IRM 10.5.1, Privacy and Information Protection - Privacy Policy, provides information on shipping Personally Identifiable Information (PII). This document is located at: http://publish.no.irs.gov/mailtran/pii.html, titled Postal and Transport Policy. Prepare Form 3210, Document Transmittal, and include with ship documents.

Local Desk Procedures Guidelines

  1. Some Submission Processing Campuses have developed local use Desk Procedures. These procedures must only supplement existing Headquarters’ procedures or convey local routing procedures.

  2. All existing local procedures require review by the Operation Manager or designated employee upon receipt of Information Alerts, Questions and Answers (SERP Feedback) or a new IRM revision to ensure conformance with Headquarters Procedures.

  3. Unit managers must have a signed approval, on file, from the responsible Operation Manager for all Submission Processing Local Desk Procedures.

    Note:

    The signed approval must reflect the current processing year.

Introduction

  1. This IRM section describes certain tasks necessary in the processing of Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return filed on paper with the Service Center Recognition/Image Processing System (SCRIPS).

  2. Submit IRM deviations in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process Standards, and elevated through proper channels for executive approval. No deviations.

  3. The IRS adopted the Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights, and additional information on the Taxpayer Bill of Rights site located at the following location: https://www.irs.gov/taxpayer-bill-of-rights.

Source Documents

  1. The instructions in this section apply only to the form types listed below for tax years 2006 and subsequent:

    • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

    • Form 940 Schedule A, Multi-State Employer and Credit Reduction Information

    • Form 940 Schedule R, Allocation Schedule for Aggregate Form 940 Filers

Program Codes

  1. Use the program codes listed below when entering Form 940 through SCRIPS:

    Forms Program Number Tax Class/Document Codes Master File Tax (MFT)
    940 Non-Refund / All Other 11140, 11145 840 10
    940 Refund 11141, 11146 840 10
    940 With Remit 11142, 11147 840 10

How to Use This Internal Revenue Manual (IRM)

  1. Keystroke Combinations

    • Carets enclose simultaneous keystroke combinations

      Example:

      <Enter>

    • A hyphen separates multiple keystroke combinations

      Example:

      <Ctrl>-P. This means hold down the <Ctrl> key while pressing the P key.

  2. Glossary: IRM 3.41.277.1.6, Terms and Definitions, Exhibit 3.41.277-9, Consolidated List of Acronyms and Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Returns, has a glossary of terms related directly and indirectly to Form 940 SCRIPS processing.

  3. QUICK START - Each function (Original Entry (OE) From Paper, Data Validation (DV) From Image, Original Entry (OE) From Image, etc.) begins with QUICK START instructions intended to speed access to a unit-of-work (UW). For detailed data entry and validation instructions, see IRM 3.41.277.11, General Correction Procedures, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Returns and the tables and transcription sheet exhibits in the back of the IRM. More general instructions may be found in IRM 3.41.274, Optical Character Recognition Scanning Operations-General Instructions for Processing via Service Center Recognition/Image Processing System.

    Reminder:

    Whenever IRM 3.41.274, OCR Scanning Operations, General Instructions for Processing via SCRIPS, and this IRM conflict, this IRM takes precedence.

  4. Tables

    Table Location Table Table Entries and Use
    IRM 3.41.277.1.6 Terms and Definitions provides the corresponding definitions for the provided listing of terms and abbreviations used throughout section 276 of chapter 41
    IRM 3.41.277.1.7 Related Resources list related resources to use in conjunction with the instruction given
    IRM 3.41.277.3.1 Source Documents list each form name and title
    IRM 3.41.277.7 Workstation Operations
    Specific Key Functionality
    list specific keyboard keys and key combinations with the functionality of each listed
    Exhibit 3.41.277-1 Transcription Sheets (Miscellaneous) lists screen prompt and instruction by form page for use in the OE and DV functions
    Exhibit 3.41.277-2 Transcription Sheets (Page 1, Page 2, Schedule A, Schedule R, and Schedule R Continuation Sheet) lists screen prompt and instruction by form page for use in the OE and DV functions
    Exhibit 3.41.277-3 Street Abbreviations lists specific street address abbreviations for use when it is necessary to reduce the address to 35 characters.
    Exhibit 3.41.277-4 Alphabetical Listing of Major Cities with Major City Codes and Zone Improvement Plan (ZIP) Codes lists major city codes for use with address entry
    Exhibit 3.41.277-8 Valid Characters list valid characters and describes the characters allowed in fields present on the transcription sheets

  5. Transcription Sheets

    • Exhibit 3.41.277-1, Transcription Sheets (Miscellaneous), and Exhibit 3.41.277-2, Transcription Sheets (Page 1, Page 2, Schedule A, Schedule R, and Schedule R Continuation Sheet), has transcription sheets for use in the OE and DV functions. These sheets provide most of the information needed to process Form 940 on SCRIPS.

Batching

  1. Use the following programs to batch the Form 940 for processing:

    Batch Type Description Program Number
    Perfect All Other 11140
    Perfect Refund 11141
    Perfect With-Remit 11142
    Imperfect All Other 11145
    Imperfect Refund 11146
    Imperfect With-Remit 11147

  2. Sort separately current year (current form revision), timely filed returns without attachments (Page 1, Page 2, Schedule A, and/or Schedule R only) and no extraneous writing (such as "Final" , "Deceased" , or "Out of Business" , etc.) on page 1 as Perfect.

    1. Place returns in "stat" boxes or on batch carts.

    2. Establish batches on the Batch Block Tracking System (BBTS) with an estimated count. Allow the number of blocks for each batch to default to the BBTS calculation or enter "1" .

    3. The required route is 180, 550, 300, 500, 450, then 610.

      Reminder:

      All returns with a Schedule R attached require processing through SCRIPS. Send returns as OE Paper if they appear not scannable.

      Note:

      Returns with money amounts on both the refund and balance due lines, batch as Non-Refunds. Returns with money amounts on the balance due lines and the "Apply to next return" or "Send a refund" box is checked on the refund line, batch as Non-Refund.

    Note:

    Sort as Imperfect, returns missing page 1 or page 2.

  3. Sort separately current year delinquent returns, prior year returns, and future year returns without attachments (Page 1, Page 2, Schedule A, or Schedule R, only) but with extraneous writing (such as "Final" , "Deceased" , or "Out of Business" , etc.) on page 1 as Imperfect.

    1. Place approximately 80 returns into a gusset folder.

    2. Place gusset folder containing returns on a batch cart.

    3. Establish batches on BBTS with an estimated count. Allow the number of blocks for each batch to default to the BBTS calculation or enter "1" .

    4. The required route is 180, 210, 300, 500, 450, then 610.

    Note:

    Returns with money amounts on both refund and balance due lines, batch as Non-Refunds. Returns with money amounts on the balance due lines and the "Apply to next return" or "Send a refund" box is checked on the refund line, batch as Non-Refund.

    Note:

    At the Service Center option, all delinquent and prior year Form 940, can be sorted and processed as Imperfect.

  4. Sort current year, prior year (2006 revision or later), timely filed and delinquent returns with attachments as Imperfect.

    1. Place approximately 80 returns into a gusset folder.

    2. Place gusset folder containing returns on a batch cart.

    3. Establish batches on BBTS with an estimated count. Allow the number of blocks for each batch to default to the BBTS calculation or enter "1" .

    4. The required route is 180, 210, 550, 300, 500, 450, then 610.

  5. Sort 2005 and prior tax year, 2005 and prior form year revision and American Territories and International (foreign) forms for processing through Integrated Submission and Remittance Processing (ISRP). Use program 1110X.

    Note:

    Ogden Submission Processing Center (OSPC) processes the International (foreign) returns.

  6. Batch documents that contain writing that is too light or appear blank, printed on tissue paper, oversized paper, or improper layout, etc. for processing as "OE Paper" :

    1. Sort return by form revision separately prior to batching.

      Example:

      Sort 2006 through 2010 revisions together, 2011 revisions together, 2012 revisions together, 2013 and subsequent revisions together.

    2. Clearly mark the BBTS transmittal "OE Paper" .

    3. Place approximately 80 returns into a gusset folder.

    4. Place gusset folder containing returns on a batch cart.

    5. Establish batches on BBTS with an estimated count. Allow the number of blocks for each batch to default to the BBTS calculation or enter "1" .

    6. The required route is 180, 210, 190, 300, 500, 450, then 610.

Pre-Document Preparation (Pre-Doc Prep)

  1. Document Preparation refers to the set of manual tasks needed to prepare paper documents or forms for imaging into a production scanner. Careful preparation of documents is essential to ensure data integrity and successful autofeed and data capture during the production scanning process. Check all documents to ensure that all documents in a batch are the same Document Type.

Form 940 Document Perfection Operation Pre-Document Preparation (Pre-Doc Prep)

  1. When preparing returns for scanning, send only the following items for scanning and organize the pages in the order listed below:

    • Form 940, Page 1

    • Form 940, Page 2

    • Form 940, Schedule A

    • Form 940, Schedule(s) R

    • Form 940, Schedule(s) R Continuation Sheet

    Note:

    There may be multiple Schedule R and attached to the return. All Schedule R should be sent for scanning.

  2. If the Schedule R(s) attached to the Form 940 is a nonconforming document (i.e., a spreadsheet, list, or similar format) pull the return from the block and route to Code and Edit for perfection.

  3. When preparing Form 940 for the scanner, the most critical area for repair is the right side of the 940. If preprinted information is present in the upper right corner (where the DLN prints), do not cover (band-aid) that information. The scanner prints the DLN to the left of the information.

    Exception:

    Form year 2017 and subsequent Schedule R and Schedule R Continuation Sheets are designed in landscape orientation, the critical area for repair on these forms is the left side of the schedule.

  4. The Pre-Doc Prep function is responsible for the following on all Form 940:

    1. If staples holes exist around the Form ID on page 1 of the Form 940 near the top of the left side of the form then place "White" tape, over the back side to cover the holes.

    2. Carefully removing all staples from the Form 940, if present. It is permissible to cut off the left corner of the return providing no identifying information is damaged or lost (e.g., the return year, entity information, etc.).

      Note:

      Form identification (ID) number on page 2 of a duplex form if lost or damaged does not have to be replaced. The identifying information is on page 1.

    3. Line through any extraneous information located above the Form ID code (850108, 850109, 860108, 860109, 8701089, 870109, 880108, 880109, 890108, 890109, etc.) in the upper right corner of the return.

    4. Line out non-conforming Form ID numbers (e.g., page 2 has a Form ID 850110 instead of 850210 or a page 1 has a Form ID 850210 instead of 850110).

      Note:

      Printed fax information located at the top of the page does not require a line through.

      Caution:

      Do not use felt tip markers to line through information. Use ONLY black or blue ink pens.

    5. Writing in the full EIN if both the Name and EIN are missing on Page 2 (non-duplex), Schedule A, Schedule R and/or Schedule R Continuation Sheet in the EIN block, if not present. If the Name is present on Page 2, Schedule A, Schedule R and/or Schedule R Continuation Sheet, write in only the last four-digits of the EIN in the EIN block.

    6. Ensure all page’s face in the correct direction and sequential order (page 1, page 2, Schedule A, Schedule R, Schedule R Continuation Sheet) for scanning. The correct orientation for page’s designed or printed in portrait format is front facing with Form ID code located in the UPPER RIGHT CORNER of the page. The correct orientation for pages designed or printed in landscape format is front facing with Form ID code located in the UPPER LEFT CORNER of the page.

      Note:

      2017 and later revisions of the Schedule R are printed in landscape format. The correct direction or orientation of these Schedule R within a block or unit-of-work is directly behind the Form 940 or Form 940 Schedule A (both remain in portrait format) with the Form ID positioned in the UPPER LEFT CORNER of the form. To ensure correct recognition of the Schedule R pages, the Form ID must be at the top of the page (based on orientation) as it goes through the scanner.

    7. Repairing any rips, tears, or large holes approximately 1 inch or larger on the RIGHT side of the Form 940 that may cause the scanner to jam.

  5. The Pre-Doc Prep function is responsible for the following when processing Perfect batches of Form 940:

    IF THEN
    The return is an American Territory or has a foreign address Pull the return from the block and route to Code and Edit for processing via ISRP using local procedures.
    Line 15 has a money amount, "Apply to next return" or "Send a refund" box is checked (a refund) is batched as a non-refund Pull the return from the Non-Refund batch and merge into a Refund batch using local procedures.
    Line 15 has a money amount "Apply to next return" or "Send a refund" box is checked, and Line 14 has a money amount Batch as a Non-Refund.
    Tax year is 2005 or prior Pull return from the block and route to Code and Edit for perfection and processing through ISRP.
    Form is completely illegible, half page, damaged, etc. Pull the return from the block and merge into an Imperfect batch, using local procedures.

    Note:

    At the Service Center option these returns can be processed as "OE Paper" instead of Imperfect.

    Taxpayer has handwritten information on page 1 such as "Disaster" , "Final" , "Deceased" , "Out of Business" , etc. Pull the return from the block and route to Code and Edit for processing, using local procedures.

    Note:

    If statements like no payroll, no employees, natural disaster, or not liable are notated on the return. DO NOT PULL THE RETURN, process as normal.

    Returns with an "X" or "/" through the entire page Pull the return from the block and route to Code and Edit for processing, using local procedures.
    The return does not have a name and EIN

    Note:

    If the return has either a name or EIN, continue processing.

    Pull the return from the block and route to Code and Edit for processing using local procedures.
    The taxpayer completes the Form 940 information (entity and/or data) using, orange, or pink ink Pull the return from the block and merge into an Imperfect batch, using local procedures.

    Note:

    At the Service Center option these returns can be processed as "OE Paper" instead of Imperfect.

    Returns missing page 1 or page 2 Pull the return from the block and route to Code and Edit for perfection and processing using local procedures.
    The taxpayer used only page 1 of a duplex (two sided) return and a separate page 2 Pull the return from the block and merge into an Imperfect batch, using local procedures.
    The taxpayer used only page 2 of a duplex (two sided) return and a separate page 1 Pull the return from the block and merge into an Imperfect batch, using local procedures.
  6. The Pre-Doc Prep function is responsible for the following when processing Imperfect batches of Form 940.

    IF THEN
    The return is an American Territory or the return has a foreign address Pull the return from the block and route to Code and Edit for processing through ISRP using local procedures.
    A refund (Line 15 has a money amount, "Apply to next return" or "Send a refund" box is checked) is batched as a non-refund Pull the return from the Non-Refund batch and merge into a refund batch using local procedures.
    Tax Year is 2005 or prior Pull return from the block and route to Code and Edit for perfection and processing through ISRP.
    Form is completely illegible, half page, or damaged, etc.
    • Repair and continue processing, if possible, otherwise,

    • Pull the return from the block and request processing as "OE Paper,"

    • Use local procedures.

    The return does not have a name and EIN

    Note:

    If the return has either a name or EIN, continue processing.

    Pull the return from the block and route to Code and Edit for processing using local procedures.
    The taxpayer completes the Form 940 information (entity and/or data) using, orange, or pink ink
    • Photocopy the return to allow processing through SCRIPS

    • Consider the original Form 940 as an attachment.

    Note:

    At the Service Center option these returns can be processed as "OE Paper" instead of photocopying.

    Returns with a "X" or "/" through the entire page The page with the "X" is considered an attachment. If the entire return (page 1, page 2, Schedule A, and Schedule R) has an "X" or "/" , pull and route to Code and Edit for disposition.

    Note:

    If statements like no payroll, no employees, natural disaster, or not liable are notated on the form. DO NOT PULL RETURNS, process as normal.

    Return is missing page 1 or page 2 Pull return from the block and route to Code and Edit for perfection.
    The taxpayer used only page 1 of a duplex (two sided) return and a separate page 2
    • Photocopy the original duplex page 1,

    • Line through (X) the duplex page 1 and page 2, this now becomes an attachment,

    • Send the photocopied page 1 and the separate page 2 (e.g., submitted by the taxpayer) to SCRIPS for processing.

