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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 26. Miscellaneous Tax-Exempt Governmental Entities (TE/GE) Tax Returns (Cont. 5)

3.11.26  Miscellaneous Tax-Exempt Governmental Entities (TE/GE) Tax Returns (Cont. 5)

3.11.26.4 
Error Resolution - Instructions for Tax-Exempt Bonds

3.11.26.4.11 
Forms 8038, 8038-G, 8038-GC and 8328 - Error Correction

3.11.26.4.11.113  (01-01-2009)
Field 079E
For Bank Loans for Vehicles

  1. Field length - 13 positions

  2. Field 079E is the For Bank Loans for Vehicles Amount and has 13 positions. It is located on Form 8038-GC in Part II, line 9e.

  3. This field is valid if blank.

  4. This field is numeric and transcribed in dollars only.

3.11.26.4.11.113.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

3.11.26.4.11.114  (01-01-2009)
Field 079F
For Bank Loans for Office Equipment

  1. Field length - 13 positions

  2. Field 079F is the For Bank Loans for Office Equipment Amount and has 13 positions. It is located on Form 8038-GC in Part II, line 9f.

  3. This field is valid if blank.

  4. This field is numeric and transcribed in dollars only.

3.11.26.4.11.114.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

3.11.26.4.11.115  (01-01-2009)
Field 079G
For Bank Loans for Real Property

  1. Field length - 13 positions

  2. Field 079G is the For Bank Loans for Real Property Amount and has 13 positions. It is located on Form 8038-GC in Part II, line 9g.

  3. This field is valid if blank.

  4. This field is numeric and transcribed in dollars only.

3.11.26.4.11.115.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

3.11.26.4.11.116  (01-01-2009)
Field 079H
For Bank Loans for Other

  1. Field length - 13 positions

  2. Field 079H is the For Bank Loans for Other Amount and has 13 positions. It is located on Form 8038-GC in Part II, line 9h.

  3. This field is valid if blank.

  4. This field is numeric and transcribed in dollars only.

3.11.26.4.11.116.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

3.11.26.4.11.117  (01-01-2009)
Field 079I
Proceeds Used to Currently Refund Prior Issue(s)

  1. Field length - 13 positions

  2. Field 079IA is the Proceeds Current Refund Amount and has 13 positions. It is located on Form 8038-GC in Part II, line 9i.

  3. This field is valid if blank.

  4. This field is numeric and transcribed in dollars only.

3.11.26.4.11.117.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

3.11.26.4.11.118  (01-01-2009)
Field 079J
Proceeds from Another Tax Exempt Amount

  1. Field length - 13 positions

  2. field 079J is Proceeds from Another Tax Exempt Amount and has 13 positions. It is located on Form 8038-GC in Part II, line 9j.

  3. This field is valid if blank.

  4. This field must be numeric and is transcribed in dollars only.

3.11.26.4.11.118.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

3.11.26.4.11.119  (01-01-2009)
Field 079K
Other

  1. Field length - 13 positions

  2. field 079K is Other Amount and has 13 positions. It is located on Form 8038-GC in Part II, line 9k.

  3. This field is valid if blank.

  4. This field must be numeric and is transcribed in dollars only.

3.11.26.4.11.119.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

3.11.26.4.11.120  (01-01-2009)
Field 0710
Designated Issue Section 265 Box

  1. Field length - 1 position

  2. field 0710 is the Designated Issue Section 265 Box and has 1 position. It is located on Form 8038-GC in Part II, line 10.

  3. This field may be numeric.

  4. This field is valid if entry is 1 or blank.

3.11.26.4.11.120.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

    2. Enter a "1" if the box is checked.

    3. If the box is not checked, delete the entry in Field 0710.

3.11.26.4.11.121  (01-01-2009)
Field 0711
Penalty Payment Election Indicator Box

  1. Field length - 1 position

  2. Field 0711 is the penalty Payment Election Indicator Box and has 1 position. It is located in Part II, line 11.

  3. This field is invalid if it is other than "1" or blank.

3.11.26.4.11.121.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

    2. If the box is checked, enter "1" in Field 0711.

    3. If the box is not checked, delete the entry in Field 0711.

3.11.26.4.11.122  (01-01-2009)
Field 0713
Vendor's or Bank's EIN

  1. Field length - 9 positions

  2. Field 0713 is the Vendor's or Bank's EIN. It is located in Part II, line 13.

  3. This field valid if numeric

  4. This field is valid if blank.

3.11.26.4.11.122.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8038-GC:

    1. Correct any coding or transcription errors.

    2. If unable to perfect, delete the entry in Field 0713.

3.11.26.4.11.123  (01-01-2009)
Section 08 - 8328

  1. Section 08 alpha designators, title, location and field lengths are listed below:

    Section 08
    Field Title Form 8328 Field Lengths
    0801 Total Volume Cap Part II, Line 1 13
    0802 Aggregate Section 146 Amount Part II, Line 2 13
    0803 Total Volume Cap Exchanged Mortgage Credit Certificate Amount Part II, Line 3 13
    0804 Total Volume Cap Allocated Bonds Amount Part II, Line 4 13
    0805 Total Volume Cap Amount Part II, Line 5 13
    0805> Total Volume Cap Amount Underprint   13
    0806 Total Unused Volume Cap Amount Part II, Line 6 13
    0806> Total Unused Volume Cap Amount Underprint   13
    0811 Total Carryforward Amount Part II, Line 11 13
    0811> Total Carryforward Amount Underprint   13
    0812 Total Volume Cap Calendar Year Amount Part III, Line 12 13
    0813 Total Section 142 Calendar Year Amount Part III, Line 13 13
    0814 Unused Volume Cap Carryforward Amount Part III, Line 14 13
    0814> Unused Volume Cap Carryforward Amount Underprint   13
    0815 Elected Carryforward Amount Part III, Line 15 13
    0815> Elected Carryforward Amount Underprint   13

3.11.26.4.11.124  (01-01-2009)
Field 0801
Total Volume Cap

  1. Field length - 13 positions

  2. Field 0801 is the Total Volume Cap and has 13 positions. It is located on Form 8328 in Part II, line 1.

  3. This field will be invalid if it is blank or non-numeric.

  4. This field is transcribed in dollars only.

3.11.26.4.11.124.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

    2. Enter the amount from Part II, Line 1 in Field 0801.

    3. If Part II, Line 1 is blank, and Part III, Line 15 has an entry, enter "1" in Field 0801 and "1" in Field 0806.

    4. If Part II, Line 1 and Part III Line 15 is blank, SSPND 211 and attach a correspondence action sheet.

  2. Rejects will:

    1. After reply is received, perfect the return.

    2. If no reply, enter CCC "3" and "1" in Field 0801.

3.11.26.4.11.125  (01-01-2009)
Field 0802
Aggregate Section 146 Amount

  1. Field length - 13 positions

  2. Field 0802 is the Aggregate Section 146 Amount and has 13 positions. It is located on Form 8328 in Part II, line 2.

  3. This field is numeric and transcribed in dollars only.

  4. This field is valid if blank.

3.11.26.4.11.125.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

3.11.26.4.11.126  (01-01-2009)
Field 0803
Total Volume Cap Exchanged Mortgage Credit Certificate Amount

  1. Field length - 13 positions

  2. Field 0803 is the Total Volume Cap Exchanged Mortgage Credit Certificate Amount and has 13 positions. It is located on Form 8328 in Part II, line 3.

  3. This field is numeric and transcribed in dollars only.

  4. This field is valid if blank.

3.11.26.4.11.126.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

3.11.26.4.11.127  (01-01-2009)
Field 0804
Total Volume Cap Allocated Bonds Amount

  1. Field length - 13 positions

  2. Field 0804 is the Total Volume Cap Allocated Bonds Amount and has 13 positions. It is located on Form 8328 in Part II, line 4.

  3. This field is numeric and transcribed in dollars only.

  4. This field is valid if blank.

3.11.26.4.11.127.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

3.11.26.4.11.128  (01-01-2009)
Field 0805
Total Volume Cap Amount

  1. Field length - 13 positions

  2. Field 0805 is the Total Volume Cap Amount and has 13 positions. It is located on Form 8328 in Part II, line 5.

  3. This field is numeric and transcribed in dollars only.

  4. This field will underprint if the transcribed and generated amounts differ by more than $999.99 (+/-).

3.11.26.4.11.128.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

    2. If Line 5 is blank, and there are entries in Lines 2 - 4, add the amounts on Lines 2 through 4 and enter the total in Field 0805.

    3. If there is an amount on Line 5, and Lines 2 - 4 are blank, enter the amount from Line 5 on Line 2, Field 0802.

    4. If the total of Lines 2 - 4 do not equal Line 5, enter the total of Lines 2 - 4 on Line 5, Field 0805.

3.11.26.4.11.129  (01-01-2009)
Field 0806
Total Unused Volume Cap Amount

  1. Field length - 13 positions

  2. Field 0806 is the Total Unused Volume Cap Amount and has 13 positions. It is located on Form 8328 in Part II, line 6.

  3. This field is numeric and transcribed in dollars only.

  4. This field will underprint if the transcribed and generated amounts differ by more than $999.99 (+/-).

3.11.26.4.11.129.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

    2. Enter the amount from Part II, Line 6 in Field 0806.

    3. If Part II, Line 6 is blank, and Part III, Line 15 has an entry, enter "1" in Field 0806F and "1" in Field 0801.

    4. If Part II, Line 6 and Part III Line 15 are blank, SSPND 211 and attach a correspondence action sheet.

  2. Rejects will:

    1. After reply is received, perfect the return.

    2. If no reply, enter CCC "3" and if subtracting Line 5 from Line 1 does not equal Line 6, subtract Line 5 from Line 1 and enter the amount on Line 6, Field 0806. If there are no entries, enter a "1" on Line 6, Field 0806..

3.11.26.4.11.130  (01-01-2009)
Field 0811
Total Carryforward Amount

  1. Field length - 13 positions

  2. Field 0811 is the Total Carryforward Amount and has 13 positions. It is located on Form 8328 in Part II, line 11.

  3. This field is numeric and transcribed in dollars only.

  4. This field is valid if blank, if line 1, line 6, and lines 7 through 10j are blank, and line 15 has an entry.

  5. This field will be invalid if, after subtracting line 6 from line 11, the difference is more than $999.99 (+/-).

3.11.26.4.11.130.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

    2. If Line 11 and Lines 7- 10j are blank, enter a "1" on Line 11, Field 0811. Photocopy the return and attachment(s), and forward the copy within 21 days, with Form 3210, to TEB Compliance and Program Management to:

      Internal Revenue Service
      Attn: Steven Chamberlin
      SE:T:GE:TEB:CPM
      1122 Town and Country Commons, Room 128
      Chesterfield, MO 63017

      Continue processing the return.

    3. If Line 11 is blank, and there are entries in Lines 7 - 10j, add the amounts on Lines 7 through 10j. Compare the total of Lines 7 through 10j, to the amount on line 6.

    4. If the total of lines 7 through 10j is equal to or less than the amount on line 6, enter the total of lines 7 through 10j in Field 0811.

    5. If the total of lines 7 through 10j is greater than line 6, enter the amount from line 6 in Field 0811.

3.11.26.4.11.131  (01-01-2009)
Field 0812
Total Volume Cap Calendar Year Amount

  1. Field length - 13 positions

  2. Field 0812 is the Total Volume Cap Calendar Year Amount and has 13 positions. It is located on Form 8328 in Part III, line 12.

  3. This field is numeric and transcribed in dollars only.

  4. This field is valid if blank.

3.11.26.4.11.131.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

3.11.26.4.11.132  (01-01-2009)
Field 0813
Total Section 142 Calendar Year Amount

  1. Field length - 13 positions

  2. Field 0813 is the Total Section 142 Calendar Year amount and has 13 positions. It is located on Form 8328 in Part III, line 13.

  3. This field is numeric and transcribed in dollars only.

  4. This field is valid if blank.

3.11.26.4.11.132.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

3.11.26.4.11.133  (01-01-2009)
Field 0814
Unused Volume Cap Carryforward Amount

  1. Field length - 13 positions

  2. field 0814 is the Unused Volume Cap Carryforward Amount and has 13 positions. It is located on Form 8328 in Part III, line 14.

  3. This field is numeric and transcribed in dollars only.

  4. This field will underprint if the transcribed and generated amounts differ by more than $999.99 (+/-).

3.11.26.4.11.133.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

    2. If Line 14 is blank and there are entries on line 12 and line 13, Subtract line 13 from line 12 and enter the amount in Field 0814.

3.11.26.4.11.134  (01-01-2009)
Field 0815
Elected Carryforward Amount

  1. Field length - 13 positions

  2. Field 0815 is the Elected Carryforward Amount and has 13 positions. It is located on form 8328 in Part III, line 15.

  3. This field is numeric and transcribed in dollars only.

  4. This field is valid if blank, if there are amounts on line 1, line 6, and line 11.

  5. This field is valid if the amount on line 15 is equal to or less than the amount on line 14.

  6. This field will be invalid if, after subtracting line 14 from line 15, the difference is more than $999.99(+/-).

3.11.26.4.11.134.1  (01-01-2009)
Correction Procedures

  1. To correct Form 8328:

    1. Correct any coding or transcription errors.

    2. If the amount on line 15 is greater than the amount on line 14, enter the amount on line 14 in Field 0815.

    3. If the amount on line 15 is equal to or less than the amount on line 14, enter the amount on line 15 in Field 0815.

    4. If Lines 1, 6, and 11 are blank, and Lines 14 and 15 are also blank, if after corresponding for line 1, there is no reply, enter a "1" on Line 15, Field 0815. Photocopy the return, envelope, and attachment(s), and forward the copy within 21 days, with Form 3210, to TEB Compliance and Program Management to:

      Internal Revenue Service
      Attn: Steven Chamberlin
      SE:T:GE:TEB:CPM
      1122 Town and Country Commons, Room 128
      Chesterfield, MO 63017

      Continue processing the return.

3.11.26.4.12  (01-01-2009)
Form 8038-T Error Correction

  1. This section provides field descriptions and instructions for correcting error and reject conditions for Form 8038-T, Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate.

3.11.26.4.12.1  (01-01-2009)
Section 01 - Form 8038-T

  1. See exhibit 3.11.26-14 for field locations.

  2. Section 01 alpha designators, title, location and field lengths are listed below:

    Note:

    See IRM 3.11.26.3.5 Forms Revision to determine the appropriate form revision and correct accordingly

    Section 01
    Field Title Form 8038-T Field Lengths
    RMIT> Remittance Amount Blue/Green Money Amount 11
    01NC Name Control Part I, Line 1 4
    >>>> Name Control Underprint   4
    01EIN Employer Identification Number Part I, Line 2 9
    01TXP Tax Period Top right side of Return 6
    01RPT Report Number Part I, Line 4 3
    01CCC Computer Condition Code Part II, dotted portion of Line 12 10
    01RCD Received Date Center of Return 8
    01CRD Correspondence Received Date Right of Line 7 8
    01NM1 Issuers Name Part I, Line 1 35
    01NM2 Issuers Second Name Line Entity Section 35
    01CON In Care of Name Line Entity Section 35
    01FAD Foreign Address Entity Section 35
    01ADD Street Address Part I, Line 3 35
    01CTY City Part I, Line 5 22
    01ST State Part I, Line 5 2
    01ZIP ZIP Code Part I, Line 5 12
    01INM Name of Issue Part 1, line 7 35
    01DTI Date of Issue Part I, Line 6 8
    01CUS Cusip Number Part I, Line 8 12
    01CAF CAF Indicator (Not Edited) 1

3.11.26.4.12.2  (01-01-2009)
Field RMIT>
Remittance Amount

  1. Field length - 11 positions

  2. Field RMIT> is the amount of remittance submitted with the return. It is dollars and cents and is the blue/green edited money amount. This field cannot be changed by Error Resolution.

3.11.26.4.12.3  (01-01-2009)
Field 01NC
Name Control/Check Digit

  1. Field length - 4 positions

  2. Field 01-NC, Name Control or Check Digit, is edited (underlined) from Part I, Line 1.

  3. This field must have 1 to 4 characters (alpha, numeric, ampersand, hyphen).

  4. This field may have 1 to 3 blanks.

  5. The name control and check digit have their own validity check.

  6. A Name Control is invalid if:

    1. The 1st position is other than a letter or number, or

    2. The 2nd, 3rd, and 4th positions contains characters other than letters, numbers, ampersand (&), hyphens (-), blanks, or.

    3. Any character follows a blank.

  7. A Check Digit is invalid if:

    1. The first two positions are not blank, or

    2. The third and fourth positions are not alpha characters.

    3. "E" , "G" , or "M " are present in Check Digit.

3.11.26.4.12.3.1  (01-01-2009)
Name Control - Correction Procedures

  1. To determine the correct name control see IRM 3.13.2, BMF Account Numbers .

  2. Line through the entry in Field 01NC, and enter the correct name control above it. If the name control contains fewer than 4 characters, enter and circle the number of positions remaining.

3.11.26.4.12.3.2  (01-01-2009)
Check Digit - Correction Procedures

  1. Correct any coding or transcription errors.

  2. Check the EIN in Field 01EIN. If EIN is transcribed correctly, enter the Name Control in Field 01NC.

3.11.26.4.12.3.3  (01-01-2009)
Name Control Underprint

  1. The Name Control Underprint is designed to reduce the number of unpostables that occur when the transcribed Name Control does not match with the Name Control for the EIN on the Entity Index File (EIF).

  2. The name control underprint will be removed when the following occurs:

    1. The name control underprint and the entry Field 01NC agree.

3.11.26.4.12.3.4  (01-01-2009)
Correction Procedures

  1. Compare the entries in Field 01NC and 01EIN with the return to determine the correct action.

    IF AND/OR THEN
    The EIN on the return and EIN in Field 01EIN do not agree,   Correct Field 01EIN to agree with the return.
    The Name Control on the return and Field 01NC do not agree, Or Name Control was transcribed incorrectly, Change Field 01NC to agree with Name Control underprint.
    Correction does not agree with the Name Control underprint,   SSPND 320 to Entity.
    The Name Control edited on return agrees with Name Control in Field 01NC, And name is illegible or coded wrong, Change Field 01NC to agree with Name Control underprint.
    No obvious error,   Research using INOLE, NAMEE, or NAMEB
    Another EIN is found for the entity on the return,   Change Field 01EIN to the correct EIN
    The EIN is correct and the taxpayer merely rearranged name on return,   Change Field 01EIN to agree with the Name Control on INOLES.
    The EIN on the return is correct but Name Control on BMF is not conforming to acceptable rules for Name Controls,   SSPND 320 to Entity Control for resolution.
    The EIN on the return and Field 01EIN agree but do not agree with name on INOLES,   SSPND 320 to Entity Control for resolution.

3.11.26.4.12.4  (01-01-2009)
Field 01EIN
Employer Identification Number
(9 Positions)

  1. Field length - 9 positions

  2. Field 01EIN is the EIN. It is located in Part I, Line 2 and has nine positions.

  3. This field will be invalid if any of the following conditions are present:

    1. The field is not present or is not all numeric.

    2. The EIN is all zeros or all nines.

    3. The first two digits are 00, 07 - 09, 17 - 19, 28, 29, 49, 78, 79 or 89.

3.11.26.4.12.4.1  (01-01-2009)
Correction Procedures

  1. Search the return and attachments for a valid EIN.

    1. If a valid EIN is found, correct Field 01EIN.

    2. If a valid EIN cannot be found on the return or attachments, research using NAMEE & NAMEB.

    3. If research locates a number, correct Field 01EIN.

  2. If research locates two EINs:

    1. Research using Command Code INOLES for both EINs. If both EINs are on INOLES, reject the Entity stating "2 EINs."

  3. If an EIN cannot be located through research, reject to Entity using SSPND 320.

  4. Reject Correction:

    1. Determine the correct EIN and Name Control from research. If the EIN on the return is correct, but the name control on the TIF does not meet guidelines, attach Form 4227 and SSPND 320 to Entity Control.

    2. If Entity Control has found the correct EIN, enter it in Field 01EIN.

    3. If Entity Control has assigned an EIN, enter it in Field 01EIN. Enter the entity assignment date in the CRD Field 01CRD. The date is found in the left hand margin with an edited "E."

3.11.26.4.12.5  (01-01-2009)
Field 01TXP
Tax Period

  1. Field length - 6 positions

  2. Field 01TXP is the tax period and is edited in the upper right-hand corner of the return. Use the Date of Issue to determine the tax period.

  3. This field will be invalid if:

    1. It is all blank.

    2. It is not all numeric.

    3. The year is after the current year.

    4. The year is before 198501.

    5. It is not equal to the Date of Issue (01-DTI will also be invalid.)

3.11.26.4.12.5.1  (01-01-2009)
Correction Procedures

  1. Correct any coding or transcription errors.

  2. If the tax period has not been edited, enter the Date of Issue in YYYYMM format.

    Example:

    If Date of Issue is April 12, 2005, Field 01TXP is 200504.

  3. If the Date of Issue is missing, see IRM 3.11.26.4.12.19.1, Field 01DTI Date of Issue Error Conditions/Correction Procedures .

  4. If the tax period is prior to 198501, change the tax period (Field 01TXP) to 198501 and the Date of Issue (Field 01DTI) to 19850101.

  5. If a return is determined to be early filed:

    If the tax period is Then And
    Less than 4 months after today's date Reject using SSPND 480 Annotate "early filed" on Form 4227.
    4 months or more in the future Reject using SSPND 211 Attach a correspondence action sheet.

  6. Rejects will:

    If the tax period is Then And
    less than 4 months from today's date Hold the return until the month of the tax period on the return, Send the return through to be processed.
    4 months or more in the future If reply received Enter the correspondence received date and perfect the return.
    If NO reply Enter CCC "3" and enter the signature date as the tax period date.
    If the signature date is missing, enter the results of the IRS received date minus ten days.

3.11.26.4.12.6  (01-01-2009)
Field 01RPT
Report Number

  1. Field length - 3 positions

  2. Field 01RPT is the Report Number and is located in Part I, Line 4. This entry is numeric only. The valid range for this form is 700 - 799.

  3. This field will be invalid if blank or not within the range of 700 - 799.


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