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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 13. Employment Tax Returns (Cont. 2)

3.12.13  Employment Tax Returns (Cont. 2)

3.12.13.24 
Section 02 (Form 941, 941-PR, 941-SS)

3.12.13.24.26 
Field 02FD–FTD Penalty- Taxpayer- 10 Positions

3.12.13.24.26.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return.

    IF THEN
    Transcribed incorrectly, Enter the correct amount from the return.

3.12.13.24.27  (01-01-2009)
Field 02FD>>–FTD Penalty- Computer- 10 Positions

  1. This is not a transcribed field, but is computer generated. This is a non-correctable field.

3.12.13.25  (01-01-2009)
Section 03 (Form 941, 941-PR, 941-SS)

  1. The following sections provide information concerning Forms 941, 941-PR and 941-SS, Section 03.

    Field
    Designator    		 Field
    Length    		 Title of Field Location on Return
    03A 14 Tax Liability— 1st month Forms 941, 941-PR, and 941-SS-Page 2, line 15 "Month 1" , "Month 2," , Month 3, and "Total"
    NOTE: Field 03D>> is a non-correctable field
    03B 14 Tax Liability— 2nd month
    03C 14 Tax Liability— 3rd month
    03D>> 15 Tax Liability Quarter Sum
    (Computer Generated)

3.12.13.25.1  (01-01-2009)
Fields 03A through 03C – Monthly Tax Liability -14 Positions

  1. These fields are located on page 2, Forms 941, 941-PR, and 941–SS. They are transcribed as a positive amount in dollars and cents.

  2. Invalid Condition—These fields are invalid if they are not all numeric.

3.12.13.25.1.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return.

    IF THEN
    Transcribed incorrectly, Enter the correct amount from the return.

3.12.13.25.2  (01-01-2009)
Field 03D>>–Tax Liability Quarter Sum- 15 Positions

  1. This field is computer generated. If the taxpayer's figures are correct for fields 3A through 3C, field 03D>> should match the taxpayer's figure shown as the "Total" on Form(s) 941, 941-PR, and 941-SS, line 14. This field is a check for potential math errors and is not correctable.

3.12.13.26  (01-01-2009)
Section 04 (Form 941, 941-PR, 941-SS)

  1. The following sections provide information concerning Form 941, 941-PR and 941-SS, Section 04.

    Field
    Designator    		 Field
    Length    		 Title of Field Location on Return
    04CON 35 In Care of Name Second name line in the Entity portion
    04FAD 35 Foreign Address The address, city, state, or ZIP Code fields in the Entity portion
    04ADD 35 Street Address Entity portion
    04CTY 22 City Entity portion
    04ST 2 State Entity portion
    04ZIP 12 ZIP code Entity portion

3.12.13.26.1  (01-01-2009)
♦Field 04CON-♦ "In Care of Name" – 35 Positions

  1. Field is located in the entity of the return.

  2. Valid characters are alpha, numeric, ampersand, dash, percent (%) or a slash.

    Note:

    The first character of the "In Care of Name" must be alpha or numeric.

  3. Invalid Conditions—This field will be invalid if:

    1. The first position is a "%" and the second position is not blank, or

    2. The first position is blank, or

    3. The first character of the "In Care of Name" is not alpha or numeric, or

    4. There are two consecutive blanks between significant characters.

3.12.13.26.1.1  (01-01-2009)
Correction Procedures

  1. Correct coding and transcription errors.

    IF THEN
    A "%" (percent) is in the first position, 1- Verify there is a blank in the second position.

    2- If not blank, enter a blank followed by the "In Care of Name" beginning with an alpha or numeric in field 04CON.
    A blank is in the first position, 1- Delete the 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 Name" is not an alpha or numeric, 1- Verify the "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, Delete any unnecessary blanks in field 04CON.

3.12.13.26.2  (01-01-2009)
Field 04FAD–Foreign Address– 35 Positions

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

    • This field will contain an entry when there is a foreign address present on the return. A foreign (international) address is any address not in one of the 50 states or the District of Columbia. All U.S. Possessions are considered foreign.

    • Field 04FAD should not be present on "G" coded returns.

  2. 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- A two-character alpha code must be entered in field 04ST if a U.S. possession name.

      U.S. Possession Abbreviation

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

  3. An Army Post Office (APO) or Fleet Post Office (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:

    If ZIP Code is… Then convert to…
    09000 to 09499 and 09600 to 09899 "APO AE 091XX" 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

  4. Ogden Submission Processing Center (OSPC) will process foreign/international addresses and U.S. Possessions general information returns.

