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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 220. Error Resolution System for Excise Tax Returns (Cont. 1)

3.12.220  Error Resolution System for Excise Tax Returns (Cont. 1)

3.12.220.4 
Processing Form 720

3.12.220.4.1  (01-01-2009)
Form 720 Sections and Fields

  1. Form 720, Quarterly Federal Excise Tax Return, contains Sections 01 through 07.

  2. All money fields are entered in dollars and cents. If the money amount on a return exceeds the maximum field length allowable, enter AC 611. Rejects will follow the procedures in IRM 3.12.220.1.21DO NOT SEND A TPNC.

  3. IRS Number (Abstract Number):

    1. If only one number is reported, it will be displayed alone as Field 01 NUM.

      Exception:

      IRS Numbers 108, 109, and 113 must be Section 02.

    2. If more than one IRS Number is present, Field 01 NUM will be blank and Section 02 and/or 03 will be used. Section 04 is an address section.

      Note:

      Form 720 , Part I IRS Numbers will be in Section 02 and Part II IRS Number will be in Section 03.

    3. Although the IRS Number field length was expanded to three digits the TE is NOT required to enter a zero (0) preceding the two digit IRS Number.

  4. The due dates for most IRS Numbers on the current revision of Form 720 are as follows:

    IRS No. Tax Period Period Ending Due Date Delinquent
    All IRS Numbers 200812 12/31/08 02/02/09 ≡ ≡ ≡ ≡
      200903 03/31/09 04/30/09 ≡ ≡ ≡ ≡ ≡
      200906 06/30/09 07/31/09 ≡ ≡ ≡ ≡ ≡ ≡
      200909 09/30/09 11/02/09 ≡ ≡ ≡ ≡ ≡
      200912 12/31/09 02/01/10 ≡ ≡ ≡ ≡

3.12.220.5  (01-01-2009)
Priority III Field Errors Form 720

  1. Any field that does not meet the requirements for that field will be shown as Priority III Errors. Reasons are:

    • Non-alphabetical character in an alpha field

    • Blank space in a numeric field

    • Blank in the first position of an alpha field

    • Non-numeric character in a numeric field

    • A required field is blank

  2. This section lists the fields, errors and correction procedures.

    1. All fields will be displayed in the order encountered in the record.

    2. The AC and TPNC will never be displayed as Priority III Error.

  3. If an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Form 720, Quarterly Federal Excise Tax Return, Part I, line 1 (Total Line), Schedule A, Excise Tax Liability, must be attached.

    If not attached, correspond for Schedule A and use CC SSPND with AC 211. If no reply, continue processing.

    Exception:

    One-Time filers.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 199403 and subsequent is present in Field 0104, Schedule C, Claims, must be attached and edited by Excise Operations.

    If not attached, let the Excise Operations Classifier see the return, and then correspond for Schedule C. Use CC SSPND with AC 211 to suspend.

    Field Designator Field Length Title of Field Location on Return
    RMIT 11 Remittance (non-correctable) Green Written Entity
    01NC 4 Name Control or Check Digit Entity Portion
    01EIN 9 Employer Identification Number Entity Portion
    01PIC 1 Penalty & Interest Code Right of IRS use box
    01NUM 3 IRS Number Part I, II and III
    01TXP 6 (YYYYMM) Tax Period Entity Period
    01CCC 10 Condition Codes Left of IRS use box
    01ARN 1 Applied-Refund Indicator Boxes below line 10
    01Q01 9 IRS Tire Tax Count 1 Left of the tax amount reported for IRS Number 108, 109, and/or 113
    01Q02 9 IRS Tire Tax Count 2 Left of the tax amount reported for IRS Number 108, 109, and/or 113
    01Q03 9 IRS Tire Tax Count 3 Left of the tax amount reported for IRS Number 108, 109, and/or 113
    01Q04 9 CRN Tire Credit Count 1 Schedule C Line 15, Other Claims
    01Q05 9 CRN Tire Credit Count 2 Schedule C Line 15, Other Claims
    01Q06 9 CRN Tire Credit Count 3 Schedule C Line 15, Other Claims
    01RCD 8 (YYYYMMDD) Received Date Middle of Return
    01CAF 1 CAF Indicator Code & Edit will no longer edit this field
    01CRD 8 (YYYYMMDD) Correspondence Received Date Entity Portion

    Code & Edit will no longer edit this field
    0103 13 Total Tax Taxpayer Line 3
    0104 10 Adjustment Credit Line 4
    0108 11 FTD Credit Taxpayer Line 8
    01B/R 11 Balance Due or Overpayment Taxpayer Line 10 or 11
    01FD 10 FTD Penalty Taxpayer Top Right Penalty Box
    01CBI 1 Designee —Checkbox-Indicator Next to signature area
    01CBP 5 Designee Checkbox PIN Located below the Designee Checkbox
    01PSN 9 (a "P" and 8 numerical characters) Paid Preparer's Social Security Number (SSN) or Tax Identification Number (PTIN) Located on the right hand side below the signature area
    01PEN 9 Paid Preparer EIN Located on the right hand side below the signature area under the Preparer's SSN or PTIN
    01PTN   Paid Preparer's Telephone Number Located below the Preparer's EIN

3.12.220.5.1  (01-01-2009)
Field 01NC Name Control/Check Digits

  1. Description: Field 01NC is located in the Entity Section.

  2. Valid Condition: Field 01NC has four positions and the valid characters are alpha, numeric, hyphen, ampersand and blank.

    • A Check Digit is present only on a pre-addressed return when the EIN has been validated. If a check digit is present, the computer makes an additional mathematical test of the EIN

    • A check digit must have blanks in the first 2 positions and a letter other than "E" , "G" , or "M" in the last 2 positions

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

    • The first position is blank

    • The second, third or fourth position is not an alpha, numeric, hyphen, ampersand or blank

    • There are any intervening blanks between significant characters

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Correct using the Check Digit, if present. Delete the entry in Field 01NC and enter the correct Check Digit.

    3. If the correct Check Digit cannot be determined, enter the Name Control.

    4. If the Name Control cannot be determined, research following instructions in Document 7071, Name Control Job Aid.

3.12.220.5.2  (01-01-2009)
Field 01EIN Employer Identification Number

  1. Description: Employer Identification Number (EIN)– 9 positions

    1. Located in the Entity Section on the return.

    2. Assigned by IRS for identification of a business tax account

  2. Invalid Conditions:

    • Not all numeric

    • Less than nine characters

    • The first two digits are 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 69, 70, 78, 79, or 89

    • All zeros or all nines

  3. Correction Procedures:

    Note:

    Check the field with the return to see if the EIN was transcribed correctly.

    IF: THEN:
    Not entered correctly. Enter the correct EIN.
    Entered correctly and a correct number can be determined. Search for another valid EIN on the return or attachments and enter the correct number.
    Entered correctly and a correct number cannot be determined. Research using CC NAMEE/NAMEB for the correct number.
    If IDRS is not available use SSPND with AC 351 for further research.
    If more than one number is found or if you are unable to determine a valid EIN, suspend with AC 320 for referral to Entity Control.
    Taxpayer used an SSN. Research SSN to see if there is a cross reference EIN.
    If unable to determine a valid EIN, suspend with AC 320 for referral to Entity Control.

    Note:

    If the EIN is changed from the one the taxpayer used, issue Letter 3875C, EIN Previously Assigned, as a non-suspense letter to the address on the return. Continue processing the return. Do not send Letter 3875C if three or less digits of the EIN are transposed, different or missing or when INOLES indicates the account has been "merged to" or "merged from" .

  4. Reject Correction:

    IF: THEN:
    Entity Control finds the correct EIN. Enter it in Field 01 EIN.
    Entity Control assigns an EIN. Enter it in Field 01EIN and enter the entity assignment date found in the lower left hand corner of the return, in field 01CRD.

3.12.220.5.3  (01-01-2009)
Field 01PIC Penalty and Interest Code

  1. Description: Penalty and Interest Code(1 position):

    1. Located to the right of the Penalty and Interest box in the Entity Section

    2. The Penalty and Interest Code is used to alert the computer to perform a computation for penalty and interest when it would not normally do so

  2. Invalid Condition: Entry other than 1 or blank.

  3. Correction Procedures: Check to see if there was a transcription error.

    IF: THEN:
    Error found. Change the field to the correct entry.
    Code 1 is used when pre-computed delinquency penalty and/or interest is shown in the Penalty and Interest box and the return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    Code is not appropriate. Delete the field.

3.12.220.5.4  (01-01-2009)
Field 01NUM IRS Number

  1. Description: IRS Number(3 positions):

    • Located in Part I and II of the return

    • Also referred to as the abstract number field

    • Identifies a particular excise tax

    • Enables the money collected to be assigned to a specific trust fund, if any

  2. Invalid Conditions:

    • Not all numeric

    • Not in the IRS Number/Tax Table

  3. Correction Procedures: Compare the screen entry with the entries on the return.

    IF: AND: THEN:
    Field was transcribed incorrectly.   Correct the screen display.
    IRS Number cannot be determined from the information on the return or attachments and the tax liability is. Less than ≡ ≡ ≡ ≡ ≡ . Enter IRS Number 80.
    IRS Number cannot be determined from the information on the return or attachments and the tax liability is. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ more. Enter CCC Z and IRS Number 80.
    A secured or prepared return.   Suspend with AC 640.
    Attach Form 10886, with explanation and route the return to the originating compliance function. Note:Do not use CCC Z.

    Note:

    When a tax examiner assigns IRS Number 80 it generates a CP 183 to the taxpayer and requests them to furnish a breakdown of the reported tax liability by IRS number.

3.12.220.5.5  (01-01-2009)
Field 01TXP Tax Period

  1. Description: Tax Period (6 positions):

    • Located in Entity Section of the return

    • Consists of a tax year followed by the quarter ("YYYYMM" ). Example, the third quarter of 2008 would be "200809"

  2. Invalid Condition:

    • Not all numeric

    • Later than the current processing quarter

    • All blank

  3. Correction Procedures: Check the field with the return and attachments to see if the Tax Period was transcribed correctly.

    IF: THEN:
    Not entered correctly. Correct the screen.
    Cannot be determined. Process as a current quarter return.
    IRS pre-printed label does not have tax period. Process as a current quarter return.
    Return for Non-ADP tax period. Use RJECT or SSPND with AC620.
    Multiple tax periods. Correspond with taxpayer and suspend with AC211.
    Monthly return. Suspend it with AC343 and attach Form 10886 to route to Accounting.
    Current month is before the beginning of the tax period. Enter AC480 and attach Form 10886, Reject Routing Slip, notating "Early filed, hold for processing" . This includes "Early Filed Final" returns.

3.12.220.5.6  (01-01-2009)
Field 01CCC Computer Condition Code

  1. Description: Computer Condition Codes (10 positions):

    1. Located in the Entity Section of the return.

    2. Used to identify a special condition or computation for the computer.

    3. See 3.12.220.1.13 or Document 6209, ADP and IDRS Information, for a description of the codes and their use.

  2. Invalid Conditions:

    1. Entry is other than C, D, E, F, G, J, L, O, P, R, S, W, X, Z, 4, or 3.

    2. CCC G is present with any other CCC except W and/or 3.

    3. CCC E and F are both present.

    4. CCC E and S are both present.

    5. CCC F and P are both present.

    6. CCC 4 is present with CCC C and/or R and/or Z.

    7. CCC 7 is present with CCC D and R.

  3. Correction Procedures: Check the CCC on the return with the screen to see if they were transcribed incorrectly.

    IF: THEN:
    Transcribed incorrectly. Enter correct code(s). Otherwise, delete the code(s).
    Other CCCs are present with the W, G, and 3 Codes. Delete the other codes, except CCC W and/or 3 if CCC G is correct.
    CCC G is not correct. Delete it and leave the other codes.
    Both CCCs E and F are present then determine which is correct. Delete the other code(s).
    Both CCCs E and S are present.

    1. Determine which is correct.

    2. Delete the other.
    Both CCCs F and P are present. Delete CCC P.
    CCC 4 is present with CCC C
    and/or R and/or Z.

    1. Determine which is correct.

    2. Delete the other.

    Note:

    CCCs E and S are generated in Field 01CCC base on the Applied Refund Indicator.

  4. DO NOT ENTER CCC F ON THE FOLLOWING RETURNS.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.220.5.7  (01-01-2009)
Field 01ARN Applied Refund Indicator

  1. Description: Applied Refund Indicator (1 position):

    1. Located in Part III below line 11.

    2. Used to indicate that the taxpayer has requested an ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or credit elected.

    3. If there is an amount on line 11 then one or both of the boxes must be checked.

  2. The appropriate codes are:

    1. "Blank" box titled "Applied to your Next Return" is checked or both or neither boxes are checked.

    2. "2" box titled "Refunded" is checked.

  3. Invalid Condition: occurs if field is not blank or "2" .

    1. Applied Refund Indicator "blank" generates CCC E (if CCC F is not present) or S (if CCC F is present).

    2. Applied Refund Indicator "2" generates CCC S.

  4. Correction Procedures:

    Compare the screen entry with the boxes below line 11.

    IF: THEN:
    Invalid code is present. Correct the entry.
    Overpayment ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or neither of boxes are checked and CCC E is not present in Field 01CCC. Blank Field 01ARN.

3.12.220.5.8  (01-01-2009)
Field 01Q01-IRS Tire Tax Count 1

  1. Description: IRS Tire Count 1

    1. Located in Part I by IRS Numbers 108, 109, and 113.

    2. Used to indicate the number of tires for which the taxpayer is paying tax.

  2. Invalid Condition:

    1. There is a significant IRS tax amount for numbers 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) and IRS Tire Count 1 is zero or blank.

  3. Correction Procedures:

    1. Compare the screen entry with the entries on IRS numbers 108, 109, and 113.

      If: Then:
      There is a significant tax amount for IRS Number 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) Enter the number of tires in field 01Q01, 01Q02, and/or 01Q03 as appropriate.

3.12.220.5.9  (01-01-2009)
Field 01Q02–IRS Tire Tax Count 2

  1. Description: IRS Tire Count 2

    1. Located in Part I by IRS Numbers 108, 109, and 113.

    2. Used to indicate the number of tires for which the taxpayer is paying tax.

  2. Invalid Condition:

    1. There is a significant IRS tax amount for numbers 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) and IRS Tire Count 2 is zero or blank.

  3. Correction Procedures:

    1. Compare the screen entry with the entries on IRS numbers 108, 109, and 113.

      If: Then:
      There is a significant tax amount for IRS Number 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) Enter the number of tires in field 01Q01, 01Q02, and/or 01Q03 as appropriate.

3.12.220.5.10  (01-01-2009)
Field 01Q03–IRS Tire Tax Count 3

  1. Description: IRS Tire Count 3

    1. Located in Part I by IRS Numbers 108, 109, and 113.

    2. Used to indicate the number of tires for which the taxpayer is paying tax.

  2. Invalid Condition:

    1. There is a significant IRS tax amount for numbers 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) and IRS Tire Count 3 is zero or blank.

  3. Correction Procedures:

    1. Compare the screen entry with the entries on IRS numbers 108, 109, and 113.

      If: Then:
      There is a significant tax amount for IRS Number 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) Enter the number of tires in field 01Q01, 01Q02, and/or 01Q03 as appropriate.

3.12.220.5.11  (01-01-2009)
Field 01Q04-CRN Tire Credit Count 1

  1. Description: CRN Tire Count 1

    1. Located on Schedule C Line 15 "Other Claims" .

    2. Used to indicate the number of tires for which the taxpayer is claiming a credit.

  2. Invalid Condition:

    1. There is a significant CRN credit amount for numbers 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) and CRN Tire Count 1 is zero or blank.

  3. Correction Procedures:

    1. Compare the screen entry with the entries on Schedule C Line 15 CRN 396, 304, and/or 305.

      If: Then:
      There is a significant credit amount for CRN 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) Enter the number of tires in field 01Q04, 01Q05, and/or 01Q06 as appropriate.

3.12.220.5.12  (01-01-2009)
Field 01Q05-CRN Tire Credit Count 2

  1. Description: CRN Tire Count 2

    1. Located on Schedule C Line 15 "Other Claims" .

    2. Used to indicate the number of tires for which the taxpayer is claiming a credit.

  2. Invalid Condition:

    1. There is a significant CRN credit amount for numbers 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) and CRN Tire Count 1 is zero or blank.

  3. Correction Procedures:

    1. Compare the screen entry with the entries on Schedule C Line 15 CRN 396, 304, and/or 305.

      If: Then:
      There is a significant credit amount for CRN 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) Enter the number of tires in field 01Q04, 01Q05, and/or 01Q06 as appropriate.

3.12.220.5.13  (01-01-2009)
Field 01Q06-CRN Tire Credit Count 3

  1. Description: CRN Tire Count 3

    1. Located on Schedule C Line 15 "Other Claims" .

    2. Used to indicate the number of tires for which the taxpayer is claiming a credit.

  2. Invalid Condition:

    1. There is a significant CRN credit amount for numbers 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) and CRN Tire Count 1 is zero or blank.

  3. Correction Procedures:

    1. Compare the screen entry with the entries on Schedule C Line 15 CRN 396, 304, and/or 305.

      If: Then:
      There is a significant credit amount for CRN 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) Enter the number of tires in field 01Q04, 01Q05, and/or 01Q06 as appropriate.

3.12.220.5.14  (01-01-2009)
Field 01RCD Received Date

  1. Description: Received Date (8 positions):

    1. Located on first page of return.

    2. It is date stamped or edited on the return.

    3. It is required when the return is delinquent, amended, has a CCC R, D, G or 7.

  2. Invalid Conditions:

    • Not in YYYYMMDD format

    • Later than the current processing date

    • Not within the valid month, day range

    Month of Year Valid Format Days in Month
    January 01 01-31
    February 02 01–28 (29 in Leap Year)
    March 03 01–31
    April 04 01–30
    May 05 01–31
    June 06 01–30
    July 07 01–31
    August 08 01–31
    September 09 01–30
    October 10 01–31
    November 11 01–30
    December 12 01–31

  3. Correction Procedures: Compare the screen entry to the entry on the return. If field was transcribed incorrectly, correct the screen entry.

  4. To determine the correct "Received Date" use the priority order listed below. If multiple dates are on the return then use the earliest date.

    1. Earliest legible postmark (e.g. U.S. Post Office, Foreign Postmark, or Private Delivery Service).

    2. Revenue Officer's or other IRS official's signature date.

    3. Signature date, if within the current year (unless other information indicates signature date is invalid.

    4. DLN Julian Date minus 10 days.

    5. Current date minus 10 days.

    PRIVATE DELIVERY SERVICES
    Federal Express (FedEx):

    • FedEx Priority Overnight

    • FedEx Standard Overnight

    • FedEx 2 Day

    • FedEx International Priority

    • Fed Ex International First
    United Parcel Services (UPS):

    • UPS Next Day Air

    • UPS Next Day Air Saver

    • UPS 2nd Day Air

    • UPS 2nd Day Air A.M.

    • UPS Worldwide Express

    • UPS Worldwide Express Plus
    DHL Express (DHL):

    • DHL Same Day Service

    • DHL Next Day 10:30 am

    • DHL Next Day 12:00 pm

    • DHL Next Day 3:00 pm

    • DHL 2nd Day Service

3.12.220.5.15  (01-01-2009)
Field 01CAF Centralized Authorization File

  1. Description— Centralized Authorization File (CAF) – 1 position

    1. Editing CAF code by Code & Edit is no longer required.

    2. Forms 2848, Power of Attorney (POA) and Form 8821, Tax Information Authorization (TIA) are forwarded to the Central Authorization File Unit (CAF) by the Code & Edit function.

3.12.220.5.16  (01-01-2009)
Field 01CRD Correspondence Received Date

  1. Description: Correspondence Received Date (8 positions):

    1. Located in the center bottom portion of the Entity area in "YYYYMMDD" format. However, Code & Edit is no longer required to edit the Correspondence Received Date to the return.

    2. Field 01CRD is used as a second date in computing interest on overpayments and may be used when correspondence is received back from the taxpayer or when ERS receives a return from Entity.

    3. If all the positions in the field are blank, it does not cause an invalid condition.

  2. Invalid Conditions:

    • Not numeric

    • Not in YYYYMMDD format

    • Not in the valid, month, day range (See IRM 3.12.38.19.8, Correspondence Received Date)

  3. Correction Procedures: Compare the screen entry with the entry on the return.

    IF: THEN:
    Date is illegible. Check the attached correspondence for Form 6800, Request for Missing Information or Paper to Complete Your Return, for the correct date.
    More than one correspondence received date is stamped or written. Use the earliest date as the CRD in YYYYMMDD format.
    No reply. Leave 01CRD blank and enter a CCC 3 in 01CCC field.

3.12.220.5.17  (01-01-2009)
Field 0103 Total Tax

  1. Description: Total Tax (13 positions):

    • Located in Part Ill on line 3 of return

    • This field is dollars and cents and is a positive figure

  2. Invalid Condition:

    • Not all numeric

    • Not Positive dollar figure

    • Not in dollars and cents

  3. Correction Procedures: Compare the screen entry with the entry on the return. If the field was transcribed incorrectly then correct the screen display.

3.12.220.5.18  (01-01-2009)
Field 0104 Adjustment Credit

  1. Description: Adjustment Credit is (13 positions):

    • Located in Part Ill on line 4 of return

    • Field is dollars and cents and a positive figure

  2. Invalid Condition:

    • Not all numeric

    • Not positive dollar figure

    • Not in dollars and cents

3.12.220.5.18.1  (01-01-2009)
Correction Procedures Field 0104

  1. Compare the screen entry with the entry on the return.

    IF: AND: THEN:
    Field was transcribed incorrectly.   Correct the screen display.
    Line 4 is ≡ ≡ ≡ ≡ ≡ less.   No action is necessary.
    Line 4 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ more. It does not appear that Excise Operations has reviewed line 4. Have Excise Operations review line 4 (see lead).

    Note:

    Excise reviews line 4 daily in the Code & Edit Function.
    Line 4 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ more and line 3 has no entry.

    1. Form 8849, Claim for Refund of Excise Taxes, is not attached


    2. Form 8849 is attached.

    1. Edit zero and put IRS Number 80 on line 3 and X line 4 amount. Form 8849 must be filed to claim refund. Send TPNC to notify taxpayer.



    2. Suspend 640 to delete DLN and send to Excise for processing using Form 10886"Form 8849 and no tax on line 3" .

3.12.220.5.19  (01-01-2009)
Field 0108 Federal Tax Deposit Credit

  1. Description: Federal Tax Deposit Credit (13 positions):

    • Located in Part III on line 8

    • Field is dollars and cents and is always entered as a positive amount

    • Amount represents the total federal tax deposited by the taxpayer for the liability during the quarter

    • Credit may also include an overpayment from a previous quarter and a credit from a Form 720X, Amended Quarterly Federal Excise Tax Return

  2. Invalid Condition:

    • Not all numeric

    • Not positive dollar figure

    • Not in dollars and cents

  3. Correction Procedure: Compare the screen entry with the entry on the return. If the field was transcribed incorrectly, correct the screen display.

3.12.220.5.20  (01-01-2009)
Field 01B/R Balance Due/Overpayment

  1. Description: Balance Due/Overpayment (13 positions):

    • Located in Part III on line 10 or 11 of return

    • Field is dollar and cents and can be a positive or a negative

  2. Invalid Condition:

    • Not all numeric

    • Not in dollars and cents

  3. Correction Procedures: Compare the screen entry with the entry on the return.

    IF: THEN:
    Field was transcribed incorrectly. Correct the screen display.
    There is an overpayment. Entry will be negative.
    Return is a balance due. Entry will be positive.

3.12.220.5.21  (01-01-2009)
Field 01FD Federal Tax Deposit Penalty

  1. Description: Federal Tax Deposit Penalty (10 positions):

    • Located in the box to the right of the entity portion

    • Field is dollars and cents and is always entered as a positive amount

    • FD denotes the penalty line

  2. Invalid Condition:

    • Not all numeric

    • Not positive dollar figure

    • Not in dollars and cents

  3. Correction Procedures: Compare the screen entry with the entry on the return. If the field was transcribed incorrectly, correct the screen display.

3.12.220.5.22  (01-01-2009)
Field 01CBI-Designee Checkbox Indicator

  1. If the taxpayer checks the "Yes" box a "1" should be entered in the field.

  2. There are validity checks on the field, but the field is not correctable.

  3. Invalid Conditions: If the value is other than "1" or blank.

3.12.220.5.22.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return.

    If... Then...
    The value is other than "1" or blank, Delete the field 01CBI and continue processing.

3.12.220.5.23  (01-01-2009)
Field 01CBP-Designee Checkbox PIN

  1. The Third Party Designee Identifying Number is comprised of any 5 alpha (i.e. "A" to "Z" ), numeric (e.g. "0" to "9" ), or any combination of characters chosen by the taxpayer. The field has no validity or consistency checks and is not correctable. The field is located on the right side below the designee checkbox.

  2. The Third Party Designee Identifying Number is only for the tax period of the return on which it appears and was chosen at random by the taxpayer or taxpayer's representative. On all future filings, the taxpayer can keep or change the PIN number.

3.12.220.5.24  (01-01-2009)
Field 01PSN-Paid Preparer's Social Security Number

  1. The Paid Preparer's Social Security Number (SSN) or Tax Identification Number (PTIN) is located on the right hand side below the taxpayer's signature.

  2. If the Paid Preparer entered a Social Security Number (SSN) on the return it will appear on the ERS display as nine characters in SSN format, (e.g. xxx-xx-xxxx).

    1. The nine characters can not be all zeroes or nines.

    2. The nine characters must be all numeric (0 through 9). On the screen display, the Paid Preparer's SSN appears with the first position as a "P" followed by eight numeric characters (e.g. Pxxx-xx-xxxx).

  3. A Preparer Tax Identification Number (PTIN) is a valid entry in the Preparer's Social Security Number area. The PTIN is an assigned nine-digit number similar to an EIN and appears on the taxpayer's account beginning with the alpha "P" (e.g. Pxxx-xx-xxxx).

  4. Line through the Preparer's SSN or PTIN if it is invalid (e.g. all zeroes, all nines, less than 9 digits, etc...).

3.12.220.5.24.1  (01-01-2009)
Field 01PEN-Paid Preparer's EIN

  1. The Preparer's EIN is located below the Preparer's SSN or PTIN on the right hand side. This field is not valid for any forms prior to January 2005.

  2. The Preparer's EIN must be a nine-digit numeric number. The EIN cannot be all zeroes or all nines. Also, the first two digits must not be invalid for field 01EIN ( See IRM 3.12.220.5.2.).

  3. Line through or circle the preparer's EIN if it is invalid.

3.12.220.5.25  (01-01-2009)
Field 01PTN-Paid Preparer's Telephone Number

  1. The Preparer's Phone Number is located on the right hand side below the Preparer's EIN. The field is not valid for any forms prior to January 2005.

3.12.220.5.26  (01-01-2009)
Fields 02T01 through 02T24 Section 2 IRS Tax

  1. Description—IRS Tax– 12 positions:

    • Located in Part 1 of return

    • Field is dollars and cents and positive only

    Field Designator
    Field Length    		 Title of Field Location on Return
    02T01 through 02T24 12 IRS TAX (first through twenty-fourth) Form 720, Quarterly Federal Excise Tax Return, Part-I

  2. Invalid Condition:

    • Not all numeric

    • Not present

    • Not in dollars and cents

    • Not positive dollar figure

  3. Correction Procedures:

    1. If screen display shows Section 02 present, use GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

    3. Compare the screen entries with the entries on the return. If there is an entry on the return, correct the screen display.

3.12.220.5.27  (01-01-2009)
Fields 02N01 through 02N24 Section 2 IRS Number

  1. Description: IRS Numbers (3 positions):

    • Located in Part 1 of return

    • IRS Numbers are also referred to as abstract numbers and identify a particular excise tax

    Field Designator Field Length Title of Field Location on Return
    02N01 through 02N24 3 IRS Number (first through twenty-fourth) Form 720, Quarterly Federal Excise Tax Return, Part-I

  2. Invalid Condition: Not all numeric.

  3. Correction Procedures:

    1. If screen display shows Section 02 present, use GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

    3. Duplicate IRS Numbers will not cause a field error.

3.12.220.5.28  (01-01-2009)
Fields 03T01 through 03T12 Section 3 IRS TAX

  1. Description: IRS TAX (12 positions):

    • Located in Part II of return

    • Field is dollars and cents and positive only

    Exception:

    IRS Numbers 108, 109, and 113 cannot be in Section 03.

    Field Designator Field Length Title of Field Location on Return
    03T01 through 03T12 12 IRS Tax (first through twelve) Form 720 Quarterly Federal Excise Return, Part-II

  2. Invalid Condition:

    • Not all numeric

    • Not present

    • Not in dollars and cents

    • Not positive dollar figure

  3. Correction Procedures:

    1. If screen display shows Section 03 present, use GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

    3. Duplicate IRS Numbers will not cause a field error.

    4. Compare the screen entries with the entries on the return. If there is an entry on the return, correct the screen display.

3.12.220.5.29  (01-01-2009)
Fields 03N01 through 03N12 Section 3 IRS Number

  1. Description: IRS Number (3 positions):

    • Located in Part II of return

    • IRS Numbers are also referred to as abstract numbers and identify a particular excise tax

    Field Designator Field Length Title of Field Location on Return
    03N01 through 03N12 3 IRS NUM (first through twelfth) Form 720, Quarterly Federal Excise Tax Return, Part-II

  2. Invalid Condition: Not all numeric.

  3. Correction Procedures:

    1. If screen display shows Section 03 present, use GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

    3. Duplicate IRS Numbers will not cause a field error.

3.12.220.5.30  (01-01-2009)
♦Field 04CON - "In Care of Name" ♦

  1. Description: Field 04CON is located in the Entity Section of the return.

  2. Valid Condition: Field 04CON has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent.

  3. Invalid Condition: Field 04CON is invalid if any of the following conditions are present:

    • The first position is blank, or

    • The first character of the "in-care-of name" is not alpha, numeric, or other acceptable character, or

    • There are two consecutive blanks between significant characters

  4. Correction Procedures:

    IF: THEN:
    A blank is in the first position.

    1. Delete blank.

    2. Enter the "in-care-of name" beginning with an alpha or numeric in Field 04CON.

    The first character of the "in-care-of" is not alpha or numeric.

    1. Verify in-care-of name on the return.

    2. Enter the "in-care-of name" beginning with an alpha or numeric in Field 04CON.

    Two consecutive blanks are present between significant characters.

    1. Delete any unnecessary blanks in Field 04CON.

3.12.220.5.31  (01-01-2009)
♦Field 04FAD Foreign Address♦

  1. Description: Field 04FAD is located in the Entity Section of the return.

    1. This field will contain an entry when there is a foreign address present on the return.

    2. Field 04FAD should not be present on "G" Coded returns.

  2. Valid Condition: Valid characters are alpha, numeric and special characters.

  3. Invalid Condition: Field 04FAD will generate as an error when any of the following conditions are present:

    1. The first position is blank,

    2. Any character follow two consecutive blanks, or

    3. There are more than 35 characters present in the field.

    Note:

    ISRP is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

  4. Correction Procedures:

    1. Correct all coding and transcription errors.

      IF: THEN:
      Field 04FAD is present. Input GTSEC 04.

      Ensure Field 04CTY contains a foreign country code and Field 04ST contains a (period/space).
      A foreign address is not present on the return. Verify the address on the return is not a foreign address. Continue processing the return.

    2. If Form 8822, Change of Address, is attached to the return, compare the name and address information on the Form 8822 to the return.

    IF: THEN:
    The information is the same Take no action and continue processing.
    The information is different 1. Detach Form 8822.

    2. Route to Entity Control on Form 10886 or follow local procedures.

    3. Notate on Form 10886, "CHANGE OF ADDRESS PER FORM 8822"

    Note:

    The lead tax examiner is required to batch all Forms 8822 daily and hand carry to Entity Control for expedited processing.

3.12.220.5.32  (01-01-2009)
Foreign Addresses General Information

  1. Cincinnati Submission Processing Center (CSPC) will process foreign/international addresses and U.S. Possessions excise returns.

  2. The determination of a foreign/international address is based only on the address of the entity. A foreign address will contain:

    • Street Address or P.O. Box

    • City or town name

    • Other principal subdivision (i.e. province, state, county, etc.)

    • Postal code, if present

    • Foreign country

  3. A foreign (international) address is any address that is not in one of the 50 states or the District of Columbia. All U.S. Possessions are considered foreign.

    • American Samoa (AS)

    • Federated States of Micronesia (FM)

    • Guam GU)

    • Marshall Islands (MH)

    • Northern Mariana Islands (MP)

    • Palau (PW)

    • Puerto Rico (PR)

    • U.S. Virgin Islands (VI)

  4. Returns with addresses in the U.S. Possessions are considered to be a foreign excise return for processing purposes and are entered in the same way as domestic addresses.

    1. A two-character alpha code must be entered in Field 04ST for the possession name.

      U.S. Possessions Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI

    2. A ZIP Code must be present.

  5. An APO or FPO is not a foreign address. The Postal Service established new address requirements for APO/FPO addresses. If an address appears in the old APO/FPO format, such as "APO New York, NY 091XX" , convert to the new State code based on the ZIP Code as follows: "APO AE 091XX" .

    If ZIP Code is… Then convert to…
    09000 to 09499 and 09600 to 09899 "APO AE" followed by ZIP Code
    095XX "FPO AE 095XX"
    34000 to 34049 "APO AA" followed by ZIP Code
    34050 to 34099 "FPO AA" followed by ZIP Code
    96200 to 96599 and 98700 to 98759 "APO AP" followed by ZIP Code
    966XX and 98760 to 98799 "FPO AP" followed by ZIP Code

  6. All excise returns with a foreign address must be shipped to CSPC.

    1. SSPND 650

    2. .Attach Form 10886 with the notation "FORWARD TO CSPC" .

    3. Prepare letter 86C to inform the taxpayer that the excise return has been sent to Cincinnati.

3.12.220.5.33  (01-01-2009)
Field 04ADD Street Address

  1. Description: Street Address (35 positions):

    • Located in the Entity Section of the return

    • Will contain data on non-preaddressed returns when the address change box has been checked or on a preaddressed label when a change has been indicated

    Field Designator
    Field Length    		 Title of Field Location on Return
    04ADD 35 Street Address Entity Portion

  2. Invalid Condition:

    • Street address is present and the first position is blank

    • Any character is present other than alphabetic, numeric, blank, hyphen or slash

  3. Correction Procedures:

    Compare the screen entries with the entry on the return and attachments.

    IF: THEN:
    Field was transcribed incorrectly. Correct the screen display.
    Field cannot be perfected. Research IDRS using CC INOLE or local Campus procedures. If no data then delete Section 04.

3.12.220.5.34  (01-01-2009)
Field 04CTY City

  1. Description: City (22 positions):

    • Located in the Entity Section of the return

    • Certain cities in each state are designated as "Major Cities"

    • A special two alpha character has been assigned to them as Major City codes which represent that city and state (See Document 7475 and Exhibit 3.12.220–7)

    • DIS/ISRP will enter the major city code as appropriate

    • Is transcribed with no intervening blanks and no other characters in the City-State fields either before or after the code

    Field Designator Field Length Title of Field Location on Return
    04CTY 22 City Entity Portion

  2. Invalid Conditions:

    • Any character other than blank or alphabetic is present

    • City is present and the first position is blank

    • City is present and the second and third characters are blank

    • Any characters in field follow two consecutive blanks

    • An invalid Major City Code is present

    • Foreign country code is not present, incorrect or contains "XX" .

  3. Correction Procedures:

    1. Compare the screen entry with the entry on the return.

    2. Refer to Document 7475 and Exhibit 3.12.220–7, State Abbreviations, Major City Codes and Address Abbreviations for the valid codes.

    IF: THEN:
    Field was transcribed incorrectly. Correct the screen display.
    Unable to perfect from the return or attachments. Research IDRS using CC INOLE or local procedures. If no data, delete Section 04 using DLSEC.
    City not on list of Major City Codes. Delete the code and enter the actual city and state data.
    A foreign address is shown on the return. Enter appropriate foreign country code in Field 04CTY (See Exhibit 3.12.220-8).

3.12.220.5.35  (01-01-2009)
Field 04ST State

  1. Description: State (2 positions):

    • Located in the Entity Section of the return

    Field Designator Field Length Title of Field Location on Return
    Field Designator Field Length Title of Field Location on Return
    04ST 2 State Entity Portion

  2. Invalid Condition: Occurs if the entry is not shown in the table, Exhibit 3.12.220-7, U.S. Possessions, State Abbreviations, and ZIP Codes, or listed in Document 7475, State Abbreviations, Major City Codes and Address Abbreviations.

  3. Correction Procedures:

    1. Check the field on the screen with the field on the return and attachments.

    2. Army Post Office (APO) and Fleet Post Office (FPO) are not considered foreign addresses.

    3. The Postal Service established address requirements for APO/FPO addresses. If the entry appears incorrectly it must be corrected to a valid State Code abbreviation based on the ZIP code (i.e. APO New York, NY 091 XX would convert to APO AE 091 XX). The valid APO/FPO addresses are shown in Exhibit 3.12.220– 7.

    IF: THEN:
    Field was transcribed incorrectly. Correct the screen display.
    Unable to perfect. Research IDRS using CC INOLE or local Campus procedures. If no data, delete Section 04.

3.12.220.5.36  (01-01-2009)
Field 04ZIP ZIP Code

  1. Description: ZIP Code (12 positions):

    • Located in the Entity Section of the return

    • Fields are numeric or blank

    • The valid range for the 10, 11, and 12 positions of the ZIP code are all blank or all numeric

    Field Designator Field Length Title of Field Location on Return
    04ZIP 12 ZIP Code Entity Portion

  2. Invalid Condition:

    • Positions 6 through 9 of the zip code are numeric and positions 10, 11, 12 are not all blank or numeric

    • Positions 6 through 9 are all blank and positions 10, 11, 12 are not all blank

  3. Correction Procedures: Check the field on the screen with the field on the return.

    IF: THEN:
    Field was transcribed incorrectly. Correct the screen display
    Valid ZIP Code not available from the return or attachments. Research IDRS.
    If you cannot locate a valid ZIP Code:
    Refer to Form 7475,State Abbreviations, Major City Codes and Address Abbreviations, or Exhibit 3.12.220–7, U.S. Possessions, State Abbreviations and ZIP Codes, for a correct code.
    Only the first three digits of the ZIP code can be determined. Enter 01 for the fourth and fifth digits.

3.12.220.5.37  (01-01-2009)
Fields 051A through 054X Schedule A

  1. Description: Schedule A Sections 1, 2, 3, and 4–13 positions:

    • Field entries in Section 1 will be designed as 051A through 051F

    • Field entries in Section 2 will be designated as 053M through 053R

    • Last two characters of the field designator correspond to the Section number and the alpha line identifier

    • These may be either positive or negative

  2. Invalid Condition: Not all numeric or zeros.

  3. Correction Procedures:

    1. Compare the screen entries with the entries on the Schedule A. If the field was transcribed incorrectly, correct the screen display

    2. Delete if correct entry cannot be determined

    Field Designator Field Length Title of Field Location on Return
    051A 13 14–Day Rule 1st Mon (A) line Section 1
    051B 13 14–Day Rule 1st Mon (B) line Section 1
    051C 13 14–Day Rule 2nd Mon (C) line Section 1
    051D 13 14–Day Rule 2nd Mon (D) line Section 1
    051E 13 14–Day Rule 3rd Mon (E) line Section 1
    051F 13 14–Day Rule 3rd Mon (F) line Section 1
    05SRS 13 Special Rule for September Section 1 or 2
    053M 13 Alternative Method –1st Mon (M) line Section 2
    053N 13 Alternative Method –1st Mon (N) line Section 2
    053O 13 Alternative Method –2nd Mon (O) line Section 2
    053P 13 Alternative Method —2nd Mon (P) line Section 2
    053Q 13 Alternative Method –3rd Mon (Q) line Section 2
    053R 13 Alternative Method —3rd Mon (R) line Section 2

3.12.220.5.38  (01-01-2009)
Fields 06T01 through 06T21 Section 06 CRN

  1. Description: CRN amount (13 positions)

    Located on Page(s) 1, 2, and/or 3 of Schedule C (i.e. Page(s) 4, 5, and/or 6 of Form 720).

    Note:

    CRNs and amounts from Schedule C are transcribed beginning with the first amount reported and carrying on throughout the form until Section 06 is full. If there are more amounts reported on Schedule C than Section 06 can accommodate any further amounts are then transcribed to Section 07.

    Field Designator Field Length Title of Field Location on Return
    06T01 through 06T21 13 Schedule C Credit Reference Amount Page(s) 1, 2, and/or 3 of Schedule C (i.e. Page(s) 4, 5, and/or 6 of Form 720).

  2. Invalid Condition: Not all numeric.

  3. Correction Procedures:

    1. If screen display shows Section 06 present, use GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

3.12.220.5.39  (01-01-2009)
Fields 06N01 through 06N21 Section 06 CRN

  1. Description: CRN Number (3 positions):

    • Located on Page(s) 1, 2, and/or 3 of Schedule C (Page(s) 4, 5, and/or 6 of Form 720).

      Note:

      CRNs 396, 304, and 305 must be displayed and corrected in Section 06 only and cannot be present in Section 07's screen display.

      Field Designator Field Length Title of Field Location on Return
      06N01 through 06N21 3 Schedule C Credit Reference Number Page(s) 1, 2, and/or 3 of Schedule C (i.e. Page(s) 4, 5, and/or 6 of Form 720).

  2. Invalid Condition:

    • Not all numeric

    • Not in the CRN table

  3. Correction procedures:

    1. If screen display shows Section 06 present, use GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

3.12.220.5.40  (01-01-2009)
Field 07T01 through 07T15 Section 07 Credit Reference Amount

  1. Description: CRN amount (13 positions)

    Located on Page(s) 1, 2, and/or 3 of Schedule C (i.e. Page(s) 4, 5, and/or 6 of Form 720).

    Note:

    Section 07 will be used once enough fields are transcribed to fill up Section 06.

    Field Designator Field Length Title of Field Location on Return
    07T01 through 07T15 13 Schedule C Credit Reference Amount Page(s) 1, 2, and/or 3 of Schedule C (i.e. Page(s) 4, 5, and/or 6 of Form 720).

  2. Invalid condition: Not all numeric.

  3. Correction procedures:

    1. If screen display shows Section 07 present, use GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

3.12.220.5.41  (01-01-2009)
Fields 07N01 through 07N15 Section 07 CRN Reference Number

  1. Description: CRN number (3 positions)

    Located on Page(s) 1, 2, and/or 3 of Schedule C (i.e. Page(s) 4, 5, and/or 6 of Form 720).

    Field Designator Field Length Title of Field Location on Return
    07N01 through 07N15 3 Schedule C Credit Reference Number Page(s) 1, 2, and/or 3 of Schedule C (i.e. Page(s) 4, 5, and/or 6 of Form 720).

  2. Invalid condition:

    • Not all numeric

    • Not in the CRN table

  3. Correction procedures:

    1. If screen display shows Section 07 present, use GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

3.12.220.6  (01-01-2009)
Priority IV—720 Consistency/Math Errors

  1. Consistency/Math Errors will be displayed with the Error Code assigned to them for the specific error in ascending numerical order.

  2. The blank field "NC" will be displayed for the entry of TPNCs for all Math Error displays, if needed.

  3. The blank field "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed.

    Note:

    The "C" Clear Code does not permit any other corrections to the error code after it is transmitted to clear the screen.

  4. All errors must be resolved by either eliminating the error, entering a Clear Code or entering a TPNC or (SSPND) the document with the appropriate AC.

3.12.220.6.1  (01-01-2009)
♦Error Code 001 - Tax Year - Invalid Entry♦

  1. Fields Displayed -Error Code 001 will display as:

    Field Designator on Form 720 Field Name Field Length
    01NUM IRS Number 3
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01RCD Received Date 8
    S02 Section 02  
    S03 Section 03  
    01RDD Return Due Date Generated  

  2. Invalid Conditions: Error Code 001 will generate when any of the following conditions is present.

    • Computer Condition Code "G" is Not Present - The processing date is equal to or more than 2 years and 9 months after the Return Due Date or Received Date (whichever is later) and CCC "W" is not present

    • Computer Condition code "G" is Present - The processing date is equal to or more than 2 years and 9 months after the Return Due Date and CCC "W" is not present

    • On any return, the processing date is less than two years after the Return Due Date and CCC "W" is present

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

    2. Do not send returns secured by Compliance (i.e. 6020(b)), any returns with a TC 59X, any returns that are Substitute for Return prepared by Examination ("SFR" in the margin) with Document 13133 (Expedite Processing Cycle) attached, or any Dummy Telecommunication Returns prepared by Excise to Stature Control for clearance. Instead, enter W in Field 01CCC and on the return and continue processing.

    3. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

      IF: THEN:
      Field 01RCD is blank. Enter the Received Date in Filed 01RCD. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
      Determine the Received Date using the following priority:

      1. Stamped or hand written Received Date on the Return.

      2. Earliest legible postmark date of the U.S. Post Office, Foreign Postal Service, or a Private Delivery Service.

      3. Revenue Officer's or other IRS official's signature date.

      4. Signature date, if within the current year (unless other information indicates signature date is invalid).

      5. DLN Julian Date minus 10 days.

      6. Current date minus 10 days.
      CCC "W" was entered incorrectly. Delete CCC "W" from Field 01CCC.
      The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days. Enter CCC "W" in Field 01CCC and on the return.

      Note:

      Do not send the return to Statute Control.
      The return is not stamped by Statute Control within the last ninety days. SSPND 310.
      Prepare Form 10886, Reject Routing Slip, to route to Statute Control.

  4. Suspense Correction:

    1. When Statute Control returns the cleared document, enter "W" in Field 01CCC and on the return. Continue processing.

    2. Statute Control requests the record to be voided to them, SSPND 640.

3.12.220.6.2  (01-01-2009)
♦Error Code 002 - Name Control Mismatch♦

  1. Fields Displayed - Error Code 002 will display as follows:

    Field Designator on Form 720 Field Name Field Length
    CL Clear Code  
    01NC Name Control/Check Digit 4
    >>>> Name Control Underprint  
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    04CON In Care of Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP ZIP Code 12

  2. Invalid Condition- Error Code 002 will generate when the Name Control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF).

  3. Correction Procedures:

    1. Before taking any additional research steps to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the remainder of the correction procedures.

    2. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the ERS screen.

    3. Correct all misplaced entries, coding, and transcription errors.

    4. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    5. If Field 01NC and the Name Control on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct Name.

      IF: THEN:
      The Name on the return or attachment matches the Name Control on INOLES.

      1. Bring up Underprint.

      2. Enter "C" in the Clear Code field.

      The Name Control on INOLES is different from the Name on the return or attachment. Research NAMEE/NAMEB for a new EIN.

    6. If a new EIN is located, verify the Name Control using CC INOLES.

      IF: THEN:
      The Name on INOLES agrees with the Name on the return or attachment. Ensure that the entity information matches the return.
      Overlay Field 01EIN with the new EIN from NAMEE/NAMEB. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875C if less than three digits of the EIN are transposed, different or missing.
      Multiple EINs are located. SSPND 320 to Entity Control.
      Prepare Form 10886, Return Charge-Out, with the notation "MULTIPLE EINS" .
      INOLES indicates a "Merge To" (MT) EIN. Research the "MT" EIN on INOLES.
      The "MT" EIN matches the entity on the return or attachments. Enter the "MT" EIN in Field 01EIN.
      The "MT" EIN does not match the entity on the return or attachments. SSPND 320 to Entity Control.

    7. If the Name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change, research ENMOD for a new name.

      IF: THEN:
      The Name Control on ENMOD agrees with the Name on the return or attachment. Enter "C" in the Clear Code field.
      The Name Control on ENMOD or INOLES does not agree with the Name on the return or attachment. SSPND 320 to route the return to Entity.
      Attach Form 10886, Return Charge-Out, with the notation "NO RECORD" .

    8. If the Name change has not been made, research ENMOD for a pending TC 013.

      IF: THEN:
      A pending TC013 is present. Enter "C" in the Clear Code field.
      A pending TC 013 is not present. SSPND 320 to route to Entity.
      Attach Form 10886, Return Charge-Out, with the notation "REQUEST NAME CHANGE (TC 013)" .

  4. Suspense Correction:

    1. If there is an indication that Entity has assigned an EIN to the return, determine the Entity Assignment Date:

      IF: THEN:
      The Entity Assignment Date is past the Return Due Date and Received Date. Input CC GTSEC 01.
      Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date and Received Date. Continue processing.

    2. Research IDRS to determine if payments posted incorrectly:

      IF: THEN:
      The payment posted to the wrong EIN. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
      Notate on Form 3465"MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .
      Write "F3465 PREPARED" on return to the left of the Entity section.
      Enter CCC "X" in Field 01CCC.
      The payment posted correctly. Enter correct EIN in Field 01EIN and on the return.
      Enter "C" in the Clear Code field.
      Payment cannot be located. Enter "C" in the Clear Code Field.

      Note:

      A correction to any displayed field must be entered and transmitted prior to entering the "C" , which does not permit any other correction to the record.

3.12.220.6.3  (01-01-2009)
♦Error Code 003 - Check Digit Invalid♦

  1. Fields Displayed - Error Code 003 will display as:

    Field Designator on Form 720 Field Name Field Length
    01NC Name Control 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01CCC Computer Condition Code 10

  2. Invalid Condition - Error Code 03 will generate when any of the following conditions is present:

    • A Check Digit is present but not valid for the EIN.

    • The letters E, G or M are present in Field 01NC.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding, and transcription errors.

    2. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

      IF: THEN:
      The check digit in Field 01NC does not match the return or is not legible. Enter the Name Control from the return in Field 01NC.
      EIN on the return is not legible. Research NAMEE/NAMEB for correct EIN.

    3. Compare the EIN from NAMEE/NAMEB to the EIN on the return.

    IF: THEN:
    The EIN on the return matches the EIN on NAMEE/NAMEB. Enter Name Control from NAMEE/NAMEB in Field 01NC.
    Research indicates a different EIN. Verify the EIN and name on INOLES.
    Name Control on INOLES matches the name on the return or attachments. Overlay Field 01 EIN with the EIN from INOLES.
    Issue Letter 3875C as a non-suspense letter to the address on the return.

    Note:

    Do not send Letter 3875C if 3 or less digits of the EIN are transposed, different or missing.

  4. Suspense Corrections Research IDRS using BMFOL to determine if payment(s) have posted incorrectly.

    IF: THEN:
    The payment posted to the wrong EIN. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. Use local procedures to post the payment prior to the return.
    Notate on Form 3465"MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .
    Write "F3465 PREPARED" on the return, to the left of the entity.
    Enter CCC "X" in Field 01CCC.
    Payment posted to the correct EIN. Enter the correct EIN in Field 01EIN and on the return.
    The payment cannot be located. No Action required.

3.12.220.6.4  (01-01-2009)
♦Error Code 004 - Name Control/EIN Validation♦

  1. Fields Displayed - Error Code 004 will display as follows:

    Field Designator on Form 720 Field Name Field Length
    CL CLEAR CODE  
    01NC Name Control/Check Digit 4
    >>>> Name Control Underprint  
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01CCC Computer Condition Code 10

  2. Invalid Condition: Error Code 004 will generate when any of the following conditions is present:

    • The EIN is not present at Master File (NAP)

    • The Entity Index File (ElF) and the National Account Profile (NAP) were not accessed or were not operational, causing a blank underprint in Field 01NC

    Note:

    An Underprint of "XXXX" indicates that there is no account on the Master File, while a blank underprint indicates that the NAP has not been accessed or was not operational.

  3. Correction Procedures:

    1. Before taking any additional research steps to resolve Error Code 004, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Name Control/EIN have posted to the NAP. If Error Code 004 reappears, continue with the remainder of the correction procedures.

    2. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the ERS screen.

    3. Correct all misplaced entries, coding, and transcriptions errors.

    4. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    5. If Field 01NC and the Name Control on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct Name Control:

      IF: THEN:
      The Name on the return or attachment matches the Name Control on INOLES.

      1. Bring up underprint.

      2. Enter "C" in the Clear Code field.

      The Name Control on INOLES is different from the Name on the return or attachment. Research NAMEE/NAMEB for a new EIN.

    6. If a new EIN is located, verify the Name Control using CC INOLES.

      IF: THEN:
      The Name Control on INOLES agrees with the Name on the return or attachment. Ensure that the entity information matches the return.
      Overlay Field 01EIN with the new EIN from NAMEE/NAMEB. When the EIN is changed from the one the taxpayer used, issue Form 3875C as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875C if 3 or less digits of the EIN is transposed, different or missing.
      Multiple EINs are located. SSPND 320 to Entity Control.
      Prepare Form 10886, Reject Routing Slip, with the notation "MULTIPLE EINS" .
      INOLES indicates a "Merge To" (MT) EIN. Research the "MT" EIN on INOLES.
      The "MT" EIN matches the entity on the return or attachments. Enter the "MT" EIN in Field 01EIN.
      The "MT" EIN does not match the entity on the return or attachments. SSPND 320 to Entity Control.

    7. If the Name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change, research ENMOD for a new name.

      IF: THEN:
      The Name Control on ENMOD agrees with the Name Control on the return or attachment Enter a "C" in the Clear Cope field.
      The Name Control on ENMOD or INOLES does not agree with the Name Control on the return or attachments. SSPND 320 to route the return to Entity.
      Attach Form 10886 with the notation "NO RECORD" .

    8. If the Name change has not been made, research ENMOD for a pending TC 013.

      IF: THEN:
      A pending TC 013 is present. Enter "C" in the Clear Code field.
      A pending TC 013 is not present. SSPND 320 to route to Entity.
      Attach Form 10886 with the notation "REQUEST NAME CHANGE (TC 013)" .

  4. Suspense Correction:

    1. If there is an indication that Entity has assigned an EIN to the return, determine the Entity Assignment Date:

      IF: THEN:
      The Entity Assignment Date is past the Return Due Date and Received Date.

      1. Input CC GTSEC 01.

      2. Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date and Received Date. Continue processing.

    2. Research IDRS to determine if payments posted incorrectly:

      IF: THEN:
      The payment posted to the wrong EIN.

      1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.

      2. Notate on Form 3465"MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .

      3. Write"Form 3465 Prepared" on return, to the left of the Entity section.

      4. Enter CCC "X" in Field 01CCC.

      The payment posted correctly.

      1. Enter correct EIN in Field 01EIN and on the return.

      2. Enter "C" in the Clear Code field.

      Payment cannot be located. Enter "C" in the Clear Code field.

3.12.220.6.5  (01-01-2009)
♦Error Code 005 - Received Date♦

  1. Fields Displayed - Error Code 005 will display as follows:

    Field Designator on Form 720 Field Name Field Length
    CL Clear Code  
    01TXP Tax Period 6
    01RCD Received Date 8

  2. Invalid Condition: Error Code 005 will generate when the year-month of the processing date is later than the tax period plus 6 months and the received date is not present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding, and transcription errors.

    2. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    3. A Received Date must be in Field 01RCD if the return is not timely filed.

    4. Use the earliest received date in Field 01RCD if there are multiple received dates on the return. Exception: Do not use a received date in Field 01RCD that is prior to the end of the tax period.

  4. Determine the Received Date using the following priorities when one is needed but is not stamped on the return or a valid handwritten received date is not present:

    1. Earliest legible postmark (e.g. U.S. Post Office, Foreign Postmark, or Private Delivery Service).

    2. Revenue Officer's or other IRS official's signature date.

    3. Signature date, if within the current year (unless other information indicates signature date is invalid.

    4. DLN Julian Date minus 10 days.

    5. Current date minus 10 days.

    PRIVATE DELIVERY SERVICES
    Federal Express (FedEx):

    • FedEx Priority Overnight

    • FedEx Standard Overnight

    • FedEx 2 Day

    • FedEx International Priority

    • FedEx International Firts
    United Parcel Services (UPS):

    • UPS Next Day Air

    • UPS Next Day Air Saver

    • UPS 2nd Day Air

    • UPS 2nd Day Air A.M.

    • UPS Worldwide Express

    • UPS Worldwide Express Plus
    DHL Express (DHL):

    • DHL Same Day Service

    • DHL Next Day 10:30 am

    • DHL Next Day 12:00 pm

    • DHL Next Day 3:00 pm

    • DHL 2nd Day Service

    Note:

    See Notice 2004–83 for additional information on private delivery services.

3.12.220.6.6  (01-01-2009)
Error Code 006 - Remittance is Received And No Received Date

  1. Fields Displayed - Error Code 006 will display as follows:

    Field Designator on Form 720 Field Name Field Length
    RMIT Remittance Amount 16
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01RCD Received Date 8

  2. Invalid Condition: Remittance is received with return but received date in not present.

  3. Correction Procedures:

    1. Compare the displayed fields with the return. If incorrect, overlay with the correct information.

    2. If the received date is missing or illegible, determine the date in the order listed below.

    3. Write received date in "YYYYMMDD" format on the return.

  4. Determine the Received Date using the following priorities when one is needed but is not stamped on the return or a valid handwritten received date is not present:

    1. Earliest legible postmark (e.g. U.S. Post Office, Foreign Postmark, or Private Delivery Service).

    2. Revenue Officer's or other IRS official's signature date.

    3. Signature date, if within the current year (unless other information indicates signature date is invalid.

    4. DLN Julian Date minus 10 days.

    5. Current date minus 10 days.

3.12.220.6.7  (01-01-2009)
♦Error Code 007 - Received Date is Earlier Than Tax Year♦

  1. Fields Displayed - Error Code 007 will display as follows:

    Field Designator on Form 720 Field Name Field Length
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01RCD Received Date 8

  2. Invalid Condition- Error Code 007 will generate when the received date is earlier than the first day of the tax period/year.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding, and transcription errors.

    2. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    IF: AND: THEN:
    The Received Date is invalid and it appears that the incorrect year was used (i.e.20080115 instead of 20090115), and other information (Julian date, postmark date, and/or signature date) indicates the received date should be the current year.   Change the Received Date to the current year and enter in Field 01RCD.
    The return is an early filed "Final" return.   SSPND 480
    Prepare Form 10886 with the notation "EARLY FILED" .
    The return is not an early filed Final Return. The Tax Period ending is less than four months after the Received Date. SSPND 480
    Prepare Form 10886 with the notation "EARLY FILED" .
      The Tax Period ending is more than four months after the Received Date. Initiate correspondence for clarification of tax period.
    SSPND 211.

  4. Suspense Correction

    IF: THEN:
    The taxpayer replies that the return is a "Final" . SSPND 480 until the end of the tax period provided by the taxpayer, if still early, otherwise, continue processing.
    The taxpayer replies that the return is not a "Final" return. SSPND 480 until the end of the tax period provided by the taxpayer, if still early, otherwise, continue processing.
    The taxpayer fails to reply or the reply is not adequate. Enter 3 in Field 01CCC.
    SSPND 480 until the end of the tax period indicated on the return, if still early, otherwise, continue processing.

3.12.220.6.8  (01-01-2009)
♦Error Code 010 - Amended Return "G" Coded♦

  1. Fields Displayed: Error Code 010 will display as follows:

    Field Designator on Form 720 Field Name Field Length
    01PIC Penalty and Interest Code 1
    01NUM IRS Number 3
    01CCC Computer Condition Code 10
    01ARN Applied Refund Indicator 1
    01Q01 IRS Tire Tax Count 1 9
    01Q02 IRS Tire Tax Count 2 9
    01Q03 IRS Tire Tax Count 3 9
    01Q04 CRN Tire Credit Count 1 9
    01Q05 CRN Tire Credit Count 2 9
    01Q06 CRN Tire Credit Count 3 9
    01RCD Received Date 8
    01CAF Centralized Authorization File 1
    0103 Line 3 16
    >>>> Line 3 Underprint 16
    0104 Line 4 16
    >>>> Line 4 Underprint 16
    0108 Line 8 16
    01B/R Balance Due/Refund 16
    >>>> Balance Due/Refund Underprint 16
    01FD FTD Penalty 16
    S02 Section 02  
    S03 Section 03  
    S04 Section 04  
    S05 Section 05  
    S06 Section 06  
    S07 Section 07  

  2. Invalid Condition: Error Code 010 will generate when Computer Condition Code G is present and fields other than Fields 01NC, 01EIN, 01TXP, O1RCD, 01CCC and 01CRD are present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding, and transcription errors.

    2. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    3. Determine if CCC "G" was input correctly:

    IF: THEN:
    CCC"G" code was entered correctly. DLSEC to delete all sections except Section 01.
    Delete the invalid entries that are present in Section 01.
    Input CC GTSEC 01, if necessary.
    CCC "G" was entered incorrectly. Enter all necessary data in Sections 02 through 07.
    Ensure that Section 01 fields are correct.
    Delete the "G" in Field 01CCC.

    Note:

    When deleting the CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.


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