The purpose of Error Resolution is to resolve validity errors, field errors, consistency errors, and math errors in returns and other documents for posting to the Master File. Records fall out in ERS due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields.

The GMF programming causes record to fall out to the Error Resolution System (ERS) if they fail to meet certain criteria, including:

Employees use the ERS system and the return to correct these conditions and use IDRS (when necessary) to research.

While working assigned cases, SP employees may come across some that are blocked on IDRS and can be identified by an IDRS security violation message, "Unauthorized Access to This Account". Forward the return to your manager. Managers will notify the local Planning & Analysis Staff who will scan the case and send encrypted information to the "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" mailbox requesting access to the account. Managers will retain the original case in a file awaiting access (can take up to 5 business days). Once notified access has been granted, the case can be worked following applicable procedures.

The Internal Revenue Code of 1986 or more commonly known as the Internal Revenue Code (IRC) is the authority for these procedures. Treasury/IRS rules and regulations interpret the law. The IRC has been amended by acts and public laws such as the following:

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

The Director of the Submission Processing Campus (SPC) is responsible for monitoring operational performance for that SPC.

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

The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

The team employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

System Control Reports: The reports are stored on 4 ECC Z/OS Mainframes and can be retrieved through Control-D/ Web Access Server. See IRM 3.12.38, Error Resolution, BMF General Instructions, for a general listing of the reports.

Program Effectiveness: Is measured through Embedded Quality Submission Processing (EQSP) application used for quality review of the returns corrected in ERS. The applications capture evaluative and non-evaluative data obtained from monitoring submission processing activities. Reports can be generated for planning and training purposes.

Annual Review: Is performed by Federal Managers Financial Integrity Act (FMFIA) to ensure accuracy and promote consistent tax administration.

Quality Review is conducted using the Embedded Quality Submission Processing (EQSP) application. A statistical valid sample size of corrected returns are pulled weekly for all tax examiners and reviewed to ensure IRM guidelines are followed.

The following is a list of words in this IRM that may need clarification:

There are specific terms used when dealing with estates and trusts. See below:

There are many types of trusts as shown in the following:

There are many types of estates, as shown below:

See Exhibit 3.12.14-44, Acronyms and Abbreviations.

The following is a list of resources available:

See Exhibit 3.12.14-44, Acronyms and Abbreviations.

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Taxpayer Services (TS) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating with Operations Assistance Requests (OARs).

Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day. See IRM 21.1.3.18 , Taxpayer Advocate Services (TAS) Guidelines.

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

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

For more information, see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, and IRM 13.1.7.4 , Exceptions to Taxpayer Advocate Service Criteria. for more information.

IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevated through appropriate channels for executive approval.

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

Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable.

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

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

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

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

The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA98), 3705(a), provides identification requirements for all IRS employees working tax-related matters. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face, and written contact. In addition, a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax related matters.

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

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

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

The BMF campus cycles are:

BMF transaction posting time frames are outlined as follows:

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

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

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

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

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

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

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

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

Some returns will need special care. If the withholding is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, attach Form 4227 and place in the locally designated basket for Examination, Frivolous Return Program (FRP) for review. Pay particular attention to returns with Form 1099-OID attached.

A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program (FRP), shown in Exhibit 3.12.14-40 , Potential Frivolous Arguments for Examination Review.

Review the return to determine whether it appears to be a frivolous argument reported on return.

This provides general correction procedures for perfecting Form 1041.

Correspondence records with Action Code 21X will be automatically suspended for a predetermined number of days or until the taxpayer replies, whichever is earlier.

ERS tax examiners issuing correspondence may perform either of the following:

Most correspondence is either a computer-generated notice, a computer-generated letter or a pre-printed letter.

If special notes or letters are developed, ensure that the following guidelines are used:

Missing Signature - A signature is required on most returns. If no signature is present:

The ERS Action Codes (AC) are used to indicate whether correspondence, research or some other action is necessary. These codes reject or suspend records, placing them in Suspense Inventory (either Workable or Unworkable) and identify the specific action taken. A listing of valid ERS Action Codes is available, see Exhibit 3.12.14-36, ERS Action Code.

Action Code 001 occurs when the Block out of Balance (BOB) Resolution Function has added a missing document by only inputting the Taxpayer Identification Number (TIN) and the Name Control for the missing document. For procedures for determining and correcting Priority I Errors, IRM 3.12.14.7.2, Priority I Errors - Action Code/Unpostable Code Errors.