  5. All returns with a foreign address must be shipped to OSPC.

    1. SSPND 650.

    2. Attach Form 4227 with the notation "FORWARD TO OSPC" .

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

  6. Invalid Conditions–Field 04FAD will generate as an error when any of the following conditions are present:

    • The first position is blank.

    • Any character that follows two consecutive blanks.

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

    Note: ISRP/SCRIPS 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.

3.12.13.26.2.1  (01-01-2009)
Correction Procedures:

  1. Correct all coding and transcription errors.

    IF THEN
    Field 04FAD is present,. 1– GTSEC 04

    2– Ensure field 04CTY contains a foreign country code and field 04ST contains a ". (period/space)"
    A foreign address is not present on the return,

    Note:

    Applies to Form 941. Continue to process Forms 941-PR and 941-SS with foreign or domestic addresses as foreign, international or U.S. Possession returns.

    		1. Verify the address on the return is not a foreign address.
    2. SSPND 610
    3. Renumber return with domestic DLN.

  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 4227 or follow local procedures.

    3– Notate on Form 4227, "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 expedite processing.

3.12.13.26.3  (01-01-2009)
Field 04ADD–Street Address- 35 Positions

  1. This field is located in the entity section of the return. This section will contain data, if the taxpayer has:

    • Corrected the address (e.g. by using a new address), or.

    • Checked the change of address box and entered a new address entry, (e.g., edited an address on a label).

  2. If both a mailing address and a location address are present and have been changed, Section 04 will not be present as these changes will have been input through IDRS.

  3. This section will not be present if field 01CCC contains CCC "G" .

  4. Invalid Conditions—This field will be invalid if:

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

    2. Any character follows two consecutive blanks, or

    3. If the first position is not an alpha or numeric character.

    4. There are more than 35 characters in the field.

      Note:

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

3.12.13.26.3.1  (01-01-2009)
Correction Procedures

  1. Correct coding and transcription errors.

    IF THEN
    The first position is blank, All positions must be blank.
    Field 04ADD is present Fields 04CTY, 04ST, and 04ZIP must be present.
    Street address is in error and a valid Major City Code is present, Correct by entering the entire name of the city in field 04CTY and the state Code in field 04ST.
    A good address cannot be located, Delete the address and revert back to INOLE.

3.12.13.26.4  (01-01-2009)
Field 04CTY – City- 22 Positions

  1. This field is located in the entity section of the return. Certain cities within each state are designated "Major Cities" , and assigned a special code of two alpha characters.

  2. ISRP or SCRIPS will enter the Major City code, as appropriate. This code represents the city within that state.

  3. It is transcribed on the Error Record with no intervening blanks or other characters in the City-State fields .

  4. Invalid Conditions—This field is invalid if:

    1. The first position is blank.

    2. Any character is present other than blank or alphabetic.

    3. Any character follows the first two adjoining blanks.

    4. The Major City Code does not match any of the valid codes in the Major City Code table.

    5. Foreign country code is not valid or field 04CTY contains "XX" .

3.12.13.26.4.1  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. Determine if a Major City Code is being used

    IF THEN
    A Major City Code is used Field 04CTY must be present.
    Field 04CTY contains an error, Check to see if the Major city code is correct.
    Field 04CTY is not valid and a Major City Code cannot be determined, Input the entire city name.
    A Major City Code is not used and field 04CTY is present, Field 04ST must be present.
    A foreign address is shown on the return, Enter appropriate foreign country code in field 04CTY (See Exhibit 3.12.13-25)
    Field 04CTY contains an incorrect country code or "XX" Enter appropriate foreign country code in field 04CTY (See Exhibit 3.12.13-25)

  3. If Form 8822 is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 to the return.

3.12.13.26.5  (01-01-2009)
Field 04ST– State- 2 Positions

  1. The field is located in the entity section of the return.

  2. Invalid Condition—This field is invalid if it is not one of the State or APO/FPO codes shown in Exhibit 3.12.13-22, or a U.S. Possession in Exhibit 3.12.13-23.

3.12.13.26.5.1  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. For a list of valid State Codes, see Exhibit 3.12.13-22.

    IF THEN
    Unable to perfect DLSEC 04.
    Form 8822 is attached to the return Compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 to the return.

3.12.13.26.6  (01-01-2009)
Field 04ZIP– ZIP Code- 12 Positions

  1. This field is located in the entity section of the return.

  2. Invalid Condition—This field is invalid if not all numeric or five numerics followed by four blanks.

3.12.13.26.6.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return.