    The taxpayer used only page 2 of a duplex (two sided) return and a separate page 1
    • Photocopy the original duplex page 2,

    • Line through (X) the duplex page 1 and page 2, this now becomes an attachment,

    • Send the photocopied page 2 and the separate page 1 (e.g., submitted by the taxpayer) to SCRIPS for processing.

    1. Stamp the attachment(s) and envelope and return (in upper left margin) with the same sequence number. If the return has multiple attachments, stamp the first attachment, and staple the remaining attachments together. Remove and destroy blank vouchers and instruction pages to make the return perfect.

    2. Place attachment(s) and envelope in a colored folder at the back of the gusset folder for each block, maintaining sequential order.

    3. Insert a SCRIPS breaker sheet (for example: Form 1332-SC, Block Selection Control Record SCRIPS) at beginning of each gusset folder.

  7. During scanning, certain documents may reject because the submissions are invalid. The scanning function routes these submissions (documents) to the Pre-Doc Prep function for disposition. The Pre-Doc Prep function is responsible for re-batching the documents and returning them for scanning. When a return is missing pages (page 1 or page 2), route to Code and Edit for correspondence.

Scanner Operator

  1. Refer to 3.41.275, Optical Character Recognition Scanning Operations-Scanner Operations on Service Center Recognition/Image Processing System for complete scanner operating instructions.

Work Prioritization

  1. The system automatically re-prioritizes the work every time the cycle on the system changes.

  2. The system automatically sets the Unit Task Prioritization using the following criteria:

    Program Title Description
    11141, 11146 Refund
    • Prior Cycle (cycle, batch, scan date/time),

    • Current Cycle (batch, scan date/time),

    • No Cycle (PCD) (batch, scan date/time,)

    • Future Cycle (cycle, batch, scan date/time)

    11140, 11145 All Other
    • Prior Cycle (cycle, batch, scan date/time),

    • Current Cycle (batch, scan date/time)

    11142, 11147 With Remit
    • Prior Cycle (cycle, batch, scan date/time),

    • Current Cycle (batch, scan date/time)

    11140, 11145 All Other No Cycle (PCD) (batch, scan date/time)
    11142, 11147 With Remit No Cycle (PCD) (batch, scan date/time)
    11140, 11145 All Other Future Cycle (cycle, batch, scan date/time)
    11142, 11147 With Remit Future Cycle (cycle, batch, scan date/time)

    Note:

    SCRIPS allows management to override the established Unit Task Priority.

Workstation Operations

  1. Refer to IRM 3.41.274, Optical Character Recognition Scanning Operations-General Instructions for Processing via Service Center Recognition/Image Processing System, for a description of these and other items:

    • Keyboard Layout

    • Login/Logoff

    • Operator Statistics

    • Post-to-close

    • Interrupt/Resume

    • Suspend/Resume

    • Status Line

  2. Whenever IRM 3.41.274, Optical Character Recognition Scanning Operations-General Instructions for Processing via Service Center Recognition/Image Processing System and this IRM conflict, this IRM takes precedence.

Forms Identification (FI) Function

  1. A non-conforming form is when the scanner does not recognize all documents or all pages of the return. These include photocopies of official documents and documents that might be official forms but for some reason do not meet the official specification for measurement, homemade documents of varying formats or documents with or without valid form identification numbers in the upper right-hand corner of the page. The Forms Identification (FI) function allows the workstation operator to identify the form (or the page of the form) to avoid rework at the scanner. The FI screen has an image on the left and an entry template on the right. The entry template permits the operator to select what form type the image is, to delete a single image or to delete an entire submission from further processing. The menus shown on the screen vary depending on how your supervisor profiled you.

    Example:

    This option is grayed out (or not present) on the Original Entry (OE) Function Menu if it is not in your profile.

Form Identification (FI) QUICK START

  1. From the Workstation Main Menu, select Original Entry (OE)

  2. From the Original Entry (OE) Selection Menu, select Forms Identification Selection Menu.

  3. From the Forms Identification Selection Menu select 940 Forms Identification.

  4. The first group of images, from a unit-of-work (UW), requiring identification opens.

  5. If an incorrect option is selected from the Forms Identification Selection Menu., press the <Ctrl>-P key combination to set post-to-close, followed by <F9> to suspend the block, before entering any data, to return to the Forms Identification Selection Menu.

  6. If you need to stop FI:

    • Press the <Ctrl>-P key combination (post-to-close) to end FI after completing the current UW.

    • Press the <Ctrl>-P followed by <F9> to suspend the block immediately.

      Note:

      For a complete list of key functions, See Exhibit 3.41.277-5, Function Key List.

  7. The system returns you to the Forms Identification Selection Menu when you complete the last image identification in the UW.

Form Identification (FI) Processing

  1. The system assigns a six-digit sequence number instead of a DLN to the documents it cannot identify. This number assists in locating the documents within a UW when researching the documents. Once the tax year/page type identification occurs, the system assigns a DLN to the submission.

  2. Identify the image, make the correct letter or number selection from the template in the form identification menu selection. The table below appears on the SCRIPS workstation.

    Menu Options Form Year Page Type
    1 2013 or later Page 1
    2 2012 Page 1
    3 2011 Page 1
    4 2010 or prior Page 1
    5 All Page 2
    6 2011 or later Schedule A
    7 2010 Schedule A
    8 2009 or prior Schedule A
    C 2017 or later Sch R page 1
    D 2012 or prior Sch R page 1
    E 2017 or later Sch R Cont.
    F 2012 or prior Sch R Cont.
    B All 1332 Breaker Sheet
    X All Remove

  3. Always press the <Enter> key to complete a selection.

  4. Documents scanned backwards need research to determine the document type. If you cannot identify the image,

    • Press <F9> to suspend the document for research.

    • If the image is unprocessable, press <X> to remove the document from further processing.

  5. Some unprocessable conditions include:

    • Not a Form 940.

    • Form 940 is a 2005 or prior revision.

    • Form 940 with a Foreign Address.

  6. To end a session, press <Ctrl>-P key combination to set post-to-close. The system returns you to the Original Entry (OE) Selection Menu when you complete the last image in the UW.

Original Entry (OE) Function

  1. The OE function is used to manually key enter data from both scanned images and from paper documents. The menus shown on the screen vary depending on how your supervisor profiled you.

    Example:

    This option is grayed out (or not present) on the Original Entry (OE) Function Menu if it is not in your profile.

Original Entry (OE) From Image QUICK START

  1. From the Workstation Main Menu, select Original Entry (OE) Selection Menu.

  2. From the Original Entry (OE) Selection Menu, select OE Image Selection Menu.

  3. From the OE Image Selection Menu, select 940 OE Image Selection Menu.

  4. From the 940 OE Image Selection Menu, select one of the following:

    • All 940s (1114x) OE Image

    • 940 Refund (11141, 11146) OE Image

    • 940 All Other (11140, 11145) OE Image

    • 940 With Remit (11142, 11147) OE Image

  5. After the selection is entered press <Enter> as prompted or press <Alt>-X to exit to the previous menu.

  6. The first whole unit-of-work (UW), or first individual document (because an entire UW may not require OE Image) requiring OE opens. See Exhibit 3.41.277-1, Transcription Sheets (Miscellaneous).

    1. The scanned image of the document displays on the left side of the workstation screen.

    2. Data is input in the specific field window, displayed on the right side of the workstation screen.

  7. If an incorrect option is selected, press the <Ctrl>-P key combination (post-to-close) and then suspend this UW. Notify your supervisor.

  8. If the last data entered is not the last field of the page and there is no other data present on the page, press the <F6> key to release a document and display the next template.

  9. Press the <Ctrl>-P key combination (post-to-close) to end OE Image.

  10. The system returns you to the Original Entry (OE) Selection Menu when you complete the last document in the current UW.

Original Entry (OE) From Image Processing

  1. The Status Line at the bottom of the screen displays the following information:

    1. The Program field displays one of the following:

      Program (Displayed) Description (Not Displayed)
      11140 Perfect - All Other
      11141 Perfect - Refund
      11142 Perfect - With Remit
      11145 Imperfect - All Other
      11146 Imperfect - Refund
      11147 Imperfect - With Remit

    2. The DLN field displays the DLN of the document being displayed.

    3. The SUB field displays the relative count of the document.

      Example:

      If it is the first document in a UW that has 80 documents, the SUB field displays a count of "1 of 80" .

    4. The Pg field displays the relative count of the page of the document.

      Example:

      If it is Form 940 page 1, the Pg field displays "1 of 2" ; 940 page 2 displays as "2 of 2" depending on the length of the return filed.

    5. The Status Line displays "IN" when the insert mode is on and "NU" when the numeric mode is on.

  2. In OE Image, you manually enter information into the template using a scanned image of the return as a source.

Original Entry (OE) From Paper QUICK START

  1. From the Workstation Main Menu, select Original Entry (OE) Selection Menu.

  2. From the Original Entry (OE) Selection Menu, select OE Paper Selection Menu.

  3. From the OE Paper Selection Menu, select 940 OE Paper Selection Menu.

  4. From the 940 OE Paper Selection Menu, select the form type:

    • 940 Refund (11146) OE Paper

    • 940 All Other (11145) OE Paper

    • 940 With Remit (11147) OE Paper

  5. If the wrong program is selected and the first page of the first document has not been completed, press the <Esc> key to cancel the entry. A window displays asking, "Are you sure you want to cancel the inserted document?" Answer "YES" to go back to the 940 OE Paper Selection Menu.

Original Entry (OE) From Paper Processing

  1. In OE Paper, the workstation operator manually enters the information into the system and eliminates all transport processing.

  2. The reason a document is processed using OE Paper is because it cannot be scanned (oversized pages, tissue paper, writing too light, substitute forms, or half pages, etc.).

  3. These documents come batched separately and the BBTS Transmittal clearly marked as "OE Paper" .

  4. Once the workstation operator has successfully completed steps 1 through 4 in IRM 3.41.277.9.3, OE Paper QUICK START, input the following information:

    • BBTS Number = The four-digit Batch Number located in the upper right corner of the BBTS Transmittal.

    • Cycle Number = The last two-digits of the Cycle located below the Batch Number (Batch No) and Release Date (Rel Date) in the upper right corner of the BBTS Transmittal.

    • Tax Year = The Form Year of the first document so the system can generate the correct template.

  5. A blank Form 940 template displays for the first document in the block. Input the information from the document starting with the DLN taken from the first document in the block. The DLN must have 14-digits (for example: LC840102790000). When all fields have been input, press <F6> to get the next template.

    Note:

    OE Paper blocks must have a block number from 790 - 799 only.

  6. For Tax Year 2011 and subsequent once you have input the Schedule A or pressed <F6>, a window appears to select your next process. The window is titled "Next Page Selection" and the options include:

    • Form 940

    • Schedule R

    • Schedule R Continuation

    • End Block

    Note:

    There can be multiple Schedule R or Schedule R Continuation pages attached to the Form 940. Continue to select the correct one until you have input all the information. You cannot input the Schedule R information if the tax year is prior to 2011.

  7. If Form 940 is selected, the system prompts for the next sequence number (located in the 12th and 13th position of the DLN) for each document input (01, 02, 03, etc.). You cannot skip or repeat a sequence number.

    Note:

    If a document is mis-batched or cannot be transcribed, pull the last document in the block and re-number with the sequence number of the removed document.

  8. The system returns you to the 940 OE Paper Selection Menu when you release the last document in the UW.

  9. The Status Line at the bottom of the monitor screen displays the following information:

    • The Program field displays 11145 (All Other), 11146 (Refund) or 11147 (With-Remit).

    • The DLN field displays the DLN of the current document.

    • The SUB field displays the relative count of the document. The field shows "1 of 3" if this is the first document in the block. As each subsequent paper document is processed the count increases to "2 of 3" , "3 of 3" , etc.

    • The Status Line displays "IN" when the insert mode is on and "NU" when the numeric mode is on.

Releasing a Unit-of-Work in Original Entry (OE)

  1. For OE Image, when you release the last document in a UW, a question appears asking if you want to release the UW.

    1. If you answer "YES" to the question in the window and <Ctrl>-P has been pressed before releasing the UW, the OE Selection Menu opens.

    2. If you answer "YES" to the question in the window and <Ctrl>-P has not been pressed, another UW opens.

    3. If you answer "NO" to the question in the window, the current block remains open for entry until you answer yes.

  2. For OE Paper, to end a block for Tax Year 2011 or prior, once the last document is input, press <F8> and answer the question "Do you want to release this UW?" .

    1. If you answer "NO" to the question window that opens, a template appears for the next Form 940 entry.

    2. If you answer "YES" to the question window, and <Ctrl>-P has not been pressed, a Form 940 template appears to begin a new UW.

    3. If you answer "YES" to the question window, and <Ctrl>-P has been pressed, the OE Selection Menu opens.

  3. For OE Paper, to end a block for Tax Year 2012 and subsequent:

    1. Press <Ctrl>-P (post-to-close) while entering, but before releasing the last document in the UW.

    2. Once the last document is input, press <F6> to bring up the Next Page Selection Window. Select the "End Block" option and answer "Yes" to "Do you want to release this UW?"

Selecting a Specific Unit-of-Work in Original Entry (OE)

  1. You can select a specific Form 940 UW for OE by following these steps:

    1. From the Workstation Main Menu, select the numeric code for OE. The Workstation Main Menu closes, and the OE Selection Menu opens. The menus shown on the screen vary depending on how your supervisor profiled you.

      Example:

      This option is grayed out (or not present) on the Original Entry (OE) Function Menu if it is not in your profile.

    2. From the OE Selection Menu, enter the numeric code for OE Select Block. The OE Selection Menu closes, and the Open Block/Unit-of-Work window opens.

    3. Enter the first 11-digits of the DLN from the Form 940.

    4. Press the <Enter> key. The Open Block/Unit-of-Work window closes, and selected UW opens.

    5. The designated UW opens. Enter data using the instructions found in Exhibit 3.41.277-1, Transcription Sheets (Miscellaneous) and/or Exhibit 3.41.277-2, Transcription Sheet (Page 1, Page 2, Schedule A, Schedule R and Schedule R Continuation Sheet).

    6. If the block is not available, an error message is displayed indicating the block is not available. For instance, a message displays if you previously worked on this block, or if another operator is currently working on the Block/UW.

    7. If an incorrect option is selected from the OE Selection menu, press the <Ctrl>-P key combination (post-to-close) and suspend the UW.

Data Validation (DV) Function

  1. The DV function is used to manually correct data from scanned images. The menus shown on the screen vary depending on how your supervisor profiled you.

    Example:

    This option is grayed out (or not present) on the Data Validation (DV) Function Menu if it is not in your profile.

Data Validation (DV) From Image QUICK START

  1. From the Workstation Main Menu, select Data Validation (DV).

  2. From the Data Validation (DV) Selection menu, select DV Selection Menu.

  3. From the DV Selection Menu, select 940 DV Selection Menu.

  4. From the 940 DV Selection Menu, select one of the following:

    • All 940s (1114x) DV

    • 940 Refund (11141,11146) DV

    • 940 All Other (11140,11145) DV

    • 940 With Remit (11142,11147) DV

  5. The first UW opens, and the cursor stops at the first highlighted field when AUTO is on. Use the exhibits in this IRM and the general correction procedures to make necessary corrections.

  6. Press the <Ctrl>-P key combination (post-to-close) to end the current UW upon completion of DV Image.

  7. The system returns you to the Data Validation (DV) Selection Menu when you release the last document.

Data Validation (DV) From Image Processing

  1. The Status Line at the bottom of the screen displays the following information:

    1. The Program field displays one of the following:

      Program (Displayed) Description (Not Displayed)
      11140 Perfect - All Other
      11141 Perfect - Refund
      11142 Perfect - With Remit
      11145 Imperfect - All Other
      11146 Imperfect - Refund
      11147 Imperfect - With Remit

    2. The DLN field displays the DLN of the document being displayed.

    3. The SUB field displays the relative count of the document.

      Example:

      If it is the first document in a UW that has 80 documents, the SUB field displays a count of "1 of 80" .