Code & Edit assigns Action Codes to numbered returns if the document is unprocessable. This code is edited in the lower left margin of the return and the letters "AC" may precede the code."AC" may be omitted at the option of the Campus.

Correspondence Action Sheets are used for initiating correspondence and are attached by the Tax Examiner suspending the document. The Action Codes and descriptions should be sufficient for routing these returns within the Campus.

If the AC assigned by Code & Edit is invalid, incomplete, or is "001," the record is assigned to the Error Inventory for correction or deletion of the code.

Only one AC can be assigned to a record at one time. Assign Action Codes in the following priority order:

If more than one Action Code of the same priority is required (i.e., 342 and 355), use the code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition.

An ERS Tax Examiner may enter an Action Code on a record, correct or delete an invalid code or overlay the present AC with another to re-suspend or reject from ERS.

CC SSPND -When entered by an ERS Tax Examiner, SSPND clears the record from the screen and places it in either Workable or Unworkable Suspense.

CC RJECT -When entered by a Rejects Tax Examiner, RJECT rejects the record from ERS. Generally, Service Center Control File (SCCF) is automatically updated for the rejected record.

CC NWDLN -When entered by a Rejects Tax Examiner, NWDLN rejects the record from ERS and establish the new DLN under which the record is to be input.

Management Suspense - Management may direct that certain documents be held for further processing instructions. Some reasons for such a suspension are:

The Command Codes needed for correcting the Error Inventory and the Workable Suspense Inventory are briefly described below. They are also explained in IRM 3.12.38, ERS, General Instructions. Any Command Code permitted by the Employees Security File is available.

Command Codes are used to tell the system which function to perform.

Command Codes must be entered in a valid format. Otherwise, a field error displays.

The valid Command Codes are:

This code is used when a math error is present involving Tax liability or Tax Due/Overpayment. Each math error display requires a correction to a field or the assignment of a TPNC.

A TPNC is entered only after determining that no other corrections to the record can be made. Before assignment of a TPNC:

Each math error has certain TPNCs that are valid to clear that error. If an invalid code is assigned, the error will re-display.

Each Form 1041 can have a maximum of three TPNCs.

TPNC 90 is a "fill-in" and should be used when no other TPNC fully explains the correction(s) made or when more than three or more notice codes are necessary. In January 2014, The Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. For a full listing of the programmed TPNC 90 Math Error Codes, see TPNC 90 Math Error Code Job Aid, http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids.html.

When the ERS tax examiner sends a TPNC 90, they will do the following:

If there is not an applicable TPNC 90 Math Error Code, then the ERS tax examiner will do the following:

Make sure that the return needing a TPNC 90 leaves Error Resolution System (ERS) with the correct TPNC 90 language for the applicable form. For questions, please contact your Lead and/or Manager.

Once a TPNC is transmitted to the record, it may be changed or removed in the following manner:

All TPNCs are erased when a record is suspended with Command Code SSPND.

Unfinished records from the previous day will contain none of the TPNCs that were assigned to the records that were not completely worked.

For a listing of valid TPNCs and the information communicated to the taxpayer, see Exhibit 3.12.14-35, Taxpayer Notice Codes for Form 1041.

Certain error codes will display with a clear code. A clear code is used, when appropriate, to clear the error code.

If Form 1041 with Form 4720, Form 5227, and/or any Form 990 Series return attached is received at any Submission Processing Campus other than OSPC, process as follows:

If Form 1041 with Form 4720, Form 5227, and/or any Form 990 Series return attached is received at the Ogden Submission Processing Campus (OSPC), process as follows:

For additional procedures for processing Split-Interest Trusts, see IRM 3.12.14.26.11.2, Correction Procedures - Error Code 026.

It is important to leave a legible Working Trail (or Action Trail) using blue ink for those who may work with the return later.

Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner (or use Form 12648 , Error Correction 90 TPNC). See form specific IRM reference and title and Taxpayer Notice Codes, for additional information.

If corresponding with a non-suspense letter, "X" and write the corrected money amounts to the left of each original point(s) of error. Money amounts are to be written in dollars only or dollars and cents, as applicable. Arrowing is allowed for money amounts when there are no intervening entries between the arrow and the line to which the money is to be entered.

Leave a working trail on the return when changes are made to the following items:

When working Reject re-inputs, circle out any previous Action Codes shown on the front of the return, if no longer applicable.

When working Rejects, edit "640" at the bottom of the page to indicate the DLN has been voided.