    IF THEN
    Transcribed incorrectly, Enter the correct entry from the return or the attachments. Only the first five digits are required to be entered if nine digits are present.
    A valid ZIP Code is not available from the return or attachments, Research using INOLE or use Document 7475, State Abbreviations, Major City Codes and Address Abbreviations to determine the first 3 digits of a valid ZIP code for the Major City.
    There is no record using research, Use DLSEC 04.
    The Major City is not listed in Document 7475, or the first 3 digits cannot be determined, 1– Enter the first 3 digits of the State shown in the address. Refer to Exhibit 13.12.13-22, (See Exhibit 3.12.13-23 for U.S. Possessions ZIP Codes).

    2– Enter "01" for the fourth and fifth digits.

3.12.13.27  (01-01-2009)
Section 05 (Form 941, 941-PR, 941-SS)

  1. The following sections provide information concerning Form 941, 941-PR and 941-SS, Section 05.

    Field
    Designator    		 Field
    Length    		 Title of Field Location on Return
    05A01 14 Daily Tax Liab. Schedule B (or for Form 941-PR, Schedule B (PR))
    NOTE: Field 05A>> is a non-correctable field.
    05A02 14 Daily Tax Liab.
    05A03 14 Daily Tax Liab.
    05A04 14 Daily Tax Liab.
    05A05 14 Daily Tax Liab.
    05A06 14 Daily Tax Liab.
    05A07 14 Daily Tax Liab.
    05A08 14 Daily Tax Liab.
    05A09 14 Daily Tax Liab.
    05A10 14 Daily Tax Liab.
    05A11 14 Daily Tax Liab.
    05A12 14 Daily Tax Liab.
    05A13 14 Daily Tax Liab.
    05A14 14 Daily Tax Liab.
    05A15 14 Daily Tax Liab.
    05A16 14 Daily Tax Liab.
    05A17 14 Daily Tax Liab.
    05A18 14 Daily Tax Liab.
    05A19 14 Daily Tax Liab.
    05A20 14 Daily Tax Liab.
    05A21 14 Daily Tax Liab.
    05A22 14 Daily Tax Liab.
    05A23 14 Daily Tax Liab.
    05A24 14 Daily Tax Liab.
    05A25 14 Daily Tax Liab.
    05A26 14 Daily Tax Liab.
    05A27 14 Daily Tax Liab.
    05A28 14 Daily Tax Liab.
    05A29 14 Daily Tax Liab.
    05A30 14 Daily Tax Liab.
    05A31 14 Daily Tax Liab.
    05A>> 16 Total Tax Liability Month 1
    (Computer Generated)

3.12.13.27.1  (01-01-2009)
Fields 05A01 through 05A31–First Month Daily Tax Liability- 14 Positions

  1. These fields are located on the Schedule B (or for Form 941-PR, Schedule B (PR)) and are shown as dollars and cents.

  2. Invalid Condition—These fields are invalid:

    1. If they are not all numeric, or

    2. For tax periods 199303 and subsequent, or

    3. If the month is April and there is an entry in day 31.

3.12.13.27.1.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return. Also verify the tax period.

    IF THEN
    Transcribed incorrectly, Enter the correct amount or tax period from the return.
    There is an entry in day 31 for the month of April (tax periods 199303 and subsequent), 1– Move the entry into the last valid day of the month.

    2– If there is an entry in that field, add the two entries together and place in the last valid day.

3.12.13.27.2  (01-01-2009)
Field 05A>>–Total Monthly Liability- 16 Positions

  1. This field is located on Form 941, Schedule B (or for Form 941-PR, Schedule B (PR)) and is computer generated.

  2. If the taxpayer's figures are correct for fields 05A01 through 05A31, field 5A>> should match the taxpayer's figures for line A, "Total Tax Liability for First Month of Quarter" . This field is to check for potential math errors and is not correctable.

3.12.13.28  (01-01-2009)
Section 06 (Form 941, 941-PR, 941-SS)

  1. The following sections provide information concerning Form 941, 941-PR and 941-SS, Section 06.

    Field
    Designator    		 Field
    Length    		 Title of Field Location on Return
    06B01 14 Daily Tax Liab Form 941 Schedule B (or for Form 941-PR, Schedule B (PR))
    NOTE: Field 06B>> is a non-correctable field.
    06B02 14 Daily Tax Liab.
    06B03 14 Daily Tax Liab.
    06B04 14 Daily Tax Liab.
    06B05 14 Daily Tax Liab.
    06B06 14 Daily Tax Liab.
    06B07 14 Daily Tax Liab.
    06B08 14 Daily Tax Liab.
    06B09 14 Daily Tax Liab.
    06B10 14 Daily Tax Liab.
    06B11 14 Daily Tax Liab.
    06B12 14 Daily Tax Liab.
    06B13 14 Daily Tax Liab.
    06B14 14 Daily Tax Liab.
    06B15 14 Daily Tax Liab.
    06B16 14 Daily Tax Liab.
    06B17 14 Daily Tax Liab.
    06B18 14 Daily Tax Liab.
    06B19 14 Daily Tax Liab.
    06B20 14 Daily Tax Liab.
    06B21 14 Daily Tax Liab.
    06B22 14 Daily Tax Liab.
    06B23 14 Daily Tax Liab.
    06B24 14 Daily Tax Liab.
    06B25 14 Daily Tax Liab.
    06B26 14 Daily Tax Liab.
    06B27 14 Daily Tax Liab.
    06B28 14 Daily Tax Liab.
    06B29 14 Daily Tax Liab.
    06B30 14 Daily Tax Liab.
    06B31 14 Daily Tax Liab.
    06B>> 16 Total Tax Liability Month 2
    (Computer Generated)

3.12.13.28.1  (01-01-2009)
Fields 06B01 through 06B31–Second Month Daily Tax Liability- 14 Positions

  1. These fields are located on the Form 941, Schedule B (or for Form 941-PR, Schedule B (PR)) and are shown as dollars and cents.

  2. Invalid Condition—These fields are invalid:

    1. If they are not all numeric, or

    2. If there is an entry in day 29 or 30 for February, or an entry in day 31 for April, June, September or November.

3.12.13.28.1.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return. Also verify the tax period.

    IF THEN
    Transcribed incorrectly, Enter the correct amount or tax period from the return.
    There is an entry in day 29, 30 or 31 for the month of February (for a tax period 199303 or subsequent), or day 31 for the month of November (for a tax period 199303 or subsequent), 1– Move the entry into the last valid day of the month.

    2– There is an entry in that field, add the last two entries together and place the results in the last valid day.

3.12.13.28.2  (01-01-2009)
Field 06B>>–Total Monthly Liability- 16 positions

  1. This field is located on the Form 941, Schedule B (or for Form 941-PR, Schedule B (PR)). This field is computer generated.

  2. If the taxpayer's figures are correct for fields 06B01 through 06B31, field 06B>> should match the taxpayer's figures for line B, "Total Tax Liability for Second Month of Quarter" . This field is to check for potential math errors and is not correctable.

3.12.13.29  (01-01-2009)
Section 07 Fields (Form 941, 941-PR, 941-SS)

  1. The following sections provide information concerning Form 941, 941-PR and 941-SS, Section 07.

    Field
    Designator    		 Field
    Length    		 Title of Field Location on Return
    07C01 14 Daily Tax Liab. Form 941, Schedule B (or for Form 941-PR, Schedule B (PR))
    NOTE: Fields 07C>> and 07D>> are non-correctable fields.
    07C02 14 Daily Tax Liab.
    07C03 14 Daily Tax Liab.
    07C04 14 Daily Tax Liab.
    07C05 14 Daily Tax Liab.
    07C06 14 Daily Tax Liab.
    07C07 14 Daily Tax Liab.
    07C08 14 Daily Tax Liab.
    07C09 14 Daily Tax Liab.
    07C10 14 Daily Tax Liab.
    07C11 14 Daily Tax Liab.
    07C12 14 Daily Tax Liab.
    07C13 14 Daily Tax Liab.
    07C14 14 Daily Tax Liab.
    07C15 14 Daily Tax Liab.
    07C16 14 Daily Tax Liab.
    07C17 14 Daily Tax Liab.
    07C18 14 Daily Tax Liab.
    07C19 14 Daily Tax Liab.
    07C20 14 Daily Tax Liab.
    07C21 14 Daily Tax Liab.
    07C22 14 Daily Tax Liab.
    07C23 14 Daily Tax Liab.
    07C24 14 Daily Tax Liab.
    07C25 14 Daily Tax Liab.
    07C26 14 Daily Tax Liab.
    07C27 14 Daily Tax Liab.
    07C28 14 Daily Tax Liab.
    07C29 14 Daily Tax Liab.
    07C30 14 Daily Tax Liab.
    07C31 14 Daily Tax Liab.
    07C>> 16 Total Tax Liability Month 3
    (Computer Generated)
    07D>> 16 Total Tax Liability Sum.
    (Computer Generated)

3.12.13.29.1  (01-01-2009)
Fields 07C01 through 07C31–Third Month Daily Tax Liability-14 Positions

  1. These fields are located on the Form 941, Schedule B (or on Form 941-PR, Schedule B (PR)) and are shown as dollars and cents

  2. Invalid Condition—These fields are invalid:

    1. If they are not all numeric, or

    2. If the month is June or September, and there is an entry in day 31.

3.12.13.29.1.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return. Also verify the tax period.

    IF THEN
    Transcribed incorrectly, Enter the correct amount or tax period from the return.
    There is an entry in day 31 for the month of June or September (for tax periods 199303 and subsequent), 1– Move the entry into the last valid day of the month.

    2– If there is an entry in that field, add the two entries together and place the results in the last valid day.

3.12.13.29.2  (01-01-2009)
Field 07C>>–Total Monthly Liability-16 Positions

  1. This field is located on the Form 941, Schedule B (or on Form 941-PR, Schedule B (PR)) and is computer generated.

  2. If the taxpayer's figures are correct for fields 07C01 through 07C31, field 07C>> should match the taxpayer's figures for line C, "Total Tax Liability for Third Month of Quarter" . This field is to check for potential math errors and is not correctable.

3.12.13.29.3  (01-01-2009)
Field 07D>>–Total Quarterly Liability-16 Positions

  1. This field is located on the Form 941, Schedule B (or on Form 941-PR, Schedule B (PR)) and is computer generated.

  2. If the taxpayer's figures are correct for fields 05A01 through 07C31, field 07D>> should match the taxpayer's figures for line D, "Total for Quarter" . This field is to check for potential math errors and is not correctable.

3.12.13.30  (01-01-2009)
Form 941 Consistency/Math Error Processing (Priority IV)

  1. This section provides procedures for correcting consistency and math errors (Priority IV) for Form 941.

  2. For an explanation of these errors, see IRM 3.12.13.5.4.

3.12.13.30.1  (01-01-2009)
♦Error Code 001♦

  1. Fields Displayed—

    1. 01TXP—Tax Period

    2. 01RCD—Received Date

    3. 01CCC—Computer Condition Code

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

    1. Computer Condition Code "G" is not present, and the processing date is equal to or more than 2 years and 10 months after the Return Due Date or Received Date (whichever is later) and CCC "W" is not present.

    2. Computer Condition Code G is present, and the processing date is equal to or more than 2 years and 10 months after the Return Due Date and CCC "W" is not present, or

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

3.12.13.30.1.1  (01-01-2009)
Correction Procedures

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

  2. Do not send the following returns to Statute Control for clearance. Instead, enter "W" in field 01CCC and continue processing:

    1. Any return secured by Compliance (i.e., 6020(b))

    2. Any return with a transaction code (TC) 59X,

    3. Any return that is a Substitute for Return prepared by Examination ("SFR" in the margin) with Document 13133 (Expedite Processing Cycle) attached.

  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, 1– Determine the Received Date using the following priority when one is needed but is not stamped on the return or a valid handwritten Received Date is not present.

    1. Earliest legible U.S. Post Office, Private Delivery Service, or foreign postmark

    2. For further information, see IRM 3.10.72, Extracting, Sorting and Numbering

      Note:

      If an envelope is not attached, use the postmark date stamped on the face of the return.

      Note:

      A private metered postmark is to be considered timely if received≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    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 less 10 days

    6. Current date less 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.

    Note: Do not send the return to Statute Control
    The return is not stamped by Statute Control within the last ninety days 1– SSPND 310.

    2– Prepare Form 4227 to route to Statute Control.

    Caution:

    Timely filed returns for all quarters of Form 941, 941-PR, or 941-SS have the same assessment expiration date. For example, timely filed Form 941 returns for 200903, 200906, 200909 and 200912 have a normal statute expiration date of April 15, 2013, e.g. three years from April 15th, 2010.

3.12.13.30.1.2  (01-01-2009)
Suspense Corrections-Rejects

  1. When Statute Control returns the cleared document, enter "W" in field 01CCC. Continue processing.

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

3.12.13.30.2  (01-01-2009)
♦Error Code 002♦

  1. Fields Displayed—

    1. CL— Clear Code

    2. 01NC—Name Control/Check Digit

    3. 01NC>>—Name Control–Computer (Computer Generated)

    4. 01EIN—Employer Identification Number

    5. 01TXP—Tax Period

    6. 04CON— In Care of Name

    7. 04FAD-Foreign Address

    8. 04ADD—Street Address

    9. 04CTY—City

    10. 04ST—State

    11. 04ZIP—ZIP Code

  2. Invalid Condition—The Name Control mismatched against the National Account Profile (NAP) or Entity Index File (EIF).

3.12.13.30.2.1  (01-01-2009)
Correction Procedures

  1. Before taking any additional research 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 National Account Profile (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 Online Entity (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 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, Bring up underprint.
    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 matches the Name on the return or attachment 1- Ensure that the entity information matches the return.
    2- 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 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" .

    :
    Multiple EINs are located, 1- SSPND 320 to Entity Control. 2- Prepare Form 4227
    INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES
    The "MT" EIN matches the entity on the return or attachment Enter the "MT" EIN in Field 01EIN.
    The "MT" EIN does not match the entity on the return or attachment, 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 on Form 941, research ENMOD for a new name.

    IF THEN
    The Name Control on ENMOD matches the Name on the return or attachment, Enter "C" in the Clear Code field.
    The Name Control on ENMOD or INOLES does not match the Name on the return or attachment, 1. SSPND 320 to route the return to Entity.
    2. Attach Form 4227 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, 1. SSPND 320 to route to Entity.
    2. Attach Form 4227 with the notation "REQUEST NAME CHANGE (TC 013)" .

3.12.13.30.2.2  (01-01-2009)
Suspense Corrections-Rejects

  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. GTSEC 01.
    2. Enter the Entity Assignment Date in field 01CRD.
    The Entity Assignment Date is not past the Return Due Date Continue Processing

3.12.13.30.3  (01-01-2009)
♦Error Code 003♦

  1. Fields Displayed

    1. 01NC—Name Control/Check Digits

    2. 01EIN—Employer Identification Number

  2. Invalid Condition—Error Code 003 will generate when the check digits are present but are not valid for the EIN.

3.12.13.30.3.1  (01-01-2009)
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.
    The 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 Form 941 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 attachment, 1. Overlay Field 01EIN with the EIN from INOLES.
    2. 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"

    Unable to locate an EIN or more than one EIN is located 1. SSPND 320 to Entity.
    2. Prepare Form 4227 with the notation "NO RECORD OF EIN" .

3.12.13.30.4  (01-01-2009)
♦Error Code 004♦

  1. Fields Displayed—

    1. CL— Clear Code

    2. 01NC—Name Control/Check Digits

    3. 01NC>>—Name Control-Computer (Computer Generated)

    4. 01EIN—Employer Identification Number

  2. Invalid Conditions—

    1. The EIN was not present at the Master File (NAP).

    2. The Entity Index File (EIF) and the NAP were not accessed or were not operational, causing a blank underprint in field 01NC.

3.12.13.30.4.1  (01-01-2009)
Correction Procedures

  1. Before taking any additional research 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 transcription errors.

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

  5. If field 01NC and the Name 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 Bring up the underprint.
    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, Overlay field 01EIN 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 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"

    Multiple EINs are located, 1- SSPND 320 to Entity Control.
    2- Prepare Form 4227.
    INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES
    The "MT" EIN matches the entity on the return or attachment, Enter the "MT" EIN in field 01EIN.
    The "MT" EIN does not match the entity on the return or attachment 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 the name change on Form 941, research ENMOD for the new name.

    IF THEN
    The Name Control on ENMOD agrees with the Name on the return or attachment, Enter a "C" in the Clear Code field.
    The Name Control on ENMOD or INOLES does not agree with the Name on the return or attachment, 1- SSPND 320 to route to Entity Control.
    2- Attach Form 4227 with the notation "REQUEST NAME CHANGE."

3.12.13.30.4.2  (01-01-2009)
Suspense Correction-Rejects

  1. If there is an indication that Entity Control 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- 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.

3.12.13.30.5  (01-01-2009)
♦Error Code 005♦

  1. Fields Displayed—

    1. CL— Clear Code

    2. 01TXP—Tax Period

    3. 01RCD—Received Date

  2. Invalid Condition—The year-month of the processing date is later than the tax period plus 6 months and the received date is not present.

3.12.13.30.5.1  (01-01-2009)
Correction Procedures

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

  2. Compare the displayed fields with the return. 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.

    IF THEN
    One or more Received Dates are present, Enter the Received Date to field 01RCD. If there are multiple dates on the return, enter the earliest date.

    Exception:

    Do not use a Received Date in field 01RCD that is prior to the end of the tax period.
    No Received Date is present, e.g. no received date is stamped on the return, or when a valid hand written Received Date is not present. 1- Determine the Received Date using the following priority:

    1. Earliest legible U.S. Post Office, Private Delivery Service, or foreign postmark

    2. For further information, see IRM 3.10.72, Extracting, Sorting and Numbering

      Note:

      If an envelope is not attached, use the postmark date stamped on the face of the return.

      Note:

      A private metered postmark is to be considered timely if received≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    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 less 10 days

    6. Current date less 10 days



    2- Enter the correct received date to the applicable field.

3.12.13.30.6  (01-01-2009)
♦Error Code 006♦

  1. Fields Displayed

    1. RMIT>—Remittance Amount

    2. 01TXP—Tax Period

    3. 01RCD—Received Date

  2. Invalid Condition—Remittance is received with return, but received date is not present.

3.12.13.30.6.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return.

    IF THEN
    Transcribed incorrectly, Enter the correct entry from the return.
    The received date is missing or illegible,

    Note:

    When multiple returns are received in an envelope, the envelope is attached to the first return to establish a Received Date. Subsequent returns in the envelope should have the Received Date stamped or edited to the upper left corner of each return.

    		1- Determine the Received Date using the following priority when one is needed but is not stamped on the return or a valid handwritten Received Date is not present.

    1. Earliest legible U.S. Post Office, Private Delivery Service, or foreign postmark

    2. For further information, see IRM 3.10.72, Extracting, Sorting and Numbering

      Note:

      If an envelope is not attached, use the postmark date stamped on the face of the return.

      Note:

      A private metered postmark is to be considered timely if received≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    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 less 10 days

    6. Current date less 10 days



    2- Enter the correct received date In 01RCD.
    Multiple dates are on the return, Use the earliest date as the received date.

3.12.13.30.7  (01-01-2009)
Error Code 007

  1. Fields Displayed

    1. 01TXP—Tax Period

    2. 01RCD—Received Date

    3. 01CCC—Computer Condition Code (CCC)

  2. Invalid Condition—The received date is earlier than the first day of the tax period.

3.12.13.30.7.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return.

    IF THEN
    The Received Date is invalid and it appears that the incorrect year was used (i.e. 20080115 instead of 20090115), and other information (e.g. Julian date, postmark date, and/or signature date) indicates the Received Date should be a current year. Change the Received Date year to the current year in field 01RCD.
    The return is an early filed "Final" return Review the Tax Period on the return. If the day the examiner is resolving the error condition is at least the first day or later of the Tax Period quarter shown on the return, delete the Received Date. Continue to process.

    Example:

    Form 941 returns showing the December quarter can be processed beginning October 1. It is the first day of the October through December quarter.

    The return is not an early filed "Final" return, (e.g. transcription error in tax period or year of the received date, etc.) Delete the Received Date on the screen, and circle the Received Date on the return. Continue to process.
    There is no clear indication that the return is final, Treat as unprocessable and initiate correspondence for clarification of the tax period. Suspend in Action Code 211.

3.12.13.30.7.2  (01-01-2009)
Suspense Correction-Rejects

  1. For responses to correspondence, follow the IF/THEN table.

    IF THEN
    The taxpayer indicates the return is an early filed "Final" return, Review the Tax Period on the return. If the day the examiner is resolving the error condition is at least the first day or later of the Tax Period quarter shown on the return, delete the Received Date. Continue to process.

    Example:

    Form 941 returns showing the December quarter can be processed beginning October 1. It is the first day of the October through December quarter.

    The taxpayer indicates the return is not an early filed "Final" return, (e.g. transcription error in tax period or year of the received date, etc.) Delete the Received Date on the screen, and circle the Received Date on the return. Continue to process.
    The taxpayer fails to respond or the response is inadequate, Continue to process.

3.12.13.30.8  (01-01-2009)
♦Error Code 010♦

  1. Fields Displayed

    1. 01CCC—Computer Condition Code (CCC)

    2. 01PIC—Penalty and Interest Code

    3. 01SIC—Schedule Indicator Code

    4. 01CAF– CAF Code

    5. 01ARN—Applied Refund Indicator

    6. 0101– Number of Employees

    7. Section 02 Present

    8. Section 03 Not Present

    9. 03D>>–Quarterly Liability–Computer (Computer Generated)

    10. Section 04 Present

    11. Section 05 Not Present

    12. 05A>>–Monthly Liability–Computer (Computer Generated)

    13. Section 06 Not Present

    14. 06B>>—Monthly Liability–Computer (Computer Generated)

    15. Section 07 Not Present

    16. 07C>>–Monthly Liability–Computer (Computer Generated)

  2. Invalid Condition—CCC "G" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC, and 01CRD are present.

3.12.13.30.8.1  (01-01-2009)
Correction Procedures

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

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

  3. Determine if CCC "G" was input correctly by initiating BMFOL research to see if the initial return is posted. Do not assume that a return indicating "Copy" is an amended, revised superseding, or duplicate return.

    IF THEN
    CCC "G" was input correctly 1– DLSEC to delete all Sections, except Section 01.

    2– Delete the invalid entries (e.g. other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC, and 01CRD) that are present in Section 01. GTSEC 01, if necessary.
    CCC "G" was input incorrectly, 1– Enter all necessary data in Sections 01 through 07.

    2– Ensure that Section 01 fields are correct.

    3– Delete the "G" in field 01CCC.

    Note:

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

3.12.13.30.9  (01-01-2009)
Error Code 011

  1. Fields Displayed

    1. RMIT>—Remittance Amount

    2. 01RCD—Received Date

    3. 01CCC—Computer Condition Code (CCC)

    4. 01ARN—Applied Refund Indicator

    5. Section 02 Not Present

  2. Invalid Condition—An RPS amount or a remittance amount is present, and there is no data in Section 02 and a valid CCC "G" is not present.

3.12.13.30.9.1  (01-01-2009)
Correction Procedures

  1. Compare the screen display and the return.

    IF THEN
    The record is to be edited with a CCC "G" , 1– Section 02 is not necessary. Enter the CCC "G" in field 01CCC.

    2– Verify that the received date is present, and enter it in field 01RCD.
    Data is present on the return for the fields in Section 02 , Use CC GTSEC 02 and enter the appropriate data in those fields on the screen.
    There is no money amount in the RMIT> field, and an RPS/ISRP indicator is present, 1– Use CC GTSEC to view Section 2.

    2– Enter $.01 in field 0208, Total Tax-Taxpayer.

    3– Continue processing.
    No data is present and you are unable to determine from the return or attachments where to apply the remittance amount, 1– Suspend the record with SSPND 355. The Rejects unit will research using IDRS to secure the data and transfer the credit to the appropriate tax class or module.

    2– If not found, correspond with the taxpayer with an explanation following normal correspondence procedures. Suspend the record with Action Code 21X.

    3– Rejects Unit will transfer the credit(s) to the appropriate tax class or module per reply.
    You are unable to determine where to apply the excess remittance, Leave field 01ARN blank. The excess remittance will be applied to the next tax period.

3.12.13.30.10  (01-01-2009)
♦Error Code 014♦

  1. Fields Displayed

    1. 04CON- In Care of Name

    2. 04FAD- Foreign Address

    3. 04ADD—Street Address

    4. 04CTY—City

    5. 04ST—State

    6. 04ZIP—ZIP Code

  2. Invalid Conditions—This error will generate when any of the following conditions are present:

    1. If the Street Address is present, fields 04CTY and 04ST must be present, unless a Major City Code is present.

    2. If a Major City Code is used, field 04ADD must be present.

    3. Field 04CTY is not present.

    4. Field 04CTY is not in the Major City format and Field 04ST is not present.

    5. A City must be present. If the city is not the Major City format, field 04ST must be present. Field 04ADD can be blank. If the State Code is equal to AA, AE or AP and the corresponding ZIP Code is present, the City must be APO or FPO.

    6. A Major City Code is used and field 04ST is present.

3.12.13.30.10.1  (01-01-2009)
Correction Procedures

  1. Correct all misplaced entries, coding and transcription errors. If incorrect, overlay the screen with the correct information.

    Note:

    The data entered cannot exceed the maximum number of character spaces for each field. See IRM 3.12.13 for the field lengths for the applicable return and Section. Refer to Document 7475, State Abbreviations, Major City Codes and Address Abbreviations, and/or Exhibit 3.12.13-22 for suitable abbreviations.

    IF AND THEN
    The address displayed is incomplete, The return has a pre-printed label (with no changes), DLSEC04 to delete the incomplete address.
    The address displayed is incomplete, The return does NOT have a pre-printed label, or the pre-printed label shows an address change, Enter the missing fields in the address, or enter the corrected address.
    A Major City Code is present, No street address is available, Enter the city in field 04CTY (spelled out, not in Major City format) and state code in field 04ST.
    The Major City Code is correct The state is present, DLSEC to delete field 04ST.
    The ZIP Code or the address cannot be corrected from the information on the return,   Use DLSEC to delete Section 04.

3.12.13.30.11  (01-01-2009)
♦Error Code 015♦

  1. Fields Displayed

    1. 04FAD- Foreign Address

    2. 04ADD- Street Address

    3. 04CTY- City

    4. 04ST- State

    5. 04ZIP- ZIP Code

  2. Invalid Condition – Error Code 015 will generate when any of the following conditions are present:

    • State field has an entry other than ". (period/space) when a foreign address is present."

    • ZIP Code field has an entry when a foreign address is present.


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