    4. The Pg field displays the relative count of the page of the document.

      Example:

      If it is Form 940 page 1, the Pg field shows "1 of 2" ; 940 page 2 displays as "2 of 2" depending on the length of the return filed.

    5. The Status Line displays "AU" when the automatic mode is on, "IN" when the insert mode is on, and "NU" when the numeric mode is on.

    Note:

    AUTO Indicator is a toggle that turns the AUTO Mode on and off. When AUTO is on, the cursor automatically moves from the current field to the next field requiring perfection. When AUTO is off, the cursor manually moves through every field using the cursor movement keys. A Select Block or Suspended Block in DV requires the operator to restore the "AUTO On" mode using<Ctrl>-A.

Selecting a Specific Unit-of-Work in Data Validation (DV)

  1. You can select a specific UW of Form 940, for DV by following these steps:

    1. From the Workstation Main Menu, select the numeric code for Data Validation (DV). The Workstation Main Menu closes, and the Data Validation (DV) Selection Menu opens. The menus shown on the screen vary depending on how your supervisor profiled you.

      Example:

      This option is grayed out (or not present) on the Data Validation (DV) Function Menu if it is not in your profile.

    2. From the DV Selection Menu window, enter the numeric code for DV Select Block. The DV Selection Menu closes, and the "Open Block/Unit-of-Work" window opens.

    3. Enter the first 11-digits of the DLN from the Form 940.

    4. Press the <Enter> key. The Open Block/Unit-of-Work window closes, and the selected UW opens.

    5. The designated UW opens. Enter data using the instructions found in Exhibit 3.41.277-1, Transcription Sheets (Miscellaneous) and/or Exhibit 3.41.277-2, Transcription Sheet (Page 1, Page 2, Schedule A, Schedule R and Schedule R Continuation Sheet).

    6. A Select Block or Suspended Block in DV requires the operator to restore the "AUTO On" mode.

    7. If the block is not available, an error message is displayed indicating the block is not available. For instance, a message displays if you previously worked on this block in OE or FI, or if another operator is currently working on the Block/UW.

    8. If an incorrect option is selected from the DV Selection menu, press the <Ctrl>-P key combination (post-to-close) and suspend the UW.

Releasing a Unit-of-Work in Data Validation (DV)

  1. For DV Image, when you release the last document in a UW, a question appears asking if you want to release the UW.

    1. If you answer "NO" to the question window that opens, the current block, remains open for more entry, correction, or validation.

    2. If you answer "YES" to the question window and have NOT issued a post-to-close (<Ctrl>-P), a Form 940 template appears to begin a new UW.

    3. If you answer "YES" to the question window and have issued a post-to-close (<Ctrl>-P), the DV Selection Menu opens.

General Correction Procedures

  1. Use these procedures as a guide during the Original Entry (OE) and Data Validation (DV) functions. Not all the items always apply to specific situations in either function. If the system stops on a field, sight verify and correct all incorrect items in that field.

  2. Use the following guidelines in determining if scanned information needs corrected:

    IF AND THEN
    A box indicating “Enter Form Layout Year” Appears The form is as follows.
    1. 2013 and subsequent

    2. 2012

    3. 2011

    4. 2010 or prior

     

    Note:

    This is NOT the tax year, but the form year ID of the form.

    Enter the 2-digits for the page displayed:
    1. 13

    2. 12

    3. 11

    4. 10

     

    Note:

    If the lines format does not match, you need to follow the format below instead of the actual form year.

     

    Reminder:

    This is two-digit entry ONLY.

    Unable to determine by Form Year
    1. The form has Line 7 and Line 8

    2. The form does have Line 7a through Line 7e

    3. The form does not have Line 7a though Line 7e or Line 8

    1. Enter 13 or 12

    2. Enter 11

    3. Enter 10

     

    Reminder:

    This is two-digit entry ONLY.

    Field displays scanned information Scanned information is correct and in the correct field Press <Enter> to proceed to the next field.
    Field displays scanned information Scanned information is correct but in the incorrect field Delete the scanned information using <F3> and enter the correct information using the criteria in the subsections below.

    Note:

    Ensure there is a space between "%" and the In Care of Name. See IRM 3.41.277.11.3 (3).

    Field displays scanned information Scanned information is in correct field but is incorrect Delete the scanned information using <F3> or use the arrow keys to move the cursor to the incorrect information and replace it using the criteria in the subsections below.
    Field does not display any information Image displays information for the field Enter the information for the field using the criteria in the subsections below.
    Field does not display any information Image does not display any information for the field Leave the field blank.

  3. If you reach the maximum field length while entering data, the cursor, in most cases, automatically moves to the next field. Therefore, you can inadvertently enter incorrect characters into the next field. Remove or correct these characters. Use standard abbreviations as shown in Exhibit 3.41.277-3, Street Abbreviations.

  4. Any checkbox present on any form requires sight verification if the system reads the box as marked.

  5. Error Messages —Messages found in the Prompt Area giving helpful hints to correct the error. Most error messages consist of two lines with the first line displaying the error message and the second information to help resolve the error condition.

  6. The <Ctrl>-<F7> combination key function provides the operator the ability to access the last edited field or the last flagged field of the previous document. For more information on Function Keys refer to Exhibit 3.41.277-5.

  7. An asterisk (*) at the upper right-hand corner of the normal proper placement of the numerous boxes present on the return represent the skip key stop points. Do not mistake the skip box asterisk for taxpayer entries during OE or DV operations.

  8. <Ctrl>-S the skip key combination is used to:

    • Bypass the Code and Edit fields (OE and DV).

    • Allow the operator to move to the most commonly used state codes (CA, FL, IL, MI, NY, PA, and TX) on Schedule A (during OE only).

    • Move from any blank line in Column (a) on Schedule R or Schedule R Continuation Page to Column (b) on the Sub-Total Line (Line 16 on Schedule R page 1 or Line 24/Line 26 on Schedule R Continuation Page).

    Note:

    If AUTO is off and no flags exist prior to the skip to field, the skip key combination can be used in DV.

  9. While working in OE Image or DV Image, if you cannot determine the data for any field from the image because it is illegible or the image is incomplete, suspend the UW and pull the paper document for verification.

  10. While working in OE Image or DV Image, do not enter data marked out or crossed through by the taxpayer. Do enter data written in or placed on the document in different font.

  11. Up Arrow Key - Allows the operator to go backwards between pages, one field at a time, instead of jumping to the top of the previous document.

  12. Cross field validations occur on certain conditions and require sight validation and verification. Follow the screen prompts to allow systemic determination of the disposition of the UW.

  13. Prior Revision Forms - If Code and Edit has placed an asterisk (*) to the left of a line number and entered a different number to the left, input the money amount from the original line on the new line number. (for example: 2011 revision shows Line 7 with an asterisk (*) and 7a has been written to the left. First press <F4>, then enter the 11 for the form year (when necessary) to get the 2011 format. Enter the money amount into Line 7a.).

Illegible Name Control/Employer Identification Number (EIN)

  1. When the Name Control is illegible, enter four hyphens "- - - -" , if the EIN is present. If EIN is not present, delete the document as "Unprocessable 940" .

  2. When the EIN is illegible, press <F3> to clear the field, if Name Control is present. If the Name Control is not present, delete the document as "Unprocessable 940" .

Name Control/Check Digit

  1. If the EIN is unaltered on a preprinted label and the Check Digit is presented, enter the Check Digit, if legible. Otherwise, enter the Name Control. If Name Control is presented instead of a Check Digit, always use the Name Control.

Check Digit
  1. Enter the two letters shown above the tax year on the label.

  2. If the Check Digit is lined through or circled, enter the Name Control.

Name Control
  1. Press <Enter> only for the Check Digit field. The system positions the cursor on the Name Control field.

  2. If the Name Control presented for verification ties into the name on the Name Line, Trade Name Line or In Care of Name Line, leave the generated Name Control. If the generated Name Control does not tie into the above lines or if it is blank, enter the Name Control edited on the return. If the return does not have an edited Name Control, follow the instructions below.

  3. Enter the Name Control. (See Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area for Name Control Determination.) You do not need to press <Enter> if the Name Control is four characters.

  4. If the Name Control is less than four characters, enter those shown and press <Enter>.

  5. The Name Control usually consists of the first four significant characters of the taxpayers’ name or business name. The first character must be alpha or numeric, and the remaining characters can consist of letters, numbers, an ampersand (&) or a hyphen (-).

    Note:

    If an invalid character is used in the name line, ignore the special character when determining the Name Control.

  6. If more than one Name Control is edited or no Name Control is edited and you cannot determine the correct Name Control and the return has an EIN, enter four hyphens ("- - - -" ) in the Name Control field.

In Care of Name

  1. The presence of a "%" (percent sign) or "C/O" followed by a name identifies an In Care of Name.

  2. Search the Name Line, Trade Name Line and Street Address for an In Care of Name.

  3. Enter "%" , space, and then the name immediately following the "%" or "C/O" indicator.

    Note:

    If the In Care of Name line is sent for verification and all information to the right of the "%" sign is correct, it is not necessary to remove any information that may appear to the left of the "%" . If all information to the right of the "%" is not correct, clear the field and enter the correct information.

  4. Returns identified by a solid black line above and to the left of the entity area or pound (#) signs to the left of the entity area, represent an IRS label under the National Change of Address (NCOA) program. These labels do not have a Check Digit and are not considered an IRS pre-printed label. The "In Care of Name" information REQUIRES ENTRY if present.

  5. Valid characters include alpha, numeric, "-" hyphen, "&" ampersand, and "%" percent sign. The field length is 35 positions long. You must spell out any other symbols (e.g., "$" input as Dollar).

  6. If the In Care of Name is illegible, enter "%-" (percent hyphen without a space between) this sends the document to Error Resolution System (ERS) for more research.

  7. If the document has an IRS pre-printed label without changes to the In Care of Name line, leave blank.

    Note:

    On IRS pre-printed labels if the only change is to the In Care Of (C/O) information, leave the Street, City, State and ZIP Code fields blank.

Entering Name Lines
  1. Enter the information exactly as shown from the name block on the document except as instructed below:

    1. Enter an ampersand (&) for the word "AND" or "OR" .

    2. Space for a period.

    3. Never enter two consecutive spaces.

    4. Space within a true last name where shown.

    5. Omit apostrophe (') if shown in name line. Do not space for an apostrophe.

    6. Omit slash (/) if shown in name line. Space for a slash.

    7. Enter a hyphen (-) where shown. Do not space before or after the hyphen.

    8. Enter numerics present in the name line.

  2. When entering the In Care of Name Line, valid characters include A-Z, 0-9, -, %. The system magnifies and highlights the Name Line, Trade Name, and the Address Line when the operator is in the In Care of Name Line.

Code and Edit Marks

  1. Edit marks and their descriptions:

    EDIT MARK DESCRIPTION
    "*" (Asterisk) The "*" is used to delete tax data or to show that an item is not transcribed.
    • For money amounts, enter the amount written to the left of the "*" , when applicable.

    • For Line Numbers, enter the money amount on the new line number.

    • When an "*" appears in the Entity part of the return, enter all information (characters) not lined through.

    Bracket (parentheses) or "—" (minus)
    • Shows an amount is input as negative.

    Circle
    • Used to delete the Received Date and other erroneous edit marks such as CCC, Action Code, Tax Years, etc.

      Note:

      A circle can be used to delete any field except for money amounts.

    Underline
    • Used to identify a Name Control that is to be entered.

    Line Through or circle
    • Used to delete Entity information that should not be entered, including a Check Digit.

    "/" (slash) or "X"
    • A "/" (slash) or "X" through an entire page shows the page is deleted.

    • If the "/" (slash) or "X" is on Page 1 and/or Page 2, delete the document as "Unprocessable 940" .

    • For all other pages, including Schedule A (except as described below), delete the page as "Unprocessable Attachment."

    • For Schedule A, if the "/" (slash) or "X" is only through Part 1 or Part 2, this means the information in that part should not be input.

Entering Code and Edit Fields

  1. Code and Edit fields listed and described in Exhibit 3.41.277-1, Transcription Sheets (Miscellaneous).

  2. Code and Edit fields along with Page 1 of the Image presents to the operator.

  3. Press the <CTRL>-S to get out of the Code and Edit fields (during OE and DV).

  4. Code and Edits writes the Computer Conditions Codes (CCC) either to the right of "You MUST fill out both pages of the form and SIGN IT," in the center of the return below Line 15 or in the bottom middle margin of the return. It is the responsibility of the operators to input all CCC edited, stamped, or underlined on the return.

  5. The following Computer Conditions Codes (CCC) automatically generate:

    IF THEN
    "Amended" box checked Generate CCC "G"
    "Successor employer" box checked Generate CCC "5"
    "No payments to employees in 20XX" box checked Generate CCC "9"
    "Final" box checked Generate CCC "F"
    "Form ID" code starts with "86" Generate CCC "P"

    Note:

    If CCC "G," "5," "9," and/or "F" is displayed in the CCC field and the box is not checked, or the box has an asterisk (*) edited to the left of it, remove the CCCs from the field. Also, make sure the box(es) is not checked erroneously.

    Note:

    If the Computer Condition Code (CCC) field is displayed for verification these condition codes must be transcribed if not present and the corresponding box is checked.

  6. CCC "F" and "G" require sight verification by the operator. If CCC "G" is input, the system prompts ONLY for the following fields if they are flagged for OE:

    • Name Control/Check Digit

    • Tax Year

    • Received Date

    • Type of Return - Amended

    • Type of Return - Successor employer

    • Type of Return - No payments to employees in 20XX

    • Type of Return - Final

    • CCC

    • Correspondence Received Date

    • Schedule R Fields

  7. The IRS Received Date, often referred to as "Received Date," is the date a document is first received by the IRS. It is stamped or edited on page 1 of the return.

  8. An "Official Received Date Stamp" may consist of no less than:

    1. "Month" — alpha or numeric characters.

    2. "Day" — two-digits: 01–31. (For example, -1, 1, or 01)

    3. "Year" — two or four digits.

    4. Area Office (AO), Campus, Field Office, TAC Office (or similar term for an IRS location) plus the City/Location of the site, or

    5. A functional area within one of these sites (e.g., Compliance Services Collection Operations (CSCO), Examination (Exam), Image Control Team (ICT), Consolidated Imaging System (CIS), Accounts Management (AM), etc.).

  9. The Received Date is input in MMDDYY format. For Example:

    • March -7, 2022 is input as 030722,

    • June 09, 2022 is input as 060922,

    • October 10, 2022 is input as 101022, etc.

  10. The "Received Date" must be an "Official" stamp or edited on the return. If the return has multiple received dates, enter the earliest received date that is not circled.

    Note:

    If the Received Date is handwritten, it DOES NOT have to have the word "Received."

    Caution:

    The Fax and EEFAX Received Dates are NOT VALID as an IRS Received Date.

  11. If the return has a "Post Mark Date" and a "Received Date," enter the Received Date.

  12. If the return has a "Post Mark Date" and a "Received Date," and the Received Date is circled, leave the field blank.

  13. If the "Post Mark Date" is the only date on the document, enter 090999.

  14. If the "Received Date" is incomplete, illegible, an invalid day of the month, or a future date, enter 090999. If unsure if the received date requires input, enter 090999.

Employer Identification Number (EIN)

  1. The EIN on the Form 940 page one must have nine numeric digits or blank.

  2. If the EIN is more than or less than nine-digits, illegible, missing, or there is more than one EIN present, press <F3> to clear the field and <Enter>.

  3. For Schedule R EIN instructions, see Exhibit 3.41.277-2, Transcription Sheet (Page 1, Page 2, Schedule A, Schedule R and Schedule R Continuation Sheet).