If the return has a statement that it was "Secured Under the Authority Of Section 6020(B)" :

If any unprocessable conditions exist, contact the Revenue Officer (RO) that prepared and signed the return. Use Discovery Directory to email the RO and SSPND AC 360. Do not contact the taxpayer on any secured return.

Only decedent estate 1041 returns, both original and amended can participate in this program.

Returns are identified by the taxpayer writing "Streamline" on the top of the return. There will also be an audit trail notated that the package was complete.

Streamline original 1041 returns will have the following CCCs:

Streamline amended 1041 returns will not be processed by SP if found in the pipeline SSPND 640, so ERS/Rejects can void the DLN and route to ICT for scanning with a special cover sheet. They will be scanned into CII and worked by specific people in AM.

Document Perfection and ERS are responsible for identifying refunds and for initiating requests for manual refunds.

Action Code 341 should be input by Code & Edit to show that a manual refund is needed. If these conditions are not identified in Code & Edit, ERS must follow the following criteria:

Taxpayers reporting a Section 965 net tax liability on their 201712 - 201911 tax returns can make certain elections, including:

A TY 2020 Section 965 return can be identified by any of the following:

A TY 2019 Section 965 return can be identified by any of the following:

A TY 2018 Section 965 return can be identified by any of the following:

A TY 2017 Section 965 return can be identified by any of the following:

If the Tax Period is 201712 and later:

Modernized e-File (MeF) created naming conventions to identify "965" on the return. Some returns may not be true Section 965 returns. The numbers "965" may appear in the address, banking account number, EIN or anywhere on the return. If determined that the return is not Section 965, delete CCC "J" and continue processing.

For TY 2017, the placement of Net 965 Tax Liability Paid and Net 965 Tax Liability on the form was designed to cause the return to generate an error code. The error code and/or Action Code "460" ensures the return will be examined by an ERS/Rejects tax examiner.

If Form 965-A is attached, GTSEC 20 and ensure all fields have been transcribed into the correct fields. See IRM 3.12.14.18, Section 20 - Form 965-A, Individual Report of Net 965 Tax Liability

Tax Period 202112 and subsequent correction procedures:

Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the taxpayer can elect to:

For tax periods 202201 through 202212 only, identify an "Elective or Deemed Payment Election" when the taxpayer writes "IRA22DPE" on Form 3800, an attachment, or on any of the following lines:

When a 202201 through 202212 return is identified with an "Elective or Deemed Payment Election" , and Code and Edit has not done so, do the following:

When a 202201 through 202212 return is identified In ERS with a "Credit Transfer" , and Code and Edit has not done so, do the following:

Treat taxpayers who claim the credit on Form 3800 with no other indication of claiming the "Elective or Deemed Payment Election" or "Credit Transfer" as normal. See IRM 3.12.14.26.45 , Error Code 866 - General Business Credits.

The Error Resolution System identifies errors according to type and priority. The record heading shows the type of error:

There may be records where the tax examiner finds that programming has not furnished a section that is needed to solve an error. If this occurs:

Description:

Display - The Action Code for the record with the literal description of the action or unpostable condition will be shown.

Error Correction - Process Priority I errors as follows:

Action Code 001 is a Priority I error. This condition occurs whenever the BOB Resolution function has added a document to a block by entering only the Name Control and TIN. The remainder of the record must be added by ERS.

See IRM 3.12.38, BMF General Instructions, for procedures for correcting Priority I Action Code errors in Suspense and Unpostable Code Correction.

Most edit, missing section, and terminus errors should be eliminated by Integrated Submission and Remittance Processing (ISRP). However, edit errors and/or terminus errors may be present if normal ISRP validity checks have been bypassed.

Edit Error - A section with an error detected by ISRP. Edit errors are coded as follows:

Terminus Error - A section with variable length fields containing an erroneous size field or otherwise being of erroneous size.

Display - All fields except the ERS Action Code and the Remittance (Payment Received) fields are displayed in columnar format with or without data. The error type is indicated for ISRP Problem Code errors. Only one section (error) is displayed at a time.

Content - Any individual section excluding computer-generated fields and the Action Code. The Action Code is an uncorrectable field, except as defined for SSPND and RJECT.

Correction Procedures:

For any returns suspended prior to the beginning of a new processing year, that are reactivated in the next year to be worked via the Error Resolution System (ERS), the following action will need to be taken to revalidate the return through the updated ERS systemic processes...

Definition - Any field failing to meet the requirements for that field (and that field only) is shown as a Priority III error. Consistency and/or relationships with other fields are not a factor. Individual field validity errors to be bypassed after initial consideration, are shown as Priority IV Errors.

