Form 8308

• The schema for Form 8308 did not include the proper fields to allow for the input of a foreign transferor identification number.  They should have been able to populate this field with the values of "APPLDFOR" or "FOREIGNUS".  This is causing a schema validation error for the 1065/1065B.

Workaround:

• If you are filing your Form 1065 or 1065B and need to complete and attach Form 8308 with a foreign transferor identification number, you will need to submit the Form(s) 8308 as a PDF.  Label this file "F8308ForeignID.pdf".  (This workaround will be used for TY2006 and TY2007).  The schemas will be corrected effective 1/5/2009.

Form 5713

• The Form 5713 schema erroneously shows Line 13a as required. Line 13a is not required if the answers to Lines 11 and 12 are both "No."

Workaround:

• If you are filing Form 5713 for tax year 2007 or 2008 and the answers to Lines 11 and 12 are both No, then you can attach Form 5713 as a PDF. Use "Form 5713 Document" as the Description for the PDF attachment. If you prefer not to attach Form 5713 as a PDF, you can select No as the responses for Line 13a to prevent a reject. The schema will be corrected for Tax Year 2009.

Schedule K (Form 1065)

• The current schema requires that Schedule K have at least one entry recorded on it. The 1065/1065-B instructions for filing an amended TEFRA Partnership return state that a blank 1065/1065-B is to be filed along with Form 8082 and any Schedule K-1s that have changes. By following the form instructions, the return will reject.

Workaround:

• If you are filing an amended TEFRA Partnership return, complete the applicable lines on the Form 1065/1065-B showing the corrected amounts and attach Form 8082 and the appropriate Schedule K-1s.

Schedule M-3 (Form 1065)

• Returns with a net loss of other U.S. disregarded entities (Part I, Line 7b on Schedule M-3 (Form 1065)) must be filed after March 2, 2008.  Schedule M-3 (Form 1065), Net Income (Loss) Reconciliation for Certain Partnerships Part I, Line 7b has an entry for net income or (loss) of other U.S. disregarded entities. The schema for TY2007v3.0 and 3.1 has an e-File type that restricts the amount to a non-negative entry; therefore, a loss cannot be reflected. The e-File type for Line 7b will be corrected on March 3, 2008, in schema version 3.2 to “USAmountType,” which will allow for either a positive or negative number.

Form 1065-B

• Two statements were erroneously defined as required for Form 1065-B.
  Schema version 2007v3.0 has 2 statements erroneously defined as required for Form 1065-B: Other Foreign Disregarded Entity Schedule (OthForDisregEntSch) and Other U.S. Disregarded Entity Schedule (OthUSDisregEntSch). These statements have been redefined as optional for schema version 3.1.

Workaround:

• When submitting a Form 1065-B, attach both statements to the return. No information is required in the statements. This workaround is needed to accept returns through January 20, 2008, for ATS and February 3, 2008, for Production. After these dates, Form 1065-B can be accepted without these statements.

Binary Attachments

• It has come to the attention of the Modernized e-File office that some transmitters/software developers/return originators are creating binary files incorrectly. In some instances, the IRS was unable to display the PDF document because of improper formatting. Effective immediately, please ensure that binary attachments are created according to the PDF standards in this correspondence. The internal identifier (first five bytes of the file) must be the standard PDF identifier, "%PDF-". If you have clients who use your software, please communicate to them the need to correctly create the binary files before transmitting. Beginning January 2008, returns with incorrectly formatted binary files (PDF documents) will be rejected.