    Note:

    A return must have EITHER an EIN or Name Control to be processable. If the return has either the EIN or Name Control, continue processing. However, if the return does not have an EIN or a Name Control (both blank), delete the document as "Unprocessable 940."

Address Elements

  1. With the implementation of the Enhanced Entity Index File (EEIF) a window may appear asking "Is Address changed?" This message includes the In Care of Name Line (%), Street Address, City, State and ZIP Code. If the document has an IRS pre-printed address with no changes, you should answer "NO." You should answer "YES" if the IRS pre-printed address has changes (including % name line).

  2. If the return has an IRS pre-printed label without changes to the Street Address, City, State or ZIP, all these fields must be left blank during OE and/or DV. If any of the fields display information, press <F3> and <Enter> to remove the information from the field.

  3. If the return has an IRS pre-printed label without changes to the In Care of Name Line but has a change to the Address, leave the In Care of Name Line blank and enter the Street Address, City, State and ZIP.

  4. Returns identified by a solid black line above and to the left of the entity area or pound (#) signs to the left of the address, represent an IRS label under the National Change of Address (NCOA) program. These returns do not have Check Digits and are not considered an IRS pre-printed label, therefore all In Care of Name Line and Address information require entry.

  5. Enter the Street Address information exactly as shown on the document except as instructed below. See Exhibit 3.41.277-8, Valid Characters.

    1. Never enter "local" as the first word in the Street Address. Enter information to the right of "local" only.

    2. If the only Street Address is "local," , leave the street Address, City, State and ZIP Code blank. If any of the fields display information, press <F3> and <Enter> to remove the information from the field.

    3. If the Street Address has only the DBA, Trade Name or Business Name, leave the Street Address, City, State and ZIP Code blank. If any of the fields display information, press <F3> and <Enter> to remove the information from the field.

    4. If the Street Address has an EIN or SSN, DO NOT input this information. If the only Street Address is the EIN or SSN, leave the Street Address, City, State and ZIP Code blank.

  6. Enter street abbreviations as shown in Exhibit 3.41.277-3, Street Abbreviations.

    Note:

    Do not abbreviate proper names of the street in the Street Address field.

  7. If the Street Address and/or City is illegible, suspend the UW as "Poor Quality Image." If unable to correct the Street Address and/or City from the paper document, leave the Street Address, City, State and ZIP Code fields blank. If necessary, press <F3> and <Enter> to remove any information present in the fields.

    Note:

    If any of the address fields are blank, excluding the % Name Line, they all must be blank.

  8. If the Street Address and/or City are missing, leave the Street Address, City, State and ZIP Code fields blank. If necessary, press <F3> and <Enter> to remove any information that may be in the fields.

    Note:

    If any of the address fields are blank, excluding the % Name Line, they all must be blank.

  9. If return has a US Possession or other foreign address, delete the document as "Unprocessable 940" .

  10. If an address is input during OE or DV, all elements (Street Address, City, State and ZIP Code) must be entered.

  11. If two street addresses are present with the same City, State and ZIP Code, enter the first street address.

  12. If two addresses are present with different cities, states, and ZIP Codes, enter the first address.

  13. If there is a street address and a PO Box, enter only the PO Box. Treat both "POB" and "PO Drawer" as if they read PO Box.

  14. If a document has PO BOX, POB, PO Drawer or Post Office Box, you can enter an asterisk (*) followed by a space in the first two positions of the Street Address instead of "PO BOX." It is not necessary to change "PO BOX" to an asterisk if "PO BOX" is scanned.

    Example: Enter As:
    PO Box #24 * (space) 24

  15. Omit C/O or % (In Care Of) if shown with an address.

  16. Always enter "AND" if an ampersand (&) is shown in the address line.

  17. If @ is shown in the Street Address, enter "AT" .

  18. Major City Codes listed in Exhibit 3.41.277-4 may be used. The system generates a valid five-digit ZIP Code if a Major City Code is used, and a ZIP Code is not present.

  19. If North, South, East, or West is shown as part of the city name, use the standard abbreviation (i.e., North = N, South = S, etc.). Do Not use a Major City Code in this instance unless found in Exhibit 3.41.277-4, Alphabetical Listing of Major Cities with Major City Codes and Zone Improvement Plan (ZIP) Codes. Example: East Lansing, Mi = ET and South Bend, IN = SB.

    Example: Enter As:
    West Miami W Miami
    North Ogden N Ogden

  20. If a city has numerics, enter as alphas.

    Example:

    Enter 29 Palms as TWENTY NINE PALMS.

  21. Enter standard abbreviations for states.

  22. If the system presents all nine-digits of the ZIP Code correctly, accept them. If the ZIP Code requires correction, only enter the first five digits of the ZIP Code. If less than five digits use the system default ZIP Code.

  23. If there is no State, but a ZIP Code is present, press the <Enter> key in the ZIP Code field. This generates the State Code for this ZIP Code in the Status Line. Follow the screen prompts to accept this State Code or to enter a different State Code.

  24. If there is no ZIP Code but a State is present, press the <Enter> key in the ZIP Code field. The system generates the default ZIP Code for that State.

  25. If the State does not match the ZIP Code presented, delete the ZIP Code, and generate the default ZIP Code for this State.

  26. If both the State and ZIP Code are blank, leave the Street Address, City, State and ZIP Code blank. If necessary, press <F3> and <Enter> to remove any information that present in the fields.

  27. Transcribe Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (FPO) addresses with the proper two-character State Code followed by the corresponding unique five-digit ZIP Code.

    1. When APO, DPO or FPO is used, do not enter any other data in the City field.

    2. When APO, DPO or FPO is transcribed in the City field, the State Code field must correspond with the following ZIP Codes:

    1. ZIP CODE STATE CODE
      340 AA
      090–098 AE
      962–966 AP

    Note:

    Enter all APO/DPO/FPO addresses as follows:

    Example Enter As
    APO New York, NY 091XX APO AE 091XX
    FPO San Francisco, CA 962XX FPO AP 962XX
    DPO Miami, Fl 340XX DPO AA 340XX

Money Amount Fields

  1. All money fields consist of dollars and cents.

  2. Enter money amounts as follows:

    Amount on document Enter as
    0.03 03
    00.03 03
    0.3 30
    .035 03
    1. If dollars and cents amount is present, enter as is.

    2. If a dollar amount is present without cents, enter dollar amount and two zeros for cents.

    3. If a dollar amount is present and it is followed by a line, dash, or hyphen, enter dollar amount and two zeros for cents.

    4. If a dollar amount is present and the cents are lined through, enter dollar amount and two zeros for cents.

    5. If there is a single numeric digit in the cents column or following the period, enter the digit followed by a zero.

    6. If 3 or more digits appear in the cents column or following the period, enter the first two-digits.

    7. If money amount is larger than 15 numeric characters, enter only the first 15-digits.

    8. If money amount is a negative zero (e.g., -00, -0.00. -00.00, etc.), REMOVE it. Press <F3> to clear the field and then press <Enter>.

  3. Enter negative amounts (identified with a minus "-" before the amount or the amount is within brackets), where allowed, by leading the amount with a hyphen.

  4. If a negative money amount appears in a positive only field, enter amount as positive.

  5. If two or more money amounts appear on the same line, press <F3> to clear the field, and then press <Enter>, unless otherwise instructed.

  6. If the money amount is illegible, suspend the UW as "Poor Quality Image" (<F9>; press "S" ; select "Poor Quality Image" ).

  7. If after suspending for "Poor Quality Image" you still cannot determine the correct money amount from the physical document, press <F3> to clear the field and then press <Enter>.

  8. If a code or other non-monetary entry appears in a money field press <F3> to clear the field and then press <Enter>.

Poor Quality Image

  1. Occasionally the Image of the return presented to the OE or DV operator is unreadable. Some reasons for this include:

    • Writing on image too light,

    • Image too dark to read the writing,

    • Image illegible, or

    • Image incomplete, etc.

  2. When working in OE Image or DV Image, if you cannot determine the data for ANY field including the Street Address, City, State and ZIP Code, suspend the UW as "Poor Quality Image" (<F9>; press "S" ; select "Poor Quality Image" ).

    Note:

    This instruction DOES NOT include the EIN or Name Control. See IRM 3.41.277.11.1, Illegible Name Control/EIN.

  3. The Team Lead or designated employee reviews the Work Status Report for suspended "Poor Quality Image" items and pulls the original return/document from the block and gives to the employee that suspended the UW.

  4. The employee resumes the suspended block, corrects the data using the paper return and then gives the paper return back to the Team Lead or designated employee.

  5. The Team Lead or designated employee re-files the return in its original block.

Unprocessable Conditions

  1. Currently some returns cannot process through SCRIPS or require processing as OE Paper.

  2. Delete all returns determined as unprocessable by selecting "Unprocessable 940" for the Pull-Doc Report. (<Ctrl>-<Shift>-<Delete/Del>; select "Unprocessable 940" ).

  3. Some unprocessable conditions:

    1. Return does not have an EIN and Name Control (if either one of the EIN or Name Control is present, continue processing).

    2. Returns with a U.S. Possession or foreign address. (Processed through ISRP).

    3. If all transcription lines are not available for input due to the form being cut off or folded.

    4. Returns without BOTH entity and money amounts (entirely blank forms).

    5. Forms other than Form 940. (Processing of these returns is done using the correct SCRIPS program or through ISRP).

    6. Form has an "X" or "/" across the entire page without an explanation.

      Note:

      If only the Schedule A has an "X" or "/" through the page, delete the Schedule A only as an "Unprocessable Attachment."

    7. The Tax Year is 2005 or prior. (Processed through ISRP).

SCRIPS Transcription Sheets

  1. Exhibit 3.41.277-1, Transcription Sheets (Miscellaneous), Exhibit 3.41.277-2, Transcription Sheets (Form 940 Page 1, Page 2, Schedule A, Schedule R and Schedule R Continuation Sheet), represent specific data entry procedures.

Math Validations

  1. Line 9 - If present and Line 11 is also present, send to DV for sight verification.

  2. Line 11 - If present and Line 9 is also present, send to DV for sight verification.

  3. Line 12 - Should equal the sum of Lines 8, 9, 10, and 11. If not, sight verify Lines 7 (or 7a in 2012 only), 9, 10, 11, and 12, but only if these lines have not been previously verified.

  4. Line 14 - Should equal the difference between Line 12 minus Line 13. If not, send to DV for sight verification.

  5. Line 15 - Should equal the difference between Line 13 minus Line 12. If not, send to DV for sight verification.

  6. Line 15 check box - Verify box is picked up correctly. If box is checked, ensure the box has an "X." If box is not checked, remove the "X."

  7. SCRIPS performs column balancing for each money amount column for each Schedule R page to the first sub-total line of the page (Line 16 on first page, Line 25 on Continuation page). SCRIPS displays "Column out of balance by: $xxx.xx."

Other Validations

  1. Use the following to determine the need to input the Third Party Designee information:

    IF THEN
    The "Yes" box is checked
    1. Input an "X" in the "Yes" box and input the Personal Identification Number (PIN) in the PIN box.

    2. If the PIN is more than five characters (alpha and/or numeric) enter the first five characters only.

    3. If the PIN is less than five characters, enter all available characters and leave the rest blank.

    4. If the Personal Identification Number is not available or is illegible, leave blank.

    The "No" box is checked Leave the "Yes" box blank. Input the PIN, if present, using the information in 2 through 4 above.
    Both the "Yes" and "No" boxes checked Leave the "Yes" box blank. Input the PIN, if present, using the information in 2 through 4 above.
    Neither box is checked Leave the "Yes" box blank. Input the PIN, if present, using the information in 2 through 4 above.

    Note:

    If both the "Yes" and "No" boxes checked, the "Yes" box is sent to the operator for verification.

  2. SCRIPS tries to determine the presence of a signature in Part 7 on page 2. If SCRIPS detects a signature is present it continues processing. If SCRIPS does not detect a signature, it displays a message to the OE or DV operator.

  3. An "asterisk" (*), or notating "signature on file," or notating "signature on attachment," etc., in the signature box reflects a valid signature is on an attachment.

  4. Very often a preparer marks the signature line with an "X" indicating where the taxpayer should sign the return. When this happens:

    IF AND THEN
    An "X" is shown in the "SIGN your name here" box There is a name shown in the "Print your name here" box DO NOT correspond for a signature.
    An "X" is shown in the "SIGN your name here" box There is NOT a name shown in the "Print your name here" box Correspond for a signature using AC 225.

    Note:

    Temporary Guidance - Due to processing delays, use AC 232 until further notice.

  5. A signature of an individual, officer, partner, duly authorized agent, etc., affixed by rubber stamp, mechanical device, or computer-generated software to a return is acceptable. The signature may appear on either "Sign your name here" or "Print name and title" line. A signature refers to the name of the individual who attests that the information on the return is true, correct, and complete.

    Note:

    Rev. Proc. 2005–39 sets out the circumstances when facsimile signatures may be used for Form 940. This provision allows for the use of a Mechanical Device. A Mechanical Device includes typewritten signature, or those made by a computer output device (e.g., laser jet, inkjet, and dot matrix printers).

  6. Returns generated from the Account Management Services (AMS) being sent for processing may not have a signature. If there is an indication, in the signature area, CIS or AMS-Do Not Correspond for Signature, and the return has a CCC "3" , DO NOT input ERS Action Code (AC) 225. If the return does not have a CCC "3" , input ERS Action Code (AC) 225.

    Note:

    Temporary Guidance - Due to processing delays, use AC 232 until further notice.

    If "Do Not Correspond for Signature" is stamped or edited in the signature area, the operator answers "Yes" to the signature question.

  7. Use the information in (3) through (7) to determine if ERS AC 225 is needed:

    IF THEN
    Message "Is a signature present" displays on the screen.

    Note:

    This box may display in the center of page 2 or next to the signature area on page 2.

    • If signature is present in "Part 7" , answer "Yes" .

    • If signature is not present, in "Part 7" , answer "No" and enter AC 225, if not already present or AC 211 if edited in the lower left corner of page 1.

      Note:

      AC 211 always take precedence over AC 225.

    Note:

    Temporary Guidance - Due to processing delays, AC 211 and 225 are not being used; instead enter AC 231 in lieu of AC 211 and AC 232 in lieu of AC 225.

    Note:

    If you accidently answer "NO" and the signature is present, DO NOT enter an "Action Code."

  8. SCRIPS flags Line 1a for validation when both Line 1a and Line 1b are blank, or if a Schedule A is attached with Part 1 containing any entries.

  9. SCRIPS flags Line 1a for sight verification if the State Code is missing.

  10. SCRIPS flags Line 2 for sight verification if the box is marked.

  11. SCRIPS flags Schedule A for validation if Part 1 has multiple checked boxes.

  12. SCRIPS flags Page 1 Line 2, Page 1 Line 11 and Schedule A Part 2 Line 2a though line 2i (form years 2009 and 2010) or Schedule A associated money amounts (form years 2011 and later) for verification if Line 1a has a valid credit reduction state for the tax year entered on Form 940 Page 1 or if Schedule A Part 1 (2009 and 2010) or Schedule A (2011 and later) has any valid credit reduction state box marked for the tax year entered on Form 940 Page 1.

    Note:

    If Line 2 box presents for verification and presents blank, input an "X" to check the box.

  13. SCRIPS flags for sight verification any negative money amount on any Schedule R. If amount is still negative, accept negative amount.

  14. SCRIPS flags any money amount for sight verification that displays just a single "1."

  15. SCRIPS flags any money amount that is not numeric (excluding blank).

  16. SCRIPS flags for sight verification any money amount that is over one million dollars.

  17. SCRIPS flags each Schedule R page where the Schedule R Employer EIN does not equal the EIN on Page 1 of the 940. Display message "Employer EIN inconsistent. Please verify."

  18. SCRIPS requires Tax Year be validated during DV if not input during OE processing.

  19. OE Paper: SCRIPS places the input/entered Name Control on the generated image on Name Line 1.

  20. OE Paper: SCRIPS places the input/entered In Care of Name Line on the generated image on the Trade Name Line.

  21. SCRIPS requires the FUTA Wages lines on the Schedule A to be verified if the amount is over $1.00.

Block Status Window

  1. The Block Status window displays a more detailed status of the blocks/UWs in the search criteria data entered in the Block Search Criteria window.