Some reasons for field errors include the following:

Display - Every field displayed is in error.

Correction Procedures:

Definition - Any valid field used in any computation where the result is inconsistent with (or contradictory to) any other valid field, will have Error Code 001-999 assigned and be shown as a Priority IV Error.

Display - Priority IV errors are displayed with the Error Code for the specific error. The screen display shows the Error Code assigned and the fields needed to make the necessary correction.

Correction Procedures:

For specific correction instructions for each Error Code, see IRM 3.12.14.24 Priority IV Errors - Error Codes 001 Through 999.

Section 01 contains entity data, remittance, fields for codes, Received Date, and miscellaneous information.

The Remittance field cannot be changed by ERS.

Listed below are the fields contained in Section 01. Data in this section is obtained from Form 1041, Form 1041-QFT, and Form 1041-N:

Description - Field 01NC is located in the entity section of Form 1041.

Invalid Condition - Field 01NC is invalid if any of the following conditions are present:

Correction Procedures:

For information on determining the Name Control for an Estate or Trust, refer to Document 7071-A, BMF Name Control Job Aid.

Description - Field 01EIN is located in the entity section of Form 1041/1041-QFT/1041-N.

Invalid Condition - Field 01EIN is invalid if any of the following conditions are present:

Correction Procedures:

Suspense Correction:

Description - Field 01TXP is in the upper right corner of Page 1 of Form 1041. The pre-printed calendar year Tax Period is located in the top center margin of Form 1041. If other than the pre-printed calendar year, the Tax Period is indicated under the heading "U.S. Income Tax Return for Estates and Trusts" .

Invalid Condition - Field 01TXP is invalid if any of the following conditions are present:

Correction Procedures:

The following applies to all returns if Field 01TXP has been changed or needs to be changed:

Description - Field 01FID is a single numeric field edited to the right of the "Simple Trust" box (Box "A" of Form 1041).

Valid characters are as follows:

Correction Procedures:

Description - Field 01TRC is a single numeric field edited to the right of the "Pooled Income Fund" box (Box "A" of Form 1041).

Valid characters are "1," "2," "3," "4," and blank:

Correction Procedures:

Description - Field 01CCC is an alpha or numeric field edited in the center of Line 1 of Form 1041.

Correction Procedures:

Listed below are the valid Computer Condition Codes for Form 1041:

When CCC "G" is present, no other CCC's are valid except"W" , "T" , and "3" .

Description-- Field 01RCD is a numeric field, which is either date stamped or edited in the center of Page 1 of Form 1041.

Invalid Condition - Field 01RCD is invalid if any of the following conditions are present:

Correction Procedures:

Determining Postmark Dates:

Private Delivery Services - A private delivery service (PDS) is a business, designated by the IRS (rather than by the U.S. Postal Service), to send returns to the IRS. Private delivery services do not deliver to P.O. Boxes. Taxpayers must use the U.S. Postal Service to mail items to an IRS P.O. Box address. The postmark date is the date the private delivery service records in its database or marks on the mailing label.

Description - Transcribed from the right of the Signature Section of Form 1041.

Invalid Condition - Field 01FIN is invalid if any of the following conditions are present:

Correction Procedures:

Do not enter the Fiduciary EIN if any of the following conditions exist:

Description -Transcribed from the right of Field 01FIN (Fiduciary EIN) in the Signature Section of Form 1041. The Paid Preparer check box is used to indicate whether the taxpayer has elected to allow the Paid Preparer to answer questions about the taxpayer's return as it is processed.

Invalid Condition - Field 01CBI is invalid if other than "1" or blank

Correction Procedures:

Description - Transcribed from the right of the Paid Preparer's Section of Form 1041.

Invalid Condition - Field 01PSN is invalid if any of the following conditions are present:

Correction Procedures:

Description - Transcribed from the right of the Paid Preparer's Section of Form 1041.

Invalid Condition - Field 01PEN is invalid if any of the following conditions are present:

Correction Procedures:

Description - Transcribed from the right of the Paid Preparer's Section of Form 1041.

Invalid Condition - Field 01PTN is invalid if other than alpha, numeric or blank.

Correction Procedures:

Field 01CRD is a numeric field edited on the front of the 1041.

Invalid Condition - Field 01CRD is invalid if any of the following conditions are present:

Correction Procedures - Correct all misplaced entries, coding errors, and transcription errors.

Determining the CRD - If the reply was not date stamped, determine the CRD in the following priority order:

Enter the CRD (YYYYMMDD) in Field 01CRD except in the following situations:

If no reply or the correspondence was undeliverable, enter "3" in Field 01CCC.

