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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 249. Error Resolution for Form 8752

3.12.249  Error Resolution for Form 8752

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3.12.249.1  (01-01-2009)
General

  1. This section contains information regarding the purpose, scope, concepts, and instructions for Error Resolution processing of Forms 8752, Required Payment or Refund Under Section 7519.

3.12.249.1.1  (01-01-2009)
Purpose

  1. This sub-section contains instructions for correcting validity check errors detected by the computer for Form 8752.

3.12.249.1.2  (01-01-2009)
Scope

  1. This Section provides procedures for correcting records that are printed on the error registers. In the case of a conflict of instructions between general and specific, follow the specific procedures.

3.12.249.1.3  (01-01-2009)
Section 3705(a), IRS Employee Contacts

  1. This sub-section provides guidelines and key points for IRS employees to follow when communicating with taxpayers and/or their representatives on tax-related matters.

3.12.249.1.3.1  (01-01-2009)
Background

  1. The Restructuring and Reform Act of 1998, Section 3705, provides identification requirements for all IRS employees working tax-related matters.

  2. IRS employees are required to give their name and unique identification number during taxpayer telephone, face, and written contact. In addition, a telephone number is required on all taxpayer correspondence.

  3. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax-related matters.

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3 (Operational Guidelines Overview). Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1 (Leaving Information on answering machines/voice mail). Fax procedures contained in IRM 11.3.1.10 (Facsimile Transmission of Tax Information )) must be reviewed prior to faxing confidential information to the taxpayer.

3.12.249.1.3.2  (01-01-2009)
Key Points

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

    1. Telephone Contact —Their title (e.g., Mr., Mrs., Ms., Miss) last name, and ID card number"(badge)."

    2. Face to Face —Their title (e.g., Mr., Mrs., Ms., Miss), last name and ID Card number "(badge)."

    3. Correspondence —All correspondence must include a telephone number where the taxpayer's question can be answered. In addition, manually generated and handwritten correspondence must include their title (e.g., Mr., Mrs., Ms., Miss), last name and IDRS, letter system, or ID Card number "(badge)."

    4. The IDRS number and numbers for some other letters systems are automatically generated. If it is not generated, or a handwritten note is prepared, the ID Card number "badge" must be used. Toll-Free employees may also provide their location for identification purposes. Faxes to taxpayers on tax related matters, are considered manually generated correspondence and must include the required information.

    5. Correspondence , whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

    6. When a taxpayer request to speak with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

    7. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case related information.

    8. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

    9. Secretaries, receptionists or other people who answer the telephone in functional offices need to identify themselves, but they should provide their ID Card (badge) number only if they are answering telephones which are routinely used to provide tax or account information.

    10. It is not necessary to repeat the ID Card (badge) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either telephone or in-person) their ID Card (badge) number on the first contact.

3.12.249.1.3.3  (01-01-2009)
Taxpayer Advocate Service (TAS)

  1. During a taxpayer contact, when —

    • The contact meets TAS criteria, IRM 13.1.7, or

    • The taxpayer asks to be referred to the Taxpayer Advocate Service (TAS), and

  2. You can't resolve the taxpayer's issue the same day, then refer the taxpayer to the Local Taxpayer Advocate (see IRM Part 13, Taxpayer Advocate Service), using Form 911 Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance), or Form e-911 athttp://core.publish.no.irs.gov/forms/public/pdf/16965f07.pdf. However, if you are able to resolve and close the TAS issue on the same day as the taxpayer contact, do not refer the inquiry to TAS. The definition of "same day" is within 24 hours. There will be times you can completely resolve the issue within 24 hours. There will also be times that although you cannot completely resolve the issue within 24 hours, if you have taken steps within 24 hours to resolve the taxpayer's issue, these cases also meet the definition of "same day." Do not refer these cases to TAS unless the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4 to the Same-Day Resolution subsection in IRM 13.1.7.4, Same Day Resolutions by Operations. Also see IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

3.12.249.1.4  (01-01-2009)
Concepts

  1. The tax examiners applying these instructions must be familiar with the editing procedures in IRM 3.11.249, Processing Form 8752, and the general procedures in IRM 3.12.38, Error Resolution Systems (General Instructions), SC Error Resolution. The telephone may be used to resolve questions pertaining to returns that are on the Error Register in lieu of rejecting those returns for subsequent correspondence action.

    Note:

    Any items that denote a protest should be referred immediately to the SC Criminal Investigation Branch.

  2. You are not expected to review or redo the work of the Code & Edit examiner. However, if an error or omission made by the examiner is noticed while working the error register, enter the correct information on the return and the error register. A complete review of the return is not required. If this section instructs you to do something without telling you how, refer to IRM 3.11.249.

  3. This manual is your main source of information. You may also need to research procedures in the following IRMs:

    • IRM 3.0.273, Administrative Reference Guide.

    • IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records

    • IRM 3.10.72, Extracting, Sorting and Numbering.

    • IRM 2.3 Terminal Responses.

    • IRM 2.4, Terminal Input.

3.12.249.1.5  (01-01-2009)
Correction of Invalid Correction Attempt

  1. An Error Reason Code "AA" is printed on the Loop Error Register when an invalid correction attempt is detected by the computer processes.

  2. Correct the Error Register as if no attempt has been made to correct it before.

3.12.249.1.6  (01-01-2009)
Pre-Computed Penalty

  1. Only a (10%) ten percent underpayment penalty (TC-240 (Miscellaneous)/TC-246 (8752 or 1065 Penalty) can be charged on a Form 8752 account. If a penalty is shown on the return, and the notation, "3465 Prepared," does not appear on the return, prepare a Form 3465, Adjustment Request, to request an assessment of the penalty.

  2. Indicate on the Form 3465 the portion of the remittance which is available for application to the penalty assessment if the return remittance includes an amount applicable to all or part of the penalty. Enter Condition Code "X" on the return and on the register to freeze the module from refunding or offsetting, note on the return, "3465 Prepared," and route the Form 3465 to the Adjustment function.

  3. For additional information, refer to IRM 20.1.10.26.3- (Assertion/Assessment), in IRM Section 20.1.10, Excise Tax Penalties and Miscellaneous Penalties.

3.12.249.1.7  (01-01-2009)
Statute Control Documents

  1. Any original return which has a due date or received date, whichever is later (disregarding extensions of time to file), as much as two years and nine months before the current processing date, constitutes a statute control document.

  2. An amended return which has a due date as much as two years and nine months before the current processing date constitutes a statute control document.

  3. All statute control documents must be cleared by the Statute Control Unit. See instructions under each document for correction procedures.

3.12.249.1.8  (01-01-2009)
Tax Codes

  1. The following is a chart of Tax Class, MFT and Document Code for Form 8752. (See Figure 3.12.249-1.)

    Figure 3.12.249-1

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Chart of Form 8752 Tax Class, MFT, and Document Code

3.12.249.1.9  (01-01-2009)
Action Codes (A/Cs)

  1. Every correction made on an error or reject register must have an Action Code (AC) inserted by the tax examiner. These number codes signify to the computer what action should be taken on the error record. Only one AC may be entered on the error record to correct any one section. If two are required, it must loop. No other AC can be used with ACs 0, 1, 2, 3, or 7. If incorrect data is present, it must be corrected with AC 4, 5, or 6 before AC 1 is used. Individual descriptions of the valid Action Codes for most error registers are provided in Paragraphs (2) through (10), below.

  2. Action Code 0---Used to indicate that the data on the Error Record is correct and the campus computer's computation should be disregarded. This code should never be used unless the correct tax and data are printed in the error register. Action Code "0" will accept a record as transcribed and send the record to MCC (Martinsburg Computing Center).

  3. Action Code 1---Used to issue math error notices. This code may not be used if an amount field has a transcription error or if a field validity error is present in any field of a section. No other AC may be used in the same correction attempt. All validity errors must be corrected before this action code will clear a record from the Error Register. Action Code "1" puts notice codes in Section 01 and clear errors and underprints.

  4. Action Code 2---Used by Rejects to delete a record from service center (campus) processing. Only Rejects will use Action Code "2" . Action Code 2 is entered to the left of Section 01.

    Note:

    This action code is NOT used in Form 8752 processing.

  5. Action Code 3---Used to indicate a record on the error register is unprocessable. Use of Action Code "3" will force the record to the reject register. It must never be used on a record already in reject status. When using Action Code 3, attach Form 4227 (Intra-SC Reject or Routing Slip) or equivalent, stating why the document is being rejected. Any of the following types of documents can be unprocessable.

    Note:

    Never use Action Code 3 on a Reject register. See description for Action Code 9, below.

    1. A return or other document with illegible or missing necessary data.

    2. A return or other document with required correspondence items with uncorrectable asterisks. All errors indicated by asterisks that can be corrected must be corrected before sending a return or document to Rejects for required correspondence.

    3. A return or other document that cannot be processed by the program under which it was blocked and which must be processed with a DLN for a different program.

    4. An amended or substitute return where the original document is not available.

  6. Action Code 4---Used to delete a section from a register. Each section is indicated on the register and will appear as the first two digits on the first line of print for each section. All sections cannot be deleted; therefore, a record with only one section cannot have an Action Code "4" correction.

  7. Action Code 5---Used to add a section to a record on the register. Enter the field designation follow by field data and field breaker for all significant fields. Use only when section number and AFDs (Alpha Field Designators) are not present on the error register.

  8. Action Code 6---Used to change a field or fields of a section within the record. The computer identifies each field of a section with an AFD and prints the AFD before the field on the register. To correct a field, the incorrect field data must be lined-out and the correct data entered above. Any number of fields may be changed during one correction cycle. When the name control (a fixed-length field) must be left partially blank, enter the number of spaces to the right in the correct data above the field. This number must be encircled.

  9. Action Code 7---Used to indicate that the data on the register is correct and that no action is necessary. All corrections requiring Action Codes 4, 5, and 6 must be done before Action Code 7 may be used. This AC may be used to clear a record which has been sent to the register for one-time review. If information for a particular section was not input, the section may be generated for review with an asterisk before the Section number. Use the AC 7 to clear this item if no error exists.

  10. Action Code 9---Used to re-reject a reject loop register for correspondence or other suspense action.

    1. This code is used to prevent a reject loop record from reprint each time the loop is run, if it is clear that the record is not ready for correction.

    2. Action Code 9 is valid for reject loop only. It is invalid for raw rejects or for error registers.

      Note:

      For Forms 8752 processing, this action code and Action Code 3 are used similarly, except Action Code 9 is used with Reject registers.

  11. Enter Action Codes 0, 1, 2, 3, and 7 on the Error Register to the left of Section 01, and enter Action Codes 4, 5, and 6 to the left of the appropriate section number.

3.12.249.1.10  (01-01-2009)
Integrated Submission and Remittance Processing (ISRP) Error

  1. This is an error that has been identified by the Integrated Submission and Remittance Processing (ISRP) edit run.

  2. The ISRP Error Indicator is printed to the left of the Section number. This error will appear on the error register as shown in the following table:

    ISRP ERROR
    INDICATOR    		 TYPE OF
    PROBLEM IDENTIFIED

    PROBLEM EXPLANATION
    "#1" Split screen transmission Key Verifier attempted to change Check Digit, changed 4 or more digits of TIN, or the OE operator entered a required section as "missing" .
         
    "#3" Invalid section ending point  
         
    "#4" Invalid field length  
         
    "#5" Questionable Section The ISRP operator input the same section more than once. The computer program will drop all duplicate sections and display the first one encountered on the error register.

  3. All fields of a section must be examined when this condition exists. If Section 01 of a return is error coded, also examine the tax base data section for errors to insure the return data is for the taxpayer whose name is in Section 01.

  4. Even though one or more sections of a record are error coded, the validity and consistency checks necessary for the record are made for all sections. Line out each incorrect field, and enter the correct data. Use Action Code 6. If the record is correct as it appears on the Error Register, enter Action Code 7.

3.12.249.1.11  (01-01-2009)
Terminus Error

  1. A terminus error results when there is a non-numeric character in a numeric field, or when the format of the section is incorrect.

  2. Two asterisks are printed to the left of the section number. Correct a terminus error as follows:

    1. Assure that any fields already containing data are correct. Correct or reject as applicable.

    2. Enter data in any blank fields that should contain data.

  3. If data is correct on Register, re-enter a field, using Action Code 6 to send the record to good tape.

3.12.249.1.12  (01-01-2009)
Field Validity Error

  1. An invalid field is identified by an asterisk (*) before the field. All fields will be printed on the Error Register. Some fields must contain data, and if they are blank, they are invalid. To correct:

    1. Compare the return with the Error Register;

    2. Line out the incorrect field, and enter the correct data immediately above the lined-out data; and

    3. Enter Action Code 6.

  2. There are some fields which are asterisked (on the raw only) for a cursory review. These may be cleared with Action Code 7 if there are no other errors present.

3.12.249.1.13  (01-01-2009)
Blank Returns, Not Required to File

  1. Taxpayers may send a blank return stating that they are not required to file or don't understand why they are receiving the Form 8752.

  2. Research to ensure that the filer is still on a fiscal year basis. If a fiscal year filer, Form 8752 must be filed unless:

    1. The entity or filer existed prior to August 1988 or the legislative issuance/modifications of Section 444 and 7519 (legislation was dated July 26, 1988).

    2. The filer is a fiscal filer with an acceptable (i.e., Service-approved) business year purpose to file on a fiscal year basis. This is based on the owner's filing year (first month of the owner's fiscal year 1040).

  3. If a fiscal year filer and 2(a) or (b) do not apply, initiate correspondence. Inform the taxpayer that a partnership or S corporation must file Form 8752 if it made a Section 444 election to file their tax return on a fiscal year basis instead of the required calendar year basis.

    If after correspondence, then
    the taxpayer replies and indicates that he is not required to file because he meets the conditions in either 2(a) or (b) above, (1) Prepare Form 4227, Intra SC-Reject or Routing Slip. Attach a photocopy of the taxpayer's response.
    (2) Route to Entity Control to correct the taxpayer's filing requirement.
    (3) Void the blank return.
    the taxpayer replies and indicates that he is not required to file and does not offer an explanation, (1) Void the blank return.
    (2) Prepare Form 4227, noting on it that the taxpayer provided no explanation why he/she is not required to file a Form 8752.
    (3) Attach a photocopy of the reply to the 4227 and route to the Entity Control Function.
    the taxpayer does not reply, (1) Void the blank return.
    (2) Prepare Form 4227, noting on it that the taxpayer did not reply to (Form 8752) correspondence.
    (3) Route to Entity Control.

  4. If the taxpayer is no longer a fiscal-year filer, do not process the Form 8752. Void the blank return.

3.12.249.2  (01-01-2009)
Processing Form 8752, Required Payment or Refund Under Section 7519

  1. This section provides background information, descriptions of three sections of the error register, the individuals fields and their designations, and procedures for correcting Forms 8752, Required Payment or Refund Under Section 7519.

3.12.249.2.1  (01-01-2009)
Error Register Fields and General Information

  1. The Error Register contains three sections (Section 01, Section 02, and Section 03 (Address Data)). The money fields (Field 01–A, and all fields in Section 02, except Field 02–C (Deferred Ratio)), will be entered as dollars and cents.

  2. Partnerships (Form 1065, U.S. Partnership Return of Income) and S corporations (Form 1120S, U.S. Income Tax Return for an S Corporation) use Form 8752 to figure and report the payment required under Section 7519 to obtain a refund of net prior-year payment(s). A partnership or S corporation must file Form 8752 if it made a Section 444 election by filing Form 8716, Election To Have A Tax Year Other Than a Required Tax Year, and its election is still in effect for the tax year. Any tax year that a Section 444 election is in effect, including the first tax year the Section 444 is made, is an "applicable election year." Prior to 1991, the Section 444 payment made by these taxpayers was reported on Form 720, Quarterly Federal Excise Tax Return, under Abstract 11.

  3. DUE DATE: For applicable election years beginning in 1990, Form 8752 must be filed and required payment made on or before May 15. (See also IRM 3.12.249.2.2.8 for additional information.)

  4. Form 8752—Fields on the Error Register are shown below with their alpha field designations, length, title and location on the return. Also, see Exhibits 3.12.249-1 and 3.12.249-2.

    Section 01

    Alpha
    Designators    		 Location
    on Return    		 Field
    Lengths

    Title
    A Green Written 11 Remittance (non-correctable)
    B Box Entitled Name of Partnership or S Corporation 4 Name Control/Check Digit
    C Box Entitled Identification Number 9 Employer Identification Number
    D Center of Return above Name Line or edited Tax Period to the left of the OMB 6 Tax Period
    E Upper left margin of Return 10 Condition Codes
    F Middle of return 8 Received Date
    G Right of OMB Number 1 Penalty and Interest Code
    H Right of Page 1, Form 8752, "Check Applicable Box to Show Type of Taxpayer" 1 Partnership/S Corporation Indicator
    I Right Lower Corner 1 CAF Indicator
    J Box B 1 First Tax Year Box
    K Box C 1 Terminating Event Box
    L Box D 1 Short Base Year Box
    M   1 Entity Underprint Code
    N Left Margin Name Area 6 Taxpayer Notice Codes

3.12.249.2.2  (01-01-2009)
Correction Instructions—Section 01 Fields

  1. This section provides field criteria, descriptions, and specifications for correcting Forms 8752, Required Payment or Refund Under Section 7519.

3.12.249.2.2.1  (01-01-2009)
Field 01–A—Remittance Field

  1. The field cannot be changed in Error Resolution. If the amount is incorrect, treat the return and related error register as unprocessible. Reject with Action Code 3, and prepare Form 4227, Intra-SC Reject or Routing Slip, to explain the error. The Reject function will prepare Form 3893, Re-entry Document Control, after corrective action has been taken.

  2. Received Date—If a remittance amount is present, the received date must be present. Also see IRM 3.12.249.2.2.7.

3.12.249.2.2.2  (01-01-2009)
Excess Remittance Returns

  1. The Reject unit will determine the proper application of an excess remittance through research, correspondence, or other existing procedures.

  2. When the Reject examiner determines that the remittance should be applied to a different tax class or module, Condition Code "X" is entered on the return and on the register. This code will freeze the tax module from refunding or offsetting by generating a TC 570.

  3. The examiner will prepare Form 3465, Adjustment Request, to indicate the amount and module in which the credit should be applied.

  4. See IRM Section 3.12.38, Error Resolution Systems (General Instructions), in IRM 3.12, Error Resolution, if additional information is required.

3.12.249.2.2.3  (01-01-2009)
Field 01–B—Name Control/Check Digit

  1. This field must have 1 to 4 characters. If there are fewer than 4 characters, every position must be accounted for by editing the number of blanks and encircling it. The name control and check digit each have their own tests for validity.

  2. A check digit will always be your first correction choice. It is invalid if:

    1. The 1st and 2nd positions are not blank.

    2. The 3rd and 4th positions are not letters.

    3. The letters E, G, or M are present.

  3. The check digit is derived by a mathematical computation performed by the computer on the EIN. It is present on mail labels provided by the IRS and is only used when that mail label is present. To correct, refer to the check digit on the label.

    1. Correct any transcription errors by lining through the entry in Field 01–B and editing an encircled "2" , followed by the two-letter check digit from the mail label.

    2. If the check digit is correct but is asterisked, check for transcription errors in the EIN. Correct the EIN in Field 01–C. The computer will recompute and validate the check digit.

  4. A name control will be entered if the check digit is not available. It is invalid if:

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

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

    3. Any character follows a blank.

  5. To correct, line through the entry in Field 01–B 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.

  6. To determine the correct name control, follow the guidelines in Document 7071, Name Control Job Aid.

  7. If the transcribed name control does not match the name control for the transcribed EIN on the Entity Index File (EIF), there will be an underprint to Field 01–B.

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

    1. The name control underprint and the entry in Field 01–B agree.

    2. The entity underprint field contains a "1" .

  9. When the name control on the return does not match the name control on the EIF, one of the following has occurred:

    1. The EIN was entered wrong, either by the taxpayer or the IRS.

    2. The name control was edited or transcribed incorrectly.

    3. The name control on the EIF is incorrect.

    4. The taxpayer altered the order of the name on the return in such a way that the name control no longer agrees with the way it appears on the Business Master File (BMF).

    5. The taxpayer’s name changed.

    6. The taxpayer’s identity has changed (e.g., the taxpayer has changed from a partnership to a corporation).

  10. To correct, compare the entries in Fields 01–B and 01–C to the name control and EIN on the return.

  11. If the EIN on the return and the EIN in Field 01–C do not agree, correct Field 01–C to agree with the return.

    1. If the correct name control is in Field 01–B, enter a "1" in the entity underprint code field (Field 01–M).

    2. If the name control in Field 01–B is not correct, according to the information on the return, change Field 01–B.

    3. If the correction does not agree with the name control underprint, enter a "1" in the entity underprint code field.

    4. If the return is an ISRP Remittance Processing return, reject with Action Code 3 and attach Form 4227, notating, "move ISRP Remittance Processing money." Rejects will research IDRS (BMFOL or MFTRA) to determine if the payment has posted incorrectly. (See IRM 3.12.38 for detailed instructions.) If the money is posted incorrectly, prepare a Form 3465, Adjustment Request, or follow local service center procedures to transfer the money to the correct module. Note "3465 prepared" on the return and enter CCC "X" on the return and in the computer condition code field (Field 01–E).

  12. If the EIN on the return agrees with the EIN in Field 01–C, determine why the name control underprint is present. If the name control edited on the return agrees with the name control in Field 01–B then:

    1. Compare the name control underprint with Field 01–B and the name on the return. If it is obvious that the underprint is the correct name control and it was edited wrong on the document, change Field 01–B to agree with the underprint.

    2. If it is not an obvious error, request research per local service center procedures. (See IRM 2.3, Terminal Response, and IRM 2.4, Terminal Input.) Research, using the IDRS Command Codes.

  13. Determine the correct EIN and name control from the research.

    1. If another EIN is found for the entity on the return, change Field 01–C to the correct EIN and follow the procedures in (10) above.

    2. If the EIN on the return is correct and the taxpayer just rearranged the name on the return, change Field 01–B to agree with the name control on the EIF.

    3. If 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 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" .

  14. If the EIN on the return is correct but the name control on the EIF is not conforming to the acceptable rules for name controlling:

    1. Correct Field 01–B to agree with the name control on the BMF.

    2. Copy page one of the return and notate "Copy, do not process." Attach any research, and Form 4227, Intra-SC Reject and Routing Slip, and forward the case to Entity Control. Entity Control will fix the name control, which should stop future unpostables and underprints.

    3. If the EIN on the return and in Field 01–C agree, but the name control does not agree with the name on the EIF, attach Form 4227 to forward the case, along with any research, to Entity Control for resolution.

3.12.249.2.2.4  (01-01-2009)
Field 01–C—Employer Identification Number (EIN)

  1. This field has nine positions.

  2. It is invalid if any of the following conditions occur:

    1. It is not nine numeric characters.

    2. It is all nines or all zeros.

    3. If the first two digits are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

  3. If the EIN is invalid, take the following action:

    1. Compare with the EIN on the return, and correct the Error Register with Action Code 6, if the number has been incorrectly transcribed.

    2. Search the return and any attachments for a valid EIN if transcribed correctly. If one is found, enter the number on the return, and correct the Error Register with Action Code 6. If no valid EIN is found, research per IDRS (CC EINAD/NAMEE) or follow local service center procedures.

    3. If it is transcribed correctly, and a valid EIN is not found during the search prescribed above, reject the record to Entity Control. Attach and notate on Form 4227, "Research for valid EIN" .

  4. Reject Correction:

    1. If Entity Control has found the correct EIN, enter it in Field 01–C.

    2. If Entity Control has assigned an EIN, enter it in Field 01–C.

3.12.249.2.2.5  (01-01-2009)
Field 01–D—Tax Period

  1. This field contains the ending month and year of the Tax Period covering the return. The Tax Period ending is printed, in year-month (YYYYMM) format (i.e., December 31, 2008, is printed 200812). The Tax Period must be for a calendar year only (e.g., 200712 and 200812).

  2. The field is invalid if:

    1. It is not numeric.

    2. The tax year ending is later than the current date.

    3. The year is before 199012.

    4. The month is not 12.

    5. It is in a format other than YYYYMM.

  3. Determine the Tax Period by the year (printed) on the face of the tax form (i.e., for the 2008 tax form, the tax period should be "200812" ). Taxpayers are advised to edit changes on the form to the tax year for prior tax periods.

  4. The Tax Period must be a calendar year (e.g., 200X12). Editing is required only if the "applicable election year ending" is other than blank or December 31, 200X. Circle the taxpayer’s entry and enter the correct Tax Period.

    1. If the tax period "has been changed to an earlier year and the" "ending period" is not December 31, circle the date and edit the Tax Period as a calendar-year period, using the procedures described above.

    2. If there are multiple returns from the same entity in a batch and you cannot determine the correct Tax Period, edit all of them to the current Tax Period (200X12). Adjustments will work the "dup" returns and correct the Tax Periods.

    3. Editing of the Tax Period is not required if the current year form is used (e.g., 2008 form), since Form 8752 is a calendar-year return.

      Exception:

      The taxpayer makes an indication on the form that the tax period is for a prior-year.

    4. If any version of Form 8752 other than the current-year form is submitted, edit the current year in the "200X12" format under the title of the form (unless the taxpayer has indicated the tax period is for a prior-year).

    Note:

    Make sure that the taxpayer used the correct tax rate for the appropriate year on Line 9a. The tax rate for Tax Years 2003 through 2010 is 36%. (The tax rate decreases for Tax Years 2001 and subsequent were a result of H.R. 1836 ("The Economic Growth and Tax Relief Reconciliation Act of 2001" , signed into law on June 7, 2001).) The tax rate for Tax Year 2002 was 39.6%; for Tax Year 2001, 40.1%. The tax rate for 1993 through to December 31, 2000, was 40.6%. The tax rate for 1990 was 29%; for 1991 and 1992, it was 32%.

    Note:

    For Tax Year 2011, the tax rate for this form changes back to the original rate of 40.6%.

  5. If a Form 8752 is received for a future tax period (i.e., if the tax period ending is after the current processing date), enter Action Code "3" and prepare a Form 4227 (Intra-SC Reject or Routing Slip) to request Rejects to research for postings.

    IF THEN
    Current year has posted Hold in suspense until January of year due.
    Current year has not posted Process as current year return.
    NOTE: If payments posted to the wrong tax period, following instructions in Section 3.12.38, Error Resolution Systems , in IRM 3.12, Error Resolution.  

3.12.249.2.2.6  (01-01-2009)
Field 01–E—Computer Condition Codes (CCCs)

  1. Computer Condition Codes (CCCs) are used to identify a special condition or computation to post to the Master File and are entered in the upper left margin of the Form 8752. Computer Condition Codes (CCCs) D, F, G, O, R, U (on ISRP (submission processing) input only), W, X, and 7 are valid for Form 8752 processing.

  2. The field is invalid if CCCs other than those listed above are used. Refer to IRM 3.12.249.2.2.6.1 through 3.12.249.2.2.6.9 below for individual text descriptions of the CCCs.

  3. See IRM 3.12.249.2.2.6.10 below for Field 01–E correction procedures.

    Note:

    Recently passed legislation (2001) extended reasonable cause criteria to Form 8752 filers. Refer to 3.12.38-10 for reasonable cause criteria.

3.12.249.2.2.6.1  (01-01-2009)
CCC "D" —Reasonable cause for Failure to Pay Taxes Timely

  1. IMPORTANT: CCC "D" will no longer be edited by Code and Edit examiners. If the taxpayer requests an abatement for Failing to Pay Timely when the return is submitted, Code and Edit will send Letter 1382C (Penalty Removal Request Incomplete) to inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. The language used will read as follows: "We received your request for penalty relief; however, we cannot consider your request because we have not completed processing your tax return. Penalties, if applicable, are not charged until a tax return has completed processing, which can take up to 8 to 10 weeks. If you receive a notice showing a penalty change after the return was processed, please resubmit your request for penalty relief with a copy of the notice."

  2. In the cases of a disaster, Code and Edit examiners will be provided with the coding procedures to follow.

  3. Enter "D" if the taxpayer attached a statement establishing a reasonable cause for his failure to make payments. (See also IRM 3.12.249.2.2.6.9, below.) Refer to 3.12.38-10 for reasonable cause criteria.

3.12.249.2.2.6.2  (01-01-2009)
CCC "F" —Final Return

  1. Enter "F" code on the return when return there is an attachment indicating this is the final return from the issuer.

3.12.249.2.2.6.3  (01-01-2009)
CCC "G" —Amended Return

  1. Enter "G" code on return marked "Amended" , "Superseding" , "Tentative" , "Corrected" , "Supplemental" , etc.

3.12.249.2.2.6.4  (01-01-2009)
CCC "O" —Module Freeze

  1. Enter CCC "O" if a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund, is attached to the return. These indicate that a presettlement manual refund was made.

3.12.249.2.2.6.5  (01-01-2009)
CCC "R" —Reasonable Cause For Delinquency

  1. IMPORTANT: Code and Edit will no longer determine reasonable cause. If the taxpayer requests an abatement for Reasonable Cause for Failing to Timely File Return when the return is submitted, Code and Edit will send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. The language used will read as follows: "We received your request for penalty relief; however, we cannot consider your request because we have not completed processing your tax return. Penalties, if applicable, are not charged until a tax return has completed processing, which can take up to 8 to 10 weeks. If you receive a notice showing a penalty change after the return was processed, please resubmit your request for penalty relief with a copy of the notice."

  2. In the cases of a disaster, Code and Edit examiners will be provided with the coding procedures to follow.

  3. Enter "R" code on a delinquent return when issuer attached a statement establishing reasonable cause for delinquency. (See also IRM 3.12.249.2.2.6.9, below.)

3.12.249.2.2.6.6  (01-01-2009)
CCC "U" —Unprocessible Document

  1. Enter "U" on all conditions which cause the documents to be unprocessible. Unprocessable (Form 8752) conditions are described as follows:

    1. Name illegible, incomplete, or contradictory and is not acceptable for computer processing.

    2. Information is not available on the document or attachments that is necessary for processing the document.

    3. EIN is other than nine numeric digits.

    4. Issuer indicates on documents or attachment that the document represents more than one tax period.

    5. Blank returns where the filer states "not required to file" , or he/she does not know why they received the Form 8752 (or a similar statement).

3.12.249.2.2.6.7  (01-01-2009)
CCC "W" —Cleared by Statute

  1. Enter CCC "W" code when the return was stamped "Cleared by Statute" . Enter CCC "W" in Field 01–E with Action Code 6.


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