  2. A change of operational parameters of blocks/UWs is completed in the Block Status window. Depending on the parameter, a change to the parameter for individual blocks/UWs or multiple blocks/UWs is completed at the same time.

    1. Press the <Alt>-A key combination for a selection of all blocks eligible for selection. This excludes blocks reflecting a status of "DELETE" or "DONE." The result is a check symbol on the selected blocks in the Block Selected for Update column.

    2. If you choose to not perform any updates on the selected blocks, you can deselect all blocks by pressing the <Alt>-A key combination.

    3. You could also choose to cancel the blocks selected and close the Block Status window by pressing the <Alt>-X key combination.

  3. Block status monitoring (IPS0697) window displays a more detailed status of the blocks/UWs.

Purging Documents

  1. Purge from the SCRIPS system the files including the document images, ASCII data, and statistical information once the blocks/units-of-work (UW) of documents process through SCRIPS and reach "accepted" by down-stream processing, and the transmittals have moved to archive.

    Note:

    Accepted means the output files and "the returns in those files" clear all error conditions. The only time you can purge documents prior to the two-week period is if the system gets to 80% capacity or after notifying headquarters.

  2. It is recommended a system purge occur a minimum of two weeks after the output date.

  3. Purge only those blocks/UWs available for purge. The system keeps track of blocks/UWs available for purge and only allows you to purge those blocks/UWs. SCRIPS does not allow any blocks waiting for Quality Review (QR) Block Summarization or flagged for Quality Review to purge.

  4. Do not purge files for reports before six weeks.

    Exception:

    Reports allow deletion after seven working days; however, six weeks is the preference.

  5. A deleted document and/or block/UW is removed from the system when the form type is purged. The remainder of the form types on SCRIPS operate in the same manner.

    Example:

    Deleted 941 documents/UWs are removed when a Form 941 Block purge is performed. The remainder of the form types operate in the same manner.

  6. A purge for the form type is initiated and activated before removal of deleted documents/blocks/UWs from the system. If you open a purge window but do not select any blocks for purge, the deleted documents/blocks/UWs do not leave the system. Until the deletion is properly done Documents/blocks/UWs remain on the system.

  7. Retained for 30 days after data is verified as converted to tape per Document 12990, Records Control Schedules, Record Control Schedule (RCS) 32, item 2, Service Center Recognition/Image Processing System (SCRIPS)previously processed under Record Control Schedule (RCS) 19, item 78, Correspondence Imaging System (CIS):(B) System Data, the physical documents (UWs scanned in the SCRIPS area). If systemic issues exist for downstream systems a longer period is enforced by headquarters staff.

Supervisor Section Form 940 Program Reports

  1. The following is a listing of the Form 940 reports available on SCRIPS:

    • IRM 3.41.277.17.1, Document Locator Number (DLN) Output Report

    • IRM 3.41.277.17.2, Assigned Document Locator Number (DLN) Report

    • IRM 3.41.277.17.3, Document Locator Number (DLN) Assignment Report

    • IRM 3.41.277.17.4, Actual Output Report

    • IRM 3.41.277.17.5, Workflow Status Report

    • IRM 3.41.277.17.6, Inventory Report

    • IRM 3.41.277.17.7, Production Report

    • IRM 3.41.277.17.8, Run Balancing Report

    • IRM 3.41.277.17.9, Pull Document Report

    • IRM 3.41.277.17.10, Throughput Statistics Report

    • IRM 3.41.277.17.11, Workstation Operator Statistics - Program and Function Summary Report

    • IRM 3.41.277.17.12, FI/DLN Cross Reference Report

Document Locator Number (DLN) Output Report

  1. The title of the report is 940 DLN Output Report (IPS10640).

  2. The report reflects the entire production for the site for a given time frame.

  3. The report shows the following:

    1. Service Center

    2. Run Date

    3. Page number

    4. Program number

    5. DLNs and a notation if it is a transmittal DLN or detail DLN

    6. File Location Code (FLC), Tax Class and Document Code (TAX/DOC), Julian date, Block number and Volume

Assigned Document Locator Number Report

  1. The title of the report is 940 Assigned DLN Report (IPS03339).

  2. The report reflects production for the individual scanner for a given time frame.

  3. The report shows the following:

    1. Program number

    2. Run Date and Time

    3. Scanner Job ID

    4. Start Time

    5. End Time

    6. DLNs and a notation if it is a transmittal DLN or detail DLN

    7. File Location Code (FLC), Tax Class and Document Code (TAX/DOC), Julian date, Block number and Volume

    8. The summary page for the scan job by document code and form type

Document Locator Number (DLN) Assignment Report

  1. The title of the report is 940 DLN Assignment Report (IPS10620).

  2. The report reflects the total number of DLN assignments by program number for a given time frame.

  3. The report shows the following:

    1. Service Center

    2. From and to date range

    3. Run Date and clock time

    4. Page number

    5. Program number

    6. Each Batch ID and the coinciding Block Number, Serial Number Range, Unrecognized Documents, Total Documents in Batch and Total Documents Output in Batch for each

    7. Total Documents for each program

    8. Total Documents Output per program

    9. Total Unrecognized Documents per program

Actual Output Report

  1. The title of the report is 940 Actual Output Report (IPS10650).

  2. The report reflects the entire production for the site for a given time frame.

  3. The report shows the following:

    1. Service Center

    2. FTP File ID number

    3. Run Date and time

    4. Page number

    5. Program number

    6. DLNs and a notation of actual output and number of deleted documents including deleted DLN’s.

    7. Batch or Form Subtotals

    8. Total for All Batches by each program or form type

    9. Total for All Batches Output

Workflow Status

  1. The title of the report is Workflow Status (IPS0698).

  2. This report lists the task/sub-task number, the sub-task description, blocks at the sub-task, total documents for the block, and documents ready for the sub-task. This report also shows percentages for system capacity used under the following three categories: General, IRP, and IRP/ACA/K1/941/940/Stand-Alone.

  3. This report is used to monitor documents and system capacity throughout each workday.

Inventory Report

  1. The title of the report is Inventory Report (IPS03350).

  2. The report reflects inventory for a given time frame reflecting the carry over form volume on the SCRIPS system.

  3. The report shows the following:

    1. Initial Inventory

    2. Process Date

    3. Returns Input

    4. Returns Deleted

    5. Returns Output

    6. Carry Over Inventory

    7. End Time

Production Report

  1. The title of the report is 940 Production Report (IPS10660).

  2. The report reflects the following scanned volumes and year to date output totals.

  3. The report shows the following:

    1. Service Center

    2. Run Date and clock time

    3. Page number

    4. Scanned volumes by document code and form type for today, subtotals and totals

    5. Output volumes by document code and form type and deletes for year to date along with cumulative, subtotals and totals

    6. Status summary for all functions for today/current and year to date cumulative

Run Balancing Report

  1. The title of the report is 940 Run Balancing Report (IPS10610).

  2. The report reflects the entire production for the site for a given date.

  3. The report shows the following:

    1. Service Center

    2. Run Date

    3. Page number

    4. FTP File ID number

    5. The file name (i.e., OCR1008 for form 940)

Pull Document Report

  1. The title of the report is Reimage/Pull Document Report (IPS00812).

  2. The report lists submissions and documents required to pull (or counted as deleted) for a date range.

  3. The report shows the following:

    1. Service Center

    2. Run Date

    3. Page # - Number

    4. Block

    5. Doc DLN/Seq# - Document DLN Sequence number

    6. App - Application FI, OE or DV

    7. SEID - Standard Employee Identification

      Note:

      An SEID of 000000 represents the SCRIPS system created the action based on programming and or specific responses to questions posed to the operator.

    8. Date/Time

    9. Reason

      Example:

      Exhibit 3.41.277-6, Pull Document Report

    The reason is one of the following pull document report codes:
    Report Reason Condition
    INVALID 940 Standalone Form 940 pg 1, or invalid record group, unprocessable
    UNREC F1332 F1332 identified
    >100 DOCS Each document identified after 100 records/DLN in a block have been identified
    INVALID FORM FI operator identified as an invalid form
    DELETE BLOCK Identified by operator to delete the block

Throughput Statistics Report

  1. The title of the report is Throughput Statistics Report (IPS06440).

  2. The report reflects processing function productions for a given date range.

  3. The report rows reflect the following process functions: Scandriver, Transport/Sync, OE Crossover, Form Identification, Block Verification, OE Image, OE Paper, Program Validation, Data Validation, QR Summarization, Block Output, Image Archive, Backup Image Archive and Block Purge.

  4. The report shows the following:

    1. Service Center

    2. From and to date range and clock time

    3. Run Date and clock time

    4. Page Number

    5. Processing Functions

    6. Total Blocks

    7. Total Documents

    8. Process Time

    9. Documents Per Hour

Workstation Operator Statistics Program and Function Summary Report

  1. The title of the report is Workstation Operator Statistics Program and Function Summary Report (IPS00803).

  2. The report displays the number of documents processed in each function for a given date range.

  3. The report rows reflect the following process functions: 460, 470, 480, 47X, and 48X.

  4. The report shows the following:

    1. Service Center

    2. From and to date range

    3. Run Date and clock time

    4. Page Number

    5. Function Code

    6. Program Number

    7. Process Time

    8. Total Key Strokes

    9. Document Per Hour

    10. Summary by Program

FI/DLN Cross Reference Report

  1. The title of the report is 940 FI/DLN Cross Reference Pull Report (IPS10670).

  2. The report lists submissions and documents that require renumbering within each batch of work for a given Output File ID.

  3. The report shows the following:

    1. Service Center

    2. Run Date and Time

    3. Page # - Number

    4. Output File ID number

    5. Output Date

    6. Program Numbers

    7. Batch

    8. Scan Block number

    9. Doc DLN/Seq# - Document DLN Sequence number

    10. New Block number

    11. New Doc DLN/Seq# - Document DLN Sequence number

    12. Total Reassigned DLNs for each individual program

      Example:

      Exhibit 3.41.277-7, 940 FI/DLN Cross Reference Report.

Post Document Preparation (Post-Doc Prep)

  1. Using the "DLN Output Report" from the tape run, pull the blocks for each listed batch, counting each block to ensure each listed, and only the listed, DLN on the "Output Report" is present.

  2. Re-print the updated Form 1332, Block and Selection Record, from BBTS. (It should include the actual DLN assigned by SCRIPS).

  3. Provide a copy of the "FI/DLN Cross Reference Report" and the "940 Pull Document Report" .

  4. Provide the correct cart card for listing programs by batches on the cart (ERS date card).

  5. If documents come in "stat boxes," it is the responsibility of Post-Doc Prep clerks to place the documents in gusset folders before releasing the work to Error Resolution.

  6. The colored or white folder(s)in the first slot of the batch cart or the first stat box for each batch holds documents that were sent to the "Scanner Reject Bin." Post-Doc Prep should:

    1. Remove the documents from the batch cart or first stat box.

    2. Review the batch (all blocks) to ensure all pages associated with the documents have been pulled.

    3. Write the program number associated with the documents on the first document or on a routing slip and route the documents to Code and Edit/Batching for processing.

      Note:

      If the documents require batching as "ISRP," include that information on the routing slip.

  7. The Post-Doc Prep process MUST be completed with-in 24 hours of output.

  8. "FI/DLN Cross Reference Report"

    1. Some documents coming from SCRIPS do not have a sprayed DLN but instead have a six-digit FI number and either the first 11-digits of the Block DLN (first 10 FI documents) or the first eight-digits of the Block DLN (all remaining FI documents in the block). Using the DLN cross-reference report, find the electronically assigned DLN and enter it on Page 1 of the Form 940 (writing the DLN on page 2 and Schedule A is optional). See Exhibit 3.41.277-7, 940 FI/DLN Cross Reference Report

    2. Place the return (page 1, page 2 Schedule A, and Schedule R) in ascending sequence number order within the block.

    3. Notate the Form 1332 for any document (sequence number) that is moved in the batch (e.g., FI999999).

      Example:

      If sequence 32 has been renumbered to sequence 99, in the box for sequence 32 notate "moved to 99" .

    4. If document is missing, research "Document Review" on the SCRIPS system to determine if the document is missing from the block or if it required deletion. If the document has not been deleted, review entire block/batch for the missing document. ONLY as a last resort, if unable to find the document, print a copy of the return from SCRIPS and place it in the block.

    5. Circle the Document count on Form 1332.

    6. For Perfect, place the BBTS generated Form 1332 in the gusset folder with the correct Form 940 documents.

    7. For Imperfect, remove the SCRIPS breaker sheet and replace with the BBTS generated Form 1332. Route the SCRIPS breaker sheets back to SCRIPS Pre-Doc Prep area.

    8. Ensure the attachments in colored folders belong with the documents in the gusset folder.

  9. Occasionally, because of a block of returns having a high unrecognized Page 1 problem, a second block DLN is assigned. The new DLN can be located on the "FI/DLN Cross-Reference Report." When this occurs:

    1. Pull the return (page 1, page 2, Schedule A, and Schedule R),

    2. If block is Imperfect, pull associated attachments and place inside a blue folder,

    3. Perfect the DLN on the returns,

    4. Print Form 1332,

    5. Prepare a gusset folder writing/stamping the DLN on it,

    6. Place the return (page 1, page 2 and Schedule A, and Schedule R) and blue folder (attachments) inside the gusset folder,

    7. Place the gusset folder in the proper DLN sequence order in the batch.

  10. The "940 Pull Document Report" is a report that lists all documents that were deleted by the Scanner, the Scanner Operator, or the General Clerk. See Exhibit 3.41.277-6, 940 Pull Document Report.

    1. The 940 Pull Document Report needs to be printed after every output by the person locally designated to do so. Review each item on the report. Only pull returns when all pages have been deleted. NEVER PULL THE RETURN IF BOTH PAGE 1 (XX01) AND PAGE 2 (XX02) IS NOT LISTED ON THE REPORT. If only page 3 (XX03) and/or page 4 (XX04) and/or page 5 (XX05) is listed on the report, DO NOT pull the return. If the complete return is not being pulled, leave other deleted pages in the batch where located.

      Note:

      If unsure of action to take (e.g., page 2 and page 3 listed but page 1 is not listed, page 1 and page 3 is listed but page 2 is not listed, page 2 is listed but page 1 is not listed), research "Document Review" on the SCRIPS system to determine if the document has been deleted.

    2. The report references each item needing pulled listing the batch number, block number, DLN or FI reference number, and the reason for the deletion (Systemic, OE, DV, etc.).

      IF THEN
      The DLN is present Locate the document (page 1, page 2, Schedule A, Schedule R, and attachments) within the block. Pages may not necessarily be in sequential order.
      1. Notate on Form 1332 the document/return has been deleted.

      2. Line thru the DLN on all pages of the document. If two DLNs are present, place a band-aid over both DLNs on page 1, page 2 and Schedule A, and Schedule R.

      3. Keep pulled documents in program order and route to Batching/Code and Edit for perfection and processing

      An FI number is present Locate the item to pull within the block
      1. If the pulled item is page 1, search for page 2, Schedule A and attachments associated with page 1. Pull these even if not listed on the Pull Doc Report. Line through the FI number/DLN and associate with page 1. Maintain integrity (program) and route to Batching/Code and Edit for perfection and processing.

      2. If the item needing pulled is a page 2 and/or Schedule A (page 1 is not on list), try to associate with a valid page 1 in the block. It is the centers option if the page 1 DLN is written on the page 2 and/or Schedule A. If unable to find a valid page 1, line through the FI number on both page 2 and Schedule A and/or Schedule R and route to Batching/Code and Edit for perfection and processing.

      Neither a DLN nor FI number is present Locate the block to pull.
      1. Remove the block from the batch.

      2. Line thru all DLNs and/or FI numbers on all pages of the documents within the block. If two DLNs or FI numbers are present, place a band-aid over all the numbers on page 1, page 2, Schedule A, and Schedule R.

      3. Keep pulled documents in program order and route to Batching/Code and Edit for perfection and processing.

      Note:

      Occasionally the reason a document is deleted is because the Form ID code, located in the upper right margin, is incorrect (for example: Page 2 has a Form ID of 850106, 860106, etc.). When this happens, black out the Form ID code prior to sending for processing.

      Caution
      Do not use felt tip markers to black out information.
      Use a black ink pen or pencil.

  11. Once the FI DLN Cross-reference Report and 940 Pull Document Report processing has been completed do the following:

    1. For Perfect place the BBTS generated Form 1332 in the gusset folder with the correct Form 940.

    2. For Imperfect remove the SCRIPS breaker sheet and replace it with the BBTS generated Form 1332. Route the SCRIPS breaker sheets to the Pre-Doc Prep function.

    3. Circle the document/return count on Form 1332 (the next number after the last sequence number assigned). The only exception is if the last sequence number is 99.

    4. Ensure the attachments in colored folders for Imperfect belong with the documents/returns in the gusset folder.

    5. Write or stamp the DLN on the gusset folder.

    6. Make sure the documents/returns within the gusset folder are in sequential DLN order. Post-Doc Prep is responsible for ensuring the DLN is legible on page 1 of all documents/returns. If necessary, correct or rewrite the DLN to make it readable. (Writing the DLN on page 2, Schedule A or Schedule R is optional)

      Note:

      If necessary, write the DLN in the right margin of the return.

    7. Ensure the blocks within the batch are in DLN order in the stat box or on the batch cart.

    8. Route the completed batches to the Error Resolution System (ERS)Control Unit.

Transcription Sheets (Miscellaneous)

The table below explains the screen prompts, description, and instructions for the Entity part of the return, Code and Edit fields and other Miscellaneous fields.

Form 940

OE/DV Screen Prompt Description Instructions
Check Digits Check Digit Enter the Check Digit if present. If not present, press <Enter> key. Refer to IRM 3.41.277.11.2.1, Name Control/Check Digit for complete instructions.
Name Ctrl Name Control If Check Digit is not present, enter the Name Control. Refer to IRM 3.41.277.11.2.2, Name Control/Check Digit for complete instructions.
EIN Employer Identification Number Enter the EIN from the preprinted label or from the EIN box. Refer to IRM 3.41.277.11.6, Employer Identification Number (EIN) for complete instructions.
In Care of Name In Care of Name Line Enter "%" , space, and then the name immediately following the "%" sign or "C/O" indicator on the document. If document has an IRS pre-printed label, without changes, leave blank. If the information is illegible, enter "%-" . Refer to IRM 3.41.277.11.3, In Care of Name for complete instructions.
Address Street Address Enter the street address, if present. Refer to IRM 3.41.277.11.7, Address Elements for complete instructions.
City City Enter the city or Major City Code as appropriate. Refer to IRM 3.41.277.11.7, Address Elements for complete instructions.
State State Enter the standard state abbreviation. If Major City Code is entered, this field is bypassed. Refer to IRM 3.41.277.11.7, Address Elements for complete instructions.
ZIP Code ZIP Code Enter the ZIP Code. If missing press <Enter> to generate the generic ZIP Code. Refer to IRM 3.41.277.11.7, Address Elements for complete instructions.
Rec Date Received Date Enter the six-digit received date in MMDDYY format. Ignore the Century "20" . The received date is shown on page 1 of the return. If the received date is incomplete or illegible, enter 090999. Refer to IRM 3.41.277.11.5, Entering Code and Edit Fields for complete instructions.

Note:

If the Received Date is handwritten, it DOES NOT have to have the word "Received."

Comp Cond Computer Condition Code (CCC) Enter information edited, stamped, or underlined to the right of You MUST fill out both pages of this form and SIGN IT, in the center below line 15, or in the bottom middle margin, after generated codes if present. If the entered CCC is invalid, delete the invalid code and continue processing the valid codes. Valid codes include D, J, R, F, G, O, P, W, X, 3, 4, 5, 7, 9, or blank. Refer to IRM 3.41.277.11.5, Entering Code and Edit Fields, for complete instructions.

Note:

For CCC "G," the system prompts for the following fields if they are flagged for OE: Name Control/Check Digit, Tax Year, Received Date, CCC, and the Schedule R fields.

ERS Action ERS Action Codes Computer-generated or entered from bottom left corner as edited. Valid codes are 211 through 499.

Note:

AC 211 takes precedence over all other Action Codes.

Note:

Temporary Guidance - Due to processing delays, AC 211 and 225 are not being used; instead enter AC 231 in lieu of AC 211 and AC 232 in lieu of AC 225.

Type of Return Type of Return box Enter an "X" in all boxes marked by the taxpayer.
Tax Year Tax Year The Tax Year is a MUST ENTER FIELD and requires two consecutive matching entries.
  1. Enter the tax year from the tax year in the title of the form.

  2. Enter the tax year from the preprinted label.

  3. Enter the information written by the taxpayer.

  4. If unable to determine the tax year, process as current year.

Note:

The tax year must be 2006 and subsequent.

Transcription Sheets (Form 940, Page 1, Page 2, Schedule A, Schedule R, and Schedule R Continuation Sheet)

Form 940 - Page 1

OE/DV Screen Prompt Description Instructions
State Code [Line 1a] Paid State Unemployment Tax in one state only. Enter the two-character state code.
  1. If the state code is missing and line 1b is blank, enter the state code from the entity section of the return.

  2. If line 1a is presented for verification and line 1b is marked, leave line 1a blank.

  3. If line 1a is presented for verification and line 1b is blank, enter the information from line 1a or from the entity section if line 1a is blank.

  4. If the state code is missing or illegible in the entity section of the return, leave blank.

  5. If the state code is Invalid, take from the entity area.

Note:

If you see a state code "ZZ," leave blank.

Multi-State [Line 1b] Paid State Unemployment Tax in more than one state. Enter an "X" if box marked.
Credit Red [Line 2] Paid Wages in Credit Reduction State Enter an "X" if box marked.

Note:

Enter the "X" only if the box presents during input or validation.

FUTA Wages [Line 7] Total taxable FUTA wages paid Enter amount from line 7.

Note:

Enter the amount from line 7a for tax year 2011 ONLY.

FUTA Wages before 7/1/2012 [Line 7b] FUTA wages paid before 7/1/2012 Enter amount from line 7b.

Note:

Enter the amount from line 7b for tax year 2011 forms ONLY. If tax year is 2006-2010 or 2012 and subsequent, field does not display to operator.

FUTA Wages before 7/1/2012 x .008 [Line 7c] 7b x .008 Enter amount from line 7c.

Note:

Enter the amount from line 7c for tax year 2011 forms ONLY. If tax year is 2006-2010 or 2012 and subsequent, field does not display to operator.

FUTA Wages after 6/30/2012 [Line 7d] FUTA wages paid after 6/30/2012 Enter amount from line 7d.

Note:

Enter the amount from line 7d for tax year 2011 forms ONLY. If tax year is 2006-2010 or 2012 and subsequent, field does not display to operator.

FUTA Wages after 6/30/2012 x .006 [Line 7e] 7d x .006 Enter amount from line 7e.

Note:

Enter the amount from line 7e for tax year 2011 forms ONLY. If tax year is 2006-2010 or 2012 and subsequent, field does not display to operator.

FUTA Tax before Adj [Line 8] FUTA tax before adjustments Enter amount from line 8.
Adjustments [Line 9] All FUTA wages were excluded from state unemployment tax Enter amount from line 9.
Excluded Wages [Line 10] Some FUTA wages were excluded from state unemployment tax or any state unemployment tax was paid late Enter amount from line 10.
Credit Red Amt [Line 11] Credit Reduction from Schedule A Enter amount on line 11.

Note:

Enter the amount from line 11 for tax year 2010 and subsequent. If tax year is 2006-2009, field does not display to operator.

Adjusted Total [Line 12] Total FUTA after adjustments Enter amount on line 12.
Total Deposits [Line 13] FUTA tax deposited Enter amount on line 13.
Balance Due [Line 14] Balance Due Enter amount on line 14.
Overpayment [Line 15] Overpayment Enter amount on line 15.
Send Refund Refund Indicator (Send a refund check box) Enter an "X" if only the "Send a refund" box is checked. If both boxes have checks, no box is checked, or "Apply to next return" box is checked, leave blank (press <Enter>).

Form 940 - Page 2

OE/DV Screen Prompt Description Instructions
1st Quarter 1st Quarter FUTA tax liability Enter amount on line 16a.
2nd Quarter 2nd Quarter FUTA tax liability Enter amount on line 16b.
3rd Quarter 3rd Quarter FUTA tax liability Enter amount on line 16c.
4th Quarter 4th Quarter FUTA tax liability Enter amount on line 16d.
3rd Party Yes Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? (Third Party Designee Check box) Enter an "X" if "Yes" box only is checked. If both boxes have checks or the "No" box is checked, leave blank. Refer to IRM 3.41.277.14, Other Validations for complete instructions.
3rd Party Pin Third Party Designee’s ID Number Enter the Third Party Designee’s ID number as shown. Refer to IRM 3.41.277.14, Other Validations for complete instructions.
PTIN Preparer’s PTIN Enter as shown. This entry is the "Preparer TIN," that consists of the letter "P," followed by eight numerics.

Note:

If information appears other than in designated box (i.e., stamp information) enter it.

If incomplete, illegible, more or less than nine characters, press <F3> to clear the field and <Enter>. If more than one PTIN, enter the first one only.
Firms EIN Firms EIN Enter nine numeric characters. If not available, illegible, more or less than nine, press <F3> to clear the field and <Enter>.

Note:

If information appears other than in designated box (i.e., stamp information) enter it.

Prep Phone Preparer’s Telephone Number Enter the Preparer’s Telephone Number.
  1. If the number has 11-digits and the first digit is 1, skip the first digit and input the remaining 10-digits.

  2. For all other 11-digits numbers, or numbers with less than 10-digits, or numbers with more than 11-digits, or numbers that are illegible; press <F3> to clear the field and <Enter>.

Note:

If information appears other than in designated box (i.e., stamp information) enter it.

Signature Signature Presence When the message "Is a signature present" displays on the screen. Enter "Y" for Yes, or "N" for No. Refer to IRM 3.41.277.14, Other Validations for complete instructions.

Form 940 - Schedule A

OE/DV Screen Prompt Description Instructions
FUTA State (Line 1 through Line 53) States where unemployment was paid this year Enter an "X" in every box (to the left of the State abbreviation) marked by the taxpayer. If no boxes have checks leave blank.

Note:

It is not mandatory every state have a money amount and is not mandatory every money amount have a state box checked. Enter as shown.

FUTA Wages

Note:

This field only displays if the State is a Credit Reduction state for Tax Year entered on page 1 of return.

FUTA Taxable Wages Enter amounts from FUTA Taxable Wages column that corresponds to the State Code.

Note:

It is not mandatory every state have a money amount and is not mandatory every money amount have a state box checked. Enter as shown.

FUTA Wages (Line 2a) Line 2a is for 2010 and prior years only Wages paid in a credit reduction state Enter amounts from line 2a.
FUTA Wages (Line 2c) Line 2c is for 2010 and prior years only Wages paid in a credit reduction state Enter amounts from line 2c.
FUTA Wages (Line 2e) Line 2e is for 2010 and prior years only Wages paid in a credit reduction state Enter amounts from line 2e.
FUTA Wages (Line 2g) Line 2g is for 2010 and prior years only Wages paid in a credit reduction state Enter amounts from line 2g.
FUTA Wages (Line 2i) Line 2i is for 2010 and prior years only Wages paid in a credit reduction state Enter amounts from line 2i.

Reminder:

If any field on the Schedule A is illegible, suspend the UW as "Poor Quality Image" (<F9>; press "S" ; select "Poor Quality Image" ). If after suspending for "Poor Quality Image" you still cannot determine the correct field entry from the physical document, press <F3> to clear the field and then press <Enter>.

Form 940 - Schedule R and Schedule R Continuation Sheet

Note:

Schedule R is only valid for Tax Period 2011 and subsequent.

Reminder:

For instructions for processing the Stand-Alone 940 Schedule R see IRM 3.41.276, Optical Character Recognition Scanning Operations-Form 941 and Schedule R Processing on Service Center Recognition/Image Processing System.

OE/DV Screen Prompts Description Instructions
Enter Form Layout Year Valid Schedule R form year Enter last two-digits from form code ID in top right corner of form. Valid entries are "10, 11, 12, or 17."
EIN Employer EIN from top of page Enter the Employer EIN from the top of the page.
  1. If Schedule R EIN is different from EIN on page 1, the screen displays the EIN from page 1 and "Employer EIN inconsistent, Please Verify" displays on the bottom of the screen.

  2. Correct any invalid characters, press <Enter>.

  3. If EIN on Schedule R is entered correctly and is different from the EIN on page 1, press <Enter>.

  4. If the Schedule R EIN is blank, press the <Ctrl>-D key combination. This duplicates the EIN from page 1 of the form.

  5. If the number is incomplete or illegible, input the available numbers and insert a period in the remaining spaces (91.111.11 or 911111...).

  6. If the EIN from the Schedule R and page 1 is missing, enter nine periods.

  7. If the EIN has more than nine-digits, enter the first nine-digits.

Section 3504 Agent

Reminder:

Use these instructions for 2017 and subsequent revisions only.

Type of Filer-Section 3504 Agent Enter an "X" if the Section 3504 Agent box is marked.
CPEO

Reminder:

Use these instructions for 2017 and subsequent revisions only.

Type of Filer-Certified Professional Employer Organization (CPEO) Enter an "X" if the CPEO box is marked.
LN 1 Col a EIN

Note:

This appears for Lines 2 through 15 for tax years 2011 and subsequent of the Schedule R and Lines 1 through 22 for tax years 2017 and subsequent/Lines 1 through 25 for tax years 2011-2016 of the Schedule R Continuation Sheet.

Clients Employer. Identification Number EIN Enter the Clients EIN from column (a):
  • box 1 through 15 of Sch R and/or box 1 through 22 of Sch R Continuation Sheet for tax years 2017 and subsequent.

  • box 1 through 15 of Sch R and/or box 1 through 25 of Sch R Continuation Sheet for tax years 2011-2016.

  1. EIN must be nine positions. Valid characters include 0–9 and period (.).

  2. If number is more than nine numeric, enter only the first nine-digits.

  3. If any number is illegible, enter a period (.) in place of the number (91.111.11 or 911111...).

  4. If the number is incomplete, input the available numbers and put a period in the remaining spaces.

  5. If the number is missing, put in nine periods.

  6. Cannot be blank if money amounts are present on same line.

LN 1 Col b St Code

Note:

This appears for Lines 2 through 15 for tax years 2011 and subsequent of the Schedule R and Lines 1 through 22 for tax years 2017 and subsequent/Lines 1 through 25 for tax years 2011-2016 of the Schedule R Continuation Sheet.

State abbreviation from Form 940 Line 1a or Schedule A (Form 940) Enter the state code from column (b):
  • box 1 through 15 of Sch R and/or box 1 through 22 of Sch R Continuation Sheet for tax years 2017 and subsequent.

  • box 1 through 15 of Sch R and/or box 1 through 25 of Sch R Continuation Sheet for tax years 2011-2016.

LN 1Col c Typ wag

Note:

This appears for Lines 2 through 15 of the Schedule R and Lines 1 through 22 of the Schedule R Continuation Sheet for tax years 2017 and subsequent.

 

Reminder:

Use these instructions for 2017 and subsequent years only.

Type of Wages, tips and other compensation (CPEO Use Only) Enter the Type of Wages from column (c) box 1 through 15 of Sch R and/or box 1 through 22 of Sch R Continuation Sheet for tax years 2017 and subsequent.
  1. If Type of Wage is invalid, delete the invalid code. Valid codes include A, B, C, D, and blank.

  2. If more than one code is present, press <F3> to clear the field and then press <Enter>.

  • LN 1 Col d FUTA Wages (for tax years 2017 and subsequent)

  • LN 1 Col c FUTA Wages (for tax years 2011-2016)

 

Note:

This appears for Lines 2 through 15 for tax years 2011 and subsequent of the Schedule R and Lines 1 through 22 for tax years 2017 and subsequent/Lines 1 through 25 for tax years 2011-2016 of the Schedule R Continuation Sheet.

Total Taxable FUTA wages allocated to the listed client EIN from Form 940, line7. (line 7a for tax year 2011) Enter the money amount from:
  • column (d) box 1 through 15 of Sch R and/or box 1 through 22 of Sch R Continuation Sheet for tax years 2017 and subsequent.

  • column (c) box 1 through 15 of Sch R and/or box 1 through 25 of Sch R Continuation Sheet for tax years 2011-2016.

  • LN 1 Col e Adjust FUTA (for tax years 2017 and subsequent)


  • LN 1 Col d Adjust FUTA (for tax years 2011-2016)

 

Note:

This appears for Lines 2 through 15 for tax years 2011 and subsequent of the Schedule R and Lines 1 through 22 for tax years 2017 and subsequent/Lines 1 through 25 for tax years 2011-2016 of the Schedule R Continuation Sheet.

Total Adjustment to FUTA tax allocated to the listed client EIN from Form 940, line 9 or line 10. Enter the money amount from:
  • column (e) box 1 through 15 of Sch R and/or box 1 through 22 of Sch R Continuation Sheet for tax years 2017 and subsequent.

  • column (d) box 1 through 15 of Sch R and/or box 1 through 25 of Sch R Continuation Sheet for tax years 2011-2016.

  • LN 1 Col f Cred. Red (for tax years 2017 and subsequent)

  • LN 1 Col e Cred. Red (for tax years 2011-2016)

 

Note:

This appears for Lines 2 through 15 for tax years 2011 and subsequent of the Schedule R and Lines 1 through 22 for tax years 2017 and subsequent/Lines 1 through 25 for tax years 2011-2016 of the Schedule R Continuation Sheet.

Credit reduction amount allocated to the listed client EIN from Form 940, line 11. Enter the money amount from:
  • column (f) box 1 through 15 of Sch R and/or box 1 through 22 of Sch R Continuation Sheet for tax years 2017 and subsequent.

  • column (e) box 1 through 15 of Sch R and/or box 1 through 25 of Sch R Continuation Sheet for tax years 2011-2016.

  • LN 1 Col g FUTA Tax Adj (for tax years 2017 and subsequent)

  • LN 1 Col f FUTA Tax Adj (for tax years 2011-2016)

 

Note:

This appears for Lines 2 through 15 for tax years 2011 and subsequent of the Schedule R and Lines 1 through 22/ Lines 1 through 25 for tax years 2011-2016 of the Schedule R Continuation Sheet.

Total FUTA Tax after Adjustments allocated to the listed client EIN from Form 940, line 12. Enter the money amount from:
  • column (g) box 1 through 15 of Sch R and/or box 1 through 22 of Sch R Continuation Sheet for tax years 2017 and subsequent.

  • column (f) box 1 through 15 of Sch R and/or box 1 through 25 of Sch R Continuation Sheet for tax years 2011-2016.

  • LN 1 Col h Tot FUTA Dep (for tax years 2017 and subsequent)

  • LN 1 Col g Tot FUTA Dep (for tax years 2011-2016)

 

Note:

This appears for Lines 2 through 15 for tax years 2011 and subsequent of the Schedule R and Lines 1 through 22 for tax years 2017 and subsequent/Lines 1 through 25 for tax years 2011-2016 of the Schedule R Continuation Sheet.

Total FUTA Tax deposits from Form 940, line 13, plus any payments made with the return allocated to the listed client EIN. Enter the money amount from:
  • column (h) box 1 through 15 of Sch R and/or box 1 through 22 of Sch R Continuation Sheet for tax years 2017 and subsequent.

  • column (g) box 1 through 15 of Sch R and/or box 1 through 25 of Sch R Continuation Sheet for tax years 2011-2016.

  • Line 16/Line 23 Column c through Column h (for tax years 2017 and subsequent)

  • Line 16/Line 26 Column c through Column g (for tax years 2011-2016)

Subtotal for Clients. Enter the money amount from:
  • column (c) through column (h) box 16 of Sch R and/or box 23 of Sch R Continuation Sheet for tax years 2017 and subsequent.

  • column (c) through column (g) box 16 of Sch R and/or box 26 of Sch R Continuation Sheet for tax years 2011-2016.

  • Line 17 Column c through Column h (for tax years 2017 and subsequent)

  • Line 17 Column c through Column g (for tax years 2011-2016)

Combined subtotals of all Continuation Sheets. Enter the money amount from:
  • column (c) through column (h) box 17 of Sch R for tax years 2017 and subsequent.

  • column (c) through column (g) box 17 of Sch R for tax years 2011-2016.

  • Line 18 Column c through Column h (for tax years 2017 and subsequent)

  • Line 18 Column c through Column g (for tax years 2011-2016)

Form 940 amounts for your employees. Enter the money amount from:
  • column (c) through column (h) box 18 of Sch R for tax years 2017 and subsequent.

  • column (c) through column (g) box 18 of Sch R for tax years 2011-2016.

  • Line 19 Column c through Column h (for tax years 2017 and subsequent)

  • Line 19 Column c through Column g (for tax years 2011-2016)

Total of Lines 16, 17 and 18. Enter the money amount from:
  • column (c) through column (h) box 19 of Sch R for tax years 2017 and subsequent.

  • column (c) through column (g) box 19 of Sch R for tax years 2011-2016.

Reminder:

Schedule R is only valid for tax year 2011 and subsequent. If any field on the Schedule R is illegible, suspend the UW as "Poor Quality Image" (<F9>; press "S" ; select "Poor Quality Image" ). If after suspending for "Poor Quality Image" you still cannot determine the correct field entry from the physical document press <F3> to clear the field and then press <Enter>.

Street Abbreviations

Street abbreviations that must be used when it is necessary to reduce the address to 35 characters. It is not necessary to abbreviate any word if the address is less than 35 characters (including spaces). However, if the word is abbreviated or spelled out, it must agree with the chart below.

Note:

Abbreviate North, South, East, and West only when it is used as a direction of a street, avenue, etc.

WORD ABBREVIATION
Air Force Base AFB
Alley ALY
Annex ANX
Arcade ARC
Apartment APT
Avenue AVE
Basement BSMT
Bayou BYU
Beach BCH
Bend BND
Bluff(s) BLF(S)
Bottom BTM
Boulevard BLVD
Branch BR
Bridge BRG
Brook(s) BRK(S)
Building BLDG
Burg(s) BG(S)
Bypass BYP
Camp CP
Canyon CYN
Cape CPE
Causeway CSWY
Center(s) CTR(S)
Circle(s) CIR(S)
Cliff(s) CLF(S)
Club CLB
Common(s) CMN(S)
Corner(s) COR(S)
Course CRSE
Court(s) CT(S)
Cove(s) CV(S)
Creek CRK
Crescent CRES
Crest CRST
Crossing XING
Crossroad(s) XRD(S)
Curve CURV
Dale DL
Dam DM
Department DEPT
Divide DV
Drive(s) DR(S)
East E
Estate(s) EST(S)
Expressway EXPY
Extension(s) EXT(S)
Ferry FRY
Field(s) FLD(S)
First 1ST
Flat(s) FLT(S)
Floor(s) FL(S)
Ford(s) FRD(S)
Forest FRST
Forge(s) FRG(S)
Fork(s) FRK(S)
Fort FT
Freeway FWY
Front FRNT
Garden(s) GDN(S)
Gateway GTWY
Glen(s) GLN(S)
Green(s) GRN(S)
Grove(s) GRV(S)
Hanger HNGR
Harbor(s) HBR(S)
Haven HVN
Heights HTS
Highway HWY
Highway Contract HC
Hill(s) HL(S)
Hollow HOLW
Inlet INLT
Island(s) IS(S)
Junction(s) JCT(S)
Key(s) KY(S)
Knoll(s) KNL(S)
Lake(s) LK(S)
Landing LNDG
Lane LN
Light(s) LGT(S)
Loaf LF
Lobby LBBY
Lock(s) LCK(S)
Lodge LDG
Lower LOWR
Manor(s) MNR(S)
Meadow(s) MDW(S)
Mill(s) ML(S)
Mission MSN
Motorway MTWY
Mount MT
Mountain(s) MTN(S)
Neck NCK
North N
Northeast NE
Northwest NW
Office OFC
One fourth, One quarter 1/4
One half 1/2
Orchard ORCH
Overpass OPAS
Parkway PKWY
Passage PSGE
Penthouse PH
Pine(s) PNE(S)
Place PL
Plain(s) PLN(S)
Plaza PLZ
Point(s) PT(S)
Port(s) PRT(S)
P.O. Box See IRM 3.41.277.11.7 (14) for instructions.
Prairie PR
Private Mail Box PMB
Radial RADL
Ranch RNCH
Rapid(s) RPD(S)
Rest RST
Ridge(s) RDG(S)
River RIV
Road(s) RD(S)
Room RM
Route RTE
Rural Route RR
Second 2ND
Shoal(s) SHL(S)
Shore(s) SHR(S)
Skyway SKWY
South S
Southeast SE
Southwest SW
Space SPC
Spring(s) SPG(S)
Spurs SPUR
Square(s) SQ(S)
Station STA
Stravenue STRA
Stream STRM
Street(s) ST(S)
Suite STE
Summit SMT
Terrace TER
Third 3RD
Throughway TRWY
Trace TRCE
Track TRAK
Trafficway TRFY
Trail TRL
Trailer TRLR
Tunnel TUNL
Turnpike TPKE
Underpass UPAS
Union(s) UN(S)
Upper UPPR
Valley(s) VLY(S)
Viaduct VIA
View(s) VW(S)
Village VLG
Village(s) VLG(S)
Ville VL
Vista VIS
Well(s) WL(S)
West W

Alphabetical Listing of Major Cities with Major City Codes and Zone Improvement Plan (ZIP) Codes

Alphabetical listing of Major Cities Codes (MCC) in city order.

CITY STATE MCC ZIP CODE
Aberdeen SD AD 574
Abilene TX AB 796
Akron OH AK 443
Albany GA AY 317
Albany NY AL 122
Albuquerque NM AQ 871
Alexandria VA AX 223
Alhambra CA YA 918
Allentown PA AW 181
Amarillo TX AM 791
Anaheim CA AH 928
Anchorage AK AN 995, 996
Anderson SC AJ 296
Ann Arbor MI AP 481
Arlington TX IA 760
Arlington VA AR 222
Arvada CO AV 800, 804
Asheville NC AS 288
Athens GA AE 306
Atlanta GA AT 303, 311, 399
Atlantic City NJ AC 084
Auburn AL AF 368
Augusta ME AA 043
Augusta GA AG 309
Aurora CO AZ 800
Aurora IL AO 605
Austin TX AU 733, 787
Bakersfield CA BD 933
Baltimore MD BA 212
Baton Rouge LA BR 708
Battle Creek MI QK 490
Beaumont TX BT 777
Bellingham WA BH 982
Berkeley CA BE 947
Bethlehem PA BM 180
Billings MT IB 591
Biloxi MS BL 395
Binghamton NY BC 139
Birmingham AL BI 352
Bismarck ND BB 585
Bloomington IN BQ 474
Bloomington MN BN 554
Boca Raton FL BZ 334
Boise ID BS 837
Bossier City LA BW 711
Boston MA BO 021, 022
Boulder CO BV 803
Bradenton FL BG 342
Bremerton WA BY 983
Bridgeport CT BP 066
Bronx NY BX 104
Brooklyn NY BK 112
Brownsville TX BJ 785
Buffalo NY BF 142
Burlington VT BU 054
Cambridge MA CB 021, 022
Camden NJ CD 081
Canton OH CA 447
Cape Coral FL CF 339
Casper WY CZ 826
Cedar Rapids IA CR 524
Champaign IL CX 618
Chandler AZ YZ 852
Chapel Hill NC CJ 275
Charleston SC CT 294
Charleston WV CW 253
Charlotte NC CE 282
Charlottesville VA CV 229
Chattanooga TN CG 374
Chesapeake VA CP 233
Cheyenne WY CY 820
Chicago IL CH 606-608
Chula Vista CA DV 919
Cincinnati OH CN 452, 459
Clarkesville TN YN 370
Clearwater FL CQ 337
Cleveland OH CL 441
Colorado Springs CO CS 809
Columbia SC CU 292
Columbus GA CM 318, 319
Columbus OH CO 430, 432
Corpus Christi TX CC 783, 784
Cranston RI RT 029
Cumberland MD CK 215
Dallas TX DA 752,753
Davenport IA DP 528
Dayton OH DY 453, 454
Daytona Beach FL DF 321
Dearborn MI DB 481
Decatur IL DT 625
Denver CO DN 800-802
Des Moines IA DM 503, 509
Detroit MI DE 482
Dubuque IA DQ 520
Duluth MN DL 557, 558
Durham NC DU 277
East Lansing MI ET 488
East Orange NJ EO 070
East St. Louis IL ES 622
Easton PA EA 180
El Paso TX EP 799, 885
Elizabeth NJ EL 072
Erie PA ER 165
Eugene OR EU 974
Evanston IL EN 602
Evansville IN EV 477
Fairbanks AK FK 997
Fall River MA FR 027
Far Rockaway NY RK 110, 116
Fargo ND FA 581
Fayetteville AR FB 727
Fayetteville NC FN 283
Flint MI FT 485
Florence SC FE 295
Florence AL FC 356
Flushing NY FG 113
Fort Lauderdale FL FL 333
Fort Pierce FL FP 349
Fort Smith AR FS 729
Fort Wayne IN FY 468
Fort Worth TX FW 761
Fresno CA FO 936-938
Gainesville FL GF 326
Gaithersburg MD GG 208
Galveston TX GA 775
Garland TX GD 750
Gary IN GY 464
Gastonia NC GN 280
Glendale AZ GE 853
Glendale CA GL 912
Grand Rapids MI GR 495
Great Falls MT GT 594
Greeley CO GC 806
Green Bay WI GB 543
Greensboro NC GO 274
Greenville SC GV 296
Greenwood MS GW 389
Hackensack NJ HS 076
Hamilton OH HA 450
Hammond IN HM 463
Hampton VA HP 236
Harlingen TX HR 785
Harrisburg PA HG 171
Hartford CT HD 061
Hattiesburg MS HT 394
Helena MT HE 596
Henderson NV HF 890
Hialeah FL HI 330
High Point NC HC 272
Hollywood FL HW 330
Honolulu HI HL 968
Houston TX HO 770, 722
Huntington WV HN 257
Huntington Beach CA HB 926
Huntsville AL HU 358
Independence MO IE 640
Indianapolis IN IN 462
Inglewood CA ID 903
Irvine CA IV 926-927
Irving TX IR 750
Jackson MS JN 392
Jacksonville FL JV 322
Jamaica NY JA 114
Jamestown NY JM 147
Janesville WI JE 535
Jersey City NJ JC 070, 073
Johnson City TN JH 376
Johnstown PA JO 159
Joliet IL JT 604
Jonesboro AR JB 724
Kalamazoo MI KZ 490
Kansas City KS KA 661
Kansas City MO KC 641, 649
Kennewick WA KW 993
Kenosha WI KE 531
Kingsport TN KP 376
Knoxville TN KN 379
Lafayette IN LF 479
Lafayette LA LL 705
Lake Charles LA LC 706
Lakeland FL LK 338
Lakewood CO LW 801, 802, 804
Lancaster PA LP 176
Lansing MI LG 489
Laredo TX LD 780
La Cruces NM LZ 880
Las Vegas NV LV 891
Lawrence MA LQ 018
Lewiston ME LT 042
Lexington KY LX 405
Lincoln NE LN 685
Little Rock AR LR 722
Long Beach CA LB 907, 908
Long Island City NY LI 111
Lorain OH LO 440
Los Angeles CA LA 900, 901
Louisville KY LE 402
Lowell MA LM 018
Lubbock TX LU 794
Lynn MA LY 019
Macon GA MA 312
Madison WI MN 537
Manchester NH MR 031
Marietta GA MT 300
Melbourne FL ML 329
Memphis TN ME 375, 381
Meridian MS MD 393
Mesa AZ MZ 852
Metairie LA MI 700
Miami FL MF 330-332
Milwaukee WI MW 532
Minneapolis MN MS 554
Missoula MT MM 598
Mobile AL MO 366
Modesto CA MC 953
Monroe LA MB 712
Montgomery AL MG 361
Muskegon MI MK 494
Naperville IL NP 605
Nashau NH NS 030
Nashville TN NA 372
New Bedford MA ND 027
New Brunswick NJ NB 089
New Haven CT NH 065
New Orleans LA NO 701
New York NY NY 100-102
Newark NJ NK 071
Newport News VA NN 236
Newton MA NE 024
Niagara Falls NY NF 143
Norfolk VA NV 235
Norman OK NR 730
North Charleston SC NC 294
North Hollywood CA NW 916
North Las Vegas NV NT 890
North Little Rock AR NL 721
Oak Park IL OP 603
Oakland CA OA 946
Oceanside CA OE 920
Ogden UT OG 842, 844
Oklahoma City OK OC 731
Olympia WA OL 985
Omaha NE OM 681
Orlando FL OR 328
Oshkosh WI OK 549
Overland Park KS OV 662
Owensboro KY OW 423
Oxnard CA OX 930
Palo Alta CA PQ 943
Parkersburg WV PK 261
Parma OH PZ 441
Pasadena CA PD 910, 911
Paterson NJ PN 075
Pembroke Pines FL PP 330
Pensacola FL PE 325
Peoria AZ PY 853
Peoria IL PL 616
Petersburg VA PG 238
Philadelphia PA PH 190-192
Phoenix AZ PX 850
Pine Bluff AR PB 716
Pittsburgh PA PI 151, 152
Pocatello ID PC 832
Port Arthur TX PA 776
Portland ME PT 041
Portland OR PO 972
Portsmouth NH PS 038
Portsmouth VA PM 237
Providence RI PR 029
Provo UT PV 846
Pueblo CO PU 810
Punta Gorda FL PJ 339
Quincy MA QU 021, 022
Racine WI RA 534
Raleigh NC RL 276
Reading PA RD 196
Reno NV RE 895
Richmond VA RI 231, 232
Riverside CA RS 925
Roanoke VA RO 240
Rochester NY RC 146
Rock Hill SC RH 297
Rockford IL RF 611
Sacramento CA SC 942, 958
Saginaw MI SG 486
Salem OR XR 973
Salinas CA YL 939
Salt Lake City UT XU 841
San Antonio TX SO 782
San Bernardino CA SR 924
San Diego CA SD 921
San Francisco CA SF 941
San Jose CA SJ 951
San Juan PR XJ 009
Santa Ana CA SA 927
Santa Barbara CA SZ 931
Santa Fe NM YF 875
Sarasota FL XS 342
Savannah GA GS 314
Schenectady NY SK 120, 123
Scottsdale AZ YS 852
Scranton PA XC 185
Seattle WA SE 981
Shawnee Mission KS SM 662
Sheboygan WI XB 530
Shreveport LA SH 711
Silver Spring MD SS 209
Sioux City IA SX 511
Sioux Falls SD IQ 571
South Bend IN SB 466
Spartanburg SC SQ 293
Spokane WA SW 992
Springfield IL XL 627
Springfield MA XA 011
Springfield MO XO 657, 658
Springfield OH XH 455
St Joseph MO XM 645
St Louis MO SL 631
St Paul MN SU 551
St Petersburg FL SP 337
Stamford CT ST 069
Staten Island NY SI 103
Sterling Heights MI YH 483
Stockton CA SN 952
Syracuse NY SY 132
Tacoma WA TC 984
Tallahassee FL TL 323
Tampa FL TA 336
Tempe AZ TE 852
Terre Haute IN TH 478
Titusville FL TT 327
Toledo OH TO 436
Topeka KS TP 666
Torrance CA TN 905
Trenton NJ TR 086
Tucson AZ TU 857
Tulsa OK TS 741
Tuscaloosa AL TB 354
Utica NY UT 135
Van Nuys CA VN 913, 914
Vancouver WA VA 986
Virginia Beach VA VB 234
Waco TX WX 767
Warren OH WO 444
Warren MI WR 480
Warwick RI WW 028
Washington DC DC DC 200, 202-205, 569
Waterbury CT WT 067
Waterloo IA WL 507
West Allis WI WA 532
West Palm Beach FL WP 334
West Valley City UT WC 841
Westminster CO WD 800, 802
Wheeling WV WH 260
White Plains NY WJ 106
Wichita KS WK 672
Wichita Falls TX WF 763
Wilkes-Barre PA WB 187
Williamsport PA WM 177
Wilmington DE WI 198
Wilmington NC WN 284
Winston-Salem NC WS 271
Winter Haven FL WG 338
Worcester MA WE 016
Yonkers NY YK 107
York PA YR 173, 174
Youngstown OH YO 445

Function Key List

Function Key Description
<F2> Deletes the characters in the current field to the right of the cursor position.
<F3> Deletes all characters in the field and places the cursor at the beginning of the field. This is a toggle key and used only in DV.
<F4> Allows the operator to change the form revision year on a 940 that is mis-recognized. When the <F4> key is pressed, the operator receives a prompt to enter a two-digit Form Year.
Once the Form Year is entered, the correct fields display.

Note:

Refer to IRM 3.41.277.11(2) For specific guidelines.

<F5> Allows the operator to move the entry field so that it appears in different places relative to the area on the scanned image.
<F6> Releases a document and brings up the next document in the block or unit-of-work. In DV, you can only release a document if all necessary work is completed.
<F7> Allows the operator to go back and review previous documents in the block or unit-of-work.
<F8> Releases a block or unit-of-work. You can only release a block or unit-of-work if all necessary work is completed.
<F9> Allows the operator to either interrupt or suspend a block or unit-of-work the operator is currently working.
<F10> Returns to the current document after pressing <F7> or <Home> to go to a preceding document.
<Ctrl>-3 Displays the Magnified Image Strip for current field.
<Ctrl>-5 Allows the operator to disable and enable highlighting for image fields as needed.
<Ctrl>-6 Rotates the image 180 degrees
<Alt>-X Returns to the previous menu
<Ctrl>-A This key combination is a toggle that turns the AUTO Mode on and off. When AUTO is on, the cursor automatically moves from the current field to the next field requiring perfection. When AUTO is off, the cursor manually moves through every field using the cursor movement keys.
Ctrl>-<Shift>-<Delete>; <Ctrl>-<Shift>-<Del> Deletes a document from a block or unit-of-work.
<Ctrl>-<F3> Clears any field with a "?" automatically. This is a toggle key and only used in DV.
<Ctrl>-<F4> Allows the operator to display the FI number assigned at scanning.
<Ctrl>-<F7> Moves the cursor to the last edit field or last flagged field, on the prior document in DV. In OE, places cursor in last field on previous document.
<Ctrl>-S or <;> Code and Edit Field: Moves the cursor to the first field with an error after the last Code and Edit field (during OE and DV).
  • Schedule A: Skips the cursor to the most used state codes (CA, FL, IL, MI, NY, PA, and TX) on Schedule A (during OE only).

  • Schedule R: Moves the cursor from Line 1 Column (a) on Schedule R or Schedule R Continuation page to the "FUTA Wages" column on the "Sub-Total Line" (Columns and Sub-Total Lines vary by Form Year Revision.)

<Ctrl>-B Places the cursor at the beginning of the previous word in current field.
<Ctrl>-F Places the cursor at the beginning of the next word in current field.
<Ctrl>-L Reduces the image strip (after pressing <Ctrl>-M) that appears above the entry field.
<Ctrl>-M Enlarges the image strip that appears above the entry field.
<Ctrl>-P Notifies the system to stop work on the current function at the end of the current block or unit-of-work. When work is completed, the menu window of the function appears.
<Ctrl>-<↓> Key Moves the cursor to the first character in the last field that is enabled at the bottom of a template.
<Ctrl>-<↑> Key Moves the cursor to the first character in the first field that is enabled at the top of a template.
<Enter> (Main Keypad) or Numeric Keypad) Accepts the contents of the current field or allows the release of a field without entering any data and moves to the next field.
<Ctrl><Shift>-<↑>, <↓>, <→>, <←> (Arrow Keys) Allows the operator to move the image strip when it is not lined up. Holds the position for the current image.
<→> Key Moves the cursor to the right one character position from the current position. When this key is held down, the movement is repeated.
<←> Key Moves the cursor to the left one character position from the current position. When this key is held down, the movement is repeated.
<Delete> (Central Keypad) and <Del> (Numeric Keypad) Deletes the character at the current cursor position.

Note:

If the operator uses the <Del> key in the Numeric Keypad, the Num Lock Mode must be off.

<Ctrl>-D Copies the data from the same field on the previous document.
  • Schedule R: Copies the EIN from page 1 of the Form 940 to the Employer EIN field on the Schedule R or Schedule R Continuation page.

<Esc> If a menu or window selection is made in error and the wrong window opens, press <Esc> to escape back to the previous menu or window.
<Insert> (Central Keypad) or <Ins> (Numeric Keypad) Inserts a character to the left of the current cursor position. Since this is a toggle key function, it must be turned off by pressing one of these keys again.
<Num Lock> (Numeric Keypad) Turns the Main Keypad Numeric Mode on and off, including the embedded keypad.
<Shift> (Main Keypad) "Alpha characters may be entered in numeric fields" or "Numeric characters may be entered in Alpha-numeric fields."
<Page Down> (Central Keypad) or <Pg Dn> (Numeric Keypad) OE and DV: move between page 1, page 2, and Schedule A of Form 940. Document Review: Displays the next or previous document.

Note:

This also applies to Schedule R.

<Page Up> (Central Keypad) or <Pg Up> (Numeric Keypad) OE and DV: Move between Schedule A, page 2, and page 1 of Form 940. Document Review: Displays the previous or next document.

Note:

This also applies to Schedule R.

<Print Scrn> Prints the current screen display.
<↓> Key (Central or Numeric Keypad) Moves cursor to next field when AUTO is off. When AUTO is on, the cursor moves to the next required field in the template.
<↑> Key (Central or Numeric Keypad) Allows operator to move cursor to the beginning of a preceding field.

Note:

Num Lock key must be off.

The <↑> (up arrow) on the Central keypad allows the operator to go backwards between pages/documents one field at a time.
<Ctrl>-<←> Key (Central and Numeric Keypad) or <Home> (Central or Numeric Keypad)

Note:

Home is valid during DV only.

Positions the cursor at the left most position in a field.

Note:

When the left arrow key in the Central or Numeric Keypad is used the Num Lock must be off.

<Ctrl>-<→> Key (Central and Numeric Keypad) or <End> (Central and Numeric Keypad)

Note:

End is valid during DV only.

When AUTO is on, positions the cursor at the right most position in a field. The operator can use five different keys to perform this function.

Note:

When the Right Arrow Key in the Numeric Keypad is used the Num Lock must be off.

<Tab> Moves cursor to the next field. When the cursor moves to the next field, the system accepts the contents of the current field.
<Ctrl>-<Tab> Moves the cursor to the preceding field. If the cursor is on the first field of a document, pressing this key combination causes the cursor to move to the first field of the preceding document.

Pull Document Report

The following is a copy of the IPS00812 940 Pull Document Report

Note:

Detailed Report Description IRM 3.41.277.17.9, Pull Document Report

Output File ID: 602201 940 Pull Document Report Run Date: 01/14/2010 Page # 1
-------- ------------------- ----------------------- ----------- -----------------------------------------
Batch Block # Doc. DLN/FI # Page # Document/Block Delete Reason
0568 LC840011055 LC84001105570 850106 Document deleted during OE; Sc
0568 LC840011055 LC84001105570 850206 Document deleted during OE; Sc
0568 LC840011055 LC84001105570 850306 Document deleted during OE; Sc
0568 LC840011055 000261 850106 Document has been deleted syst
0570 LC840011063 000059 700206 Document deleted during OE; DO

940 FI/DLN Cross Reference Report

The following is a copy of the IPS10670 940 FI/DLN Cross Reference Report at Ogden Service Center

Note:

Detailed Report Description IRM 3.41.277.17.12, FI/DLN Cross Reference Report

Output File ID: 601801 Program Number: 11140 Run Date: 01/14/2010 Page 1
-------- ------------------- ---------- ------------------ ----------
Batch Scan Block # Seq. # New Block # Seq #
0556 LC840010027 000001 LC840010027 86
    000006   87
    000008   88
    000012   89
    000020   90
  LC840010028 000024 LC840010028 86
    000028   87
    000033   88
    000037   89
4240 LC840013032 000061 LC840013032 86
    000067   87
    000070   88
    000072   89

Valid Characters

Do not enter other characters even if they appear on the form.

Specific Entry Valid Characters
940 EIN Numeric (0-9) or blank
Name Control
  • Alpha (A-Z)

  • Numeric (0-9)

  • Hyphen (-)

  • Ampersand (&)

  • Maximum 4 Characters

In Care of Name Line
  • Alpha (A-Z)

  • Numeric (0-9)

  • Hyphen (-)

  • Ampersand (&)

  • In Care Of (%)

  • Space

  • Blank

  • Maximum 35 Characters

Address Line
  • Alpha (A-Z)

  • Numeric (0-9)

  • Hyphen (-)

  • Slash (/)

  • Asterisk (*) only valid in the first position for PO Box

  • Space

  • Maximum 35 Characters

City Line
  • Alpha (A-Z)

  • Space

  • Maximum 22 Characters

State Line
  • Alpha (A-Z)

  • Maximum 2 Characters

ZIP Code
  • Numeric (0-9)

  • Maximum 9 Characters

Money (Data) Fields
  • Numeric (0-9)

  • Hyphen (-) Negative amounts

  • Maximum 15 Characters

State Code Abbreviation
  • Alpha (A-Z)

  • Maximum 2 characters

Third-Party ID Number
  • Alpha (A-Z)

  • Numeric (0-9)

  • Maximum 5 Characters

Preparer’s PTIN
  • Alpha (P in first position only)

  • Numeric (0-9)

  • Maximum 9 Characters

Preparer’s EIN
  • Numeric (0-9)

  • Maximum 9 Numerics

Preparer’s Phone
  • Numeric (0-9)

  • Maximum 10 Numerics

Schedule A Money Fields
  • Numeric (0-9)

  • Hyphen (-) Negative amounts

  • Maximum 15 Characters

Schedule R - Employer EIN
  • Numeric (0-9)

  • Period (.)

  • Maximum 9 Characters

Schedule R - Clients EIN
  • Numeric (0-9)

  • Period (.)

  • Maximum 9 Characters

Schedule R - Money Fields
  • Numeric (0-9)

  • Hyphen (-) Negative amounts

  • Maximum 15 Characters

Consolidated List of Acronyms

Acronym Definition
BBTS Batch Block Tracking System
CCC Computer Condition Code
DV Data Validation
DCO Data Conversion Operation
DLN Document Locator Number
ERS Error Resolution System
FI Forms Identification
FUTA Federal Unemployment Tax Act
IRP Information Returns Processing
ISRP Integrated Remittance Processing System
OE Original Entry
P&A Planning and Analysis
PCD Program Completion Date
R&C Receipt and Control Operation
SCRIPS Service Center Recognition/Image Processing System
UW Unit-of-Work