On returns, which have been sent back to the taxpayer (correspondence is attached), the original stamped Received Date should be circled-out and the date on which the correspondence is received should be edited as the Received Date in the Deductions Section on Form 1041.

If there is an indication that Entity has assigned an EIN to the return, enter the entity assignment date (lower left corner of Form 1041) in Field 01CRD, if the entity assignment date is later than the Received Date and Return Due Date.

Description - Field 01ADC is a numeric field transcribed from the left margin next to Line 10 identified by "1 -" followed by the appropriate audit code(s). Audit Codes are used to alert Examination to a particular condition on the return.

Up to fifteen Audit Codes may be entered in Field 01ADC. Enter Audit Codes using the following priority order:

Invalid Condition - Field 01ADC will generate as a field error if the Audit Code is other than blank or the valid codes listed above.

Field 01ADC will also generate when Audit Code "8" is present and the Document Code is not "39" .

Correction Procedures - Correct all misplaced entries, coding errors, and transcription errors.

Determine the appropriate Audit Code as follows:

Description - Field 01ESB is a numeric field edited in the left margin next to Line 10 as "2 - 1" when the ESBT (S portion only) box is checked in "Box A, Type of Entity" in the upper left on page 1.

Valid characters are "1" and blank. "1" indicates the "ESBT" box is checked.

Invalid Condition - Field 01ESB will generate as an error if the ESBT Indicator is other than "1" or blank.

Correction Procedures:

Description -- Field 01PII is a numeric field edited in the left margin next to Line 10 as "3 - 1" when the Pooled Income box is checked (upper left corner of Page 1).

Valid characters are "1" and blank.

Invalid Condition - Field 01PII will generate as a field error if the PII Code is other than "1" or blank.

Correction Procedures:

Description - Field 01PIC is a numeric field edited in the left margin next to Line 10 as "4 - 1" .

Valid characters are "1" and blank.

Invalid Condition - Field 01PIC will generate as a field error if the Penalty and Interest Code is other than "1" or blank.

Correction Procedures:

C&E is no longer going to edit Missing Schedule Codes in the left margin of the return. Instead, they are to correspond for the missing schedules.

Correction Procedures:

Description - Field 01ISI is edited in the left margin next to Line 12 as "6 -" followed by the appropriate code when Form 6252 (Installment Sale Income) is attached.

Valid characters are "1," "2," "3," and blank.

Invalid Condition - Field 01ISI will generate as a field error if the Installment Sales Indicator Code is other than "1," "2," "3," or blank.

Correction Procedures:

Description - The Historic Structure Code applies to any return for Tax Periods 198212 and subsequent.

Field 01HSC is edited in the left margin next to Line 12 as "7 - 3" when the Form 3468 (Investment Credit) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on the following:

Valid Historic Structure Codes are "3" and/or blank.

Invalid Condition - Field 01HSC will generate as a field error when the Historic Structure Code is other than "3" or blank.

Correction Procedures:

If a Department of Interior Certification letter or form is attached to the return, do not detach it from Form 1041.

Description - Field 01QNT is in the entity section (Part I) of Form 1041-QFT only. Valid characters are numeric only.

Invalid Condition - Field 01QNT will generate as a field error if other than numeric.

Correction Procedures -Correct all misplaced entries, coding errors, and transcription errors.

Description - will be edited on the bottom center margin of the 1041 return, page 1. It will be used whether or not the Form 8948, Preparer Explanation for Not Filing Electronically, has been attached to the 1041 return. Valid characters are the following numeric one-digit code:

Description - Return Processing Code (RPC) is an alpha or numeric character used to identify a specific condition on the return.

RPCs are edited on Page 1, to the right of Line 1 in the margin area for Form 1041, Form 1041-QFT, and Form 1041-N.

A maximum of 35 RPCs can be entered into Field 01RPC.

The valid RPC codes are:

A foreign address will contain:

Returns with addresses in the U.S. Territories or Freely Associated State (FAS) are considered to be a foreign return for processing purposes but are entered the same as domestic addresses.

Listed below are the fields contained in Section 02. Data in this section is obtained from Forms 1041, 1041-QFT, and 1041-N:

Description - Field 02CON is in the entity section of the return.

Valid Condition - Field 02CON has 35 positions and valid characters are alpha, numeric, ampersand, dash, slash, or percent (%).

Invalid Condition - Field 02CON is invalid if any of the following conditions are present: