Part 3. Submission Processing
Chapter 12. Error Resolution
Section 263. Estate and Gift Tax Returns
3.12.263 Estate and Gift Tax Returns
Manual Transmittal
October 21, 2024
Purpose
(1) This transmits revised IRM 3.12.263, Error Resolution, Estate and Gift Tax Returns.
Material Changes
(1) IRM 3.12.263.1(3) - Added Form 709-NA as this line refers to both Form 709 and Form 709-NA.
(2) IRM 3.12.263.1(7) - Updated from Paper Processing Branch to Return Processing Branch. (IPU 24U0105 issued 01-22-2024).
(3) IRM 3.12.263.1.6(1) - Changed W&I to Taxpayer Services.
(4) IRM 3.12.263.2(11), -(14) - Added instructions for when Part 2 lines 1 plus line 2 are greater than $10 Million and when part 2 line 4 is 0 and a Form 709 is attached, and added note that only 706/W6166 need to be held until 4349 is received back. (IPU 24U0066 issued 01-09-2024.)
(5) IRM 3.12.263.2(3)d, (7) and (13) - Added 709-NA to general instructions. Updated instructions to hold current year returns until programming is completed. Added name of IRM for Campus Mail and Work Control.
(6) IRM 3.12.263.2.1 - Removed Error Resolution, it shouldn’t be part of the name.
(7) IRM 3.12.263.2.2(2) - Updated from Paper Processing Branch to Return Processing Branch. (IPU 24U0105 issued 01-22-2024).
(8) IRM 3.12.263.2.3(1) - Updated guidance for digital signature. (IPU 23U1096 issued 11-17-2023).
(9) IRM 3.12.263.2.3(1) - Added Form 709-NA and when to detach the Form 709-NA to chart.
(10) IRM 3.12.263.2.6(3) - Added Form 706-NA Form 709-NA to the list of Returns to instructions.
(11) IRM 3.12.263.2.10(1) - Revised funny box as questionable tax returns.
(12) IRM 3.12.263.2.11(1) - Updated wording per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(13) IRM 3.12.263.2.12(4), (5) - Updated wording per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(14) IRM 3.12.263.2.13(2) - Changed W&I to Taxpayer Services. Updated current language for Tax Payer Services (TAS).
(15) IRM 3.12.263.2.14(1) - Changed W&I to Taxpayer Services. Updated language for titles from TAS suggestions.
(16) IRM 3.12.263.2.15(1) - Updated to ID per consistency IRM. (IPU 24U0025 issued 01-03-2024)
(17) IRM 3.12.263.2.18(1) - Changed reference for IRM Deviation to 1.11.2.2.3.
(18) IRM 3.12.263.3.1.1(1) - Added 2024 Basic Exclusion amounts and Applicable Credit amount to table. (IPU 24U0025 issued 01-03-2024)
(19) IRM 3.12.263.3.1.1(1) - Revised that the table starts at 2001 since I deleted years prior to that.
(20) IRM 3.12.263.3.1.6(2) - Added 2024 Annual Exclusion to table and the 2024 Foreign Spouse exclusion amount. (IPU 24U0025 issued 01-03-2024)
(21) IRM 3.12.263.3.2.3(1), (2)b and d, (3)c and d, (4)b and c, (8)a - Changed W&I to Taxpayer Services.
(22) IRM 3.12.263.3.12(3) - Added instructions for Taxpayer Notice Codes. (IPU 24U0462 issued 3-29-2024).
(23) IRM 3.12.263.3.12.1 - Added instructions for the TPNC 90. Added link for Job aids for 2 Digit TPNC and 3 Digit TPNC. (IPU 24U0462 issued 3-29-2024).
(24) IRM 3.12.263.3.12.3(1) - Added TPNC 40 to the table. (IPU 24U0066 issued 01-09-2024)
(25) IRM 3.12.263.3.12.3(1) - Removed TPNC 40 from table, no longer needed, will be using TPNC 54. (IPU 24U0025 issued 01-03-2024)
(26) IRM 3.12.263.3.12.3(1) - Added an Exception for Taxpayer Notice Code (TPNC) 41 and corrected TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(27) IRM 3.12.263.3.12.3(1) - Updated TPNC language. Added links for TPNC Job Aids.
(28) IRM 3.12.263.3.12.4(1) - Added TPNC 40 to the table. (IPU 24U0066 issued 01-09-2024)
(29) IRM 3.12.263.3.12.4(1) - Removed TPNC 40 from table, no longer needed, will be using TPNC 54. (IPU 24U0025 issued 01-03-2024)
(30) IRM 3.12.263.3.12.4(1) - Updated TPNC language. Added links to the TPNC Job Aids.
(31) IRM 3.12.263.3.12.5(1) - Added an Exception for Taxpayer Notice Code (TPNC) 41 and corrected TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(32) IRM 3.12.263.3.12.5(1) - Updated language for TPNCs. Deleted TPNC 41. Added TPNCs that were 90 notices last year and now available to enter on IDRS. Added links for TPNC Job Aids.
(33) IRM 3.12.263.3.12.6 - Added Chart with valid TPNCs for Form 709-NA.
(34) IRM 3.12.263.4.4.2(1) - Deleted instructions for a EIN per Chief Counsel review as prior instructions says to sned to Entity for SSN
(35) IRM 3.12.263.5.11(2) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(36) IRM 3.12.263.5.14.2(2) - Added 2024 Basic Exclusion amount to table. (IPU 24U0025 issued 01-03-2024)
(37) IRM 3.12.263.5.15(2) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(38) IRM 3.12.263.5.19(1) - Added 2024 Basic Exclusion amounts and Applicable Credit amount to table. (IPU 24U0025 issued 01-03-2024)
(39) IRM 3.12.263.5.26(3) - Deleted last sentence. not necessary.
(40) IRM 3.12.263.5.27(3) - Deleted last sentence. not necessary.
(41) IRM 3.12.263.5.28(3) - Deleted last sentence. not necessary.
(42) IRM 3.12.263.5.29(3) - Deleted last sentence. not necessary.
(43) IRM 3.12.263.6.2(3) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(44) IRM 3.12.263.13.1.2(2) - Updated wording per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(45) IRM 3.12.263.13.1.2(3) 4th then(2) - Change year from 2019 to 2020 for Statute returns from memo agreement between SP and AM. (IPU 24U0192 issued 02-02-2024).
(46) IRM 3.12.263.13.4.1(1)a - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(47) IRM 3.12.263.13.17.2(2) and (3) - Added instructions for TPNC 90. Added links for TPNC Job Aids.
(48) IRM 3.12.263.13.17.3(2) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(49) IRM 3.12.263.13.17.6(1)b - Updated language for TPNCs. Added TPNC 90 instructions. Added links for TPNC Job Aids. Added instructions for when to ripple a TPNC.
(50) IRM 3.12.263.13.18.3(1)b - Updated language for TPNCs. Added links for TPNC Job Aids. Added instructions for when to ripple a TPNC.
(51) IRM 3.12.263.13.19.2(4)a - Added instruction for when line 4 is negative. Added links for TPNC Job Aids. Added instructions for when to ripple a TPNC.
(52) IRM 3.12.263.13.19.3(2)a - Added links for TPNC Job Aids.
(53) IRM 3.12.263.13.20.2(2) and (4)c - Added Links for TPNC Job Aids. Added note with instructions on when to ripple a TPNC.
(54) IRM 3.12.263.13.20.2.1(2)c - Added TPNC 90. Added Links for TPNC Job Aids. Added note with instruction for when to ripple a TPNC.
(55) IRM 3.12.263.13.21.3(2)c - Updated TPNC language. Added TPNC 90. Added Links for TPNC Job Aids. Added a note with instruction for when to ripple a TPNC.
(56) IRM 3.12.263.13.22.3(2)c - Changed error Code to TPNC. Added TPNC 90. Added links for TPNC Job Aids. Added a note with instructions for when to ripple a TPNC.
(57) IRM 3.12.263.13.23.3(2)c - Updated TPNC language. Added TPNC 90. Added links for TPNC Job Aids. Added note for when to ripple a TPNC.
(58) IRM 3.12.263.13.24.3(2)d - Updated language for TPNCs. Added links for TPNC Job Aids. Added note for when to ripple a TPNC.
(59) IRM 3.12.263.13.25.2(3) - Added 2024 Applicable Credit amount to table. (IPU 24U0025 issued 01-03-2024)
(60) IRM 3.12.263.13.25.3(1) - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(61) IRM 3.12.263.13.25.3(2) b. - Corrected TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(62) IRM 3.12.263.13.25.3(2)f - Updated language for TPNCs. Added links for TPNC Job Aids. Added note for when to ripple a TPNC.
(63) IRM 3.12.263.13.25.3(2)f. - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(64) IRM 3.12.263.13.26.2(2), (3) - Updated wording per Consistency IRM. Added 2024 Applicable Credit amount to table. (IPU 24U0025 issued 01-03-2024)
(65) IRM 3.12.263.13.26.3(1) - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(66) IRM 3.12.263.13.26.3(2) b. - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(67) IRM 3.12.263.13.26.3(2)e - Removed the exception for TPNC 41. Updated language for TPNCs. Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(68) IRM 3.12.263.13.26.3(2)f - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(69) IRM 3.12.263.13.27.2(3) - Updated per Consistency IRM. Added 2024 Basic Exclusion amounts and Applicable Credit amount to table. (IPU 24U0025 issued 01-03-2024)
(70) IRM 3.12.263.13.27.3(1) - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(71) IRM 3.12.263.13.27.3(2)b. - Corrected TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(72) IRM 3.12.263.13.27.3(2)f - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(73) IRM 3.12.263.13.27.3 - Updated TPNC language throughout. Added TPNC 90 and the links for TPNC 90 Job Aids. Added note with instructions for when to ripple a TPNC.
(74) IRM 3.12.263.13.28.3(1) - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(75) IRM 3.12.263.13.28.3(2)b - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(76) IRM 3.12.263.13.28.3(2)f - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(77) IRM 3.12.263.13.28.3 - Updated TPNCs language, Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(78) IRM 3.12.263.13.29.2(2) - Added TPNC 43.
(79) IRM 3.12.263.13.29.3(1) - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(80) IRM 3.12.263.13.29.3(2)b - Corrected TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(81) IRM 3.12.263.13.29.3(2)f - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(82) IRM 3.12.263.13.29.3(2)f and (2)g - Deleted exception for error code 43. Updated language for TPNCs. Added links to TPNC Job Aids. Added note for when to ripple a TPNC.
(83) IRM 3.12.263.13.30.2(4) - Added 2024 Applicable Credit amount to table. (IPU 24U0025 issued 01-03-2024)
(84) IRM 3.12.263.13.30.3(1) - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(85) IRM 3.12.263.13.30.3(2) b. - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(86) IRM 3.12.263.13.30.3(2) g. - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(87) IRM 3.12.263.13.30.3(1)e - Updated TPNC language throughout. Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(88) IRM 3.12.263.13.31.3(1) - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(89) IRM 3.12.263.13.31.3(2)c - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(90) IRM 3.12.263.13.31.3(2)h - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(91) IRM 3.12.263.13.31.3 - Updated language for TPNCs throughout. Added note with instructions for when to ripple a TPNC.
(92) IRM 3.12.263.13.33.4(1)e - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(93) IRM 3.12.263.13.36.4(1)c - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(94) IRM 3.12.263.13.38.3(1) - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(95) IRM 3.12.263.13.38.3(2)c - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(96) IRM 3.12.263.13.38.3(2)c - Removed TPNC 40 and replaced it with TPNC 54, which best informs the taxpayer of the error. (IPU 24U0025 issued 01-03-2024)
(97) IRM 3.12.263.13.38.3(2)h - Added TPNC 90. (IPU 24U0374 issued 03-08-2024)
(98) IRM 3.12.263.13.38.3 - Updated TPNC language and removed exception as TPNC 41 is hard coded.
(99) IRM 3.12.263.14.15.1(2) - Deleted table in invalid conditions. (IPU 24U0259 issued 02-14-2024)
(100) IRM 3.12.263.14.15.2(1) - Added correction procedure table for 01PI. (IPU 24U0259 issued 02-14-2024)
(101) IRM 3.12.263.15.7.1(1) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(102) IRM 3.12.263.18.2.2(2) - Change year from 2019 to 2020 for Statute returns from memo agreement between SP and AM. (IPU 24U0192 issued 02-02-2024).
(103) IRM 3.12.263.18.5.1(1)a - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(104) IRM 3.12.263.18.17.1(3) - Added note if 2005 and subsequent to enter a 0. Corrected line numbers to match form.(IPU 24U0259 issued 02-14-2024)
(105) IRM 3.12.263.18.18.2.2 - Added TPNC’s missing. Deleted TPNC’s not needed. Updated TPNC language. Added links for TPNC Job Aids.
(106) IRM 3.12.263.18.19.3(4) - Added ripple instructions. Added TPNC 90 instructions. Added Links for the TPNC Job Aids. Updated TPNC Language.
(107) IRM 3.12.263.18.20.3(3) - Updated TPNC language. Added TPNC 90 instructions. Added Links for the TPNC Job Aids. Added note with instructions on when to ripple a TPNC.
(108) IRM 3.12.263.18.21.2(2) and (3) - Updated instruction to use TPNC 73. Updated 2, deleted the chart and added 3.
(109) IRM 3.12.263.18.21.3(3) -Added TPNC 90 instructions. Added Links for the TPNC Job Aids. Added a note with instructions for when to ripple a TPNC.
(110) IRM 3.12.263.18.22.4(3) - Added TPNC 90 instructions. Added Links for the TPNC Job Aids.
(111) IRM 3.12.263.18.23.3(3) - Added TPNC 90 instructions. Added Links for the TPNC Job Aids.
(112) IRM 3.12.263.18.24.3(5) - Added TPNC 90 and 64 instructions. Added Links for the TPNC Job Aids.
(113) IRM 3.12.263.18.26.4(4) - Added TPNC 90 instructions. Added Links for the TPNC Job Aids.
(114) IRM 3.12.263.18.27.4(3) - Added TPNC 90 instructions. Added Links for the TPNC Job Aids.
(115) IRM 3.12.263.18.29.4(4) - Added TPNC 90 instructions. Added Links for the TPNC Job Aids.
(116) IRM 3.12.263.18.30.3(3) - Added TPNC 90 instructions. Added Links for the TPNC Job Aids.
(117) IRM 3.12.263.18.31.3(3) - Added TPNC 90 instructions. Added Links for the TPNC Job Aids.
(118) IRM 3.12.263.18.32.3(10) - Added TPNC 90 instructions. Added Links for the TPNC Job Aids.
(119) IRM 3.12.263.19 - Added information to see the exhibit for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.
(120) IRM 3.12.263.19.1(1) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(121) IRM 3.12.263.19.1(1)(2) - Added procedures to make easier to understand.
(122) IRM 3.12.263.19.2 - Added Digital Assets (Field 01DAC) to section 01 table. Updated line numbers to match Field Names.
(123) IRM 3.12.263.19.2.4(1) - Changed line number to match Field Name.
(124) IRM 3.12.263.19.2.4.2(2) - Changed line number to match Field Name.
(125) (1) IRM 3.12.263.19.2.6.6 Added that an extra possibility for considering a CCC(G).for amended returns.
(126) IRM 3.12.263.19.2.6.12 - Updated tax years to more recent years throughout subsequent.
(127) IRM 3.12.263.19.5.3.2(1) - Added GTSEC 04 and Fields 04ST and Field 04ZIP.
(128) IRM 3.12.263.19.2.5.4(1) Note - Updated page and line number to match form.
(129) IRM 3.12.263.19.2.6.14 - Added 709-NA to CCC 7, Reasonable Cause statement.
(130) IRM 3.12.263.19.2.11 - Updated throughout per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(131) IRM 3.12.263.19.2.11(4)a, b, c, g, h, and (8)b - Changed line number to match Field Name. Updated that Signature line for consenting spouse not on tax year 2024 and subsequent, but a check box has been added. Removed page number and add schedule A.
(132) IRM 3.12.263.19.2.13 - Added Field 01DAC, and renumbered the rest of the subsections and links.
(133) IRM 3.12.263.19.2.14(2) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(134) IRM 3.12.263.19.2.14(1), and (2) - Changed line number to match Field Name.
(135) IRM 3.12.263.19.2.16(2) - Changed line number to match Field Name.
(136) IRM 3.12.263.19.2.17(2) - Changed line number to match Field Name.
(137) IRM 3.12.263.19.2.18(2)b, (4)c - Updated per Consistency IRM. Added 2024 Foreign Spouse amount to table. (IPU 24U0025 issued 01-03-2024)
(138) IRM 3.12.263.19.2.18(2), (5) - Changed line number to match Field Name.
(139) IRM 3.12.263.19.2.18(2)a and b, (5), (6) and (7)b - Deleted page 3 out of references. Updated exclusion for 2024 and added note to check chart for year of the return for exemption amount.
(140) IRM 3.12.263.19.2.18(9)b - Updated language for the TPNCs throughout. Added note with instructions on when to ripple a TPNC. Removed 90- reference for TPNC.
(141) IRM 3.12.263.19.2.19(2) - Added 2024 amount ($185,000) for Foreign Spouse. (IPU 24U0025 issued 01-03-2024)
(142) IRM 3.12.263.19.2.19(2),(3) - Deleted page 2 and page 3 references. Added 2024 amount(185,000) for Foreign Spouse on (2).
(143) IRM 3.12.263.19.3 - Added Schedule A where missing and deleted Page 3 reference's throughout subsection.
(144) IRM 3.12.263.19.3.2 - Removed page reference and added top of Schedule.
(145) IRM 3.12.263.19.3.3(1) - Updated column number to match form.
(146) IRM 3.12.263.19.3.4(2), (4), (8) - Added 2024 Annual Exclusion amount and Nonresident Alien amount to tables. Updated verbiage per Consistency IRM. Removed outdated information. (IPU 24U0025 issued 01-03-2024)
(147) IRM 3.12.263.19.3.4(2), (3), (12), (16) and (18) - Deleted page references and added Schedule A where needed. Removed out dated information from chart.
(148) IRM 3.12.263.19.3.4(3), (4), 6)a and b, (7) and (15)a and b - Added 2024 amounts for gifts and updated example.
(149) IRM 3.12.263.19.3.4(3) and (11) - Added line changes to match Field names.
(150) IRM 3.12.263.19.3.4 - Updated TPNC language throughout subsection, added links to TPNC 90 Job Aids. Added a note with instructions for when to ripple a TPNC. Removed 90- through out.
(151) IRM 3.12.263.19.3.4(8)b and c - Added Gender Neutral Language.
(152) IRM 3.12.263.19.3.5(4) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(153) IRM 3.12.263.19.3.5 - Removed Page references and add schedule A where necessary throughout subsection.
(154) IRM 3.12.263.19.3.6(2) - Removed Page references.
(155) IRM 3.12.263.19.3.7(2) - Removed Page references.
(156) IRM 3.12.263.19.3.8(2) - Removed Page references.
(157) IRM 3.12.263.19.3.9(2) - Removed Page references.
(158) IRM 3.12.263.19.3.10(2) - Removed Page references.
(159) IRM 3.12.263.19.3.11(2) - Removed Page references.
(160) IRM 3.12.263.19.3.12(2) - Removed Page references.
(161) IRM 3.12.263.19.3.13(2) - Removed Page references.
(162) IRM 3.12.263.19.4.1(2) - Removed Page references.
(163) IRM 3.12.263.19.4.2(2) - Removed Page references.
(164) IRM 3.12.263.19.4.11(2), (5) - Added 2024 Basic Exclusion amounts and Applicable Credit amount to tables and deleted information from 2001 and prior. (IPU 24U0025 issued 01-03-2024)
(165) IRM 3.12.263.19.4.12(2), and (3) - Removed Page references.
(166) IRM 3.12.263.19.4.14(2) - Added 2024 Applicable Credit amount to table. (IPU 24U0025 issued 01-03-2024)
(167) IRM 3.12.263.19.4.14(2) and (4) - Removed Page references.
(168) IRM 3.12.263.19.4.15(2) - Removed Sweden from treaty countries.
(169) IRM 3.12.263.19.4.18(3) - Added 2024 Exemption amount and removed old date from table. (IPU 24U0025 issued 01-03-2024)
(170) IRM 3.12.263.19.4.18(2) - Removed Page 4 reference
(171) IRM 3.12.263.19.5(1) - Added 04LRE to match screen display, but for 709-NA.
(172) IRM 3.12.263.23.1.2(2)d - Change year from 2019 to 2020 for Statute returns from memo agreement between SP and AM. (IPU 24U0192 issued 02-02-2024).
(173) IRM 3.12.263.23.4.1(1)a - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(174) IRM 3.12.263.23.16.2(2) - Updated page and line numbers to match current Form 2024.
(175) IRM 3.12.263.23.20.2 - Added links for TPNC notices Code Job Aids. Update exclusion amounts for 2024. Updated example for Foreign Spouse with additional donees. Removed reference 90- as no longer needed. Removed page references for schedules.
(176) IRM 3.12.263.23.20.2(3), (5) - Added 2024 Annual Exclusion, Applicable credit amount and Nonresident Alien amount to tables. (IPU 24U0025 issued 01-03-2024)
(177) IRM 3.12.263.23.21.2 - Updated TPNC Language.
(178) IRM 3.12.263.23.21.3 - Updated Language for TPNC and added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(179) IRM 3.12.263.23.22.2(3) - Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(180) IRM 3.12.263.23.22.3(1)a - Updated Language for TPNC and added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(181) IRM 3.12.263.23.23.2(6) - Updated per Consistency IRM. Updated all tables in this subsection with 2024 amounts. (IPU 24U0025 issued 01-03-2024)
(182) IRM 3.12.263.23.23.2(8), (15)b, note - Added instructions to use TPNC 90-285 instead of TPNC 90-93. Added a additional note with links to the 2 digit TPNC 90 and 3 Digit TPNC 90.(IPU 24U0462 issued 3-29-2024).
(183) IRM 3.12.263.23.23.2(2)f, (4)c, (6)f, (8), (15)b, (17)b - Updated TPNC language. Removed TPNC 90, it is no longer needed. Added TPNCs that were needed. Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC. Updated Exclusion amounts throughout.
(184) IRM 3.12.263.23.23.3(1)a, b, c, and d - Added TPNC 93, TPNC 91, and 98. Updated language for TPNCs. Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(185) IRM 3.12.263.23.24.2(4), (4)a, (4)b, - Updated Language. Removed TPNC 90, it- is no longer needed. Added links for TPNC Job Aids. Added a note with instructions for when to ripple a TPNC. Removed page number that references a Schedule.
(186) IRM 3.12.263.23.24.3(1), (1)a, (1)b, (1)c, and (1)d - Updated language for TPNCs. Removed TPNC 90, it- is no longer needed. Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(187) IRM 3.12.263.23.25.2(2), (3)d, and (4) - Removed Page number and added Schedule A. Removed TPNC 90, it- is no longer needed. Updated Language for TPNCs. Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(188) IRM 3.12.263.23.25.3(1)b - Updated language for TPNCs. Removed TPNC 90, it- is no longer needed. Added links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(189) IRM 3.12.263.23.26.2(2), (3), (4)and (5) - Removed Page reference on (2). Deleted TPNC 42 and added Language for TPNC 79. Added note with instructions for when to Ripple a TPNC.
(190) IRM 3.12.263.23.26.3(1)a, (1)b, (1)c, and (1)d - Deleted TPNC 42 and added Language for TPNC 79. Deleted TPNC 42 and added Language for TPNC 79. Added note with instruction for when to Ripple a TPNC.
(191) IRM 3.12.263.23.27.2(2) and (3) - Removed page reference to Schedule A. Added language for TPNC 80.
(192) IRM 3.12.263.23.27.3(1)a, (1)b, (1)c, (1)d, and (1)e - Updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(193) IRM 3.12.263.23.28.2(2) and (3) - Removed page reference and added Schedule. Updated Language for TPNC 10.
(194) IRM 3.12.263.23.28.3(1)a, (1)b, (1)c, (1)d, and (1)e - Updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(195) IRM 3.12.263.23.29.2(4) - Deleted TPNC 10. Added language for TPNC 81.
(196) IRM 3.12.263.23.29.3(1)a, (1)b, (1)c, (1)d, and (1)e - Updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(197) IRM 3.12.263.23.30.2(3) - Removed TPNC 10 and 81 and added Language for TPNC 11.
(198) IRM 3.12.263.23.30.3(1)a, (1)b, (1)c, (1)d, and (1)e - Updated TPNCs Language. Added Links for TPNC Job Aids. Added when to ripple a TPNC.
(199) IRM 3.12.263.23.32.2(3) and (4) - Updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(200) IRM 3.12.263.23.32.3(1)a, (1)b, (1)c, (1)d, and (1)e - Deleted TPNC 69. Updated TPNCs Language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(201) IRM 3.12.263.23.33.2(2)a, c and d - Deleted (2)a. Updated TPNC Language. Added note with instructions for when to ripple a TPNC.
(202) IRM 3.12.263.23.33.3(1)a, (1)b, (1)c, and (1)d - Deleted TPNC 69. Updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(203) IRM 3.12.263.23.34.2(3) - Updated TPNC Language.
(204) IRM 3.12.263.23.34.3(1)e, and f - Added Links for TPNC Job Aids. Added when to Ripple a TPNC.
(205) IRM 3.12.263.23.35.2(3) and (4)c - Updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(206) IRM 3.12.263.23.35.2(2), (4) - Added 2024 Applicable Credit amount to tables. (IPU 24U0025 issued 01-03-2024)
(207) IRM 3.12.263.23.35.3(1)a, b, c, and d - Updated TPNCs language. Added TPNC 95. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(208) IRM 3.12.263.23.35.3(1) a. - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(209) IRM 3.12.263.23.35.3(1) b. - Corrected TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(210) IRM 3.12.263.23.36.2(2)b and (3) - Removed note, Updated TPNC language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(211) IRM 3.12.263.23.36.3(1) a. - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(212) IRM 3.12.263.23.36.3(1) b. - Added TPNC 90 in place of TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(213) IRM 3.12.263.23.36.3(1)a, b, and c - Removed exception for TPNC 43. Updated TPNCs language. Added TPNC 95 and deleted the 90- reference, no longer needed. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(214) IRM 3.12.263.23.37.2(3)e - Updated TPNCs Language. Added Links for TPNC Job Aids. Added when to Ripple a TPNC.
(215) IRM 3.12.263.23.37.3(1) a. - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(216) IRM 3.12.263.23.37.3(1) b. - Corrected TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(217) IRM 3.12.263.23.37.3(1)a, (1)b, (1)c, (1)d, and (1)e - Removed exception for TPNC 43. Removed 90- from TPNC reference as no longer needed. Updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to Ripple a TPNC.
(218) IRM 3.12.263.23.38.2(4) - Added TPNC 75 and its language.
(219) IRM 3.12.263.23.38.3(1) a. - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued 03-08-2024)
(220) IRM 3.12.263.23.38.3(1) c. - Added TPNC 90 in place of TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(221) IRM 3.12.263.23.38.3(1)a, (1)b, (1)c, (1)d, and (1)e - Added TPNC 75 and updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(222) IRM 3.12.263.23.39.2(4)b, and (5) - Removed TPNC 90 reference as longer needed. (5) Added TPNC 90-284. Updated TPNC language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(223) IRM 3.12.263.23.39.3(1) a. - Added an Exception for Taxpayer Notice Code (TPNC) 41. (IPU 24U0374 issued (03-08-2024)
(224) IRM 3.12.263.23.39.3(1) c. - Added TPNC 90 in place of TPNC 43 language per the Notice programming. (IPU 24U0374 issued 03-08-2024)
(225) IRM 3.12.263.23.39.3(1)a, (1)b, (1)c, (1)d, and (1)e - Removed exception for TPNC 43 and TPNC 41. Added TPNC 90-284. Updated TPNCs language. Removed 90- from TPNC reference as no longer needed. Updated Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(226) IRM 3.12.263.23.40.24, and 5 - Updated TPNCs language. Added links for TPNC Job Aids. Added a note with instructions for when to ripple a TPNC.
(227) IRM 3.12.263.23.40.2.1 - Added Suspense correction procedures.
(228) IRM 3.12.263.23.40.3(1)d, and (1)d - Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(229) IRM 3.12.263.23.41.2(4) - Added TPNC 54 Language.
(230) IRM 3.12.263.23.41.3(1)d, (1)f, and (1)g - Updated TPNCs language. Added Links for TPNC Job Aids. Added note with instructions for when to ripple a TPNC.
(231) IRM 3.12.263.23.43.3 - Added Links for TPNC Job Aids. Added a note with instructions for when to ripple a TPNC.
(232) IRM 3.12.263.23.45(1)d - Updated per Consistency IRM. Added $18,000 for 2024 to instructions. (IPU 24U0025 issued 01-03-2024)
(233) IRM 3.12.263.23.45 - Updated exemption amounts to 2024 amounts and updated the example.
(234) IRM 3.12.263.23.45.1(3) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(235) IRM 3.12.263.23.45.1 - Updated example and added 2024 exemption amounts through out correction procedures.
(236) IRM 3.12.263.23.45.2(3) - Updated per Consistency IRM. (IPU 24U0025 issued 01-03-2024)
(237) IRM 3.12.263.23.45.2(3)b - Added 2024 line number changes.
(238) IRM 3.12.263.24 - Added Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, General Information.
(239) IRM 3.12.263.24.1 - Added Due Dates (Form 709-NA), United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
(240) IRM 3.12.263.24.2 - Added Section 01 - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
(241) IRM 3.12.263.24.2.1 - Added RMIT - Remittance.
(242) IRM 3.12.263.24.2.2 - Added Field 01NC - Name Control.
(243) IRM 3.12.263.24.2.2.1 - Added Invalid Conditions.
(244) IRM 3.12.263.24.2.2.2 - Added Correction Procedures.
(245) IRM 3.12.263.24.2.2.3 - Added Suspense Correction Procedures.
(246) IRM 3.12.263.24.2.3 - Added Field 01SSN - Donors Social Security Number (SSN).
(247) IRM 3.12.263.24.2.3.1 - Added Invalid Conditions.
(248) IRM 3.12.263.24.2.3.2 - Added Correction Procedures.
(249) IRM 3.12.263.24.2.3.3 - Added Suspense Correction Procedures.
(250) IRM 3.12.263.24.2.4 - Added 01SSS - Spouses Social Security Number. (Valid for Form 709 only)
(251) IRM 3.12.263.24.2.4.1 - Added Invalid Conditions.
(252) IRM 3.12.263.24.2.4.2 - Added Correction Procedures.
(253) IRM 3.12.263.24.2.5 - Added 01TXP - Tax Period.
(254) IRM 3.12.263.24.2.5.1 - Added Invalid Conditions.
(255) IRM 3.12.263.24.2.5.2 - Added Correction Procedures.
(256) IRM 3.12.263.24.2.5.3 - Added Early Filed returns Without remittance.
(257) IRM 3.12.263.24.2.5.4 - Added Early Filed Returns With Remittance.
(258) IRM 3.12.263.24.2.6 - Added 01CCC - Computer Condition Codes (CCC’s).
(259) IRM 3.12.263.24.2.6.1 - Added Invalid Conditions.
(260) IRM 3.12.263.24.2.6.2 - Added Correction Procedures.
(261) IRM 3.12.263.24.2.6.3 - Added CCC (D) - Reasonable Cause for Delinquency.
(262) IRM 3.12.263.24.2.6.4 - Added CCC (F) - Final Return.
(263) IRM 3.12.263.24.2.6.5 - Added CCC (G) - Amended Return.
(264) IRM 3.12.263.24.2.6.6 - Added CCC (L) - Treaty Based Position.
(265) IRM 3.12.263.24.2.6.7 - Added CCC (O) - Module Freeze.
(266) IRM 3.12.263.24.2.6.8 -Added CCC (R) -Reasonable Cause for Delinquency.
(267) IRM 3.12.263.24.2.6.9 - Added CCC (W) - Cleared by Statute.
(268) IRM 3.12.263.24.2.6.10 - Added CCC (X) - Credit Freeze.
(269) IRM 3.12.263.24.2.6.11 - Added CCC(Y) - Designates a Yield Condition.
(270) IRM 3.12.263.24.2.6.12 - Added CCC(3) - Added CCC(3) - No Reply Received/Suppress Credit Interest.
(271) IRM 3.12.263.24.2.6.13 - Added CCC(7) - Reasonable Cause Denied. Added 709-NA to note.
(272) IRM 3.12.263.24.2.7 - Added 01RCD - Received Date.
(273) IRM 3.12.263.24.2.7.1 - Added Invalid Conditions.
(274) IRM 3.12.263.24.2.7.2 - Added Correction Procedures.
(275) IRM 3.12.263.24.2.8 - Added 01PIC - Penalty and Interest (P/I) Code.
(276) IRM 3.12.263.24.2.8.1 - Added Invalid Conditions.
(277) IRM 3.12.263.24.2.8.2 - Added Correction Procedures.
(278) IRM 3.12.263.24.2.9 - Added Field 01CAF - CAF Indicator.
(279) IRM 3.12.263.24.2.9.1 - Added Invalid Conditions.
(280) IRM 3.12.263.24.2.9.2 - Added Correction Procedures.
(281) IRM 3.12.263.24.2.10 - Added Field 01PFC - Prior Filing Code.
(282) IRM 3.12.263.24.2.11 - Added 01CFC - Citizenship Foreign Country Code.
(283) IRM 3.12.263.24.2.11.1 - Added Invalid Conditions.
(284) IRM 3.12.263.24.2.11.2 - Added Correction Procedures.
(285) IRM 3.12.263.24.2.12 - Added Field 01DAC - Digital Asset Check Box.
(286) IRM 3.12.263.24.2.13 - Added Field 01CSI - Consent of Spouse Indicator.
(287) IRM 3.12.263.24.2.14 - Added Field 01DSI - DSUE Indicator, only valid on Form 709.
(288) IRM 3.12.263.24.2.15 - Added Field 01CZC - Citizenship Code, only valid on Form 709.
(289) IRM 3.12.263.24.2.16 - Added Field 01CRD - Correspondence Received Date.
(290) IRM 3.12.263.24.2.16.1 - Added Invalid Conditions.
(291) IRM 3.12.263.24.2.16.2 - Added Correction Procedures.
(292) IRM 3.12.263.24.2.17 - Added Field 01DTH - Death Indicator.
(293) IRM 3.12.263.24.2.17.1 - Added Invalid Conditions.
(294) IRM 3.12.263.24.2.17.2 - Added Correction Procedures.
(295) IRM 3.12.263.24.2.18 - Added Field 01DOD - Date of Death.
(296) IRM 3.12.263.24.2.18.1 - Added Invalid Conditions.
(297) IRM 3.12.263.24.2.18.2 - Added Correction Procedures.
(298) IRM 3.12.263.24.2.19 - Added Field 01TND - Total Number of Donees.
(299) IRM 3.12.263.24.2.19.1 - Added Invalid Conditions.
(300) IRM 3.12.263.24.2.19.2 - Added Correction Procedures.
(301) IRM 3.12.263.24.2.19.3 - Added Suspense Correction Procedures for Field 01TND.
(302) IRM 3.12.263.24.2.20 - Added Field 01FSI - Foreign Spouse Indicator.
(303) IRM 3.12.263.24.2.20.1 - Added Invalid Conditions.
(304) IRM 3.12.263.24.2.20.2 - Added Correction Procedures.
(305) IRM 3.12.263.24.2.21 - Added Field 01RFC - Refund Code.
(306) IRM 3.12.263.24.2.20.1 - Added Invalid Conditions.
(307) IRM 3.12.263.24.2.21.2 - Added Correction Procedures.
(308) IRM 3.12.263.24.2.22 - Added Field 01PSN - Preparer’s Tax Identification Number (PTIN).
(309) IRM 3.12.263.24.2.23 - Added Field 01PEN - Firm’s EIN
(310) IRM 3.12.263.24.2.24 - Added Field 01PTN - Preparer Phone Number.
(311) IRM 3.12.263.24.3 - Added Section 02 - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
(312) IRM 3.12.263.24.3.1 - Added Processing Field Errors.
(313) IRM 3.12.263.24.3.2 -Added Field 02GPB - Basis of Gifted Property.
(314) IRM 3.12.263.24.3.3 - Field 0201 - Total Gifts Current Amount.
(315) IRM 3.12.263.24.3.3.1 - Added Correction Procedures.
(316) IRM 3.12.263.24.3.3.2 - Added Suspense Corrections.
(317) IRM 3.12.263.24.3.4 - Added Field 0202 - Annual Exclusions for more Information.
(318) IRM 3.12.263.24.3.4.1 - Added Correction Procedures.
(319) IRM 3.12.263.24.3.5 - Added Field 0203 - Total Included Gifts Amount.
(320) IRM 3.12.263.24.3.5.1 - Added Correction Procedures.
(321) IRM 3.12.263.24.3.6 - Added Field 0204 - Gifts of Interest Amount.
(322) IRM 3.12.263.24.3.6.1 - Added Correction Procedures.
(323) IRM 3.12.263.24.3.7 - Added Field 0205 - Exclusions Attributable to Gifts.
(324) IRM 3.12.263.24.3.8 - Added Field 0206 - Marital Deduction.
(325) IRM 3.12.263.24.3.8.1 - Added Correction Procedures.
(326) IRM 3.12.263.24.3.9 - Added Field 0207 - Charitable Deductions.
(327) IRM 3.12.263.24.3.9.1 -Added Correction Procedures.
(328) IRM 3.12.263.24.3.10 - Added Field 0208 - Total Deductions Amount.
(329) IRM 3.12.263.24.3.10.1 - Added Correction Procedures.
(330) IRM 3.12.263.24.3.11 - Added Field 0209 - Balance After Deductions Amount.
(331) IRM 3.12.263.24.3.11.1 - Added Correction Procedures.
(332) IRM 3.12.263.24.3.12 - Added Field 0210 - GST Taxes Payable Amount.
(333) IRM 3.12.263.24.3.12.1 - Added Correction Procedures.
(334) IRM 3.12.263.24.3.13 - Added Field 0211 - Taxable Gifts (Balance After GST) Amount.
(335) IRM 3.12.263.24.3.13.1 - Added Correction Procedures.
(336) IRM 3.12.263.24.4 - Added Section 03 - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
(337) IRM 3.12.263.24.4.1 - Added Field 0301 - Current Taxable Gifts.
(338) IRM 3.12.263.24.4.1.1 - Added Correction Procedures.
(339) IRM 3.12.263.24.4.2 - Added Field 0302 - Prior Taxable Gifts.
(340) IRM 3.12.263.24.4.2.1 - Added Correction Procedures.
(341) IRM 3.12.263.24.4.3 - Added Field 0303 - Total Taxable Gifts.
(342) IRM 3.12.263.24.4.3.1 - Added Correction Procedures.
(343) IRM 3.12.263.24.4.4 - Added Field 0304 - Total Tax Taxpayer (Current).
(344) IRM 3.12.263.24.4.4.1 - Added Correction Procedures.
(345) IRM 3.12.263.24.4.5 - Added Field 0305 - Total Tax Taxpayer (Prior).
(346) IRM 3.12.263.24.4.5.1 - Added Correction Procedures.
(347) IRM 3.12.263.24.4.6 - Added Field 0306 - Balance of Tax.
(348) IRM 3.12.263.24.4.6.1 - Added Correction Procedures.
(349) IRM 3.12.263.24.4.7 - Added - Field 03BTV - Balance of Tax Verified.
(350) IRM 3.12.263.24.4.8 - Added Field 0312 - Other Credits.
(351) IRM 3.12.263.24.4.8.1 - Added Correction Procedures.
(352) IRM 3.12.263.24.4.9 - Field 0313 - Credit for Foreign Gift Taxes.
(353) IRM 3.12.263.24.4.9.1 - Added Correction Procedures.
(354) IRM 3.12.263.24.4.10 - Added Field 0314 - Total Credits.
(355) IRM 3.12.263.24.4.10.1 - Added Correction Procedures.
(356) IRM 3.12.263.24.4.11 - Added Field 0315 - Balance, Gifts Minus Credits.
(357) IRM 3.12.263.24.4.11.1 - Added Correction Procedures.
(358) IRM 3.12.263.24.4.12 - Added Field 0316 - Generation - Skipping Transfer Taxes (GST).
(359) IRM 3.12.263.24.4.12.1 - Added Correction Procedures.
(360) IRM 3.12.263.24.4.13 - Added Field 0317 - Total Tax.
(361) IRM 3.12.263.24.4.13.1 - Added Correction Procedures.
(362) IRM 3.12.263.24.4.14 - Added Field 03MCT - Manually Corrected Tax.
(363) IRM 3.12.263.24.4.14.1 - Added Correction Procedures.
(364) IRM 3.12.263.24.4.15 - Added Field 0318 - Generation - Skipping Transfer Tax Prepaid with Extension of Time to File.
(365) IRM 3.12.263.24.4.15.1 - Added Correction Procedures.
(366) IRM 3.12.263.24.4.16 - Added Field 03B/R - Balance Due.
(367) IRM 3.12.263.24.4.16.1 - Added Correction Procedures.
(368) IRM 3.12.263.24.4.17 - Added Field 03B/R - Refund Amount.
(369) IRM 3.12.263.24.4.17.1 - Added Correction Procedures.
(370) IRM 3.12.263.24.5 - Added Section 04 - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
(371) IRM 3.12.263.24.5.1 - Added Field 04PNL - Primary Name Line.
(372) IRM 3.12.263.24.5.1.1 - Added Invalid Conditions.
(373) IRM 3.12.263.24.5.1.2 - Added Correction Procedures.
(374) IRM 3.12.263.24.5.2 - Added Field 04LRE - Legal Residence.
(375) IRM 3.12.263.24.5.2.1 - Added Invalid Condition.
(376) IRM 3.12.263.24.5.2.2 - Added Correction Procedures.
(377) IRM 3.12.263.24.5.3 - Added Field 04CON.
(378) IRM 3.12.263.24.5.3.1 - Added Invalid Conditions.
(379) IRM 3.12.263.24.5.3.2 - Added Correct Procedures.
(380) IRM 3.12.263.24.5.4 - Added Field 04FAD - Foreign Address.
(381) IRM 3.12.263.24.5.4.1 - Added Invalid Conditions.
(382) IRM 3.12.263.24.5.4.2 - Added Correction Procedures.
(383) IRM 3.12.263.24.5.4.3 - Added Foreign Addresses - General Information.
(384) IRM 3.12.263.24.5.4.4 - Added Foreign Addresses.
(385) IRM 3.12.263.24.5.5 - Added Field 04ADD - Street Address.
(386) IRM 3.12.263.24.5.5.1 - Added Correction Procedures.
(387) IRM 3.12.263.24.5.6 - Added - Field 04CTY - City/Major City Code.
(388) IRM 3.12.263.24.5.6.1 - Added Correction Procedures.
(389) IRM 3.12.263.24.5.7 - Added Field 04ST.
(390) IRM 3.12.263.24.5.7.1 - Added Correction Procedures.
(391) IRM 3.12.263.24.5.8 - Added Field 04ZIP - ZIP Code
(392) IRM 3.12.263.24.5.8.1 - Added Correction Procedures.
(393) IRM 3.12.263.25 - Added Math Consistency - Priority IV Errors Instructions, Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
(394) IRM 3.12.263.25.1 - Added Error Code 001 - Tax Year - Fields Displayed.
(395) IRM 3.12.263.25.1.1 - Added Invalid Conditions for Error Code 001.
(396) IRM 3.12.263.25.1.2 - Added Correction Procedures for Error Code 001.
(397) IRM 3.12.263.25.1.3 - Added Suspense Correction Procedures for Error Code 001.
(398) IRM 3.12.263.25.2 - Added Error Code 002 - Name Control Mismatch Field Display.
(399) IRM 3.12.263.25.2.1 -Added Invalid Condition for Error Code 002.
(400) IRM 3.12.263.25.2.2 - Added Correction Procedures for Error Code 002.
(401) IRM 3.12.263.25.2.3 - Added Suspense Correction Procedures for Error Code 002.
(402) IRM 3.12.263.25.3 - Added Error Code 003 - Check Digit Invalid.
(403) IRM 3.12.263.25.3.1 - Added Invalid Conditions for Error Code 003.
(404) IRM 3.12.263.25.3.2 - Added Correction Procedures for Error Code 003.
(405) IRM 3.12.263.25.3.3 - Added Suspense Correction Procedures for Error Code 003.
(406) IRM 3.12.263.25.4 - Added Error Code 004 - Name Control/SSN Validation.
(407) IRM 3.12.263.25.4.1 - Added Invalid Conditions for Error Code 004.
(408) IRM 3.12.263.25.4.2 - Added Correction Procedures for Error Code 004.
(409) IRM 3.12.263.25.4.3 - Added Suspense Corrections for Error Code 004.
(410) IRM 3.12.263.25.5 - Added Error Code 007 - Received Date is Earlier than Tax Year.
(411) IRM 3.12.263.25.5.1 - Added Invalid Conditions for Error Code 007.
(412) IRM 3.12.263.25.5.2 - Added Correction Procedures for Error Code 007.
(413) IRM 3.12.263.25.5.3 - Added Suspense Correct Procedures for Error Code 007.
(414) IRM 3.12.263.25.6 - Added Error Code 010 - Amended Return G Coded.
(415) IRM 3.12.263.25.6.1 - Added Invalid Conditions for Error Code 010.
(416) IRM 3.12.263.25.6.2 - Added Correction Procedures for Error Code 010.
(417) IRM 3.12.263.25.7 - Added Error Code 011 - Remittance Amount/No data in Section 03/ CCC G not present.
(418) IRM 3.12.263.25.7.1 - Added Invalid Conditions for error Code 011.
(419) IRM 3.12.263.25.7.2 - Added Correction Procedures for Error Code 011.
(420) IRM 3.12.263.25.7.3 - Added Suspense Procedures for Error Code 011.
(421) IRM 3.12.263.25.8 - Added Error Code 014 - Missing Address Entries.
(422) IRM 3.12.263.25.8.1 - Added Invalid Conditions for Error Code 014.
(423) IRM 3.12.263.25.8.2 - Added Correction Procedures for Error Code 014.
(424) IRM 3.12.263.25.9 - Added Error Code 015 - Foreign Address/State.
(425) IRM 3.12.263.25.9.1 - Added Invalid Conditions for Error Code 015.
(426) IRM 3.12.263.25.9.2 - Added Correction Procedures for Error Code 015.
(427) IRM 3.12.263.25.10 - Added Error Code 016 - ZIP Code/State Mismatch.
(428) IRM 3.12.263.25.10.1 - Added Invalid Conditions for Error Code 016.
(429) IRM 3.12.263.25.10.2 - Added Correction Procedures for Error Code 016.
(430) IRM 3.12.263.25.11 - Added Error Code 030 - P&I Code of 1 and Received Date is on or before Return Due Date.
(431) IRM 3.12.263.25.11.1 - Added Invalid Conditions for Error Code 030.
(432) IRM 3.12.263.25.11.2 - Added Corrections Procedures for Error Code 030.
(433) IRM 3.12.263.25.12 - Added Error Code 034 - Correspondence Received Date.
(434) IRM 3.12.263.25.12.1 - Added Invalid Conditions for Error Code 034.
(435) IRM 3.12.263.25.12.2 - Added Correction Procedures for Error Code 034.
(436) IRM 3.12.263.25.13 - Added Error Code 073 - CCC is "3" and a date has been entered in Field 01CRD.
(437) IRM 3.12.263.25.13.1 - Added Invalid Conditions for Error Code 073.
(438) IRM 3.12.263.25.13.2 - Added Corrections Procedures for Error Code 073.
(439) IRM 3.12.263.25.14 - Added Error Code 082 - Name Control disagrees with name line.
(440) IRM 3.12.263.25.14.1 - Added Invalid Condition for Error Code 082.
(441) IRM 3.12.263.25.14.2 - Added Correction Procedures for Error Code 082.
(442) IRM 3.12.263.25.14.3 - Added Suspense Correction for Error Code 082.
(443) IRM 3.12.263.25.15 - Added Error Code 084 - In Care of Name present/Donor Name blank.
(444) IRM 3.12.263.25.15.1 - Added Invalid Conditions for Error Code 084.
(445) IRM 3.12.263.25.15.2 - Added Correction Procedures.
(446) IRM 3.12.263.25.16 - Added Error Code 400 - Death Indicator/DOD.
(447) IRM 3.12.263.25.16.1 - Added Invalid Conditions for Error Code 400.
(448) IRM 3.12.263.25.16.2 - Added Correction Procedures for Error Code 400.
(449) IRM 3.12.263.25.17 - Added Error Code 408 - Total Number of Donees/Annual Exclusions.
(450) IRM 3.12.263.25.17.1 - Added Invalid Conditions for Error Code 408.
(451) IRM 3.12.263.25.17.2 - Added Correction Procedures for Error Code 408.
(452) IRM 3.12.263.25.17.3 - Added Suspense Corrections for Error Code 408.
(453) IRM 3.12.263.25.18 - Added Error Code 416 -Annual Exclusions,
(454) IRM 3.12.263.25.18.1 - Added Invalid condition for Error Code 416.
(455) IRM 3.12.263.25.18.2 -Added Correction Procedures for Error Code 416.
(456) IRM 3.12.263.25.18.3 - Added Applicable TPNCs. for Error Code 416.
(457) IRM 3.12.263.25.19 --Added Error Code 420 - Total Included Gifts Amount.
(458) IRM 3.12.263.25.19.1 - Added Invalid Condition for Error Code 420.
(459) IRM 3.12.263.25.19.2 - Added Correction Procedures for Error Code 420.
(460) IRM 3.12.263.25.19.3 - Added Applicable TPNCs for Error Code 420.
(461) IRM 3.12.263.25.20 - Added Error Code 424 - Marital Deductions.
(462) IRM 3.12.263.25.20.1 - Added Invalid Condition for Error Code 424.
(463) IRM 3.12.263.25.20.2 - Added Correction Procedures for Error Code 424.
(464) IRM 3.12.263.25.20.3 - Added Applicable TPNCs for Error Code 424.
(465) IRM 3.12.263.25.21 - Added Error Code 428 - Total Deductions.
(466) IRM 3.12.263.25.21.1 - Added Invalid Condition for Error Code 428.
(467) IRM 3.12.263.25.21.2 - Added Correction Procedures for Error Code 428.
(468) IRM 3.12.263.25.21.3 - Added Applicable TPNCs for Error Code 428.
(469) IRM 3.12.263.25.22 - Added Error Code 432 - Balance After Deductions.
(470) IRM 3.12.263.25.22.1 - Added Invalid Condition for Error Code 432.
(471) IRM 3.12.263.25.22.2 - Added Correction Procedures for Error Code 432.
(472) IRM 3.12.263.25.22.3 - Added Applicable TPNCs for Error Code 432.
(473) IRM 3.12.263.25.23 - Added Error Code 436 - Taxable Gifts Amount.
(474) IRM 3.12.263.25.23.1 - Added Invalid Condition for Error Code 436.
(475) IRM 3.12.263.25.23.2 - Added Correction Procedures for Error Code 436.
(476) IRM 3.12.263.25.23.3 - Added Applicable TPNCs for Error Code 436.
(477) IRM 3.12.263.25.24 - Added Error Code 440 - Current Taxable Gifts
(478) IRM 3.12.263.25.24.1 - Added Invalid Condition for Error Code 440.
(479) IRM 3.12.263.25.24.2 - Added Correction Procedures for Error Code 440.
(480) IRM 3.12.263.25.24.3 - Added Applicable TPNCs for Error Code 440.
(481) IRM 3.12.263.25.24.4 - Added Suspense Corrections for Error Code 440.
(482) IRM 3.12.263.25.25 - Added Error Code 444 - Total Taxable Gifts.
(483) IRM 3.12.263.25.25.1 - Added Invalid Conditions for Error Code 444.
(484) IRM 3.12.263.25.25.2 - Added Correction Procedures for Error Code 444.
(485) IRM 3.12.263.25.25.3 - Added Applicable TPNCs for Error Code 444.
(486) IRM 3.12.263.25.26 - Added Error Code 448 - Total Tax Taxpayer (current).
(487) IRM 3.12.263.25.26.1 - Added Invalid Condition for Error Code 448.
(488) IRM 3.12.263.25.26.2 - Added Correction Procedure for Error Code 448.
(489) IRM 3.12.263.25.26.3 - Added Applicable TPNCs for Error Code 448.
(490) IRM 3.12.263.25.27 - Added Error Code 452 - Total Tax Taxpayer (prior).
(491) IRM 3.12.263.25.27.1 - Added Invalid Condition for Error Code 452.
(492) IRM 3.12.263.25.27.2 - Added Correction Procedures for Error Code 452.
(493) IRM 3.12.263.25.27.3 - Added Applicable TPNCs for Error Code 452.
(494) IRM 3.12.263.25.28 - Added Error Code 456 - Balance of Gift Tax.
(495) IRM 3.12.263.25.28.1 - Added Invalid Condition for Error Code 456.
(496) IRM 3.12.263.25.28.2 - Added Correction Procedures for Error Code 456.
(497) IRM 3.12.263.25.28.3 - Added Applicable TPNCs for Error Code 456.
(498) IRM 3.12.263.25.29 - Added Error Code 472 - Total Credits.
(499) IRM 3.12.263.25.29.1 - Added Invalid Condition for Error Code 472.
(500) IRM 3.12.263.25.29.2 - Added Correction Procedures for Error Code 472.
(501) IRM 3.12.263.25.29.3 - Added Applicable TPNCs for Error Code 472.
(502) IRM 3.12.263.25.30 - Added Error Code 476 - Total Gift Tax.
(503) IRM 3.12.263.25.30.1 - Added Invalid Condition for Error Code 476.
(504) IRM 3.12.263.25.30.2 - Added Correction Procedures for Error Code 476.
(505) IRM 3.12.263.25.30.3 - Added Applicable TPNCs for Error Code 476.
(506) IRM 3.12.263.25.31 - Added Error Code 480 - Total Taxes.
(507) IRM 3.12.263.25.31.1 - Added Invalid Condition for Error Code 480.
(508) IRM 3.12.263.25.31.2 - Added Correction Procedures for Error Code 480.
(509) IRM 3.12.263.25.31.3 - Added Applicable TPNCs for Error Code 480.
(510) IRM 3.12.263.25.32 - Added Error Code 484 - Balance Due/Overpayment.
(511) IRM 3.12.263.25.32.1 - Added Invalid Condition for Error Code 484.
(512) IRM 3.12.263.25.32.2 - Added Correction Procedures for Error Code 484.
(513) IRM 3.12.263.25.32.3 - Added Applicable TPNCs for Error Code 484.
(514) IRM 3.12.263.25.33 - Added Error Code 488 - Refund Code of one not present.
(515) IRM 3.12.263.25.33.1 - Added Invalid Condition for Error Code 488.
(516) IRM 3.12.263.25.33.2 -Added Correction Procedures for Error Code 488.
(517) IRM 3.12.263.25.34 - Added Error Code 492 - Total Tax computer is zero but remittance present.
(518) IRM 3.12.263.25.34.1 - Added Invalid Condition for Error Code 492.
(519) IRM 3.12.263.25.34.2 - Added Correction Procedures for Error Code 492.
(520) IRM 3.12.263.25.34.3 - Added Applicable TPNCs for Error Code 492.
(521) IRM 3.12.263.25.35 - Added Error Code 999 - End of Year.
(522) IRM 3.12.263.25.35.1 - Added Invalid Condition for Error Code 999.
(523) IRM 3.12.263.25.35.2 - Added Correction Procedures for Error Code 999.
(524) IRM 3.12.263.25.36 - Added Section 529(c)(2)(B) Returns (Qualified State Tuition Programs) - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
(525) IRM 3.12.263.25.36.1 - Added Correction Procedures for Section 529(c)(2)(B) Returns.
(526) Exhibit 3.12.263-8 - Added new revision Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and field designators. Renumbered remaining exhibits.
(527) Exhibit 3.12.263-12 Added new Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, and field designators. Renumbered remaining exhibits.
(528) Changed Wage & Investments (W&I) to Taxpayer Services (TS) throughout IRM 3.12.263.
Plain language, simpler words
Spelling, grammar, and formatting
IRM references, citations, and links
Form and IRM titles
IRM graphics and alternative text
Gender neutral language
Updated TPNCs , TPNC STATES and makes them BOLB through
Effect on Other Documents
IRM 3.12.263, Error Resolution, Estate and Gift Tax Returns, dated November 16, 2023, (effective January 1, 2024) is superseded. The following IRM Procedural Updates (IPUs) issued November 16, 2023, and January 3, 2024, through March 29, 2024, have been incorporated into this IRM: 23U1096, 24U0025, 24U0066, 24U0105, 24U0192, 24U0259, 24U0374, and 24U0462.
Audience
Taxpayer Services (TS) Submission Processing - Input Correction Operation, Error Resolution
Effective Date
(01-01-2025)
James L. Fish
Director, Submission Processing
Taxpayer Services Division
Program Scope and Objectives
(1) This subsection contains procedures for correcting errors made on certain estate and gift tax returns processed through the Error Resolution System (ERS).
(2) Estate tax returns (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return and Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Non-Resident not a Citizen of the United States, are filed by the estates of individuals who have more than a specified amount of assets at death and/or have given significant gifts during life.
(3) Gift tax returns (Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return or Form 709-NA United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, are filed by the individuals (donors) who gave the gifts and are responsible for paying the gift tax. However, if the donor does not pay the tax, the person receiving the gift (donee) may have to pay the tax. If a trust, estate, partnership, or corporation makes a gift, the individual beneficiaries, partners, or stockholders are considered donors and may be liable for the gift and Generation-Skipping Transfer (GST) taxes
(4) Purpose: All three taxes exist for the same reason, to tax the transfer of wealth
(5) Audience: Error Resolution:
Supervisory Tax Examining Assistant
Lead Tax Examining Technician
Tax Examining Technician
Clerk
Lead Clerk
Supervisory Clerk
Program Manager, Error Resolution
Supervisory Tax Examining Technician
Technician Lead Tax Examining Technician
Tax Examining Technician
Clerk
Lead Clerk
Supervisory Clerk
Program Manager, Error Resolution
(6) Policy Owners:
Director, Submission Processing
(7) Program Owner:
Return Processing Branch, Business Master File (BMF) section
(8) Primary Stakeholders:
Accounts Management (AM)
Small Business/Self-Employed (SBSE)
Large Business and International (LB&I)
Chief Financial Officer (CFO)
Taxpayer Advocate Service (TAS)
Chief Counsel
Information Technology Programmers (IT)
Statistics of Income (SOI)
Tax Exempt/Government Entities (TEGE)
Compliance
Modernized E-File (MEF)
Submission Processing (SP)
Background
(1) Error Resolution is to resolve validity errors, field errors, consistency errors, and math errors in returns and other documents for posting to the Master File. Records fall out in Error Resolution System (ERS) due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields. The GMF programming causes a record to fall out to ERS if it fails to meet certain criteria, including:
Invalid characters in a field (e.g., numeric instead of alpha).
Invalid length of field (e.g., EIN with 8 digits instead of 9)
Invalid codes in field (valid Action Codes, Audit Codes, etc. are programmed in GMF)
Consistency errors - any valid field used in any computation where the result is inconsistent with (or contradictory to) any other valid field
Math errors - computer does math computation and it differs from the taxpayer’s amount, and invalid tax periods and eligibility for certain credits
(2) This manual is your main source of information in correcting the record on the screen and the related return. You will also find procedures in the following Internal Revenue Manual:
IRM 3.12.38, Error Resolution-Business Master File (BMF) General Instructions, containing instructions for correcting records on the screen, document control, inventories and management reports
Authority
(1) The authority for the procedures in this subsection is found in the legislation listed below. See IRC 6201(a) of the Internal Revenue Code and the underlying regulations:
The Protecting Americans from Tax Hikes (PATH) Act Consolidated Appropriations Act (Extenders)
American Taxpayer Relief Act (ATRA)
Foreign Account Tax Compliance Act (FATCA)
Revenue Reconciliation Act of 1998 (RRA 98)
Section 2006(a) of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, Public Law (PL) 114-41, changed the return due dates for returns of partnerships, and C corporations
Taxpayer Bill of Rights (TBOR)
Tax Cuts and Job Act of 2017 (TCJA)
Taxpayer First Act of 2019
Note: The above list may not be all inclusive of the various updates to the IRC.
(2) All Policy Statements for Submission Processing are contained in IRM 1.2. Servicewide Policies and Authorities.
Responsibilities
(1) The Campus Director is responsible for monitoring operational performance for the Submission Processing campus.
(2) The Operations Manager is responsible for monitoring operational performance for their operation.
(3) The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their work.
(4) The Team Employees are responsible for following the guidance provided in this IRM and staying abreast of the interim guidance defined as procedural updates.
Program Management and Review
(1) Program Goals: Define the objectives or goals for the program, what will be achieved by following the process and procedures provided by this IRM. May include references and links to documents that outline program goals and objectives.
Correct any errors that are identified using the Error Resolution System (ERS).Access server, which has a login program control
(2) Program Reports: System control reports are on the Control-D Web Access (CTDWA) and a general listing of the reports are located in IRM 3.12.38, Error Resolution, BMF General Instructions.
(3) Program Effectiveness: How the program goals are measured. It is not intended to provide instruction for determining the program effectiveness. These documents may include links to program and quality reviews.
Embedded Quality Submission Processing (EQSP)
Balanced Measures
Managerial reviews
(4) Annual Review: Review the process included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under Responsibilities for a manager.
(5) Federal Managers Financial Integrity Act (FMFIA)
Program Controls
(1) Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.
Terms/Definitions/Acronyms
(1) This table below provides a list of acronyms used throughout this IRM 3.12.263 Error Resolution, Gift and Estate Tax Returns:
Acronyms and AbbreviationsAcronym | Definition |
|---|---|
AC | Action Code |
ADP | Automatic Data Processing |
AIMS | Audit Information Management System |
APO | Army Post Office |
BMF | Business Master File |
CADE | Customer Account Data Engine |
CAF | Centralized Authorization File |
CC | Command Code |
CCC | Computer Condition Code |
C&E | Code and Edit |
CI | Criminal Investigation |
CII | Correspondence Imaging Inventory |
CID | Criminal Investigation Division |
CL | Clear Code - A field labeled “CL” is shown for the entry of a Clear Code on records where a charge or correction may not be needed). |
DLN | Document Locator Number |
DPO | Diplomatic Post Office |
DSUE | Deceased Spousal Unused Exclusion |
DSSN | Donor's Social Security Number |
DOD | Date of Death |
EIF | Entity Index File |
EIN | Employer Identification Number |
ERS | Error Resolution System |
ETIP | Estate Tax Inclusion Period |
Exam | Examination |
FPO | Fleet Post Office |
GMF | Generalized Mainline Framework |
GST | Generation Skipping Tax |
ICS | Integrated Collection System |
IDRS | Integrated Data Retrieval System |
IDT | Identity (ID) Theft |
IRC | Internal Revenue Code |
IRM | Internal Revenue Manual |
ISRP | Integrated Submission and Remittance Processing |
LB&I | Large Business and International |
MCC | Major City Codes |
ME | Math Error |
MF | Master File |
NAP | National Accounts Profile |
NC | Notice Code |
NMF | Non Master File |
NR | Notice Review |
OLNR | On Line Notice Review |
P&A | Planning and Analysis |
PDS | Private Delivery Service |
PIC | Penalty and Interest Code |
POA | Power of Attorney |
PSPC | Philadelphia Submission Processing Center |
PSSN | Primary Social Security Number |
PTIN | Preparer’s Tax Identification Number |
QDT | Qualified Domestic Trust |
RCD | Received Date |
RDD | Return Due Date |
RMIT | Remittance |
RPS | Remittance Processing System |
SB/SE | Small Business/Self Employed |
SCAMPS | Service Center Automated Mail Processing System |
SERP | Servicewide Electronic Research Portal |
SFR | Substitute For Return |
SLA | Service Level Agreement |
SSA | Social Security Administration |
SPC | Submission Processing Center |
SSN | Social Security Number |
SSSN | Secondary Social Security Number |
SSPND | Suspend |
TAS | Taxpayer Advocate Service |
TBOR | Taxpayer Bill of Rights |
TC | Transaction Code |
TEGE | Tax Exempt/Government Entities |
TIA | Tax Information Authorization |
TIN | Taxpayer Identification Number |
TPNC | Taxpayer Notice Code |
TRS | Transcript Research System |
TXPD | Tax Period |
TS | Taxpayer Services |
Interpretation Words
(1) The table lists Interpretation words and their definitions:
Word | Definition | Example of using a word that is open to interpretation: (This column is for Illustration purposes only) |
|---|---|---|
Fair | Provide accurate and professional service to all persons without regard to personal bias. | Treat the customer in a fair manner when working with FOIA requests. |
Usually | Provide the exceptions when something is not required or what would create the unusual circumstance. | Pay adjustments will be accomplished within a reasonable amount of time, usually within two (2) pay periods. |
Timely | Provide the time frame to consider what is or is not timely. | Process all IMF adjustments in a timely fashion. |
Significant entry | Any entry other than zero or blank. | For example: If line 1 has a significant entry. Edit CCC "A". |
Related Resources
(1) Submission Processing Home page is designed to meet the needs of our employees in addition to:
Servicewide Electronic Research Program (SERP)
Submission Processing Design Center (SPDC)
Integrated Data Retrieval System (IDRS)
ERS only - Integrated Automation Technologies (IAT)
General Information
(1) This subsection tells you how to correct errors made on certain estate tax returns by both taxpayers and by campus processing. These errors will be shown on the Error Resolution System (ERS). Error Resolution errors are corrected directly on terminal display screens rather than using paper error registers. There will be no basic change to the flow of work through the campus pipeline.
(2) The general subsection covers the returns listed in items (a) through (c), below. If general and specific instructions conflict, follow the specific instructions. The forms for which Error Resolution text instructions are provided in this manual are listed as follows:
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return is filed for estates of citizens or residents of the United States.
Form 706-NA United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Non-Resident not a Citizen of the United States, is filed for estates of nonresidents who are not citizens of the United States.
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, is filed to report the tax applied to any gift, or transfer by gift of real or personal property that the taxpayer made directly or indirectly, in trust, or by any other means to a donee. It applies not only to taxes applied to the gratuitous transfer of any kind of property, but also to sales or exchanges where money or money's worth is exchanged, but the value of what is sold or exchanged exceeds the value in money or money's worth of the consideration given therefore. The gift tax is, in addition to any other tax, such as Federal income tax, paid or due on the transfer. The Document Code for Form 709 is Doc Code 09, the Tax Class is 5 and the Master File Tax (Class) Code (MFT) is 51.
Form 709-NA, United States ( and Generation Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, is filed to report the tax applied to any gift, or transfer by gift of real or personal property that the taxpayer made directly or indirectly, in trust, or by any other means to a donee. It applies not only to taxes applied to the gratuitous transfer of any kind of property, but also to sales or exchanges where money or money's worth is exchanged, but the value of what is sold or exchanged exceeds the value in money or money's worth of the consideration given therefore. The gift tax is, in addition to any other tax, such as Federal income tax, paid or due on the transfer. The Document Code for Form 709-NA is 08, the Tax Class is 5 and the Master File Tax (Class) Code (MFT) is 51. This form is for a foreign filer.
(3) Estate tax and Gift and Generation-Skipping Transfer Tax.
(4) See Figure 3.12.263-1, Document Locator Number for information on the Document Locator Number (DLN). The Document Code for Form 706, is 5 and the Tax Class is 6; for Form 706-NA, the Document Code is 5 and the Tax Class is 5. The Master File Tax (Class) Code (MFT) is 52 for both forms.
(5) It may be necessary to refer to instructions in the following IRMs:
IRM 3.11.106, Estate and Gift Tax Returns
IRM 3.12.38, BMF General Instructions
IRM 3.24.106, Estate Tax Returns
IRM 3.24.143, Gift Tax Returns
(6) See IRM 3.12.263.3.1, Filing Requirements and Due Dates for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Returns, IRM 3.12.263.3.1.5, Filing Requirements and Due Date for Form 706-NA, United States (and Generation-Skipping Transfer) Tax Return Estate of Non-Resident not a Citizen of the United States, and IRM 3.12.263.3.1.6, Filing Requirements and Due Dates for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Returns, for information on who needs to file these returns.
(7) When a field error sets due to the date of death falling in the current calendar year, January to June , suspend with Action Code 480 and hold until further instructions are issued by Submission Processing Headquarters Analyst to show the Basic Exclusion tables for current year programming is complete.
(8) Hold any Form 706, United States (and Generation -Skipping Transfer) Tax Return, with a date of death for current January to June year, hold until June 15th of current year.
(9) Error Resolution (ERS) do the following:
ERS SSPND 410 to the team lead
The Team Lead, will take the return to BMF Rejects to be re-suspended and placed in the early file suspense/future holds basket until they are notified by Headquarters.
(10) REJECTS, Hold any Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, with a date of death for current January to June, do the following:
DO NOT PROCESS
SSPND the returns under Action Code 480 (early file suspense) notation "EXT"
Batch and hold together according to Julian Date
Shelve or place on batch carts ready to be activated for processing when notified by Headquarters.
Planning and Analysis (P&A) Analyst must retain daily and/or weekly counts to provide to Headquarters when requested.
It would be best to batch these forms in refund/non-refund batches so Planning and Analysis (P&A) can keep track of any 45-day jeopardy refund returns.
(11) On any Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Code and Edit will review form and (no dollar threshold).
If Part 2, Line 1 and/or Part 2, Line 4 is greater than ≡ ≡ ≡ ≡ ≡ ≡ ≡: must get to Small Business/Self Employed (SBSE) for classification. Once completed ERS will send returns to SOI for Scanning. Once returns are received back from SOI, check to make sure they are closed and send to files.
If Part 3 Question 2,3 or 4 is checked yes: must go to Small Business/Self Employed (SBSE) for classification. Follow special handling instructions below when it pertains to the MFTRA C pulls in Files.
If Part 2, Line 4=0 and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, are included with the Form 706 file: must get to Small Business/Self Employed (SBSE) for classification. Once completed ERS will send returns to SOI for Scanning. Once returns are received back from SOI, check to make sure they are closed and send to files.
(12) If either of these criteria are met Code and Edit will removed these returns from the batch and have them batched/re-batched separately with like criteria met Form 706. These returns will be numbered with a Special 706 Document Locator Number (DLN), using assigned Block Numbers of 600-799 and a Block ID of 706/Met.
Note: This unique DLN will alert Submission Processing (SP) that these batches will need to go to Small Business/Self Employed (SBSE) and help Small Business/Self Employed (SBSE) identify which items in their inventory will remain open and which can be closed.
The 706/Met and 706/w6166 will have unique Block Numbers assigned for identification.
(13) On Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. There is a balance due on Line 20, Page 1, of Form 706. and either of the following conditions are present: Code and Edit (C&E) will have forms batch/re-batched, with like form (706 W/6166 election) and numbered with SPECIAL 706 DLN, using assigned Block Numbers of 800-899 and a Block ID of 706/W6166 per IRM 3.10.73.8.2.(Campus Mail and Work Control)
"Yes" box on Line 3 and/or Line 4, Part 3, Page 2 of Form 706 is checked.
IRC 6166, is noted anywhere on the return or an attachment
Code and Edit (C&E) will Action Code (AC) 370 the return and rejects in Error Resolution System (ERS).
(14) Once in Error Resolution System (ERS) these documents will be sent to Statics of Income (SOI) to be scanned. Daily ERS will review their new suspense list for items with the SPECIAL 706 DLN, using assigned Block Numbers of 800-899 and a Block ID of 706/W6166 and or Action Code (AC) 370 and pull form for SOI scanning. When these items are identified, complete tracking sheet provided by Planning and Analysis staff. Send EXCEL file which includes NAME CONTROL, TIN, TAX PERIOD and DLN ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and forward documents to Kansas City Submission Processing Center SOI with copy of tracking sheet. Once documents are scanned SOI will return documents to Error Resolution System (ERS). Error Resolution (ERS) will then send the EXCEL File to Small Business/Self Employment, mailbox *SBSE Estate and Gift 6166. Small Business/Self Employment will review these documents on the Distributive Processing System Image Net (DIN). After review Cincinnati Compliance Service Estate and Tax Campus Operations will prepare Form 4349, Computation of Estate and Tax Due.
Note: Only the 706/w6166 returns need to be held until the 4349 is received back from Cincinnati Compliance Service Estate and Tax Campus Operations.
Note: If ERS receives an Action Code (AC) 370 Form 706 without the above mentioned SPECIAL 706 DLN please alert Kansas City Submission Processing Center Planning and Analysis for proper resolution.
Organization of Text
(1) This text is structured to give you corrective procedures and help you find them quickly.
(2) The text is structured as follows:
General information on the overall concepts and procedures of the error resolution process
General information and concepts concerning the ERS system
Specific instructions for correcting individual fields
Specific instructions for correcting consistency and math errors
Specific instructions for manually computing returns when required
An exhibit subsection with frequently used codes with explanation
(3) This text provides enough information to correct most error conditions. You may sometimes need to see the instructions in IRM 3.11.106, Estate and Gift Tax Returns. If there is any difference between the instructions contained in IRM 3.11.106, Estate and Gift Tax Returns and those in IRM 3.12.263, Estate and Gift Tax Return follow the instructions contained in IRM 3.12.263, Estate and Gift Tax Return, and contact the analyst responsible for IRM 3.11.106. Estate and Gift Tax Return and IRM 3.12.263, Estate and Gift Tax Return using local procedures.
Business Master File (BMF) Consistency
(1) The purpose of the BMF Consistency initiative is to achieve consistency in the BMF Error Resolution System (ERS) processing IRMs.
(2) Topics for BMF Consistency have been identified and developed as a coordinated effort between Kansas City, Ogden, and Taxpayer Services (TS) (Return Processing Branch, BMF Code and Edit/ERS Section).
(3) IRM 3.12.263, Estate and Gift Tax returns are exempt from BMF Consistency Guidelines, (for example indicating diamonds) as shown in other sections of IRM 3.12, Error Resolution.
(4) The text in normal print within a consistency section signifies the common process to be used for all BMF returns. The text in bold print is form-specific and applies to this IRM only.
Forms
(1) The forms listed below are used or referred to in estate and gift tax return processing:
Caution: Attachment must contain name, address, Social Security Number (SSN) and an IRS Received Date. Enter if missing. If there is an attached form for another taxpayer, including spouse, or another tax period, review to decide if it is a copy. If it is not a copy, detach and route appropriately for processing. Recommend adding Form 709-NA to list of digital Signature added as acceptable.
Form/Document | Title | Detach | Action |
|---|---|---|---|
Form 56 | Notice Concerning Fiduciary Relationship | Yes | Prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip, and send to Entity Control. |
Form 706 | United States Estate (and Generation-Skipping Transfer) Tax Return | No |
|
Form 706-A | United States Additional Estate Tax Return | No |
|
Form 706-CE | Certificate of Payment of Foreign Death Tax | No |
|
Form 706-D | United States Additional Estate Tax Return for Under Code Section 2057 | No | Note: Form 706-D, like Form 706-A, United States Additional Estate Tax Return is filed separately from other Form 706 series returns. Both are Non-Master File (NMF) forms, processed through Code and Edit and Accounting. |
Form 706-GS(D) | Generation-Skipping Transfer Tax Return for Distributions | No |
|
Document 706-GS(D) | Notification of Distribution From a Generation-Skipping Trust. | No |
|
Form 706-GS(T) | Generation-Skipping Transfer Tax Return for Terminations | No |
|
Form 706-NA | United States (and Generation-Skipping Transfer) Tax Return Estate of Non-Resident not a Citizen of the United States | No |
|
Form 706-QDT | United States Estate Tax Return for Qualified Domestic Trust | No |
|
Form 706 Schedule PC | Protective Claim for Refund | No | Make a copy of Sch PC, Form 10886, Reject Routing Slip or Form 4227, Intra-SC or Reject or Routing Slip and send to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G |
Form 709 Schedule S | Increased Estate Ta on Excess Retirement Accumulations | No |
|
Form 709 | United States Gift (and Generation-Skipping Transfer) Tax Return | No |
|
Form 709-NA | United States Gift (and Generation-Skipping Transfer) Tax Return, Nonresident Not a Citizen of the United States | YES |
Note: This should already be done by Code an Edit. |
Form 712 | Life Insurance Statement | No |
|
Form 813-A | Recapitulation of Document Registers | No |
|
Form 843 | Claim for Refund and Request for Abatement | Yes | Prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC or Reject or Routing Slip, and send to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G. |
Form 1127 | Application for Extension of Time for Payment of Tax Due to Undue Hardship | Yes | Prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip, and send to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G |
Form 1310 | Statement of Person Claiming Refund Due a Deceased Taxpayer | Yes | Prepare Form 10886, Reject Routing Slip, orForm 4227, Intra-SC Reject or Routing Slip, and send to Adjustments. |
Form 1332 | Block and Selection Record | No |
|
Form 2350 | Application for Extension of Time To File United States Income Tax Return | No |
|
Form 2758 | Application for Extension of Time To File Certain Excise Income, information and Other Returns | No |
|
Form 2848 | Power of Attorney and Declaration of Representative | Yes |
|
Form 3465 | Adjustment Request | No |
|
Form 3696 | Correspondence Action Sheet | No |
|
Form 3696-A | IDRS Correspondence Action Sheet | No |
|
Form 3753 | Manual Refund Posting Voucher | No |
|
Form 3893 | Re-Entry Document Control | No | Stays on the front of return. |
Form 4349 | Computation of Estate Tax Due with Return and Annual Installment | No | See IRM 3.12.263.3.2.1, Installments and Form 4349. |
Form 4422 | Application for Certificate Discharging Property Subject to Estate Tax Lien | Yes | Send to First option is e-fax to 877-477--9243 and if you can’t E-FAX, then send to Internal Revenue Service Advisory Estate Tax Lien Group , 55 South Market ST Mail Stop 5350 San Jose, CA 95113-2324 |
Form 4768 | Application for Extension of Time To File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes | No | Taxpayer is instructed to send a 4768 directly to Estate and Gift Operations |
Form 4810 | Request for Prompt Assessment Under IRC 6501(d) | Yes | Send original Form 4810, Request for Prompt Assessment and copy of Page 1, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, on Form 10886, Reject Routing Slip or Form 4227, Intra-SC Reject or Routing Slip or Routing Slip, to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G. |
Form 4868 | Application for Automatic Extension of Time To File United States Individual Income Tax Return | No |
|
Form 5347 | Examination Multiple Request Master File | Yes | Prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip, and send to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G. |
Form 5495 | Request for Discharge from Personal Liability Under IRC 2204 or IRC 6905 | No | Form 5495, Request for Discharge from Personal Liability, will stay attached to the return. If the form comes in by itself, then it must be sent to Estate and Gift Tax Mail Stop 824 G. Using Form 10886, Reject Routing Slip or Form 4227, Intra-SC Reject or Routing Slip |
Form 5792 | Request for IDRS Generated Refund (IGR) | No |
|
Form 6800 | Request for Missing Information or Papers to Complete Return | No |
|
Form 6882 | IDRS/Master File Information Request | Yes | Prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip and send to Customer Service |
Form 8821 | Tax Information Authorization | Yes |
|
Form 8833 | Treaty Based Return Position Disclosure Under Section 6114 or 7701(b) | No |
|
Form 8892 | Application for Automatic Extension of Time To File Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return and/or Payment of Gift/GST Tax | No |
|
Form 8939 | Allocation of Increase in Basis for Property Acquired from a Decedent | Yes | Prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip and send to Cincinnati Field Support Operation - Campus Estate and Gift, Mail Stop 824G. |
Form 10886 | Reject Routing Slip | No | Move to the rear of return. |
Form 706 Schedule R-1 | Estate Tax Return | Yes | Re-batch as Program 75780 to Accounting NMF. |
Request for Acknowledgment |
| No | No action required. |
Caution: If any of the returns listed below are mailed between August 28, 2020 and October 31, 2025 accept a digital signature.
706, United States Estate (and Generation-Skipping Transfer) Tax Return
706-A, United States Additional Estate Tax Return
706-GS(D), Generation-Skipping Transfer Tax Return for Distributions
706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust
706-GS (T), Generation-Skipping Transfer Tax Return for Terminations
706-QDT, United States Estate Tax Return for Qualified Domestic Trust
706 Schedule R-1, Generation Skipping Transfer Tax
706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States
709, United States Gift (and Generation-Skipping Transfer) Tax Return
Researching OLE
(1) OLE is an On-Line Entity system designed to allow for validation of the Taxpayer Identification Number (TIN) and TIN/Name Control on-line with the Integrated Data Retrieval System (IDRS) input Command Codes (CCs). It is also designed to allow for entity research on a national basis.
(2) The national file is called National Accounts Profile (NAP) and is accessed by using CC INOLE. It is a file of all accounts nationwide. For detailed information and usage of command code INOLE, EOGEN, and SPARQ, see IRM 2.3.47, IDRS Terminal Responses.
(3) INOLE can be used to research name controls. For example, when the TIN is sent to the Master File for validation, but the name control mismatches, you must research to decide the correct name control. If information present on INOLE is consistent with information on the tax return, you can correct the error. If research does not decide the correct name control, then use other research command codes (i.e., NAMES/NAMEI) to decide a better TIN.
Business Master File On-Line and Return View
(1) Since Master File does not carry all information available on the IDRS screen displays it may be necessary to initiate IDRS research using Command Codes (CCs) such as INOLE, ENMOD, BMFOL or BRTVU.
(2) Use these CCs to research entity and/or tax data which may not be available on IDRS. In most cases, the response will appear on the screen in 5 seconds or less.
(3) Corporate Files On-Line (CFOL) CCs:
BRTVU-will provide business return transaction information. The file consists of original input return data, including schedules. This return information includes Code and Edit, Error Resolution (ERS) and computer generated fields.
BMFOL-will provide nationwide BMF entity and tax data information on-line for tax accounts that are in credit or debit status, and/or contain freeze conditions. It will display any tax account, even zero balance, that has not been moved to lower level. Account does not have to be a credit or a debit. It will also display a list of accounts moved to the retention register. Other accounts that are not on the retention register will be available on-line within 24 hours upon request.
Secured Returns
(1) Any returns secured by Compliance will have a Transaction Code (TC) 59X and the appropriate Closing Code (CC) input by Compliance prior to processing.
(2) These returns will be identified by a stamped or handwritten TC 59X and CC in the middle left-hand margin of Page 1 of the return.
(3) If there is a math error and taxpayer correspondence is required, SSPND with Action Code (AC) 640 to Rejects for unprocessables conditions. Rejects will void the document from the system and send the document to Compliance Services, Estate and Gift Tax Campus Operation, for further processing. DO NOT correspond with the taxpayer or executor for clarification or more information.
Note: For Estate and Gift Tax returns (Form 706, Form 706-NA, Form 709, and Form 709-NA), Kansas City Submission Processing Campus (KCSPC) will SSPND 370 to Cincinnati ,Centralized Specialty Tax leaving the document in ERS.
Unprocessables Conditions-Estate Tax Returns
(1) Estate tax returns must contain specific items before they are considered processable. Perfect all returns to the extent possible from schedules and other attachments. The specific items needed are:
Decedent's Name
Social Security Number
Executor's Address
Signature of executor or one coexecutor
(2) If any of the above items are missing or cannot be perfected, give the return to your manager to give to the estate tax attorney.
Exception: Correspond for signature of executor or one coexecutor.
Note: DO NOT correspond for death certificates.
Unprocessables Conditions-Gift Tax Returns
(1) Gift tax returns need the following information:
Donors Name
Social Security Number (SSN)
Address
Signature of donor
Spouse's Name, if applicable
Spouse's SSN, if applicable
(2) The following table pertains to unprocessables conditions for an incomplete Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.
If | And | Then |
|---|---|---|
Incomplete return (e.g., only page 1 and/or 2 is present) |
|
|
Incomplete return (e.g., only page 1 and/or 2 is present) | Return is numbered, unnumbered, or balance due and information for preparation of dummy return is available |
|
Criminal Investigation (CI) Referral
(1) Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.
(2) If CI has stamped the return, no further CI action is required
(3) For returns with refund claims of≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following:
Caution: If there is no indication Code and Edit (C&E) made a copy and sent to Criminal Investigation Referral, then see below.
≡ ≡ ≡ ≡ ≡ ≡ ≡ | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ |
|
(4) Because of the repetitive nature of the ERS/Rejects function, ERS/Rejects Tax Examining Technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If ERS identifies return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral.
(5) If a suspicious return is identified, and there is no indication Code and Edit (C&E) made a copy and sent to CI Referral, then, do the following:
Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.
Attach Form 4227, Intra-SC Reject or Routing Slip or Form 10886, Reject Routing Slip, to the copy.
Route the copy as indicated in the table below.
CI Referral RoutingEdit an action trail "Copy to (CI)", or "CI Referral", or similar language in the lower left corner going vertically up the side of the return.
Continue processing the return.
Ogden | Kansas City |
|---|---|
Mail Stop 9001, Criminal Investigation (CI) | Mail Stop S2 9000, Criminal Investigation (CI) |
(6) If the return fits other criteria (e.g., Frivolous Argument), take appropriate action.
Examination (Exam) "Funny Box"
(1) The primary objective in identifying questionable tax returns for Examination (Exam) is to promote the highest degree of voluntary compliance. Exam will give support and assist Submission Processing (SP) with any questionable return identified during processing. Exam has a vast multitude of programs and tolerance criteria already identified in various IRM sections. Exam does not restrict Submission Processing with the flexibility to refer questionable returns other than what is currently identified in various IRMs.
Customer Account Data Engine (CADE) 2
(1) The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal of implementing a single, modernized programming solution that gives daily processing of taxpayer accounts.
(2) The CADE 2 solution is comprised of several components to modernize the IRS to a daily processing environment with several Transition States.
(3) The Business Master File (BMF) campus cycles are:
Campus Cycle: Thursday - Wednesday
Master File Processing: Friday - Thursday
Notice Review Saturday: Monday (8+ days)
Unpostables: New available Tuesday; Closing Tuesday
(4) BMF transaction posting time frames are :
Transactions will be viewable using Corporate Files Online (CFOL) command codes on Saturday following the weekly Master Files processing run on Thursday.
Transactions will be viewable as posted transactions using Integrated Data Retrieval System (IDRS) command codes on Monday, following the weekly Master File processing run on Thursday.
Note: Implementation of CADE 2 accelerate weekly IDRS analysis. Previously, transactions such as this would have been pending an IDRS and not shown in the CFOL command code displays.
(5) Transaction posting dates will show a format of YYYYCCDD. YYYY is the year. CC is the posting cycle. For BMF transactions, the following values for DD are defined:
01 = Friday
02 = Monday
03 = Tuesday
04 = Wednesday
05 = Thursday
Note: BMF cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY is the year. CC is the posting cycle. BMF cycle posting dates in TXMOD will show a format of YYYYCCDD. The DD value is 08.
IRS Employee Contacts
(1) The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3705(a) gives identification requirements for all the IRS employees working tax-related matters.
(2) All the IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:
Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.
Face to Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and badge identification (ID Card) number.
Correspondence - (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.
Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only the IRS telephone number and standard signature.
(3) When taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.
(4) Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves. They must provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.
(5) It is not necessary to repeat the badge identification (ID Card) 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 by telephone or in-person) their badge identification (ID Card) number on the first contact.
Taxpayer Advocate Service (TAS)
(1) The Taxpayer Advocate Service is an independent organization within the IRS, led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe the IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.
(2) TAS uses Form 12412, Operations Assistance Request (OAR), to show the OAR process of referring a case to the Taxpayer Services (TS) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1., Taxpayer Advocate Case Procedures.
(3) Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps can't be taken to resolve the taxpayer's issue the same day.
(4) The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution":
The issue can be resolved within 24 hours.
The IRS takes steps within 24 hours to resolve the taxpayer’s issue.
(5) When making a TAS referral, use Form 911, and forward to TAS following your local procedures.
(6) See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.
Taxpayer Advocate Service (TAS) Service Level Agreements (SLAs)
(1) The National Taxpayer Advocate reached agreements with the Commissioners or Chiefs of the Taxpayer Services Division, Small Business/Self Employed (SB/SE), Tax Exempt Government Entities (TEGE) Division, Criminal Investigation (CI), Independent Office of Appeals, and Large Business and International (LB&I) Division, that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements were known as Service Level Agreements (SLAs).
(2) The SLAs are found at https://irssource.web.irs.gov/TAS/SitePages/SLA.aspx
BMF Identity (ID) Theft
(1) BMF (ID)Theft is increasing. If a tax examiner in Submission Processing (SP) Error Resolution System (ERS) finds a case with attachments or correspondence showing the taxpayer is a victim of ID Theft:
SSPND with Acton Code "360" to route the return to Planning & Analysis (P&A).
Attach Form 4227, Intra-SC Reject or Routing Slip or Form 10886, Reject Routing Slip,(or other appropriate routing slip) with the notation "ID THEFT".
Give the entire case to your senior/lead.
(2) The manager/lead will expedite the case to the P&A staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft"; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.
Use of Fax for Taxpayer Submissions
(1) Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable. For more information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax.
(2) Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use.
(3) Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.
(4) Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:
IRM 21.1.3.2.3, Required Taxpayer Authentication
IRM 21.1.3.2.4, Additional Taxpayer Authentication
(5) Before leaving any messages on a taxpayer's answering machine, review:
IRM 10.5.1.6.7.2, Answering Machine or Voice mail
IRM 10.8.1, Information Technology (IT) Security Policy and Guidance
IRM 10.8.1.3.18.6.22, Facsimile and Facsimile Device
Frivolous Arguments
(1) Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.
(2) Review the return to decide whether it appears to be a frivolous return and take the following action:
If | Then |
|---|---|
The return meets any of the conditions in the table below Caution: If the return shows Action Code 331 and has a Form 4227 Intra-SC Reject or Routing Slip, attached with the remarks: "Refer to Exam FRP for audit after processing", continue to next procedure. | Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review. Note: IRM 25.25.10, Frivolous Return Program, requires Examination to expedite the return and make a decision whether it qualifies as a frivolous return within two business days. If a determination is not made within the allowed timeframe, the Examination examiner will edit Action Code 331 in the lower left margin of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, or Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, preceded with the letters "AC". |
Examination has selected the return as frivolous, e.g., indicated by an Action Code 331 and a Form 4227, Intra-SC Reject or Routing Slip, with the remarks: "Refer to Exam FRP for audit after processing", but sends the return for processing | Continue processing the return using procedures in IRM 3.12.263, Error Resolution-Estate Tax Return. However, do not circle or void the Action Code showing a frivolous return. |
(3) Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument.
Returns that have only zeros, blanks, or no entries
Returns showing "None", "Not Liable", etc.
Error Resolution System (ERS) General Information
(1) Records are placed into the Error Inventory or the workable Suspense Inventory for correction.
(2) Once you access a record and it shows on the screen, you must either:
Fully correct the record.
Place the record in suspense until more information is received.
Reject the record from pipeline processing.
Issue the appropriate Taxpayer Notice Code (TPNC).
(3) Corrections include correcting transcription, coding errors or misplaced entries, or in the case of a taxpayer math error, notifying the taxpayer of any error on the return.
(4) This manual is your main source of information for correcting the record on the screen and the related return. You will also find procedures in the following IRMs:
IRM 3.12.38, General Instructions, which has general instructions for correcting records on the screen, document control, inventories and management reports.
IRM 3.11.106, Estate and Gift Tax Returns, which will add instructions related to ERS processing.
IRM 3.24.106, Estate Tax Returns, which has instructions for ISRP (Integrated Submission and Remittance Processing) input of estate tax returns.
IRM 3.24.143, Gift Tax Returns, which has instructions for ISRP input of gift tax returns.
Filing Requirements and Due Dates for Form 706, U.S. Estate Tax Return
(1) Form 706, United State Estate (and Generation-Skipping Transfer) Tax Return.
(2) The following information pertains to the due date of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.
If the decedent died after December 31, 1970, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is due the day of the ninth calendar month after decedent’s death numerically corresponding to day of calendar month on which death occurred. For example, if the decedent died on May 31 of the current year, the due date is February 28 of the following year.
Exception: If February 28 falls on a Saturday or Sunday, the due date would be the following Monday.
Exception: If the date of death is between January 1, 2010, and December 17, 2010 (inclusively); the return due date is September 19, 2011, as mandated in the Extender's Legislation (PL 111-312).
An application for extension of time for filing (Form 4768, Application for Extension of Time To File a Return and/or Pay Estate (and Generation-Skipping Transfer) Taxes, may be granted even if the application is made later than 9 months after the Date of Death (DOD). Unless the executor is abroad, the extended due date for filing estate tax return may not be later than 15 months from date of the decedent’s death.
Form 706, U.S. Estate Tax Return Gross Estate
(1) For decedent’s dying after 2001, the Unified/Applicable Credit and Basic Exclusion Amount for estates of citizens and residents are as follows:
Date of Death | Applicable Credit Amount | Basic Exclusion Amount |
|---|---|---|
2024 | $5,389,800 | $13,610,000 |
2023 | $5,113,800 | $12,920,000 |
2022 | $4,769,800 | $12,060,000 |
2021 | $4,625,800 | $11,700,000 |
2020 | $4,577,800 | $11,580,000 |
2019 | $4,505,800 | $11,400,000 |
2018 | $4,417,800 | 11,180,000 |
2017 | $2,141,800 | $5,490,000 |
2016 | $2,125,800 | $5,490,000 |
2015 | $2,117,800 | $5,430,000 |
2014 | $2,081,800 | $5,340,000 |
2013 | $2,045,800 | $5,250,000 |
2012 | $1,772,800 | $5,120,000 |
2011 | $1,730,800 | $5,000,000 |
2010 | $330,800 | $1,000,000 |
2002 through 2009 | $345,800 | $1,000,000 |
(2) There is no limit to the marital deduction. Unlimited amounts of property, except for certain terminable interests, can be transferred between spouses free of estate tax.
Extension of Time for Filing
(1) Extensions of time for filing an estate tax return will be granted if the request is filed on or before the due date of the return. The extension is generally granted when it is impossible or impractical to complete the return within 9 months after the DOD and good and sufficient cause is shown. These extensions may be granted even though a request is made later than 9 months from the DOD. However, unless the executor is abroad, the extended due date for filing the estate tax return may not be later than 15 months from the date of the decedent’s death.
Note: On Estate and Gift returns the taxpayer is required to send the Form 4768 to E&G 7940 Kentucky Dr. Stop 824G Florence, KY. 41042.
(2) If original Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return for the same period in which taxpayer died is attached to the estate tax return (Form 706), United States Estate (and Generation-Skipping Transfer) Tax Return, with approved extension to file, pull Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, enter the IRS received date, and note on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, "Extension to file Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return granted to MMDDYYYY-Do not assess penalties", Notate Computer Condition Code (CCC) "R" on the return so that no penalty will be assessed on the Form 709, United States Gift (an Generation-Skipping Transfer) Tax Return, if the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, posts after the Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. Route Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, to batching (numbering). If there is no extension to file, pull Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and enter the IRS received date.
(3) See IRM 3.12.263.2.3, Forms/Routing Guide, for additional references to additional extension forms which taxpayers may submit with their Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return series .
Prior Revisions of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return
(1) Chart below For decedent’s dying and revision of Form 706 needed for processing:
After | and Before | Use revision of Form 706 dated |
|---|---|---|
12/31/2018 | 01-01-2024 | August 2019 |
12/31/2017 | 01/01/2019 | November 2018 |
12/31/2016 | 01/01/2018 | August 2017 |
12/31/2012 | 01/01/2017 | August 2013 |
12/31/2011 | 01/01/2013 | August 2012 |
12/31/20010 | 01/01/2012 | August 2011 |
12/31/2008 | 01/01/20011 | September 20009 |
12/31/2007 | 01/01/2009 | August 2008 |
12/31/2006 | 01/01/2008 | September 2007 |
12/31/2005 | 01/01/2007 | October 2006 |
12/31/2004 | 01/01/2006 | August 2005 |
12/31/2003 | 01/01/2005 | August 2004 |
12/31/2002 | 01/01/2004 | August 2003 |
Prior Year Returns - Date of Death (DOD) January 1, 1977 or later
(1) The following information pertains to DOD January 1, 1977, or later. If a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is filed with a revision date prior to June 1977, transfer the data in the Tax Computation section.
Transfer the IRS "received date" to current revision of return.
After transfer of data, code and edit, staple overlay under entity portion of return.
(2) Examiners will perform the following preliminary exam:
If decedent is an "expatriate" the return is not subject to tax rates of a nonresident not a citizen of the U.S., but subject to normal rates of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. A U.S. "expatriate" is one who lost U.S. citizenship within 10 years before DOD and for whom it is reasonable to assume that a main purpose in doing so was to avoid U.S. taxes. Check Line 6b on back of Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States.
Under IRC 2208, a person who is a citizen of the U.S. by reason of birth in the U.S., established residence in a possession of the U.S. and died after September 2, 1958, is considered a U.S. citizen. The estate is subject to tax imposed by IRC 2001 and return will be Form 706, United States Estate (and Generation-Skipping Transfer instead of Form 706-NA. Reject with AC 610 if it is a non-remittance return. Delete "NA" from the title of form. This can be checked by looking at "Citizenship (nationality)" and "Domicile at time of death" blocks.
Filing Requirements and Due Dates for Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States
(1) After December 31, 1976, Form 706-NA is required for estate of nonresident, not a citizen of the U.S. If the part of the gross estate situated in the U.S. exceeded $60,000 at DOD reduced by:
Amount of adjusted taxable gifts per IRC Section 2201(b), made by the decedent after December 31, 1975, and,
Aggregate amount allowed as specific exemption per IRC section 2521, (before its repeal by the Tax Reform Act of 1976) with respect to gifts made by decedent after September 8, 1976.
(2) If Pre-1977 Form 706-NA has been filed, attach current revision of form to return and enter data for transcription lines onto current form. The following information will help convert returns.
(3) The following information pertains to the due date of Form 706-NA:
If the decedent died after December 31, 1970, Form 706-NA is due the day of the ninth calendar month after decedent’s death numerically corresponding to day of calendar month on which death occurred. For example, if the decedent died on May 31 of the current year, the due date is February 28 of the following year.
Exception: If February 28 falls on a Saturday or Sunday, the due date would be the following Monday.
An application for extension of time for filing theForm 4768, will no longer be considered when filing with the Form 706-NA return as the taxpayer is instructed to mail them to Centralized tax speciality.
Filing Requirements and Due Dates for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Form 709, United States Gift (and Generation-Skipping Transfer Tax Return), is filed by individuals to report certain gifts of terminable interests, gifts to the spouse (whether a U.S. citizen or a Non U.S. citizen), gifts to donees other than their spouse of future interests or any amount or gifts of present interests of more than the amount in table below for the year of the tax return to any one donee, gifts to charities, political organizations, transfers subject to the generation-skipping transfer tax or estate-tax inclusion period, gift-splitting (especially when the gifts exceed amount in table below for the year of the tax return per spouse per donee), etc. Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, is used to report transfers subject to the Federal gift and certain Generation-Skipping Transfer (GST) taxes and to figure the tax, if any, due on those transfers, and allocation of the lifetime GST exemption to property transferred during the transferor’s lifetime. All gift and GST taxes are computed and filed on a calendar-year basis regardless of the taxpayer's income tax accounting period.
(2) The first gifts of present interest to each donee during the calendar year is subtracted from total gifts in figuring the amount of taxable gifts. For a gift in trust, each beneficiary of the trust is treated as a separate donee for purposes of the annual exclusion. The annual exclusion for gifts of present interests made to a donee during the calendar year, see table below for the year of the gifts and amounts. Any gift amount given in excess of that see table below for the year of the gifts and amounts per donee per year is taxable.
Note: “The amounts in excess of the annual exclusion for that year (as listed in the table below) of gifts per donee is taxable.”
GIFTS MADE IN | ANNUAL EXCLUSION AMOUNT per DONEE |
|---|---|
2024 | $18,000 |
2023 | $17,000 |
2022 | $16,000 |
2018 through 2021 | $15,000 |
2013 through 2017 | $14,000 |
2009 through 2012 | $13,000 |
2006 through 2008 | $12,000 |
2002 through 2005 | $11,000 |
(3) The annual exclusion amount for a foreign spouse is
GIFTS MADE IN | AMOUNT |
|---|---|
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
(4) The Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, is an annual return which, generally, must be filed on or after January 1 and by April 15 of the year following the date the gift was given.
If the donor died during 2021, the executor must file the donor’s 2021 Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, not later than the earlier of (a) the due date (with extensions) for filing the donors estate tax return or (b) April 15, 2022. If the donor died during 2022, the executor must file the donor’s 2022 Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, not later than the earlier of (a) the due date (with extensions) for filing the donors estate tax return or (b) April 15, 2023.
(5) Any extension of time granted to file the taxpayer's calendar year income tax return will also extend the time to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Income tax extensions are made using Form 4868, Application for Extension of Time to File a Return and/or Pay Estate (and Generation-Skipping Transfer) Taxes; or Form 2350, Application for Extension of Time To File United States Income Tax Return. If the taxpayer has filed late and an extension (TC 460) does not exist on the account, research the Individual Master File (IMF) account for a posted TC 460.
Note: Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship, is used by taxpayers to request an extension of time to PAY (gift) taxes. The conditions under which extensions may be granted can be found in the Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship, instructions.
(6) See IRM 3.12.263.3.1.2, Extension of Time for Filing, for more information regarding extensions of time for filing. See IRM 3.12.263.3.2.1, Installments and Form 4349 for Information Regarding Extensions of Time to Pay.
Community Property Information
(1) In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) husband and wife each usually are considered to own half of the property owned by either one.
(2) Community property laws apply to estate tax returns if the taxpayer is domiciled in a community property state at the time of death. Accept taxpayer's claimed domicile. Half of the community property interest must be included in the decedent's gross estate.
Installments and Form 4349, Computation of Estate Tax due with Return and Annual Installment
(1) The request for installment payments under IRC 6166 may be included with the return or the election may be made by the taxpayer answering the appropriate questions (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Page 2, Part 3, Line 3) on the return. If Field 01PI contains a code 1, 3, 5 or 7, Form 4349, Computation of Estate Tax Due with Return and Annual Installment, must be completed by Compliance Services, Estate and Gift Tax Campus Operation, if Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Line 20, contains a Balance Due. This election may be in addition to extension requests made under IRC 6161, Extension of Time to Pay, and/or IRC 6163 Election Examination.
(2) If the installment privilege is tentatively granted under IRC 6166, Compliance Services, Estate and Gift Tax Campus Operation will prepare Form 4349, Computation of Estate Tax Due with Return and Annual Installment, for all cases in which Field 01PI contains Code 1, 3, 5, or 7.
(3) If a return requesting installments does not have Form 4349, Computation of Estate Tax Due with Return and Annual Installments, attached, suspend the return with AC 370. Attach routing slip with remarks to Examination Installment Unit.
Refund Returns (45 Day Jeopardy and Large Dollar Refunds)
(1) Document Perfection and Error Resolution are responsible for identifying refunds and for initiating requests for manual refunds.
(2) expeditious processing of refund returns is critical if the 45-day period is about to expire.
If | Then |
|---|---|
The processing date is more than 20 days after the IRS received date or the Return Due Date (whichever is later) and the 45-day interest free period is in jeopardy and the refund amount is ≡ ≡ ≡ ≡ ≡ ≡ or more. Note: Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods. |
|
The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more |
Note: Remember that refund of≡ ≡ ≡ ≡ ≡ ≡ ≡ or more will also need copies sent to CI. See IRM 3.12.263.2.9 |
Taxpayer Advocate Service (TAS) Manual Refunds
(1) Taxpayer Advocate Service (TAS) Manual Refunds - any return hand walked by a TS Submission Processing (SP) liaison for TAS as a manual refund must be processed by a lead tax examiner or designated tax examiner using the following procedures in the order listed:
CCC "O" must be edited on the return and entered in Field 01CCC.
Delete CCC "Y" from Field 01CCC.
Continue processing the return.
(2) Correspondence - If the return requires correspondence for missing or incomplete information, then do the following:
Prepare Form 3696, Correspondence Action Sheet, or other approved correspondence action sheet and request all information that is missing or incomplete.
Inform the Taxpayer Services (TS) SP liaison of all information that is being requested.
Suspend (SSPND) with appropriate suspense code and give the return back to the Taxpayer Services (TS) SP liaison.
The TS SP liaison will contact the TAS employee to obtain the required information needed to complete the processing of the return.
(3) Other Suspense Action - If the return requires other suspense action, then do the following:
Initiate suspense (SSPND) action according to procedures.
Inform the W&I Submission Processing liaison the reason for the action taken.
Give the return back to the Taxpayer Services(TS) Submission Processing liaison.
The TS Submission Processing liaison will contact the TAS employee, who in turn will take the necessary action to complete the processing of the return.
(4) Assigning Taxpayer Notice Codes (TPNCs)/Math Error - When a math error is identified, do the following:
Assign the applicable TPNC according to procedures.
After all TPNCs have been assigned, inform the Taxpayer Services(TS) Submission Processing liaison of the TPNCs issued.
Suspend (SSPND) with appropriate suspense code and give the return to the Taxpayer Services(TS) Submission Processing liaison.
The TS Submission Processing liaison will contact the TAS employee, who in turn will take the necessary action to complete the processing of the return.
(5) When Balance Due/Overpayment Math Error generates do the following:
Make a screen print of the Error Code Screen Display, highlight the Computer-Generated Refund Amount, and attach the print to the front of the return with the entity portion of the return visible.
Enter the amount the taxpayer claimed as the amount they requested to be refunded back into Field 03B/R.
(6) If Balance Due/Overpayment Math Error generates because the taxpayer made a math error when computing their refund, then do the following:
Make a screen print of the Error Code Screen Display, highlight the Computer-Generated Refund Amount, and attach the print to the front of the return with the entity portion of the return visible.
Assign the appropriate TPNC.
(7) Once return processing is complete, give the return, Form 12412, Operations Assistance Request (OAR), and the Error Resolution screen print to the TS Submission Processing liaison.
(8) Rejects Suspense - Manual refunds that are hand walked by a Taxpayer Services (TS) Submission Processing liaison that have been suspended must be processed as follows:
Follow the specific instruction given by the Taxpayer Services (TS) Submission Processing liaison in regards to correspondence issues and the assignment of the TPNCs.
Refer to applicable paragraphs above.
Glossary
(1) Error Resolution Action Code (AC) - A 3 digit numeric code used to put the document in suspense. This shows the need for more information not available in the record or on the return. Only one action code can be used on a record at a time.
(2) Computer Condition Code - A 1 digit number or letter used to identify a specific condition or computation on a return.
(3) Entity Index File (EIF) - Computer file that stores name data for each SSN on file. A check is made between the SSN and name entered. This check is made during transcription.
(4) Error Code - A 3 digit numeric code naming a specific math or consistency error in an error record.
(5) Error Records - Data records failing any of the math or validity checks on the Generalized Mainline Framework (GMF) system or containing an invalid or incomplete action code.
(6) Generalized Mainline Framework (GMF) - The system used to process and control all documents through the submission processing campus pipeline.
(7) Key Index File (KIF) - A computer file of TINs which can be accessed by using command code NAMES/NAMEI with name and address data.
General Corrections Procedures
(1) Perfecting the Tax Return and Error Screen Displays.
The error screen display shows the DLN, the SSN and the name control, if present, in the header portion of each error record. Previously assigned taxpayer notice codes will also be shown in the header information.
Before correcting the error screen displays, make sure the DLN of the screen display matches the DLN of the document. Take the following action.
If | Then |
|---|---|
A mixed data situation exists (information from two taxpayers' returns appear on the error record under one DLN or the DLN does not match the return on screen display) | Stop processing, give the block of work to your manager. Management will see if the mixed data can be corrected via the terminal screen displays or will have the blocks deleted and re-input. |
(2) Make sure the taxpayer's entries are on the correct lines of the tax return. Check for coding and transcription errors in each section or subsection and field of the screen display and on the return and correct as needed. Follow specific instructions and local procedures (such as Quality Alerts) for all sections and fields. Make sure all sections and fields were transcribed.
(3) Missing Signature - A signature is needed on all returns. If the signature area on the tax return is not signed, SSPND with AC 225 (Signature Only - Domestic Returns) or 226 (Signature Only - Foreign Returns).
Command Codes (CCs)
(1) The Command Codes (CCs) used to correct and research the Error Inventory and the Workable Suspense Inventory are described below. They are also explained inIRM 3.12.38, Error Resolution System (ERS), {General Instructions. Any CC permitted by the employee's security file will be available to the tax examiner.
(2) Enter CCs correctly, or you will get an error message. Correct the data entered with the CC and transmit.
ACTVT - Used to transfer an unworkable suspense record to the workable suspense inventory.
BMFOL - Used to provide nationwide BMF entity and tax data information on-line for tax accounts that are in credit or debit status, and/or contain freeze conditions. It will display any tax account, even zero balance, that has not been moved to lower level. Account does not have to be a credit or a debit. It will also display a list of accounts moved to the retention register. Other accounts that are not on the retention register will be available on-line within 24 hours upon request.
BRTVU - Used to provide business return transaction information. The file consists of original input return data, including schedules. This return information includes Code and Edit, Error Resolution (ERS) and computer generated fields. This command code was previously announced as CC RTVUE for business returns.
CRECT - Used to make a correction. Use CRECT only after an error has been displayed in response to the GTREC command. You cannot correct the Remittance Field in a record with the CC CRECT.
DLSEC - Used to delete a section within a record in process.
ENMOD - Used to research a name control.
ERINV - Used to research a specific DLN or TIN on the Error Resolution Control File. It also displays the number of records in a block.
ERVOL - Used with a Status Code to display the number of Error Resolution records in the current Workable Inventory. The printed reports for error Resolution are updated nightly. You may obtain the actual count of records to be worked at any time by using CC ERVOL.
GTREC - Used to access the first error record in an Error Resolution error block or to get a specific record in the Workable Suspense Inventory. It can also be used to re-display any uncorrected error.
GTRECQ - Used to access a worked record held for Quality review.
GTRECW - Used to retrieve an Error Resolution data record that has already been worked. Use this CC any time on the same processing day. If an error is found after that day, the record must be corrected using Notice Review and Adjustment procedures.
GTSEC - Used to display any data section within the record in process. The command will display all correctable fields in the requested section, including blank fields. It will not show computer generated fields or error indicators. If no data is present in the specified section, the empty format of the requested section is displayed.
INOLE - Used to access the most current entity data from the National Account Profile (NAP) files.
MFREQ - Used to request an entity module or a tax module and its related entity data from Master File when case control is not required.
NAMEE/NAMES/NAMEI/NAMEB - Used to research missing or invalid SSN’s, TIN’s or Employer Identification Numbers (EIN’s) when only the name and address are available.
RJECT - Used to reject a record from Error Resolution.
SSPND - Used with an Error Resolution AC to place a record in Suspense status. Use SSPND for Error Correction and Suspense Correction.
TXMOD - Used to research an active tax module.
Error Resolution System Action Codes (ACs)
(1) The Error Resolution Action Code (AC) shows that certain information is missing or that the record must be rejected from processing. The code will have sufficient detail to show if correspondence is to be sent to the taxpayer or specific in-house research or action is required.
(2) See AC table below for the appropriate codes:
Note: * CE = Code & Edit, EC = Error Correction, S = Suspense, GEN = Computer-Generated
Action Code | Description | Workday | Function * |
|---|---|---|---|
001 | Input Document AC 001 will be computer generated or entered from Error Resolution with CC SSPND when the Block Out of Balance (BOB) Resolution Function has added a missing document by only inputting the name control and TIN for the missing document. See IRM 3.12.263.3.9.2, Error Correction Action Code (AC), for corrective procedures. | 0 | EC |
211 | First Taxpayer Correspondence | 40 | CE, EC, S |
212 | Second Taxpayer Correspondence | 25 | CE, EC, S |
213 | Correspondence to Other than Taxpayer | 40 | CE, EC |
215 | International Correspondence | 45 | CE, EC, S |
225 | Signature Only | 40 | CE, EC, S |
226 | Signature Only (International) | 45 | CE, EC, S |
310 | Statute Control | 10 | CE, EC, S |
320 | Entity Control | 10 | CE, EC, S |
331 | Frivolous Review | 3 | CE, EC |
332 | Questionable Refund Detection Team (QRDT) Review | 3 | CE, EC |
333 | Prompt Audit | 10 | CE, EC |
334 | Joint Committee | 10 | CE, EC, S |
335 | Frivolous Case | 10 | CE, EC, S |
336 | QRDT | 10 | CE, EC, S |
337 | Other Criminal Investigation Division (CID) | 10 | CE, EC, S |
341 | Manual Refund | 10 | CE, EC, S |
342 | Credit Verification | 10 | CE, EC, S |
343 | Other Accounting | 10 | CE, EC, S |
344 | Manual Refund (Error Resolution) | 0 | EC |
347 | Form 2553, Election by Small Business Corporation to Entity Control. | 20 | CE, EC, S |
351 | TIN Research | 0 | EC, S |
352 | Name Research | 3 | CE, EC, S |
353 | Address Research | 3 | CE, EC, S |
354 | Filing Requirements Research | 3 | CE, EC, S |
355 | Other Research | 3 | CE, EC, S |
360 | Other In-House Research | 10 | CE, EC, S |
370 | Examination | 10 | CE, EC, S |
410 | Assistance Needed/Special Handling | 3 | CE, EC, S |
420 | Management Suspense A | 5 | CE, EC, S |
430 | Management Suspense B | 10 | CE, EC, S |
440 | Management Suspense C | 15 | CE, EC, S |
450 | Management Suspense D | 20 | CE, EC, S |
460 | Management Suspense E | 25 | CE, EC, S |
480 | Early Filed Suspense | 150 | CE, EC, S |
510 | Missing Document | 0 | CE |
511 | Missing Document 1st Suspense | 25 | EC, S |
512 | Missing Document 2nd Suspense | 20 | S |
513 | Missing Document 3rd Suspense | 20 | S |
515 | Missing Document Short Term | 5 | EC, S |
550 | Magnetic Tape Attachment | 3 | CE |
551 | Magnetic Tape Inconsistent Data | 3 | CE |
610 | Renumber | 0 | CE, EC |
611 | Remittance Renumber | 0 | S |
620 | NMF/Non-ADP (Automated Data Processing) | 0 | CE, EC, S |
630 | Re-input | 0 | EC |
640 | Void | 0 | CE, EC, S |
650 | International | 0 | CE, EC |
660 | Data Control Delete | 0 | GEN |
670 | Deleted Missing Document | 0 | GEN |
700 | Duplicate Block | 0 | GEN |
711 | Duplicate Document DLN from CE | NA | GEN |
712 | Duplicate Document DLN from EC | NA | GEN |
713 | Duplicate Document DLN from Inappositeness | NA | GEN |
714 | Duplicate Document DLN from Unworkable Suspense | NA | GEN |
715 | Duplicate Document DLN from Workable Suspense | NA | GEN |
900 | Unpostable Record | 0 | GEN |
(3) Document Perfection tax examiners will give a three digit code to numbered returns when they cannot process the return in the present form until more information is received or some manual intervention is required.
(4) Document Perfection will attach Form 3696, Correspondence Action Sheet, to begin correspondence. Use the AC and state what missing information is needed.
(5) A valid AC other than 001 places the record in Suspense Inventory, either Workable or Unworkable.
(6) Only assign one AC at a time to a record. The priority of the ACs are 310, 320, 4XX, 6XX, 3XX, 2XX.
(7) Code and Edit tax examiners will enter ACs on the bottom left - hand corner of the return.
Data Conversion will transcribe the AC into the record of the form.
If Code and Edit assigns an invalid or incomplete AC, the record will be sent to the Error Inventory for correction or deletion of the code.
Note: On reprocess/re-input documents, Error Resolution must decide if the AC will be deleted. The AC may have been valid the first time through the pipeline, but not valid for a reprocess/re-input. For example, if a reply is received for AC 211 and the information is attached to the return, the AC 211 would be invalid and must be edited out (i.e., circled) to prevent future suspense.
(8) An Error Resolution tax examiner may enter an AC on a record, delete or correct an invalid code or may replace the present AC with another to either re-suspend or reject from Error Resolution.
Enter a valid AC with CC SSPND. IRM 3.12.38, Error Resolution System (ERS), General Instructions, also explains these codes.
Entering a valid AC with CC SSPND clears the record from the screen and places the record in either Workable Suspense or Unworkable Suspense. And take the following action:
If | Then |
|---|---|
The AC cannot describe the required action | Attach a note of explanation to the return (routing slip). |
The tax examiner will not be issuing a letter through IDRS | Attach a Form 3696, Correspondence Action Sheet, to issue the correspondence. |
(9) A Reject tax examiner entering a valid AC with CC RJECT rejects the record from Error Resolution. Generally, the Service Center Control File (SCCF) will be automatically updated for the rejected records. An Unpostables tax examiner entering an AC with CC NWDLN rejects the record from the Error Resolution inventory and establishes the new DLN under which the record is to be entered.
(10) The computer generates a Form 4251, Return Charge Out, for all new suspense items. Use the form to pull documents to route the controlling documents while holding the record in suspense and to associate the document in the Workable Suspense Inventory when the record becomes workable.
When a record appears on the Workable Suspense Inventory with the AC as first priority, add the information received to the record or follow the IRM instructions for "no reply". Clear the AC by entering the letter "C" in the Clear Field (CL) and transmitting. Once you clear the AC, any Validity, Section, or Math/Consistency errors will be shown for correction.
Records that had been unprocessables may again require suspense for more information. Re-suspended items do not generate a charge-out. Note the charge-out in the correct block by entering the AC and date.
(11) When you cannot perfect a record, reject it from Error Resolution by using CC SSPND/RJECT with AC 640. Unpostables will take action to have the DLN voided.
(12) You may be able to perfect the record, but the document may need to be renumbered because the DLN or remittance amount may need to be corrected. Suspend with AC 610 or 611.
Clear Code "C" and "000"
(1) Use the letter "C" as a Clear Code to remove the error codes (consistency errors) when you do not have to change or correct the record to fix the error. The display will show a Clear field, labeled "CL" if a Clear Code can be used. The Clear field can be found to the right of "CRECT" on the screen display.
(2) Clear an error code with an available Clear Code by either correcting the problem or entering a "C" to state no correction is needed. If other corrections are needed, they must be entered and transmitted prior to entry of the Clear Code "C". Make sure that all corrective procedures have been followed for each individual error code before entering a "C" in the Clear Code field.
(3) Use Clear Code "C" to clear the AC from the screen after completing corrections, or when AC 410 and 700 are used. The AC must be cleared before other errors in the record can be resolved. The presence of the "C" with a Priority I Error states you have made the corrections to the AC and now wish to see any other errors on the record.
(4) Use Clear Code "000" to delete all action codes only when you have invalid and erroneous ACs and there is no reason to suspend the record. Suspense correction cannot use "000".
(5) When you suspend a record with CC SSPND, programming erases all "C" Clear Codes for error codes and action codes for the new day's Error Inventory and Workable Suspense Inventory.
(6) Unfinished records from the previous day contain none of the "C" Clear Codes given to a record not completely worked.
(7) Error Codes (including ones which may require a "C" Clear Code) are numbered consecutively for correcting.
While correcting errors on the terminal, you may create an error code with a higher priority than the one(s) you have cleared with a Taxpayer Notice Code (TPNC) or "C" Clear Code. If this happens, programming erases all TPNCs for error codes with a lower priority than the one created.
Programming will continue displaying error codes for the record beginning with the higher priority error code created. Displays using the corrected data may be different from those previously displayed.
You can correct by erasing an error code that you previously cleared with a "C" and now the error condition no longer exists. Should this occur, the "C" Clear Code for this error and all "C" and TPNCs for all subsequent errors in the record will be deleted.
If after deleting the "Cs" and TPNCs there are errors remaining on the record, they will continue to be displayed for resolution whether or not they were previously displayed.
(8) The "C" Clear Code will not allow any other corrections to the record to accompany the "C" Clear Code. If a correction must be entered, but you have already transmitted the "C" Clear Code, enter CC GTSEC 01 and put a "G" in Field 01CCC. Transmit and remove CCC "G" when the Error Code 010 appears to reset the record. If you used CC SSPND and the record is no longer displayed, then use CC GTRECW to make any corrections.
Types of Errors
(1) The Error Resolution System identifies errors based on type and priority. The record heading shows the type of error. Types include:
AC Error (Priority I)
Section Error (Priority II) Integrated Submission and Remittance Process (ISRP) priority code
Validity Error (Priority III)
Math/Consistency Error (Error Codes) (Priority IV)
(2) Tax examiners may find that programming has not included a field or section needed to correct an error. In this event, use CC GTSEC to get the needed field. This must be reported to Headquarters for correction of the display.
Priority I Errors - Suspense Inventory Correction Procedures (Reject Procedures)
(1) All records with an invalid AC assigned by Document Perfection will be placed in the Error Inventory and shown as a Priority I Error.
(2) All records with a valid AC will be assigned to a Suspense Inventory and shown as Priority I Error.
(3) See also IRM 3.12.38, BMF General Instructions, for more information regarding ACs and/or Priority I Errors.
Display
(1) The AC for the record with the literal description of the action will be shown.
Error Correction Action Code (AC)
(1) Enter CC SSPND with the correct AC, then transmit to suspend the record. using the following information:
If | Then |
|---|---|
Suspense is not required | Enter "000" in the Clear field (CL) and transmit. |
Document in block | Do not remove the document from the block (except for priority statute and manual refund cases). |
(2) Under Error Resolution, AC 001 is a Priority I Error.
This happens when the Block out of Balance (BOB) Resolution function adds a document to a block by entering only the name control and TIN. Error Resolution will add the rest of the record.
Enter CC GTSEC for each record section that does have data. Add the required data.
When all the sections have been entered, enter "C" in the Clear field, and normal validity checks will be made to the record.
Procedures for Correcting Priority I Action Code (AC) Errors
(1) The following information pertains to procedures for correcting Priority I AC Errors.
Priority I Error, AC 21X Correspondence
(1) The following information pertains to AC 21X correspondence:
If | Then |
|---|---|
Status 321: | If a letter was needed, follow the No Reply instructions. |
Status 331 or 431: | Follow local procedures. |
Status 421: | Follow reply instructions/add provided information in the reply before clearing Priority 1 error. |
The Statute Control Group clears the record | Use CC GTSEC for Section 01, check Field 01TXP, Tax Period, and enter CCC "W" in Field 01CCC. Transmit and then clear the Priority I Error with the "C" Clear Code. |
Priority I Error, AC 320 Entity Control
(1) Status 332 or 432: Entity Control will provide instructions when returning the document.
(2) Follow instructions from Entity Control before clearing the Priority I Errors.
(3) If the return was sent to Entity Control for the name control or SSN, Enter the correct fields using CC GTSEC for Section 01.
Priority I Error, AC 33X, Review/Routing To Criminal Investigation Division (CID)
(1) Status 333 or 433: Document will be referred to the Criminal Investigation Division (CID) before it is given to the tax examiner.
(2) Instructed to void the record and refer Form 706 or Form 706-NA. Follow local procedures.
(3) The return will continue to be processed, Follow Criminal Investigation Division, instructions before clearing Priority I Error.
Priority I Error, AC 34X, Routing - Accounting
(1) Accounting must return the form to the tax examiner to work.
(2) Follow Accounting instructions before clearing the AC.
Priority I Error, AC 35X, Key Index File (KIF)/Other Research
(1) AC 351, Status 435: Means Key Index File (KIF) was not available when record was on the Error Inventory take the following action:
If | Then |
|---|---|
SSN is found using CC NAMES/NAMEI |
|
SSN is not found using CC NAMES/NAMEI | Re-suspend (SSPND 320) to Entity Control for the SSN. |
(2) AC 352, 354, 355, Status 335 or 435:
If | Then |
|---|---|
Unable to solve after using CC INOLE/ENMOD/MFREQ | Re-suspend to Entity Control with AC 320. |
Correspondence is necessary and there is no address | Use AC 353. |
Priority I Error, AC 360, Other In-House Research
(1) Status 336 or 436: You will get the document and instructions from another area.
(2) Follow those instructions using CC DLSEC/GTSEC before clearing Priority I Error.
Priority I Error, AC 410 Assistance
(1) Clear the Priority I Error with the "C" Clear Code, so that other errors in the record might display.
Priority I Error, ACs 420 through 460, Management Suspense
(1) Management may tell you to work or re-suspend the record. Take the following action for processing.
If | Then |
|---|---|
Re-suspending | Use CC SSPND and the correct AC. |
Working the record | Clear the Priority I Error with a "C" Clear Code, so that other errors in the record might display. |
Priority I Error, AC 490 System Problem
(1) Computer Branch will tell your manager what to do, proceed with the following action.
If | Then |
|---|---|
Instructions are not received for Status 349 | You may be told to re-suspend with "SSPND 490". |
No other error exists on the record | DANGER: Once you clear AC 490, the record will go to good tape. You must get instructions from the Computer or Submission Processing Campus before clearing. |
Priority I Error, AC 51X, Status 451 or 351
(1) Suspend record with AC 51X to initiate special search. The charge-out issued for missing document(s) may be used for the initial search. It may also be used for subsequent searches by marking "Second Request", "Third Request", etc. on the charge-out returned from files.
(2) Keep requesting searches until document is located or record is rejected from Error Resolution.
Priority I Error, AC 6XX, Rejects
(1) The following information pertains to Priority I Errors:
If | Then |
|---|---|
AC 6XX is used to suspend to Workable Suspense |
|
The record is not deleted | Clear the Priority I Error with the Clear Code "C" so that any other errors that might exist can display. |
Priority I Error, AC 700, Duplicate Block DLN
(1) Clear the Priority I Error with the "C" Clear Code so that other errors in the record might display.
Priority I Error, AC 900 Unpostable Records
(1) The literal for the AC 900 will include the Unpostable Code. Follow the appropriate action,
If | Then |
|---|---|
The record can be resolved for AC 900 returns |
|
No other errors exist |
|
The error cannot be resolved on the Unpostable Record (AC 900) |
|
For AC 3XX, Status 33X
(1) The following information pertains to AC 3XX:
If | Then |
|---|---|
Requested information is not available | Verify that the return is for the taxpayer. The tax examiner will be told to re-suspend the record; AC 3XX. |
This occurs often | Headquarters will be asked to review the suspense period. |
A document is not available for a record on the Workable Suspense Inventory (AC other than 510) | The Suspense Documents File Unit will contact the manager who will search within Error Resolution. |
It cannot be found | The manager will state it is missing. The tax examiner working the record will re-suspend the record with AC 511, initiating a search for the document. |
Priority II Errors - Section Errors
(1) The Integrated Submission and Remittance Processing (ISRP) will eliminate most editing, missing section, and terminus errors. If normal Integrated Submission and Remittance Processing, validity checks have been bypassed, edit errors and/or terminus errors may be present.
(2) Edit Error - A section with an error detected by Integrated Submission and Remittance Processing. Edit errors will be coded as follows:
Code 1 = Split screen transmission. Key verifier tried to change the Check Digit, key verifier changed four or more digits of the TIN, or the original entry operator indicated that a required section is missing.
Code 3 = Invalid section ending point.
Code 4 = Invalid field length.
Code 5 = Questionable section - A section entered twice or entered out of sequence by Integrated Submission and Remittance Processing.
Terminus Error
(1) A section with variable length input fields with fields the wrong size.
Display
(1) All transcribed fields, except the Error Resolution AC and the remittance (payment received), will be displayed in columnar format with or without data. Integrated Submission and Remittance Processing, Problem Code errors will also show the type of error. Only one section (error) will be displayed at a time.
Content
(1) Any individual section, excluding computer generated fields and the AC. (The AC is an un-correctable field except as defined for CC SSPND.)
Correction Procedures
(1) Integrated Submission and Remittance Process Errors - You must check all fields of the section. If Section 01 of the return is coded, verify that the return is for the taxpayer whose name is in Section 01. After you correct the section, or if no corrections are necessary, transmit from the bottom of the screen.
(2) Terminus Errors - You must check all fields of the section. Make all necessary corrections. After you correct the section, or if no corrections are necessary, transmit from the bottom of the screen.
Priority III Errors - Field Errors Definition
(1) Any field failing to meet the requirement(s) for that field will be shown as a Priority III error. Consistency and/or relationships with other fields will not be a factor. Some reasons for field errors include:
Non-numeric character in a numeric field
Non-alphabetic character in an alpha field
Blank space in a number field
Blank in the first position of an alpha field
Note: Individual field validity errors to be bypassed after initial consideration are shown as Priority IV Errors.
Display
(1) All fields with a Priority III Error will be displayed in columnar format in the order encountered in the record. The AC’s and TPNCs do not display as a Priority III Error.
(2) An overflow field is identified by all question marks for a money field or a single pound sign in the last position of a name line.
Correction Procedures
(1) If a field shows in error:
Correct every error field displayed using the specific instructions within each section for the field in error.
Check the information on the source document to decide if each displayed field has been correctly edited and transcribed.
Enter the correct data for each field displayed.
If there is no data for the field, blank the field.
Correct every field displayed.
Transmit.
Taxpayer Notice Codes (TPNCs)
(1) Use this code when there is a math error which affects the tax liability or tax due/overpayment. Enter it on the terminal screen following the literal "NC" and write it on the upper left corner of the return.
(2) Enter the TPNC after you see that no further corrections to the screen display is needed. The TPNC tells the computer that no other corrections to the screen display will be made. Enter and transmit all corrections for each error condition before using a TPNC. Each math error has a certain TPNC that can be used to clear the error. The TPNC used must be valid for the Error Code.
(3) Each math error display needs either a correction to a field or the entry of a TPNC. You cannot make any other correction when transmitting a TPNC. TPNCs used for a math error will be shown on subsequent displays for the record. This field is used for display purposes only and cannot be corrected.
Note: If you decide that you sent an unnecessary or incorrect TPNC, see IRM 3.12.263.3.12.2, Changing a TPNC.
TPNC 90
(1) TPNC 90 is a blank fill-in notice with 10 lines available for whatever statement is needed and is used when no other TPNC fully explains the error situation or when more than three notice codes are necessary. TPNC 90 can be used in conjunction with other notice codes.
(2) If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt.
(3) When sending a TPNC 90, do the following:
Write on the return TPNC 90 - ### (or similar language) or use Form 12648, Error Correction 90 TPNC.
Note: TPNC 90 Math Error Code Job Aid shows literals with two digits and TPNC 90 Literals - Copy and Paste Job Aid shows literals with three digits
.
Notate TPNC 90 (or similar language) and the date on Form 1332, Block and Selection Record, or Form 2275, Records Request, Charge and Recharge.
Place the return in the TPNC 90 designated area (basket/tub).
(4) The following information pertains to TPNC 90. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer:
If | Then |
|---|---|
More than three TPNCs need to be used (a return can have as many as three TPNCs) | Use TPNC 90 instead and list the errors for Notice Review to type and send to the taxpayer. |
TPNC 90 is used |
|
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Changing a TPNC
(1) Once you transmit a TPNC, it may be changed in the following manner:
Records which have not been cleared from the terminal - if you still have errors after transmitting the TPNC you can create an error with a higher priority. To do this, input "G" into Field 01CCC. This will cause EC 010 to generate. Delete the "G" creating a higher priority error. This will delete all "C" Clear Codes and any notice code already assigned a lower priority error from the header display. The display will then show the high Priority IV error created and all subsequent errors, even though they may have been previously shown.
A correction you make erases an error code which you have previously cleared with a TPNC or "C" Clear Code. In this case, the "C" or TPNC on this error and all subsequent error codes will be shown for resolution. The TPNC(s) for this error and subsequent error codes will be deleted from the header display.
Records which have been worked may be reworked using CC GTRECW. See IRM 3.12.38.3.2, General Correction Procedures, for further details.
All TPNCs are erased when a record is suspended with CC SSPND.
If you do not completely work a case, the TPNCs you used on the unfinished records will not be there the next day.
TPNCs and Their Notice Messages for Form 706
(1) The following information pertains to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Error Messages:
Taxpayer Notice Code | Taxpayer Notice Statement |
|---|---|
TPNC 34 | We found an error on Schedule D. Credit for Foreign Death Tax. |
TPNC 35 | We found an error on Schedule Q. Credit for Tax on Prior Transfer. |
TPNC 36 | We found an error in the computation of Net Estate Tax. |
TPNC 37 | We found an error in the computation for State Death Taxes. |
TPNC 38 | We found an error in the computation of Tentative tax. |
TPNC 39 | We found an error when the credit amounts were added on Page 1, Part 2. |
TPNC 40 | We found an error in the computation of the balance due. |
TPNC 41 | We found an error in the computation of the Unified Credit amount. Note: For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Returns, use this TPNC for 2011 revisions and prior ONLY. |
TPNC 42 | We found an error in the computation of the Marital Deduction on Schedule A. |
TPNC 43 | We found an error in the computation of the Applicable Credit amount. |
TPNC 47 | We found an error on Schedule R in the computation of Total Generation-Skipping Transfer Tax. |
TPNC 50 | We found an error on Schedule R-1 - Generation-Skipping Transfer Tax. |
TPNC 54 | We found an error in the computation of the balance due or overpayment amount. |
TPNC 64 | We found an error in the computation of your Taxable Estate. |
TPNC 70 | We found an error in the computation of the gross estate tax amount on Line 8. |
TPNC 71 | We found an error in the computation of the allowable Unified Credit amount on Line 11. |
TPNC 72 | We found an error in the computation of the amount on Page 1, Part 2, Line 12. |
TPNC 73 | We found an error in the computation of the Allowable Applicable Credit amount on Line 11. |
TPNC 82 | We found an error in the computation of the amount on Page 1, Part 2, Line 18. |
TPNC 83 | We found an error in the computation of your Total Tax amount. |
TPNC 90 | TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what will appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer. Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt. |
TPNCs and Their Messages for Form 706-NA
(1) The following information pertains to Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return estate of nonresident not a citizen of the United States, Error Messages:
Taxpayer Notice Code | Taxpayer Notice Statement |
|---|---|
TPNC 20 | We found an error on Schedule A - Gross Estate in the U.S. |
TPNC 21 | We found an error on Schedule B - Taxable Estate. |
TPNC 22 | We found an error on Schedule B, Gross Estate Outside the U.S. |
TPNC 23 | We found an error on Schedule B, in the computation of Entire Gross Estate wherever located. |
TPNC 24 | We found an error on Schedule E -Jointly Owned Property. |
TPNC 25 | We found an error on Schedule F -Other Miscellaneous Property not Reportable Under Any Other Schedule. |
TPNC 26 | We found an error on Schedule G - Transfer During Decedent's Life. |
TPNC 27 | We found an error on Schedule H - Powers of Appointment. |
TPNC 28 | We found an error on Schedule I - Annuities. |
TPNC 29 | We found an error on Schedule B, in the computation of Funeral expenses, administration expenses, decedent’s debts, mortgages and liens and losses during administration. |
TPNC 30 | We found an error on Schedule B, in the computation of Deductions for expenses, claims, etc. |
TPNC 31 | We found an error on Schedule L - Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims. |
TPNC 32 | We found an error on Schedule M - Bequests, etc., to Surviving Spouse (Marital Deduction). |
TPNC 33 | We found an error on Schedule O - Charitable, Public and Similar Gifts and Bequests (Charitable Deductions). |
TPNC 34 | We found an error in the computation of Total Deductions. |
TPNC 35 | We found an error on Schedule Q - Credit for Tax on Prior Transfers. |
TPNC 36 | We found an error in the computation of Net Estate. |
TPNC 37 | We found an error in the computation of the Credit for state death taxes. |
TPNC 38 | We found an error in the computation of Tentative tax. |
TPNC 39 | We found an error in the addition of the credit amounts on Form 706-NA. |
TPNC 40 | We found an error in the computation of the balance due. |
TPNC 41 | We found an error in the computation of Unified Credit amount. |
TPNC 44 | We found an error in the computation of tentative tax on Page 1, Part II, Line 5, Tentative Tax on the amount on Line 2. |
TPNC 47 | We found an error in the computation on Schedule R in computation of Total Generation-Skipping Transfer Tax. |
TPNC 50 | We found an error on Schedule R-1 - Generation-Skipping Transfer Tax. |
TPNC 52 | We found an error in the computation Taxable Estate. |
TPNC 54 | We found an error in the computation of Balance Due. |
TPNC 56 | We found an error in the computation on Page 1, Part II, Line 2, Total Taxable Gifts. |
TPNC 58 | We found an error in the computation of the-Balance. |
TPNC 60 | We found an error in the computation of Other Credits. |
TPNC 62 | We found an error in the computation of Earlier Payments. |
TPNC 64 | There was an error in computing the amount on Page 1, Part II, Line 18, U.S. Treasury Bonds Redeemed to Pay Estate Tax. |
TPNC 67 | We found an error in the computation of the amount on Page 1, Part II, Line 3, Total. |
TPNC 68 | We found an error in the computation of the amount on Page 1, Part II, Line 19, Total. |
TPNC 73 | We found an error in the computation of the amount on Page 1, Part II, Line 6, Gross Estate Tax. |
TPNC 74 | We found an error in the computation of the amount on Page 1, Part II, Line 8, Balance. |
TPNC 76 | The amount claimed as prepaid tax with the extension of time to file on Page 1, Part 2, Line 18 was incorrect. |
TPNC 83 | We found an error in the computation of your total tax amount. |
TPNC 90 | TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer. Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt |
TPNCs and Their Messages for Form 709
(1) The following information pertains to Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Error Messages:
Note: There can be times when a TPNC 90 has a 3 digit code for Online Notice review to type.
Taxpayer Notice Code | Taxpayer Notice Statement |
|---|---|
TPNC 10 | We found an error in the computation of your taxable gifts for the current period. |
TPNC 11 | We found an error in the computation on Page 1, Part 2, of your total taxable gifts. |
TPNC 12 | We found an error in the computation of your tax on Page 1, Part 2, total taxable gifts. |
TPNC 13 | We found an error in the computation of tax on Page 1, Part 2, amount from Schedule B, total amount of taxable gifts from prior periods. |
TPNC 41 | We found an error in the computation of the Unified Credit amount. Note: For Form 709, s Gift (and Generation-Skipping Transfer) Tax Return, use this TPNC for 2011 revisions and prior ONLY. |
|
|
TPNC 43 | We found an error in the computation of the Applicable Credit amount. Note: For Form 709, s Gift (and Generation-Skipping Transfer) Tax Return, use this TPNC for 2012 revisions and subsequent. |
TPNC 48 | We found an error in the generation-skipping transfer tax computation. |
TPNC 54 | We found an error in the computation of the balance due or overpayment amount. |
TPNC 69 | We found an error in the total gift tax computation on Page 1, Part 2, Balance. |
TPNC 75 | We found an error in the computation of Page 1, Part 2, Total Credits. |
TPNC 76 | The amount claimed as prepaid tax with the extension of time to file on Page 1, Part 2, Line 18 was incorrect. |
TPNC 79 | We found an error in the computation on Schedule A, Part 4, Total Deduction Amount. |
TPNC 80 | We found an error in the computation on Schedule A, Part 4, when subtracting total deduction from total included amount of gifts. |
TPNC 81 | We found an error in the computation on Schedule A, Taxable Gifts. |
TPNC 83 | We found an error in the computation of your total tax amount. |
TPNC 88 | An error was made in the computation on Schedule A, Part 4, Total included amount of gifts. Your Unified Credit/Applicable Credit has been adjusted accordingly. |
TPNC 89 | We found a error in the computation of your Total gift tax. We have adjusted your return accordingly. |
TPNC 90 | TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer. Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt |
TPNC 91 | An error was made in computing your annual exclusion amount. Your Unified Credit/Applicable Credit has been adjusted accordingly. |
TPNC 92 | While an incomplete gift must be reported on Schedule A, it must not be included in the amount of this year’s gifts. We have adjusted your return accordingly. |
TPNC 93 | We disallowed the exclusion from your spouse’s gifts attributed to you because joint returns are not permissible when reporting gifts. This makes it necessary for you and your spouse to each file a separate form. We have adjusted your return accordingly. |
TPNC 94 | We found an error in the computation of the Balance after Unified adjustments amount on form 709, line 11. We have adjusted your return accordingly. |
TPNC 95 | The Unified/Applicable Credit cannot be used to offset Generation-Skipping tax. Therefore, we adjusted your total tax. |
TPNC 97 | We found an error in the computation on Schedule A Part 4, Total included amount of gifts. |
TPNC 98 | We disallowed the exclusion amount taken for the gifts of future interest as indicated. Gifts of future interest do not qualify for the exclusion. |
TPNC 99 | Because we did not receive a reply to our request for a listing of Donees claimed on your return, we have adjusted the number of donees and the exclusion claimed to the number of donees actually shown on your return. |
TPNCs and Their Messages for Form 709-NA
(1) The following information pertains to Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, of a Nonresident Not a Citizen of the United States.
Taxpayer Notice Code | Taxpayer Notice Statement |
|---|---|
TPNC 10 | We found an error in the computation of your taxable gifts for the current period. |
TPNC 11 | We found an error in the computation on Page 1, Part 2, of your Total Taxable Gifts. |
TPNC 12 | We found an error in the computation of tax on Page 1, Part 2, total taxable gifts. |
TPNC 13 | We found an error in the computation of tax on Page 1, Part 2, Amount from Schedule B, Total amount of taxable gifts from prior periods. |
TPNC 40 | We found an error in the computation of the balance due. |
TPNC 41 | We found an error in the computation of the Unified Credit amount. |
TPNC 42 | We found an error in the computation of the marital deduction on Schedule A. |
TPNC 48 | We found an error in the generation-skipping transfer tax computation. |
TPNC 54 | We found an error in the computation of the balance due or overpayment amount. |
TPNC 69 | We found an error in the total gift tax computation on Page 1, Part 2, Balance |
TPNC 75 | We found an error in the computation of Page 1, Part 2, Total Credits. |
TPNC 76 | The amount claimed as prepaid tax with the extension of time to file was incorrect. |
TPNC 79 | We found an error in the computation on Schedule A, Part 4, Deduction Amount |
TPNC 80 | We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts. |
TPNC 81 | We found an error in the computation on Schedule A, Part 4, Taxable Gifts. |
TPNC 83 | We found an error in the computation of your total tax amount. |
TPNC 88 | An error was made in the computation on Schedule A, Part 4, Total included amount of gifts. Your Unified Credit/Applicable Credit has been adjusted accordingly. |
TPNC 89 | We found an error in the computation of your Total gift tax. We have adjusted your return accordingly. |
TPNC 90 | TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer. Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt |
TPNC 91 | An error was made in computing your annual exclusion amount. Your Unified Credit/Applicable Credit has been adjusted accordingly. |
TPNC 92 | While a incomplete gift must be reported on Schedule A, it must not be included in the amount of this year’s gifts. We have adjusted your return accordingly. |
TPNC 93 | We disallowed the exclusion from your spouse’s gifts, attributed to you because joint returns are not permissible , when reporting gifts. This makes it necessary for you and your spouse to each file a separate form. We have adjusted your return accordingly. |
TPNC 95 | The Unified/Applicable Credit cannot be used to offset Generation-Skipping tax. Therefore, we adjusted your total tax. |
TPNC 97 | We found a error in the computation on Schedule A Part 4, Total included amount of gifts. |
TPNC 98 | We disallowed the exclusion amount taken for the gifts of future interest as indicated. Gifts of future interest do not qualify for the exclusion. |
TPNC 99 | Because we did not receive a reply to our request for a listing of Donees claimed on your return, we have adjusted the number of donees and the exclusion claimed to the number of donees actually shown on your return. |
Status Codes
(1) Records for the documents in the Error Resolution System (ERS) are controlled by Status Codes. The status is updated when the record is placed in a specific inventory.
(2) Here is a list of the status codes with a brief explanation:
Status 100, error awaiting correction. Records are in the Error Inventory.
Status 2XX, record awaiting information. Records are in the Unworkable Suspense Inventory.
Status 3XX, suspense period expired - no response. Records are in the Workable Suspense Inventory.
Status 4XX, record with information, awaiting correction. Records are in the Workable Suspense Inventory.
Status 900, Record is on the Unselected Inventory.
(3) The final two positions of the Status Code will consist of the first two positions of the AC. This will put similar work together on the Workable Suspense Inventory.
Example: Status Code 321 means Suspense period expired, no response to taxpayer correspondence.
(4) Records whose Suspense Period has expired before being activated are automatically moved from Status 2XX to Status 3XX.
Unprocessables Automated Data Processing (ADP) Returns
(1) The following information pertains to unprocessables ADP returns:
If | Then |
|---|---|
A return cannot be perfected, and it is necessary to correspond, perform in-house research or send the document to another area of the submission processing campus | Suspend the record to start the required action. |
Suspending unprocessables record | Enter CC SSPND followed by the appropriate AC. |
The AC cannot describe the required action | Attach a note of explanation to the return (use routing slip). |
The tax examiner will not be issuing a letter through IDRS |
|
Working Trails
(1) You must leave a legible "Working Trail" for those who may work with the return later. If your submission processing campus has a written "In-house Agreement" that differs from the instructions below, follow them. These procedures have been coordinated with Headquarters.
(2) Annotate the following items when making a change to the return:
Social Security Number
Tax Period
(3) Edit on the return the preparation of Letter 3024C, Math Error Explained (BMF), and Form 2275, Records Request, Charge and Recharge.
Section 01 Data, Form 706, United States Estate (and Generation-Skipping Transfer)Tax Return, General Information
(1) Section 01 has entity data, remittance, fields for codes, the IRS received date, and miscellaneous information.
(2) The remittance field cannot be changed by Error Resolution examiners. This field must be blank on non-remittance returns and all numeric on remittance returns.
(3) The message "Unrecognizable Field error - Contact Supervisor" will appear when a return has neither CCC "G" or Section 04 and there is an entry in Field 01PI (Payment Indicator).
Error Record Format Section 01
(1) The Error Record Format for Section 01 is listed as follows:
Field Designator on Form 706 | Maximum Characters | Field Name | Location |
|---|---|---|---|
RMIT> | 11 | Remittance | Green money, Page 1, Part 2, Line 20 |
01NC | 4 | Name Control Check Digit | Decedent's last name Page 1, Part 1, Box 1b |
>>>> | 4 | Name Control Underprint | Computer-Generated |
01SSN | 9 | Social Security No. | Decedent's SSN, Page 1, Part 1, Box 2 |
01DOB | 8 | Date of Birth | Page 1, Part 1, Box 4 |
01DOD | 8 | Date of Death | Page 1, Part 1, Box 5 |
>>>> | 2 | Fiscal Year Month (Gen) | Computer-Generated |
01CCC | 10 | Computer Condition Code | Upper left margin |
01RCD | 8 | Received Date | Date Stamp |
01PIC | 1 | Penalty and Interest Code | Upper right margin |
01CAF | 1 | CAF Indicator | Right margin, Page 1, Part 1, Box 6b |
01RFC | 1 | Refund Code | Error Resolution only field |
01PSN | 9 | Preparer (PTIN) | Bottom right corner, Page 1 |
01PEN | 9 | Preparer EIN | Bottom right corner, Page 1 |
01PTN | 10 | Preparer Phone Number | Bottom right corner, Page 1 |
01PI | 1 | Payment Indicator | Right margin, Page 1, Part 2, Line 19 |
01CRD | 8 | Correspondence Rec'd date | Left margin, left of Page 1, Part 2, Line 4 |
01RD> | 8 | Return Due Date | Computer-Generated |
RMIT> - Remittance
(1) This field is blank for non-remittance returns and remittance returns processed through the Remittance Processing System (RPS) system. It is a non-correctable field.
(2) The remittance amount is found on the Balance due line of a full-paid return and is shown by a green rocker. A partial paid return has the remittance amount entered in green beside the taxpayer's entry on the Balance Due Line.
Field 01NC - Name Control/Check Digit
(1) This field is transcribed from the name line in the entity portion of the return. This field must be the first four alpha characters of the decedent’s last name.
Invalid Conditions
(1) Field 01NC is invalid if:
It is blank.
The first position is not alpha.
The second, third, and fourth positions are not alpha, hyphen or blank.
There are any intervening blanks between characters.
Correction Procedures
(1) The following information pertains to correction procedures:
If | Then |
|---|---|
The name control has been transcribed incorrectly | Enter the correct name control. |
The name control is missing and cannot be found | Research using local procedures. |
The name control is found on the return or during research | Enter the correct name control in Field 01NC and on the return. |
Still unable to decide the name control | Suspend the record with AC 320 to Entity Control using 10886, Reject Routing Slip, or4227, Intra Sc Reject or Routing Slip. |
Field 01SSN - Social Security Number
(1) The SSN is a number assigned by the Social Security Administration (SSA) to identify potential Social Security contributors/recipients. The field is found on Page 1, Part 1, Box 2 of the return.
Invalid Conditions
(1) Field 01SSN is invalid if:
It is blank.
It is not all numerics.
It is less than nine - digits.
It is all zeroes or nines.
Correction Procedures
(1) The following information pertains to correction procedures:
If | Then |
|---|---|
The SSN is invalid | Search for a correct SSN on the return or attachments. |
SSN is found on return or attachment | Enter on return and Field 01SSN |
SSN Not found | Research using IDRS to obtain a valid SSN, using Namei/Names ETC. |
No SSN record is found through research | Suspend with AC 320 to Entity Control to locate a SSN or assign a temporary SSN using Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip. |
|
|
More than one SSN is found | Suspend with AC 320 for research using Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Rejecting or Routing Slip to determine correct SSN. |
Entity Control has assigned an SSN |
|
Field 01DOB - Date of Birth
(1) This field is transcribed from Page 1, Part 1, Box 4 of the return. The Date of Birth (DOB) is either blank or numeric in YYYYMMDD format.
(2) The DOB is used as a validity check on the DOD.
Field 01DOD - Date of Death
(1) This field is transcribed from Page 1, Part 1, Box 5 of the return. It is entered in YYYYMMDD format.
(2) The DOD determines the due date of the return. It also determines which tax laws and rates are in effect for the estate.
(3) The following table pertains to due dates of returns:
Exception: If the date of death is between January 1, 2010, and December 17, 2010 (inclusively); the return due date is September 19, 2011, as mandated in the Extender's Legislation (PL 111-312).
Month of Death | Month Due |
|---|---|
January | October |
February | November |
March | December |
April | January |
May | February |
June | March |
July | April |
August | May |
September | June |
October | July |
November | August |
December | September |
(4) The following table provides examples of due dates:
If | Then |
|---|---|
DOD is 01-01-2010 thru 12-17-2010 (inclusively) | Due date is 09-19-2011 |
DOD is 12-18-2010 thru 12-31-2010 | Due date is 09-30-2011. |
Date of Death | Due Date |
|---|---|
DOD is 01-31 | Due date is 10-31 of the same year. |
DOD is 02-28 | Due date is 11-28 of the same year. |
DOD is 02-29 | Due date is 11-29 of the same year. |
DOD is 03-31 | Due date is 12-31 of the same year. |
DOD is 04-30 | Due date is 01-30 of the following year. |
DOD is 05-31 | Due date is 02-28 or 02-29 of the following year. |
DOD is 06-30 | Due date is 03-30 of the following year. |
DOD is 07-31 | Due date is 04-30 of the following year. |
DOD is 08-31 | Due date is 05-31 of the following year. |
DOD is 09-30 | Due date is 06-30- of the following year. |
DOD is 10-31 | Due date is 07-31 of the following year. |
DOD is 11-30 | Due date is 08-30 of the following year. |
DOD is 12-31 | Due date is 09-30 of the following year. |
Note: IRM 3.12.263.2 (7) When a field error sets due to the date of death falling in the current calendar year (2023), suspend with Action Code 480 and hold until further instructions are issued by Submission Processing Headquarters Analyst to show the Basic Exclusion tables have been updated per the Revenue Procedure 20XX-57 for that calendar year.
Invalid Conditions
(1) Field 01DOD is invalid if:
It is blank.
It is not all numerics.
The month is not 01-12.
The day is not valid for the month.
Not in YYYYMMDD format.
Correction Procedures
(1) Check for coding or transcription errors and correct as needed, taking the following action:
If | Then |
|---|---|
The DOD is blank, incomplete, or illegible on the return | Check attachments or research CC INOLE for DOD. |
The DOD cannot be found | Suspend with AC 211 and attach appropriate Correspondence Action Sheet. |
A reply to correspondence is not received | The Reject function must enter a date nine months earlier than the IRS received date. |
Field 01CCC - Computer Condition Codes (CCC’s)
(1) CCC’s tell the computer what to do when certain conditions are met. For example, CCC "R" stops the computer from calculating a delinquency penalty when the taxpayer presents reasonable cause for filing the return late.
(2) Since these codes tell the computer what to do, they also post to the Master File so that people looking at the file can tell what actions were taken on the return.
(3) CCC’s are transcribed from the upper left - hand corner of the return. The following CCC’s will be used for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.
Invalid Conditions
(1) Field 01CCC is invalid if:
Any letter or number other than the following is entered: B, D, G, L, O, R, W, X, Y, 3, and/or 7.
CCC "G" is present with any other CCC except "W".
CCC’s "D", "R", and "7" are all present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) When the codes entered on the return are illegible or invalid, check the return to decide the correct code(s) and enter on the screen using the If/Then chart below.
If | Then |
|---|---|
Any other CCC’s are present with "G" and "W" and/or "3" | Delete the other codes if the "G" is needed. |
CCC "G" is not needed | Delete it and leave the other codes. Review all sections and input data where necessary. |
CCC’s "D" and "R" are present with CCC "7" | decide which is correct and delete the incorrect CCC. |
(3) Since Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, has 11 CCC’s, and of these only a maximum of six can be valid at the same time, you will not see more than 10 codes. If you do, delete any invalid codes. Check the remaining codes to ensure that no other invalid conditions are met and delete any other invalid codes based on the instructions found in this paragraph.
CCC "B"
(1) B - Victims of Terrorism Relief - Enter CCC "B" when the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is annotated at the top of Page 1 of the return with either references to "Section 2201", or has any indications the return is in accordance with legislation impacting victims of terrorist attacks April 19, 1995 (Oklahoma City bombing), September 11, 2001 (World Trade Center bombing), or references to deaths resulting from anthrax that occurred on or after September 11, 2001, and before January 1, 2002.
CCC "D"
(1) CCC "D" is no longer edited by Code and Edit or ERS when a reason is given for failure to pay taxes timely, see exception. Issue a 1382C Letter (If Code & Edit has not done so) and continue processing the return.
(2) Exception: Secured internally prepared returns. For secured returns, e.g., returns notated with “ Process as Original” with a attached Form 13133 or Prepared returns (e.g., returns notated "6020(b)" or "“SFR“" ( Substitute for Return)”, enter the applicable CCC as indicated on the return and/or attached form. If one of the exceptions apply edit the CCC Code listed on the return.
CCC "G"
(1) G - Amended Return - CCC "G" must be entered on returns marked "Amended", "Superseding", "Duplicate", "Corrected", "Supplemental", etc. CCC "W" and/or "3" can be used with a CCC "G".
Note: Taxpayers may send a copy of the front page of their return with a payment. These copies may get numbered and processed. If correspondence is needed for missing information and the return is marked "COPY", research BMFOLI/BMFOLT and/or BRTVU for duplicate returns.
CCC "L"
(1) L - Treaty Based Positions.
(2) The filer has written IRC 6114, Elections on the return or Form 8833, Treaty-Based Return Position Disclosure Under IRC Section 6114 or IRC Section 7701(b) elections, is attached to the return, Enter CCC "L".
CCC "O"
(1) O - Module Freeze.
(2) A completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR) is attached to the return.
Enter CCC "O". If the refund is $1,000,000 or more, enter a "1" in Field 01RFC.
These show that a pre-settlement manual refund was made. (The freeze is released by posting TC 840.)
(3) The Refund Code of "1" is entered by Error Resolution in Field 01RFC to show that a refund of $1,000,000 or more has been issued.
Note: Field 01RFC is an "Error Resolution Only" input field.
(4) Due to the large amounts of interest we (the IRS) would pay if a refund of this size is not handled timely, these returns will have the refund processed manually.
Note: See IRM 3.12.263.3.2.2, Refund Returns (45-day) Jeopardy and large dollar returns, to ensure the refund is issued timely.
CCC "R"
(1) CCC "R" is no longer edited by Code & Edit or ERS when a reason is given for a delay in filing timely, see exceptions. Issue Letter 1382C (If Code & Edit has not done so) and continue processing the return.
(2) Exception: Secured internally prepared returns. For secured returns ( e.g., returns notated with “ Process as Original”) with a attached Form 13133) or Prepared returns (e.g., returns notated "6020b" or "“SFR“" ( Substitute for Return), enter the applicable CCC as indicated on the return and/or attached form.
CCC "W"
(1) W - Cleared by Statute - The following instructions pertain to returns which were reviewed and cleared by Statute Control.
If | Then |
|---|---|
The return has been stamped "Cleared by Statute" |
|
CCC "X"
(1) X - Return Settlement Frozen - The following instructions describe the application and correction of CCC "X" (Return Settlement Frozen).
If | Then |
|---|---|
Taxpayer shows that excess remittance with return or overpayment be applied to another account | Enter CCC "X". |
CCC "Y"
(1) CCC "Y" is used to denote Assistance Needed/Special Handling Returns, Combat Zone Returns, Early-Filed Returns, and Gift Tax Paid.
(2) Combat Zone Returns - returns of citizens or residents of the United States who were killed in action or who died as a result of wounds, disease or injury received while serving in a Combat Zone. The decedent is entitled to lower estate tax per IRC 2201 and IRC 2011(d). The tentative tax equals 125 percent of the maximum allowable state death tax credit. All other credits against estate tax (including the Unified/Applicable Credit) apply to these returns.
(3) These estates have their own tax schedule, so Error Resolution must compute tax manually.
CCC "3"
(1) "3" - No Reply to Correspondence - Suppress Credit Interest. Enter this code to suppress credit interest from being generated when no reply is received for correspondence sent to the taxpayer.
CCC "7"
(1) CCC "7" -CCC "7" is no longer edited by Code & Edit or ERS for REASONABLE CAUSE DENIED when a statement is attached for a delay in filing timely or failing to pay timely. IRM 3.12.263.4.7.4 IRM 3.12.263.4.7.8
Note: Code and ERS will no longer determine if a reasonable cause statement is accepted or rejected.
Note: The Cincinnati Compliance Services, Estate and Gift Tax Campus Operation, will make all determinations of reasonable cause statements.
Note: Beginning with Form 4868, Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes, filed for estate returns due after July 25, 2001, an executor may apply for an automatic six month extension of time to file Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, if the Executor files Form 4768, Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes by checking the designated box and completing the form as instructed. An extension of time to file does not extend the time to pay. Take the following action listed in the If/Then Chart.
If | Then |
|---|---|
CCC’s "D" and "R" are present | Do not enter CCC "7" if both are present. However, CCC "7" may be present with either CCC "D"OR"R", but not with both codes simultaneously. Use Letter 854C, Penalty Waiver or Abatement Disallowed/Appeals Procedure Explained to notify the taxpayer of the denial. |
Field 01RCD - Received Date
(1) The IRS received date is used to decide if penalties such as failure to file or pay apply, and if so, helps to decide the amount of the penalty. It is also used to provide certain validity checks. This field is transcribed from the stamped or edited date in the center of Page 1 of Form 706. The IRS received date is entered in YYYYMMDD format and must be present on all Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.
Invalid Conditions
(1) Field 01RCD is invalid if:
It is not present.
It is not all numerics.
The month is not 01-12.
The day is not valid for the month.
It is not in YYYYMMDD format.
It is prior to the ADP date (January 1, 1962).
The IRS received date is after the processing date.
Correction Procedures
(1) Check for coding or transcription errors and correct as needed.
(2) The IRS received date: This date must be present on all returns. If the date has not been stamped or edited on the first page of the return, research return and attachments and see procedures below. Enter it in YYYYMMDD format. Caution must be taken to decide when a return was filed or became processable. decide received date from return or attachments in the following priority:
The IRS date stamp
Note: Earliest date stamp by Submission Processing Campus, Area Office, U.S. Consulate, or Revenue officer.
Earliest legible U.S. Post Office, Private Delivery Service, or foreign postmark.
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 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Service Center Automated Mail Processing System (SCAMPS) digital date.
Revenue Officer’s or other IRS official’s signature date.
Signature date, if within the current year (unless other information shows signature date is invalid).
Julian date minus 10 days
Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ despite Saturday, Sunday or holiday extension dates. If the form is date stamped ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If that date shows legal timely mailing without regard to a due date falling on Saturday, Sunday or holidays, change the IRS received date to the postmark date.
Note: If both U.S. Postal Service and private meter marks are present, honor the U.S. Postal Service marks.
If | Then |
|---|---|
More than one date is stamped | Use only the earliest date. |
A return has been identified as unprocessables and the taxpayer has been contacted for more information | Do not change the original IRS received date, but also enter correspondence received date (Field 01CRD). |
(3) Private Delivery Services - A Private Delivery Service (PDS) is a business which delivers packages. The timely mailing as timely filing rule now applies to some PDS’s. When the rule applies to a PDS, it is referred to as an IRS designated PDS. Only use marks from a designated PDS to decide the IRS received date.
Note: Private delivery services do not deliver to PO boxes. Taxpayers must use the U.S. Postal Service to mail any item(s) to an IRS PO Box address.
Field 01PIC - Penalty and Interest Code
(1) The Penalty and Interest Code is transcribed from the top right - hand corner of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Field 01PIC must be coded "1"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and displays an amount for precomputed penalty and interest.
Field 01CAF - CAF Indicator
(1) Editing of CAF codes is no longer required.
(2) Form 2848, Power of Attorney and Declaration of Representative (POA), and Form 8821, Tax Information Authorization (TIA), are forwarded to the Central Authorization File Unit (CAF) by the Code and Edit function.
Correction Procedures
(1) If a code is present on the screen, clear Field 01CAF.
(2) Leave a "limited" POA attached to the return. A "limited" POA restricts the authorization to the preparation of the return to which it is attached.
(3) Original documents, photocopies, or documents submitted by facsimile transmission (FAX) are acceptable for processing.
(4) The Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization, must contain the following information:
The name, SSN and address of the taxpayer
The name and address of the designated representative Power of Attorney (POA) or appointed Tax Information Authorization (TIA)
The type of return (individual, corporate, etc.) and the tax form number
The tax year(s) or period(s)
The taxpayer's signature and date of signature
For Form 2848, Power of Attorney and Declaration of Representative, only, a signed and dated declaration of good standing from the representative
Note: You may not send refunds to appointees named on a Tax Information Authorization(TIA). Route the authorization to the submission processing campus CAF function for further processing.
(5) If the POA/TIA is received, not attached to any return or document, route it to the Submission Processing Campus CAF function. If the authorization is attached to the correspondence, review the correspondence to decide if other requests were made. If they were, photocopy the correspondence and send the copy along with the authorization to the CAF function for processing. If not, send correspondence and authorization to the CAF function for processing.
(6) Do not detach and send POAs/TIAs filed for specific issues unless the document authorizes recognition for a return besides the specific issue. In that case, a copy of the POA/TIA must be sent to the CAF function to input the return portion by the CAF system. Examples of specific issues include but are not limited to the following:
Form 843, Claim for a Refund and Request for Abatement.
Form SS-4, Application for Employer Identification Number
(7) "General Powers of Attorney" or "Durable Powers of Attorney" do not contain sufficient information to process on CAF and will be retained in the case file or left attached to the related return. However, if a general or durable power of attorney is submitted with a completed Form 2848 Power of Attorney and Declaration of Representative, (a transmittal power of attorney, send both forms to the CAF function for processing).
Field 01RFC - Refund Code (Error Resolution Only Input)
(1) The Refund Code of "1" is entered only by Error Resolution in Field 01RFC to show that a refund of $10,000,000 or more has been issued.
Note: Enter CCC "O" in Field 01CCC when either a completed, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGA), are attached to the return, if this has not already been done. The entries in these fields show that a pre-settlement manual refund was made. (The freeze is released by posting a Transaction Code "840".) See IRM 3.12.263.3.2.2, Refund Returns (45 - day jeopardy and large dollar returns) to ensure the refund is issued timely.
(2) Due to the large amounts of interest we the (IRS) would pay if a refund of this size is not handled timely, these returns will have the refund processed manually.
Field 01PSN-Preparer's Tax Identification Number (PTIN)
(1) The Preparer's SSN (2009 and prior revisions) or Preparer's Tax Identification Number (PTIN) is located to the right of the Preparer's Signature at the bottom right corner of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, (Page 1).
(2) The Preparer's SSN must be a nine - digit numeric character. The SSN cannot be all zeros or nines.
(3) A PTIN is a valid entry in the Preparer's Social Security Number area at the bottom of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. The PTIN is an eight digit number preceded by the alpha "P" (e.g., PXXXXXXXX).
(4) Delete the Preparer's SSN or PTIN if it is invalid.
Field 01PEN-Firm's EIN
(1) The Firm's EIN (EIN for 2009 and prior revisions) is located below the Preparer's PTIN box (Preparer's SSN or PTIN box for 2009 and prior revisions) at the bottom right corner of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, (Page 1).
(2) The Firm's EIN must be a nine - digit numeric character. The EIN cannot be all zeros or nines.
(3) Delete the Preparer's EIN if it is invalid.
Field 01PTN-Preparer Phone Number
(1) The Paid Preparer's Phone Number is located below the Firm's EIN (EIN for 2009 and prior revisions) at the bottom right corner of Form 706, (Page 1).
(2) No action is required on amended returns.
(3) If a complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, edit to the "Phone no." line.
(4) If a complete Paid Preparer's Phone Number is not located or the number is illegible, delete the incomplete or illegible phone number.
Field 01PI - Payment Indicator
(1) This field is transcribed from the bottom right margin of Page 1, Part 2, Line 20 of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (This information was transcribed from Line 25 on returns for Tax Years 2002 through 2004, Line 27 on returns for Tax Years 1998 through 2001 and from Line 28 on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for 1997 and prior years.)
(2) This indicator shows when installments and/or deferments are granted, and/or when U.S. Treasury bonds are submitted in payment of the estate tax.
Note: Currently, only PI codes "0" and "1" are being used. See IRM 3.12.263.4.15.2, Field 01PI-Payment Indicator Correction Procedures.
Invalid Conditions
(1) Field 01PI is invalid if it is blank (other than for valid "G" coded returns), or the field contains anything but a 0 or 1 (2, 3, 4, 5, 6, or 7 for tax years 2004 and prior).
Correction Procedures
(1) PI Codes are entered on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return in the following priority:
For balance due returns, use a "1" code if the taxpayer has checked the "Yes" box for Section 6166 or 6163 on Page 2, Part 3, Line 3, Line 4, or has an attachment requesting deferment or installments citing these Sections.
For refund/zero liability returns, or for Balance Due returns on which the taxpayer is not requesting deferment of installments, use a "0" (zero) code.
Note: The only PI codes now used will be "0" and "1".
Field 01CRD - Correspondence Received Date
(1) When needed the correspondence received date is edited in YYYYMMDD format.
(2) The 45-day interest free period for processing refund returns does not begin until we receive the return in a processable format. If we correspond for missing information, the correspondence received date must be input to the Master File for the purpose of computing credit interest.
Invalid Conditions
(1) Field 01CRD is invalid if:
It is not in YYYYMMDD format.
It is not numeric.
The month is not 01-12.
The day is not valid for the month.
01CRD is not greater than the IRS received date.
01CRD is not greater than the return due date.
01CRD is greater than the processing date.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed using the following instructions:
If | Then | |
|---|---|---|
No reply or the correspondence was undeliverable | Enter CCC "3" in Field 01CCC. Note: This will suppress credit interest from being generated. | |
Entity Control has assigned an SSN to the return | If Entity Control has edited an "A" or "E" in left margin of the return, enter the Entity Assignment Date in Field 01CRD if it is later than the IRS received date and return due date. | |
The taxpayer replies to our request for missing information | Enter the correspondence received date in Field 01CRD if the correspondence was necessary and was received after the return due date. See IRM 3.12.38.19.8, Determining the correspondence receive date. | |
Field 01RD> - Return Due Date
(1) This is a computer-generated field that calculates the return due date as nine months after the DOD in YYYYMMDD format.
Exception: If the date of death is between January 1, 2010, and December 17, 2010 (inclusively); the return due date is September 19, 2011, as mandated in the Extender's Legislation (PL 111-312).
(2) This field is used to decide if a return is filed timely. If the return is filed late, it is used to calculate any applicable penalties and interest.
Section 02 Data, Form 706, United States Estate (and Generation - Skipping Transfer)Tax Return, General Information
(1) Section 02 field designators, line numbers, field lengths and titles are listed below. It is transcribed in dollars and cents or dollars only, whichever is applicable. Field 0203C may be positive or zero (0). Section 02 cannot be present on a "G" coded amended return (delete if present).
Processing Field Errors
(1) Correct transcription errors if the field is not entirely numeric.
(2) If the money amounts on a return exceed the maximum field length allowable, take the following action:
Enter the maximum amount allowable on the original return. Recompute the tax data and enter the corrected amount(s) on the screen display and the return. DO NOT SEND A TAXPAYER NOTICE CODE to the taxpayer.
Write on the original return, "Dummy Return prepared due to overflow document".
Prepare a "Dummy Return" by computing and entering the remaining overflow money amount(s) for the correct fields. On the top of the return write "Prepared from Overflow Return"; write the entity data and DLN from the original return; enter CCC "G" in Field 01CCC; and write "Signature on Original Return" in the signature area.
Attach routing slip to the completed "Dummy Return" and send to Receipt and Control to have the "Dummy Return" numbered and processed.
Error Record Format - Section 02
(1) The Error Record Format for Section 02 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
0201 | 12 | Total Gross Estate | Page 1, Part 2, Line 1 |
0202 | 12 | Tentative Total Allowable Deductions | Page 1, Part 2, Line 2 |
0203 A | 12 | Tentative Taxable Estate | Page 1, Part 2, Line 3a |
>>>> | 12 | Tentative Taxable Estate |
|
0203 B | 12 | State Death Tax Deduction | Page 1, Part 2, Line 3b |
0203 C | 12 | Taxable Estate | Page 1, Part 2, Line 3c |
>>>> | 12 | Taxable Estate |
|
0204 | 12 | Adjusted Taxable Gifts | Page 1, Part 2, Line 4 |
0205 | 12 | Net Taxable Estate | Page 1, Part 2, Line 5 |
>>>> | 12 | Net Taxable Estate |
|
0206 | 12 | Tentative Tax | Page 1, Part 2, Line 6 |
>>>> | 12 | Tentative Tax |
|
02GTT | 12 | Gross Tax Tentative | Page 1, Part 2, Line 7a (Tax Years 2001 and prior) |
02NTT | 12 | Net Tax Tentative | Page 1, Part 2, Line 7b (Tax Years 2001 and prior) |
>>>> | 12 | Net Tax Tentative |
|
02TNT | 12 | Total Net Tax Tentative | Page 1, Part 2, Line 7c (Tax Years 2001 and prior) |
>>>> | 12 | Total Net Tax Tentative |
|
02TTT | 12 | Total Transfer Taxes Tentative | Page 1, Part 2, Line 8 (Tax Years 2001 and prior) |
>>>> | 12 | Total Transfer Taxes Tentative |
|
0207 | 12 | Total Gift tax paid or payable | Page 1, Part 2, Line 7 |
0208 | 12 | Gross Estate Tax | Page 1, Part 2, Line 8 |
>>>> | 12 | Gross Estate Tax |
|
0209 | 12 | Unified Credit (2011 and prior revisions) | Page 1, Part 2, Line 9 |
>>>> | 12 | Unified Credit (2011 and prior revisions) |
|
0209A | 15 | Basic Exclusion Amount | Page 1, Part 2, Line 9a |
0209B | 15 | DSUE Amount | Page 1, Part 2, Line 9b |
0209C | 15 | Restored Exclusion Amount | Page 1, Part 2, Line 9c |
>>>> | 15 | Applicable Restored Exclusion Amount |
|
0209D | 15 | Applicable Exclusion Amount | Page 1, Part 2, Line 9d |
>>>> | 15 | Applicable Exclusion Amount |
|
0209E | 15 | Applicable Credit Amount | Page 1, Part 2, Line 9E |
>>>> | 15 | Applicable Credit Amount |
|
0210 | 12 | Adjustment to Unified/Applicable Credit | Page 1, Part 2, Line 10 |
0211 | 12 | Allowable Unified/Applicable Credit | Page 1, Part 2, Line 11 |
>>>> | 12 | Allowable Unified/Applicable Credit |
|
0212 | 12 | Balance After Unified/Applicable Adjustment | Page 1, Part 2, Line 12 |
>>>> | 12 | Balance After Unified/Applicable Adjustment |
|
02TBA | 12 | State Death Tax Credit (Table B amount) | Page 1, Part 2, Line 13A (Tax Years 2002-2004) Table B figure preceding |
>>>> | 12 | State Death Tax Credit |
|
02SDC | 12 | State Death Tax Credit | Page 1, Part 2, Line 13B (Tax Years 2002-2004) |
>>>> | 12 | State Death Tax Credit |
|
02BSD | 12 | Balance After State Death Tax Credit | Page 1, Part 2, Line 14 (Tax Years 2002-2004) |
>>>> | 12 | Balance After State Death Tax Credit |
|
Field 0201 - Total Gross Estate
(1) This field is transcribed from Page 1, Part 2, Line 1, of the return and is verified by Code and Edit tax examiners.
(2) It is transferred from Page 3, Part 5, Item number 13, of the Recapitulation schedule.
(3) The amount transcribed will be either the taxpayer's amount or the examiner's corrected amount. It must be entered in dollars and cents or dollars only, whichever is applicable.
(4) This line shows the total amount of assets owned by the decedent at death. After deductions are taken and certain gifts given during life are added back, this amount provides the basis upon which the estate tax (before credits or other adjustments) is calculated.
Invalid Conditions
(1) Field 0201 is invalid if it is not all numeric or exceeds $9,999,999,999.99.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) If tax truly exceeds $9,999,999,999.99 SSPND with AC610.
Suspense Procedures
(1) Enter the maximum amount allowable on the original return. Recompute the tax data and enter the correct amount(s) in the fields. (Do Not Send Taxpayer Notice Code).
(2) Annotate on the original return "Dummy Return prepared due to overflow documentation."
(3) Prepare "Dummy Return" by computing and entering the remaining overflow amount(s) for the appropriate fields.
(4) On top of the "Dummy Return" write "Prepared from Overflow Return" enter the data from the original returns CCC "G" in the signature area write "Signature on Original Return". Put the DLN from the original return on the bottom of the dummy return. Attach routing slip to the complete "Dummy Return" send to batching for numbering and processing.
Field 0202 - Total Allowable Deductions
(1) This field is transcribed from Page 1, Part 2, Line 2 of the return and is verified by Code and Edit examiners. It is transferred from Page 3, Part 5, Item number 24 of the return. The amount transcribed will be either the taxpayer's amount or the examiner's corrected amounts.
(2) After allowable deductions are taken and certain gifts given during life are added back, this amount provides the basis upon which the estate tax (before credits or other adjustments) is calculated.
Field 0203A - Tentative Taxable Estate
(1) This field is transcribed from Page 1, Part 2, Line 3a of the return. It is computed by subtracting Page 1, Part 2, Line 2 from Line 1 (Fields 0202 and 0201). This field can be positive or zero.
Field 0203B - State Death Tax Deduction
(1) This field is transcribed from Page 1, Part 2, Line 3b of the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
(2) The state death tax credit for taxpayers’ dying after December 31, 2004 was repealed. In 2005 the State Death Tax Deduction against the value of the gross estate replaced the state death tax credit.
Field 0203C - Taxable Estate
(1) This field is transcribed from Page 1, Part 2, Line 3c of the return. It is computed by subtracting Page 1, Part 2, Line 3b from Line 3a (Fields 0203B and 0203A). This field can be positive or zero.
(2) This is the amount on which, after certain gifts given during life are added back, the estate tax (before credits or other adjustments) is calculated.
Field 0204 - Adjusted Taxable Gifts
(1) This field is transcribed from Page 1, Part 2, Line 4 of the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
(2) Estate and gift taxes have a unified tax structure. Tax is calculated on assets given as gifts after December 31, 1976, as well as assets owned at death. Therefore, those gifts not excludable under the Internal Revenue Code must be added to the taxable estate to decide the amount upon which estate tax can be imposed.
Field 0205 - Net Taxable Estate
(1) This field is transcribed from Page 1, Part 2, Line 5 of the return. It is computed by adding Page 1, Part 2, Lines 3 C and 4 (Fields 0203 C and 0204).
(2) This is the amount on which the tentative tax is calculated.
Field 0206 - Tentative Tax
(1) This field is transcribed from Page 1, Part 2, Line 6. The computer figures the tax in this field by using the amount in Net Taxable Estate Computer and Tax Table A on Page 4 of the instructions.
(2) This is the basic estate tax, subject to adjustments.
Field 0207 - Total Gift Tax Paid or Payable
(1) This field is transcribed from Page 1, Part 2, Line 7. It is the total amount of gift tax paid or payable on gifts made after December 31, 1976.
(2) Taxable gifts made after December 31, 1976, are taken into account in computing the estate tax upon death. The gift and estate taxes are not separate taxes. Rather, they are designed to impose a tax or transfer of assets, whether made during life or upon death. This line gives a credit against estate tax for gift taxes payable. Were this not so, an individual would have to pay tax on the gift twice, once when they made the gift and again at death.
Field 0208 - Gross Estate Tax
(1) This field is transcribed from Page 1, Part 2, Line 8 (Field 0208). It is computed by subtracting Page 1, Part 2, Line 7 from Line 6 (Fields 0207 and 0206).
(2) See IRM 3.12.263.5.11, Field 0207- Aggregate Gift Tax, for the reasons this field allows gift taxes paid to be subtracted from estate tax.
Field 0209 - Unified Credit (2011 and prior revisions)
(1) This field is transcribed from (2011 and prior revisions) Page 1, Part 2, Line 9 (Field 0209). The computer will math verify this field by using the DOD (Field 01DOD) and the Unified Credit amounts.
(2) The Unified Credit is similar to the standard deduction or personal exemptions allowed on an individual income tax return. Individuals do not pay income tax on income that is less than the total amount of the standard deduction or personal exemptions. Nor do they pay estate or gift taxes on gifts or bequests whose total tax is less than the Unified Credit. There are 2 differences between the Unified Credit and the standard deduction/personal exemption. First the Unified Credit is a credit against tax, not a deduction from income or assets. The credit is subtracted against the estate tax, not the total amount of the estate. Second, the Unified Credit is much larger than the standard deduction/personal exemption.
Note: If the amount in Field 0209 (Unified Credit - 2011 and prior returns) is lower than the maximum amount of Unified Credit allowed for that year, the taxpayer may have filed a Schedule T (Qualified Family-Owned Business Interest (i.e., QFOBI). If a Schedule T was filed, or if Line 24 (Page 3, Part 5 (Recapitulation), Form 706) contains an entry, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
*2011 entries for Field 0209 (Unified Credit - 2011 and prior returns) can be greater than the amount from the table's middle column because of the Portability election.
** For 2012 and subsequent years, Field 0209A (Basic Exclusion Amount) must equal the amount on the table's right column. Field 0209E (Applicable Credit Amount) may be greater than the amount from the table's middle column because of the Portability election
Field 0209A - Basic Exclusion Amount
(1) This field is transcribed from Page 1, Part 2, Line 9a and is valid for DOD in 2012 and subsequent.
Invalid Conditions
(1) Field 0209A is invalid if it is not all numeric or exceeds $9,999,999,999.99. If 0209A exceeds that amount then both 0209A and 01DOD are set to error.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed. If 0209A exceeds that amount then 0209A and 01DOD are set to error, change 0209A to match the amount for the DOD.
Example: If taxpayer died in 2022 but reported a basic exclusion of $12,920,000 on the return. Coding and transcription would be correct but the taxpayer would be in error.
(2) Basic Exclusion Amounts for DOD for tax years 2024 through 2015 are below.
Tax Year | Exclusion Amount |
|---|---|
2024 | $13,610,000 |
2023 | $12,920,000 |
2022 | $12,060,000 |
2021 | $11,700,000 |
2020 | $11,580,000 |
2019 | $11,400,000 |
2018 | $11,180,000 |
2017 | $5,490,000 |
2016 | $5,450,000 |
2015 | $5,430,000 |
Field 0209B - DSUE Amount
(1) This field is transcribed from Page 1, Part 2, Line 9b and is valid for Date of Death in 2012 and subsequent revisions of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.
(2) If the decedent had a spouse who died on or after January 1, 2011, whose estate did not use all of its applicable exclusion against gift or estate tax liability, a Deceased Spousal Unused Exclusion (DSUE) amount may be available for use by the decedent's estate. If the predeceased spouse died in 2011, the DSUE amount was calculated and attached to the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. If the predeceased spouse died in 2012 or after, this amount is found in Part 6, Section C of the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, filed by the estate of the decedent's predeceased spouse. The amount to be entered on line 9b is calculated in Part 6, Section D.
Field 0209C - Restored Exclusion Amount
(1) This field is transcribed from Page 1, Part 2, Line 9c and is valid for DOD in 201110 and Later.
Field 0209D - Applicable Exclusion Amount
(1) This field is transcribed from Page 1, Part 2, Line 9d and is valid for DOD in 2012 and subsequent.
Field 0209E - Allowable Unified/Applicable Credit Amount
(1) This field is transcribed from Page 1, Part 2, Line 9E
Unified/Applicable Credit Table
(1) The Unified/Applicable Credit for the following years is:
Year | Applicable Credit Amount | Basic Exclusion Amount |
|---|---|---|
2024 | $5,389,800 | $13,610,000 |
2023 | $5,113,800 | $12,920,000 |
2022 | $4,769,800 | $12,060,000 |
2021 | $4,625,800 | $11,700,000 |
2020 | $4,577,800 | $11,580,000 |
2019 | $4,505,800 | $11,400,000 |
2018 | $4,417,800 | $11,180,000 |
2017 | $2,141,800 | $5,490,000 |
2016 | $2,125,800 | $5,450,000 |
2015 | $2,117,800 | $5,430,000 |
2014 | $2,081,800 | $5,340,000 |
2013 | $2,045,800 | $5,250,000 |
2012 | $1,772,800 | $5,120,000 |
2011 and 2010 | $1,730,800 | $5,000,000 |
2002 through 2009 | $345,800 | $1,000,000 |
2000 and 2001 | $220,550 | $675,000 |
1999 | $211,300 | $650,000 |
1998 | $202,050 | $625,000 |
1987 through 1997 | $192,800 | $600,000 |
Note: If the amount in Field 0209 (Unified Credit - 2011 and prior returns) is lower than the maximum amount of Unified Credit allowed for that year, the taxpayer may have filed a Schedule T (Qualified Family-Owned Business Interest (i.e., QFOBI). If a Schedule T was filed, or if Line 24 (Page 3, Part 5 (Recapitulation), Form 706) contains an entry, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
*2011 entries for Field 0209 (Unified Credit - 2011 and prior returns) can be greater than the amount from the table's middle column because of the Portability election.
** For 2012 and subsequent years, Field 0209A (Basic Exclusion Amount) must equal the amount on the table's right column. Field 0209E (Applicable Credit Amount) may be greater than the amount from the table's middle column because of the Portability election.
Field 0210 - Adjustment to Unified/Applicable Credit
(1) This "dual use" field is transcribed from Page 1, Part 2, Line 10. The maximum allowable credit is $6,000 for this field. "Dual use" meaning either term will be correct for programming purposes.
(2) At the time the current Unified/Applicable Credit system was created, Congress provided that the taxpayer's use of the former gift tax exemption for gifts made between September 8 and December 31, 1976, would result in an adjustment to the Unified/Applicable Credit applicable to the taxpayer's transfers after 1976 (reduction in Unified/Applicable Credit is 20 percent of exemption claimed).
Field 0211 - Allowable Unified/Applicable Credit Amount
(1) This "dual use" field is transcribed from Page 1, Part 2, Line 11. It is computed by subtracting Page 1, Part 2, Line 10 from Line 9e (Line 9 for 2011 and prior revisions) (Fields 0210 and 0209 e).
(2) At the time the Applicable Credit was created, Congress provided that the taxpayer's use of the former gift tax exemption for gifts made between September 8, and December 31, 1976, would result in an adjustment to the Applicable Credit applicable to the taxpayer's transfers after 1976.
Field 0212 - Balance after Unified/Applicable Adjustment
(1) This field is transcribed from Page 1, Part 2, Line 12. It is computed by subtracting Page 1, Part 2, Line 11 from Line 8 (Fields 0211 and 0208).
(2) This field allows the Unified/Applicable Credit, as adjusted, to be subtracted from the estate tax.
Field 02TBA - Table B State Death Credit Tax
(1) This field is only used for returns with a DOD prior to 2005. Line 13 (Field 02TBA) was deleted along with former Line 14 (Field 02BSD) after tax year 2004.
(2) This field is transcribed from the dotted line to the right of the arrow on Line 13 ("Table B" amount) Page 1, Part 2, Line 13A of the (Tax Years 2002 through 2004) return. This field is based on the tax from Table B on the Line 3 (Taxable Estate) amount. (This dotted line first appeared on the revision of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for Tax Year 2002 as a means of reducing the amount of state death tax allowed.)
(3) Most states impose some sort of tax on assets transferred at death. This can take the form of an estate tax (the estate pays tax on assets) or an inheritance tax (the heirs pay tax on what they receive), or both. A credit is allowed on these taxes paid against the federal estate tax up to a certain percentage limitation.
(4) On June 7, 2001, the President signed into law Pub. L. No. 107-16, 115 Stat. 38 (2001), entitled, "The Economic Growth and Tax Relief and Reconciliation Act of 2001", made changes to the Estate and Gift Tax Program. This legislation phased out the Estate at a maximum rate 35 percent after 2009 and repealed the State Death Tax Credit in 2005. The State Death Tax Credit is reduced as follows:
25 percent reduction (for decedent’s dying during 2002)
50 percent reduction (for decedent’s dying during 2003)
75 percent reduction (for decedent’s dying during 2004)
0 percent reduction (for decedent’s dying during 2005).
Note: State Death Taxes Paid are now claimed as a deduction on Schedule K.
Field 02SDC - State Death Tax Credit
(1) This field is only used for returns with a DOD prior to 2005. Line 13 (Field 02SDC) was deleted along with Line 14 (Field 02BSD) after Tax Year 2004.
(2) This field is transcribed from Page 1, Part 2, Line 13 (Tax Years 2002 through 2004) of the return. (This line is the old Line 15 of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, to assist in calculating the decrease in (and eventual repeal of) the State Death Tax Credit, based upon Section 531 of the Economic Growth and Tax Relief Reconciliation Act of 2001.)
(3) The State Death Tax Credit is being reduced as follows:
25 percent reduction (for decedent’s dying during 2002)
50 percent reduction (for decedent’s dying during 2003)
75 percent reduction (for decedent’s dying during 2004)
Finally, repealed (for decedent’s dying during 2005)
Field 02BSD - Balance after State Death Tax Credit
(1) This field is only used for returns with a DOD prior to 2005. Line 14 (Field 02BSD) was deleted along with Line 13 (Fields 02TBA and 02SDC) after Tax Year 2004.
(2) This field is transcribed from Page 1, Part 2, Line 14 (Tax Years 2002 through 2004) of the return. It is computed by subtracting Page 1, Part 2, Line 13 from Line 12 (Fields 02TBA and 0212).
(3) Every state imposes some sort of tax on assets transferred at death. This can take the form of an estate tax (the estate pays tax on assets) or an inheritance tax (the heirs pay tax on what they receive), or both. A credit is allowed on these taxes paid against the federal estate tax up to certain percentage limitations. This field does the math to subtract the credit from the estate tax.
Field 02GTT - Gross Tax Tentative
(1) This field is only used on returns dated prior to Tax Year 2002. Line 7a was deleted, along with former Lines 7b, 7c, and 8 (Fields 02NTT, 02TNT, and 02TTT, respectively) after Tax Year 2001.
(2) This field is transcribed from Page 1, Part 2, Line 7a of the (Tax Year 2001 and prior year) return. If Page 1, Part 2, Line 5 (Field 0205) exceeds $10,000,000, it shows the lesser of Page 1, Part 2, Line 5 (Field 0205) or the applicable phase out range (see below). This field is bypassed if Page 1, Line 5 (Field 0205) is $10,000,000 or less.
(3) Prior to 2002, the benefits of the Unified Credit and taxes of less than the maximum tax were phased out for estates of more than $10,000,000.
(4) Depending on the maximum tax and Unified Credit in effect for the year of death, the phase out range changes. The phase out range ends at $17,184,000 for January 1, 1998, and subsequent years (through 2001), and at $21,040,000 ending December 31, 1997, and prior.
Field 02NTT - Net Tax Tentative
(1) This field is only used on returns dated prior to Tax Year 2002. Line 7b was deleted, along with former Lines 7a, 7c, and 8 (Fields 02GTT, 02TNT, and 02TTT, respectively) after Tax Year 2001.
(2) This field is transcribed from Page 1, Part 2, Line 7b of the (Tax Year 2001 and prior years) return. It is computed by subtracting $10,000,000 from Page 1, Part 2, Line 5 (Field 0205) or the applicable phase out range (see below). This field is bypassed if Page 1, Part 2, Line 5 (Field 0205) is $10,000,000 or less.
(3) Prior to 2002, the benefits of the Unified Credit and taxes of less than the maximum tax were phased out for estates of more than $10,000,000.
(4) Depending on the maximum tax and Unified Credit in effect for the year of death, the phase out range changes. The phase out range ends at $17,184,000 for January 1, 1998, and subsequent years (through 2001), and at $21,040,000 ending December 31, 1997, and prior.
Field 02TNT - Total Net Tax Tentative
(1) This field is only used on returns dated prior to Tax Year 2002. Line 7c was deleted, along with former Lines 7a, 7b, and 8 (Fields 02GTT, 02NTT, and 02TTT, respectively) after Tax Year 2001.
(2) This field is transcribed from Page 1, Part 2, Line 7c of the return (for Tax Years 2001 and prior). The computer will math verify this field using 5 percent (.05) of the computer generated amount for Field 02NTT. This field is bypassed if Page 1, Part 2, Line 5 (Field 0205) is $10,000,000 or less.
(3) Prior to 2002, the benefits of the Unified Credit and taxes of less than the maximum tax were phased out for estates of more than $10,000,000.
(4) Depending on the maximum tax and Unified Credit in effect for the year of death, the phase out range changes. The phase out range ends at $17,184,000 for January 1, 1998, and subsequent years (through 2001), and at $21,040,000 ending December 31, 1997, and prior.
Field 02TTT - Total Transfer Taxes Tentative
(1) This field is only used on returns dated prior to Tax Year 2002. Line 8 was deleted, along with former Lines 7a, 7b, and 7c (Fields 02GTT, 02NTT, 02TNT, respectively) after Tax Year 2001.
(2) This field is transcribed from Page 1, Part 2, Line 8 of the return (Field 02TTT). It is the sum of Page 1, Part 2, Lines 6 and 7c (Fields 0206 and 02TNT). (This was previously Field 0208 and was transcribed from Line 8 (Tax Years 2001 and prior).)
(3) Prior to 2002, the benefits of the Unified Credit and taxes of less than the maximum tax were phased out for estates of more than $10,000,000.
(4) Depending on the maximum tax and Unified Credit in effect for the year of death, the phase out range changes. The phase out range ends at $17,184,000 for January 1, 1998, and subsequent years (through 2001), and at $21,040,000 ending December 31, 1997, and prior.
Section 03 Data Form 706, U.S. Estate Tax Return, General Information
(1) Section 03 field designators, line numbers, field lengths and titles are listed below. This section is transcribed in dollars only or dollars and cents, whichever is applicable.
(2) Field 03B/R, Page 1, Part 2, Line 20 can be positive or negative on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.
(3) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Error Record Format - Section 03 (Form 706),U.S. Estate Tax Return
(1) The Error Record Format for Section 03 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
03GTC | 12 | Gift Tax Credit | Page 1, Part 2, Line 15 (Tax Years 2002 through 2004) |
0313 | 12 | Foreign Death Tax Credit | Page 1, Part 2, Line 13 |
0314 | 12 | Prior Transfer Credit | Page 1, Part 2, Line 14 |
0315 | 12 | Total Credits | Page 1, Part 2, line 15 |
>>>> | 12 | Total Credit |
|
0316 | 12 | Net Estate Tax | Page 1, Part 2, Line 16 |
>>>> | 12 | Net Estate Tax |
|
0317 | 12 | GST Tax | Page 1, Part 2, Line 17 |
03SEC | 12 | Section 4980A | Page 1, Part 2, Line 23 (Tax Years 1998 and prior) Note: Schedule S is no longer valid for January 1, 1998, and subsequent years. It is still valid for December 31, 1997, and prior. |
0318 | 12 | Total Transfer Taxes | Page 1, Part 2, Line 18 |
>>>> | 12 | Total Transfer Taxes |
|
0319 | 12 | Prior Payments | Page 1, Part 2, Line 19 |
03USB | 12 | U.S. Treasury Bonds ((Flower Bonds) - Last Flower Bond matured November 15, 1998 - none outstanding now) | Page 1, Part 2, Line 23 (Tax Years 2002 through 2004) |
03PMT | 12 | Total payments | Page 1, Part 2, Line 24 (Tax Years 2002 through 2004) |
>>>> | 12 | Total Payments |
|
03B/R | 12 | Balance Due/Overpayment | Page 1, Part 2, Line 20 |
>>>> | 12 | Balance Due/Overpayment |
|
03MCT | 12 | Manually Corrected Total Transfer Taxes | Page 1, Part 2, Line 18 (represents Total Tax) Note: On tax years 2002 through 2004 was edited on the dotted portion of Line 21 and prior to 2002 was edited on the dotted portion of Line 23 |
Field 03GTC - Gift Tax Credit
(1) This field is only used for returns with dates of death prior to 2005. Line 15 (Field 03GTC) was deleted after Tax Year 2004.
(2) This field is transcribed from Page 1, Part 2, Line 15 (Tax Years 2002 through 2004) of the return. (This was previously Line 17 and Field 0317 for Tax Years 2001 and prior.)
(3) Generally, only taxable gifts given after December 31, 1976, are taken into account in computing the estate tax payable upon death. There is an exception, however. Gifts given prior to that date are included in the estate if the decedent retained an interest in the property given which does not cease at death.
Example: In 1975, a taxpayer gives a child a small business, provided the taxpayer gets half the profits. These profits must continue to be paid to the estate after the taxpayer's death. The value of the interest in the business must be included in the taxpayer's estate.
(4) Since the gift must be included in the estate and be subjected to the estate tax, a credit is given for any gift taxes paid to prevent double taxation.
Field 0313 - Foreign Death Tax Credit
(1) This field is transcribed from Page 1, Part 2, Line 13.
(2) Many foreign governments impose some sort of transfer tax on assets transferred after death. It can be an estate tax (tax paid by the estate), an inheritance tax (tax paid by heirs receiving the assets), or both. The United States taxes its citizens and resident aliens on their worldwide assets. The United States and many foreign countries also tax nonresident aliens on assets held within the taxing country. This can lead to double taxation. Since estate tax rates are often very high, double taxation can mean that assets are taxed by the two countries at a total rate of 100 percent or more. To prevent this from occurring to U.S. citizens and resident aliens, the United States gives a credit against U.S. estate taxes for foreign death taxes paid. (The credit is the lesser of U.S. Estate Tax paid or Foreign Tax paid on property subject to credit.)
Field 0314 - Prior Transfer Credit
(1) This field is transcribed from Page 1, Part 2, Line 14.
(2) If a taxpayer pays estate tax on a property given to an heir who dies from two years before to 10 years after the donors death (yes, you can leave property to someone already deceased), a credit is available to the estate of the heir. It has been deemed unfair to subject the property to another estate tax when the property was held by the heir for such a short period of time.
Field 0315 - Total Credits
(1) This field is transcribed from Page 1, Part 2, Line 15. It is computed by adding Page 1, Part 2, Lines 13 and 14 (Fields 0313 and 0314).
(2) These credits are added to reach a total which will be subtracted from the estate tax.
Field 0316 - Net Estate Tax
(1) This field is transcribed from Page 1, Part 2, Line 16. It is computed by subtracting Page 1, Part 2, Line 15 from Line 12 (Fields 0315 and 0312).
(2) This line performs the math to allow certain credits to be subtracted from the estate tax.
Field 0317 - GST
(1) This field is transcribed from Page 1, Part 2, Line 17.
(2) Generation-Skipping tax is the third type of transfer tax. It imposes tax at the maximum estate tax rate on certain transfers meant to avoid estate tax.
Field 0318 - Total Transfer Taxes
(1) This field is transcribed from Page 1, Part 2, Line 18, with a year in the DOD of 1998 and later. It is computed by adding Page 1, Part 2, Lines 16 and 17 (Fields 0316 and 0317).
(2) This field adds up the additions to estate tax.
Field 0319 - Prior Payments
(1) This field is transcribed from Page 1, Part 2, Line 19.
(2) This line may be filled in on amended returns or on a return with an extension with payment. It shows estate taxes previously paid.
Field 03USB - U.S. Treasury Bonds
(1) This field is only used for returns with dates of death prior to 2005. Line 23 (Field 0323) was deleted after Tax Year 2004.
(2) This field is transcribed from Page 1, Part 2, Line 23 (Tax Years 2002 through 2004) of the return.
(3) U.S. Treasury Bonds can no longer be used to pay estate taxes.
(4) If an amount is entered on Line 23, research BMFOL to decide if the amount has been credited to the estate.
If present on BMFOL, move the amount to Line 22 and Field 0322.
If not present on BMFOL, delete Line 23 and Field 0323 and continue processing the return.
Invalid Conditions
(1) Field 03USB is invalid if it is not all numeric or exceeds $9,999,999,999.99.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) If an amount is entered on Line 23, research BMFOL to decide if the amount has been credited to the estate
If present on BMFOL, move the amount to Line 22 and Field 0322.
If not present on BMFOL, delete Line 23 and Field 0323 and continue processing the return.
Note: Prior Year Returns
Field 03PMT - Total Payments
(1) This field is only used for returns with dates of death prior to 2005. Line 24 (Field 0324) was deleted after Tax Year 2004.
(2) This field is transcribed from Page 1, Part 2, Line 24 (Tax Years 2002 through 2004) of the return. It is computed by adding Page 1, Part 2, Lines 22 and 23 (Fields 0322 and 0323).
(3) This field adds payments made prior to filing the return.
Field 03B/R - Balance Due/Overpayment
(1) This field is transcribed from Page 1, Part 2, Line 20. It is computed by subtracting Page 1, Part 2, Line 19 from Line 18 (Fields 0319 and 0318).
(2) This field shows if the estate owes money or is due a refund.
Invalid Conditions
(1) Field 03B/R is invalid if it is not all numeric or exceeds $9,999,999,999.99.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) If Field 03B/R under prints, any penalty or interest included by the taxpayer must be subtracted from the amount on Line 20 and the difference entered in Field 03B/R.
(3) Check for presence of Form 4349, Computation of Estate Tax Due with Return and Annual Installment, or request for installment payments under Section 6166. If installments have been established, bring up the underprint in Field 03B/R.
Field 03MCT - Manually Corrected Tax
(1) This field is only used if the decedent died prior to January 1, 1977, or if CCC "Y" applies. In these instances, the tax must be manually calculated.
(2) This field is the manually computed amount of Total Transfer Taxes and will be entered only by Error Resolution. It is entered on the dotted portion of Page 1, Part 2, Line 18.
Field 03SEC - Section 4980A
(1) This field is transcribed from Page 1, Part 2, Line 23.
(2) Schedule S was deleted for 1998 and subsequent years. It is still valid for 1997 and prior years. This Line 23 will still display on the ERS display screen as 03SEC for Tax Years 1998 and prior.
(3) An additional tax is put on taxpayers with very large pensions, tax deferred annuities or Individual Retirement Accounts (IRAs) under certain conditions.
Section 04 Data Form 706, United States Estate (and Generation-Skipping Transfer)Tax Return, Error Record Format
(1) The Error Record Format for Section 04 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
04PNL | 28 | Primary Name Line Decedent | Page 1, Part 1, Box 1a |
04 CAD | 20 | County at Death | Page 1, Part 1, Box 3a |
04 SAD | 2 | State at Death | Page 1, Part 1, Box 3a |
04 ZAD | 12 | ZIP at Death | Page 1, Part 1, Box 3a |
04EXE | 35 | Executor | Page 1, Part 1, Box 6a |
04CON | 35 | "In-Care-of" Name | Page 1, Part 1, Box 6a or 6b |
04FAD | 35 | Foreign Address | Page 1, Part 1, Box 6b |
04ADD | 35 | Street Address | Page 1, Part 1, Box 6b |
04CTY | 22 | City/Major City Code | Page 1, Part 1, Box 6b |
04ST | 2 | State Code | Page 1, Part 1, Box 6b |
04ZIP | 12 | ZIP Code | Page 1, Part 1, Box 6b |
04MXI | 1 | Multiple Executors Indicator | Page 1, Part 1, Line 6d |
04AEI | 1 | Asset Value Estimate Indicator | Page 1, Part 1, Line 11 |
(2) Section 04 cannot be present on a "G" coded return. If present, DLSEC 04.
Field 04PNL - Primary Name Line Decedent
(1) This field is transcribed from Page 1, Part 1, Box 1a and 1b. The Primary Name Line must be present unless CCC "G" is present.
(2) Although the total field is 35 characters, the number of characters that can be input is limited to 28 because the word "ESTATE" is generated when going to the Master File.
(3) This field shows the name of the decedent for whom the estate tax return is being filed.
Invalid Conditions
(1) Field 04PNL is invalid if:
It is blank.
Field contains characters other than alpha, less-than sign (<), hyphens (-), and blanks.
A character follows 2 consecutive blanks.
The first position contains a blank.
No less-than sign (<) is present.
One less-than sign (<) is present and is followed by a blank.
For taxpayers with only one name, a hyphen present in the first position followed by a less-than sign (<) is not found.
The field contains more than two less-than sign (<).
Less-than sign (<) cannot appear in consecutive positions.
The first or last position of the field contains a less-than sign (<).
The number of character positions is more than 28.
Field 04CAD - County at Death
(1) This field is transcribed from Page 1, Part 1, Box 3a of the return. The field must contain an entry.
Invalid Conditions
(1) Field 04CAD is invalid if:
It is blank.
Field contains characters other than alpha characters and blanks.
An alpha follows two consecutive blanks.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) For Alaska, use the applicable borough. For Louisiana, use the applicable parish.
(3) The following table contains instructions for Field 04CAD:
If | Then |
|---|---|
A U.S. citizen dies while abroad, but whose domicile remained in the U.S. | The Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, must be filed with the Kansas Submission Processing Campus. |
The information is not found on Page 1, Part 1, Box 3a |
Note: If the entry in Box 3a is a foreign country, enter the foreign country name in Field 04CAD. |
Not found | Enter "Unknown" in Field 04 CAD. |
Field 04SAD - State at Death
(1) This field is transcribed from Page 1, Part 1, Box 3a. This field must have an entry containing a valid two character state code.
Invalid Conditions
(1) Field 04SAD is invalid if:
It does not contain a valid state code or other country ("Code").
It is blank.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed Using If/Then Charts below:
If | Then |
|---|---|
| All Forms 706 are filed at the Kansas Submission Processing Campus. |
The information is not found on Page 1, Part 1, Box 3a | Research death certificate. |
(2) Use Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), Zip Codes and Countries or valid state codes.
If | Then |
|---|---|
You cannot find the state of death | Research, using INOLE. Input the state in Field 04SAD. If not found, enter "OC" in Field 04SAD. |
The ZIP code is present but the state is not | Use Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries or valid state codes, to decide the state and input in Field 04SAD. Research INOLE. If not found, enter "OC" in Field 04 SAD. |
The information cannot be found through research or in ZIP code directory | Enter "OC" in Field 04SAD. |
Field 04ZAD - ZIP at Death
(1) This field is transcribed from Page 1, Part 1, Box 3a.
Invalid Conditions
(1) Field 04 ZAD is invalid if:
The first five positions are not numeric.
Positions four and five are "00".
Exception: ZIP code 20500.
The last three or seven positions are not all numeric or all blank.
The first three positions are not valid for the state code in Field 04SAD.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed, using If/Then Chart below:.
If | Then |
|---|---|
The information is not found on Page 1, Part 1, Box 3a | Research death certificate. |
A valid ZIP code is not available from the return or attachments to the return | Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries or valid state codes. |
Only the first three digits of the ZIP code can be found | Enter 01 for the fourth and fifth digits. |
Field 04EXE - Executor
(1) This field is transcribed from Page 1, Part 1, Line 6a of the return. This field must be present except when "G" coded.
(2) This field identifies the person responsible for the estate.
Invalid Conditions
(1) Field 04EXE is invalid if:
The field contains other than alpha characters, numeric characters, hyphens, ampersands or blanks.
The first position contains any character other than alpha or numeric.
A character is followed by two consecutive blanks.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Refer to the return or attachments to find the correct name. Using the following Information:
If | Then |
|---|---|
No executor is indicated | Enter the name of a personal representative or attorney, which can be found on Page 1, Part 1, Box 6a; Page 2, Part 4; the signature area; or in attachments. |
The return and attachments have no evidence of an executor, personal representative or attorney | Enter "Unknown" in Field 04EXE. |
Field 04CON "In-Care-of"
(1) This field is transcribed from Page 1, Part I, Line 6a.
(2) Field 04CON has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent (%).
Note: The first character of the "in-care-of" name must be alpha or numeric.
Invalid Conditions
(1) Field 04CON is invalid if:
The first position is % (percent) and the second position is not blank.
The first position is blank.
The first character of the "in-care-of" name is not alpha or numeric.
There are two consecutive blanks between significant characters.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed, Using the following If/Then Chart:
If | Then |
|---|---|
A % (percent) is in the first position |
|
A blank is in the first position |
|
The first character of the in-care-of name is not alpha or numeric |
|
Two consecutive blanks are present between significant characters | Delete any unnecessary blanks in Field 04CON. |
Field 04FAD - Foreign Address
(1) This field is transcribed from Page 1, Part 1, Box 6b.
This field will contain an entry when there is a foreign address present on the return.
Field 04FAD must not be present on "G" coded returns.
(2) Valid characters are alpha, numeric and special characters.
Invalid Conditions
(1) Field 04FAD is invalid if:
The first position is blank.
Any character follows two consecutive blanks.
There are more than 35 characters present in the field.
Note: Integrated Submission and Remittance Processing (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.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed, with the following action. Exhibit 3.12.263-14, Foreign Country Code.
If | Then |
|---|---|
Field 04FAD is present: |
|
A foreign address is not present on the return |
|
(2) If Form 8822, Change of Address, is attached to the return, compare the name and address information on the Form 8822, Change of Address, to the return, following If/Then Chart.
If | Then |
|---|---|
The information is the same | Take no action and continue processing. |
The information is different |
|
Note: The lead tax examiner is required to batch all Form 8822s daily and hand carry to Entity Control for expedited processing.
Foreign Addresses - General Information
(1) KCSPC will process Estate and Gift tax foreign/international addresses and U.S. Possessions returns.
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
Federated States of Micronesia
Guam
Marshall Islands
Northern Mariana Islands
Palau
Puerto Rico
Virgin Islands
(2) The U.S. Postal Service established new address requirements for Army Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) addresses. If an address appears in the old format, such as APO New York, NY 091XX, convert to the new state code abbreviation (APO AE 091XX) based on the ZIP Code. APO/DPO/FPO addresses are considered domestic addresses. Refer to conversion table below:
ZIP Code | Address | Abbreviation |
|---|---|---|
340XX | APO/DPO/FPO | AA |
090XX-098XX | APO/DPO/FPO | AE |
962XX-966XX | APO/DPO/FPO | AP |
Foreign Addresses
(1) A foreign address will contain:
Street Address or PO Box
City or town name
Other principal subdivision (i.e. province, state, and county.)
Postal code if present
Foreign country
(2) Returns with addresses in the U.S. Possessions are a foreign return for processing purposes and are entered in the same way as domestic addresses. Refer to chart below for Abbreviations.
Note: A two character alpha code must be entered in Field 04ST for the possession name.
U.S. Possession | 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 |
(3) A ZIP code must be present.
Foreign Address - Canada Only
(1) In an effort to assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province. Using the following If/Then charts:
If | Then |
|---|---|
The foreign address contains a Canadian province name or abbreviation |
|
The foreign address does not contain a Canadian province name or abbreviation |
|
Canadian Province | Province Abbreviation | Country Code |
|---|---|---|
Alberta | AB | XA |
British Columbia | BC | XB |
Manitoba | MB | XM |
New Brunswick | NB | XN |
Newfoundland and Labrador | NL | XL |
Northwest Territories | NT | XT |
Nova Scotia | NS | XS |
Nunavut | NU | XV |
Ontario | ON | XO |
Prince Edward Island | PE | XP |
Quebec | QC | XQ |
Saskatchewan | SK | XW |
Yukon | YT | XY |
Field 04ADD Street Address
(1) This field is transcribed from Page 1, Part 1, Box 6b of the return.
Invalid Conditions
(1) Field 04ADD is invalid if:
Any character other than alpha, numeric, blank, dash, or slash is present.
Any character follows two consecutive blanks.
The first position is not an alpha or numeric character.
There are more than 35 characters in this field (ISRP will input a pound (#) sign as the 35th character).
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If the 35th character is a pound sign (#), find a way to abbreviate the address to 35 or fewer characters. Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries or valid state codes.
(3) If unable to correct, SSPND with AC 320 to Entity Control, using Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip.
Field 04CTY - City/Major City Code
(1) This field is transcribed from Page 1, Part 1, Box 6b of the return.
Invalid Conditions
(1) Field 04CTY is invalid if:
Any character other than alpha or blank is present.
Any character follows two consecutive blanks.
The first position is blank.
Foreign country code is not present, incorrect or contains "XX".
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), Zip Codes and Countries or valid state codes.
(3) If a foreign address is shown on the return, enter appropriate foreign country code in Field 04CTY. See Exhibit 3.12.263-14, Foreign Country Codes.
(4) If unable to correct, blank the field.
Field 04ST - State Code
(1) This field is transcribed from Page 1, Part 1, Box 6b of the return.
Invalid Conditions
(1) Field 04ST is invalid if:
Any character other than alpha and blank, if present.
The first position is blank.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries or valid state codes. See Exhibit 3.12.263-13 for U.S. Possessions ZIP Codes.
(3) If unable to correct, GTSEC 04 and delete specific fields.
Note: "." (period) present may show a foreign address and GTSEC 04 may be necessary to check all fields.
Field 04ZIP - ZIP Code
(1) This field is transcribed from Page 1, Part 1, Box 6b.
Invalid Conditions
(1) Field 04ZIP is invalid if:
The first five positions are not numeric
Positions four and five are "00".
Exception: ZIP code 20500.
The last three or seven positions are not all numeric or all blank.
Field 04ST is foreign (i.e., a period and a space (.) is present) and the File Location Code in the DLN is not 98.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed. Following the If/Then Chart below:
If | Then |
|---|---|
A valid ZIP code is not available from the return or attachments to the return. | Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries or valid state codes See Exhibit 3.12.263-13, U.S. Possessions ZIP Codes. |
Only the first three digits of the ZIP code can be found. | Enter 01 for the fourth and fifth digits. |
Field 04MXI - Multiple Executors Indicator
(1) This field is transcribed from Page 1, Part 1, Line 6d and is valid for DOD in 2012 and subsequent.
Section 05 Data Form 706, U.S. Estate (and Generation - Skipping Transfer)Tax Return, Error Record Format
(1) The Error Record Format for Section 05 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
05AMS | 1 | Marital Status (need to input 1, 2, 3, 4 or 5)depending on the marital status. | Page 2, Part 4, Line 3a |
Field 05AMS - Marital Status
(1) This field is transcribed from Page 2, Part 4, Line 3a and is valid for DOD in 2012 and subsequent.
Invalid Conditions
(1) Field 05AMS is invalid if:
Any character other than 1 (Married), 2 (Widow/Widower), 3 (Single), 4 (Legally Separated), or 5 (Divorced).
Correction Procedure
(1) Check for coding and transcription errors and correct as needed
(2)
IF | THEN |
|---|---|
If taxpayer has not answered line 3a |
|
If not found on the Death Certificate |
|
Section 06 Data Form 706, U.S. Estate (and Generation - Skipping Transfer) Tax Return, Error Record Format
(1) The Error Record Format for Section 06 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
0606 | 1 | Protective Claim for Refund Indicator | Page 2, Part 4, Line 6 |
0610A | 15 | Gross Estate Estimated Value of Assets (Alternate value) | Page 3, Part 5, Line 10, column 1 (Alternate value) |
0610B | 15 | Gross Estate Estimated Value of Assets (Value at date of death) | Page 3, Part 5, Line 10, column 2 (Value at date of death) |
0623 | 15 | Deductions Estimated Value of Assets | Page 3, Part 5, Line 23 |
Field 0606 - Protective Claim for Refund Indicator
(1) This field is transcribed from Page 2, Part 4, Line 6 and is valid for DOD in 2012 and subsequent.
(2) A protective claim for refund preserves the estate’s right to a refund of tax paid on any amount included in the gross estate which would be deductible underIRC 2053 but has not been paid or otherwise will not meet the requirements of IRC 2053 until after the limitations period for filing the claim has passed.
Field 0610A - Gross Estate Estimated Value of Assets (Alternate value)
(1) This field is transcribed from Page 2, Part 4, Line 10, column 1 (Alternate value) and is valid for DOD in 2012 and subsequent.
Field 0610B - Gross Estate Estimated Value of Assets (Value at date of death)
(1) This field is transcribed from Page 2, Part 4, Line 10, column 2 (Value at date of death) and is valid for DOD in 2012 and subsequent.
Field 0623 - Deductions Estimated Value of Assets
(1) This field is transcribed from Page 2, Part 4, Line 23 and is valid for DOD in 2012 and subsequent.
Section 07 Data Form 706, United States Estate (and Generation - Skipping Transfer)Tax Return, Record Format
(1) The Error Record Format for Section 07 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
07DDI | 1 | Decline DSUE Indicator | Page 4, Part 6, Section A |
07QDT | 1 | Qualified Domestic Trust Indicator | Page 4, Part 6, Section B |
07C1 | 15 | DSUE Applicable Exclusion Amount | Page 4, Part 6, Section C, Line 1 |
07C2 | 15 | DSUE Aggregate Gift Tax Note: For taxpayers dying in 2013 and subsequent, Line 2 is shown as "Reserved" on the form. Due to budget constraints, programming was unable to be completed to change the Field Name. | Page 4, Part 6, Section C, Line 2 |
07C3 | 15 | DSUE Aggregate Gift Tax Percentage Note: For taxpayers dying in 2013 and subsequent, Line 3 is shown as "the value of the cumulative lifetime gifts on which tax was paid or payable" on the form. Due to budget constraints, programming was unable to be completed to change the Field Name. | Page 4, Part 6, Section C, Line 3 |
07C4 | 15 | DSUE Applicable Exclusion plus Aggregate Gift Tax Percentage | Page 4, Part 6, Section C, Line 4 |
07C5 | 15 | DSUE Adjusted Applicable Credit | Page 4, Part 6, Section C, Line 5 |
07C6 | 15 | DSUE Adjusted Applicable Credit Percentage | Page 4, Part 6, Section C, Line 6 |
07C7 | 15 | DSUE Gross Exclusion | Page 4, Part 6, Section C, Line 7 |
07C8 | 15 | DSUE Net Taxable Estate | Page 4, Part 6, Section C, Line 8 |
07C9 | 15 | DSUE Exclusion | Page 4, Part 6, Section C, Line 9 |
07C10 | 15 | DSUE Amount Portable to Surviving Spouse | Page 4, Part 6, Section C, Line 10 |
07D1A | 35 | DSUE Deceased Spouse Name 1 | Page 4, Part 6, Section D, Part 1, column A |
07D1B | 8 | DSUE Date of Death 1 | Page 4, Part 6, Section D, Part 1, column B |
07D1C | 1 | DSUE Portability Election Indicator 1 | Page 4, Part 6, Section D, Part 1, column C |
07D1D | 15 | DSUE Portable Amount 1 | Page 4, Part 6, Section D, Part 1, column D |
07D1E | 15 | DSUE Donor Gift Amount 1 | Page 4, Part 6, Section D, Part 1, column E |
07D1F | 8 | DSUE Date of Gift 1 | Page 4, Part 6, Section D, Part 1, column F |
07D1G | 15 | DSUE Remaining Amount 1 | Page 4, Part 6, Section D, Part 1, column G |
Field 07DDI - Decline DSUE Indicator
(1) This field is transcribed from Part 6, Section A.
Field 07QDT - Qualified Domestic Trust Indicator
(1) This field is transcribed from Part 6, Section B.
Field 07C1 - DSUE Applicable Exclusion Amount
(1) This field is transcribed from Part 6, Section C, Line 1.
Field 07C2 - DSUE Aggregate Gift Tax - "Reserved" on the 2013 form revision
(1) This field is transcribed from Part 6, Section C, Line 2.
Note: Due to budget constraints, programming was unable to be completed to change the Field Name for 2013 and subsequent.
Field 07C3 - DSUE Aggregate Gift Tax Percentage - "value of the cumulative lifetime gifts on which tax was paid or payable" on the 2013 form revision
(1) This field is transcribed from Part 6, Section C, Line 3.
Note: Due to budget constraints, programming was unable to be completed to change the Field Name for 2013 and subsequent.
Field 07C4 - DSUE Applicable Exclusion plus Aggregate Gift Tax Percentage
(1) This field is transcribed from Part 6, Section C, Line 4.
Field 07C5 - DSUE Adjusted Applicable Credit
(1) This field is transcribed from Part 6, Section C, Line 5.
Field 07C6 - DSUE Adjusted Applicable Credit Percentage
(1) This field is transcribed from Part 6, Section C, Line 6.
Field 07C7 - DSUE Gross Exclusion
(1) This field is transcribed from Part 6, Section C, Line 7.
Field 07C8 - DSUE Net Taxable Estate
(1) This field is transcribed from Part 6, Section C, Line 8.
Field 07C9 - DSUE Exclusion
(1) This field is transcribed from Part 6, Section C, Line 9.
Field 07C10 - DSUE Amount Portable to Surviving Spouse
(1) This field is transcribed from Part 6, Section C, Line 10.
Field 07D1A - DSUE Deceased Spouse Name 1
(1) This field is transcribed from Part 6, Section D, Part 1, column A and is valid for DOD after 12/31/2010.
Field 07D1B - DSUE Date of Death 1
(1) This field is transcribed from Part 6, Section D, Part 1, column B and is valid for DOD after 12/31/2010.
Field 07D1C - DSUE Portability Election Indicator 1
(1) This field is transcribed from Part 6, Section D, Part 1, column C and is valid for DOD after 12/31/2010.
Field 07D1D - DSUE Portable Amount 1
(1) This field is transcribed from Part 6, Section D, Part 1, column D and is valid for DOD after 12/31/2010.
Field 07D1E - DSUE Portable Amount 1
(1) This field is transcribed from Part 6, Section D, Part 1, column E and is valid for DOD after 12/31/2010.
Field 07D1F - DSUE Date of Gift 1
(1) This field is transcribed from Part 6, Section D, Part 1, column F and is valid for DOD after 12/31/2010.
Field 07D1G - DSUE Remaining Amount 1
(1) This field is transcribed from Part 6, Section D, Part 1, column G and is valid for DOD after 12/31/2010.
Section 08 Data Form 706, United States Estate (and Generation - Skipping Transfer)Tax Return, Error Record Format
(1) The Error Record Format for Section 08 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
08D2A | 35 | DSUE Deceased Spouse Name 2 | Part 6, Section D, Part 2, column A |
08D2B | 8 | DSUE Date of Death 2 | Part 6, Section D, Part 2, column B |
08D2C | 1 | DSUE Portability Election Indicator 2 | Part 6, Section D, Part 2, column C |
08D2D | 15 | DSUE Portable Amount 2 | Part 6, Section D, Part 2, column D |
08D2E | 15 | DSUE Donor Gift Amount 2 | Part 6, Section D, Part 2, column E |
08D2F | 8 | DSUE Date of Gift 2 | Part 6, Section D, Part 2, column F |
08D3A | 35 | DSUE Deceased Spouse Name 3 | Part 6, Section D, Part 2, column A |
08D3B | 8 | DSUE Date of Death 3 | Part 6, Section D, Part 2, column B |
08D3C | 1 | DSUE Portability Election Indicator 3 | Part 6, Section D, Part 2, column C |
08D3D | 15 | DSUE Portable Amount 3 | Part 6, Section D, Part 2, column D |
08D3E | 15 | DSUE Donor Gift Amount 3 | Part 6, Section D, Part 2, column E |
08D3F | 8 | DSUE Date of Gift 3 | Part 6, Section D, Part 2, column F |
08D4A | 35 | DSUE Deceased Spouse Name 4 | Part 6, Section D, Part 2, column A |
08D4B | 8 | DSUE Date of Death 4 | Part 6, Section D, Part 2, column B |
08D4C | 1 | DSUE Portability Election Indicator 4 | Part 6, Section D, Part 2, column C |
08D4D | 15 | DSUE Portable Amount 4 | Part 6, Section D, Part 2, column D |
08D4E | 15 | DSUE Donor Gift Amount 4 | Part 6, Section D, Part 2, column E |
08D4F | 8 | DSUE Date of Gift 4 | Part 6, Section D, Part 2, column F |
Field 08D2A - DSUE Deceased Spouse Name 2
(1) This field is transcribed from Part 6, Section D, Part 2, column A and is valid for DOD after 12/31/2010.
Field 08D2B - DSUE Date of Death 2
(1) This field is transcribed from Part 6, Section D, Part 2, column B and is valid for DOD after 12/31/2010.
Field 08D2C - DSUE Portability Election Indicator 2
(1) This field is transcribed from Part 6, Section D, Part 2, column C and is valid for DOD after 12/31/2010.
Field 08D2D - DSUE Portable Amount 2
(1) This field is transcribed from Part 6, Section D, Part 2, column D and is valid for DOD after 12/31/2010.
Field 08D2E - DSUE Portable Amount 2
(1) This field is transcribed from Part 6, Section D, Part 2, column E and is valid for DOD after 12/31/2010.
Field 08D2F - DSUE Date of Gift 2
(1) This field is transcribed from Part 6, Section D, Part 2, column F and is valid for DOD after 12/31/2010.
Field 08D3A - DSUE Deceased Spouse Name 3
(1) This field is transcribed from Part 6, Section D, Part 2, column A and is valid for DOD after 12/31/2010.
Field 08D3B - DSUE Date of Death 3
(1) This field is transcribed from Part 6, Section D, Part 2, column B and is valid for DOD after 12/31/2010.
Field 08D3C - DSUE Portability Election Indicator 3
(1) This field is transcribed from Part 6, Section D, Part 2, column C and is valid for DOD after 12/31/2010.
Field 08D3D - DSUE Portable Amount 3
(1) This field is transcribed from Part 6, Section D, Part 2, column D and is valid for DOD after 12/31/2010.
Field 08D3E - DSUE Portable Amount 3
(1) This field is transcribed from Part 6, Section D, Part 2, column E and is valid for DOD after 12/31/2010.
Field 08D3F - DSUE Date of Gift 3
(1) This field is transcribed from Part 6, Section D, Part 2, column F and is valid for DOD after 12/31/2010.
Field 08D4A - DSUE Deceased Spouse Name 4
(1) This field is transcribed from Part 6, Section D, Part 2, column A and is valid for DOD after 12/31/2010.
Field 08D4B - DSUE Date of Death 4
(1) This field is transcribed from Part 6, Section D, Part 2, column B and is valid for DOD after 12/31/2010.
Field 08D4C - DSUE Portability Election Indicator 4
(1) This field is transcribed from Part 6, Section D, Part 2, column C and is valid for DOD after 12/31/2010.
Field 08D4D - DSUE Portable Amount 4
(1) This field is transcribed from Part 6, Section D, Part 2, column D and is valid for DOD after 12/31/2010.
Field 08D4E - DSUE Portable Amount 4
(1) This field is transcribed from Part 6, Section D, Part 2, column E and is valid for DOD after 12/31/2010.
Section 09 Data Form 706, United States Estate Tax Return, Error Record Format
(1) The Error Record Format for Section 09 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
09D5A | 35 | DSUE Deceased Spouse Name 5 | Page 4, Part 6, Section D, Part 2, column A |
09D5B | 8 | DSUE Date of Death 5 | Page 4, Part 6, Section D, Part 2, column B |
09D5C | 1 | DSUE Portability Election Indicator 5 | Page 4, Part 6, Section D, Part 2, column C |
09D5D | 15 | DSUE Portable Amount 5 | Page 4, Part 6, Section D, Part 2, column D |
09D5E | 15 | DSUE Donor Gift Amount 5 | Page 4, Part 6, Section D, Part 2, column E |
09D5F | 8 | DSUE Date of Gift 5 | Page 4, Part 6, Section D, Part 2, column F |
09D6A | 35 | DSUE Deceased Spouse Name 6 | Page 4, Part 6, Section D, Part 2, column A |
09D6B | 8 | DSUE Date of Death 6 | Page 4, Part 6, Section D, Part 2, column B |
09D6C | 1 | DSUE Portability Election Indicator 6 | Page 4, Part 6, Section D, Part 2, column C |
09D6D | 15 | DSUE Portable Amount 6 | Page 4, Part 6, Section D, Part 2, column D |
09D6E | 15 | DSUE Donor Gift Amount 6 | Page 4, Part 6, Section D, Part 2, column E |
09D6F | 8 | DSUE Date of Gift 6 | Page 4, Part 6, Section D, Part 2, column F |
09D7A | 35 | DSUE Deceased Spouse Name 7 | Page 4, Part 6, Section D, Part 2, column A |
09D7B | 8 | DSUE Date of Death 7 | Page 4, Part 6, Section D, Part 2, column B |
09D7C | 1 | DSUE Portability Election Indicator 7 | Page 4, Part 6, Section D, Part 2, column C |
09D7D | 15 | DSUE Portable Amount 7 | Page 4, Part 6, Section D, Part 2, column D |
09D7E | 15 | DSUE Donor Gift Amount 7 | Page 4, Part 6, Section D, Part 2, column E |
09D7F | 8 | DSUE Date of Gift 7 | Page 4, Part 6, Section D, Part 2, column F |
09DSU | 15 | DSUE Amount | Page 4, Part 6, bottom of page |
Field 09D5A - DSUE Deceased Spouse Name 5
(1) This field is transcribed from Part 6, Section D, Part 2, column A and is valid for DOD after 12/31/2010.
Field 09D5B - DSUE Date of Death 5
(1) This field is transcribed from Part 6, Section D, Part 2, column B and is valid for DOD after 12/31/2010.
Field 09D5C - DSUE Portability Election Indicator 5
(1) This field is transcribed from Part 6, Section D, Part 2, column C and is valid for DOD after 12/31/2010.
Field 09D5D - DSUE Portable Amount 5
(1) This field is transcribed from Part 6, Section D, Part 2, column D and is valid for DOD after 12/31/2010.
Field 09D5E - DSUE Portable Amount 5
(1) This field is transcribed from Part 6, Section D, Part 2, column E and is valid for DOD after 12/31/2010.
Field 09D5F - DSUE Date of Gift 5
(1) This field is transcribed from Part 6, Section D, Part 2, column F and is valid for DOD after 12/31/2010.
Field 09D6A - DSUE Deceased Spouse Name 6
(1) This field is transcribed from Part 6, Section D, Part 2, column A and is valid for DOD after 12/31/2010.
Field 09D6B - DSUE Date of Death 6
(1) This field is transcribed from Part 6, Section D, Part 2, column B and is valid for DOD after 12/31/2010.
Field 09D6C - DSUE Portability Election Indicator 6
(1) This field is transcribed from Part 6, Section D, Part 2, column C and is valid for DOD after 12/31/2010.
Field 09D6D - DSUE Portable Amount 6
(1) This field is transcribed from Part 6, Section D, Part 2, column D and is valid for DOD after 12/31/2010.
Field 09D6E - DSUE Portable Amount 6
(1) This field is transcribed from Part 6, Section D, Part 2, column E and is valid for DOD after 12/31/2010.
Field 09D6F - DSUE Date of Gift 6
(1) This field is transcribed from Part 6, Section D, Part 2, column F and is valid for DOD after 12/31/2010.
Field 09D7A - DSUE Deceased Spouse Name 7
(1) This field is transcribed from Part 6, Section D, Part 2, column A and is valid for DOD after 12/31/2010.
Field 09D7B - DSUE Date of Death 7
(1) This field is transcribed from Part 6, Section D, Part 2, column B and is valid for DOD after 12/31/2010.
Field 09D7C - DSUE Portability Election Indicator 7
(1) This field is transcribed from Part 6, Section D, Part 2, column C and is valid for DOD after 12/31/2010.
Field 09D7D - DSUE Portable Amount 7
(1) This field is transcribed from Part 6, Section D, Part 2, column D and is valid for DOD after 12/31/2010.
Field 09D7E - DSUE Portable Amount 7
(1) This field is transcribed from Part 6, Section D, Part 2, column E and is valid for DOD after 12/31/2010.
Field 09D7F - DSUE Date of Gift 7
(1) This field is transcribed from Part 6, Section D, Part 2, column F and is valid for DOD after 12/31/2010.
Math/Consistency Errors - Priority IV General (Form 706 series)
(1) A Priority IV error will display whenever the contents of one field are inconsistent with the contents of another field, or when a math computation is incorrect. These errors will be assigned a specific Error Code and will display in ascending Error Code order.
(2) The screen display will show the error code assigned and all the fields needed to make the correction.
For some math error codes, a field name "NC" will display for the entry of a Taxpayer Notice Code (TPNC). Multiple taxpayer notice codes may be entered when multiple XX(s) are shown. Previously assigned TPNC(s) will display on the right - hand side of Line 3 of the screen.
A field labeled "CL" will be shown for the entry of a Clear Code on records when a change or correction may not be needed. All coding and transcription errors must be corrected, and all IRM procedures applied BEFORE entering a "C" in the Clear Field.
(3) All errors must be solved by:
Eliminating the error.
Entering a Clear Code.
Entering a Taxpayer Notice Code.
Suspending the document with the correct AC.
Error Code 001 - Tax Year - Invalid Entry
(1) Fields Displayed - Error Code 001 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
01DOD | Date of Death | 8 |
01CCC | Computer Condition Code | 10 |
01RCD | Received Date | 8 |
01RD> | Return Due Date | 8 |
Invalid Conditions
(1) Error Code 001 will generate when any of the following conditions are present:
CCC "G"is not present - The processing date is equal to or more than two years and Nine months after the return due date or the IRS received date (whichever is later) and CCC "W" is not present.
CCC "G" is present - The processing date is equal to or more than two years and 9 months after the return due date and CCC "W" is not present.
"G"Coded and Non-"G"Coded Returns. The processing date is less than two years after the Return Due Date and Computer Condition Code "W" is present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Do not send the returns listed in the following table to Statue Control for clearance. Instead, do the following:Statute Control
If | Then |
|---|---|
| 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, Using If/Then Chart below:
If | Then |
|---|---|
Field 01RCD is blank |
|
CCC "W" was entered incorrectly | Delete CCC "W" from Field 01CCC. |
The return has a stamp that shows 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 |
Note: If a return is a 2020 and prior year original: due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2020 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired. |
Error Code 002 - Name Control Mismatch
(1) Fields Displayed - Error Code 002 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
CL | Clear Code | 1 |
01NC | Name Control/Check Digit | 4 |
>>>> | Name Control Underprint | 4 |
01SSN | Social Security Number | 9 |
S04NP | Is Section 04 not present |
|
04CON | "In-Care-of" Name | 35 |
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State | 2 |
04ZIP | ZIP Code | 12 |
Note: The literal "SECTION 04 NOT PRESENT" will display if no entries are in Section 04.
Invalid Conditions
(1) Error Code 002 will generate when the name control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF).
Correction Procedures
(1) Before taking any more 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 01SSN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the Error Resolution screen.
(3) Check for coding and transcription errors and correct as needed.
(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 decide the correct name. Following the If/Then Chart below:
If | Then |
|---|---|
The name on the return or attachment agrees with 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 ENMOD for pending name change. Note: When researching ENMOD for a SSN use the SSN with a V . |
There is a pending name change and it matches the name on the return. | Enter a "C" in the clear code field. |
No name change on ENMOD | Research NAMES/NAMEI for a new SSN. |
If a new SSN is located, verify the name control using CC INOLES. | Correct the SSN on the return and overlay Field 01SSN with corrected SSN. |
The SSN cannot be found | SSPND 320 to Entity Control, for further research using Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip. |
Suspense Corrections
(1) Back from Entity, Follow If/Then Chart:
If | Then |
|---|---|
Entity found a good SSN and the payment posted to the wrong SSN |
|
The payment posted correctly |
|
Payment cannot be located | Enter "C" in the Clear Code field. |
Error Code 003 - Check Digit Invalid
(1) Fields Displayed - Error Code 003 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
01NC | Name Control | 4 |
01SSN | Social Security Number | 9 |
Invalid Conditions
(1) Error Code 003 will generate when any of the following conditions are present:
A check digit is present but is not valid for the SSN.
The letters "E", "G", or "M" are present as Check Digits in Field 01NC.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information using If/Then Chart below.
If | Then |
|---|---|
The check digit in Field 01NC does not agree with the return or is not legible | Enter the name control from the return in Field 01NC. |
The SSN on the return is not legible | Research NAMES/NAMEI for correct SSN. |
(3) If a new SSN is located, verify the name control using CC INOLES. Using If/Then Chart.
If | Then |
|---|---|
The Name on the return agrees with the Name on INOLES |
|
Credit needs to be transferred or payment posted to the wrong account |
|
Unable to locate an SSN |
|
(4) Back from Entity Suspense Correction.
Research IDRS using BMFOL to decide if payments posted correctly. Follow If/Then Chart.
If | Then |
|---|---|
The payment posted to the wrong SSN |
|
The payment posted to the correct SSN | Enter the correct SSN in Field 01SSN. No further action required. |
The payment cannot be located | No action required. |
Error Code 004 - Name Control/SSN Validation
(1) Fields Displayed - Error Code 004 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
CL | Clear Code | 1 |
01NC | Name Control/Check Digit | 4 |
>>>> | Name Control Underprint | 4 |
01SSN | Social Security Number | 9 |
Invalid Conditions
(1) Error Code 004 will generate when any of the following conditions are present:
The SSN is not present on Master File (MF)
The Entity Index File (EIF) and the NAP were not accessed or were not operational, causing a blank underprint in Field 01NC.
Note: An underprint of "XXXX" shows that there is no account on the Master File, while a blank underprint shows that the NAP has not been accessed or was not operational.
Correction Procedures
(1) Before taking any more 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/SSN 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 01SSN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the Error Resolution screen.
(3) Check for coding and transcription errors and correct as needed.
(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 to decide the correct name control: Follow If/Then Chart for further instruction.
If | Then |
|---|---|
ENMOD has a pending name change and the name/name control matches the return Note: When searching ENMOD for a SSN use the SSN V |
|
The name on INOLES/ENMOD is different from the name on the return or attachment | Research NAMES/NAMEI for a new SSN. |
New SSN is found |
|
Credit needs to be transferred or payment posted to the wrong account |
|
An SSN can not be found |
|
Suspense Corrections
(1) Research IDRS to decide if payments posted incorrectly, follow If/Then chart for further action:
If | Then |
|---|---|
The payment posted to the wrong SSN |
|
The payment posted correctly |
|
Payment cannot be located | Enter "C" in the ClearCode field. |
Error Code 007 - Received Date is Earlier Than Date of Death
(1) Fields Displayed - Error Code 007 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
01DOD | Date of Death | 8 |
01RCD | Received Date | 8 |
Invalid Conditions
(1) Error Code 007 will generate when the IRS received date is equal to or earlier than the DOD.
Note: A person must be deceased before an estate tax return is filed. The purpose of this error is to prevent the filing of an estate tax return prior to death.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Using If and then chart.
If | And | Then |
|---|---|---|
Death certificate or other attachments to verify the DOD is not found |
|
|
DOD is verified | the IRS received date is still equal or earlier | Change the IRS received date to the day after the DOD and note on the top of the return "Estate and Gift (E&G): RETURN FILED YYYYMMDD, TAXPAYER DIED YYYYMMDD". |
Suspense Correction
(1) Check correspondence from the executor/representative for the death certificate or other proof of the DOD following If/Then chart.
If | Then |
|---|---|
The information requested has been received | Make the necessary corrections to the screen. |
The return was filed prior to death and the taxpayer has since died | Change the IRS received date to the day after the DOD, and note on the top of the return:
|
The correspondence received shows the taxpayer is not deceased | RJECT with AC 640. |
There is no response | Make the IRS received date one day after the DOD shown on the return. |
Error Code 010 - Amended Return "G" Coded
(1) Fields Displayed - Error Code 010 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
01CCC | Computer Condition Code | 10 |
01PIC | Penalty and Interest Code | 1 |
01CAF | CAF Indicator | 1 |
01RFC | Refund Code | 1 |
01PI | Payment Indicator | 1 |
Sections 02 through 09 are present | Sections 02 through 09 are present |
|
Invalid Conditions
(1) Error Code 010 will generate when CCC "G" is present, fields other than 01SSN, 01NC, 01DOD, 01CCC, 01DOB, 01RMIT, 01RCD and 01CRD are present, and Sections 02 - 09 are present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(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, follow If/Then chart for further instruction:
If | Then |
|---|---|
Return shows amended, revised, supplemental, corrected, or superseding | Research BMFOL, BRTVU, SUMRY, and/or TXMOD to decide if information is exactly the same as the posted return. |
All information is not the same |
|
All information is exactly the same |
|
A return is not posted for the tax year and the return is an amended return | Continue processing as an amended return. |
A return is not posted for the tax year and the return is not amended (G coded in error) |
|
Note: When deleting CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.
(4) If the return is zero balance and no entry appears in the underprint field and the RPS Indicator is present:
Enter $.01 in Field 0320.
Continue processing.
Error Code 011 - Remittance Amount/No data in Section 03/CCC "G" not present
(1) Fields Displayed - Error Code 011 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
RMIT> | Remittance |
01CCC | Computer Condition Code |
01RCD | Received Date |
Section 03 is not present. | Section 03 is not present. |
Invalid Condition
(1) Error Code 011 will generate when a remittance amount is present, and there is no data in Section 03 and CCC "G" is not present.
Correction Procedures
(1) Compare the displayed fields with the return. Follow If/Then chart for further instruction:
If | Then |
|---|---|
Data is present on the return for Section 03 fields |
|
The record is to be "G" coded |
|
There is no money amount in the RMIT> field, and an RPS/ISRP Indicator is present |
|
No data is present and where to apply the remittance amount (money) cannot be determined from the return |
|
Suspense Correction
(1) The Rejects Unit will retrieve the research and attempt to apply the remittance amount. If data is not found, then the Rejects Unit will correspond with the taxpayer following normal correspondence procedures. SSPND the record with AC 21X. Follow If/Then Chart below for further instruction.
If | Then |
|---|---|
The remittance is Non-RPS (blue or green rocker amounts) | Prepare Form 3244, Payment Posting Voucher, and renumber the return as a non-remittance return. |
The remittance is an Remittance Processing System (RPS) remittance |
|
The taxpayer does not reply and you cannot tell where to apply the remittance |
|
Error Code 014 - Missing Address Entries
(1) Fields Displayed - Error Code 014 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
04CON | "In-Care-of" Name | 35 |
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State Code | 2 |
04ZIP | ZIP Code | 12 |
Invalid Conditions
(1) Error Code 014 will generate when any of the following conditions are present:
If the street address is present, Field 04CTY and Field 04ST must be present, unless a Major City Code is used.
If a Major City Code is used, Field 04ADD must be present.
A City must be present. If the city is not in the Major City format, Field 04ST must be present. Field 04ADD can be blank.
A Major City Code is used and Field 04ST is present. If the State Code is equal to "AA", "AE" or "AP" and the corresponding ZIP code is present, the City must be APO, DPO, or FPO.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Follow If/Then Chart for further instruction of processing.
(3) Research any of the following for valid address information:
Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries
INOLE and ENMOD
If | And | Then |
|---|---|---|
A Major City Code is present | A street address is not available |
|
The Major City Code is correct | The state is present | Delete Field 04ST. |
The ZIP code or address cannot be corrected from the information on the return, attachments or from research |
| DLSEC 04. |
Error Code 015 - Foreign Address/State
(1) Fields Displayed - Error Code 015 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
04CON | "In-Care-of" Name | 35 |
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State | 2 |
04ZIP | ZIP Code | 12 |
Invalid Conditions
(1) Error Code 015 will generate when any of the following conditions are present:
Field 04ST has an entry other than "." (period/space) when Field 04FAD is present.
Field 04ZIP has an entry when Field 04FAD is present.
Note: The ZIP code must be present with an American Possessions address.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Compare displayed fields with the return. If incorrect, overlay the screen with the correct information. Using If/Then chart. Exhibit 3.12.263-14
If | Then |
|---|---|
A foreign address is present in Field 04FAD |
|
A foreign address is not present in Field 04FAD | Check return for foreign address. |
A foreign address is present on the return |
|
A foreign address is not present on the return |
|
Caution: Do not use the code for Canada if a province name or abbreviation is shown. See IRM 3.12.263.7.7.5, Foreign Address-Canada Only.
Error Code 016 - ZIP Code/State Mismatch
(1) Fields Displayed - Error Code 016 will display as follows:
Field Designator on Form 706 | Field Name | Field Length |
|---|---|---|
04CON | "In-Care-of" Name | 35 |
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State Code | 2 |
04ZIP | ZIP Code | 12 |
Invalid Conditions
(1) Error Code 016 will generate when the ZIP code is inconsistent with the Major City Code or State Code.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.
(3) Research any of the following for valid ZIP code information:
Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries.
INOLE and ENMOD.
(4) Enter the three digits followed by "01" of the first ZIP code listed for the applicable state in Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries. Follow If and Then Chart for further processing:
If | And | Then |
|---|---|---|
Unable to decide a valid ZIP Code from the return or attachment | A valid ZIP code is found through IDRS research | Enter the valid ZIP code found in Field 04ZIP. |
The address is in a major city | A Major City Code can be determined | Enter Major City Code in Field 04CTY. |
The address is in a major city | A Major City Code cannot be determined |
|
The address is not in a major city |
|
|
(5) APO/DPO/FPO Addresses - An APO, DPO, or FPO is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP code. For example, if the old address appears as "APO New York, NY 091XX", convert to read as "APO AE 091XX". See chart below for processing.
ZIP Code | Address | Abbreviation |
|---|---|---|
340XX | APO/DPO/FPO | AA |
090XX-098XX | APO/DPO/FPO | AE |
962XX-966XX | APO/DPO/FPO | AP |
Error Code 030 - P&I Code of "1" and Received Date is on or before RDD
(1) Fields Displayed - Error Code 030 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
01DOD | Date of Death |
01CCC | Computer Condition Code |
01RCD | Received Date |
01PIC | Penalty and Interest Code |
01RD> | Return Due Date |
Invalid Conditions
(1) Error Code 030 will generate when the Penalty and Interest Code of "1" is present and the IRS received date is on or before the return due ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. Using If/Then chart for further processing.
If | Then | |
|---|---|---|
The IRS received date after the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Delete "1" from Field 01PIC. | |
More than one date is present on the return | Use the earliest date. | |
The correct IRS received date is equal to or earlier than the due date | Delete "1" from Field 01PIC. | |
Error Code 034 - Correspondence Received Date
(1) Fields Displayed - Error Code 034 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
01DOD | Date of Death |
01RCD | Received Date |
01CRD | Correspondence Received Date |
01RD> | Return Due Date |
Invalid Conditions
(1) The correspondence received date is earlier than or the same as the IRS received date.
(2) The correspondence received date is earlier than or the same as the return due date.
(3) The correspondence received date is equal to or later than the processing date.
Correction Procedures
(1) Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.
(2) The IRS received date will either be stamped or edited on the return. See IRM 3.12.263.4.8.2, Field 01RCD - Received Date Correction Procedures, for the IRS received date instructions.
(3) A correspondence received date will be determined from the date the reply was received in the submission processing campus. Refer to the return for the correspondence received date. It is edited in the Entity section of the return. This can be verified by checking the stamped correspondence received date on the correspondence attached to the return. Follow If/Then Chart for processing procedures.
If | Then |
|---|---|
The correspondence received date is present and earlier than the return due date, or later than the processing date | Delete the correspondence received date from Field 01CRD. |
More than one correspondence received date is present | Use the earliest date. |
Error Code 073 - CCC "3" and 01CRD has entry
(1) Fields Displayed - Error Code 073 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
01CCC | Computer Condition Code |
01CRD | Correspondence Received Date |
Error Code 082 - Name Control disagrees with name line
(1) Fields Displayed - Error Code 082 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
01NC | Name Control |
04PNL | Primary Name Line |
Invalid Conditions
(1) Error Code 082 will generate when the name control does not agree with the first four non-blank positions following the lozenge (<) in the Primary Name Line.
Correction Procedures
(1) The following information pertains to correction procedures for Error Code 082.
If | Then |
|---|---|
The name control on the return and Field 01NC do not agree or were transcribed incorrectly | Change Field 01NC. |
The Primary Name Line on the return and Field 04PNL do not agree or were transcribed incorrectly | Change Field 04PNL. |
The Primary Name Line has been transcribed correctly in Field 04PNL, and the first four letters disagree with Field 01NC | Correct Field 01NC. |
It is not an obvious error | Research per local procedures. |
A correct name control cannot be found | SSPND with AC 320 to Entity Control using Form 10886,Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip. |
Error Code 084 - DOB =/>DOD - DOB/DOD > processing date
(1) Fields Displayed - Error Code 084 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
01DOB | Date of Birth |
01DOD | Date of Death |
Invalid Conditions
(1) The Date of Birth is equal to or greater than the Date of Death.
(2) The Date of Birth is greater than the processing date.
(3) The Date of Death is greater than the processing date.
Correction Procedures
(1) The following information pertains to correction procedures for Error Code 084.
If | Then |
|---|---|
The person was born and died the same day | Verify this through the birth certificate. If this is the case, change Field 01DOB to the day prior to the date in Field 01DOD. |
The Date of Birth cannot be determined | Delete Field 01DOB. |
Field 01DOD (Date of Death) is greater than the processing date |
|
Error Code 100 - 01PI/03USB
(1) Fields Displayed - Error Code 100 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
01PI | Payment Indicator |
0319 | Prior Payments |
03USB | U.S. Treasury Bond |
Section 03 is not present. | Section 03 is not present. |
Invalid Conditions
(1) Field 01PI (Payment Indicator) is 4, 5, 6 or 7 and there is not an amount in Field 03USB, U.S. Treasury Bond.
(2) Field 01PI is 0, 1, 2 or 3, and there is an amount in Field 03USB (U.S. Treasury Bond).
Note: Please note that only Codes zero and one are being used currently by Examination. Treasury Bonds are no longer being accepted as payment by Examination.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) The following table lists the Payment Indicator Codes for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return:
CODE | TREASURY BONDS (Prior Years) | SECTION 6166 or 6165(a) Installments | SECTION 6161 or 6163 EXTENSION |
|---|---|---|---|
0 | No | No | No |
1 | No | Yes | No |
2 | No | No | Yes |
3 | No | Yes | Yes |
4 | Yes | No | No |
5 | Yes | Yes | No |
6 | Yes | No | Yes |
7 | Yes | Yes | Yes |
Note: PAYMENT METHOD
(1) Treasury Bonds
(2) Section 6166 or 6165(a) Installment
(3) Section 6161 Extension
(4) Section 6163 Extension
Note: LOCATION
(1) Page 1, Line 23, Entry (Prior Years)
(2) Page 2, Part 3, Line 3;
If Yes box checked or attachment
(3) See attachment or annotation for Section 6161 extension
(4) Page 2, Part 3, Line 4, Yes box checked or attachment
Error Code 102 - 0203A/0203A computer
(1) Fields Displayed - Error Code 102 will be displayed as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
0201 | Total Gross Estate |
0202 | Total Allowable Deduction |
0203A | Tentative Taxable Estate |
>>>> | Tentative Taxable Estate Computer |
Invalid Conditions
(1) Error Code 102 will generate when the difference between Field 0203A and Field 0203A computer amounts exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 3a with the amount the computer has calculated for Field 0203A (Taxable Estate). To get Field 0203A, the computer subtracts Field 0202 (Total Allowable Deductions) from Field 0201 (Total Gross Estate). This field can be positive or zero.
(2) Check for coding and transcription errors and correct as needed. Using If/Then chart
If | Then |
|---|---|
Fields 0201 and 0202 are blank, but the Field 0203A has an amount |
|
There is no recapitulation sheet and there are no supporting schedules | SSPND with AC 211 and attach appropriate Correspondence Action Sheet. |
Transcribed correctly | Send the applicable TPNC. |
Field 0203A is increased | The maximum credit allowable in Field 02TBA (State death tax credit) also increases. |
Code and Edit has edited Line 13 (Field 02TBA) to show the total amount of state taxes paid | Send TPNC 90 in addition to other needed TPNCs. Use the TPNC that describes the source of the error (if there was an error made in computing taxable income, use a TPNC that states so). Suggested wording:
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. For a full listing of the programmed TPNC 90 Math Error Codes, see TPNC 90 Math Error Code Job Aid. Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt |
Code and Edit has not edited Line 13 (Field 02TBA) |
|
The taxpayer has not submitted information on state death and/or inheritance taxes paid | Do not change the taxpayer's amount. |
(3) Send TPNC 90 in addition to any other needed TPNCs. (Use the TPNC that describes the source of the error.) If there was an error made in computing taxable income, use a TPNC that states so. Use the suggested wording above.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
(4) The amount you entered exceeds the maximum credit. Error Code 122 will appear, See instructions for that error code.
Installments of Time to Pay
(1) The following information pertains to both installments of time to pay.
(2) Installments
When the taxpayer elects installments (IRC 6166), they check Box 3, Part 3, Page 2, of the return and/or attaches a statement to that effect.
Route these requests to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G for follow-up by Examination personnel using SSPND 370.
Reminder: All Form 4349, Computation of Estate Tax Due with Return and Annual Installment, will be prepared by personnel in the Compliance Services, Estate and Gift Tax Campus Operation. Neither Error Resolution nor Code and Edit examiners will prepare any Form 4349s, Computation of Estate Tax Due with Return and Annual Installment
Extensions of Time to Pay
(1) When the taxpayer requests an extension to make payment (IRC 6161 or IRC 6163), Installment Payment Election, they check Box 4, on Page 2, Part 3, of the return or attach a Form 4768, Application for Extension of Time To File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes. Extensions are granted for a year at a time. Further extensions must be made on separate requests and cannot exceed 10 years.
(2) If a math error occurs that affects the Balance Due/Overpayment (Field 03B/R) on an extension to pay, Error Resolution is to send the appropriate TPNC or otherwise correct the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, as shown by the specific section covering the error(s).
Suspense Correction
(1) Check correspondence from the taxpayer to obtain a recapitulation sheet.
If | Then |
|---|---|
Sufficient Reply Received |
|
Insufficient Reply or No Reply |
|
Applicable TPNCs
(1) The following information pertains to Error Code 102.
TPNC 64 - States, “Error was made in the computation of Taxable Estate.”
TPNC 90 - TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 103 - 0203C/Taxable Estate
(1) Fields Displayed - Error Code 103 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
0203A | Tentative Taxable Estate |
0203B | State Death Tax Deduction |
0203C | Taxable Estate |
>>>> | Taxable Estate Computer |
Invalid Conditions
(1) Error Code 103 will generate when the difference between Taxable Estate (Field 0203C) and Taxable Estate Computer exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 3c with the amount the computer has calculated for Field 0203C (Taxable Estate). To get Field 0203C, the computer subtracts Field 0203B (State Death Tax Deduction) from Field 0203A (Tentative Taxable Estate).
(2) Check for coding and transcription errors and correct as needed.
Caution: Check Field 01DOD to ensure the DOD from Page 1, Part 1, Box 5 was transcribed correctly.
(3) Send applicable TPNC if needed.
Applicable TPNCs
(1) The following information pertains to Error Code 102.
TPNC 64 - States, “We found a error in the computation of Taxable Estate.”
TPNC 90 - TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 104 0205/Net Taxable Estate
(1) Fields Displayed - Error Code 104 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
0203A | Tentative Taxable Estate |
0203B | State Death Tax Deduction |
0203C | Taxable Estate |
>>>> | Taxable Estate Computer |
0204 | Adjusted Taxable Gifts |
0205 | Net Taxable Estate |
>>>>> | Net Taxable Estate Computer |
Invalid Conditions
(1) Error Code 104 will generate when the difference between the Net Taxable Estate (Field 0205) and Net Taxable Estate Computer (Field 0205-) exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 5 with the amount the computer has calculated for Field 0205 (Net Taxable Estate). To get Field 0205, the computer adds Field 0203C (Taxable Estate Computer) and Field 0204 (Adjusted Taxable Gifts).
(2) Check for coding and transcription errors and correct as needed.
(3) The amounts in Fields 0203C and 0205 differ and there is no entry in Field 0204, Send the applicable TPNC.
(4) If underprint in Field 0205 is due to a negative entry by the taxpayer in Field 0204, when using 0204 as a positive entry, and the Field 0316 is still 0.00, then bring up the underprint.
(5) If a negative amount entered by the taxpayer on line 0204, when using line 0204 as a positive and would make 0316 an amount other than zero, then send the applicable TPNC.
(6) If TPNC 90 is required.
TPNC 90 - TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) The following information pertains to Error Code 104.
TPNC 90 - TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 106 - 0206/Tentative Tax
(1) Fields Displayed - Error Code 106 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01CCC | Computer Condition Code |
0205 | Net Taxable Estate |
>>>> | Net Taxable Estate Computer |
0206 | Tentative Tax |
>>>> | Tentative Tax Computer |
Invalid Conditions
(1) Error Code 106 will generate when the difference between Tentative Tax (Field 0206) and Tentative Tax Computer exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 6, with the amount the computer has calculated for Field 0206 (Tentative Tax). To get Field 0206, the computer calculates the tax on the amount in Field 0205 (Net Taxable Estate Computer), using the applicable Tax Rate chart.
(2) Check for coding and transcription errors and correct as needed. If transcribed correctly, send the applicable TPNC. Follow If/Then Chart below.
If | Then |
|---|---|
Field 0203C is increased | The maximum credit allowable in Field 02B(State Death Tax Credit) also increased. |
Code and Edit has edited Line 02B to show the total amount of state death taxes paid | Send TPNC 90 in addition to other needed TPNCs. Suggested Wording: Since your taxable estate has increased, the maximum that can be claimed as a state death tax credit has also increased. Based on the information available, we have attempted to recalculate the increased credit. If you did not submit evidence showing state death and/or inheritance taxes paid more than the amount you claimed on the return, please submit an amended return with this evidence. If you believe our calculation was incorrect, please submit an amended return along with supporting documents. Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt |
(3) Use the TPNC that describes the source of the error (if there was an error made in computing taxable income, use a TPNC that states so). Suggested wording: "Since your taxable estate has increased, the maximum that can be claimed as a state death tax credit has also increased. Based on the information available, we have attempted to recalculate the increased credit. If you did not submit evidence showing the state death and/or inheritance taxes paid and you paid more than the amount you claimed on the return, please submit an amended return with this evidence. If you believe our calculation was incorrect, please submit an amended return along with supporting documents".
(4) If Code and Edit has not edited Line 02B, GTSEC 02.
Check attachments for proof of state death and/or inheritance taxes paid (usually a copy of an assessment or return for state death and/or inheritance taxes paid).
If you find it, and the amount shown as paid is greater than the amount on Line 02B, enter the amount in Field 02B. If the taxpayer has not submitted information on state death and/or inheritance taxes paid, do not change the taxpayer's amount.
Send TPNC 90 in addition to any other needed TPNCs. Use the TPNC that describes the source of the error (if there was an error made in computing taxable income, use a TPNC that states so). See IRM 3.12.263.13.17.2, Error Code 102 Correction Procedures, for suggested wording. Follow If/Then Chart for further processing instructions.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
If | Then |
|---|---|
The amount you entered exceeds the maximum credit, Error Code 122 will appear | See instructions for that error code 122 IRM 3.12.263.13.31 |
|
|
A math error occurs which affects Balance Due/Overpayment (Field 03B/R) (Line 20 on Form 706) on an installment return or an extension to pay | See IRM 3.12.263.13.17, Error Code 102, for further instructions. |
Applicable TPNCs
(1) The valid TPNCs for Error Code 106 are 38 and 64. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following information pertains to Error Code 102.
TPNC 38 - States, “We found an error in the computation of Tentative tax.”
TPNC 64 - “States “We found an error in the computation of your Taxable Estate.”
TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 108 - 02NTT/Net Tax Tentative
(1) Fields Displayed - Error Code 108 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0205 | Net Taxable Estate |
>>>> | Net Taxable Estate Computer |
02GTT | Gross Tax Tentative |
02NTT | Net Tax Tentative |
>>>> | Net Tax Tentative Computer |
Invalid Conditions
(1) Error Code 108 will generate when the difference between Net Tax Tentative (Field 02NTT) and Net Tax Tentative Computer (Field 02NTT-) exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 7b (Tax Year 2001 and prior forms) with the amount the computer has calculated by subtracting $10,000,000 from the lesser of:
Field 0205 (Net Taxable Estate Computer).
$21,040,000 (for dates of death after January 1, 1988, up to December 31, 1997.)
Effective January 1, 1998, the phase-out range is $17,184,000.
(2) This computation is NOT done when:
The DOD is prior to 19880101.
Field 0205 (Net Taxable Estate Computer) is less than $10,000,000.
(3) The tax changes due to the correction made, Check for coding and transcription errors and correct as needed.
(4) When transcribed correctly, send the applicable TPNC.
Applicable TPNCs
(1) The valid TPNCs for Error Code 108 are 38 and 64. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertains to error code 108.
TPNC 38 - States, “An error was made in the computation of Tentative tax.”
TPNC 64 - States, “We found an error in the computation of your Taxable Estate.”
TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 110 - 02TNT/Total Net Tax Tentative
(1) Fields Displayed - Error Code 110 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0205 | Net Taxable Estate |
>>>> | Net Taxable Estate Computer |
02NTT | Net Tax Tentative |
>>>> | Net Tax Tentative Computer |
02TNT | Total Net Tax Tentative |
>>>> | Total Net Tax Tentative Computer |
Invalid Conditions
(1) Error Code 110 will generate when the difference between Total Net Tax Tentative (Field 02TNT) and Total Net Tax Tentative Computer (Field 02TNT-) exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 7c (Tax Year 2001 and prior forms), with the amount the computer has calculated by multiplying Field 02NTT (Net Tax Tentative Computer) by .05 (5 percent).
(2) This computation is NOT done when:
The DOD is prior to 19880101.
Field 0205 (Net Taxable Estate Computer) is less than $10,000,000.
(3) If the tax changes due to the correction made, check the coding and transcription errors and correct as needed. When transcribed correctly, Send the applicable TPNC.
Applicable TPNCs
(1) The valid TPNCs for Error Code 110 are 38 and 64. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following TPNC pertain to Error Code 110.
TPNC - 38 - States, ”We found an error in the computation of Tentative tax.”
TPNC - 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 112 - 02TTT/Total Transfer Taxes Tentative
(1) Fields Displayed - Error Code 112 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0206 | Tentative Tax |
>>>> | Tentative Tax Computer |
02TNT | Total Net Tax Tentative |
>>>> | Total Net Tax Tentative Computer |
02TTT | Total Transfer Taxes Tentative |
>>>> | Total Transfer Taxes Tentative Computer |
Invalid Conditions
(1) Error Code 112 will generate when the difference between Total Transfer Taxes Tentative (Field 02TTT) and Total Transfer Taxes Tentative Computer (Field 02TTT-) exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 8 (Tax Year 2001 and prior forms), with the amount the computer has calculated by adding Fields 0206 (Tentative Tax Computer) and 02TNT (Total Net Tentative Computer). See Exhibit 3.12.263-3, Form 706 United States Estate (and Generation-Skipping Transfer) (Prior Year 2010) Tax Return, for information regarding prior year returns and correction of Fields 02GTT, 02NTT, 02TNT, and 02TTT. If the tax changes due to the correction made, check for coding and transcription error and correct as needed. If transcribed correctly, send the applicable TPNC.
(2) Line 8 (Field 02TTT, "Total Transfer Taxes Tentative") is the sum of Lines 6 (Field 0206, "Tentative Tax") and 7c (Field 02TNT, "Total Net Tentative Tax"). If Field 02TTT is blank, but there are entries present in Fields 0206 and 02TNT, combine the total of the 2 fields and enter the result in Field 02TTT.
Note: If Line 7a exceeds $10,000,000, the taxpayer is required to enter the lesser of Line 5 (Field 0205, "Net Taxable Estate" )(also referred to on the Form 706 as "Add Lines 3 and 4"), or $17,184,000. If Line 5 (Field 0205) is $10,000,000 or less, the taxpayer is advised to skip Lines 7a (02GTT) and 7b (02NTTT) and enter -0- (zero) in Line 7c (02TNT). Check for taxpayer, coding and transcription errors.
Applicable TPNCs
(1) The valid TPNCs for Error Code 112 are 38 and 64. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 112
TPNC 38 - States, “An error was made in the computation of Tentative tax.”
TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 90 - is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 114 - 0208/Gross Estate Tax
(1) Fields Displayed - Error Code 114 will be displayed as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0206 | Tentative Tax |
02TTT | Total Transfer Taxes Tentative |
>>>> | Total Transfer Taxes Tentative Computer |
0207 | Aggregate Gift Tax |
0208 | Gross Estate Tax |
>>>> | Gross Estate Tax Computer |
Invalid Conditions
(1) Error Code 114 will generate when the difference between Gross Estate Tax (Field 0208) and Gross Estate Tax Computer (Field 0208>) exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 8 with the amount the computer has calculated by subtracting Field 0207 (Aggregated Gift Tax) from Field 02TTT> (Total Transfer Taxes Tentative Computer). If the tax changes due to the correction made, check for coding and transcription errors and correct as needed. If transcribed correctly, send the applicable TPNC.
Applicable TPNCs
(1) The valid TPNCs for Error Code 114 are 38, 64 and 70. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 114:
TPNC - 38 - States, “We found an error in the computation of Tentative tax.”
TPNC - 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC - 70 We found an error in the computation of the gross estate tax amount on Line 8.
TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 115 - 0209C/Restored Exclusion Amount (2012 and subsequent revisions)
(1) Fields Displayed - Error Code 115 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0209A | Basic Exclusion Amount |
0209B | DSUE Amount |
0209C | Restored Exclusion Amount |
>>>> | Restored Exclusion Amount Computer |
0209D | Applicable Exclusion Amount |
>>>> | Applicable Exclusion Amount Computer |
0209E | Applicable Credit Amount |
>>>> | Applicable Credit Amount Computer |
Invalid Conditions
(1) Error Code 115 will generate when the difference between Field 0209C (Restored Exclusion Amount) and Field 0209C> (Restored Exclusion Amount Computer) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Tax Examiners need to correct the reported Basic Exclusion Amount, Line 0209A, IRM 3.12.263.13.25.2, when there are no other exclusion entries (Deceased Spousal Unused Exclusion (DSUE) line 0290B or Restored Exclusion Amount (RE) line 0209C) and tax consequences.
If necessary correct Applicable Exclusion Amount (AEA) Line 0290D to match the Basic Exclusion Amount (BEA)
If Deceased Spousal Unused Exclusion (DSUE) Line 0290B or Restored Exclusion Amount (RE) Line 0290C is reported, then use Error Code procedures outlined in IRM.
Any change that requires or involves a correction to the reported Applicable Credit Amount (ACA) Line 0290E follow error coded procedures outlined in IRM.
Note: When making the changes listed above Do Not create a balance due situation.
(3) The computer compares the amount transcribed from Page 1, Part 2, Line 9C, with the amount the computer has calculated by using Field 01DOD (Date of Death) and the lesser of the taxpayer's amount or the Restored Exclusion Amount allowed for that year (see chart below).
Note: 2011 and subsequent amounts can be greater than table amount because of the Portability election.
Year (Date of Death) | Applicable Credit Amount |
|---|---|
2024 | $5,389,800 |
2023 | $5,113,800 |
2022 | $4,769,800 |
2021 | $4,625,800 |
2020 | $4,577,800 |
2019 | $4,505,800 |
2018 | $4,417,800 |
2017 | $2,141,800 |
2016 | $2,125,800 |
2015 | $2,117,800 |
2014 | $2,081,800 |
2013 | $2,045,800 |
2012 | $1,772,800 |
2010-2011 | $1,730,800 |
2009 | $1,455,800 |
2006 thru 2008 | $780,800 |
2005 | $555,800 |
2004 | $555,800 |
2002 - 2003 | $345,800 |
2000 - 2001 | $220,550 |
1999 | $211,300 |
1998 | $202,050 |
1987 thru 1997 | $192,800 |
Applicable TPNCs
(1) The valid TPNCs for Error Code 115 are 38, 43, 64, 70 and 73, and 90.. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 115
TPNC 38 - An error was made in the computation of Tentative tax
We found an error in the computation of the Applicable Credit amount.
Note: For Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return, use this TPNC for 2012 revisions and subsequent.
TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 70 - States, “We found an error in the computation of the gross estate tax amount on Line 8.”
TPNC 73 - States, “We found an error in the computation of the allowable credit amount.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 116 - 0209/Unified Credit (2011 and prior year revisions)
(1) Fields Displayed - Error Code 116 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0209 | Unified Credit |
>>>> | Unified Credit Computer |
Invalid Conditions
(1) Error Code 116 will generate when the difference between Unified Credit (Field 0209) and Unified Credit Computer (Field 0209>) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 9d with the amount the computer has calculated by using the Date of Death (Field 01DOD) and the lesser of the taxpayer's amount or the maximum credit allowed for that year (see chart below).
(2) The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (also known as TRUIRJCA) included provisions affecting the 2011 Form 706 (with a DOD in 2011), United States Estate (and Generation-Skipping Transfer) Tax Return. They include (but are not limited to): the applicable exclusion amount now may consist of (1) a basic exclusion amount of $5,000,000 and, (2) in the case of a surviving spouse, the unused exclusion amount (known as the DSUE, Deceased Spousal Unused Exclusion) of a predeceased spouse (who died after 12/31/2010). While there is nothing indicated on the 2011 Form 706 (e.g., a specific line) United States Estate (and Generation-Skipping Transfer) Tax Return, the taxpayer is instructed to make a note of the section 2010(c) election (or state something like, "see statement attached") and attach copies of the predeceased spouse's timely/completed return, even if there was no tax due, to allow the surviving spouse to use the predeceased spouse's unused exclusion amount.
Example: Taxpayer husband died 01/01/2011.
Taxpayer wife died 08/05/2011.
Husband reported estate tax of $607,529, so the unused credit would be $1,123,271 (that's the maximum unified/applicable credit amount of $1,730,800 - $607,529 tax = $1,123,271).
Wife reports estate tax of $2,044,738, and opts to use the deceased spouse's unused portion of $1,123,271, making the total unified credit amount $2,854,071 (that's the maximum unified/applicable credit of $1,730,800 + 1,123,271 DSUE = $2,854,071 which is more than the estate tax due), thus bringing the estate tax due to $.00.
(3) As of January 1, 2004, the Schedule T has been deleted. Prior years may still require a Schedule T. For prior years, if the amount in Field 0209 (Applicable Credit) is lower than the maximum amount of Unified Credit allowed for that year, the taxpayer may have filed a Schedule T (Qualified Family-Owned Business Interest (i.e., QFOBI)). If a Schedule T was filed, or if Line 24 (Page 3 of Form 706; or Part 5 (Recapitulation)) contains an entry, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Use the chart below for Unified Credit on Schedule T
Year (Date of Death) | Applicable Credit Amount |
|---|---|
2024 | $5,389,800 |
2023 | $5,113,800 |
2022 | $4,769,800 |
2021 | $4,625,800 |
2020 | $4,577,800 |
2019 | $4,505,800 |
2018 | $4,417,800 |
2017 | $2,141,800 |
2016 | $2,125,800 |
2015 | $2,117,800 |
2014 | $2,081,800 |
2013 | $2,045,800 |
2012 | $1,772,800 |
2010-2011 | $1,730,800 |
2009 | $1,455,800 |
2006 thru 2008 | $780,800 |
2005 | $555,800 |
2004 | $555,800 |
2002 - 2003 | $345,800 |
Applicable TPNCs
(1) The valid TPNCs for Error Code 116 are 38, 41, 64 , 70, and 90.. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706 for a complete listing of the TPNCs and their literal meanings.
(2) The following pertains to Error Code 116
TPNC 38 - States, “We found an error in the computation of Tentative tax.”
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount.”
Note: For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return use this TPNC for 2011 revisions and prior ONLY.
TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 70 - States, “We found an error in the computation of the gross estate tax amount on Line 8.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 117 - 0209D/Applicable Exclusion Amount (2012 and subsequent revisions)
(1) Fields Displayed - Error Code 117 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0209A | Basic Exclusion Amount |
0209B | DSUE Amount |
0209C | Restored Exclusion Amount |
>>>> | Restored Exclusion Amount Computer |
0209D | Applicable Exclusion Amount |
>>>> | Applicable Exclusion Amount Computer |
0209E | Applicable Credit Amount |
>>>> | Applicable Credit Amount Computer |
Invalid Conditions
(1) Error Code 117 will generate when the difference between Field 0209D (Applicable Exclusion Amount) and Field 0209D> (Applicable Exclusion Amount Computer) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) The computer compares the amount transcribed from Page 1, Part 2, Line 9D with the amount the computer has calculated by using Field 01DOD (Date of Death) and the lesser of the taxpayer's amount or the Applicable Credit Amount allowed for that year (see chart below).
Year (Date of Death) | Applicable Credit Amount |
|---|---|
2024 | $5,389,800 |
2023 | $5,113,800 |
2022 | $4,769,800 |
2021 | $4,625,800 |
2020 | $4,577,800 |
2019 | $4,505,800 |
2018 | $4,417,800 |
2017 | $2,141,800 |
2016 | $2,125,800 |
2015 | $2,117,800 |
2014 | $2,081,800 |
2013 | $2,045,800 |
2012 | $1,772,800 |
2010-2011 | $1,730,800 |
(3) The applicable exclusion amount equals the total of:
Line 9a: The basic exclusion amount, 2012 through 2015, as adjusted for inflation under 2010(c)(3), is:
Line 9b: The DSUE. If the decedent had a spouse who died on or after January 1, 2011, whose estate did not use all of its applicable exclusion against gift or estate tax liability, a DSUE amount may be available for use by the decedent's estate. If the predeceased spouse died in 2011, the DSUE amount was calculated and attached to their Form 706. If the predeceased spouse died in 2012 or after, this amount is found in Part 6, Section C of the Form 706 filed by the estate of the decedent's predeceased spouse. The amount to be entered on line 9b is calculated in Part 6, Section D.
Tax Year | Exclusion Amount |
|---|---|
2024 | $13,610,000 |
2023 | $12,920,000 |
2022 | $12,060,000 |
2021 | $11,700,000 |
2020 | $11,580,000 |
2019 | $11,400,000 |
2018 | $11,180,000 |
2017 | $5,490,000 |
2016 | $5,450,000 |
2015 | $5,430,000 |
Applicable TPNCs
(1) The valid TPNCs for Error Code 117 are 38, 43, 64, 70, 73, and 90. See IRM 3.12.263.3.12.3, TPNCs and Their Notice Messages for Form 706 for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 117
TPNC 38 - States, “We found an error in the computation of Tentative tax.”
TPNC 43 - States, “We found an error in the computation of the Applicable Credit amount.”
Note: For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, use this TPNC for 2012 revisions and subsequent.
TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 70 - States, “We found an error in the computation of the gross estate tax amount on Line 8.”
TPNC 73 - States, “We found an error in the computation of the Allowable Applicable Credit amount.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 118 - Field 0211 - Allowable Applicable Credit (2011 and prior revisions)
(1) Fields Displayed - Error Code 118 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0209 | Applicable Credit |
>>>> | Applicable Credit Computer |
0210 | Adjustment to Applicable Credit |
0211 | Allowable Applicable Credit |
>>>> | Allowable Applicable Credit Computer |
Invalid Conditions
(1) Error Code 118 will generate when the difference between Allowable Applicable Credit (Field 0211) and Allowable Unified Credit Computer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 11 with the amount the computer has calculated by subtracting the lesser of $6,000 or Field 0210 (Adjustment to Applicable Credit) from Field 0209 (Applicable Credit Computer). When tax changes due to the correction made, check for coding and transcription errors and correct as needed.
(2) The amounts in Field 0209 and Field 0211 differ or are blank and there is no entry in Field 0210. Follow If/Then Chart below.
If | Then |
|---|---|
The taxpayer and/or Code and Edit has left Field 0209 blank and the field must contain an amount | Enter the correct amount. Note: If the Form 706 is revision 08-2012 or 08-2013, input the amount that is entered or coded on Line 9e (Applicable Credit Amount) to Field 0209. |
The taxpayer and/or Code and Edit has left Field 0211 blank and the field must contain an amount | Enter the correct amount. |
The amount in Field 0209 is more than the amount in Field 0211 | Enter the difference in Field 0210. |
Transcribed correctly | Send the applicable TPNC. |
Applicable TPNCs
(1) The valid TPNCs for Error Code 118 are 38, 41, 64, 70 and 71, and 90. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 118.
TPNC 38 - States, “We found an error in the computation of Tentative tax.”
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount ”
Note: For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return use this TPNC for 2011 revisions and prior ONLY.
TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 70 - States, “We found an error in the computation of the gross estate tax amount on Line 8.”
TPNC 71 - States, “We found an error in the computation of the allowable Unified Credit amount on Line 11.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 119 - 0211/Allowable Applicable Credit Amount (2012 and subsequent revisions)
(1) Fields Displayed - Error Code 119 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0209D | Applicable Credit Amount |
>>>> | Applicable Credit Amount Computer |
0210 | Adjustment to Applicable Credit Amount |
0211 | Allowable Applicable Credit Amount |
>>>> | Allowable Applicable Credit Amount Computer |
Invalid Conditions
(1) Error Code 119 will generate when the difference between Field 0211 (Allowable Applicable Credit Amount) and Field 0211> (Allowable Applicable Credit Amount Computer) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 11 with the amount the computer has calculated by subtracting the lesser of $6,000 or Field 0210 (Adjustment to Applicable Credit Amount) from Field 0209D> (Applicable Exclusion Amount Computer). When the tax changes due to the correction made, check for coding and transcription errors are correct as needed.
(2) The amounts in Field 0209D and Field 0211 differ or are blank and there is no entry in Field 0210. Follow If/Then Chart
If | Then |
|---|---|
The taxpayer and/or Code and Edit has left Field 0209D blank and the field must contain an amount | Enter the correct amount. |
The taxpayer and/or Code and Edit has left Field 0211 blank and the field must contain an amount | Enter the correct amount. |
The amount in Field 0209 is more than the amount in Field 0211 | Enter the difference in Field 0210. |
Transcribed correctly | Send TPNC 43. |
Applicable TPNCs
(1) The valid TPNCs for Error Code 119 are 38, 43, 64, 70 , 73 and 90. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 119
TPNC 38 - States, “An error was made in the computation of Tentative tax.”
TPNC 43 - States, “We found an error in the computation of the Applicable Credit amount.”
Note: For Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return, use this TPNC for 2012 revisions and subsequent.
TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 70 - States, “We found an error in the computation of the gross estate tax amount on Line 8.”
TPNC 73 - States, “We found an error in the computation of the Allowable Credit Amount on Line 11.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 120 - 0212/Balance after Unified Credit
(1) Fields Displayed - Error Code 120 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
0208 | Gross Estate Tax |
>>>> | Gross Estate Tax Computer |
0211 | Allowable Applicable Credit |
>>>> | Allowable Applicable Credit Computer |
0212 | Balance After Unified Credit |
>>>> | Balance After Unified Credit Computer |
Invalid Conditions
(1) Error Code 120 will generate when the difference between Balance after Unified Credit (Field 0212) and Balance after Unified Credit Computer (Field 0212>) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 12 with the amount the computer has calculated by subtracting Field 0211 (Allowable Unified Credit) from Field 0208 (Gross Estate Tax Computer).
(2) Check for coding and transcription errors and correct as needed.
(3) If the preparer failed to do so, enter the appropriate Unified/Applicable Credit amount into Fields 0209 and 0211. See IRM 3.12.263.5.19, Unified/Applicable Credit Table.
(4) If the amount in Field 0208 is more than the amount in Field 0212, GTSEC 02 and enter the difference between Fields 0209D (Field 0209 for 2011 and prior revisions) and 0211 in Field 0210. Follow If/Then chart for Correction Procedures.
If | Then |
|---|---|
Code and Edit has changed what was a nontaxable return into a taxable return, and has not entered the appropriate amount for that return tax year | Enter appropriate applicable credit amount from below |
2024 | $5,389,800 |
2023 | $5,113,800 |
2022 | $4,769,800 |
2021 | $4,625,800 |
2020 | $4,577,800 |
2019 | $4,505,800 |
2018 | $4,417,800 |
2017 | $2,141,800 |
2016 | $2,125,800 |
2015 | $2,117,800 |
2014 | $2,081,800 |
2013 | $2,045,800 |
2012 | $1,772,800 |
2011 and 2010 | $1,730,800 |
2009 | $1,455,800 |
2006 thru 2008 | $780,800 |
2004-2005 | $555,800 |
2002-2003 | $345,800 |
Transcribed Correctly | Send Applicable TPNC |
Applicable TPNCs
(1) The valid TPNCs for Error Code 120 are 38, 41, 64, 70, 71, 72, and 90. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 120.
TPNC 38 - States, “We found an error in the computation of Tentative tax.”
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount.”
Note: For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return use this TPNC for 2011 revisions and prior ONLY.
TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 70 - States, “We found an error in the computation of the gross estate tax amount on Line 8.”
TPNC 71 - States, “We found an error in the computation of the allowable Unified Credit amount on Line 11.”
TPNC 72 - States, “We found an error in the computation of the amount on Page 1, Part 2, Line 12.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 122 - 02SDC/State Death Tax Credit (2011 and prior revisions)
(1) Fields Displayed - Error Code 122 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0203A | Tentative Taxable Estate |
>>>> | Tentative Taxable Estate Computer |
0203B | State Death Tax Deduction |
0203C | Taxable Estate |
>>>> | Taxable Estate Computer |
0212 | Balance After Unified Credit |
>>>> | Balance After Unified Credit Computer |
02TBA | Table B State Death Tax Credit |
>>>> | Table B State Death Tax Credit Computer |
02SDC | State Death Tax Credit |
>>>> | State Death Tax Credit Computer |
02BSD | Balance After State Tax Credit |
>>>> | Balance After State Tax Credit Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 13 (Tax Years 2002 through 2004; Line 15 for Tax Years 2001 and prior) with the amount the computer has calculated for the maximum state death tax credit. The computer calculates using the State Death Tax Rates. See Exhibit 3.12.263-7, Table B - Computing State Death Tax Credit (2004 - 1977).
(2) Check for coding and transcription errors and correct as needed. Follow If/Then chart.
(3) If transcribed correctly, send the applicable TPNC.
Note: For Tax Year 2005 and subsequent, the credit for State Death Taxes has been replaced by the State Death Tax Deduction. For returns with dates of death in 2005 - 2008 filed on a 2004 or prior year return with an entry on Line 13, correspond. If Line 13 contains a statement, comment, asterisk, or other notation, suspend 410 to Lead.
If | Then |
|---|---|
Field 0203C (Taxable Estate) is decreased | The maximum credit that can be claimed in Field 02TBA will also decrease. |
The amount claimed by the taxpayer is greater than the calculated maximum credit | 1. The field will underprint. Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. |
Field 0203C (Taxable Estate) is increased | 1. The maximum credit that can be claimed in Field 02TBA will also increase. See the instructions for Error Code 102 for more information. Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. |
You use the TPNC 90 described above | DO NOT include the TPNC 90 used for Error Codes 102 and 106. |
Transcribed correctly | Send the applicable TPNC. |
A Math error occurs that affects Balance Due/Overpayment (Field 03B/R) on an installment return or an extension to pay | See IRM 3.12.263.13.17, Error Code 102 for further instructions. |
(4) IMPORTANT: For Tax Years 2002, 2003, and 2004, the Credit for State Death Taxes is calculated at a lower percentage than for returns for Tax Years 2001 and prior. Although since 2002, it has been on Line 13, it was located on Line 15 for tax years 2001 and prior.
(5) Field 02TBA is transcribed from the dotted line located to the right of the arrow on Line 13 (Table B amount) Page 1, Part 2, and is the tax amount from Table B for Line 3c (Taxable Estate), subtract Line 2 from Line 1 minus $60,000. If the dotted line is blank and there is an entry in Line 3c (Taxable Estate), use the following instructions:
Check all coding and transcription errors and correct as needed. decide whether the tax period (Field 01TXP) is correct.
Look at the entry shown on Line 3c (Taxable Estate). If blank, this figure is obtained by subtracting Line 2 (Total Allowable Deductions) from Line 1 (Total Gross Estate) under Part 2 (Tax Computation).
Subtract $60,000 from Line 3 (Taxable Estate) to decide the figure described on the Table B Worksheet as the "Federal Adjusted Taxable Estate". (The $60,000 is the Adjustment figure shown on the worksheet. See Exhibit 3.12.263-7, Table B - Computing State Death Tax Credit (2004 - 1977), for details on computing this amount. Make a note of this amount, but DO NOT enter the result on the return.)
Instead subtract this figure from the Column 1 and Column 2 range amount from Table B. Multiply the result by the percentage in Column 4 and add that figure to the amount in Column 3. This equals the maximum credit for state death taxes to be entered on Line 13A (Field 02TBA).
Enter the applicable credit amount shown on Table B in Field 02TBA (and on the dotted line to the right of the arrow (>) on Line 13 of the return, if blank). The computer will calculate the entry for Line 13 (Field 02SDC) by multiplying Field 02TBA by the appropriate reduced credit percentage (e.g., for tax year 2002, multiply Field 02TBA by 75 percent; for tax year 2003, 50percent; and for tax year 2004, 25 percent). Edit the correction on Line 13 of the return, if different, placing an "X" to the left of the incorrect figure on Line 13 and the corrected figure to the left of the "X".
(6) The computer will display Error Code 122 and the computer underprint for Field 02TBA will display with the computer's calculation for maximum state death tax credit based on the formulas for Computing State Death Tax Credit After 1976. See Exhibit 3.12.263-7 Table B - Computing State Death Tax Credit (2004 - 1977).
(7) Overlay Field 02TBA with the computer underprint to clear the error condition. NOTE: The computer can correctly calculate the figure for Field 02SDC as long as an initial figure was entered in Field 02TBA.
(8) If Error Code 122 displays due to the Line 13 state tax credit incorrectly input into Field 02TBA, enter the taxpayer's Line 13 figure in Field 02TBA.
(9) When Error Code 122 displays, overwrite Field 02TBA with the computer underprint to clear the error condition.
(10) See IRM 3.12.263.5.23, Field 02TBA-Table B State Death Credit Tax, for more information, including handling of current and prior year returns and prior year revisions of Form 706.
Applicable TPNCs
(1) The valid TPNCs for Error Code 122 are 37, 38, 41, 64, 70, 71, 72, and 90. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 122.
TPNC 37 - States, “We found an error in the computation for State Death Taxes.”
TPNC 38 - States, “We found an error in the computation of Tentative tax.”
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount.”
Note: For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return use this TPNC for 2011 revisions and prior ONLY.
TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
TPNC 70 - States, “We found an error in the computation of the gross estate tax on Line 8.”
TPNC 71 - States, “We found an error in the computation of the allowable Unified Credit amount on Line 11.”
TPNC 72 - States, “We found an error in the computation of the amount on Page 1, Part 2, Line 12.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If the error is a result of a previous error and no additional error for this error code, then ripple that TPNC.
Error Code 124 - 02BSD/Balance after State Death Tax Credit (2011 and prior revisions)
(1) Fields Displayed - Error Code 124 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0212 | Balance After Unified Credit |
>>>> | Balance After Unified Credit Computer |
02TBA | Table B State Death Tax Credit |
>>>> | Table B State Death Tax Credit Computer |
02SDC | State Death Tax Credit |
>>>> | State Death Tax Credit Computer |
02BSD | Balance After State Tax Credit |
>>>> | Balance After State Tax Credit Computer |
Invalid Conditions
(1) Error Code 124 will generate when the difference between Balance After State Tax Credit (Field 02BSD) and Balance after State Tax Credit Computer (Field 02BSD-) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 14 (Tax Years 2002 through 2004) (This was Line 16 for Tax Years 2001 and prior), with the amount the computer has calculated by subtracting Field 02SDC (State Tax Credit Computer) from Field 0212 (Balance After Unified Credit Computer).
(2) Check for coding and transcription errors and correct as needed. If transcribed correctly, send the applicable TPNC.
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error. If the error is due to a subtraction error, use TPNC 90. Suggested language: "An error was made in subtracting Line 13 from Line 12 on Page 1, Part 2."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Error Code 126 - 0315/Total Credits
(1) Fields Displayed - Error Code 126 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
03GTC | Gift Tax Credit |
0313 | Foreign Tax |
0314 | Prior Transfer |
0315 | Total Credits |
>>>> | Total Credits Computer |
Invalid Conditions
(1) Error Code 126 will generate when the difference between Total Credits (Field 0315) and Total Credits Computer (Field 0315-) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 15 with the amount the computer has calculated by adding Field 0313 (Foreign Tax) and Field 0314 (Prior Transfer).
(2) Check for coding and transcription errors and correct as needed. Following If/Then chart.
If | Then |
|---|---|
There are no amounts shown by the taxpayer on Line 13 or 14 | Check the return for applicable supporting schedules and calculations. Enter any amounts found on their respective lines. |
There are no supporting schedules or calculations | SSPND with AC 211 for supporting schedules or calculations. |
Transcribed correctly | Send the applicable TPNC. |
Suspense Procedures
(1) Check correspondence from the taxpayer to applicable schedules and calculations.
IF | THEN |
|---|---|
Reply received from taxpayer and is a complete reply |
|
If NO Reply or Incomplete reply | Enter a CCC "3" in field 01CCC and continue processing the return. |
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
TPNC 34 - States, “Error made on Schedule P- Credit for Foreign Death Taxes.”
TPNC 35 - States, “Error made on Schedule Q- Credit for Tax on Prior Transfers.”
TPNC 39 - States, “Error made under Tax Computation when credit amounts were added.”
TPNC 82 - States, “Error was made in computing the tax credits on Line 15.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Error Code 128 - 0316/Net Estate Tax
(1) Fields Displayed - Error Code 128 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
02BSD | Balance After State Death Tax Credit |
>>>> | Balance After State Death Tax Credit Computer |
0315 | Total Credits |
>>>> | Total Credits Computer |
0316 | Net Estate Tax |
>>>> | Net Estate Tax Computer |
Invalid Conditions
(1) Error Code 128 will generate when the difference between Net Estate Tax (Field 0316) and Net Estate Tax Computer (Field 0316-) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 16, with the amount the computer has calculated by subtracting Field 0315 (Total Credit Computer) from Field 02BSD (Balance After State Tax Credit Computer).
(2) Check for coding and transcription errors on lines 9 through 16 and correct as needed. Follow If/Then chart for further processing.
If | Then |
|---|---|
There is no amount in Field 0315 and the amounts in Fields 02BSD and 0316 differ | 1. If either Fields 02BSD or 0316 are blank and an amount must be present, enter the correct amount. |
Transcribed correctly | Send the applicable TPNC. |
Suspense Procedures
(1) Check correspondence from the taxpayer for applicable schedules and calculations.
IF | THEN |
|---|---|
Reply received from taxpayer and is a complete reply |
|
If NO Reply or Incomplete reply | Enter a CCC "3" in and continue processing the return. |
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 36 - States, “We found an error in the computation of Net Estate Tax.”
Error Code 129 - 0318/Total Transfer Taxes computer
(1) Fields Displayed - Error Code 129 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
0316 | Net Estate Tax |
>>>> | Net Estate Tax Computer |
0317 | GST Tax |
03SEC | Section 4980A Tax (Schedule S was deleted as of 1/1/98) |
0318 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
Invalid Conditions
(1) Error Code 129 will generate when the Total Transfer Taxes Computer (Field 0318-) exceeds $9,999,999,999.99.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 18, with $9,999,999,999.99 (the maximum amount the computer will accept as a tax).
(2) Check for coding and transcription errors and correct as needed.
(3) If the tax truly exceeds $9,999,999,999.99, SSPND with AC 610.
Suspense Procedures
(1) Enter the maximum amount allowable on the original return. Recompute the tax data and enter the corrected amount in the fields. (Do not send a taxpayer notice code.)
(2) Annotate on the original return, "Dummy Return prepared due to overflow document."
(3) Prepare a "Dummy Return" by computing and entering the remaining overflow amount(s) for the appropriate fields.
(4) On the top of the "Dummy Return", write "Prepared from Overflow Return". Enter the data from the original return, CCC "G" and in the signature area write "Signature on Original Return". Put the DLN from the original return on the bottom of the return. Attach routing slip to the completed "Dummy Return". Send to batching for numbering and processing.
Error Code 130 - 0318/Total Transfer Taxes
(1) Fields Displayed - Error Code 130 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
0316 | Net Estate Tax |
>>>> | Net Estate Tax Computer |
0317 | Generation-Skipping Transfer Tax |
03SEC | Section 4980A |
0318 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
Invalid Conditions
(1) Error Code 130 will generate when the difference between Total Transfer Taxes (Field 0318) and Total Transfer Taxes Computer (Field 0318-) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 18, with the amount the computer has calculated by adding Field 0316 (Net Estate Tax Computer), Field 0317 (Generation-Skipping Transfer Tax) and Field 03USB.
(2) Check for coding and transcription errors and correct as needed. Follow If/Then chart for further processing.
If | Then |
|---|---|
There is no amount shown by the taxpayer on Lines 17 (or 23 (prior year Form 4980A Tax), Collection and Taxpayer Service Data Report | Check the return for applicable supporting schedules and calculations. Enter any amounts found on their respective lines. |
There are no supporting schedules or calculations, and the difference between Lines 16 and 23 (Field 03USB) (prior year (2004 and prior) only field).≡ ≡ ≡ ≡ ≡ ≡ | SSPND with AC 211 to correspond with the taxpayer. |
Transcribed correctly | Send the applicable TPNC. |
Suspense Procedures
(1) Check correspondence from the taxpayer for applicable schedules and calculations.
IF | THEN |
|---|---|
Complete reply |
|
If NO Reply or Incomplete reply | Enter a CCC "3" in and continue processing the return. |
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
TPNC 47 - States, “We found an error on Schedule R in the computation of your Total Generation-Skipping Transfer Tax.”
TPNC 83 - States, “We found an error in the computation of your total tax amount.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Error Code 132 - 03PMT/Total Payments (2011 and prior revisions)
(1) Fields Displayed - Error Code 132 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
0319 | Prior Payments |
03USB | U.S. Treasury Bonds |
03PMT | Total Payments |
>>>> | Total Payments Computer |
Invalid Conditions
(1) Error Code 132 will generate when the difference between Total Payments (Field 03PMT) and Total Payments Computer (Field 03PMT>) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 19 (Line 24 for Tax Years 2002 through 2004 and Line 26 for Tax Years 2001 and prior), with the amount the computer has calculated by adding Field 0322 (Line 22 on Form 706) (Prior Payments) and Field 03USB (Line 23 on Form 706) (U.S. Treasury Bonds) on Form 706.
(2) Check for coding and transcription errors and correct as needed. If the only entry found is on Line 19 (Field 03PMT), check attachments. Transcribed correctly, Enter the Line 19 (Field 03PMT) amount onto Field 0319.
Error Code 134 - 03B/R - Balance Due/Overpayment
(1) Fields Displayed - Error Code 134 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
0318 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
03PMT | Prior Payments |
>>>> | Total Payments Computer |
03B/R | Balance Due/Overpayment |
>>>> | Balance Due/Overpayment Computer |
Invalid Conditions
(1) Error Code 134 will generate when the difference between Balance Due/Overpayment (Field 03B/R) and Balance Due/Overpayment Computer (Field 03B/R>) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part 2, Line 20, (Line 25 for years 2002 through 2004; Line 28 for years 1997 and prior; Line 27 for years 1998 through 2001) with the amount the computer has calculated by subtracting Field 03PMT (Total Payments) from Field 0318 (Total Transfer Taxes Computer). Enter this field as negative for refunds or positive for balance due.
(2) Check for coding and transcription errors and correct as needed.
Note: The taxpayer may request installment privileges under IRC 6166, Installment Payment Election.
Note: or a postponement of a payment under IRC 6163, Election Examination either by an attachment and/or notes on the return or by checking the Yes box on Page 2, Part 3, Line 3 or Line 4. If a "0" has been edited or transcribed into Field 01PI (you will have to GTSEC 01 to check), change the "0" to a "1" and SSPND 370 to Compliance.
(3) Delete any penalties and interest included in Field 0320 (Form 706). If transcribed correctly, send the applicable TPNC.
Applicable TPNCs
(1) The valid Taxpayer Notice Codes for Error Code 134 are 37, 38, 40, 41, 64, 70, 72, and 90. See IRM 3.12.263.3.12.3, TPNC’s and Their Notice Messages for Form 706, for a complete listing of the TPNCs and their literal meanings.
(2) The following pertain to Error Code 134:
TPNC 37 -States, “We found an error in the computation for State Death Taxes. “
TPNC 38 - States, “An error was made in the computation of Tentative tax.”
TPNC 54 - States, “We found an error in the computation of the balance due or overpayment amount.”
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount. “
Note: For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return use this TPNC for 2011 revisions and prior ONLY.
TPNC 64 -States, “We found an error in the computation of your Taxable estate.”
TPNC 70 - States, “We found an error in the computation of the gross estate tax amount on Line 8.”
TPNC 72 - States, “We found an error in the computation of the amount on Page 1, Part 2, Line 12.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Error Code 136 - CCC "Y"/DOD < 01-01-1977/MCT not zero or is significant
(1) Fields Displayed - Error Code 136 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
01CCC | Computer Condition Code |
0318 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
03MCT | Manually Corrected Total Transfer Taxes |
SO3NP | Section 03 not present |
Purpose
(1) This error code provides for manual calculation of estate taxes in the situations it is needed.
Combat Zone Returns are returns of citizens or residents of the U.S. who were killed in action or who died as a result of wounds, disease, or injury received while serving in a Combat Zone. These estates are taxed at preferential rates. They are taxed at the estate tax rates in effect as of 1926 (when the maximum rate was 20 percent).
Returns of individuals who died prior to January 1, 1977. The taxes on these individuals are generally higher than they are for individuals dying after that date (due to increases in the Unified Credit and decreases in the maximum rate).
(2) This error code catches math errors when the difference between Field 0318 (Line 18 on Form 706) and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Invalid Conditions
(1) CCC "Y" is present or,
(2) The DOD is prior to January 1, 1977, and
(3) Field 03MCT (Manually Corrected Total Transfer Taxes) is not zero or is significant.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If CCC "Y" is present, or the DOD is prior to January 1, 1977, you must calculate the tax manually. Verify all fields on the return down to Balance Due/Overpayment.
Using the amount on Line 5, Part 2, calculate the tentative tax amount on Line 6. See Exhibit 3.12.263-6, Table A Unified Tax Rate Schedule
Using the amount on Line 5, Part 2, calculate the maximum allowable state death tax credit for Line 13A (Field 02TBA). See Exhibit 3.12.263-7, Table B - Computing State Death Tax Credit (2004 - 1977), If the amount calculated is more than Line 13B (Field 02SDC), use the taxpayer's amount for Line 13A (Field 02TBA). If the amount calculated is less than the Line 13A (Field 02TBA) amount, use the computed amount for state death tax credit.
See IRM 3.12.263.5.13, Unified/Applicable Credit Table, Field 0209 - Unified Credit, to use the chart for the correct amount of Unified Credit for Line 9, Part 2.
Compute all lines on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, using the correctly calculated amounts.
Enter the amount of tax for Line 18 in Field 03MCT. If the computed tax is zero, enter "$.01" in Field 03MCT.
If the tax is out of balance by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, have another tax examiner verify the tax computation.
If the tax is out of balance, send the applicable TPNC.
(3) Rule of Two
Under normal circumstances, the computer and the taxpayer agree on the computation of the tax. This satisfies the Rule of Two.
On the usual type of return with a TRUE MATH ERROR, the computer and the tax examiner will agree on the computation of the tax. This satisfies the Rule of Two.
On a manually-computed return with a TRUE MATH ERROR, the Rule of Two is not satisfied until 2 tax examiners arrive at the same tax computation.
Error Code 138 - 01RFC/Refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more" one" not present
(1) Fields Displayed - Error Code 138 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
01CCC | Computer Condition Code |
01RFC | Refund Code |
03B/R | Balance Due/Overpayment |
>>>> | Balance Due/Overpayment Computer |
Purpose
(1) To save the Service money on interest, returns with refunds of $1,000,000 or more are expedited. This error code makes sure that proper action has been taken on such returns.
Invalid Conditions
(1) Error Code 138 will generate when the refund is $1,000,000 or more, and the Refund Code of "1" is not present in Field 01RFC.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) SSPND using AC 341.
Caution: Paragraphs (3) and (4) below are for tax examiners working Form 706 that have already been SSPND 341.
(3) Once a manual refund has been issued according to local procedures, input a "1" in Field 01RFC and an "O" in Field 01CCC.
Note: See IRM 3.12.263.3.2.2, Refund Returns (45 - day Jeopardy and Large Dollar Refunds), to ensure the refund is issued timely.
(4) If the condition is being resolved and a manual refund will NOT be issued, input a "1" in Field 01RFC only.
Error Code 999 - End of Year
(1) Fields Displayed - Error Code 999 will display as follows:
Field Designator on Form 706 | Field Name |
|---|---|
01RCD | Received Date |
Section 01 Data, Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States General Information
(1) Form 706-NA is processed only at Kansas City Submission Processing Center (KCSPC).
(2) Section 01 has entity data, remittance, fields for codes, the IRS received date, and miscellaneous information.
(3) The remittance field cannot be changed by Error Resolution examiners. This field must be blank on non-remittance returns and all numeric on remittance returns.
(4) The message "Unrecognizable Field Error - Contact Supervisor" will appear when a return has neither CCC "G" or Section 04 and there is an entry in Field 01PI.
Error Record Format - Section 01
(1) Fields Displayed for Section 01:
Field | Maximum | Field Name | Location |
|---|---|---|---|
RMIT> | 11 | Remittance | Green Money, Page 1, Part ll, Line 16 |
01NC | 4 | Name Control/ | Decedent's last name, Page 1, Part 1, Box 1b |
>>>> | 4 | Name Control Underprint | Generated |
01SSN | 9 | Social Security Number | Decedent's SSN, Page 1, Part 1, Box 2 |
01RCD | 8 | Received Date | Date Stamp |
01DOB | 8 | Date of Birth | Page 1, Part 1, Box 7a |
01DOD | 8 | Date of Death | Page 1, Part 1, Box 6 |
>>>> | 2 | Fiscal Year Month Generated | Upper left margin |
01CCC | 10 | Computer Condition Code | Top left corner |
01PIC | 1 | Penalty and Interest | Upper right margin |
01CAF | 1 | CAF Indicator | Right margin of Page 1, Part 1, Box 10b. |
01RFC | 1 | Refund Code | ERS only field |
01PSN | 9 | Preparer (PTIN) | Bottom right corner, Page 1 |
01PEN | 9 | Preparer EIN | Bottom right corner, Page 1 |
01PTN | 10 | Preparer Phone Number | Bottom right corner, Page 1 |
01PI | 1 | Payment Indicator | Right margin, Page 1, Part ll, Line 16 |
01EXP | 1 | Expatriate Code | Lower left margin |
01CRD | 8 | Correspondence Received Date | Below Page 1, Part 1, Box 11b |
01RD> | 8 | Return Due Date | Generated |
Remittance - RMIT>
(1) This field is blank for non-remittance returns and remittance returns processed through the Remittance Processing system. It is a non-correctable field.
(2) The remittance amount is found on the Balance Due Line of a full paid return and is shown by a green rocker. A partial paid return has the remittance amount entered in green beside the taxpayer's entry on the Balance Due line.
Field 01NC - Name Control/Check Digit
(1) This field is transcribed from the name line in the entity portion of the return. This field must be the first four alpha characters of the last name.
Invalid Conditions
(1) Field 01NC is invalid if:
It is blank.
The first position is not alpha.
The second, third and fourth positions are not alpha, hyphen or blank.
There are any intervening blanks between characters.
Correction Procedures
(1) The following information pertains to correction procedures for Field 01NC.
If | Then |
|---|---|
The name control has been transcribed incorrectly | Enter the correct name control. |
The name control is missing and cannot be found | Research using local procedures. |
Name control is found | Enter the correct name control in Field 01NC and on the return. |
You are still unable to decide the name control | Suspend the record with AC 320 to Entity Control, using Form 10886, Reject or Routing Slip, or Form 10886, Intra-SC Reject or Routing Slip. |
Field 01SSN - Social Security Number
(1) The SSN is a number assigned by the Social Security Administration (SSA) to identify potential Social Security contributors/recipients. The field is found on Page 1, Part 1, Box 2 of the return.
Note: Social Security Number has been replaced with U.S. taxpayer ID number because at times nonresident aliens have TIN’s or Individual Taxpayer Identification Numbers (ITIN’s), even if they do not have SSN’s.
Invalid Conditions
(1) Field 01SSN is invalid if:
It is blank.
It is not all numerics.
It is less than nine - digits.
It is all zeroes or nines.
Correction Procedures
(1) Compare the return and attachments with the screen and correct as needed.
(2) The following information pertains to correction procedures for Field 01SSN.
If | Then |
|---|---|
A valid SSN is not found | Research using IDRS to obtain a valid SSN.
|
New SSN is Found | Overlay the new SSN in Field 01 SSN and on the return. |
The decedent has no SSN | The executor is instructed to use the decedent’s EIN. SSPND with AC 320 to Entity Control for a temporary SSN using Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip. |
A valid SSN cannot be found by research | SSPND with AC 320 using Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip for further research. |
You find more than one SSN | SSPND with AC 320 using Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip for further research. |
(3) Suspense Correction:
If | Then |
|---|---|
Entity Control has found the correct SSN | Enter it in Field 01SSN and on the return. |
Entity Control has assigned an SSN | 1. Enter it in Field 01SSN and on the return. |
Field 01DOB Date of Birth
(1) This field is transcribed from Page 1, Part I, Box 7a of the return. The Date of Birth is either blank or numeric in YYYYMMDD format.
Field 01DOD Date of Death
(1) The Date of Death determines the due date of the return. It also determines which tax laws and rates are in effect for the estate.
(2) This field is transcribed from Page 1, Part 1, Box 6 of the return. It is entered in YYYYMMDD format.
Invalid Conditions
(1) Field 01DOD is invalid if:
It is blank.
It is not all numerics.
The month is not 01-12.
The day is not valid for the month.
Not in YYYYMMDD format.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed. Following If/Then chart.
If | Then |
|---|---|
The DOD is blank, incomplete, or illegible on the return | Check attachments. |
Date of Death found | Enter in 01 DOD |
The DOD cannot be found | SSPND with AC 211 and attach appropriate Correspondence Action Sheet. |
A reply to correspondence is received with date of death | Enter the Date of death in field 01 DOD and correspondence received date in 01CRD |
A reply to correspondence is not received | The Reject function must:
|
Field 01CCC Computer Condition Code
(1) CCC’s are transcribed from the upper left - hand corner of the return. The following CCC’s will be used for Form 706-NA. Enter the condition codes in the upper left corner of the return.
(2) CCC "D" is no longer edited by Code & Edit or ERS when a reason is given for failure to pay taxes timely, see exception.
Note: Exception: Secured internally prepared returns: For secured returns (e.g., returns notated with "Process as Original" with a attached Form 13133) or Prepared returns (e.g., returns notated "6020(b)") or ("SFR") (Substitute for Return), enter the applicable CCC as indicated on the return and/or attached form
(3) "G" - Amended Return - CCC "G" must be entered on returns marked "Amended", "Superseding", "Duplicate", "Corrected", "Supplemental", "GST Tax Return Form 709-NA," etc. CCC "W" and/or "3" can be used with a "G" code.
Note: Taxpayers may send a copy of the front page of their return with a payment. These copies may get numbered and processed. If correspondence is needed for missing information and the return is marked "COPY", research BMFOLI/BMFOLT and/or BRTVU for duplicate returns.
(4) "L" - Treaty Based Positions - Enter CCC "L" if the filer has written "IRC 6114" on the return or if Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7001(b), is attached to the return.
(5) "O" - Module Freeze - Enter CCC "O" if a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), is attached to the return. These show that a pre settlement manual refund was made. (The freeze is released by posting Transaction Code 840.)
Note: See IRM 3.12.263.3.2.2 Refund Returns (45-day-Jeopardy and Large Dollar Returns)
(6) CCC "R" is no longer edited by Code & Edit or ERS when a reason is given for a delay in filing timely, see exceptions.
Note: Exception: Secured internally prepared returns: For secured returns ( e.g., returns notated with "Process as Original" with a attached Form 13133), or Prepared returns (e.g., returns notated "6020(b)") or ("SFR") (Substitute for Return), enter the applicable CCC as indicated on the return and/or attached form.
(7) Enter CCC "W" when the return has been stamped Cleared by Statute. A return that has been cleared by the Statute Control function will be stamped Cleared by Statute. Enter CCC "W". The coding and editing must be completed on the return, unless other unprocessables conditions are found.
(8) Return Settlement Frozen - Enter CCC "X" when taxpayer shows that excess remittance with return or overpayment be applied to another account.
(9) Manual Tax Computation Required - Enter CCC "Y" for Combat Zone Returns, returns of citizens or residents of the U.S. who were killed in action or who died as a result of wounds, disease, or injury received while serving in a Combat Zone. These estates have their own tax schedule, so Error Resolution must compute the tax manually.
(10) Reasonable Cause Statement Denied - Use when the taxpayer's statement for failure to file or pay taxes timely does not meet reasonable cause criteria. If CCC "D" and "R" are present, do not enter CCC "7". However, CCC "7" may be present with CCC "D" or "R". Send 1342C if Code and Edit hasn’t done so.
(11) "3" - No Reply to Correspondence - Suppress Credit Interest - Enter this code when no reply to correspondence is received from the taxpayer. It suppresses credit interest.
Purpose
(1) CCC’s tell the computer what to do when certain conditions are met. For example, CCC "D" stops the computer from calculating a delinquency penalty when the taxpayer presents reasonable cause for filing the return late. Since these codes tell the computer what to do, they also post to the Master File so that people looking at the file can tell what actions were taken on the return.
Invalid Conditions
(1) Field 01CCC is invalid if:
Any letter or number other than the following is entered: D, G, L, O, R, W, X, Y, 3, and 7.
CCC "G" is present with any other CCC except "W".
CCC’s "D", "R" and "7" are all present.
More than 10 codes are present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) When the codes entered on the return are illegible or invalid, check the return to decide the correct code(s) and enter on the screen.
(3) If any other CCC’s are present with CCC "G" and "W" and/or "3", delete the other codes if the "G" is needed. If the "G" code is not needed, delete it and leave the other codes.
(4) If CCC's "D" and "R" are present with CCC "7", decide which is correct and delete the incorrect CCC.
(5) Form 706-NA have only 10 CCC’s. Only six can be valid at the same time. You will not see more than 10 codes. If you do, delete any invalid codes. Check the codes to ensure that no other invalid conditions are met and correct if necessary with the instructions found in this paragraph.
Field 01RCD - Received Date
(1) Field 01RCD is transcribed from the stamped or edited date in the center of Page 1 of Form 706-NA. The IRS received date is entered in YYYYMMDD format and must be present on all Form 706-NA.
Invalid Conditions
(1) Field 01RCD is invalid if:
It is not present.
It is not all numerics.
The month is not 01-12.
The day is not valid for the month.
It is not in YYYYMMDD format.
It is prior to the ADP date (January 1, 1962).
The IRS received date is after the processing date.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If the IRS received date is illegible or missing, decide the correct IRS received date in the following priority;
Postmark Date (or date stamped in margin by Receipt and Control function). Do not consider private metered mail dates as postmark dates unless "PO" or "USPS" is indicated. See IRM 3.12.263.4.8.2, Field 01RCD-Received Date, for a list of the IRS designated private delivery services.
Service Center Automated Processing System, (SCAMPS) digital date.
Revenue officer's signature date.
Signature date.
Julian Date minus 10 days.
If more than one date is stamped, use only the earliest date. Circle out all others.
If a return has been identified as unprocessables and the taxpayer has been contacted for more information, do not change the original IRS received date, but also enter correspondence received date (Field 01CRD).
Field 01PIC - Penalty and Interest Code
(1) The Penalty and Interest Code is transcribed from the top right-hand corner of Form 706-NA. Field 01PIC must be coded "1" when the return was ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and displays an amount for precomputed penalty and interest.
Field 01CAF - CAF Indicator
(1) Editing of CAF codes is no longer required.
(2) Form 2848, Power of Attorney and Declaration of Representative (POA), and Form 8821, Tax Information Authorization (TIA) are forwarded to the Central Authorization File Unit (CAF) by the Code and Edit function.
Correction Procedures
(1) If a code is present on the screen, clear Field 01CAF.
(2) Leave a "limited" Power of Attorney attached to the return. A "limited" Power of Attorney restricts the authorization to the preparation of the return to which it is attached.
(3) Original documents, photocopies, or documents submitted by facsimile transmission (FAX) are acceptable for processing.
(4) The Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization, must contain the following information:
The name, SSN and address of the taxpayer. For Form 8821, Tax Information Authorization only 2 of the 3 items are needed.
The name and address of the designated representative (Power of Attorney) or appointee (TIA).
The type of return (individual, corporate, etc.) and the tax form number.
The tax year(s) or period(s). For Form 8821, Tax Information Authorization, only, the signature date must be within 60 calendar days of the IRS received date if the request is for non-tax purpose, such as a student loan, mortgage loan, etc.
The taxpayer's signature and date of signature.
For Form 2848, Power of Attorney and Declaration of Representative, only, a signed and dated declaration of good standing from the representative.
(5) If the POA/TIA is received, not attached to any return or document, route to the submission processing campus CAF function. If the authorization is attached to the correspondence, review the correspondence to decide if other requests were made. If they were, photocopy the correspondence and send the copy along with the authorization to the CAF function for processing. If not, send correspondence and authorization to the submission processing campus CAF function for processing.
(6) Do not detach and send POAs/TIAs filed for specific issues unless the document authorizes recognition for a return besides the specific issue. In that case, a copy of the POA/TIA must be sent to the CAF function to input the return portion by the CAF system. Examples of specific issues include but are not limited to the following:
Form 843, Claim for Refund and Request for Abatement.
Form SS-4, Application for Employer Identification Number
(7) "General Powers of Attorney" or "Durable Powers of Attorney" do not contain sufficient information to process on CAF and must be left attached to the related return. However, if a general or durable power of attorney is submitted with a completed Form 2848, Power of Attorney and Declaration of Representative, (a transmittal power of attorney), send both forms to the CAF function for processing.
Field 01RFC - Refund Code
(1) The Refund Code is entered on Error Resolution to show that a refund of $1,000,000 or more has been issued. (Field 01RFC is also entered by Error Resolution, examiners whenever Error Code 488 appears.)
(2) Due to the large amounts of interest we would pay if a refund of this size is not handled timely, these returns will have the refund processed manually.
Field 01PSN - Preparer’s Tax Identification Number (PTIN)
(1) The Preparer's SSN is located at the bottom right corner of Form 706-NA.
(2) The Preparer's SSN must be a nine - digit numeric character. The SSN cannot be all zeros or nines.
(3) A PTIN is a valid entry in the Preparer's SSN area at the bottom of Form 706-NA. The PTIN is an eight digit number preceded by the alpha "P" (e.g., PXXXXXXXX).
(4) Delete the Preparer's SSN or PTIN if it is invalid.
Field 01PEN - Firm’s EIN
(1) The Firm's EIN is located below the Preparer's PTIN box at the bottom right corner of Form 706-NA (Page 1).
(2) The Firm's EIN must be a nine - digit numeric character. The EIN cannot be all zeros or nines.
(3) Delete the Preparer's EIN if it is invalid.
Field 01PTN - Preparer Phone Number
(1) The Paid Preparer's Phone Number is located below the Firm's EIN at the bottom right corner of Form 706-NA (Page 1).
(2) No action is required on amended returns.
(3) If a complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, edit to the "Phone no." line.
(4) If a complete Paid Preparer's Phone Number is not located or the number is illegible, delete the incomplete or illegible phone number.
Field 01PI - Payment Indicator
(1) This field is transcribed from the right bottom margin next to Page 1, Part II, Line 16.
(2) This indicator shows when deferments are granted, and/or when U.S. Treasury bonds are submitted in payment of the estate tax.
Invalid Conditions
(1) Field 01PI is invalid if it is blank (other than for valid "G" coded returns), or
(2) The field contains anything but a "0", "2", "4" or "6".
Correction Procedures
(1) If blank or invalid (this does not apply to valid "G" coded returns), enter the correct code from the table below.
Code | Condition |
|---|---|
0 | If there are no entries on Line 15 (Lines 18 or 19 for Tax Years 2004 and prior), or entries on line 15 for 2005 and subsequent returns. Note: All 2005 and subsequent returns will be coded with a 0 |
2 | If there is an entry on Line 18 only (Tax Years 2004 and prior). |
4 | If there is an entry on Line 19 only (Tax Years 2004 and prior). |
6 | If there is an entry on Line 15 (entries on both Lines 18 and 19 for Tax Years 2004 and prior). |
Field 01EXP - Expatriate Indicator
(1) This field is transcribed from the lower left margin of Form 706-NA.
Field 01CRD - Correspondence Received Date
(1) This field is transcribed from the center of Page 1, Part 1, Line 9 of Form 706-NA. When needed, the correspondence received date is edited in YYYYMMDD format. The date stamped on the return takes priority over the edited date.
(2) The 45-day interest free period for processing refund returns does not begin until we receive the return in a processable format. If we correspond for missing information, the correspondence received date must be input to the Master File for the purpose of computing credit interest.
Invalid Conditions
(1) Field 01CRD is invalid if the field does not contain one of the following:
All blanks.
The month is not 01-12.
The day is not valid for the month.
A valid YYYYMMDD format.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If more than one Correspondence Receive Date (CRD) is present, use the earliest CRD.
(3) The CRD will be determined from the date the reply was received in the submission processing campus. If the reply was not date stamped, use the U.S. Postal Service postmark date on the envelope attached to the reply. Enter the CRD in Field 01CRD and to the left of Page 1, Part 1, Box 11b of the return EXCEPT in the following situations: Follow If/Then chart for procedures to follow for further processing.
Correspondence was unnecessary or issued in error.
The correspondence reply was received prior to the due date of the return.
The correspondence was required because the IRS made a processing error (a request was made for a return or schedule that we lost during processing).
If | Then |
|---|---|
No reply or the correspondence was undeliverable | Enter a CCC "3" in the top left-hand corner of Page 1 of Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States and in Field 01CCC. Entering the CCC "3" suppresses credit interest. |
The date is illegible | Check the attached correspondence which bears an IRS received date stamp for the correct date. |
Field 01RD> - Return Due Date
(1) This is a computer-generated field that calculates the return due date as nine months after the DOD in YYYYMMDD format.
Exception: If the date of death is between January 1, 2010, and December 17, 2010 (inclusively); the return due date is September 19, 2011, as mandated in the Extender's Legislation (PL 111-312).
(2) This field is used to decide if a return is filed timely. If the return is filed late, it is used to calculate any applicable penalties and interest.
Section 02 Data Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States, General Information
(1) Section 02 field designators, line numbers, field lengths and titles are listed below. It is transcribed in dollars and cents. Field 0203 may be positive only.
(2) This section is required unless Field 01CCC contains a CCC "G".
(3) The computer will not math verify this section if:
The Date of Death (Field 01DOD) is prior to 01/01/1977.
The DOD is invalid.
(4) On a "G" coded, amended return, Section 02, 03 and 04 cannot be present. If Section 03 is present, the screen will state that Section 02 is missing. To clear the screen, DLSEC 03.
Processing Field Errors
(1) Correct transcription errors if the field is not entirely numeric.
(2) If the money amounts on a return exceeds the maximum field length allowable, reject with AC’s 610 or 611.
Suspense Correction
(1) Enter the maximum amount allowable on the original return. Recompute the tax data and enter the corrected amount(s) on the screen display and the return. DO NOT SEND A TAXPAYER NOTICE CODE.
(2) Write on the original return, "Dummy Return prepared due to overflow document".
(3) Prepare a "Dummy Return" by computing and entering the remaining overflow money amount(s) for the correct fields. Enter the following data on the "Dummy Return":
On the top of the return write "Prepared from Overflow Return".
Entity data from the original return.
The DLN from the original return.
CCC "G" in Field 01CCC.
In the signature area write "Signature on Original Return".
(4) Attach routing slip to the completed "Dummy Return" and send to Receipt and Control to have the "Dummy Return" numbered and processed.
Error Record Format Section 02
(1) The Error Record Format for Section 02 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
0201 | 12 | Total Gross Estate | Page 1, Part II, Line 1 |
0202 | 12 | Adjusted Taxable Gifts | Page 1, Part II, Line 2 |
0203 | 12 | Taxable Estate | Page 1, Part II, Line 3 |
>>>> | 12 | Taxable Estate Computer |
|
0204 | 12 | Tentative Tax | Page 1, Part II, Line 4 |
>>>> | 12 | Tentative Tax Computer |
|
0205 | 12 | Tentative Tax Tangible | Page 1, Part II, Line 5 |
>>>> | 12 | Tentative Tax Tangible |
|
0206 | 12 | Gross Estate Tax | Page 1, Part II, Line 6 |
>>>> | 12 | Gross Estate Tax |
|
0207 | 12 | Unified Credit | Page 1, Part II, Line 7 |
>>>> | 12 | Unified Credit |
|
0208 | 12 | Balance after Unified Credit | Page 1, Part II, Line 8 |
>>>> | 12 | Balance after Unified Credit |
|
02SDC | 12 | State Death Tax Credit | Page 1, Part II, Line 9 (Tax Years 2004 and prior) |
>>>> | 12 | State Death Tax Credit |
|
02BSD | 12 | Balance after State Death Tax Credit | Page 1, Part II, Line 10 (Tax Years 2004 and prior) |
>>>> | 12 | Balance after State Death Tax Credit |
|
0209 | 12 | Other Credits | Page 1, Part II, Line 9 |
0210 | 12 | Prior Transfer Credit | Page 1, Part II, Line 10 |
0211 | 12 | Total Credits | Page 1, Part II, Line 11 |
>>>> | 12 | Total Credits |
|
0212 | 12 | Credit for Tax on Prior Transfers | Page 1, Part II, Line 12 (Tax Year 2008 and prior) |
>>>> | 12 | Credit for Tax on Prior Transfers |
|
0213 | 12 | Total Credits | Page 1, Part II, Line 13 (Tax Year 2008 and prior) |
>>>> | 12 | Total Credits |
|
Field 0201 - Total Gross Estate
(1) This field is transcribed from Page 1, Part II, Line 1 of the return and is verified by Code and Edit tax examiners. It is transferred from Page 2, Part III, Schedule B, Line 9 of the return. The amount transcribed will be either the taxpayer's amount or the examiner's corrected amount. It must be entered in dollars and cents.
(2) This line shows the U.S. sourced taxable estate of the decedent. After certain gifts given during life are added back, this amount provides the basis upon which the estate tax (before credits or other adjustments) is calculated.
Field 0202 - Adjusted Taxable Gifts
(1) This field is transcribed from Page 1, Part II, Line 2 of the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Purpose
(1) Estate and gift taxes have a unified tax structure. Tax is calculated on assets given as gifts after December 31, 1976, as well as assets owned at death. Therefore, those gifts not excludable under the Code must be added to the taxable estate to decide the amount upon which estate tax can be imposed.
Field 0203 - Taxable Estate
(1) This field is transcribed from Page 1, Part II, Line 3 of the return. It is computed by adding Page 1, Part II, Lines 1 and 2 (Fields 0201 and 0202). This field is positive.
(2) This is the amount on which after certain gifts given during life are added back, the estate tax (before credits or other adjustments) is calculated.
Field 0204 - Tentative Tax
(1) This field is transcribed from Page 1, Part II, Line 4. The computer figures the tax in this field by using the amount in Taxable Estate Computer and two tax tables.
(2) This is the basic estate tax, subject to adjustments.
Field 0205 - Tentative Tax Tangible
(1) This field is transcribed from Page 1, Part II, Line 5. It is the total amount of gift tax paid on gifts made after December 31, 1976.
Purpose
(1) Gifts made after December 31, 1976, are included in an estate. The gift and estate taxes are not separate taxes. Rather, they are designed to impose a tax on transfer of assets, whether made during life or upon death. This line gives a credit against estate tax for gift taxes paid. Were this not so, an individual would have to pay tax on the gift twice, once when they made the gift and again at death.
Field 0206 - Gross Estate Tax
(1) This field is transcribed from Page 1, Part II, Line 6 (Field 0206). It is computed by subtracting Page 1, Part II, Line 5 (Field 0205) from Page 1, Part II, Line 4 (Field 0204).
(2) See IRM 3.12.263.15.7.1, Field 0205 Tentative Tax Tangible Purpose, for the reasons this field allows gift taxes paid to be subtracted from estate tax.
Field 0207 - Unified Credit
(1) This field is transcribed from Page 1, Part II, Line 7. The computer will math verify this field by using the Date of Death (Field 01DOD) and the Unified Credit amounts.
(2) Unified Credit is the lesser of Gross Estate Tax (Field 0206) or the generated Maximum Unified Credit.
Note: Unified Credit amount is $13,000. Unified Credit for 2023 if Section 2209 is used: The greater of $13,000 or $46,800 multiplied by Gross Estate Located in U.S. (Line 1, Schedule B) divided by Entire Gross Estate (Line 3, Schedule B).
Purpose
(1) The Unified Credit is similar to the standard deduction or personal exemption allowed on an individual income tax return. Individuals do not pay income tax on income that is less than the total amount of the standard deduction or personal exemption. Nor do they pay estate or gift taxes on gifts or bequests whose total tax is less than the Unified Credit. There are two differences between the Unified Credit and the standard deduction/personal exemption. First, the Unified Credit is a credit against tax, not a deduction from income or assets. The credit is subtracted against the estate tax, not the total amount of the estate. Second, the Unified Credit is larger than the standard deduction/personal exemption. The current Unified Credit of $13,000 for most nonresident aliens exempts from estate and gift tax the first $60,000 given as a gift or as a bequest.
Field 0208 - Balance After Unified Credit
(1) This field is transcribed from Page 1, Part II, Line 8 (Field 0208). It is computed by subtracting Page 1, Part II, Line 7 (Field 0207) from Page 1, Part II, Line 6 (Field 0206).
(2) This field allows the Unified Credit as adjusted to be subtracted from the estate tax.
Field 02SDC - State Death Tax Credit
(1) This field is only used for returns with a DOD prior to 2005. Line 9 (Field 0209) was deleted after Tax Year 2004.
(2) This field is transcribed from Page 1, Part II, Line 9 (Field 02SDC).
(3) Every state imposes some sort of tax on assets transferred at death. This can take the form of an estate tax (the estate pays tax on assets) or an inheritance tax (the heirs pay tax on what they receive), or both. A credit is allowed on these taxes paid against the federal estate tax up to certain percentage limitations.
(4) On June 7, 2001, the President signed into law Pub. L. No. 107-16, 115 Stat. 38 (2001), entitled, "The Economic Growth and Tax Relief Reconciliation Act of 2001", which introduced sweeping changes to the Estate and Gift Tax program. Among those changes, this legislation eventually phases out the Estate Tax over the next 10 years (with only a Gift Tax at a 35 percent maximum tax rate remaining after 2009) and introduces the repeal of the State Death Tax Credit in 2005. Meanwhile, the State Death Tax Credit is being reduced as follows:
25 percent reduction (for decedent’s dying during 2002)
50 percent reduction (for decedent’s dying during 2003)
75 percent reduction (for decedent’s dying during 2004)
Finally, repealed (for decedent’s dying during 2005)
Note: This credit will be replaced by a deduction on Schedule K for State Death Taxes paid.
Field 02BSD - Balance After State Death Tax Credit
(1) This field is only used for returns with a DOD prior to 2005. Line 10 was deleted after Tax Year 2004.
(2) This field is transcribed from Page 1, Part II, Line 10 (Field 02BSD). It is computed by subtracting Page 1, Part II, Line 9 (Field 02SDC) from Page 1, Part II, Line 8 (Field 0208).
Purpose
(1) Every state imposes some sort of tax on assets transferred at death. This can take the form of an estate tax (the estate pays tax on assets) or an inheritance tax (the heirs pay tax on what they receive), or both. A credit is allowed on these taxes paid against the federal estate tax up to certain percentage limitations. This field does the math to subtract the credit from the estate tax.
Field 0209 - Other Credits
(1) This field is transcribed from Page 1, Part II, Line 9 (Field 0209).
Purpose
(1) Field 0209 is used by the estate to report other tax credits, including a credit against estate tax for gift tax paid on property that is part of the estate and a credit available under treaty provisions for certain Canadian decedents.
Field 0210 - Credit for tax on prior transfers
(1) This field is transcribed from Page 1, Part II, Line 10 (Field 0210).
Purpose
(1) If a taxpayer pays estate tax on a property given to an heir who dies from two years before to 10 years after the donors death, a credit is available to the estate of the heir. It has been deemed unfair to subject the property to another estate tax when the property was held by the heir for such a short period of time.
(2) The credit allowed is a percentage of the amount determined under formulas in 2013. The percentage is based on the number of years after the donors death that the heir dies.
Years after donors death that heir dies | Percentage Allowed |
|---|---|
1 and 2 | 100 percent |
3 and 4 | 80 percent |
5 and 6 | 60 percent |
7 and 8 | 40 percent |
9 and 10 | 20 percent |
Field 0211 - Total Credits
(1) This field is transcribed from Page 1, Part II, Line 11 (Field 0211). It is computed by adding Page 1, Part II, Lines 9 and 10 (Fields 02SDC and 02BSD).
(2) These credits are added to reach a total which will be subtracted from the estate tax.
Field 0212 - Credit for Tax on Prior Transfers
(1) This field is transcribed from Page 1, Part II, Line 12 (Field 0212 for tax year 2008 and prior).
Section 03 Data, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States General Information
(1) Section 03 field designators, line numbers, field lengths and titles are listed below. This section is transcribed in dollars and cents.
(2) Field 03B/R (Line 16 on Form 706-NA, Balance Due/Overpayment) can be positive or negative.
Error Record Format - Section 03 (Form 706-NA), United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States
(1) The Error Record Format for Section 03 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
0312 | 12 | Net Estate Tax | Page 1, Part II, Line 12 |
>>>> | 12 | Net Estate Tax |
|
0313 | 12 | GST Tax | Page 1, Part II, Line 13 |
03SEC | 12 | Section 4980A | Page 1, Part II, Line 16 (Tax Years 1997 and prior) |
0314 | 12 | Total Transfer Taxes | Page 1, Part II, Line 14 |
>>>> | 12 | Total Transfer Taxes |
|
0315 | 12 | Earlier Payments | Page 1, Part II, Line 15 |
03USB | 12 | U.S. Treasury Bonds | Page 1, Part II, Line 18 (Tax Years 2004 and prior) |
03PMT | 12 | Total Payments | Page 1, Part II, Line 19 (Tax Years 2004 and prior) |
>>>> | 12 | Total Payments |
|
03IN | 12 | Gross In U.S. | Page 2, Part III, Schedule B, Line 1 |
03OUT | 12 | Gross Out U.S. | Page 2, Part III, Schedule B, Line 2 |
03DTD | 12 | State Death Tax Deduction | Page 2, Schedule B, Line 7 |
03B/R | 12 | Balance Due/Overpayment | Page 1, Part II, Line 16 |
>>>> | 12 | Balance Due/Overpayment | Page 1, Part II, Line 16 |
03MCT | 12 | Manually Corrected Total Transfer Taxes | Page 1, Part II, Line 16 (dotted portion) |
Field 0312 - Net Estate Tax
(1) This field is transcribed from Page 1, Part II, Line 12 (Field 0312). It is computed by subtracting Page 1, Part II, Line 11 (Field 0211) from Page 1, Part II, Line 8 (Field 0208).
Field 0313 - GST Tax
(1) This field is transcribed from Page 1, Part II, Line 13 (Field 0313).
(2) Generation-Skipping tax is the third type of transfer tax. It imposes tax at the maximum estate tax rate on certain transfers meant to avoid estate tax.
Field 03SEC - Section 4980A
(1) This field is only used for tax years prior to 1998. Line 16 was deleted after tax year 1997.
(2) This field is transcribed from Page 1, Part 2, Line 16 (Field 03SEC). It is still on ERS display screen (Field 03SEC).
Field 0314 - Total Transfer Taxes
(1) This field is transcribed from Page 1, Part II, Line 14 (Field 0314). It is computed by adding Page 1, Part II, Lines 12 and 13 (Fields 0312 and 0313).
Field 0315 - Earlier Payments
(1) This field is transcribed from Page 1, Part II, Line 15.
(2) This field may be filled in on amended returns or when a prepayment of tax occurs on returns with extensions to file. It shows estate taxes previously paid.
Field 03USB - U.S. Treasury Bonds
(1) This field is only used for returns with dates of death prior to 2005. Line 18 was deleted after Tax Year 2004.
(2) This field is transcribed from Page 1, Part II, Line 18 (Field 03USB).
Purpose
(1) Certain Treasury Bond issues (commonly called "Flower Bonds") can be used to pay estate taxes. If used to do so, the value of the bond is the higher of par (the face value of the bond) or the fair market value. This practice can save estate taxes. It is like being able to use a $50.00 savings bond prior to maturity to buy a $50.00 item even though you would get less money if you cashed it in. However, you only get this benefit if the bond is used to pay taxes after your death.
Example: A taxpayer buys a "Flower Bond" with a face value of $1,000 for $900. The taxpayer then dies in a plane crash. The bond can be used to pay $1,000 in estate taxes even though the bond is only worth $900.
(2) The Treasury Department lost the authority to issue these bonds (except for certain short term bills) in 1971. The latest maturity date is 1998.
Field 03PMT - Total Payments
(1) This field is only used for returns with dates of death prior to 2005. Line 19 was deleted after Tax Year 2004.
(2) This field is transcribed from Page 1, Part II, Line 19 (Field 03PMT). It is computed by adding Page 1, Part II, Lines 17 and 18 (Fields 0318 and 0319).
Field 03IN - Gross In U.S.
(1) This field is transcribed from Page 2, Part III, Schedule B, Line 1.
(2) This field shows the amount of U.S. assets subject to estate taxation. It is also used to help decide certain ratios for the calculation of Unified Credit, deductions for expenses, claims, etc.
Field 03OUT - Gross Out U.S.
(1) This field is transcribed from Page 2, Part III, Schedule B, Line 2 (Field 03OUT).
(2) This field shows the amount of Non-U.S. assets not subject to estate taxation. It is used to help decide certain ratios for the calculation of Unified Credit, deduction for expenses, claims, etc.
Field 03DTD - State Death Tax Deduction
(1) This field is transcribed from Page 2, Schedule B, Line 7 (Field 03DTD), of the return.
(2) The state death tax credit has been repealed for estates of decedent’s dying after December 31, 2004. Beginning in 2005, the credit was replaced with a state death tax deduction against the value of the gross federal estate.
Field 03B/R - Balance Due/Overpayment
(1) This field is transcribed from Page 1, Part II, Line 16 (Field 03B/R). It is computed by subtracting Page 1, Part II, Line 15 (Field 0315) from Page 1, Part II, Line 14 (Field 0314).
(2) This field shows if the estate owes money or is due a refund.
Field 03MCT - Manually Corrected Tax
(1) This field is the manually computed amount of Total Transfer Taxes and will be entered only by Error Resolution. It is entered on the dotted portion of Page 1, Part II, Line 16.
(2) This field is only used if the decedent died prior to 1/1/77. In these instances, the tax must be manually calculated.
Section 04 Data, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States
(1) The following information pertains to Section 04 data.
Error Record Format Section 04
(1) The Error Record Format for Section 04 is listed as follows:
Field | Maximum | Field Name | Location |
|---|---|---|---|
04PNL | 28 | Primary Name Line Decedent | Page 1, Part I, Box 1a and 1b for (2019 revision). Box 1a for (2013 revision). |
04EXE | 35 | Executor | Page 1, Part I, Box 9a for (2019 revision). 9a or 10a for (2013 revision). |
04CON | 35 | "In-Care-of" Name | Page 1, Part 1, Box 9b or 10b (2013 revision). |
04FAD | 35 | Foreign Address | Page 1, Part 1, Box 9b or 10 b. (2013 revision). |
04ADD | 35 | Street Address | Page 1, Part I, Box 9b or 10b |
04CTY | 22 | City/Major City | Page 1, Part 1, Box 9b or 10b (2013 revision). |
04ST | 2 | State Code | Page 1, Part 1, Box 9b (for (2019 revision). Box 9b or 10b for (2013). |
04ZIP | 12 | ZIP Code | Page 1, Part 1, Box 9b (2019 revision). 9b or 10b for (2013 revision). |
(2) Section 04 cannot be present on a "G" coded return. If present, DLSEC 04.
Field 04PNL - Primary Name Line Decedent
(1) This field is transcribed from Page 1, Part I, Box 1a (Field 04PNL). The field must be present unless CCC "G" is present.
(2) Although the total field is "35" characters, the number of characters that can be input is limited to "28" because the word "ESTATE" is generated when going to the Master File.
(3) Entities are established by the input of entity return data. If the name is changed, the change is also made by entity.
(4) This field shows the name of the decedent for whom the estate tax return is being filed.
Invalid Conditions
(1) Field 04PNL is invalid if any of the following conditions are present:
The field is completely blank.
The field contains characters other than alpha, less than sign (<), hyphens (-), and blanks.
A character follows two consecutive blanks.
The first position contains a blank.
No less than sign (<) is present.
One less than sign (<) is present and is followed by a blank.
For taxpayers with only one name, a hyphen present in the first position followed by a less than (<) is not found.
The field contains more than two less than signs (<)’s.
Less than signs (<) cannot appear in consecutive positions.
The first or last position of the field contains a less than (<).
Field 04EXE - Executor
(1) This field is transcribed from Page 1, Part I, Box 9a or 10a (Field 04EXE). The field must be present except when "G" coded.
(2) This field identifies the person responsible for the estate.
Invalid Conditions
(1) Field 04EXE is invalid if any of the following conditions are present:
The field contains other than alpha characters, numeric characters, hyphens, ampersands, or blanks.
Any character other than alpha or numeric is found in the first position.
A character is followed by two consecutive blanks.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Refer to the return or attachments to find the correct name.
(3) If no executor is indicated, enter the name of a personal representative or attorney which can be found on Page 1, Part I, Box 10a or 12a, the signature area, or in attachments.
(4) If the return and attachments have no evidence of an executor nor a personal representative or attorney, SSPND with AC 211 and attach appropriate Correspondence Action Sheet. The correspondence must be sent to the decedent’s address if no other address is available.
Field 04 Con - "In-Care-of"
(1) This field is transcribed from Page 1, Part I, Box 9b or 10b (Field 04CON).
(2) This field has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent.
Note: The first character of the "in-care-of" name must be alpha or numeric.
Invalid Conditions
(1) Field 04CON is invalid if any of the following conditions are present:
The first position is % (percent) and the second position is not blank.
The first position is blank.
The first character of the "in-care-of" name is not alpha or numeric.
There are two consecutive blanks between significant characters.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed. Using If/Then Chart for further processing.
If | Then |
|---|---|
A % (percent) is in the first position | 1. Verify there is a blank in the second position. |
A blank is in the first position | 1. Delete blank. |
The first character of the "in-care-of" name is not alpha or numeric | 1. Verify "in-care-of" name on the return. |
Two consecutive blanks are present between significant characters. | Delete any unnecessary blanks in Field 04CON. |
Field 04 FAD - Foreign Address
(1) This field is transcribed from Page 1, Part 1, Box 9b or 10b of the return (field 04FAD).
This field will contain an entry when there is a foreign address present on the return.
Field 04FAD must not be present on "G" coded returns.
(2) Valid characters are alpha, numeric and special characters.
Invalid Conditions
(1) Field 04FAD is invalid if any of the following conditions are present:
The first position is blank.
Any character follows two consecutive blanks
There are more than 35 characters present in the field.
Note: Integrated Submission and Remittance Processing (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.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed. Using if/Then chart.
If | Then |
|---|---|
Field 04FAD is present | 1. GTSEC 04. |
A foreign address is not present on the return | 1. SSPND 610. |
(2) If Form 8822, Change of Address, is attached to the return, compare the name and address information on the Form 8822, Change of Address to the return. Follow If/Then chart for action to take.
If | Then |
|---|---|
The information is the same | Take no action and continue processing. |
The information is different | 1. Detach Form 8822, Change of Address. |
Note: The lead tax examiner is required to batch all Form 8822s daily and hand carry to Entity Control for expedite processing.
Foreign Addresses - General Information
(1) KCSPC will process Estate and Gift tax foreign/international addresses and U.S. Possessions returns.
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
Federated States of Micronesia
Guam
Marshall Islands
Northern Mariana Islands
Palau
Puerto Rico
Virgin Islands
(2) The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old format, such as APO New York, NY 091XX, convert to the new state code abbreviation (APO AE 091XX) based on the following ZIP codes: Follow chart below for Abbreviations.
ZIP Code | Address | Abbreviation |
|---|---|---|
340XX | APO/DPO/FPO | AA |
090XX-098XX | APO/DPO/FPO | AE |
962XX-966XX | APO/DPO/FPO | AP |
Foreign Addresses
(1) A foreign address will contain:
Street Address or PO Box
City or town name
Other principal subdivision (i.e., province, state, and county).
Postal code, if present
Foreign country
(2) Returns with addresses in the U.S. Possessions are considered to be a foreign return for processing purposes and are entered in the same way as domestic addresses. Chart below pertains to abbreviations for U.S. Possessions.
Note: A two character alpha code must be entered in Field 04ST for the possession name.
U.S. Possession | 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 |
(3) A ZIP code must be present.
Field 04ADD - Street Address
(1) This field is transcribed from Page 1, Part I, Box 9b or 10b of the return (Field 04ADD).
Invalid Conditions
(1) Field 04ADD is invalid if:
Any character other than alpha, numeric, blank, dash or slash is present.
Any character follows two consecutive blanks.
The first position is not an alpha or numeric character.
There are more than 35 characters in this field (Data Conversion will input a pound (#) sign as the 35th character).
Correction Procedure
(1) Check for coding and transcription errors and correct as needed. Find a way to abbreviate the address to 35 or fewer characters. Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries, for address abbreviations. (The 35th character is a pound sign (#). SSPND with AC320 when unable to correct.
Field 04CTY - City/Major City Code
(1) This field is transcribed from Page 1, Part I, Box 9b or 10b of the return (field 04CTY).
Invalid Conditions
(1) Field 04CTY is invalid if:
Any character other than alpha or blank is present.
Any character follows two consecutive blanks.
The first position is blank.
The first character is not blank and is followed by two consecutive blank characters.
Foreign country code is not present, incorrect or contains "XX".
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Refer to Document 7475, State and Address Abbreviation, Major City Codes (MCC’s) ZIP Codes and Countries, for the valid Major City Codes and ZIP codes.
(3) If a foreign address is shown on the return, enter appropriate foreign country code in Field 04CTY. See Exhibit 3.12.263-14, Foreign Country Codes.
(4) If unable to correct, blank the field.
Field 04ST - State Code
(1) This field is transcribed from Page 1, Part I, Box 9b or 10b of the return (Field 04ST).
Invalid Conditions
(1) Field 04ST is invalid if:
Any character other than alpha or blank is present.
The first position is blank.
The state code is invalid.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Estate tax returns of a nonresident alien not a citizen of the U.S. (Form 706-NA) must be filed at Kansas City Submission Processing Center (KCSPC).
(3) Refer to Document 7475, State and Address Abbreviations, Major City Codes MCC’s), ZIP Codes and Countries for the valid state abbreviations and ZIP codes. See Exhibit 3.12.263-13, U.S. Possessions ZIP Codes.
(4) If unable to correct, GTSEC 04 and delete specific fields.
Field 04ZIP - ZIP Code
(1) This field is transcribed from Page 1, Part I, Box 9b or 10b (Field 04ZIP).
Invalid Conditions
(1) Field 04ZIP is invalid if:
The first five positions are not numeric.
Positions four and five are "00".
Exception: ZIP code 20500.
The last three or seven positions are not all numeric or all blank.
Correction Procedure
(1) Check for coding and transcription errors and correct as needed. Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries for a valid ZIP code. See Exhibit 3.12.263-13, U.S. Possessions ZIP Codes. When a valid ZIP code is not available from the return or attachment to the return. Enter 01 for the fourth and fifth digits if only the first three digits of the Zip code can be found.
Math/Consistency Errors - Priority IV General (Form 706-NA series), United States. Estate (and Generation-Skipping Transfer) Tax Return of nonresident not a citizen of the United States
(1) For information regarding Priority I, II, and III Errors, please consult the following Section references:
See IRM 3.12.263.3.9, Priority 1 Errors-Suspense Inventory Correction Procedures (Reject Procedures).
See IRM 3.12.263.3.10, Priority II Errors-Section Errors.
See IRM 3.12.263.3.11, Priority III Error-Field Error Definition.
(2) A Priority IV error will display whenever the contents of one field are inconsistent with the contents of another field, or when a math computation is incorrect. These errors will be assigned a specific Error Code and will display in ascending Error Code order.
(3) The screen display will show the error code assigned and all the fields needed to make the correction.
For some math error codes, a field name "NC" will display for the entry of a Taxpayer Notice Code (TPNC). Multiple taxpayer notice codes may be entered when multiple XX(s) are shown. Previously assigned TPNC(s) will display on the right - hand side of Line 3 of the screen.
A field labeled "CL" will be shown for the entry of a Clear Code on records where a change or correction may not be needed. All coding and transcription errors must be corrected, and all IRM procedures applied BEFORE entering a "C" in the Clear Field.
(4) All errors must be solved by:
Eliminating the error.
Entering a Clear Code.
Entering a Taxpayer Notice Code.
Suspending the document with the right AC.
Processing Field Errors
(1) If the money amounts on a return exceeds the maximum field length allowable, do the following:
Enter the maximum allowable on the original return. Recompute the tax data and enter the corrected amount(s) on the screen display and the return. DO NOT SEND A TAXPAYER NOTICE CODE.
Write on the original return, "Dummy Return prepared due to the overflow document".
Prepare a "Dummy Return" by computing and entering the remaining overflow money amount(s) for the correct fields. Enter the following data on the "Dummy Return".
On the top of the return write "Prepared from Overflow Return".
Entity data from the original return.
The DLN from the original return.
CCC "G" in Field 01CCC.
In the signature area write "Signature on Original Return".
(2) Attach routing slip to the completed "Dummy Return" and send to Receipt and Control to have the "Dummy Return" numbered and processed.
Error Code 001 - Tax Year - Invalid Entry
(1) Fields Displayed - Error Code 001 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
01DOD | Date of Death | 8 |
01CCC | Computer Condition Code | 10 |
01RCD | Received Date | 8 |
01RD> | Return Due Date | 8 |
Invalid Conditions
(1) Error Code 001 will generate when any of the following conditions are present:
CCC "G" is Not Present - The processing date is equal to or more than 2 years and 9 months after the return due date or the IRS received date (whichever is later) and CCC "W" is not present.
CCC "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.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Do not send the following returns to Statute Control for clearance. Instead, enter "W" in Field 01CCC and on the return and continue processing:
Any return secured by Compliance (i.e., 6020(b))
Any return with a TC 59X
Any return that is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133, Expedite Processing Cycle attached.
Any return that is a 2020 and prior year original: Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2020 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90- calendar day statute stamp has expired.
(3) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Following the If/Then chart below.
If | Then |
|---|---|
Field 01RCD is blank | 1. Enter the IRS received date in Field 01RCD. Use the earliest date if multiple received dates are present.
|
CCC "W" was entered incorrectly | Delete CCC "W" from Field 01CCC. |
The return has a stamp that shows 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 | 1. SSPND 310. |
Error Code 002 - Name Control Mismatch
(1) Fields Displayed - Error Code 002 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
CL | Clear Code |
|
01NC | Name Control/Check Digit | 4 |
>>>> | Name Control Underprint |
|
01SSN | Social Security Number | 9 |
04CON | "In-Care-of" Name | 35 |
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State | 2 |
04ZIP | ZIP Code | 12 |
Note: The literal "SECTION 04 NOT PRESENT" will display if no entries are in Section 04.
Invalid Conditions
(1) Error Code 002 will generate when the name control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF).
Correction Procedures
(1) Before taking any more 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 01SSN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the Error Resolution screen.
(3) Check for misplaced entries, coding and transcription errors and correct as needed.
(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 IDRS to decide the correct name. Follow If/Then chart for processing procedures.
If | Then |
|---|---|
The name on the return or attachment agrees with the name control on INOLES | 1. Bring up the underprint. |
The name control on INOLES is different from the name on the return or attachment |
. |
(6) If a new SSN is located, verify the name control using CC INOLES. Following If/Then chart for processing procedures.
If | Then |
|---|---|
ENMOD shows a pending name change or pending assignment and it agrees with the name on the return | Bring up the underprint if name control matches the return or if name control is correct enter "C" in the clear code field. |
The name control on INOLES agrees with the name on the return or attachment | 1. Ensure that the entity information agrees with the return. |
An SSN cannot be found | SSPND 320 to Entity Control using Form 10886, Reject Routing Slip or, Form 4227, Intra-SC Rejecting or Routing Slip. |
Credit needs to be transferred or payment posted to the wrong account |
|
Suspense Corrections
(1) Research IDRS to decide if payments posted incorrectly: If/Then chart provided actions to be taken.
If | Then |
|---|---|
The payment posted to the wrong SSN |
|
The payment posted correctly | 1. Enter correct SSN in Field 01SSN and on the return. |
Payment cannot be located | Enter "C" in the Clear Code field. |
Error Code 003 - Check Digit Invalid
(1) Fields Displayed - Error Code 003 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
01NC | Name Control | 4 |
01SSN | Social Security Number | 9 |
Invalid Conditions
(1) Error Code 003 will generate when any of the following conditions are present:
A check digit is present but is not valid for the SSN.
The letters "E", "G", or "M" are present as Check Digits in Field 01NC.
Correction Procedures
(1) Check all misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Found below in the If/Then chart.
If | Then |
|---|---|
The check digit in Field 01NC does not agree with the return or is not legible | Enter the name control from the return in Field 01NC. |
The SSN on the return is not legible | Research NAMES/NAMEI for correct SSN. |
(3) If a new SSN is located, verify the name control using CC INOLES. Follow If/Then Chart for processing procedures.
If | Then |
|---|---|
The SSN on the return agrees with the SSN on INOLES | Enter name control from INOLES in Field 01NC. |
Research shows a different SSN | Verify the SSN and name on INOLES. |
Name control on INOLES agrees with the name on the return or attachments | 1. Ensure that the entity information agrees with the return.
|
Unable to locate an SSN | 1. SSPND 320 to Entity Control. |
(4) Research IDRS using CC BMFOL to decide if payments posted incorrectly. Follow If/Then Chart for processing procedures.
If | Then |
|---|---|
The payment posted to the wrong SSN | 1. 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. |
The payment posted to the correct SSN | Enter the correct SSN in Field 01SSN and on the return. |
The payment cannot be located | No action required. |
Error Code 004 - Name Control/Social Security Number (SSN) Validation
(1) Fields Displayed - Error Code 004 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
CL | Clear Code | 1 |
01NC | Name Control/Check Digit | 4 |
>>>> | Name Control Underprint | 4 |
01SSN | Social Security Number | 9 |
Invalid Conditions
(1) Error Code 004 will generate when any of the following conditions is present:
The SSN is not present on Master File (NAP)
The Entity Index File (EIF) and the NAP were not accessed or were not operational, causing a blank underprint in Field 01NC.
Note: An underprint of "XXXX" shows that there is no account on the Master File, while a blank underprint shows that the NAP has not been accessed or was not operational.
Correction Procedures
(1) Before taking any more 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/SSN 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 01SSN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the Error Resolution screen.
(3) Check for misplaced entries, coding and transcription errors and correct as needed.
(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 IDRS to decide the correct name control: Follow If/Then chart for processing procedures.
If | Then |
|---|---|
ENMOD shows a pending name change and it agrees with the return | Bring up underprint or enter a "C" in the clear code field. |
The name on the return or attachment agrees with the name control on INOLES Note: Use SSNV when searching ENMOD for a SSN | 1. Bring up the underprint. |
The name control on INOLES is different from the name on the return or attachment | Research NAMES/NAMEI for a new SSN. |
(6) If a new SSN is located, verify the name control using CC INOLES. Follow If/Then chart for processing procedures.
If | Then |
|---|---|
The name control on INOLES agrees with the name on the return or attachment | 1. Ensure that the entity information agrees with the return. |
Credits are posted to the wrong account |
|
An SSN cannot be found | SSPND 320 to Entity Control using Form 10886, Reject Routing Slip or Form 4227, Intra-SC Reject or Routing Slip. |
Suspense Corrections
(1) Research IDRS to decide if payments posted incorrectly: Follow If/Then chart for suspense correction procedures.
If | Then |
|---|---|
SSN Found and the payment posted to the wrong SSN |
|
SSN Found and the payment posted correctly | 1. Enter correct SSN in Field 01SSN and on the return. |
Payment cannot be located | Enter "C" in the Clear Code field. |
Error Code 007 - Received Date is Earlier Than Date of Death
(1) Fields Displayed - Error Code 007 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
01DOD | Date of Death | 8 |
01RCD | Received Date | 8 |
Invalid Conditions
(1) Error Code 007 will generate when the IRS received date is equal to or earlier than the DOD.
Note: A person must be deceased before an estate tax return is filed. The purpose of this error is to prevent the filing of an estate tax return prior to death.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Follow If/Then chart for correction procedures.
If | And | Then |
|---|---|---|
Death certificate or other attachments to verify the DOD is not found |
| 1. Research INOLES. |
DOD is verified | The IRS received date is still equal or earlier | Change the received date to the day after the DOD and note on the top of the return "Estate and Gift: RETURN FILED YYYYMMDD, TAXPAYER DIED YYYYMMDD". |
Suspense Corrections
(1) Check correspondence from the executor/representative for the death certificate or other proof of the DOD. Follow If/Then chart for Suspense correction.
If | Then |
|---|---|
The information requested has been received | Make the necessary corrections to the screen. |
The return was filed prior to death and the taxpayer has since died | Change the IRS received date to the day after the DOD, and note on the top of the return: |
The correspondence received shows the taxpayer is not deceased | RJECT with AC 640. |
There is no response | Make the received date 1 day after the DOD shown on the return. |
Error Code 010 - Amended Return "G" Coded
(1) Fields Displayed - Error Code 010 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
01CCC | Computer Condition Code | 10 |
01PIC | Penalty and Interest Code | 1 |
01CAF | CAF Indicator | 1 |
01RFC | Refund Code | 1 |
01PI | Payment Indicator | 1 |
01EXP | Expatriate Indicator | 1 |
Note: Section 02 is present or Section 02 is not present.
Section 03 is present or Section 03 is not present.
Section 04 is present or Section 04 is not present.
Invalid Conditions
(1) Error Code 010 will generate when CCC "G" is present, fields other than 01SSN, 01NC, 01DOD, 01CCC, 01DOB, 01RMIT, 01RCD and 01CRD are present, and Sections 02, 03 or 04 are present.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(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: Follow If/Then for Correction Procedures.
If | Then |
|---|---|
Return shows amended, revised, supplemental, corrected, or superseding | Research BMFOL, SUMRY, and/or TXMOD to decide if information is exactly the same as the posted return. |
All information is not the same | 1. Process the return with CCC "G". |
All information is exactly the same | 1. Cancel the DLN. |
A return is not posted for the tax year and the return is an amended return | Continue processing as an amended return. |
A return is not posted for the tax year and the return is not amended (G coded in error) | 1. Enter all necessary data in Sections 02 through 04. |
Note: When deleting CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.
Error Code 011 - Remittance Amount/No data in 0314 / CCC "G" not present
(1) Fields Displayed Error Code 011 will be displayed as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
RMIT> | Remittance |
01CCC | Computer Condition Code |
01RCD | Received Date |
0314 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
Section 03 is not present. | Section 03 is not present. |
Invalid Condition
(1) Error Code 011 will generate when an Remittance Processing System, (RPS) amount or remittance amount is present and there is no data in Field 0314, Total Transfer Tax (Line 14) and CCC "G" is not present.
Correction Procedures
(1) The following information pertains to correction procedures for Error Code 011.
If | Then |
|---|---|
There is data on the return for Sections 02, 03, or 04 fields | GTSEC and enter data in the appropriate fields. |
The record is to be "G" coded, Sections 02, 03 and 04 cannot be present | DLSEC the appropriate sections. Enter the "G" code in Field 01CCC. |
There is no money amount in the RMIT> field, and an RPS/ISRP Indicator is present | GTSEC, enter $.01 in the Field 03B/R, and continue processing. |
No data is present and where to apply the remittance amount (money) cannot be determined from the return | 1. Enter CCC "X" in Field 01CCC. |
Suspense Correction
(1) The Rejects Unit will retrieve the research and attempt to apply the remittance amount. Follow If/Then chart for Suspense Correction Procedures.
If | Then |
|---|---|
The remittance is Non-RPS (blue or green rocker amounts) | Prepare Form 3244, Payment Posting Voucher, and renumber the return as a non-remittance return. |
The remittance is an Remittance Processing System, remittance | 1. Prepare Form 3465, Adjustment Request, to show where to apply the credits. |
The taxpayer does not reply and you cannot tell where to apply the remittance | Apply it to Unidentified File. |
Error Code 014 - Missing Address Entries
(1) Fields Displayed - Error Code 014 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
04CON | "In-Care-of" Name | 35 |
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State Code | 2 |
04ZIP | ZIP Code | 12 |
Invalid Conditions
(1) Error Code 014 will generate when any of the following conditions are present:
If the street address is present, Field 04CTY and Field 04ST must be present, unless a Major City Code is used.
If a Major City Code is used, Field 04ADD must be present.
A City must be present. If the city is not in the Major City format, Field 04ST must be present. Field 04ADD can be blank.
A Major City Code is used and Field 04ST is present. If the State Code is equal to "AA", "AE" or "AP" and the corresponding ZIP code is present, the City must be APO, DPO, or FPO.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. If/Then provides instruction for correction procedures.
(3) Research any of the following for valid address information:
Document 7475, State and Address Abbreviations, Major City Codes (MCC’s) ZIP Codes and Countries.
INOLE, NAMES/ENMOD
If | And | Then |
|---|---|---|
A Major City Code is present | A street address is not available | 1. Enter the City Name (spelled out, not in Major City format) in Field 04CTY. |
The Major City Code is correct | The state is present | Delete Field 04ST. |
The ZIP code or address cannot be corrected from the information on the return, attachments or from research |
| DLSEC 04. |
Error Code 015 - Foreign Address/State
(1) Fields Displayed - Error Code 015 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
04CON | "In-Care-of" Name | 35 |
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State | 2 |
04ZIP | ZIP Code | 12 |
Invalid Conditions
(1) Error Code 015 will generate when any of the following conditions are present:
Field 04ST has an entry other than "." (period/space) when Field 04FAD is present.
Field 04ZIP has an entry when Field 04FAD is present.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare displayed fields with the return. If incorrect, overlay the screen with the correct information. Using If/Then chart for Correction Procedures.
If | Then |
|---|---|
A foreign address is present in Field 04FAD | 1. Field 04ST must contain "." (period/space). |
A foreign address is not present in Field 04FAD | Check return for foreign address. |
A foreign address is present on the return | 1. Enter the foreign address in Field 04FAD. Note: If additional space is required, continue entering the address in Field 04ADD.
|
A foreign address is not present on the return | 1. Verify the address on the return is not a foreign address. |
Caution: Do not use the code for Canada if a province name or abbreviation is shown. See IRM 3.12.263.7.7.5, Foreign Address-Canada Only
Error Code 016 - ZIP Code/State Mismatch
(1) Fields Displayed - Error Code 016 will display as follows:
Field Designator on Form 706-NA | Field Name | Field Length |
|---|---|---|
04CON | "In-Care-of" Name | 35 |
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State Code | 2 |
04ZIP | ZIP Code | 12 |
Invalid Conditions
(1) Error Code 016 will generate when the ZIP code is inconsistent with the Major City Code or State Code.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.
(3) Research any of the following for valid ZIP code information:
Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries
INOLE, NAMES/ENMOD
(4) If only the first three digits of the ZIP code can be determined, enter "01" in the fourth (4th) and fifth (5th) positions. Follow If/Then chart for Correction procedures.
If | And | Then |
|---|---|---|
Unable to decide a valid ZIP code from the return or attachment |
| Enter the valid ZIP code found through research in Field 04ZIP. |
The address is a major city | A Major City Code can be determined | Enter Major City Code in Field 04CTY. |
The address is in a major city | A Major City Code cannot be determined | 1. Enter the name of the city in Field 04CTY. |
The address is not in a major city |
| 1. Enter the appropriate state abbreviation in Field 04ST. |
(5) APO/DPO/FPO Addresses - An APO, DPO, or FPO is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP code. See chat below for Abbreviation. For example, if the old address appears as "APO New York, NY 091XX", convert to read as "APO AE 091XX".
ZIP Code | Address | Abbreviation |
|---|---|---|
340XX | APO/DPO/FPO | AA |
090XX-098XX | APO/DPO/FPO | AE |
962XX-966XX | APO/DPO/FPO | AP |
Error Code 030 - P&I Code of "1" and the IRS received date is on or before RDD
(1) Fields Displayed: Error Code 030 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
01DOD | Date of Death |
01CCC | Computer Condition Code |
01RCD | Received Date |
01PIC | Penalty and Interest Code |
01RD> | Return Due Date |
Invalid Conditions
(1) Error Code 030 will generate when the Penalty and Interest Code of "1" is present and the IRS received date is on or before the return due date,≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
If | Then |
|---|---|
The IRS received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the due date | Delete the "1" from Field 01PIC. |
The IRS received date is on or before the due date | Delete the "1" from Field 01PIC. |
Error Code 034 - Correspondence Received Date
(1) Fields Displayed - Error Code 034 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
01DOD | Date of Death |
01RCD | Received Date |
01CRD | Correspondence Received Date |
01RD> | Return Due Date |
Invalid Conditions
(1) The correspondence received date is earlier than or the same as either the IRS received date or the return due date.
(2) The correspondence received date is equal to or later than the processing date.
Correction Procedures
(1) Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.
(2) The IRS received date will either be stamped or edited on the return. See IRM 3.12.263.14.8, Field 01RCD-Received Date Correction Procedures.
(3) A correspondence received date will be determined from the date the reply was received in the submission processing campus. Refer to the return for the correspondence received date. It is edited in the Entity section of the return. This can be verified by checking stamped correspondence received date on the correspondence attached to the return.
(4) If the correspondence received date is present and earlier than the return due date, or later than the processing date, delete the correspondence received date from Field 01CRD.
(5) If more than one correspondence received date is present, use the earliest date.
Error Code 073 - CCC "3" and 01CRD has entry
(1) Fields Displayed - Error Code 073 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
01CCC | Computer Condition Code |
01CRD | Correspondence Received Date |
Invalid Conditions
(1) Error Code 073 will generate when Field 01CCC is "3" and a date has been entered in Field 01CRD.
Correction Procedures
(1) Review the return and attachments for the IRS correspondence.
If the IRS correspondence is attached, decide if a reply has been received from the taxpayer.
If so, circle CCC 3 edited on the return. Delete CCC 3.
If "no reply" is attached, delete entry in Field 01CRD.
Error Code 082 - Name Control disagrees with name line
(1) Fields Displayed - Error Code 082 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
01NC | Name Control |
04PNL | Primary Name Line |
Invalid Conditions
(1) Error Code 082 will generate when the name control does not agree with the first four non-blank positions following the less than sign (<) in the Primary Name Line.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
If | Then |
|---|---|
The name control on the return and Field 01NC did not agree or was transcribed incorrectly | Change Field 01NC. |
The Primary Name Line on the return and Field 04PNL did not agree or was transcribed incorrectly | Change Field 04PNL. |
The Primary Name Line has been transcribed correctly in Field 04PNL, and the first four letters disagree with Field 01NC | Correct Field 01NC. |
It is not an obvious error | Research INOLES, NAMEE, and/or ENMOD. If you still cannot find an answer, SSPND with AC 320 to Entity Control, using Form 10886, Reject Routing Slip or 4227, Intra-SC Rejecting or Routing Slip. |
Suspense Corrections
(1)
IF | Then |
|---|---|
SSN Found and the payment posted to the wrong SSN |
|
SSN Found and the payment posted correctly | 1. Enter correct SSN in Field 01SSN and on the return. |
Payment cannot be located | Enter "C" in the Clear Code field. |
Error Code 084 - DOB =/>DOD - Date of Birth/Date of Death (DOB)/(DOD) processing date
(1) Fields Displayed - Error Code 084 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
01DOB | Date of Birth |
01DOD | Date of Death |
Invalid Conditions
(1) The Date of Birth is equal to or greater than the Date of Death.
(2) The Date of Birth is greater than the processing date.
(3) The Date of Death is greater than the processing date.
Correction Procedures
(1) The following information pertains to correction procedures for error code 084.
If | Then |
|---|---|
Field 01DOB (Date of Birth) is equal to or greater than Field 01DOD (Date of Death) | Check for coding and transcription errors and correct as needed. |
The person was born and died the same day | Verify this through the death certificate. If this is the case, change Field 01DOB to the day prior to the date in Field 01DOD. |
The Date of Birth cannot be determined | Delete Field 01DOB. |
Field 01DOB (Date of Birth) is greater than the processing date | Check for coding and transcription errors and correct as needed. |
Date of Birth cannot be determined | Delete Field 01DOB. |
Field 01DOB (Date of Birth) is greater than the processing date | 1. Check for coding and transcription errors and correct as needed. |
The death certificate is not present | Research INOLES for the DOD. If not found, SSPND with AC 211 and attach Form 3696, Correspondence Action Sheet. |
Suspense Corrections
(1) Check correspondence with the executor/representative for the death certificate or other proof of the DOD.
(2) Reply/No Reply Instructions:
IF | Then |
|---|---|
Complete Reply | Enter the Date of death in field 01 DOD and correspondence received date in 01CRD |
No Reply or Incomplete Reply |
|
Error Code 100 - 01PI/03USB - DOD prior to 2005
(1) Fields Displayed - Error Code 100 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
01PI | Payment Indicator |
0315 | Earlier Payments |
03USB | U.S. Treasury Bond |
Section 03 is not present. | Section 03 is not present. |
Purpose
(1) These instructions are valid for returns with dates of death prior to 2005.
(2) This error code prevents a mismatch between 2 fields. If Treasury Bonds are used to help pay the tax, then the Payment Indicator must be 4 or 6. If they are not used, then the Payment Indicator must be 0 or 2.
(3) The following table lists the Payment Indicator Codes (PIC) for Form 706-NA:
Codes | Conditions | Fields |
|---|---|---|
0 | No extensions | No entry in Field 0319. |
2 | Extension required under Section 6161 or 6163 | Entry in 0317 and evidence of Section 6161 or 6163 is present. |
4 | Bonds are submitted for full or partial payment of tax liability | Bonds are no longer accepted as payment. |
6 | Extension required under Section 6161 or 6163 | Entry will be present in 0319 if evidence of Section 6161 or 6163 is present. |
Note: Installment payments are not allowed for Form 706-NA.
Note: If this error code is present for a 2005 and subsequent enter a 0.
Error Code 102 - 0203A/0203A computer
(1) Fields Displayed - Error Code 102 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
0201 | Total Gross Estate |
0202 | Adjusted Taxable Gifts |
0203 | Taxable Estate |
>>>> | Taxable Estate Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 3 with the amount the computer has calculated for Field 0203 (Taxable Estate). To arrive at Field 0203, the computer adds Field 0201 (Total Gross Estate) and Field 0202 (Adjusted Taxable Gifts).
(2) Check for coding and transcription errors and correct as needed using the information below.
If | Then |
|---|---|
Fields 0201 and 0202 are blank, but Field 0203 has an amount | 1. Check the recapitulation sheet and bring the amount from Page 2, Part III, Schedule B, Line 9 to Field 0201. |
Transcribed correctly | Send the applicable TPNC. |
Field 0201 is increased | The maximum credit allowable in Field 02SDC (State Death Tax Credit) also increases. |
Code and Edit has edited Line 9 to show the total amount of state death taxes paid | Send TPNC 90 in addition to other needed TPNCs (use the TPNC that describes the source of the error). Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. |
There is an error made in computing taxable income | 1. Use a TPNC that states so. |
Code and Edit has not edited Line 9 | GTSEC 02. |
Field 02SDC does not underprint | 1. Check attachments for proof of state death and/or inheritance taxes paid (usually a copy of an assessment or return for state death and/or inheritance taxes paid). Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
|
Suspense Correction
(1) Check correspondence from the taxpayer to obtain a recapitulation sheet.
(2) Enter new data following if, then chart .
IF | Then |
|---|---|
Sufficient Reply |
|
Insufficient Reply or No Reply | Enter CCC "3" in 01CRD and enter the amount from 0203 in 0201. |
Applicable TPNCs
(1) TPNC 20 - States, “We found an error on Schedule A - Gross Estate in the U.S.”
(2) TPNC 21 - States, “We found an error on Schedule B - Taxable Estate.”
(3) TPNC 22 - States, “We found an error on Schedule B, Gross Estate Outside the U.S.”
(4) TPNC 23 - States, “We found an error on Schedule B, in the computation of Entire gross estate wherever located.”
(5) TPNC 24 - States, “We found an error on Schedule E - Jointly Owned Property.”
(6) TPNC 26 - States, “We found an error on Schedule G - Transfer During Decedent's Life.”
(7) TPNC 27 - States, “We found an error on Schedule H - Powers of Appointment.”
(8) TPNC 29 - States, “We found an error on Page 2, Schedule B, in the computation of Funeral expenses, administration expenses, decedent’s debts, mortgages and liens, and losses during administration.”
(9) TPNC 30 - States, “We found an error on Schedule B, in the computation Deduction for expenses, claims, etc.”
(10) TPNC 32 - States, “We found an error on Schedule M - Bequests, etc., to Surviving Spouse (Marital Deduction).”
(11) TPNC 33 - States, “We found an error on Schedule O - Charitable, Public and Similar Gifts and Bequests (Charitable Deduction).”
(12) TPNC 34 - States, “We found an error on in the computation of Total deductions.”
(13) TPNC 35 - States, “We found an error on Schedule Q – Credit for Tax on Prior Transfers.”
(14) TPNC 36 - States, ”We found an error in the computation of Net estate tax.”
(15) TPNC 37 - States, “We found an error in the computation of the Credit for state death taxes.”
(16) TPNC 38 - States, “We found an error in the computation of tentative tax on Page 1, Part II, Line 4, Tentative tax on the amount on Line 3.”
(17) TPNC 39 - States, “We found an error in the addition of the credit amounts on Form 706-NA.”
(18) TPNC 40 - States, “We found an error in the computation of the balance due.”
(19) TPNC 41 - States, ’”We found an error in the computation of the Unified Credit amount.”
(20) TPNC 44 - States, “We found an error in the computation of tentative tax on Page 1, Part II, Line 5, Tentative tax on the amount on Line 2.”
(21) TPNC 47 - States, “We found an error on Schedule R in the computation of Total Generation-Skipping Transfer Tax.”
(22) TPNC 50 - States, “We found an error on Schedule R-1 - Generation-Skipping Transfer Tax.”
(23) TPNC 52 - States, “We found an error in the computation of Taxable Estate.”
(24) TPNC 54 - States, “We found an error in the computation of Balance due.”
(25) TPNC 56 - States, “We found an error in the computation on Page 1, Part II, Line 2, Total taxable gifts.”
(26) TPNC 58 - States, “We found an error in the computation of the Balance.”
(27) TPNC 60 - States, “We found an error in the computation of Other credits.”
(28) TPNC 62 - States, “We found an error in the computation of Earlier payments.”
(29) TPNC 64 - States, “We found an error in the computation of your Taxable estate.”
(30) TPNC 67- States, “We found an error in the computation of the amount on Page 1, Part II, Line 3, Total.”
(31) TPNC 68 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 19, Total.”
(32) TPNC 73 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 6, Gross estate tax.”
(33) TPNC 74 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 8, Balance.”
(34) TPNC 83 - States, “We found an error in the computation of your total tax amount.”
(35) TPNC 90 - TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review or follow local procedures. Notice Review or the responsible party will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 108 - Tentative Tax/Math Error for 0204(Tentative Tax amount on 0203)
(1) Fields Displayed - Error Code 108 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
01EXP | Expatriate Indicator |
0203 | Taxable Estate |
>>>> | Taxable Estate Computer |
0204 | Tentative Tax |
>>>> | Tentative Tax Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer calculates the tentative tax by taking the amount from Field 0203 (Taxable Estate Computer) and searching the appropriate tax table. See Exhibit 3.12.263-6 Table A Unified Tax Rate Schedule (Form 706 and Form 709).
(2) Check for coding and transcription errors and correct as needed. If transcribed correctly, send the applicable TPNC.
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 38 - States, “We found an error in the computation of tentative tax on Page 1, Part II, Line 4, Tentative tax on the amount on Line 3.”
(3) TPNC 67 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 3, Total.”
(4) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 109 - Tentative Tax Tangible
(1) Fields Displayed - Error Code 109 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
01EXP | Expatriate Indicator |
0202 | Adjusted Taxable Gifts |
0205 | Tentative Tax Tangible |
>>>> | Tentative Tax Tangible Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer calculates the tentative tax tangible by taking the amount from Field 0202 (Taxable Estate Computer) and searching the appropriate tax table.
(2) Check for coding and transcription errors and correct as needed. If transcribed correctly, send the applicable TPNC.
(3) If the return must be manually verified, and is not present, GTSEC 01 and enter CCC "Y" in Field 01CCC on the worksheet, if attached.
(4) The record will eventually return with Error Code 136. Manually verify the worksheet. If correct, GTSEC 01 and enter the correct amount in Field 03MCT.
(5) You and the taxpayer disagree, Contact your supervisor and have another examiner independently make the calculation. If you agree, GTSEC 03 and enter the correct amount in Field 03MCT. If you do not agree, follow local procedures.
(6) The return must be manually verified, but the taxpayer did not attach a worksheet, 1. Take a copy of the worksheet and calculate the tax.
2. GTSEC 03 and enter the amount in Field 03MCT.
Applicable TPNCs
(1) TPNC 44 - States, “We found an error in the computation of tentative tax on Page 1, Part II, Line 5, Tentative tax on the amount on Line 2.”
(2) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is a result of a previous error and no additional error on this error code then ripple that TPNC.
Error Code 114 - Gross Estate Tax/Math Error for 0206
(1) Fields Displayed - Error Code 114 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
0204 | Tentative Tax |
>>>> | Tentative Tax Computer |
0205 | Tentative Tax Tangible |
>>>> | Tentative Tax Tangible Computer |
0206 | Gross Estate Tax |
>>>> | Gross Estate Tax Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
(2) This error code catches math errors when the difference between field 0206 taxpayer and field 0206 computer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 6 with the amount the computer has calculated by subtracting Field 0205 (Tentative Tax Tangible Computer) from Field 0204 (Tentative Tax Tangible Computer).
(2) Check for coding and transcription errors and correct as needed.
(3) The amounts on 0204 and 0206 are different and no entry in 0205, send TPNC 73. TPNC 73 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 6, Gross estate tax.”
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 73 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 6, Gross Estate Tax.”
(3) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is a result of a previous error and no additional error on this error code then ripple that TPNC.
Error Code 116 - Unified Credit
(1) Fields Displayed - Error Code 116 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
01EXP | Expatriate Indicator |
0206 | Gross Estate Tax |
>>>> | Gross Estate Tax Computer |
0207 | Unified Credit |
>>>> | Unified Credit Computer |
03IN | Gross In U.S. |
03OUT | Gross Out U.S. |
Purpose
(1) The Unified Credit is similar to the standard deduction or personal exemption allowed on an individual income tax return. Individuals do not pay income tax on income that is less than the total amount of the standard deduction or personal exemption. Nor do they pay estate or gift taxes on gifts or bequests whose total tax is less than the Unified Credit. There are two differences between the Unified Credit and the standard deduction/personal exemption. First the Unified Credit is a credit against tax, not a deduction from income or assets. The credit is subtracted against the estate tax, not the total amount of the estate. Second, the Unified Credit is larger than the standard deduction/personal exemption. The current Unified Credit of $13,000 for most nonresident, not a citizen ,exempts from estate and gift tax the first $60,000 given as a gift or as a bequest.
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 7 with the amount the computer has calculated by using the Date of Death (Field 01DOD) the Expatriate Indicator (Field 01EXP) and the lesser of the taxpayer's amount or the maximum credit allowed for that year.
Note: It will not calculate the Unified Credit when an estate tax treaty is in effect or a U.S. possession is involved which can involve a Unified Credit greater than $13,000.
(2) Check for coding and transcription errors and correct as needed. If transcribed correctly, send the applicable TPNC.
If | Then |
|---|---|
If Field 0207 (Unified Credit) is other than $13,000 (greater or less than $13,000) |
|
Note: SBSE reviews all the 706NA returns and will do the calculations for the Unified Credit (Field 0207). ERS will not manually calculate Unified Credit any more at the request of SBSE.
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 41 - We found an error on Page 1, Part II, Line 7, in the computation of Unified Credit.
(3) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 120 - Balance after Unified Credit
(1) Fields Displayed - Error Code 120 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
0206 | Gross Estate Tax |
>>>> | Gross Estate Tax Computer |
0207 | Allowable Unified Credit |
>>>> | Allowable Unified Credit Computer |
0208 | Balance After Unified Credit |
>>>> | Balance After Unified Credit Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 8 with the amount the computer has calculated by subtracting Field 0207 (Allowable Unified Credit Computer) from Field 0206 (Gross Estate Tax Computer).
(2) Check for coding and transcription errors and correct as needed.
If | Then |
|---|---|
The amounts in Fields 0206 and 0208 differ and there is no entry in Field 0207 | Send the appropriate TPNC. |
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up because of a "ripple" caused by an earlier error, continue to use the TPNC applicable to that error.
(2) TPNC 74 - States, “There was an error in computing the amount on Page 1, Part II, Line 8, Balance.”
(3) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 122 - State Death Tax Credit
(1) Fields Displayed - Error Code 122 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0203 | Taxable Estate |
>>>> | Taxable Estate Computer |
02SDC | State Death Tax Credit |
>>>> | State Death Tax Credit Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 9 (Field 02SDC), with the amount the computer has calculated for the maximum state death tax credit.
(2) Check for coding and transcription errors and correct using If/Then chart below as needed.
If | Then |
|---|---|
Field 0203 (Taxable Estate) is decreased | The maximum credit that can be claimed in Field 0208 will also decrease. |
The amount claimed by the taxpayer is greater than the calculated maximum credit | 1. The field will underprint. Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. |
Field 0203 (Taxable Estate) is increased | The maximum credit that can be claimed in Field 02SDC will also increase. See IRM 3.12.263.13.17, Error Code 102, for further instructions. |
(3) The Code and Edit and Error Resolution instructions tell the tax examiner to search the return and enter the total state death taxes paid. Should the total state taxes paid exceed the maximum credit, the field will underprint.
(4) Send TPNC 90. Suggested wording for TPNC 90: "Since your taxable estate has increased, the maximum that can be claimed as a state death tax credit has increased. We have allowed the maximum credit to which you are entitled." Other criteria for using TPNC 90 below in If/Then Chart
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
If | Then |
|---|---|
You use the TPNC 90 described above | Do not include the TPNC 90 used for Error Codes 102 or 108. |
Transcribed correctly | Send the applicable TPNC. |
A math error occurs that affects Field 03B/R, (Line 16, Balance Due/Over payment) an extension to pay | See IRM 3.12.263.13.17, Error Code 102, for further instructions. |
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 37 - States, “Error made when Credit for State Death Taxes was figured.”
(3) TPNC 64 - States, “We found an error in the computation of Taxable estate.”
(4) TPNC 72 - Error was made in computing the amount on Line 12.
(5) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 124 - Balance after State Death Tax Credit
(1) Fields Displayed - Error Code 124 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0208 | Balance After Unified Credit |
>>>> | Balance After Unified Credit Computer |
02SDC | State Death Tax Credit |
>>>> | State Death Tax Credit Computer |
02BSD | Balance After State Death Tax Credit |
>>>> | Balance After State Death Tax Credit Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 10 (Field 02BSD) with the amount the computer has calculated by subtracting Field 02SDC (State Death Tax Credit Computer) from Field 0208 (Balance After Unified Credit Computer).
(2) Check for coding and transcription errors and correct as needed.
(3) These instructions are valid for tax returns with dates of death prior to 2005.
Note: A transcription error for Field 02SDC will not underprint. If the amount transcribed is less than the maximum credit. If you receive a record that shows an error in total tax for no other apparent reason, check for this.
(4) Transcribed correctly - Send the applicable TPNC
(5) A math error occurs that affects Field 03B/R (Line 16, Balance Due/Overpayment) on an extension to pay-See IRM 3.12.263.13.17, Error Code 102, for further instructions.
Error Code 126 - Total Credits
(1) Fields Displayed - Error Code 126 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
0209 | Other Credits |
0210 | Prior Transfer Credit |
0211 | Total Credits |
>>>> | Total Credits Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 11 (Field 0211) with the amount the computer has calculated by adding Field 0209 (Other Credits), and Field 0210 (Prior Transfer Credit).
(2) Check for coding and transcription errors and using instruction below correct as needed.
If | Then |
|---|---|
There are no amounts shown by the taxpayer on Lines 9 and 10 | Check the return for applicable supporting schedules and calculations. Enter any amounts found on their respective lines. |
There are no supporting schedules or calculations | SSPND with AC 211 for supporting schedules or calculations. |
Transcribed correctly | Send the applicable TPNC. |
A math error occurs that affects Balance Due/Overpayment (Field 03B/R) (Line 16 on Form 706-NA) on an extension to pay | See IRM 3.12.263.13.17, Error Code 102, for further instructions. |
Suspense Procedures
(1) Check correspondence from the taxpayer for applicable schedules and calculations.
(2) If no reply, send TPNC 39.
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 35 - States, “Error made on Schedule Q-Credit for Tax on Prior Transfers.”
(3) TPNC 39 - EStates, “rror made under Tax Computation when credit amounts were added.”
(4) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 128 - Net Estate Tax
(1) Fields Displayed - Error Code 128 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
01DOD | Date of Death |
0208 | Balance After Unified Credit |
>>>> | Balance After Unified Credit Computer |
02BSD | Balance After State Death Tax Credit |
>>>> | Balance After State Death Tax Credit Computer |
0211 | Total Credits |
>>>> | Total Credits Computer |
0312 | Net Estate Tax |
>>>> | Net Estate Tax Computer |
Section 02 not present | Section 02 not present |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 12 (Field 0312) with the amount the computer has calculated by subtracting Field 0211 (Total Credits Computer) from Field 02BSD (Balance After State Death Tax Credit Computer).
(2) Check for coding and transcription errors and correct as needed.
(3) These instructions below are correction procedures for returns with dates of death prior to 2005.
If | Then |
|---|---|
There is no amount in Field 0211 and the amounts in Fields 02BSD and 0312 differ | 1. If Field 02BSD or Field 03B/R are blank and an amount must be present, enter the correct amount. |
Transcribed correctly | Send the applicable TPNC. |
A math error occurs that affects Field 03B/R (Line 16, Balance Due/Overpayment) on an extension to pay | See IRM 3.12.263.13.17, Error Code 102 for further instructions. |
Suspense Corrections
(1) Check correspondence from the taxpayer for applicable schedules and calculations.
(2) If no reply, send TPNC 36.
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 36 - States, “We found an error in the computation of Net Estate Tax on Page 1, Part II, Line 12.”
(3) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 129 - Total Transfer Taxes computer
(1) Fields Displayed - Error Code 129 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
0312 | Net Estate Tax |
>>>> | Net Estate Tax Computer |
0313 | GST Transfer Tax |
03SEC | Section 4980A Tax |
0314 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
Invalid Conditions
(1) Error Code 129 will generate when the Total Transfer Taxes Computer exceeds $9,999,999,999.99.
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 14 (Field 0314) with $9,999,999,999.99 (the maximum amount the computer will accept as a tax). An overflow field is identified by all question marks for a money field.
(2) Check for coding and transcription errors and correct as needed.
(3) The tax truly exceed $9,999,999,999.99-SSPND with AC610.
Suspense Procedures
(1) Enter the maximum amount allowable on the original return. Recompute the tax data and enter the corrected amount in the fields. (Do not send a taxpayer notice code.)
(2) Annotate on the original return, "Dummy Return prepared due to overflow document."
(3) Prepare a "Dummy Return" by computing and entering the remaining overflow amount(s) for the appropriate fields.
(4) On the top of the "Dummy Return", write "Prepared from Overflow Return". Enter data from the original return, CCC "G" and in the signature area write "Signature on Original Return". Put the DLN from the original return on the bottom of the return. Attach routing slip to the completed "Dummy Return". Send to batching for numbering and processing.
Error Code 130 - Total Transfer Taxes
(1) Fields Displayed - Error Code 130 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
0312 | Net Estate Tax |
>>>> | Net Estate Tax Computer |
0313 | Generation-Skipping Transfer Tax |
03SEC | Section 4980A |
0314 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 14 (Field 0314) with the amount the computer has calculated by adding Field 0312 (Net Estate Tax Computer), Field 0313 (Generation-Skipping Transfer Tax) and Field 03SEC (Section 4980A). Schedule S has been deleted as of 1/1/98; it is valid for 12/31/97 and prior.
(2) Check for coding and transcription errors and correct as needed using information below.
If | Then |
|---|---|
There are no amounts shown by the taxpayer on Lines 13 or 14 | Check the return for applicable supporting schedules and calculations. Enter any amounts found on their respective lines. |
There are no supporting schedules or calculations, and the difference between Lines 12 and 15 ≡ ≡ ≡ ≡ ≡ ≡ ≡ | SSPND with AC 211 using appropriate letter asking for supporting schedules or calculations. |
Transcribed correctly | Send the applicable TPNC. |
Suspense Procedures
(1) Check correspondence from the taxpayer for applicable schedules and calculations, and follow chart below.
(2)
IF | Then |
|---|---|
Sufficient Reply |
|
Insufficient Reply or No Reply | Enter a CCC "3" in field 01CRD and send applicable TPNC. |
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 47 - States, “We found an error on Schedule R in the computation of Total Generation-Skipping Transfer Tax.”
(3) TPNC 83 - States, “We found an error in the computation of your total tax amount.”
(4) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 132 - Total Payments
(1) Fields Displayed - Error Code 132 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
0315 | Earlier Payments |
03USB | U.S. Treasury Bonds |
03PMT | Total Payments |
>>>> | Total Payments Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 19 (Field 03PMT) with the amount the computer has calculated by adding Field 0315 (Prior Payments) and Field 03USB (U.S. Treasury Bonds).
(2) Check for coding and transcription errors and correct as needed using the information below.
If | Then |
|---|---|
Transcribed correctly | Send TPNC 90. Suggested wording: "An error was made in calculating your total prior payments and Treasury Bonds". Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. |
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 68 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 19, Total.”
(3) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 134 - Balance Due/Overpayment
(1) Fields Displayed - Error Code 134 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
0314 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
03PMT | Total Payments |
>>>> | Total Payments Computer |
03B/R | Balance Due/Overpayment |
>>>> | Balance Due/Overpayment Computer |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) The computer compares the amount transcribed from Page 1, Part II, Line 16 (Field 03B/R) with the amount the computer has calculated by subtracting Field 03PMT from Field 0314 (Total Transfer Taxes Computer). Enter this field as negative for refunds or positive for balance due.
(2) Check for coding and transcription errors and correct as needed.
(3) Delete any penalties and interest included in Field 03B/R.
(4) Transcribed correctly - Send the applicable TPNC.
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 54 - States, “Error was made in computing Balance Due or over payment Amount.”
(3) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 136 - CCC "Y"/DOD < 01-01-1977/MCT not zero or is significant
(1) Fields Displayed - Error Code 136 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
NC | Notice Code |
01CCC | Computer Condition Code |
01DOD | Date of Death |
0314 | Total Transfer Taxes |
>>>> | Total Transfer Taxes Computer |
03MCT | Manually Corrected Total Transfer Taxes |
Invalid Conditions
(1) CCC "Y" is present or,
(2) The DOD is prior to January 1, 1977, and
(3) Field 03MCT (Manually Corrected Total Transfer Taxes) is not zero or is significant.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
If | Then |
|---|---|
CCC "Y" is present |
|
Taxpayers’s figures are correct | Enter tax from Field 0214 into Field 03MCT and transmit. Note: If tax is truly $0.00 then enter $.01 in Field 03MCT. |
Taxpayer made a Math error | Enter the correct amount in Field 03MCT and transmit. |
Error Code 136 reappears | Send all applicable TPNCs. Note: If a TPNC was assigned prior to inputting the CCC "Y", re-send the prior TPNC along with any other applicable TPNCs at Error Code 136. |
Applicable TPNCs
(1) Any TPNC available for prior Error Codes can be used for this Error Code. If this Error Code comes up as the result of a "ripple" caused by an earlier error, continue to use the TPNC applicable for that error.
(2) TPNC 34 - States, “We found an error on Page 2, Part III, Schedule B, Line 8, Total Deductions.”
(3) TPNC 50 - States, “We found an error on Schedule R-1 - Generation-Skipping Transfer Tax.”
(4) TPNC 52 - States, “We found an error on Page 2, Part III, Schedule B, Line 9, and/or Page 1, Part II, Line 1, Taxable Estate.”
(5) TPNC 56 - States, “We found an error in the computation on Page 1, Part II, Line 2, Total Taxable Gifts.”
(6) TPNC 58 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 8, Balance.”
(7) TPNC 60 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 9, Other credits.”
(8) TPNC 62 - States, “We found an error in the computation of the amount on Page 1, Part II, Line 15, Earlier Payments.”
(9) TPNC 71 - States, “We found an error in the computation of the allowable Unified Credit on Line 9.”
(10) TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than three math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what must appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 138 - Refund is ≡ ≡ ≡ ≡ ≡ ≡ or more "1" not present
(1) Fields Displayed - Error Code 138 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
01CCC | Computer Condition Code |
01RFC | Refund Code |
03B/R | Balance Due/Overpayment |
>>>> | Balance Due/Overpayment Computer |
Invalid Conditions
(1) Error Code 138 will generate when the refund is $1,000,000 or more, and the Refund Code of "1" is not present in Field 01RFC.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) SSPND using AC 341.
(3) Once a manual refund has been issued according to local procedures, input a "1" in Field 01RFC and an "O" in Field 01CCC.
Note: See IRM 3.12.263.3.2.2, Refund Returns (45-day-Jeopardy and Large Dollar Returns) to ensure the refund is issued timely.
(4) If the condition is being resolved and a manual refund will NOT be issued, input a "1" in Field 01RFC only.
Error Code 999 - End of Year
(1) Fields Displayed - Error Code 999 will display as follows:
Field Designator on Form 706-NA | Field Name |
|---|---|
01RCD | Received Date |
(2) This is not really an Error Code. This code is used once a year to reformat the Error Resolution database. Should you see this code, transmit the screen. No other action needs to be taken.
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, General Information
(1) This section provides background information, describes sections of the (Error Resolution System) screen displays, the individual fields, their designations, and procedures for correcting Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. Exhibit 3.12.263-8, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.
Due Dates - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) The Form 709 , is an annual return. Generally, the donor must file Form 709 , no later than the earliest of January 1, but not later than April 15, of the year after the gift was made, excluding extensions.
(2) See Exceptions below.
When April 15 falls on a Saturday, Sunday, or legal holiday,Form 709, will be due on the next business day.
If donor dies during the year the tax period of the Form 709, being filed, the executor must file the Form 709, no later than the earlier of:
The due date (with extension) for filling the donor’s estate tax return (Form 706); or
April 15 or the tax period filed, or the extended due date granted, to filing the donor’s gift tax return.
When April 15 falls on a Saturday, Sunday, or legal holiday, the donor’s Form 709, will be due the next business day.
If the donor died of the tax period of the return, the executor must file a Form 709, no later than the earlier of:
Section 01 - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Section 01 field designators, field lengths and titles are listed below.
Alpha | Field |
|
|
|---|---|---|---|
01CCC | 10 | Computer Condition Code | Upper left margin, Page 1 |
01TXP | 6 | Tax Period | Top center of return, Page 1 |
TPNC | 6 | Taxpayer Notice Codes | Left margin name area, Page 1 |
01NC | 4 | Name Control/Name Control Underprint | Page 1, Part 1, Box 2 Generated |
01SSN | 9 | Donors Social Security Number | Page 1, Part 1, Box 3 |
01CZC | 1 | Citizenship Code | Page 1, Part 1, Box 13 |
01DTH | 1 | Death Indicator | Page 1, Part 1, Line 14 (2024), (check box), Page 1, Part 1 line 8 for (2023), (check box) |
01DOD | 8 | Date of Death | Page 1, Part 1, Line 14 (2024 and subsequent), on the dotted portion, Page 1, Part 1 line 8 (2023 and prior) (on the dotted portion.) |
01TND | 3 | Total Number of Donees | Page 1, Part 1, Line 17, (2024 and subsequent), Page 1 Part 1, line 10, (2023 and prior. |
01DSI | 1 | DSUE Indicator | Page 1, Part 1, Line 20, (2024 and subsequent), Page 1, Part 1 line 19, (2023 and Prior). |
01DAC | 1 | Digital Assets | Page 1, Part 1 line 21(709 only, 2024 and subsequent). |
01PIC | 1 | Penalty and Interest Code | Page 1, Part 2, between Lines 1 and 2 (tax computation center of Page 1) |
01CRD | 8 | Correspondence Received Date | Page 1, Part 2, between Lines 5 and 6 (left margin) |
01RCD | 8 | Received Date | Center position of the return |
RMIT> | 11 | Remittance | Page 1, Part 2, Line 19 (Green Rocker - Money Amount) |
01PTIN | 9 | Preparer (PTIN) | Bottom right corner, Page 1 |
01PEN | 9 | Preparer EIN | Bottom right corner, Page 1 |
01PTN | 10 | Preparer Phone Number | Bottom right corner, Page 1 |
01CSI | 1 | Gift Consent Indicator (Consent of Spouse Code) | Page 2, Part 3, Line 1 (2024 and subsequent), Page 1, Part 1, line 18 left margin), (2023 and prior). |
01SSS | 9 | Spouse's Social Security Number | Page 2, Part 3, Line 3 (2024 and subsequent), Page 1, Part 1, line 14 (2023 and prior). |
01PFC | 1 | Prior Filing Code | Page 2, Part 3, Line 4 (dotted portion) (Generated), (2024 and subsequent), Page 1 Part 1 line 15 dotted portion 2023 and prior). |
01FSI | 1 | Foreign Spouse Indicator | Schedule A, Part 1, (upper left - hand margin,)) |
01CAF | 1 | CAF Indicator | Upper right corner, Page 1 |
01RFC | 1 | Refund Code | ERS Only input field |
RMIT> - Remittance
(1) This field is blank for non-remittance returns and remittance returns processed through the Remittance Processing System. It is a non-correctable field.
(2) The remittance amount is found on the Balance Due Line of a full-paid return and is shown by a green rocker. A partial paid return has the remittance amount entered in green beside the taxpayer's entry on the Balance Due Line. This field will error, if present, on a non-G coded return when Total Tax Computer is zero or blank, or if Total Taxes (Field 0317) is zero or blank.
Field 01NC - Name Control
(1) This field is transcribed from the name line in the entity portion of the return.
(2) This field must be the first four characters of the last name.
Invalid Conditions
(1) Field 01NC is invalid if:
It is blank.
The first position is not alpha.
The second, third, and fourth positions are not alpha, hyphen, or blank.
There are any intervening blanks between characters.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
Compare the entries in Fields 01NC and 04PNL with the return and overlay the screen with the correct information.
If the name control was transcribed incorrectly, correct Field 01NC.
If it is not a transcription error, research per local procedures. Research CC’s NAMES/NAMEI for the name on the return and INOLE/ENMOD for the SSN on the return.
(2) The following information pertains to correction procedures:
If | Then |
|---|---|
The name control has been transcribed incorrectly | Enter the correct name control. |
The name control is missing and cannot be found | Research, using local procedures. |
The name control is found | Enter the correct name control in Field 01NC and on the return. |
Still unable to decide the name control | Suspend the record with AC (AC) 320. |
Field 01SSN - Donors Social Security Number (SSN)
(1) The SSN is a number assigned by the Social Security Administration (SSA) to identify potential Social Security contributors/recipients. The field is found on Page 1, Part 1, Box 3 of the return.
Invalid Conditions
(1) Field 01SSN is invalid if:
It is blank.
It is not all numerics.
It is less than nine - digits.
It is all zeroes or nines.
Correction Procedures
(1) Check for coding, transcription errors, and misplaced entries; correct as needed.
(2) The following information pertains to correction procedures.
If | Then |
|---|---|
SSN is invalid | Search for a correct number on the return or attachments. |
Taxpayer shows Amish or Mennonite filer | SSPND with AC 320 for referral to Entity Control. |
A valid SSN is not found on return or attachment | 1. Research, using IDRS (CC NAMES/NAMEI) to obtain a valid SSN. |
No SSN record is found | SSPND with AC 320 to Entity Control, for SSN research. |
Field 01SSS - Spouse's Social Security Number (SSN)
(1) The Spouse's Social Security Number (Field 01SSS) is found on Page 2, Part 3, Line 1, (2024 and subsequent), Page 1, Part 1 line 14, (2023 and prior).
(2) If no consent is indicated, see IRM 3.11.106.22.10, Consent Information/Consent of Spouse, for consent information; also see IRM 3.12.263.19.2.11, Field 01CSI-Consent of Spouse Indicator (aka Gift Consent Indicator)
(3) Delete Fields 01SSS and 01CSI if consent information is not required.
Invalid Conditions
(1) Field 01SSS is invalid if:
It is blank.
It is not all numerics.
It is less than nine - digits.
It is all zeroes or nines.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If Field 01SSS is blank, invalid, or identical to the donors SSN, research attachments. If the spouse is filing a return (Page 2, Part 3, Line 1 is checked "yes"), check through the block of returns for the spouses return and if present, enter the spouses SSN in Field 01SSS and on the donors return, as appropriate. If not found:
Research, using NAMES/NAMEI.
If unable to decide after research, route to Entity Control, using AC 320 to secure a temporary SSN.
(3) If a taxpayer shows they are an Amish or Mennonite filer, SSPND with AC 320 for referral to Entity Control.
(4) If no consent is indicated, see IRM 3.11.106.22.10, Consent Information/Consent of Spouse, for consent information. Delete Fields 01SSS and 01CSI if consent information is not required.
Field 01TXP - Tax Period
(1) This field is transcribed from the top center of the return. All characters must be numeric in a YYYYMM (Year/Month) format.
Invalid Conditions
(1) Field 01TXP is invalid if:
The tax period is not in numeric format.
The month is other than 12.
The tax period cannot be after the current processing date or earlier than 196112.
The tax period equals the processing date and CCC "F" is not present.
Correction Instructions
(1) Check for coding and transcription errors and correct as needed.
(2) If invalid or not present, check the return and attachments for the tax period and correct Field 01TXP.
(3) Tax periods 196912 and prior will require manual computation. (See also correction instructions for Error Codes 446 (197612 and prior) and 492 (Total tax >>>> = 0 but RMIT> indicator is present), which may occur when processing older returns.)
(4) If a quarterly tax return is received with a tax period 197012 to 198012, suspend using AC 630. Attach routing slip and note "Return to originator" .REJECTS ESTABT the document attach a Form 3499, Information Transmittal or Form 3200, and transship the document to Cincinnati Compliance Services, Estate and Gift Tax Campus Operation. For quarterly returns that have been combined onto a single return by Examination, verify that the total tax on the cumulative return is equal to the sum of the taxes on all of the quarterly returns. If the dollar amount of tax shown on the cumulative return is the same as the sum of the taxes on the quarterly returns, accept figures.
(5) If a return is received with a tax period prior to 196112, reject using AC 620. Attach routing slip and note "Pre-ADP return". All characters must be numeric in a YYYYMM format.
(6) Tax period will appear invalid and tax computation is suppressed if the current processing date is later than two years and nine months after the due date or the IRS received date, whichever is later, and CCC "W" is not present.
If the return has been cleared by Statute Control, enter CCC "W" in Field 01CCC.
If the return was not cleared through Statute Control, suspend the return by using CC SSPND with AC 310 and route to Statute Control. When the return has been cleared by Statute Control Function and has a Cleared by Statute stamp dated within the past 90 days, enter 01CCC "W".
Early-Filed Returns Without Remittance
(1) SSPND with AC 480 for domestic addresses or AC 215 for foreign addresses. The Error Resolution tax examiner will send a non-suspense "Z" letter telling the taxpayer the return was received and will be held until January of the year due. Attach routing slip, and notate "Early-Filed" on the routing slip.
Note: If Page 1, Part 1, Line 14 shows the donor is deceased or the taxpayer identifies Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, as a Supplemental Return for Allocation of GST Exemption Only, notate on Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip, "Do not send Early-Filed Hold letter to taxpayer."
Early-Filed Returns With Remittance
(1) If Code and Edit has not already done so, enter CCC "Y" in Field 01CCC. The ERS tax examiner will send a non-suspense "Z" letter telling the taxpayer the return was received and will be held until January of the year due.
Note: If Page 1, Part 1, Line 14 shows the donor is deceased or the taxpayer identifies Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, as a Supplemental Return for Allocation of GST Exemption Only, notate on Form 10886, Reject Routing Slip, Form 4227 Intra-SC Reject or Routing Slip "Do not send Early-Filed Hold letter to taxpayer."
(2) SSPND the return with AC 480 from Error Resolution. Attach routing slip and notate "Early-Filed". Suspense will take actions to void the DLN of the return. Form 3244, Payment Posting Voucher, will be prepared to post the remittance to the account.
Field 01CCC - Computer Condition Codes (CCC’s)
(1) CCC’s are transcribed from the upper left - hand corner of the return. The valid CCC’s are A (2010 ONLY), D, F, G, L, O, R, W, X, Y, 3 and 7.
(2) CCC’s tell the computer what to do when certain conditions are met. For example, CCC "R" stops the computer from calculating a delinquency penalty when the taxpayer presents reasonable cause for filing the return late.
(3) Since these codes tell the computer what to do, they also post to the Master File so that people looking at the file can tell what actions were taken on the return.
Invalid Conditions
(1) Field 01CCC is invalid if any letter or number other than the following is entered: A (2010 ONLY), D, F, G, L, O, R, W, X, Y, 3 and/or 7.
(2) CCC "A" is present and the form is NOT for 2010; or, if CCC "A" is present and there are no dollar amount entries on Page 2, Schedule A, Parts 2 or 3, or on Page 4, Schedule C (other than Exemption amounts (only) shown in Part 2, Lines 1, 3, and/or 8).
(3) CCC "G" is present with any other CCC except "W".
(4) CCC’s "D", "R", and "7" are all present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) When the codes entered on the return are illegible or invalid, check the return to decide the correct code(s) using information below and enter on the screen.
If | Then |
|---|---|
Any other CCC’s are present with "G" and "W" and/or "3" | Delete the other codes if the "G" is needed. |
CCC "G" is not needed | Delete it and leave the other codes. Review all sections and input data where necessary. |
CCC’s "D" and "R" are present with CCC "7" | decide which is correct and delete the incorrect CCC. |
CCC "A" - 2010 (ONLY) revision of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Enter CCC "A" to identify 2010 (ONLY) revisions of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, if there are any dollar amount entries (other than zero) anywhere on Page 2, Schedule A, Parts 2 or 3, or on Page 4, Schedule C (other than Exemption amounts (only) shown in Part 2, Lines 1, 3, and/or 8). DO NOT allow CCC "A" if other than 2010.
Note: This CCC will allow for an extended return due date of 09-19-2011 per the Extender's Legislation (PL 111-312).
CCC "D" - Reasonable Cause for Delinquency
(1) CCC "D"is no longer edited by Code & Edit or ERS when a reason is given for a delay in Reasonable Cause for Delinquency.
Note: Exception: Secured internally prepared returns: For secured returns ( e.g., returns notated with "Process as Original" with a attached Form 13133) or Prepared returns (e.g., returns notated 6020(b) or "SFR" (Substitute for Return), enter the applicable CCC as indicated on the return and/or attached form.
(2) Do not enter CCC "D" if precomputed penalty is shown on the return.
CCC "F" - Final Return
(1) Enter CCC "F" when the return will be the final return filed for a deceased donor.
This will be a field error if Field 01DTH is blank and CCC "F" is present.
Enter CCC "F" in Field 01CCC, only if a "1" is present in Field 01DTH (Death Indicator) and the Date of Death (Field 01DOD) is during the year the gift was made.
If the donor died after the tax period (i.e., a gift was given in February 2015 and the donor died in January 2016), do not enter CCC "F" or a "1" for Field 01DTH (Death Indicator) or the Date of Death (Field 01DOD).
CCC "G" - Amended Return
(1) Enter CCC "G" on returns marked "Amended", "Superseding", "Duplicate", "Corrected", "Supplemental", or, Page 1, Part 1 line 15, (2024 and subsequent is checked), etc.
Note: Taxpayers may send a copy of the front page of their return with a payment. These copies may get numbered and processed. If correspondence is needed for missing information and the return is marked "COPY", research BMFOLI/BMFOLT and/or BRTVU for duplicate returns.
CCC’s "W" and "3" are valid with a "G" code.
If the return is an amended return and Field 01CCC contains a valid CCC "G", delete all fields in Section 1 after Field 01RCD except correspondence received date (Field 01CRD). Use CC DLSEC to delete Sections 02, 03, and 04, if data is present or will be input.
If the return is not an amended return, delete "G" code from Field 01CCC. Check remaining fields and enter correct data. Enter any missing data. Use CC GTSEC to obtain the section formats, if necessary.
CCC "L" - Treaty Based Position
(1) Enter CCC "L" if "IRC 6114, Elections," is noted on the return or Form 8833, Treaty-Based Return, is attached to the return (see IRM 3.12.263.4.7.6), CCC"L" Code.
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 (IGR), is attached to the return. These show that a pre-settlement manual refund was made. (The freeze is released by posting TC "840".) See IRM 3.12.263.3.2.2, Refund Returns 45-day jeopardy and Large Dollar Refunds to ensure the refund is issued timely.
Note: Also enter a "1" in Field 01RFC (Refund Code) when either a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), is attached to the return.
CCC "R" - Reasonable Cause for Delinquency
(1) CCC "R" is no longer edited by Code & Edit or ERS when a reason is given for Reasonable Cause for Delinquency.
Note: Exception: Secured internally prepared returns: For secured returns (e.g., returns notated with "Process as Original" with a attached Form 13133) or Prepared returns (e.g., returns notated "6020(b)" or "SFR") (Substitute for Return), enter the applicable CCC as indicated on the return and/or attached form.
CCC "W" - Cleared by Statute
(1) When the return has been cleared by Statute Control Function and has a "Cleared by Statute" stamp dated within the past 90 days, enter 01CCC "W".
CCC "X" - Credit Freeze
(1) Enter CCC "X" when an excess remittance must be applied to a different tax class or module. Complete Form 3465, Adjustment Request, and forward to Adjustments. The CCC "X" will freeze the tax module from refunding or offsetting by generating a Transaction Code 570.
CCC "Y" - Designates a Yield Condition
(1) Enter CCC "Y" whenever any of the following conditions occur:
Per Rev. Rul.71-232, gift tax paid by the donee which reduces the value of the property being transferred.
To denote "Combat zone" returns.
An early-filed gift tax return is received with remittance.
A Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, is received containing a Citizenship Code of "one" in Field 01CZC, indicating the taxpayer is neither a citizen nor a resident of the U.S. (See IRM 3.11.106.22.8, Citizenship Code Form 709, for details.)
Tax Year 1976 and prior tax returns or returns in need of special manual computation.
(2) Early-Filed Returns - If a gift was given in 2023, the return was filed in 2023, and the return is due April 15, 2024, the return cannot be processed until after December 31, 2023. Post the return for the year that the gift was given. For example, if the gift was given in January 2022, post the return as 202212. If a gift was given in 2022, the return was filed in 2022, and the return is due April 15, 2023, the return cannot be processed until after December 31, 2022. Post the return for the year that the gift was given. For example, if the gift was given in January 2021, post the return as 202112. This applies to remittance (numbered) returns.
(3) Gift Tax Paid (Form 709 only) - If it is expressly shown or implied that payment of tax by donee or from property itself is a condition of transfer (Rev. Rul. 71-232), then the Gift tax paid by the donee is deducted from the value of transferred property by the donor.
(4) Kansas City Submission Processing Center will edit CCC "Y" on Form 709 filed by nonresidents who are not citizens.
CCC "3" - No Reply Received/Suppress Credit Interest
(1) Enter CCC "3" when no reply is received for required correspondence sent to the taxpayer. The CCC "3", when posted to the Master File with a TC 150, suppresses credit interest.
CCC "7" - Reasonable Cause Denied
(1) Enter CCC "7" when Compliance Services, Estate and Gift Tax Campus Operation has determined that the taxpayer has furnished unacceptable reasons for failure to file or pay timely. If both CCC’s "D" and "R" are present, do not enter CCC "7". CCC "7" is invalid with both CCC "D" and CCC "R". However, CCC "7" may be present with either CCC "D" or CCC "R". decide the correct CCC, and correct Field 01CCC.
Note: Cincinnati Field Support Operation - Campus Estate and Gift, will review the returns in Code and Edit and make these determinations. Error Correction/Resolution/Suspense will not make this determination for any Form 706, 709-NA, or Form 709 series returns.
Field 01RCD - Received Date
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01RCD is transcribed from the stamped or edited date in the center of Page 1 of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. The IRS received date is entered in YYYYMMDD format and must be present on all Form 709’s.
(3) The IRS received date will appear invalid if:
The month (fifth and sixth digits) is other than 01 through 12.
The day (seventh and eighth digits) is other than 01 through 31 for the months 01, 03, 05, 07, 08, 10 or 12; 01 through 30 for the months 04, 06, 09, or 11; 01 through 28 for month 02; or 01 through 29 for month 02 during leap year.
An alpha, special character, or blank is present in the field.
(4) If the IRS received date is missing or illegible, decide using the following priority:
Postmark Date/Private Delivery Service (i.e., Federal Express).
Service Center Automated Processing System, digital date.
Revenue officer's Signature Date.
Signature Date.
Exception: Do not use the Signature Date on Prior Year Returns.
Julian Date minus 10 days.
(5) If the taxpayer has been contacted for clarification or more information, enter correspondence received date (Field 01CRD).
(6) If 01PIC has a "1" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 01PIC.
(7) If more than one IRS received date is present, use the earliest date. Circle out all others. If date is incorrect, enter correct date in Field 01RCD.
(8) When processing an early-filed return, change the IRS received date to the first date after the tax period.
Field 01PIC - Penalty and Interest (P/I) Code
(1) Check for coding and transcription errors and correct as needed.
(2) Code "1" if prepaid penalty is present and the IRS received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Valid entries are "1" or blank.
If only precomputed interest is shown, enter CCC "R" (Field 01CCC) as well as P/ I Code "one". (See IRM 3.11.106.6, Penalty and Interest Code, and IRM 3.11.106.9.8, CCC "R" Reasonable Cause for Delinquency)
CCC "R", if present, will override the P/I Code "1" with regard to delinquency penalty only.
(3) If 01PIC has a "1" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, delete 01PIC.
(4) If a penalty other than delinquency, late payment or failure to pay is shown on a return, (e.g., negligence) and the notation "3465 Prepared", does not appear on the return:
Prepare 3465, Adjustment Request, to request assessment of the penalty.
Show on the Form 3465, Adjustment Request, 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.
Note the return "3465 Prepared" and route Form 3465, Adjustment Request, to Adjustments.
Field 01CAF - CAF Indicator
(1) Editing of CAF codes is no longer required.
(2) Form 2848, Power of Attorney and Declaration of Representative (POA), and Form 8821, Tax Information Authorization (TIA), are forwarded to the Central Authorization File Unit (CAF) by the Code and Edit function.
Invalid Conditions
(1) Field 01CAF is invalid if it contains any entry.
Correction Procedures
(1) If a code is present on the screen, clear Field 01CAF.
(2) Leave a limited Power of Attorney attached to the return. A limited Power of Attorney restricts the authorization to the preparation of the return to which it is attached.
(3) Original documents, photocopies, or documents submitted by facsimile transmission (FAX) are acceptable for processing.
(4) The Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization, must contain the following information:
The name, SSN and address of the taxpayer
The name and address of the designated representative, (Power or Attorney), or appointee, Tax Information Authorization (TIA)
The type of return (individual, corporate, etc.) and the tax form number
The tax year(s) or period(s)
The taxpayer's signature and date of signature
For Form 2848, Power of Attorney and Declaration of Representative, only, a signed and dated declaration of good standing from the representative
Note: You may not send refunds to appointees named on a Tax Information Authorization. Route the authorization to the submission processing campus CAF function for further processing.
(5) If the POA/TIA is received, not attached to any return or document, route it to the Submission Processing Campus CAF function. If the authorization is attached to the correspondence, review the correspondence to decide if other requests were made. If they were, photocopy the correspondence and send the copy along with the authorization to the CAF function for processing. If not, send correspondence and authorization to the CAF function for processing.
(6) Do not detach and send POAs/TIAs filed for specific issues unless the document authorizes recognition for a return besides the specific issue. In that case, a copy of the POA/TIA must be sent to the CAF function to input the return portion by the CAF system. Examples of specific issues include but are not limited to the following:
Form 843, Claim for Refund and Request for Abatement.
Form SS-4, Application for Employer Identification Number.
(7) "General Powers of Attorney" or "Durable Powers of Attorney" do not contain sufficient information to process on CAF and must be retained in the case file or left attached to the related return. However, if a general or durable power of attorney is submitted with a completed Form 2848, Power of Attorney and Declaration of Representative, (a transmittal power of attorney), send both forms to the CAF function for processing.
Field 01PFC - Prior Filing Code
(1) This is a computer generated field that is not correctable.
Field 01CSI - Consent of Spouse Indicator (a.k.a., "Gift Consent Indicator")
(1) Check for coding and transcription errors and correct as needed.
(2) A blank is valid only with CCC "G". The valid codes are "0" and "1".
Note: For tax year 2002 and prior year returns. This field must be present when there are entries in Fields 02- A (Gifts Attributable to Spouse) or 02- C (Gifts Included from Spouse).
Code "1" is used when the spouses agree that all gifts made by them in that year, will be considered as given by both so that one-half may be claimed by each.
Code "0" is used when Code "1" is not applicable.
(3) If there is any indication of taxpayer intent to split gifts on the return, allow the consent.
(4) Any of the following conditions constitute a valid consent:
The taxpayer/spouse checks "Yes" on Page 1, Part 1, Line 12 (tax year 2023 and prior), or Page 2 Part 3 line 1 for tax year 2024.).
The taxpayer/spouse signature is present on Page 1, Part 1, Line 18 (for Tax Year 2023 and prior). ( Signature for consenting spouse removed from form, no longer needed, for tax year 2024 and subsequent) but a check box was added on Part 3, Line 7.
Note: Per Chief Counsel decision, this signature must be an actual signature, or digital signature on or after August 28, 2020..
A timely signed jurat (a signed statement containing the same language found on Page 1, Part 1, Line 18 (for tax year 2023 and prior), from the spouse is received.
Note: Signature line for Spouse no longer on Form 709 for tax year 2024 and subsequent, line replaced with a check box.
The consent of the husband is indicated (signified) on the wife's return and the wife's consent is signified on the husband's return.
The consent of each spouse is signified on their own return.
The consents of both spouses are signified on one of the returns.
If Schedule A , Part 1, 2, or 3 shows Gifts by Spouse information, consider this a valid consent by spouse.
If Schedule A , Part 4, shows Gifts by Spouse information, consider this a valid consent by spouse.
(5) IRC 2513 states that if husband and wife consent, all gifts made to third parties will be considered as made one-half by each. This is commonly called "splitting gifts". It benefits spouses by allowing them to claim additional exclusions from gift tax see IRM 3.11.106.23.10, Consent Information/Consent of Spouse, for more details. Consent applies only to those gifts made while the husband and wife are married. Consent is sufficient if one of the following conditions is present:
The consent of the husband is indicated on the wife's return, and the wife's consent is on the husband's return.
The consent of each spouse is signified on each of their own return.
The consents of both spouses are signified on one of the returns.
Note: From this point, the word "taxpayer" refers to the return-in-hand while the word "spouse" refers to the return being sought or to a return with an amount present on Page 2, Part 3, Schedule A, Line 2 and/or 4 (for prior year returns. These lines are not included on the 2003 and subsequent form, but are Error Resolution-input only Fields 02B and 02D for those returns containing a presence in these fields. See IRM 3.12.263.19.3.14, Error Resolution-input Only Fields, for further instructions.
(6) When both spouses file a return and consent to split gifts and the spouse’s signature of consent is found on the return, enter consent code "1" in Field 01CSI.
(7) When both spouses file a return and consent to split gifts and the spouse’s signature of consent is not found on the return, (Tax Year 2023 and Prior).
Note: Spouse signature is no longer for 2024 and subsequent. A check box replaces it.
Note: Do not correspond for consenting spouse’s signature.
(8) A married couple may not file a joint gift tax return. Generally, when both consents to split their gifts, each spouse must file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, unless all the requirements of one of the two following exceptions listed below are met:
Exception One includes the following requirements;
Only one spouse gives any gifts;
The total value of the gifts to each third-party donee does not exceed $34,000 and
All the gifts constitute present interests. (See IRM 3.11.106.22.10), Consent Information/Consent of Spouse. For information regarding present and future interests see IRM 3.12.263.19.3.4, Total Number of Donees and IRM 3.12.263.23.2.2, Correction Procedures.Exception Two includes the following requirements:
Only one spouse (the donor spouse) gave gifts of more than $18,000 but not more than $36,000 (for tax year 2024 and subsequent), (17,000 but not more than $34,000 for tax year 2023), to any third-party donee.
The only gifts given by the consenting spouse were gifts of not more than $18,000 to third-party donees other than those to whom the donor spouse made gifts; and,
All gifts by both spouses constitute present interests.
(9) If these conditions are met, only the donor must file a return. If only one spouse is required to file a return, the consent of both spouses shall be signified on the return. See above for consent criteria.
(10) Once you decide that a valid consent is made:
Enter a "1" in Field 01CSI; and a code of "1" without a Spouse's Social Security Number (SSN), Field 01SSS, will cause Field 01CSI to appear invalid. See IRM 3.12.263.19.2.4, Field 01SSS - Spouse’s Social Security Number (SSN), for instructions on securing the SSN.
Field 01DSI - DSUE Indicator
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01DSI must be "1" (Yes) or "2" (No).
Field 01DAC (Digital Assets)
(1) Check for coding and transcription and correct as needed.
(2) Field 01DAC must be 1 (Yes) or 2 (No).
Field 01CZC - Citizenship Code
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01CZC must be "1" or blank. If the taxpayer stated that his legal residence is not in the United States and they are not a citizen of the United States (Page 1, Part 1, Line 13 for tax year 2024 and subsequent), or (Page 1, Part 1 line 7 for 2023 and prior), Code "1" will be entered in Field 01CZC.
Field 01CRD - Correspondence Received Date
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01CRD must be blank or have a numeric entry in YYYYMMDD format.
(3) This field is invalid if:
It is not numeric.
The date is earlier than or equal to the return due date.
The date is equal to or earlier than the IRS received date (Field 01RCD).
The date is later than the processing date.
(4) When it has been determined that a return is unprocessables and the taxpayer must be contacted, the date the reply is received is the correspondence received date. See IRM 3.12.263.2.8, Unprocessables Conditions-Gift Tax Returns, for more information.
(5) Both the original IRS received date and the correspondence received date must be entered in Fields 01RCD and 01CRD.
(6) On Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return the correspondence received date is shown to the left of Part 2, of Page 1 (Tax Computation Section).
(7) Do not enter correspondence received date in the following situations:
The original IRS received date is before October 4, 1982.
The correspondence reply was received before the due date of the return.
The correspondence was not necessary due to an IRS processing error.
(8) If the taxpayer does not reply to required correspondence or gives a insufficient reply then enter CCC "3" in Field 01CCC.
Field 01DTH - Death Indicator
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01DTH must be "1" or blank and is transcribed from Page 1, Part 1, Line 8(for tax year 2023 and prior) or , (Page 1, part 1, line 14 for tax year 2024 and subsequent), of the return. The indicator is used to show the return is from a deceased donor. If the box on Line 14 is checked, enter "1" only if the donor died during the year of the gift.
(3) This field is invalid if Field 01DTH is "1" and Field 01DOD (Date of Death) is blank, or if Field 01DOD is present and Field 01DTH is blank.
(4) If Date of Death is after the tax period of the return:
Delete the entries in Fields 01DTH and 01DOD.
Delete CCC "F", if present.
Field 01DOD - Date of Death
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01DOD is transcribed from the dotted portion of Line 8 (for tax year 2023 and prior), or, Page 1, part 1, line 14 (for tax year 2024 and subsequent), in YYYYMMDD format. It cannot be later than the IRS received date.
(3) This field is invalid if Field 01DTH is "1" and Field 01DOD is blank. Field 01DOD is invalid if Field 01CCC does not contain a CCC "F". See IRM 3.12.263.19.2.6.5, CCC "F" Final Return, if the DOD is after the tax period.
(4) If Field 01DOD is blank and Field 01DTH contains a "1", search attachments.
Research INOLE for DOD.
If not found, delete entries in Fields 01DTH, 01DOD, and CCC "F", if present.
Field 01TND - Total Number of Donees
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01TND is transcribed from Page 1, Part 1, Line 10 (for tax year 2023 and prior), or Page 1, Part 1, Line 17 (for tax year 2024 and subsequent), of Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return. It may be blank or a numeric from 001 to 999.
Field 01TND must be blank when no Annual Exclusion (Field 0202) is claimed on Schedule A, Part 4, Line 2 of Form 709. If a number of donees is indicated but no Annual Exclusion is claimed, Field 01TND will appear invalid. If the Annual Exclusion is truly blank or zero, delete the entry in Field 01TND.
Field 01TND must have a number from 1 to 999 that is equal to or is greater than the Annual Exclusion claimed. The computer limits the Annual Exclusion (for gifts) to the number of donees multiplied by $18,000 (for 2024).
TAX YEAR | FOREIGN SPOUSE EXCLUSION |
|---|---|
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
(3) See IRM 3.12.263.19.3.4, Field 0202 Annual Exclusions, for information and instructions for Field 0202, Annual Exclusions, to decide the number of donees.
(4) Who is a donee? A donee is:
An individual - Each individual to whom a gift is directly given is a donee. A donee is recognized as one donee regardless of how many gifts are received in that year.
A charitable organization - Each charitable organization to which a gift is directly or indirectly given is a donee. As with individuals, the organization is recognized as one donee regardless of how many gifts are given in that year.
The beneficiary(ies’) of a trust - A trust can be set up for one or a number of beneficiaries. These can be individuals or charitable organizations. Note that it is the number of beneficiaries who have interest in the trust that determines the number of donees, not the number of trusts. Do not correspond for list of donees (beneficiaries) of a trust. Allow the number of donees (who have present interest in the trust) claimed to offset the annual exclusion being taken.
Example: Mr. XXXX gives $100,000 to a trust. The beneficiaries of the trust are his eight grandchildren. If each grandchild has a present interest in the trust, the number of donees Mr. Reis can claim is 8.
Example: Mrs. XXXX gives $18,000 each to four separate trusts. All four trusts have only one beneficiary, a son. The son has a present interest in each trust. The number of donees Mrs. Reis can claim is one.
(5) If Field 01TND is blank and there is an Annual Exclusion amount claimed on Schedule A, Part 4, Line 2, enter the number of donees claimed in the box on Page 1, Part 1, Line 17.
(6) If the box on Page 1, Part 1, Line 14 is blank, and there is an Annual Exclusion amount claimed on Schedule A, Part 4, Line 2, enter the correct number of donees you determined from Parts 1, 2, and 3 (Schedule A) and/or attachments. The gift given to a particular person (donee) must have been given in the tax period of the return and the person (donee) receiving the gift is to be counted once, even if the donee received more than one gift in the same tax period.
(7) If there is an underprint in Field 0202 (Annual Exclusion), correct transcription errors in Field 01TND and Field 0202.
Verify the number of donees in Field 01TND by checking Schedule A, Parts 1, 2, and 3 and/or attachments (or, for tax year 2002 and prior year returns, Schedule A, Parts 1 and 2 and/or attachments).
Verify the amount claimed as an Annual Exclusion on Schedule A, Part 4, Line 2 (See IRM 3.12.263.19.3.4, Field 0202 - Annual Exclusions, for correction procedures for Field 0202 (Annual Exclusion)).
Research BRTVU to see if spouses return has posted. If so, accept the number of donees.
(8) If a foreign spouse is one of the donees, a "1" must be entered in Field 01FSI (Foreign Spouse Indicator).
(9) If you cannot determine the number of donees (from Schedule A, Parts 1, 2, 3, and/or attachments), and the return is that of a single taxpayer for which Consent of Spouse is not required, correspond for the number and list of donees.
If there is no reply, limit the number of donees to the number actually listed on Schedule A, Parts 1, 2, and 3 and/or attachments.
Send TPNC 99. States, "Because we did not receive a reply to our request for a listing of the donees claimed on your return, we have adjusted the number of donees and the annual exclusion claimed to the number of donees actually shown on your return. "
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
(10) If you cannot decide the number of donees, and the return is that of a taxpayer for which Consent of Spouse is required, permit the number of donees necessary to offset the Annual Exclusion being claimed. See IRM 3.12.263.19.2.11, Field 01CSI - Consent of Spouse Indicator.
Field 01FSI - Foreign Spouse Indicator
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01FSI is edited by Code and Edit to the left margin next to Schedule A, Part 1. The valid code entries are blank and "1". Enter a "1" for a foreign spouse and leave blank for a domestic spouse. A foreign spouse could be determined if the amount on Schedule A, Part 4, Line 2 (or, on tax year 2002 and prior year returns, Schedule A, Part 3, Line 6) includes the $185,000 amount for the foreign spouse for tax year 2024. The annual exclusion for a foreign spouse cannot exceed the amount allotted for the tax year in question, with the amounts for each tax year shown as follows:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
2014 | $145,000 |
2013 | $143,000 |
2012 | $139,000 |
2011 | $136,000 |
2010 | $134,000 |
2009 | $133,000 |
2008 | $128,000 |
2007 | $125,000 |
2006 | $120,000 |
2005 | $117,000 |
2004 | $114,000 |
2003 | $112,000 |
2002 | $110,000 |
Caution: The foreign spouse exclusion amount changed during Tax Year 1988. This amount was $10,000 through July 13, 1988. This amount was changed to $100,000 effective for gifts made after July 13, 1988. If there are any problems regarding this return, a manual computation of the tax may be required.
(3) If the foreign spouse indicator is not present, but Schedule A, Part 4, Line 2 (or, for tax year 2002 and prior year returns, Schedule A, Part 3, Line 6) contains the foreign spouse exclusion amount for that year, enter a "1" in the left margin on Schedule A, Part 1, next to Column A ("Item Number"). Verify from the return or attachments that the donee is a foreign spouse. DO NOT CORRESPOND.
(4) If this field 01FSI errors, Review Page 2, Schedule A, Column B:
If a foreign spouse is a donee, enter a "1" in Field 01FSI. See Figure 3.12.263-2, Foreign Spouse Indicator.
If a foreign spouse is not a donee, delete any invalid entry.
(5) See IRM 3.12.263.19.2.18, Field 01TND - Total number of Donees, and IRM 3.12.263.19.3.4, Field 0202 - Annual Exclusion for more information.
Field 01RFC - Refund Code
(1) The Refund Code is entered by Error Resolution, to show that a refund of $10,000,000 or more has been issued.
(2) Due to the large amount of interest we would pay if a refund of this size is not handled timely, these returns will have the refund processed manually.
(3) The Refund Code is used for returns with Manual Refunds of $10,000,000 or more.
This field must be blank or "1".
When a Refund Code of "1" is present, CCC "O" must be present in Field 01CCC.
Note: CCC "O" is entered in Field 01CCC when either a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request of IDRS Generated Refund (IGR), is attached to the return. See IRM 3.12.263.3.2.2, Refund Return’s, 45-day-Jeopardy and Large Dollar Refunds to ensure the refund is issued timely.
Invalid Condition
(1) Field 01RFC is invalid if it contains a numeric entry other than a blank or "1".
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) SSPND using AC 341.
(3) Once a manual refund has been issued according to local procedures, input a "1" in Field 01RFC and an "O" in Field 01CCC.
Note: See IRM 3.12.263.3.2.2, Refund Returns (45-day-Jeopardy and Large Dollar Returns). to ensure the refund is issued timely.
(4) If the condition is being resolved and a manual refund will NOT be issued, input a "1" in Field 01RFC only.
Field 01PSN - Preparer’s Tax Identification Number (PTIN)
(1) The Preparer's SSN (2009 and prior revisions) or Preparer's Tax Identification Number (PTIN) is located to transcribe from the right of the Preparer's Signature at the bottom right corner of Form 709 (Page 1).
(2) The Preparer's SSN must be a nine-digit numeric character. The SSN cannot be all zeros or nines.
(3) A PTIN is a valid entry in the Preparer's Social Security Number area at the bottom of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. The PTIN is an eight-digit number preceded by the alpha "P" (e.g., PXXXXXXXX).
(4) Circle out the Preparer's SSN or PTIN if it is invalid.
Field 01PEN - Firm’s EIN
(1) The Firm's EIN (EIN -2009 and prior revisions) is located below the Preparer's PTIN box (Preparer's SSN or PTIN box for 2009 and prior revisions) transcribe from the bottom right corner of Form 709 (Page 1).
(2) The Firm's EIN must be a nine-digit numeric character. The EIN cannot be all zeros or nines.
(3) Circle out the Preparer's EIN if it is invalid.
Field 01PTN - Preparer Phone Numbers
(1) The Paid Preparer's Phone Number is located below the Firm's EIN (EIN for 2009 and prior revisions) transcribe from the bottom right corner of Form 709 (Page 1).
(2) No action is required on amended returns.
(3) If a complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, edit to the "Phone no." line.
(4) If a complete Paid Preparer's Phone Number is not located or the number is illegible, circle out the incomplete or illegible phone number.
Section 02 - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Section 02 field designators, line numbers, field lengths, and titles are listed below. This section is transcribed in dollars only. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Send the appropriate TPNC.
Field | Line | Field |
|
|---|---|---|---|
02GPB | Part 1, Schedule A, Top center | 12 | Basis of Gifted Property |
0201 | Schedule A, Part 4, Line 1 | 12 | Total Gifts |
0202 | Schedule A, Part 4, Line 2 | 12 | Annual Exclusion |
0203 | Schedule A, Part 4, Line 3 | 12 | Total Included Amount of Gifts |
0204 | Schedule A, Part 4, Line 4 | 12 | Gifts of Interest Amount |
0205 | Schedule A, Part 4, Line 5 | 12 | Exclusions Attributable to Gifts |
0206 | Schedule A, Part 4, Line 6 | 12 | Marital Deductions |
0207 | Schedule A, Part 4, Line 7 | 12 | Charitable Deductions |
0208 | Part 4, Line 8 | 12 | Total Deductions |
0209 | Schedule A, Part 4, Line 9 | 12 | Balance After Deductions |
0210 | Schedule A, Part 4, Line 10 | 12 | GST Taxes Payable |
0211 | Schedule A, Part 4, Line 11 | 12 | Taxable Gifts (Balance After GST) Amount |
Error Resolution Input Only Fields |
|
|
|
02A | Schedule A, Part 3, Line 2 (tax year 2002 and prior) | 12 | Gifts Attributable to Spouse |
02B | Schedule A, Part 3, Line 3 (tax year 2002 and prior) | 12 | Balance After Spouse |
02C | Schedule A, Part 3, Line 4 (tax year 2002 and prior) | 12 | Gifts Included from Spouse |
02D | Schedule A, Part 3, Line 5 (tax year 2002 and prior) | 12 | Total Gifts |
(2) This section is required unless Field 01CCC contains a "G". The fields in this section are transcribed from Schedule A (Form 709), United States Gift (and Generation-Skipping Transfer) Tax Return.
(3) The computer cannot compute, and complete math verification will not be done under the following conditions:
Tax period (Field 01TXP) is prior to 197701.
Tax period (Field 01TXP) is invalid.
Processing Field Errors
(1) Check for coding and transcription errors and correct as needed.
(2) If the money amounts on a return exceed the maximum field length allowable, reject with AC 610 or 611.
(3) Enter the maximum amount allowable on the original return. Recompute the tax data and enter the corrected amount(s) on the screen display and the return. DO NOT SEND A TAXPAYER NOTICE CODE to taxpayer.
(4) Write on the original return, "Dummy Return prepared due to overflow document".
(5) Using a red pen, prepare a "Dummy Return" by computing and entering the remaining overflow money amount(s) for the correct fields. Enter the following data on the "Dummy Return".
On the top of the return, write "Dummy Prepared from Overflow Return".
Entity data from the original return.
The DLN from the original return.
CCC "G" in Field 01CCC.
In the signature area, write "Signature on Original Return".
(6) Place the dummy return in the batching basket to be numbered and processed.
Field 02GPB - Basis of Gifted Property
(1) Check for coding and transcription errors and correct as needed.
(2) Code and Edit will enter the total at the top center of, Schedule A part 1 (Donors Adjusted Basis of Gift Column (Column D, Parts I and 2) if more than one item is listed in the column.
(3) If blank, enter $1 (one dollar) in Field 02GPB.
Field 0201 - Total Gifts Current Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0201 is transcribed from Schedule A, Part 4, Line 1. The amount represents the total of all of the Donee’s gifts that are listed in the last column of Item 1 of Schedule A, Parts 1, 2, and 3, column H . When it appears that there is a math error on the return, check to see if the taxpayer has entered the correct amount on this line. If the correct amount can be determined from the total of Parts 1, 2, and 3, column J (Net Transfer), correct Field 0201. (Correspond only if it is necessary to obtain other items needed to complete processing the return; otherwise, DO NOT correspond solely for this information.)
(3)
If | Then |
|---|---|
Sufficient Reply |
|
No reply or Insufficient Reply |
|
Field 0202 - Annual Exclusions for more Information
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0202 is transcribed from Schedule A, Part 4, Line 2 (orSchedule A, Part 3, Line 6 on tax year 2002 and prior). This field is computed by multiplying the number entered in Field 01TND by:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $18,000 |
2023 | $17,000 |
2022 | $16,000 |
2018 through 2021 | $15,000 |
2013 through 2017 | $14,000 |
2009 through 2012 | $13,000 |
2006 through 2008 | $12,000 |
2002 through 2005 | $11,000 |
Verify the entry in Field 01TND and 0202.
If the amount in the Annual Exclusion (Field 0202) is blank or zero, delete entry in the number of donees (Field 01TND).
If there is an amount in Field 0202 which the taxpayer did not use in his computation of tax, follow his intent and delete the amount in Field 0202.
(3) The first $18,000 of gifts of present interest to each donee during the calendar year (2024) is subtracted in figuring the amount of taxable gifts. Verify the annual exclusion claimed against the number of donees box on Page 1, Part 1, Line 17. (See IRM 3.12.263.19.2.18, Field 01TND-Total Number of Donees, to decide the correct number of donees.) An underprint will generate in Field 0202 if the taxpayer's figure is greater than the computer's computation (Field 01TND multiplied by $18,000 for tax year 2024). If Field 0202 is blank and valid, delete any entry in Field 01TND.
(4) For gifts made after July 13, 1988, for U.S. Citizens giving gifts to their non-citizen spouse, the annual exclusion was increased from $10,000 to $185,000 in tax year 2024. The annual exclusion for nonresident alien spouses for the year:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
2014 | $145,000 |
2013 | $143,000 |
2012 | $139,000 |
2011 | $136,000 |
2010 | $134,000 |
2009 | $133,000 |
2008 | $128,000 |
2007 | $125,000 |
2006 | $120,000 |
2005 | $117,000 |
2004 | $114,000 |
2003 | $112,000 |
2002 | $110,000 |
(5) If the taxpayer has claimed the Annual Exclusion (Field 0202), accept the entry only if the gift is to a non-citizen spouse:
If the gift is indeed to a non-citizen spouse, verify that a "1" is present in Field 01FSI.
If the gift is not to a non-citizen spouse, delete the "1", if present, in Field 01FSI, send a TPNC 91. TPNC 91 States, “An error was made in computing your annual exclusion. Your Unified Credit/Applicable Credit has been adjusted accordingly.”
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
(6) The Annual Exclusion for a non-citizen spouse as a donee cannot exceed
Tax Year | Annual Exclusion |
|---|---|
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
2014 | $145,000 |
2013 | $143,000 |
2012 | $139,000 |
2011 | $136,000 |
2010 | $134,000 |
2009 | $133,000 |
2008 | $128,000 |
2007 | $125,000 |
2006 | $120,000 |
2005 | $117,000 |
2004 | $114,000 |
2003 | $112,000 |
If 01TND equals four (one of which is the non-citizen spouse donee) and "1" is in Field 01FSI, then Field 0202 (Annual Exclusion) cannot exceed $239,000.
The preceding $239,000 is calculated by allowing $185,000 for the non-citizen spouse and $18,000 for each donee (see calculation below). Total donees equal 4 (Field 01TND).
If the amount in Field 0202 (Annual Exclusion) is less, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
1 = $185,000 (non-citizen spouse)
3 × $18,000 = $54,000 (each additional donee)
$239,000 (Total allowable Annual Exclusion Field 0202)
(7) All gifts made during the calendar year to a donee are fully excluded under the Annual Exclusion if all are gifts of present interest and if they total $18,000 or less for Tax Year 2024, and subsequent.
Note: If a gift is less than $18,000, limit the amount of Annual Exclusion for that gift to the amount of the gift.
(8) For the purpose of the exclusion, there are two kinds of gifts, gifts of present interest and gifts of future interest.
Gifts of present interest qualify for the exclusion. Gifts of future interest do not.
A gift is a gift of present interest if the donee can do anything they want with the gift or can do anything they want with the income from the property (if only present interest is an income interest - exclusion would be limited to value of income interest). (The taxpayer is free to spend or to benefit from the gift when it is received.)
A gift is a gift of future interest if the donee cannot do so until sometime in the future.
Exception: If a gift is given to a minor, the gift and income from the gift may be spent by, or for the benefit of the donee prior to attaining the age of 21, and any amounts remaining will pass to the donee once they have reached age 21, the gift is considered to be a gift of a present interest.
If the taxpayer show that a gift of a future interest has been given and does not claim an exclusion, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
If the taxpayer does not show that a gift of a future interest has been given but does not claim an exclusion, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
If the taxpayer show that a gift of a future interest has been given, and an exclusion has been taken for that gift, disallow the exclusion and notify the taxpayer with a Taxpayer Notice Code () 98. TPNC 98 States, "We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of future interest do not qualify for the exclusion."
Tax Year | Exclusion Amounts |
|---|---|
2024 | $18,000 |
2023 | $17,000 |
2022 | $16,000 |
2021 through 2018 | $15,000 |
201712 through 201301 | $14,000 |
201212 through 200901 | $13,000 |
200812 through 200601 | $12,000 |
200512 through 200201 | $11,000 |
200112 through 198201 | $10,000 |
198112 and prior | $3,000 |
(9) If the taxpayer filed his return on a prior year version of Form 709, Field 0202 is twice the allowable amount and there is no entry in Field 02C, it has to be determined if the taxpayer is filing a joint return. See IRM 3.12.263.3.2, Community Property Information, for further information on community property. To decide if this is a joint return (which is not permissible):
More than one name in the entity portion of the return.
Consent of spouse.
If Question 15, Page 1, Part 1, is answered "Yes".
(10) If there is an indication that this is a "joint return", the return is to be rejected for correspondence, using Form 180-C, Correspondence Action Sheet is used to tell the taxpayers that joint returns are not permissible when reporting gifts on Form 709. If no reply, establish as separate returns based on the information available. When in doubt, resolve in the government's favor.
(11) If there is only one name in the caption, there is a consent of spouse present, or if Question Page 2, Part 3, line 1 is answered "No"( for tax year 2024) the return must be considered a separate filing and the exclusion must be reduced to $18,000 per donee.
(12) If the taxpayer filed a return on a prior year version of Form 709, and it appears that their intent was to zero out the amount for total gifts and the taxpayer misplaced the exclusion amount on Line 5 (Field 02D), move this amount to Line 6 (Field 0202) and enter the result of Line 5 minus Line 6 on Line 7 (Field 0203) even if the result is negative.
Note: For Tax Year 2003 and later, former Line 5 is not on the return, and former Lines 6 and 7 become Lines 2 and 3, on Schedule A, Part 4, on the current form, respectively.
(13) The consenting spouse must also file a Gift Tax Return if the spouses elect gift splitting. See IRM 3.11.106.22.10, Consent Information/Consent of Spouse (aka), ("Gift Consent Indicator"). See IRM 3.12.263.19.2.11, Field 01CSI-- Consent of Spouse Indicator, for further information on split gifts. Both the donor spouse and the consenting spouse must each file separate gift tax returns unless all requirements of either Exception One or Two below are met.
(14) Exception One - During the calendar year:
Only one spouse made any gifts.
The total value of these gifts to each third - party donee does not exceed $34,000.
All of these gifts constitute present interests.
(15) Exception Two - During the calendar year:
Only one spouse (the donor spouse) made gifts of more than $18,000 (for Tax Year 2024), but not more than $36,000 to any third - party donee.
The only gifts made by the other spouse (the consenting spouse) were gifts of not more than $18,000 to third-party donees other than those to whom the donor spouse made gifts.
All of the gifts by both spouses constitute present interests.
(16) If either Exception One or Two is met, only the donor spouse needs to file a return and the consenting spouse signifies consent on the return. See IRM 3.12.263.19.2.11, Field 01CS I- ( Consent of Spouse Indicator) (aka) ("Gift Consent Indicator"), for consent criteria. In these cases, only one-half of the total gift must be reported on Schedule A Part 4, Line 1 (Field 0201) and the number of donees and/or annual exclusion must NOT be doubled. Edit Fields 0201 through 0203 to reflect the amounts appropriate to each field.
(17) If neither Exceptions One or Two are met, correspond for separate gift tax returns. (It is possible the spouses return was already received.) See IRM 3.12.263.19.2.11, Field 01CSI-Consent of Spouse Indicator (aka) ("Gift Consent Indicator").
(18) If Field 0202 is the first entry on Schedule A Part 4, and Parts 1, 2, and 3 are blank, and there is an entry in Field 0203, add the amounts in Fields 0202 and 0203 and enter in Field 0201. If the gift total can be determined from Schedule A, 1, 2, or 3, or attachments, enter the total in Field 0201.
(19) If the amount in Annual Exclusion (Field 0202) is blank or zero, blank the number of donees.
Field 0203 - Total Included Gifts Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0203 is transcribed from Schedule A, Part 4, Line 3. It is computed by subtracting Field 0202 from Field 0201. This field can be positive or negative.
(3) If part or all the amount included on Schedule A, Part 4, Lines 1 and 2 are described by the taxpayer as an incomplete gift, or if the taxpayer cites Regulation 25.2511-2, the amount must not be included as part of the gift for the year.
Search for an attachment showing the instrument of transfer.
If not found, DO NOT correspond.
If the taxpayer furnished the document or statement indicating the incomplete gift, reduce the amounts on Lines 1, 2, and/or 3 (or, on tax year 2002 or prior year returns, Page 2, Part 3, Lines 1, 2, 3, and 5) accordingly.
(4) If the taxpayer includes a gift on Schedule A which is not included in the gift total on Schedule A, Part 4, Line 1 (Field 0201) (on Page 2, Part 3, Line 1 for prior year returns), search the return and/or attachments for an explanation.
If the taxpayer furnished the document or a statement indicating the incomplete gift, reduce the amounts in Fields 0201, 02A, 02B, and 02D by the amount of the incomplete gift and edit Schedule A, Part 4, Fields 0201, 02A, 02B, and 02D.
If not found, correspond.
If the taxpayer does not respond, consider the amount as a regular gift.
Field 0204 - Gifts of Interest Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0204 is transcribed from Schedule A, Part 4, Line 4, (or, for tax year 2002 and prior years, Page 2 (Schedule A), Part 3, Line 8).
(3) A gift given to a spouse who was not a U.S. citizen (i.e., a "1" is present in Field 01FSI) at the time of the gift may not be entered in Field 0204.
Field 0205 - Exclusions Attributable to Gifts
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0205 is transcribed from Schedule A, Part 4, Line 5 (or, for tax year 2002 or prior years, Page 2 (Schedule A), Part 3, Line 9). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Field 0206 - Marital Deduction
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0206 is transcribed from Schedule A, Part 4, Line 6 (or, for tax year 2002 or prior years, Page 2 (Schedule A), Part 3, Line 10). It is computed by subtracting Field 0205 from Field 0204.
If an entry is present in Field 0206, and no entry is present in Field 0204, enter Field 0206 amount in Field 0204.
If there is no entry present in Field 0204, an amount is present in Field 0205, and zero, blank or negative is present in Field 0206, delete Field 0205.
If Fields 0206 or 0208 underprint, check for transcription errors in Fields 0204, 0205, and 0206.
Field 0207 - Charitable Deductions
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0207 is transcribed from Schedule A, Part 4, Line 7 (or, for tax year 2002 or prior years, Page 2 (Schedule A), Part 3, Line 11). If an underprint in Total Deductions (Field 0208) occurs, verify that this amount was transcribed correctly.
Field 0208 - Total Deductions Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0208 is transcribed from Schedule A, Part 4, Line 8 (or, for tax year 2002 or prior years, Page 2 (Schedule A), Part 3, Line 12). It is computed by adding Field 0206 and Field 0207.
Field 0209 - Balance After Deductions Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0209 is transcribed from Schedule A, Part 4, Line 9, (or, for tax year 2002 or prior years, Page 2 (Schedule A), Part 3, Line 13). It is computed by subtracting Field 0208 from Field 0203.
(3) If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry.
Field 0210 - GST Taxes Payable Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0210 is transcribed from Schedule A, Part 4, Line 10 (or, for tax year 2002 or prior years, Page 2 (Schedule A), Part 3, Line 14). This field is brought forward from Form 709, Schedule D, Part 3, Column H (or Column 3 for tax year 2002 and prior year returns).
(3) Verify that the amount was transcribed correctly. This amount is carried over to Page 1, Part 2, Line 16 (Field 0316).
Field 0211 - Taxable Gifts (Balance After GST) Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0211 is transcribed from Schedule A, Part 4, Line 11 (or, for tax year 2002 or prior years, Page 2 (Schedule A), Part 3, Line 15). It is computed by adding Field 0209 and Field 0210. This amount is carried forward to Page 1, Part 2, Line 1 (Field 0301).
ERS-Input Only Fields (Fields 02A, 02B, 02C, and 02D)
(1) The following fields were deleted from the Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, for Tax Year 2003 and later. All of these lines were previously contained on Form 709 for Tax Year 2002 and prior years as Lines 2, 3, 4, and 5, respectively, and were contained on Page 2, Schedule A, Part 3. If required, Error Resolution examiners will input these fields to the record if they are required for math verification of the return.
Field 02A - Gifts Attributable to Spouse
(1) Field 02A will NOT be included on form revisions dated 2003 and later. (This field was previously transcribed from Page 2, Part 3, Line 2 (on tax year 2002 and prior year returns), and represents the amount of gifts attributable to the spouse when spouses elect gift-splitting.) It was deductible if the gifts listed in Item 1 of Schedule A were made by husband and wife equally.
(2) If there is an entry present in Field 02A, Field 01CSI must contain a "1", which shows the spouses consent for the gifts to be made equally. An entry must also be present in Field 01SSS (Spouse's Social Security Number).
If the SSN is missing, research, using INOLE/NAMES/NAMEI/ENMOD (INOLE/ENMOD are for names; NAMES/NAMEI for numbers).
If not found through research, reject to Entity Control, using AC 320.
Field 02B - Balance After Spouse Amount
(1) Field 02B will NOT be included on form revisions dated 2003 and later. (This field was transcribed from Page 2 (Schedule A), Part 3, Line 3 (on tax year 2002 and prior year returns). It is computed by subtracting Field 02A from Field 0201.)
Field 02C - Gifts Included from Spouse
(1) Field 02C will NOT be included on form revisions dated 2003 and later. (This amount was transcribed from Page 2 (Schedule A), Part 3, Line 4, and represents the amount included from Schedule A, Line 2, of the spouses return (on tax year 2002 and prior year returns). Consent Code "1" must also be present in Field 01CSI if Field 02C contains an entry. A Spouse's Social Security Number (SSN) must also be present in Field 01SSS. If Consent Code "0", convert to a "1".
If the SSN is missing, research, using INOLE/NAMES/NAMEI/ENMOD (INOLE/ENMOD are for names; NAMES/NAMEI for numbers).
If not found through research, reject to Entity Control, using AC 320.
Field 02D - Total Gifts Amount
(1) Field 02D will NOT be included on form revisions dated 2003 and later. (This field was transcribed from Page 2 (Schedule A), Part 3, Line 5 (on tax year 2002 and prior year returns.)) It is computed by adding Fields 02B and 02C (which are ERS-Input Only Fields).
Section 03 - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Section 03 field designators, line numbers, field lengths and titles are listed below. Most fields in this section are transcribed dollars only.
Exception: Fields 0307 (Maximum Applicable Credit Amount), 0317 (Total Taxes), 0318 (Prior Payments Amount), and 03B/R (Balance Due or Overpayment) are transcribed dollars and cents. The computer-checked fields in this section will underprint if the taxpayer and computer figures ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ computer figures exceed tolerance shown for any, some, or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Do not bring up underprints. Send the appropriate TPNC.
Field | Line | Field |
|
|---|---|---|---|
0301 | Page 1, Part 2, Line 1 | 12 | Current Taxable Gifts |
0302 | Page 1, Part 2, Line 2 | 12 | Prior Taxable Gifts |
0303 | Page 1, Part 2, Line 3 | 12 | Total Taxable Gifts |
0304 | Page 1, Part 2, Line 4 | 12 | Current Total Tax Taxpayer |
0305 | Page 1, Part 2, Line 5 | 12 | Total Tax Taxpayer Prior |
0306 | Page 1, Part 2, Line 6 | 12 | Balance of Tax |
03BTV | Balance of Tax Verified | 12 | (ERS Only Input Field) |
0307 | Page 1, Part 2, Line 7 | 15 | Restored Exclusion Amount |
0307> | Maximum Unified Credit Allowed (2010 and prior revisions) |
| Computer-Generated Amount |
0308 | Page 1, Part 2, Line 8 | 12 | Unified/Applicable Credit (Prior) |
0309 | Page 1, Part 2, Line 9 | 12 | Balance After Unified/Applicable Credit |
0310 | Page 1, Part 2, Line 10 | 12 | Adjustment to Unified/Applicable Credit 20 percent |
0311 | Page 1, Part 2, Line 11 | 12 | Balance After Unified/Applicable Adjustment |
0312 | Page 1, Part 2, Line 12 | 12 | Unified/Applicable Credit |
0313 | Page 1, Part 2, Line 13 | 12 | Foreign Gift Tax Credit |
0314 | Page 1, Part 2, Line 14 | 12 | Total Credits Amount |
0315 | Page 1, Part 2, Line 15 | 12 | Total Gift Tax |
0316 | Page 1, Part 2, Line 16 | 12 | GST Tax |
0317 | Page 1, Part 2, Line 17 | 12 | Total Taxes |
0318 | Page 1, Part 2, Line 18 | 12 | Prior Payments Amount |
03B/R | Page 1, Part 2, Line 19 and 20 | 12 | Balance Due/Overpayment |
03MCT | Page 1, Part 2, Dotted Line 17 | 12 | Manually Corrected Total Tax |
(2) This section is required unless CCC (Field 01CCC) contains a "G". All fields in this section are transcribed from Page 1, Part 2.
(3) The computer can not compute and complete math verification will not be done for the following conditions:
The tax period (Field 01TXP) is prior to 197701.
The tax period (Field 01TXP) is invalid (i.e., the tax period has other than a calendar-year period ending (e.g., other than "YYYY12")).
Field 0301 - Current Taxable Gifts
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0301 is transcribed from Page 1, Part 2, Line 1. The computer will math verify the entry by comparing it with Field 0211 Schedule A, Part 4, Line 11 (OR Page 3 (Schedule A), Part 4, Line 15 for tax year 2002 and prior year returns)). If different, Field 0301 will underprint with Field 0211.
Field 0302 - Prior Taxable Gifts
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0302 is transcribed from Page 1, Part 2, Line 2. It is taken from Schedule B, Line 3.
(3) When a math error causes Field 0303 to underprint, check that the amount on Schedule B, Line 3 is correct. Verify the correct amount was transferred correctly to Page 1, Part 2, Line 2.
(4) If there is a discrepancy between Page 3, Schedule B, Line 3, and Page 1, Part 2, Line 2, enter the correct amount in Field 0302.
Field 0303 - Total Taxable Gifts
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0303 is transcribed from Page 1, Part 2, Line 3. It is computed by adding Field 0301 and Field 0302.
Field 0304 - Total Tax Taxpayer (Current)
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0304 is transcribed from Page 1, Part 2, Line 4. It is computed by using the tax rates in effect for the tax period to calculate the tax on Line 3 (Field 0303).
Field 0305 - Total Tax Taxpayer (Prior)
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0305 is transcribed from Page 1, Part 2, Line 5. It is computed by using the tax rates in effect for the tax period to the amount on Line 2 (Field 0302).
Field 0306 - Balance of Tax
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0306 is transcribed from Page 1, Part 2, Line 6. It is computed by subtracting Field 0305 from Field 0304.
Field 03BTV - Balance of Tax Verified
(1) Field 03BTV is an Error Resolution-Only input field. It will be entered by Error Resolution examiners when verifying tax computations and tax rates in effect for the appropriate tax period used for computing Line 6 (Balance of Tax). Field 03BTV will be used to verify the correct tax computation for prior year returns and returns involving special tax rates. The resulting entries for this field are entered in "dollars only" amounts.
Field 0307 -Restored Exclusion Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0307 is transcribed from Page 1, Part 2, Line 7. This amount is brought forward from Part 6, Section D, Line 4.
Field 0307> - Maximum Unified Credit Allowed (2010 and prior revisions).
(1) Field 0307> is a non-correctable computer-generated field. See IRM 3.12.263.19.4.11, Field 0309 - Balance After Unified Credit Amount, below for more information regarding the allowable Unified Credit amounts.
Field 0308 - Unified/Applicable Credit (Prior)
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0308 is transcribed from Page 1, Part 2, Line 8. This amount represents the Unified/Applicable Credit allowed after December 31, 1976, that has already been used against prior periods. This amount is brought forward from Page 3, Schedule B, Column C, Line 1.
Field 0309 - Balance After Unified/Applicable Credit Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0309 is transcribed from Page 1, Part 2, Line 9. It is computed by subtracting Field 0308 from one of the following amounts:
Tax Year Gift was Given in | Unified/Applicable Credit Amount |
|---|---|
2024 | $5,389,800 |
2023 | $5,113,800 |
2022 | $4,769,800 |
2021 | $4,625,800 |
2020 | $4,577,800 |
2019 | $4,505,800 |
2018 | $4,417,800 |
2017 | $2,141,800 |
2016 | $2,125,800 |
2015 | $2,117,800 |
2014 | $2,081,800 |
2013 | $2,045,800 |
2012 | $1,772,800 |
2011 | $1,730,800 |
2010 | $330,800 |
2009 through 2002 | $345,800 |
(3) If 0308 is blank, enter the amount from Line 7.
(4) For tax year 2010, the amount in Field 0309 cannot be less than zero. If the taxpayer has figured this field to a negative amount, which will generate a positive amount, delete the entry.
(5) The following table contains information for the unified/applicable credit and exemption equivalent for citizens and residents (Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return):
Tax Year | Applicable Credit Amount | Basic Exclusion Amount |
|---|---|---|
2024 | $5,389,800 | $13,610,000 |
2023 | 5,113,800 | $12,920,000 |
2022 | $4,769,800 | $12,060,000 |
2021 | $4,625,800 | $11,700,000 |
2020 | $4,577,800 | $11,580,000 |
2019 | $4,505,800 | $11,400,000 |
2018 | $4,417,800 | $11,180,000 |
2017 | $2,141,800 | $5,490,000 |
2016 | $2,125,800 | $5,450,000 |
2015 | $2,117,800 | $5,430,000 |
2014 | $2,081,800 | $5,340,000 |
2013 | $2,045,800 | $5,250,000 |
2012 | $1,772,800 | $5,120,000 |
2011 | $1,730,800 | $5,000,000 |
2010 | $330,800 | $1,000,000 |
2002 thru 2009 | $345,800 | $1,000,000 |
Field 0310 - Adjustment to Unified/Applicable Credit (20%)
(1) Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from Page 1, Part 2, Line 10. It represents the 20 percent of the specific exemption that was used between September 8, 1976, and January 1, 1977. It is reported on Schedule B, Column D.
(3) If Field 0310 is blank and the tax period is 197703 or later and an amount for specific exemptions was used after September 8, 1996, is present on Schedule B, Column D, 20 percent of this amount must be entered in Line 10 (Field 0310).
Verify that the amount was transcribed correctly.
If amount for specific exemptions cannot be determined from Schedule B, Column D, check the amount on Schedule B, Line 2, to decide what the amount will be, if possible. DO NOT correspond with taxpayer.
(4) This amount relates to the Unified/Applicable Credit allowed as a result of the Tax Reform Act of 1976.
Field 0311 - Balance After Unified/Applicable Adjustment
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0311 is transcribed from Page 1, Part 2, Line 11. It is computed by subtracting Field 0310 from Field 0309. If 0310 is blank, enter the amount from Field 0309 in Field 0311.
(3) If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry.
Field 0312 - Unified/Applicable Credit
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0312 is transcribed from Page 1, Part 2, Line 12. It is computed by using the smaller of Field 0306 or Field 0311. The Unified/Applicable Credit Amount for decedent’s dying in said tax year for Gift tax returns:
Tax Year | Unified/Applicable Credit Amount |
|---|---|
2024 | $5,389,800 |
2023 | $5,113,800 |
2022 | $4,769,800 |
2021 | $4,625,800 |
2020 | $4,577,800 |
2019 | $4,505,800 |
2018 | $4,417,800 |
2017 | $ 2,141,800 |
2016 | $2,125,800 |
2015 | $2,117,800 |
(3) If Field 0312 under prints with a larger amount than the taxpayer's entry, check Schedule B, Column D for amounts present for gifts made after September 8, 1976, that the taxpayer used to compute an adjustment to Unified/Applicable Credit.
(4) If the amount from Schedule B, Column D has not been entered in Field 0310, bring the amount forward and enter on Line 10 and in Field 0310.
(5) If the taxpayer has computed Field 0312 correctly but is using a larger amount of Unified/Applicable Credit than needed to offset the tax, bring up the underprint in Field 0312. Do not correspond with the taxpayer.
(6) See IRM 3.12.263.19.4.11, Field 0309-Balance After Unified/Applicable Credit Amount, for Unified/Applicable Credit amounts for prior years.
Field 0313 - Foreign Gift Tax Credit
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0313 is transcribed from Page 1, Part 2, Line 13. This credit is allowed if a gift tax was paid to Austria, Denmark, France, Germany, Japan, and the United Kingdom.
Note: Although the U.S.-Australian gift tax treaty is still in effect, Australia stopped imposing gift tax beginning July 1, 1979. Therefore, any claim of Australian gift tax paid will be disallowed. Any foreign taxes claimed from countries other than those listed above must also be disallowed. Delete Field 0313.
Field 0314 - Total Credits
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0314 is transcribed from Page 1, Part 2, Line 14. It is computed by adding Field 0312 and Field 0313.
Field 0315 - Total Gift Tax
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0315 is transcribed from Page 1, Part 2, Line 15. It is computed by subtracting Field 0314 from Field 0306.
Field 0316 - Generation-Skipping Transfer Tax
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0316 is transcribed from Page 1, Part 2, Line 16. This amount is brought forward from (Schedule D), Part 3, Column H, Total generation-skipping transfer tax.
(3) If this field is set to error, verify the figures on Schedule D. Taxpayers may apply either of the following Maximum GST Allowable Exemption amounts (in the table below) for Line 1, Part 2 (GST Exemption Reconciliation (Code Section 2631 and Section 2652(a)(3)) of Schedule C (Form 709).
Maximum Allowable Generation-Skipping Transfer (GST) Exemption:
GST Transfers In | Exemption |
|---|---|
2024 | $13,610,000 |
2023 | $12,920,000 |
2022 | $12,060,000 |
2021 | $11,700,000 |
2020 | $11,580,000 |
2019 | $11,400,000 |
2018 | $11,180,000 |
2017 | $5,490,000 |
2016 | $5,450,000 |
2015 | $5,430,000 |
2014 | $5,340,000 |
2013 | $5,250,000 |
2012 | $5,120,000 |
2011 | $5,000,000 |
2010 | $5,000,000 |
2009 | $3,500,000 |
2006 thru 2008 | $2,000,000 |
2005 | $1,500,000 |
2004 | $1,500,000 |
2003 | $1,120,000 |
2002 | $1,100,000 |
|
|
|
|
|
|
Field 0317 - Total Tax
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0317 is transcribed from Page 1, Part 2, Line 17. It is computed by adding Field 0315 and Field 0316 (EXCEPT FOR 197612 and prior).
If taxpayer has entered an amount for tax and there are no entries in Fields 0308 through 0312, correspond, if necessary, for more information. SSPND with AC 211.
Field 0318 - Prior Payments
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0318 is transcribed from Page 1, Part 2, Line 18.
(3) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Field 03B/R - Balance Due/Refund (Overpayment)
(1) Check for coding and transcription errors and correct as needed.
(2) Field 03B/R is transcribed from Page 1, Part 2, Line 19 or 20. It is computed by subtracting Field 0318 (Prior Payment Amount) from Field 0317 (Total Taxes). The computer will underprint with a positive amount for a balance due and a negative for an overpayment.
(3) Any penalty or interest included by the taxpayer in Field 03B/R must be subtracted from the amount on Line 19 or 20 and the difference entered in Field 03B/R. Also, "X" Line 19 or 20 and edit the difference to the left of the "X".
Field 03MCT - Manually Corrected Total Tax
(1) Field 03MCT is entered by Error Correction on the dotted portion of Page 1, Part 2, Line 17. It is present only when the tax period is 197612 and prior.
(2) If the taxpayer's figure in Field 0317 is incorrect, enter the Manually Corrected Tax in Field 03MCT.
(3) If tax is zero, enter $.01 in Field 03MCT.
Note: The amounts entered for this field are entered in dollars and cents.
Section 04 -Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Check for coding and transcription errors and correct as needed.
(2) Section 04 field designators, line numbers, field lengths and titles are listed below. Section 04 cannot be present on a "G" coded return; if present, delete with CC DLSEC.
Field | Line | Field |
|
|---|---|---|---|
04PNL | 1 | 35 | Primary Name Line |
04LRE | 4 | 2 | Legal Residence Domicile(709-NA only) |
04CON | 4 | 35 | In Care of Name Line |
04ADD | 4 | 35 | Street Address |
04FAD | 4 | 35 | Foreign Address |
04CTY | 6 | 22 | City/Major City Code |
04ST | 7 | 2 | State |
04ZIP | 8 | 12 | ZIP Code |
Field 04PNL - Primary Name Line
(1) The Primary Name Line:
Cannot contain numerics or ampersands.
Can contain alpha, less-than sign (<), hyphens (-), and blanks.
Must contain at least one less-than sign (<).
Cannot contain more than two less-than sign (<).
First position cannot be blank.
A less-than sign (<) cannot be preceded or followed by another less-than sign (<) or a blank.
A character cannot follow two consecutive blanks.
Limited to 35 positions.
Last word cannot be split.
(2) A hyphen followed by a less-than sign (<) is allowed in the first position of a single named person and a second less-than sign (<) will be placed after the last character of the last name prior to Jr., Sr., or III (the third). The less-than sign (<) and hyphen are the only special characters allowed. Below are examples of edited names:
"James Hart Jr." edited to "James <Hart < JR."
"Robert William III" edited to "Robert <William <III"
(3) Care must be taken with hyphenated names. Below are examples of edited names:
"Elizabeth Allyn Marshall Will" edited to "Elizabeth Allyn M. <Will".
"Elizabeth Allyn Marshall-Will" edited to "Elizabeth A.<Marshall-Will".
Field 04CON - "In-Care-of"
(1) Field 04CON is transcribed from Page 1, Part 1, Box 4.
(2) This field has 35 positions, and the valid characters are alpha, numeric, ampersand, dash, slash or percent.
Note: The first character of the "in-care of" name must be alpha or numeric.
Invalid Conditions
(1) Field 04CON is invalid if any of the following conditions are present:
The first position is % (percent) and the second position is not blank.
The first position is blank.
The first character of the "in-care-of" name is not alpha or numeric.
There are two consecutive blanks between significant characters.
Correction Procedures
(1) Check for coding and transcription errors using information below and correct as needed.
If | Then |
|---|---|
A % (percent) is in the first position | 1. Verify there is a blank in the second position. |
A blank is in the first position | 1. Delete blank. |
The first character of the "in-care-of" name is not alpha or numeric | 1. Verify "in-care-of" name on the return. |
Two consecutive blanks are present between significant characters | Delete any unnecessary blanks in Field 04CON. |
Field 04FAD - Foreign Address
(1) Field 04FAD is transcribed from Page 1, Part 1, Box 4.
This field will contain an entry when there is a foreign address present on the return.
Field 04FAD must not be present on "G" coded returns.
(2) Valid characters are alpha, numeric and special characters.
Invalid Conditions
(1) Field 04FAD is invalid if any of the following conditions are present:
The first position is blank.
Any character follows two consecutive blanks.
There are more than 35 characters present in the field.
Note: Integrated Submission and Remittance Processing (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.
Correction Procedures
(1) Check for coding and transcription errors using the information below to correct as needed. Exhibit 3.12.263-14, Foreign Country Codes.
If | Then |
|---|---|
Field 04FAD is present | 1. GTSEC 04.
|
A foreign address is not present on the return | 1. SSPND 610. |
(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 and take the following action.
If | Then |
|---|---|
The information is the same | Take no action and continue processing |
The information is different | 1. Detach Form 8822, Change of Address. |
Foreign Addresses - General Information
(1) KCSPC will process Estate and Gift tax foreign/international addresses and U.S. Possessions returns.
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
Federated States of Micronesia
Guam
Marshall Islands
Northern Mariana Islands
Palau
Puerto Rico
Virgin Islands
(2) The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old format, such as APO New York, NY 091XX, convert to the new state code abbreviation using the information below:
ZIP Code | Address | Abbreviation |
|---|---|---|
340XX | APO/DPO/FPO | AA |
090XX-098XX | APO/DPO/FPO | AE |
962XX-966XX | APO/DPO/FPO | AP |
Foreign Addresses
(1) A foreign address will contain:
Street Address or PO Box
City or town name
Other principal subdivision (i.e., province, state, and county).
Postal code, if present
Foreign country
(2) Returns with addresses in the U.S. Possessions are considered to be a foreign return for processing purposes and are entered in the same way as domestic addresses Use the information below for Abbreviation:
Note: A two character alpha code must be entered in Field 04ST for the possession name.
U.S. Possession | 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 |
(3) A ZIP code must be present.
Field 04ADD - Street Address
(1) Field 04ADD may contain alpha, numeric, blank, hyphen or slash.
(2) The first position must be alpha or numeric.
(3) If this field is present, city and state must also be present unless a major city code is used.
(4) If a foreign address is present, the city and postal code, if present, must be entered in this field.
Field 04CTY - City/Major City Code
(1) Field 04CTY may contain alpha characters and blanks.
(2) The first position cannot be blank.
(3) If this field is present, a state must be present unless a major city code has been used. For valid major city codes, see Document 7475, State and Address Abbreviations, Major City Codes (MCC’s) ZIP Codes and Countries.
(4) If a foreign address is shown on the return, enter appropriate foreign country code in Field 04CTY.
(5) If a Major City code is used, a street address (Field 04ADD) must be present.
Field 04ST - State
(1) Valid state abbreviation must be present if Field 04CTY (City) is present. For valid state abbreviations, see Document 7475, State and Address Abbreviations, Major City Codes (MCC’s) ZIP Codes and Countries. See Exhibit 3.12.263-13, U.S. Possessions ZIP Codes.
(2) This field must be blank if major city code used in Field 04CTY.
Field 04ZIP - ZIP Code
(1) This field must be all numeric or blank.
(2) This field must be blank if the address is foreign.
(3) If a valid ZIP code is not shown on the return, refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s) ZIP Codes and Countries, or ZIP code directory. See Exhibit 3.12.263-13 U.S. Possessions ZIP Codes.
(4) If the first three digits of the ZIP code (Field 04ZIP) do not agree with Fields 04CTY or 04ST, it will result in Error Code 016. Errors in Fields 04CTY or 04ST will also result in Error Code 014.
(5) If only the first three digits of the ZIP code can be determined, enter "01" as the fourth and fifth digits.
Section 05 - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Check for transcription errors and correct as needed.
(2) Section 05 field designators, line numbers, field lengths and titles are listed below.
Field Designator | Line Number | Field Length | Title |
|---|---|---|---|
05C1A | Sch C, Part 1, col A | 35 | DSUE Deceased Spouse Name 1 |
05C1B | Sch C, Part 1, col B | 8 | DSUE Date of Death 1 |
05C1C | Sch C, Part 1, col C | 1 | DSUE Portability Election Indicator 1 |
05C1D | Sch C, Part 1, col D | 15 | DSUE Portable Amount 1 |
05C1E | Sch C, Part 1, col E | 15 | DSUE Donor Gift Amount 1 |
05C1F | Sch C, Part 1, col F | 8 | DSUE Date of Gift 1 |
05C2A | Sch C, Part 2, col A | 35 | DSUE Deceased Spouse Name 2 |
05C2B | Sch C, Part 2, col B | 8 | DSUE Date of Death 2 |
05C2C | Sch C, Part 2, col C | 1 | DSUE Portability Election Indicator 2 |
05C2D | Sch C, Part 2, col D | 15 | DSUE Portable Amount 2 |
05C2E | Sch C, Part 2, col E | 15 | DSUE Donor Gift Amount 2 |
05C2F | Sch C, Part 2, col F | 8 | DSUE Date of Gift 2 |
05C3A | Sch C, Part 2, col A | 35 | DSUE Deceased Spouse Name 3 |
05C3B | Sch C, Part 2, col B | 8 | DSUE Date of Death 3 |
05C3C | Sch C, Part 2, col C | 1 | DSUE Portability Election Indicator 3 |
05C3D | Sch C, Part 2, col D | 15 | DSUE Portable Amount 3 |
05C3E | Sch C, Part 2, col E | 15 | DSUE Donor Gift Amount 3 |
05C3F | Sch C, Part 2, col F | 8 | DSUE Date of Gift 3 |
Field 05C1A - DSUE Deceased Spouse Name 1
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C1A is transcribed from Schedule C, Part 1, column A.
(3) If present, valid values are alpha numeric.
Field 05C1B - DSUE Date of Death 1
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C1B is transcribed from Schedule C, Part 1, column B.
(3) If present, valid values are numeric.
Field 05C1C - DSUE Portability Election Indicator 1
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C1C is transcribed from Schedule C, Part 1, column C.
(3) If present, valid values are "1" (Yes) and "2" (No).
Field 05C1D - DSUE Portable Amount 1
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C1D is transcribed from Schedule C, Part 1, column D.
(3) If present, valid values are numeric.
Field 05C1E - DSUE Donor Gift Amount 1
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C1E is transcribed from Schedule C, Part 1, column E.
(3) If present, valid values are numeric.
Field 05C1F - DSUE Date of Gift 1
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C1F is transcribed from Schedule C, Part 1, column F.
(3) If present, valid values are numeric.
(4) If taxpayer only provided the year, add trailing numbers 1231 to create eight digits in YYYYMMDD format.
Field 05C2A - DSUE Deceased Spouse Name 2
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C2A is transcribed from Schedule C, Part 2, column A.
(3) If present, valid values are alpha numeric.
Field 05C2B - DSUE Date of Death 2
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C2B is transcribed from Schedule C, Part 2, column B.
(3) If present, valid values are numeric.
Field 05C2C - DSUE Portability Election Indicator 2
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C2C is transcribed from Schedule C, Part 2, column C.
(3) If present, valid values are "1" (Yes) and "2" (No).
Field 05C2D - DSUE Portable Amount 2
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C2D is transcribed from Schedule C, Part 2, column D.
(3) If present, valid values are numeric.
Field 05C2E - DSUE Donor Gift Amount 2
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C2E is transcribed from Schedule C, Part 2, column E.
(3) If present, valid values are numeric.
Field 05C2F - DSUE Date of Gift 2
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C2F is transcribed from Schedule C, Part 2, column F.
(3) If present, valid values are numeric.
(4) If taxpayer only provided the year, add trailing numbers 1231 to create eight digits in YYYYMMDD format.
Field 05C3A - DSUE Deceased Spouse Name 3
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C3A is transcribed from Schedule C, Part 2, column A.
(3) If present, valid values are alpha numeric.
Field 05C3B - DSUE Date of Death 3
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C3B is transcribed from Schedule C, Part 2, column B.
(3) If present, valid values are numeric.
Field 05C3C - DSUE Portability Election Indicator 3
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C2C is transcribed from Schedule C, Part 2, column C.
(3) If present, valid values are "1" (Yes) and "2" (No).
Field 05C3D - DSUE Portable Amount 3
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C3D is transcribed from Schedule C, Part 2, column D.
(3) If present, valid values are numeric.
Field 05C3E - DSUE Donor Gift Amount 3
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C3E is transcribed from Schedule C, Part 2, column E.
(3) If present, valid values are numeric.
Field 05C3F - DSUE Date of Gift 3
(1) Check for coding and transcription errors and correct as needed.
(2) Field 05C3F is transcribed from Schedule C, Part 2, column F.
(3) If present, valid values are numeric.
(4) If taxpayer only provided the year, add trailing numbers 1231 to create eight digits in YYYYMMDD format.
Section 6 - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Check for transcription errors and correct as needed.
(2) Section 06 field designators, line numbers, field lengths and titles are listed below.
Field Designator | Line Number | Field Length | Title |
|---|---|---|---|
06C4A | Sch C, Part 2, col A | 35 | DSUE Deceased Spouse Name 4 |
06C4B | Sch C, Part 2, col B | 8 | DSUE Date of Death 4 |
06C4C | Sch C, Part 2, col C | 1 | DSUE Portability Election Indicator 4 |
06C4D | Sch C, Part 2, col D | 15 | DSUE Portable Amount 4 |
06C4E | Sch C, Part 2, col E | 15 | DSUE Donor Gift Amount 4 |
06C4F | Sch C, Part 2, col F | 8 | DSUE Date of Gift 4 |
06C5A | Sch C, Part 2, col A | 35 | DSUE Deceased Spouse Name 5 |
06C5B | Sch C, Part 2, col B | 8 | DSUE Date of Death 5 |
06C5C | Sch C, Part 2, col C | 1 | DSUE Portability Election Indicator 5 |
06C5D | Sch C, Part 2, col D | 15 | DSUE Portable Amount 5 |
06C5E | Sch C, Part 2, col E | 15 | DSUE Donor Gift Amount 5 |
06C5F | Sch C, Part 2, col F | 8 | DSUE Date of Gift 5 |
06C6A | Sch C, Part 2, col A | 35 | DSUE Deceased Spouse Name 6 |
06C6B | Sch C, Part 2, col B | 8 | DSUE Date of Death 6 |
06C6C | Sch C, Part 2, col C | 1 | DSUE Portability Election Indicator 6 |
06C6D | Sch C, Part 2, col D | 15 | DSUE Portable Amount 6 |
06C6E | Sch C, Part 2, col E | 15 | DSUE Donor Gift Amount 6 |
06C6F | Sch C, Part 2, col F | 8 | DSUE Date of Gift 6 |
Field 06C4A - DSUE Deceased Spouse Name 4
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C4A is transcribed from Schedule C, Part 2, column A.
(3) If present, valid values are alpha numeric.
Field 06C4B - DSUE Date of Death 4
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C4B is transcribed from Schedule C, Part 2, column B.
(3) If present, valid values are numeric.
Field 06C4C - DSUE Portability Election Indicator 4
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06CD4C is transcribed from Schedule C, Part 2, column C.
(3) If present, valid values are "1" (Yes) and "2" (No).
Field 06C4D - DSUE Portable Amount 4
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C4D is transcribed from Schedule C, Part 2, column D.
(3) If present, valid values are numeric.
Field 06C4E - DSUE Donor Gift Amount 4
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C4E is transcribed from Schedule C, Part 2, column E.
(3) If present, valid values are numeric.
Field 06C4F - DSUE Date of Gift 4
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C4F is transcribed from Schedule C, Part 2, column F.
(3) If present, valid values are numeric.
(4) If taxpayer only provided the year, add trailing numbers 1231 to create eight digits in YYYYMMDD format.
Field 06C5A - DSUE Deceased Spouse Name 5
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C5A is transcribed from Schedule C, Part 2, column A.
(3) If present, valid values are alpha numeric.
Field 06C5B - DSUE Date of Death 5
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C5B is transcribed from Schedule C, Part 2, column B.
(3) If present, valid values are numeric.
Field 06C5C - DSUE Portability Election Indicator 5
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C5C is transcribed from Schedule C, Part 2, column C.
(3) If present, valid values are "1" (Yes) and "2" (No).
Field 06C5D - DSUE Portable Amount 5
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C5D is transcribed from Schedule C, Part 2, column D.
(3) If present, valid values are numeric.
Field 06C5E - DSUE Donor Gift Amount 5
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C5E is transcribed from Schedule C, Part 2, column E.
(3) If present, valid values are numeric.
Field 06C5F - DSUE Date of Gift 5
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C5F is transcribed from Schedule C, Part 2, column F.
(3) If present, valid values are numeric.
(4) If taxpayer only provided the year, add trailing numbers 1231 to create eight digits in YYYYMMDD format.
Field 06C6A - DSUE Deceased Spouse Name 6
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C6A is transcribed from Schedule C, Part 2, column A.
(3) If present, valid values are alpha numeric.
Field 06C6B - DSUE Date of Death 6
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C6B is transcribed from Schedule C, Part 2, column B.
(3) If present, valid values are numeric.
Field 06C6C - DSUE Portability Election Indicator 6
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C6C is transcribed from Schedule C, Part 2, column C.
(3) If present, valid values are "1" (Yes) and "2" (No).
Field 06C6D - DSUE Portable Amount 6
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C6D is transcribed from Schedule C, Part 2, column D.
(3) If present, valid values are numeric.
Field 06C6E - DSUE Donor Gift Amount 6
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C6E is transcribed from Schedule C, Part 2, column E.
(3) If present, valid values are numeric.
Field 06C6F - DSUE Date of Gift 6
(1) Check for coding and transcription errors and correct as needed.
(2) Field 06C6F is transcribed from Schedule C, Part 2, column F.
(3) If present, valid values are numeric.
(4) If taxpayer only provided the year, add trailing numbers 1231 to create eight digits in YYYYMMDD format.
Section 7 - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Check for transcription errors and correct as needed.
(2) Section 07 field designators, line numbers, field lengths and titles are listed below.
Field Designator | Line Number | Field Length | Title |
|---|---|---|---|
07C7A | Sch C, Part 2, col A | 35 | DSUE Deceased Spouse Name 7 |
07C7B | Sch C, Part 2, col B | 8 | DSUE Date of Death 7 |
07C7C | Sch C, Part 2, col C | 1 | DSUE Portability Election Indicator 7 |
07C7D | Sch C, Part 2, col D | 15 | DSUE Portable Amount 7 |
07C7E | Sch C, Part 2, col E | 15 | DSUE Donor Gift Amount 7 |
07C7F | Sch C, Part 2, col F | 8 | DSUE Date of Gift 7 |
07DSU | Sch C, Total, col E | 15 | Total DSUE Amount |
0701 | Sch C, Line 1 | 15 | Donor's Basic Exclusion Amount |
0702 | Sch C, Line 2 | 15 | Total DSUE Amount |
0703 | Sch C, Line 3 | 15 | Restored Exclusion Amount |
0704 | Sch C, Line 4 | 15 | Applicable Exclusion Amount Add line 1, line 2 and line 3. |
0705 | Sch C line 5 | 15 | Applicable Credit Amount |
Field 07C7A - DSUE Deceased Spouse Name 7
(1) Check for coding and transcription errors and correct as needed.
(2) Field 07C7A is transcribed from Schedule C, Part 2, column A.
(3) If present, valid values are alpha numeric.
Field 07C7B - DSUE Date of Death 7
(1) Check for coding and transcription errors and correct as needed.
(2) Field 07C7B is transcribed from Schedule C, Part 2, column B.
(3) If present, valid values are numeric.
Field 07C7C - DSUE Portability Election Indicator 7
(1) Check for coding and transcription errors and correct as needed.
(2) Field 07C7C is transcribed from Schedule C, Part 2, column C.
(3) If present, valid values are "1" (Yes) and "2" (No).
Field 07C7D - DSUE Portable Amount 7
(1) Check for coding and transcription errors and correct as needed.
(2) Field 07C7D is transcribed from Schedule C, Part 2, column D.
(3) If present, valid values are numeric.
Field 07C7E - DSUE Donor Gift Amount 7
(1) Check for coding and transcription errors and correct as needed.
(2) Field 07C7E is transcribed from Schedule C, Part 2, column E.
(3) If present, valid values are numeric.
Field 07C7F - DSUE Date of Gift 7
(1) Check for coding and transcription errors and correct as needed.
(2) Field 07C7F is transcribed from Schedule C, Part 2, column F.
(3) If present, valid values are numeric.
(4) If taxpayer only provided the year, add trailing numbers 1231 to create eight digits in YYYYMMDD format.
Field 07DSU - Total DSUE Amounts
(1) Check for coding and transcription errors and correct as needed
(2) Field 07DSU is transcribed from Schedule C, Part 2, column E
(3) If present, valid values are numeric.
Field 0701 - Donor's Basic Exclusion Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0701 is transcribed from Schedule C, Line 1.
(3) If present, valid values are numeric.
Field 0702 - Total DSUE Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0702 is transcribed from Schedule C, Line 2.
(3) If present, valid values are numeric.
Field 0703 - Restored Exclusion Amount
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0703 is transcribed from Schedule C, Line 3.
(3) If present, valid values are numeric.
Math Consistency - Priority IV Errors (Form 709), United States Gift (and Generation-Skipping Transfer) Tax Return
(1) A Priority IV error will display whenever the contents of one field is inconsistent with the contents of another field, or when a math computation is incorrect. These errors will be assigned a specific Error Code and will display in ascending Error Code order.
(2) The screen display will show the error code assigned and all the fields needed to make the correction.
For some math error codes, a field name "NC" will display for the entry of a Taxpayer Notice Code (TPNC). Multiple taxpayer notice codes may be entered when multiple XX(s) are shown. Previously assigned TPNC(s) will display on the right - hand side of Line 3 of the screen.
A field labeled "CL" will be shown for the entry of a Clear Code on records when a change or correction may not be needed. All coding and transcription errors must be corrected, and all IRM procedures applied BEFORE entering a "C" in the Clear Field.
(3) All errors must be solved by:
Eliminating the error.
Entering a Clear Code.
Entering a Taxpayer Notice Code.
Suspending the document with the correct AC.
Error Code 001 - Tax Year - Invalid Entry
(1) Fields Displayed - Error Code 001 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
01TXP | Tax Period | 6 |
01CCC | Computer Condition Code | 10 |
01RCD | Received Date | 8 |
01RD> | Return Due Date | 8 |
Invalid Conditions
(1) Error Code 001 will generate when any of the following conditions is present:
CCC "G" is Not Present - The processing date is equal to or more than two years and 9 months after the return due date or the IRS received date (whichever is later) and CCC "W" is not present.
CCC "G" is Present - The processing date is equal to or more than two 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.
Correction Procedure
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Do not send the following returns to Statute Control for clearance. Instead, enter "W" in Field 01CCC and on the return and continue processing:
Any return secured by Compliance (i.e., 6020(b)).
Any return with a TC 59X.
Any return that is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133, Expedite Processing Cycle, attached.
Any return that is a 2020 and prior year original: Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2020 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90 - calendar day statute stamp has expired.
(3) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information using information below.
If | Then |
|---|---|
Field 01RCD is blank | 1. Enter the IRS received date in Field 01RCD. Use the earliest date if multiple received dates are present.
|
CCC "W" was entered incorrectly | Delete CCC "W" from Field 01CCC. |
The return has a stamp that shows a previous clearance by Statute Control within the last 90 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 90 days | 1. SSPND 310. |
Error Code 002 - Name Control Mismatch
(1) Fields Displayed - Error Code 002 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
CL | Clear Code |
|
01NC | Name Control/Check Digit | 4 |
>>>> | Name Control Underprint |
|
01SSN | Social Security Number | 9 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State | 2 |
04ZIP | ZIP Code | 12 |
Note: The literal "SECTION 04 NOT PRESENT" will display if no entries are in Section 04.
Invalid Conditions
(1) Error Code 002 will generate when the name control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF).
Correction Procedures
(1) Before taking any more 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 National Access Point. If Error Code 002 reappears, continue with the remainder of the correction procedures.
(2) When corrections are made to Field 01NC or Field 01SSN, the computer will validate the entries with the National Access Point and reset the OLE indicators as appropriate upon transmitting the Error Resolution screen.
(3) Check for misplaced entries, coding and transcription errors and correct as needed.
(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 decide the correct Name and to the following.
If | Then |
|---|---|
The name on the return or attachment agrees with the name control on INOLES | 1. Bring up the underprint. |
The name control on INOLES is different from the name on the return or attachment | Research NAMES/NAMEI for a new SSN. |
(6) If a new SSN is located, verify the name control using CC INOLES and take the following action.
If | Then |
|---|---|
The name control on INOLES agrees with the name on the return or attachment | 1. Ensure that the entity information agrees with the return. |
The SSN is changed | Write the correct SSN on the document above the SSN area. |
Credit needs to be transferred or payment posted to the wrong account | 1. Prepare Form 3465, Adjustment Request |
An SSN cannot be found | SSPND 320 to Entity Control |
(7) If the name on the return or attachment does not agree with the name control on INOLES, research ENMOD/MFREQ for a new name Using If/Then Chart take the following action.
Note: When researching ENMOD using an SSN, enter a "V" after the SSN.
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 |
|
Suspense Corrections
(1) Entity finds a valid SSN or assigns a SSN, research IDRS to decide if payments posted incorrectly take the following action:
If | Then |
|---|---|
The payment posted to the wrong SSN | 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. |
The payment posted correctly | 1. Enter correct SSN in Field 01SSN and on the return and transmit. |
Payment cannot be located | Enter "C" in the Clear Code field. |
Error Code 003 - Check Digit Invalid
(1) Fields Displayed - Error Code 003 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
01NC | Name Control | 4 |
01SSN | Social Security Number | 9 |
01CCC | Computer Condition Code | 10 |
Invalid Conditions
(1) Error Code 003 will generate when any of the following conditions are present:
A check digit is present but is not valid for the SSN.
The letters "E", "G", or "M" are present as Check Digits in Field 01NC.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information from below.
If | Then |
|---|---|
The check digit in Field 01NC does not agree with the return or is not legible | Enter the name control from the return in Field 01NC. |
The SSN on the return is not legible | Research NAMES/NAMEI for correct SSN. |
(3) If a new SSN is located, verify the name control using CC INOLES and take necessary action from If/Then Chart below.
If | Then |
|---|---|
The SSN on the return agrees with the SSN on INOLES | Enter name control from INOLES in Field 01NC. |
Name control on INOLES agrees with the name on the return or attachments | 1. Ensure that the entity information agrees with the return. |
The SSN is changed | Write the correct SSN on the document above the SSN area and in Field 01SSN. |
The payment posted to the wrong SSN | 1. 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. |
An SSN cannot be found | SSPND 320 to Entity Control |
(4) Entity finds a valid SSN or assigns a SSN research IDRS using CC BMFOL to decide if payments posted incorrectly follow If/Then Chart for further action.
If | Then |
|---|---|
The payment posted to the wrong SSN | 1. 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. |
The payment posted to the correct SSN | Enter the correct SSN in Field 01SSN and on the return. |
The payment cannot be located | No action required. |
Error Code 004 - Name Control/SSN Validation
(1) Fields Displayed - Error Code 004 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
CL | Clear Code |
|
01NC | Name Control/Check Digit | 4 |
>>>> | Name Control Underprint |
|
01SSN | Social Security Number | 9 |
Invalid Conditions
(1) Error Code 004 will generate when any of the following conditions is present:
The SSN is not present on the Master File National Access Point (NAP).
The Entity Index File (EIF) and the National Access Point were not accessed or were not operational, causing a blank underprint in Field 01NC.
Note: An underprint of "XXXX" shows that there is no account on the Master File, while a blank underprint shows that the National Access Point has not been accessed or was not operational.
Correction Procedures
(1) Before taking any more 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/SSN have posted to the National Access Point. If Error Code 004 reappears, continue with the remainder of the correction procedures.
(2) When corrections are made to Field 01NC or Field 01SSN, the computer will validate the entries with the National Access Point and reset the OLE indicators as appropriate upon transmitting the Error Resolution screen.
(3) Check for misplaced entries, coding and transcription errors and correct as needed.
(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 decide the correct name control following If/Then Chart below:
If | Then |
|---|---|
The name on the return or attachment agrees with the name control on INOLES | Bring up the underprint. |
The name on INOLES is different from the name on the return or attachment | Research NAMES/NAMEI for a new SSN. |
(6) If a new SSN is located, verify the name control using CC INOLES and take the following action.
If | Then |
|---|---|
The name control on INOLES agrees with the name on the return or attachment | 1. Ensure that the entity information agrees with the return. |
The SSN is changed | Write the correct SSN on the document above the SSN area and in Field 01SSN. |
The payment posted to the wrong SSN | 1. 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. |
An SSN cannot be found | SSPND 320 to Entity Control |
(7) If the Name on the return or attachment does not agree with the name control on INOLES, research ENMOD/MFREQ for a new name and take the following action.
Note: When researching ENMOD using an SSN, enter a "V" after the SSN.
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 the return to Entity Control, . |
Suspense Corrections
(1) Entity finds a valid SSN or assigns a SSN, research IDRS to decide if payments posted incorrectly use information below to perfect payments posted:
If | Then |
|---|---|
The payment posted to the wrong SSN | 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. |
The payment posted correctly | 1. Enter correct SSN in Field 01SSN and on the return and transmit. |
Payment cannot be located | Enter "C" in the Clear Code field. |
Error Code 007 - Received Date is Earlier than Tax Years
(1) Fields Displayed - Error Code 007 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
01TXP | Tax Period | 6 |
01CCC | Computer Condition Code | 10 |
01RCD | Received Date | 8 |
Invalid Conditions
(1) Error Code 007 will generate when the IRS received date is earlier than the first day of the tax period/year.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information from If/Then Chart below.
If | Then |
|---|---|
The IRS received date is invalid and it appears that the incorrect year was used and other information (postmark date, Service Center Automated Processing System, digital date, signature date, and/or Julian date) shows the received date will be the current year | Change the IRS received date to the current year and enter in Field 01RCD. |
The return is an early filed return | 1. SSPND 480. |
Suspense Corrections
(1) Check correspondence from the taxpayer to decide the correct action using the information below:
If | Then |
|---|---|
The taxpayer replies that the return is a "Final" | 1. Change the IRS received date to the first business day after the end of the tax year in Field 01RCD (i.e., January 2). |
The taxpayer replies that the return is not a "Final" return | SSPND 480 until the end of the tax period provided by the taxpayer. |
The taxpayer fails to reply or the reply is not adequate | 1. Enter CCC "3" in Field 01CCC. |
Error Code 010 - Amended Return "G" Coded
(1) Fields Displayed - Error Code 010 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
01CCC | Computer Condition Code | 10 |
01PIC | Penalty and Interest Code | 1 |
01CAF | CAF Indicator | 1 |
01PFC | Prior Filing Code | 1 |
01CSI | Consent of Spouse Indicator | 1 |
01CZC | Citizenship Code | 1 |
01DTH | Death Indicator | 1 |
01DOD | Date of Death | 8 |
01TND | Total Number of Donees | 3 |
01FSI | Foreign Spouse Indicator | 1 |
01RFC | Refund Code | 1 |
Sections 02 through 07 are present | Sections 02 through 07 are present | Sections 02 through 07 are present |
Invalid Conditions
(1) Error Code 010 will generate when CCC "G" is present, fields other than 01SSN, 01NC, 01DOD, 01CCC, 01DOB, 01RMIT, 01RCD and 01CRD are present, and Sections 02, 03 or 04 are present.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information from If/Then chart below.
(3) Determine if CCC "G" was input correctly:
If | Then |
|---|---|
Return shows amended, revised, supplemental, corrected, or superseding | Research BMFOL, SUMRY, and/or TXMOD to decide if information is exactly the same as the posted return. |
All information is not the same | 1. Process the return with CCC "G". |
All information is exactly the same | 1. Cancel the DLN. |
A return is not posted for the tax period and the return is an amended return | Continue processing as an amended return. |
A return is not posted for the tax period and the return is not amended (G coded in error) | 1. Enter all necessary data in Sections 02 through 04. |
Note: When deleting CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.
(4) If the return is zero balance and no entry appears in the underprint field and the Remittance Processing System Indicator is present:
Enter $.01 in Field 0317.
Continue processing.
(5) The Error Resolution tax examiner will research to attempt to apply the remittance amount by using the information below. If the data is not found, then SSPND with AC 211 for domestic returns addresses or AC 215 for foreign addresses.
If | Then |
|---|---|
The remittance is Non-Remittance Processing System (blue or green rocker amounts) | Prepare Form 3244, Payment Posting Voucher, SSPND 610 and have the return renumbered as a non-remittance return. |
The remittance is an Remittance Processing System remittance | 1. Prepare Form 3465, Adjustment Request, to show where to apply the credits. |
The taxpayer does not reply and you cannot tell where to apply the remittance | 1. GTSEC 03. |
Error Code 011 - Remittance Amount/No data in Section 03/CCC "G" not present
(1) Fields Displayed - Error Code 011 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
RMIT> | Remittance |
01CCC | Computer Condition Code |
01RCD | Received Date |
Section 03 is not present | Section 03 is not present |
Invalid Conditions
(1) Error Code 011 will generate when an Remittance Processing System or a remittance amount is present, there is no data in Section 03 and CCC "G" is not present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed using the information below.
If | Then |
|---|---|
The record is to be "G" coded | 1. Section 03 is not necessary. Enter the "G" Code in Field 01CCC. |
Data is present on the return for Section 03 fields | 1. Use CC GTSEC and call up Section 03. 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. | GTSEC Section 03, enter $.01 in the Field 0317 and continue processing. |
The data present is insufficient to decide the correct application of the remittance amount, and data is not found through research | 1. Suspend with AC 21X. Correspond with the taxpayer to request an explanation following normal correspondence procedures. |
No data (or reply) is present and where to apply the remittance amount (money) cannot be determined from the return | 1. Enter CCC "X" in Field 01CCC. |
Suspense Instructions
(1) The Error Resolution tax examiner/Rejects Unit will research to attempt to apply the remittance amount by using the If/Then Chart below. If data is not found, then SSPND the record with AC 211 for domestic addresses or AC 215 for foreign addresses.
If | Then |
|---|---|
The remittance is Non-Remittance Processing System (blue or green rocker amounts) | Prepare Form 3244, Payment Posting Voucher, and renumber the return as a non-remittance return. |
The remittance is an Remittance Processing Systems remittance | 1. Prepare Form 3465, Adjustment Request, to show where to apply the credits. |
The taxpayer does not reply and you cannot tell where to apply the remittance | 1. GTSEC 03. |
Error Code 014 - Missing Address Entries
(1) Fields Displayed - Error Code 014 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
04CON | "In-Care-of" Name Line | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State Code | 2 |
04ZIP | ZIP Code | 12 |
04FAD | Foreign Address | 35 |
Invalid Conditions
(1) Error Code 014 will generate when any of the following conditions are present:
If the street address is present, Field 04CTY and Field 04ST must be present, unless a Major City Code is used.
If a Major City Code is used, Field 04ADD must be present.
A City must be present. If the city is not in the Major City format, Field 04ST must be present. Field 04ADD can be blank.
A Major City Code is used and Field 04ST is present. If the State Code is equal to "AA", "AE" or "AP" and the corresponding ZIP code is present, the City must be APO, DPO, or FPO.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information from If and Then Chart below.
(3) Research any of the following for valid address information:
Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries
INOLE, NAMES/ENMOD
If | And | Then |
|---|---|---|
A Major City Code is present | A street address is not available | 1. Enter the City Name (spelled out, not in Major City format) in Field 04CTY. |
The Major City Code is correct | The state is present | Delete Field 04ST. |
The ZIP code or address cannot be corrected from the information on the return, attachments or from research |
| DLSEC 04. |
Error Code 015 - Foreign Address/State
(1) Fields Displayed - Error Code 015 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State | 2 |
04ZIP | ZIP Code | 12 |
Invalid Conditions
(1) Error Code 015 will generate when any of the following conditions are present:
Field 04ST has an entry other than "." (period/space) when Field 04FAD is present.
Field 04ZIP has an entry when Field 04FAD is present.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed. Exhibit 3.12.263-14, Foreign Country Codes.
(2) Compare displayed fields with the return. If incorrect, use If/Then chart below overlay the screen with the correct information.
If | Then |
|---|---|
A foreign address is present in Field 04FAD | 1. Field 04ST must contain "." (period/space). |
A foreign address is not present in Field 04FAD | Check return for foreign address. |
A foreign address is present on the return | 1. Enter the foreign address in Field 04FAD. Note: If more space is required, continue entering the address in Field 04ADD. |
A foreign address is not present on the return | 1. Verify the address on the return is not a foreign address. |
Caution: Do not use the code for Canada if a province name or abbreviation is shown. See IRM 3.12.263.7.7.5, Foreign Address - Canada Only.
Error Code 016 - ZIP Code/State Mismatch
(1) Fields Displayed - Error Code 016 will display as follows:
Field Designator on Form 709 | Field Name | Field Length |
|---|---|---|
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State Code | 2 |
04ZIP | ZIP Code | 12 |
04FAD | Foreign Address | 35 |
Invalid Conditions
(1) Error Code 016 will generate when the ZIP code is inconsistent with the Major City Code or State Code.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.
(3) Research any of the following for valid ZIP code information:
Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries
INOLE, NAMES/ENMOD
(4) If only the first three digits of the ZIP code can be determined, enter "01" in the fourth (4th) and fifth (5th) positions. Use the table below for correcting any misplaced entries for ZIP Codes,
If | And | Then |
|---|---|---|
Unable to decide a valid ZIP code from the return or attachment |
| Enter the valid ZIP code found through research in Field 04ZIP. |
The address is a major city | A Major City Code can be determined | Enter Major City Code in Field 04CTY. |
The address is in a major city | A Major City Code cannot be determined | 1. Enter the name of the city in Field 04CTY. |
The address is not in a major city |
| 1. Enter the appropriate state abbreviation in Field 04ST. |
(5) APO/DPO/FPO Addresses - An APO, DPO, or FPO is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP code. For example, if the old address appears as "APO New York, NY 091XX", convert to read as "APO AE 091XX" see table below to decide New State Code Abbreviation.
ZIP Code | Address | Abbreviation |
|---|---|---|
340XX | APO/DPO/FPO | AA |
090XX-098XX | APO/DPO/FPO | AE |
962XX-966XX | APO/DPO/FPO | AP |
Error Code 030 - P&I Code of "1" and Received Date is on or before RDD
(1) Fields Displayed - Error Code 030 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
01TXP | Tax Period |
01CCC | Computer Condition Code |
01RCD | Received Date |
01PIC | Penalty and Interest Code |
01RD> | Return Due Date |
Invalid Conditions
(1) The Penalty and Interest Code of "1" is present and the IRS received date is one of the following:
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed by using the If and Then Chart below:
If | Then | |
|---|---|---|
The IRS received date is after the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Delete code "1" from Field 01PIC. | |
More than one date is present on the return | Use the earliest date. | |
The correct IRS received date is equal to or earlier than the due date | Delete code "1" from Field 01PIC. | |
Error Code 034 - Correspondence Received Date
(1) Fields Displayed - Error Code 034 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
01TXP | Tax Period |
01RCD | Received Date |
01CRD | Correspondence Received Date |
01RD> | Return Due Date |
Invalid Conditions
(1) The correspondence received date is earlier than, or the same as, the IRS received date or the return due date.
(2) The correspondence received date is later than the processing date.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) The IRS received date will either be stamped or edited on the return. See IRM 3.12.263.19.2.7, Field 01RCD-Received Date, for the IRS received date instructions.
(3) A correspondence received date will be determined from the date the reply was received in the submission processing campus. Refer to the return for the correspondence received date. It is edited in the Entity section of the return. This can be verified by checking the stamped correspondence received date on the correspondence attached to the return the table below will help you decide the correspondence receive date.
If | Then |
|---|---|
The correspondence received date is present and earlier than the return due date, or later than the processing date | Delete the correspondence received date from Field 01CRD. |
More than one correspondence received date is present | Use the earliest date. |
Error Code 073 - CCC "3" and 01CRD has entry
(1) Fields Displayed - Error Code 073 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
01CCC | Computer Condition Code |
01CRD | Correspondence Received Date |
Invalid Conditions
(1) Error Code 073 will generate when Field 01CCC is "3" and a date has been entered in Field 01CRD.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Review the return and attachments for the IRS correspondence.
If the IRS correspondence is attached, decide if a reply has been received from the taxpayer. If attached, delete CCC "3".
If "no reply", delete entry in Field 01CRD.
Error Code 082 - Name Control disagrees with name line
(1) Fields Displayed - Error Code 082 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
CL | Clear Code |
01NC | Name Control/Check Digit |
>>>> | Name Control Underprint |
04PNL | Primary Name Line |
Invalid Conditions
(1) The Donor Name (Primary Name Line) is not consistent with the name control.
(2) The Donor Name (Primary Name Line) is blank, but the name control is present.
(3) The name control is not consistent with the name control (Underprint).
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) The following information pertains to correction procedures for Error Code 082.
If | Then |
|---|---|
The name control on the return and Field 01NC do not agree or was transcribed incorrectly. | Change Field 01NC. |
The Primary Name Line on the return and Field 04PNL do not agree or was transcribed incorrectly. | Change Field 04PNL. |
The Primary Name Line has been transcribed correctly in Field 04PNL, and the first 4 letters disagree with Field 01NC. | Correct Field 01NC. |
It is not an obvious error. | Research per local procedures. |
A correct name control cannot be found. | SSPND with AC 320. |
Error Code 084 - In Care of Name present/Donor Name blank
(1) Fields Displayed - Error Code 084 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
CL | Clear Code |
04PNL | Primary Name Line |
04CON | "In Care of" Name Line |
Invalid Conditions
(1) Error Code 084 will generate when the In Care of Name Line is present, but the Donor Name (Primary Name Line) is blank.
Correction Procedures
(1) Check for coding or transcription errors and correct as needed.
(2) Check the names on the return against the screen. Make sure there is a primary name line present in the entity area of the return (usually on or around Lines 1, 2, and/or 4 (entity area at the top portion of the return)), and that it is different from the "in care-of" name.
If it appears there is no "care of" name, and the only name present in the entity area of the return is the donors name, correct the return by entering that name in Field 04PNL. If possible, delete the transcribed error(s) from Field 04CON.
If a donor name and a "care of" name are present on the return, enter the "in care of" name in Field 04CON, then enter the donors name in Field 04PNL.
Error Code 086 - Spouse's SSN = Donors SSN
(1) Fields Displayed - Error Code 086 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
CL | Clear Code |
01SSN | Social Security Number |
01SSS | Spouse's Social Security Number |
Invalid Conditions
(1) Error Code 086 will generate when the Spouse's Social Security Number (SSN) is the same as the Donors Social Security Number.
Correction Procedures
(1) Check for coding or transcription errors and correct as needed.
(2) Check the social security numbers on the return against the screen. The donors SSN is located on Page 1, Part 1, Line 3 (entity area of prior year returns), while the Spouse's Social Security Number (SSN) is located on Page 1 Part 1 Line 14 for prior years and Page 2, Part 3 Line 1 on 2024 returns and subsequent. If necessary, check any attachments for the information and compare it against the information on the screen.
Correct either Field 01SSN or Field 01SSS as appropriate.
If both the Donor’s SSN and the Spouse’s SSN are found on the return or the attachment(s), correct Field 01SSN or Field 01SSS as appropriate.
If no SSN is found on Line 14 (or on the attachment(s); or through IDRS research), and only the donors SSN is present, correct the screen by deleting the incorrect entry.
Error Code 088 - Spouse Amounts and/or Total Gifts Amounts are present and Tax Period (TXP) is after 200212
(1) Fields Displayed - Error Code 088 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
CL | Clear Code |
01TXP | Tax Period |
02A | Gifts Attributable to Spouse |
02B | Balance After Spouse Amount |
02C | Gifts Included from Spouse |
02D | Total Gifts Amount |
Invalid Conditions
(1) Error Code 088 will generate when the spouse amounts in Gifts Attributable to Spouse, Balance After Spouse Amount, Gifts Included from Spouse, and/or Total Gifts Amount are present, and the tax period is after 200212.
Correction Procedures
(1) Check for coding or transcription errors and correct as needed.
(2) Compare the tax period on the return against Field 01TXP the screen. If the tax period on the return is for a period ending 200212 (December 2002) or prior, correct Field 01TXP to release the return.
(3) If the tax period on the return confirms that the return is for a period after 200212 (December 2002), delete all of the entries in Fields 02A, 02B, 02C, and 02D.
Error Code 400 - Death Indicator/DOD
(1) Fields Displayed - Error Code 400 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
01TXP | Tax Period |
01CCC | Computer Condition Code |
01RCD | Received Date |
01DTH | Death Indicator |
01DOD | Date of Death |
Invalid Conditions
(1) The Death Indicator is blank, but Field 01CCC (CCC "F") is present.
(2) The Death Indicator is present, but the DOD is blank.
(3) The Death Indicator is blank, but the DOD is present.
(4) The Death Indicator is present, but Field 01CCC does not contain CCC "F".
(5) The DOD is present, but 01CCC does not contain an "F".
(6) The DOD is greater than the IRS received date.
(7) The Date of Death year is not equal to the tax period year.
Correction Procedures
(1) Compare the return against the screen and correct all coding and transcription errors.
(2) Enter CCC "F" in Field 01CCC, only if a "1" is present in Field 01DTH (Death Indicator) and the Date of Death (Field 01DOD) is during the year the gift was made. Enter the "F" in Field 01CCC for Form 709 when the return will be the final return filed for a deceased donor.
If the Death Indicator, Field 01DTH, is blank, and CCC "F" is present, check return and attachments (if necessary) for a DOD or a death certificate to confirm the donor died.
If the DOD cannot be determined from the return, an attachment, or from researching INOLE, delete the "1" in Field 01DTH and the "F" in Field 01CCC.
(3) If the DOD is before or after the tax period of the return:
Delete the entries in Fields 01DTH and 01DOD.
Delete CCC "F" from 01CCC, if present.
Error Code 404 - 02A and 02C are present but 01CSI is blank
(1) Fields Displayed - Error Code 404 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
01SSS | Spouse's Social Security Number |
01TXP | Tax Period |
01CSI | Consent of Spouse Indicator |
01FSI | Foreign Spouse Indicator |
0201 | Total Gifts Current Amount |
02A | Gifts Attributable to Spouse |
02B | Balance After Spouse Amount |
02C | Gifts Included from Spouse |
02D | Total Gifts Amount |
Invalid Conditions
(1) Error Code 404 will generate when:
Entries are present in Fields 02A (Gifts Attributable to Spouse), and 02C (Gifts Included from Spouse), but Field 01CSI (Consent of Spouse Indicator) is zero (0), or
An entry is present in Field 01SSS but Field 01CSI is "0" (zero), or
No entry is present in Field 01SSS but Field 01CSI is "1".
Correction Procedures (prior year returns)
(1) Be sure to check tax period and check for coding and transcription errors and correct as needed. See IRM 3.12.263.19.2.11, Field 01CSI - Consent of Spouse Indicator.
Note: For prior year returns filed on the 2002 revision, input Fields 02A, B, C and D if the taxpayer is splitting gifts. If the taxpayer is not splitting gifts, input the taxpayer's figures in Fields 0201, 0202, and 0203.
(2) Field 01SSS (Spouse's Social Security Number (SSN) must contain an entry if Field 01CSI (Consent of Spouse Indicator Code) contains a Consent Code "one".
Check the return and attachments for the spouses SSN and correct Field 01SSS.
If you are able to secure the name of the spouse, but unable to secure the spouses SSN, perform research for the SSN and enter the information in Field 01SSS.
If you are unable to find the spouses SSN on the return or attachments, or through research command codes, SSPND 320 to Entity Control to secure a temporary SSN.
Split-gift situations DO NOT permit the filing of a joint Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return but require that each spouse file a separate Form 709, and submit them together in the same envelope, indicating their wish to split gifts. It is possible the spouses return was submitted and may have been somehow separated during processing. It may have been already processed or is being processed in another batch of work.
(3) Field 01SSS must contain an entry if there are entries in Fields 02A (Gifts Attributable to Spouse) or 02C (Gifts Included from Spouse). Follow the steps in (1) above if Field 02A and 02C contain entries with a blank Field 01SSS.
(4) If Field 01SSS contains an entry and Field 01CSI is "0" (zero), and:
Consent is not indicated, delete the entry in Field 01SSS.
Consent is indicated, change Field 01CSI entry to "1".
Error Code 408 - Total Number of Donees/Annual Exclusions
(1) Fields Displayed - Error Code 408 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
01TXP | Tax Period |
01CSI | Consent of Spouse Indicator |
01TND | Total Number of Donees |
01FSI | Foreign Spouse Indicator |
0202 | Annual Exclusions |
Invalid Conditions
(1) The Total Number of Donees is blank, but the Annual Exclusions is present.
(2) The Annual Exclusions is blank or zero, but the Total Number of Donees is present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If Pages 2 or 3 are missing, correspond (unless the return can be perfected with information provided). If no reply is received, enter the amount from Field 0301 into Fields 0201, 0203, 0209, and 0211. If information is received from taxpayer, process accordingly.
(3) Field 0202 (Annual Exclusions) is transcribed from (Schedule A), Part 4, Line 2, (or Page 2, Part 3, Line 6 on tax year 2002 and prior year returns). This field is computed by multiplying the number entered in Field 01TND by the Annual Exclusion amount for tax year (i.e., $18,000 for 2024). If the gift is less than the Annual Exclusion amount for that tax year, limit the Annual Exclusion to the amount of that gift. See Annual Exclusion amounts for year below:
Tax Year | Annual Exclusion |
|---|---|
2024 | $18,000 |
2023 | $17,000 |
2022 | $16,000 |
2021 through 2018 | $15,000 |
201712 through 201201 | $14,000 |
2012 through 200901 | $13,000 |
200812 through 200601 | $12,000 |
200512 through 200212 | $11,000 |
Tax Year | Basic Exclusion Amount |
|---|---|
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
Compare the screen against the return and correct all transcription errors.
Verify the entry in Field 01TND and 0202.
If the amount in the annual exclusion (Field 0202) is blank or zero, delete entry in the number of donees (Field 01TND).
If there is an amount in Field 0202 which the taxpayer did not use in his computation of tax, follow his intent and delete the amount in Field 0202.
(4) If the amount in Field 0202 is blank or zero and valid, delete any entry in Field 01TND.
(5) Annual Exclusion for Non-Citizen Spouses. The annual exclusion for non-citizen spouses for tax year:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
2014 | $145,000 |
2013 | $143,000 |
2012 | $139,000 |
2011 | $136,000 |
2010 | $134,000 |
2009 | $133,000 |
2008 | $128,000 |
2007 | $125,000 |
2006 | $120,000 |
2005 | $117,000 |
2004 | $114,000 |
2003 | $112,000 |
2002 | $110,000 |
|
|
If the taxpayer has claimed $185,000 for Tax year 2024, the Annual Exclusion (Field 0202), accept his entry only if the gift is to a non-citizen spouse.
If the gift is indeed to a non-citizen spouse, verify that a "1" is present in Field 01FSI. See Exhibit 3.12.263-8, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.
If the gift is not to a non-citizen spouse, delete the "1", if present, in Field 01FSI and send a TPNC 91. TPNC 91 States, "An error was made in computing your annual exclusion amount. Your Unified Credit/Applicable Credit has been adjusted accordingly".
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
(6) The annual exclusion for a non-citizen spouse as a donee cannot exceed $185,000 for 2024, $175,000 for 2023, ($164,000 for 2022) ($159,000 for 2021), ($157,000 for 2020), ($155,000 for 2019), ($152,000 for 2018),($149,000 for 2017) ($148,000 for 2016). When a non-citizen spouse is a donee and there are additional donees, the annual exclusion will be computed as in the following example:
If 01TND equals four (one of which is the non-citizen spouse donee) and "1" is in Field 01FSI then Field 0202 (Annual Exclusion) cannot exceed $239,000 for 2024, $226,000 (for 2023),(or $212,000 for 2022).
The preceding $239,000 is calculated by allowing $185,000 for 2024, for the non-citizen spouse and $18,000 for 2024 for each donee . Total donees equals four (Field 01TND). See list of annual exclusion amounts by year IRM 3.12.263.23.23.2 . (Field 01TND) is 4 so $185,000 for the FS and $18,000 x 3 for regular donees. Figured as followed:.
If the amount in Annual Exclusion is less, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
1 = $185000 (non-citizen spouse) 2024.
3 × $18,000 = $54,000 (each additional donee) or 3 x $18,000 = $54,000 for 2024
$185,000 (Total allowable annual exclusion Field 0202) for 2024.
Error Code 412 - Balance After Spouse
(1) Fields Displayed - Error Code 412 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0201 | Total Gifts Current Amount |
02A | Gifts Attributable to Spouse |
02B | Balance After Spouse Amount |
>>>> | Balance After Spouse Amount (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
Note: For 2002 and prior, input Fields 02A, B, C and D if the taxpayer is splitting gifts. If the taxpayer is not splitting gifts, input the taxpayer's figures in Fields 0201, 0202, and 0203.
(2) If the taxpayer made an error in computation, send TPNC 10 which States “We found an error in the computation of your taxable gifts for the current period”.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, .”We found an error in the computation of your taxable gifts for the current period.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If previous error caused the underprint and no other error for that error code, then ripple that TPNCs.
Error Code 414 - Total Gifts
(1) Fields Displayed - Error Code 414 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
02B | Balance After Spouse Amount |
>>>> | Balance After Spouse Amount (Computer) |
02C | Gifts Included from Spouse |
02D | Total Gifts Amount |
>>>> | Total Gifts Amount (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
Note: For 2002 or prior, input Fields 02A, B, C and D if the taxpayer is splitting gifts. If the taxpayer is not splitting gifts, input the taxpayer's figures in Fields 0201, 0202, and 0203.
(2) Compare the displayed fields with the return. If the taxpayer filed a return for tax year 2009 on a prior year version of Form 709, enter the amount from Page 2 (Schedule A), Part 3, Line 5, on the return into Field 0201.
(3) If the taxpayer's entries were incorrect, issue TPNC 91. TPNC 91 States “An error was made computing your annual exclusion amount. Your Unified/Applicable Credit has been adjusted accordingly.”.i
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States “We found an error in the computation of your taxable gifts for the current period” .
TPNC 91 - States, “An error was made computing your annual exclusion amount. Your Unified/Applicable Credit has been adjusted accordingly.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other error for that error code, then ripple that TPNC.
Error Code 416 - Annual Exclusions
(1) Fields Displayed - Error Code 416 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
01TND | Total Number of Donees |
01FSI | Foreign Spouse Indicator |
0202 | Annual Exclusions |
>>>> | Annual Exclusions (Computer) |
Invalid Conditions
(1) Error Code 416 will generate when the Annual Exclusions is greater than Annual Exclusions (Computer).
Correction Procedures
(1) Get Section 02. Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from Schedule A Part 4, Line 2 (or Page 2, Part 3, Line 6, for tax year 2002 and prior year returns). This field is computed by multiplying the number entered in Field 01TND by $18,000 for (2024) $17,000 for (2023) and $16,000 for (2022). If a gift is less than $185,000 for (2024) $167,000 for (2023) and $16,000 for (2022), limit the amount of Annual Exclusion for that gift to the amount of the gift. For tax years:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $18,000 |
2023 | $17,000 |
2022 | $16,000 |
2018 through 2021 | $15,000 |
2013 through 2017 | $14,000 |
2009 through 2012 | $13,000 |
2006 through 2008 | $12,000 |
2002 through 2005 | $11,000 |
Compare the displayed fields with the return and correct all transcription errors.
Note: See IRM 3.12.263.23.45, Section 529(c)(2)(B) Returns, is a Taxpayer makes a Section 529(c) election or GST allocation.
See IRM 3.12.263.23.45.3, GST Exemption Allocation, for error resolution procedures.Verify the entry in Fields 01TND and 0202.
Note: If a trust is named as a donee, allow the number of donees to the number of beneficiaries of the trust. If the number of beneficiaries is not available, allow the number of donees to offset the annual exclusion being taken.
If you cannot decide the number of donees and the return is that of a taxpayer for which consent of spouse is required, permit the number of donees necessary to offset the Annual Exclusion being claimed. See IRM 3.12.263.19.2.11, Field 01CSI-Consent of Spouse Indicator.
If the amount in annual exclusion (Field 0202) is blank or zero, delete entry in the number of donees (Field 01TND).
If there is an amount in Field 0202 which the taxpayer did not use in his computation of tax, follow his intent and delete the amount in Field 0202.
If the error in Field 0202 causes an underprint, send TPNC 90.
Caution: Field 01TND must be correct before TPNC 98 can be sent. TPNC 98 States "We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of the future interest do not qualify for the exclusion."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the notice review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
(3) The first $18,000 of gifts of present interest to each donee during the calendar year (2024) is subtracted in figuring the amount of taxable gifts. Verify the annual exclusion claimed against the number of donees box on Page 1, Part 1, Line 14. (See IRM 3.12.263.19.2.18, Field 01TND-Total Number of Donees, to decide the correct number of donees.) An underprint will generate in Field 0202 if the taxpayer's figure is greater than the computer's computation (Field 01TND multiplied by $18,000 for 2024). If Field 0202 is blank and valid, delete any entry in Field 01TND.
(4) Annual Exclusion for Non-Citizen Spouses. The annual exclusion for non-citizen spouses is:
Tax Year | Amount |
|---|---|
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
2014 | $145,000 |
2013 | $143,000 |
2012 | $139,000 |
2011 | $136,000 |
2010 | $134,000 |
2009 | $133,000 |
2008 | $128,000 |
2007 | $125,000 |
2006 | $120,000 |
2005 | $117,000 |
2004 | $114,000 |
2003 | $112.000 |
2002 | $110,000 |
2001 | $106,000 |
If the taxpayer has claimed $185,000 for 2024 for the Annual Exclusion (Field 0202), accept his entry only if the gift is to a non-citizen spouse.
If the gift is indeed to a non-citizen spouse, verify that a "1" is present in Field 01FSI. See Exhibit 3.12.263-8, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.
If the gift is not to a non-citizen spouse, delete the "1", if present, in Field 01FSI and send a TPNC 91. TPNC 91 States "An error was made in computing your annual exclusion. Your Unified Credit/Applicable Credit has been adjusted accordingly".
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If previous error caused the underprint and no other error for that error code, then ripple that TPNC.
(5) All gifts made during the calendar year to a donee are fully excluded under the annual exclusion if all are gifts of present interest and if they total $18,000 or less for 2024.
Note: If a gift is less than $18,000, limit the amount of Annual Exclusion for that gift to the amount of the gift.
(6) For the purpose of the exclusion, there are two kinds of gifts: gifts of a present interest and gifts of a future interest.
Gifts of a present interest qualify for the exclusion. Gifts of a future interest do not.
A gift is a gift of a present interest if the donee can do anything they want with the gift or can do anything they want with the income from the property (if only present interest is an income interest - exclusion would be limited to value of income interest). (Taxpayer is free to spend or to benefit from the gift when it is received.)
A gift is a gift of a future interest if the donee cannot use until sometime in the future.
Exception: If a gift is given to a minor, the gift and income from the gift may be spent by, or for the benefit of the donee prior to attaining the age of 21, and any amounts remaining will pass to the donee once they have reached age 21, the gift is considered to be a gift of present interest.
If the taxpayer shows that a gift of a future interest has been given and does not claim an exclusion≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
If the taxpayer does not show that a gift of a future interest has been given but does not claim an exclusion≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
If the taxpayer shows that a gift of a future interest has been given, and an exclusion has been taken for that gift, disallow the exclusion and notify the taxpayer with a TPNC 98. TPNC 98 States, : "We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of future interest do not qualify for the exclusion."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error, and no error on this error code, then ripple that TPNC.
For tax years the donee exclusion is:
Tax Year | Donee Exclusion |
|---|---|
2024 | $18,000 |
2023 | $17,000 |
2022 | $16,000 |
2018 through 2021 | $15,000 |
2013 through 2017 | $14,000 |
2009 through 2012 | $13,000 |
2006 through 2008 | $12,000 |
2002 through 2005 | $11,000 |
(7) For tax year 2002 and prior year returns. If Field 0202 is twice the allowable amount and there is no entry in Field 02C, it has to be determined if the taxpayer is filing a joint return. See IRM 3.12.263.3.2, Community Property Information for further information on community property. To decide if this is a joint return (which is not permissible):
More than one name in the entity portion of the return.
Consent of spouse.
If Page 1, Part 1, Question 15 is answered "Yes".
(8) If there is an indication that this is a "joint return", send TPNC 93. , "TPNC 93 States “We disallowed the exclusions from your spouse’s gifts attributable to you because joint returns are not permissible when reporting gifts . This makes it necessary for you and your spouse to each file a separate return. We have adjusted your return accordingly.".”
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
(9) If there is only one name in the caption, there is a consent of spouse present, or if Question 15 is answered "No", the return will be considered a separate filing and the exclusion must be reduced to $18,000 per donee. Reduce exclusion amount for year of tax return as follows:
Tax Year | Exclusion Amount |
|---|---|
2024 | $18,000 |
2023 | $17,000 |
2022 | $16,000 |
2018 through 2021 | $15,000 |
2013 through 2017 | $14,000 |
2009 through 2012 | $13,000 |
2006 through 2008 | $12,000 |
2002 through 2005 | $11,000 |
(10) The consenting spouse must also file a Gift Tax Return, if the spouses elect gift splitting. See IRM 3.11.106.22.10, Consent Information/Consent of Spouse, and see IRM 3.12.263.19.2.11, Field 01CSI - Consent of Spouse Indicator, for further information on split gifts. Both the donor spouse and the consenting spouse must each file separate gift tax returns unless all requirements of either Exception One or Two below are met.
(11) Exception One - During the calendar year:
Only one spouse made any gifts
The total value of these gifts to each third party donee does not exceed
TAX YEAR | THIRD PARTY not TO EXCEED |
|---|---|
2024 | $36,000 |
2023 | $34,000 |
2022 | $32,000 |
2018 thru 2021 | $30,000 |
2013 thru 2017 | $28,000 |
2009 thru 2012 | $26,000 |
2006 thru 2008 | $24,000 |
2002 thru 2005 | $22,000 |
All of these gifts constitute present interests.
(12) Exception Two - During the calendar year:
Only one spouse (the donor spouse) made gifts of more than $18,000, but not more than
TAX YEAR | NOT TO EXCEED |
|---|---|
2024 | $36,000 |
2023 | $34,000 |
2022 | $32,000 |
2018 thru 2021 | $30,000 |
2013 thru 2017 | $28,000 |
2009 thru 2012 | $26,000 |
2006 thru 2008 | $24,000 |
2002 thru 2005 | $22,000 |
The only gifts made by the other spouse (the consenting spouse) were gifts of not more than $18,000(2024) to third-party donees other than those to whom the donor spouse made gifts.
All of the gifts by both spouses constitute present interests.
(13) If either Exception One or Two is met, only the donor spouse needs to file a return and the consenting spouse signifies consent on the return. See IRM 3.12.263.19.2.11, Field 01CSI - Consent of Spouse Indicator, for consent criteria. In these cases, only one-half of the total gift must be reported on Schedule A, Part 4, Line 1 (Field 0201) and the number of donees and/or annual exclusion must NOT be doubled.
(14) If the taxpayer qualifies for one of the exceptions, edit Fields 0201 through 0203 to reflect the amounts appropriate to each field (previously Lines 2 through 7 on tax year 2002 and prior year returns).
(15) If neither Exception One or Two is met, correspond for separate gift tax returns. See IRM 3.12.263.19.2.11, Field 01CSI - Consent of Spouse Indicator.
If reply received enter the correspondence received date in Field 01CRD. Enter reply information in the appropriate fields and continue processing.
If no reply or incomplete reply, enter a 3 in Field 01CCC and send TPNC 93 . TPNC 93 States, “We disallowed the exclusions from your spouse’s gifts attributable to you because joint returns are not permissible when reporting gifts. This makes it necessary for you and your spouse to each file a separate return. We have adjusted your return accordingly.”
(16) If the amount in Annual Exclusion (Field 0202) is blank or zero, blank the Total Number of Donees (Field 01TND).
(17) If the error in Field 0202 causes an underprint, send TPNC 91. TPNC 91 States “An error was made in computing your annual exclusion amount. Your Unified/Applicable Credit has been adjusted accordingly.”
If the change is due to a reduction in the gift amount because the incomplete gift was improperly included, state "While an incomplete gift must be reported on Form 709, it must be included in the amount of this year’s gifts. We have adjusted your return accordingly."
If the change is due to lack of taxpayer response to the incomplete gift, Send TPNC 91. TPNC 91 States "An error was made in computing your annual exclusion. Your Unified Credit/Applicable Credit has been adjusted accordingly."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 91. States, “An error was made in computing your annual exclusion amount. Your Unified/Applicable Credit has been adjusted accordingly.”
TPNC 93, “States We disallowed the exclusions from your spouse’s gifts attributable to you because joint returns are not permissible when reporting gifts. This makes it necessary for you and your spouse to each file a separate return. We have adjusted your return accordingly.”
TPNC 98 States We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of future interest do not qualify for the exclusion.
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If previous error caused the underprint and no other error for that error code, then ripple that TPNCs.
Error Code 420 - Total Included Gifts Amount
(1) Fields Displayed - Error Code 420 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0201 | Total Gifts Current Amount |
02A | Gifts Attributable to Spouse |
02B | Balance After Spouse Amount |
>>>> | Balance After Spouse Amount (Computer) |
02C | Gifts Included from Spouse |
02D | Total Gifts Amount |
>>>> | Total Gifts Amount (Computer) |
0202 | Annual Exclusions |
>>>> | Annual Exclusions (Computer) |
0203 | Total Included Gifts Amount |
>>>> | Total Included Gifts Amount (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0203 is computed by subtracting Field 0202 (Line 2) from Field 0201 (Line 1). (On tax year 2002 and prior year returns, this field was transcribed from Schedule A Part 3, Line 7, and was computed by subtracting Line 6 from Line 5.)
(3) Compare the screen against the return. Check for errors in Fields 0201, 0202, and 0203 and issue the appropriate TPNC if the errors were taxpayer errors.
If the taxpayer filed a tax year 2009 return on a 2002 or prior year version of Form 709, enter the amounts from Lines 5 and 6 into Fields 0201 and 0202, respectively.
If the taxpayer filed his tax year 2002 or prior year return on a prior year version of Form 709, GTSEC 02 and enter the amounts from Lines two, three, four and five into Fields 02A, 02B, 02C, and 02D, respectively. (These lines will total Field 0203.)
(4) If the error in Field 0203 causes an underprint, send TPNC 88. TPNC 88 States, “An error was made in the computation on Schedule A, Part 4, Total included Amount of Gifts. Your Unified Credit/Applicable Credit has been adjusted accordingly.”
If the change is due to a reduction in the gift amount because the incomplete gift was improperly included, send TPNC 92. TPNC 92 States, "While an incomplete gift must be reported on Schedule A, it must not be included in the amount of this year's gifts. We have adjusted your return accordingly."
If the change is due to lack of taxpayer response to the incomplete gift, send TPNC 88. TPNC 88 States, "An error was made in the computation on Schedule A, Part 4, Total included Amount of Gifts. Your Unified Credit/Applicable Credit has been adjusted accordingly"
Caution: Field 01TND must be correct before TPNC 88 can be sent. TPNC 88 States, "An error was made in the computation on Schedule A, Part 4, Total included amounts of Gifts. Your Unified/Applicable Credit has been adjusted accordingly."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, ..”We found an error in the computation of your taxable gifts for the current period.”
TPNC 88 States, “An error was made in the computation on Schedule A Part 4, Total included amounts of Gifts. Your Unified Credit/Applicable Credit has been adjusted accordingly.”
TPNC 92 States, “While an incomplete gift is to be reported on Schedule A, it must not be included in the amount of this year's gifts. We have adjusted your return accordingly.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
If previous error caused the underprint and no other error for that error code, then ripple that TPNC.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Error Code 424 - Marital Deductions
(1) Fields Displayed - Error Code 424 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01FSI | Foreign Spouse Indicator |
0204 | Gifts of Interest Amount |
0205 | Exclusion Attributable to Gifts |
0206 | Marital Deduction |
>>>> | Marital Deduction (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0206 (Marital Deductions) is transcribed from Schedule A, Part 4, Line 6 (or Page 2 (Schedule A), Part 3, Line 10, on tax year 2002 and prior year returns). It is computed by subtracting Field 0205 from Field 0204 (or, by subtracting Line 9 from Line 8 on tax year 2002 and prior year returns).
(3) Compare the displayed fields with the return and overlay the screen with the correct entries.
If an entry is present in Field 0206, and no entry is present in Field 0204, enter Field 0206 amount in Field 0204.
If there is no entry present in Field 0204, an amount is present in Field 0205, and zero, blank or negative is present in Field 0206, delete Field 0205.
If Fields 0206 or 0208 underprint, check for transcription errors in Fields 0204, 0205, and 0206.
If an error in Field 0206 causes an underprint, send TPNC 42. TPNC 42 States, “We found an error in the computation of Marital Deduction on Schedule A.”.
(4) If an entry is present for a gift given to a spouse who was not a U.S. citizen at the time of the gift, delete the entry from Field 0204. See IRM 3.12.263.19.2.19, Field 01FSI-Foreign Spouse Indictor, to decide if the spouse was not a U.S. citizen. If the error in Field 0202 causes an underprint, send TPNC 42 and/or 90.
Caution: Field 01TND must be correct before TPNC 91 can be sent. TPNC 91 states: "An error was made in computing your annual exclusion amount. Your Unified Credit/Applicable Credit has been adjusted accordingly."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 42- States “We found an error in the computation of the marital deduction on Schedule A.”
TPNC 91 States, “An error was made in computing your annual exclusion amount. Your Unified Credit/Applicable Credit has been adjusted accordingly.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If previous error caused the underprint and no other error for this error code, then ripple that TPNC.
Error Code 428 - Total Deductions
(1) Fields Displayed - Error Code 428 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0206 | Marital Deductions |
>>>> | Marital Deductions (Computer) |
0207 | Charitable Deductions |
0208 | Total Deductions |
>>>> | Total Deductions (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from Schedule APart 4, Line 8 (or Page 2 (Schedule A), Part 3, Line 12 on tax year 2002 and prior year returns). Line 8 is computed by adding Line 6 (Field 0206) and Line 7 (Field 0207) (or, Lines 10 and 11 on tax year 2002 and prior year returns).
(3) If the error in Field 0208 causes an underprint, send TPNC 79. TPNC 79 States .“ We found an error in the computation on Schedule A, Part 4, Total deductions amount”.
(4) If previous error caused the underprint and no other error for this error code, then ripple that TPNC.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 79 - States “ We found a error in the computation on Schedule A, Part 4, Total deductions amount”.
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If previous error caused the underprint and no other error for this error code, then ripple that TPNC.
Error Code 432 - Balance After Deductions
(1) Fields Displayed - Error Code 432 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0203 | Total Included Gifts Amount |
>>>> | Total Included Gifts Amount (Computer) |
0208 | Total Deductions |
>>>> | Total Deductions (Computer) |
0209 | Balance After Deductions |
>>>> | Balance After Deductions (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0209 is transcribed from Schedule APart 4, Line 9, (or Page 2 (Schedule A), Part 3, Line 13 on tax year 2002 and prior year returns. It is computed by subtracting Field 0208 (Line 8) from Field 0203 (Line 3) (or, on tax year 2002 and prior year returns, Line 12 from Line 7).
(3) If the error in Field 0209 causes an underprint, send TPNC 80. TPNC 80 States, “We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts”.
Note: If the taxpayer has figured Field 0209 to a negative amount, which will generate as a positive amount, delete the entry.
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 79 - States, “We found a error in the computation on Schedule A, Part 4, Total Deduction Amount.”
TPNC 80 - .States, “We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If previous error caused the underprint and no other error for this error code, then ripple that TPNC.
Error Code 436 - Taxable Gifts Amount
(1) Fields Displayed - Error Code 436 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0209 | Balance After Deductions |
>>>> | Balance After Deductions (Computer) |
0210 | Generation-Skipping Transfer Taxes Payable |
0211 | Taxable Gifts (Balance After GST Amount) |
>>>> | Taxable Gifts (Balance After GST Amount) (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors in Fields 0209, 0210 and 0211 and correct as needed.
(2) Field 0211 (Taxable Gifts (Balance After GST) Amount) is transcribed from Schedule A, Part 4, Line 11 (or Page 2, Part 3, Line 15 on tax year 2002 and prior year returns). It is computed by adding Field 0209 (Line 9) and Field 0210 (Line 10) (or on tax year 2002 and prior year returns, by adding Lines 13 and 14). This amount is carried forward to Page 1, Part 2, Line 1 (Field 0301).
(3) Compare the screen against the return. If 0211 has a underprint send TPNC 10. TPNC 10 States “We found an error in the computation of your taxable gifts for the current period.” .
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, .”We found an error in the computation of your taxable gifts for the current period.”
TPNC 80 - States, “We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts.”
TPNC 81 - States, “We found an error in the computation on Schedule A, Part 4, Taxable Gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other error for this error code, then ripple that TPNC.
Error Code 440 - Current Taxable Gifts
(1) Fields Displayed - Error Code 440 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0209 | Balance After Deductions |
>>>> | Balance After Deductions (Computer) |
0210 | Generation-Skipping Transfer Taxes Payable |
0211 | Taxable Gifts (Balance After GST Amount) |
>>>> | Taxable Gifts (Balance After GST Amount) (Computer) |
0301 | Current Taxable Gifts |
>>>> | Current Taxable Gifts (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If Pages 2 or 3 are missing, correspond (unless the return can be perfected with information provided). If no reply is received, to perfect Page 3, add the amount in Field 0301 to (TND x annual exclusion amount for tax period of return) and enter that amount in Field 0201 and then add (TND x annual exclusion amount for tax period of return) in Field 0202 and the difference in Fields 0203, 0209, and 0211. If information is received from taxpayer, process accordingly.
(3) Field 0301 (Current Taxable Gifts) is carried over from Field 0211 (Taxable Gifts (Balance After GST) Amount), which is transcribed from Page 3, Part 4, Line 11 Both fields are computed by adding Field 0209 and Field 0210.
(4) If an error in Field 0301 causes an underprint, send TPNC 81. TPNC 81 States “We found an error in the computation on Schedule A, Part 4, Taxable Gifts”.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 80 - States, “We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts.”
TPNC 81 - States, “We found an error in the computation on Schedule A, Part 4, Taxable Gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other error for this error code, then ripple that TPNC..
Error Code 444 - Total Taxable Gifts
(1) Fields Displayed - Error Code 444 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0301 | Current Taxable Gifts |
>>>> | Current Taxable Gifts (Computer) |
0302 | Prior Taxable Gifts |
0303 | Total Taxable Gifts |
>>>> | Total Taxable Gifts (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0303 (Total Taxable Gifts) is transcribed from Page 1, Part 2, Line 3, and is computed by adding Field 0301 and Field 0302.
(3) Be certain the correct tax period is entered in Field 01TXP before making any correction or sending any a TPNC.
(4) If the error in Field 0303 causes an underprint, send TPNC 11. TPNC 11 States, “We found an error in the computation on Page 1, Part 2, of your Total Taxable gifts.”.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 11 - States, “We found an error in the computation on Page 1, Part 2, of your Total Taxable gifts.”
TPNC 69 - States, “We found an error in the total gift tax computation on Page 1, Part 2,, Balance.”
TPNC 81 - States, “We found an error in the computation on Schedule A, Taxable Gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other error for this error code, then ripple that TPNC..
Error Code 446 - TXPD 197612 and prior/CCC "Y" present
(1) Fields Displayed - Error Code 446 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
CL | Clear Code |
01TXP | Tax Period |
01CCC | Computer Condition Code |
0303 | Total Taxable Gifts |
>>>> | Total Taxable Gifts (Computer) |
0304 | Total Tax Taxpayer (Current) |
>>>> | Total Tax Taxpayer (Current) (Computer) |
0305 | Total Tax Taxpayer (Prior) |
>>>> | Total Tax Taxpayer (Prior) (Computer) |
0306 | Balance of Gift Tax |
>>>> | Balance of Gift Tax (Computer) |
03BTV | Balance of Tax Verified |
Invalid Conditions
(1) Error Code 446 will generate when the tax period is 197612 or prior, or CCC "Y" is present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Error Code 446 is intended for reviewing, verifying, and correcting of returns involving special tax rate computations or returns from prior tax periods which may require manual computations by Error Resolution examiners. Field 01TXP is used to identify Form 709, received for specific prior years and the CCC "Y" identifies Form 709 taxpayers receiving a particular type of tax treatment or are eligible for special Gift Tax rates.
Caution: Make sure the correct tax period was entered in Field 01TXP before issuing any TPNCs or making any corrections.
(3) Compare the return against Fields 0303, 0304, 0305, and 0306.
Field 0303 (Total Taxable Gifts) is transcribed from Page 1, Part 2, Line 3, and is computed by adding Field 0301 and Field 0302. Compare the lines on the return against the screen display.
Caution: Do not change the amount in Field 0303 (Line 3) if incorrect. If Line 3 is incorrect, leave working trail on document by placing an "X" to the left of the taxpayer's entry on the return.
Field 0304 is transcribed from Page 1, Part 2, Line 4, and is the amount of tax on Line 3.
To decide if Field 0304 was computed using the wrong tax rate, math verify the tax on the Line 3 amount for the appropriate tax period. See Exhibit 3.12.263-6, Table A Unified Tax Rate Schedule (Form 706 and Form 709).
Caution: Do not change the amount in Field 0304 (Line 4) if incorrect. If Line 4 is incorrect, leave working trail on document by placing an X to the left of the taxpayer's entry on the return.
Field 0305 is transcribed from Page 1, Part 2, Line 5 and is the amount of tax on Line 2 (Field 0302). See Exhibit 3.12.263-6, Table A Unified Tax Rate Schedule (Form 706 and Form 709), to decide whether the tax rate used was the correct one.
To decide if Field 0305 was computed using the wrong tax rate, math verify the tax on the Line 2 amount for the appropriate tax period. See Exhibit 3.12.263-6, Table A Unified Tax Rate Schedule (Form 706 and Form 709).
Caution: Do not change the amount in Field 0305 (Line 5) if incorrect. If Line 5 is incorrect, leave working trail on document by placing an "X" to the left of the taxpayer's entry on the return.
(4) Field 0306 is transcribed from Page 1, Part 2, Line 6. It is computed by subtracting Field 0305 from Field 0304.
(5) If Field 0306 is correct, enter the manually computed amount in Field 03BTV.
(6) If there is an error in Field 0306, enter the manually computed amount in Field 03BTV.
Note: If the taxpayer's figure was incorrect, when the math error code comes up, send TPNC to inform the taxpayer that "You incorrectly figured the tax on Line XX (enter corrected Line number) incorrectly. We figured the amount and have adjusted your return accordingly."
(7) IMPORTANT: If there is no tax on the return (i.e., either containing no line entries or tax data present on Lines 1 through 6), enter the Clear Code (CL).
Note: The Clear Code was set up as a safeguard for working with non-taxable returns.
(8) Once the manual computations are completed and the entry was made into Field 03BTV, delete the "Y" from Field 01CCC.
Error Code 448 - Total Tax Taxpayer (current)
(1) Fields Displayed - Error Code 448 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0303 | Total Taxable Gifts |
>>>> | Total Taxable Gifts (Computer) |
0304 | Total Tax Taxpayer (Current) |
>>>> | Total Tax Taxpayer (Current) (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0304 is transcribed from Page 1, Part 2, Line 4. Field 0304 (Line 4) is computed by using the tax rates in effect for the appropriate tax period to calculate the tax on Line 3 (Field 0303).
To decide if this figure was computed using the wrong tax, math verify the tax on the amount for Line 3 for the appropriate period. See Exhibit 3.12.263-6, Table A Unified Tax Rate Schedule (Form 706 and Form 709) Issue the appropriate TPNC if the taxpayer's entry on Line 4 was incorrect.
Caution: Do not issue any TPNCs without first checking the tax period.
If either or both Field 0303 or Field 0304 underprinted, math verify the amounts against the return and the tax amount on Line 3. Line 3 is the total of Lines 1 and 2 (Fields 0301 and 0302). Issue the appropriate TPNC if either of the taxpayer's entries was incorrect.
(3) If the error in Field 0304 caused an underprint, and the total gift amount in Field 0303 is over $500,000.00, and the taxpayer used 2009 rates for a 2010 return, send TPNC 87. TPNC 87 States: "Due to recent legislation, the tax rates for 2010 taxable gifts over $500,000.00 has been changed along with the maximum unified credit amount. We have adjusted your return accordingly." Otherwise, send TPNC 12. TPNC 12 - States “We found an error in the computation of tax on Page 1, Part 2, total amount of gifts.”.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
(4) If a previous error caused the underprint and no other error for this error code, then ripple that TPNC
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 11 - States, “We found an error in the computation on Page 1, Part 2, of your total taxable gifts .”
TPNC 12 - States, “We found an error in the computation of tax on Page 1, Part 2, Total Taxable Gifts.”
TPNC 87 - States, “Due to recent legislation, the tax rates for 2010 taxable gifts over $500,000.00 have been changed along with the maximum unified credit amount. We have adjusted your return accordingly.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Online Notice Review (NR). This addition will eliminate the need for the Notice Rview tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Error Code 452 - Total Tax Taxpayer (prior)
(1) Fields Displayed - Error Code 452 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0302 | Prior Taxable Gifts |
0305 | Total Tax Taxpayer (Prior) |
>>>> | Total Tax Taxpayer (Prior) (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0305 is transcribed from Page 1, Part 2, Line 5. It is computed by multiplying the tax rates in effect for the amount on Line 2 (Field 0302).
If Field 0305 underprinted, verify the tax on Line 2 (Field 0302). See Exhibit 3.12.263-6, Table A-Unified Tax Rate Schedule (Form 706 and Form 709)
If the taxpayer's entry on Line 5 was incorrect Issue TPNC 13. TPNC 13 States “We found a error in the computation of tax on Page 1, Part 2, Amount from Schedule B, Total amount of taxable gifts from prior periods.”.
Caution: Do not issue any TPNCs without first checking the tax period.
If a previous error caused the underprint and no other errors on this error code, then ripple that TPNC.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 13 - States, “We found an error in the computation of tax on Page 1, Part 2, Amount on Schedule B, Total amount of taxable gifts from prior periods.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Error Code 456 - Balance of Gift Tax
(1) Fields Displayed - Error Code 456 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0304 | Total Tax Taxpayer (Current) |
>>>> | Total Tax Taxpayer (Current) (Computer) |
0305 | Total Tax Taxpayer (Prior) |
>>>> | Total Tax Taxpayer (Prior) (Computer) |
0306 | Balance of Gift Tax |
>>>> | Balance of Gift Tax (Computer) |
03BTV | Balance of Tax Verified |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0306 is transcribed from Page 1, Part 2, Line 6. It is computed by subtracting Field 0305 (Line 5) from Field 0304 (Line 4).
(3) If an error in Field 0306 caused an underprint, send TPNC 69. TPNC 69 States, We found a error in the computation on Page 1, Part 2, Balance”..
Caution: Be certain the correct tax period is entered in Field 01TXP before making any corrections.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States “We found an error in the computation of your taxable gifts for the current period.”
TPNC 12 - States, “We found an error in the computation of tax on Page 1, Part 2, Total Taxable gifts.”
TPNC 13 - States, “We found an error in the computation of tax on Page 1, Part 2, amount from Schedule B, Total amount of taxable gifts from a prior period.”
TPNC 69 - States, “We found an error in the computation on Page 1, Part 2, Balance.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Error Code 460 - Balance After Unified Credit
(1) Fields Displayed - Error Code 460 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0307 | Maximum Applicable Credit (2012 and subsequent revisions) |
0307> | Unified Credit Amount (2011 and prior revisions) |
0308 | Unified/Applicable Credit Prior |
0309 | Balance After Unified/Applicable Credit |
>>>> | Balance After Unified/Applicable Credit (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0309 is transcribed from Page 1, Part 2, Line 9. It is computed by subtracting Field 0308 from one of the following amounts (which the program will generate (for the appropriate tax period) in Field 0307>):
Year Gifts are Given | Applicable Credit Amount |
|---|---|
2024 | $5,389,800 |
2023 | $5,113,800 |
2022 | $4,769,800 |
2021 | $4,625,800 |
2022 | $4,577,800 |
2019 | $4,505,800 |
2018 | $4,417,800 |
2017 | $2,141,800 |
2016 | $2,125,800 |
2015 | $2,117,800 |
2014 | $2,081,800 |
2013 | $2,045,800 |
2012 | $1,772,800 |
2011 | $1,730,800 |
2010 | $330,800 |
2002 through 2009 | $345,800 |
(3) If the taxpayer used $345,800.00 for a 2010 return, send TPNC 87. TPNC 87 States: "Due to recent legislation, the tax rates for 2010 taxable gifts over $500,000.00 has changed along with the maximum unified credit amount. We have adjusted your return accordingly." Otherwise, issue the appropriate TPNC for errors in Fields 0308 and 0309.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC
(4) If 0308 is blank, enter the amount from Schedule B, Line 1, Column C. (Refer to the Table below for Unified/Applicable Credit amounts for prior years.)
Year in Which the Decedent Died or in Which A Gift Was Made | Unified/Applicable Credit Amount |
|---|---|
2024 | $5,389,800 |
2023 | $5,113,800 |
2022 | 4,769,800 |
2021 | 4,625,800 |
2020 | 4,577,800 |
2019 | 4,505,800 |
2018 | 4,417,800 |
2017 | 2,141,800 |
2016 | 2,125,800 |
2015 | 2,117,800 |
2014 | 2,081,800 |
2013 | 2,045,800 |
2012 | 1,772,800 |
2011 | 1,730,800 |
2010 | 330,800 |
2002 thru 2009 | 345,800 |
Note: The Unified Credit charts will display higher Unified Credit amounts for Estate tax returns (Form 706). Beginning with Tax Year 2004, the Unified Credit amount for Estates diverged from that of the Gift tax returns. See IRM 3.12.263.19.4.11, Field 0309 - Balance After Unified Credit Amount. There was no Unified Credit prior to 197712.
If a taxpayer error in Field 0309 caused an underprint, send the appropriate TPNC.
If the taxpayer has figured this field to be a negative amount, which will generate as a positive amount, delete the entry.
If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax shown in Field 0316, issue TPNC 95. TPNC 95 states: "The Unified/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount.”
TPNC 43 - States, “We found an error in the computation of the Applicable Credit amount.”(2012 and subsequent revisions.)
TPNC 87 - States, “Due to recent legislation, the tax rates for 2010 taxable gifts over $500,000.00 has changed along with the maximum unified credit amount. We have adjusted your return accordingly.”
TPNC 95 -States, “The Unified Credit/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Error Code 464 - Balance After Unified Adjustment
(1) Fields Displayed - Error Code 464 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0309 | Balance After Unified Credit |
>>>> | Balance After Unified Credit (Computer) |
0310 | Adjustment to Unified Credit (20 percent) |
0311 | Balance After Unified Adjustment |
>>>> | Balance After Unified Adjustment (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0311 is transcribed from Page 1, Part 2, Line 11. It is computed by subtracting Field 0310 from Field 0309. If 0310 is blank, enter the amount from 0309 in 0311.
If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry.
If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax shown in Field 0316, send TPNC 95. TPNC 95 states: "The Unified Credit/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax."
(3) If a taxpayer error in Field 0311 caused an underprint, send TPNC 94. TPNC 94 States: "We found an error in the computation of the Balance After Unified Adjustment amount on Form 709, Line 11. We have adjusted your return accordingly."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Applicable TPNC
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount.”
TPNC 95 States, “The Unified Credit/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax.”
TPNC 43 on 2012 and subsequent revisions, - States, “We found an error in the computation of the Applicable Credit amount. “
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors on this error code, then ripple that TPNC.
Error Code 468 - Unified Credit
(1) Fields Displayed - Error Code 468 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0306 | Balance of Gift Tax |
>>>> | Balance of Gift Tax (Computer) |
0310 | Adjustment to Unified Credit (20 percent) |
0311 | Balance After Unified Adjustment |
>>>> | Balance After Unified Adjustment (Computer) |
0312 | Unified Credit |
>>>> | Unified Credit (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0312 is transcribed from Page 1, Part 2, Line 12. It is computed by using the smaller of Field 0306 or Field 0311.
(3) If Field 0312 underprint’s with a different amount than the taxpayer's entry:
Check Schedule B, Column D for amounts present for gifts made after September 8, 1976, that the taxpayer used to compute an adjustment to Unified Credit.
If the amount from Schedule B, Column D has not been entered in Field 0310, bring the amount forward and enter on Line 10 and in Field 0310.
If entered correctly and the error causes an underprint, send the appropriate TPNC.
If the taxpayer computed Field 0312 correctly, but is using a larger amount of Unified Credit than needed to offset the tax, bring up the underprint in Field 0312. Do not send Letter 3024, Math Error Explained (IMF/BMF).
If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry. If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax (on Line 16 of the form), send TPNC 95. TPNC 95 States: "The Unified/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax.", IRM 3.12.263.23.35.2, Correction Procedures for Field Error 0309 and IRM 3.12.263.23.36.2 Correction Procedures for Field Error 0311 before sending TPNC.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If a previous error caused the underprint and no other errors on this error code, then ripple that TPNC.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount.”
TPNC 43 - States “We found an error in the computation of the Applicable Credit amount, (2012 and subsequent revisions.)
TPNC 69 - States, “We found an error in the total gift tax computation on Page 1, Part 2, Balance.”
TPNC 95 - “States, “The Unified/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors on this error code, then ripple that TPNC.
Error Code 472 - Total Credits
(1) Fields Displayed - Error Code 472 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0312 | Unified Credit |
>>>> | Unified Credit (Computer) |
0313 | Foreign Gift Tax |
0314 | Total Credits |
>>>> | Total Credits (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0314 is transcribed from Page 1, Part 2, Line 14. It is computed by adding Field 0312 and Field 0313.
(3) If entered correctly and the error does not affect Total Taxes (Field 0317), bring up the underprint.
(4) If a taxpayer error in Field 0314 caused an underprint, send TPNC 75. TPNC 75 - States, “We found an error in the computation of Page 1, Part 2, Total credits.”.
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount.”.
TPNC 43 - States, “We found an error in the computation of the Applicable Credit amount.”
TPNC 69 - States ,”We found an error in the computation on Page 1, Part 2, Balance.”
TPNC 75 - States, “We found an error in the computation of Page 1, Part 2, Total credits.”
TPNC 90:
More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other error on 0314, then ripple that TPNC.
Error Code 476 - Total Gift Tax
(1) Fields Displayed - Error Code 476 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0306 | Balance of Gift Tax |
>>>> | Balance of Gift Tax (Computer) |
0314 | Total Credits |
>>>> | Total Credits (Computer) |
0315 | Total Gift Tax |
>>>> | Total Gift Tax (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0315 is transcribed from Page 1, Part 2, Line 15. It is computed by subtracting Field 0314 from Field 0306.
(3) If Document has a zero on line 0315. Tax Examiner must bring the amount from page 1, part 2 line 7 down to page 1, part 2 line 9. If page 1, part 2 line 8 is blank, bring the amount from page 1, part 2 line 9 down to page 1, part 2 line 11, if page 1, part 2 line 10 is blank enter the amount from page 1, part 2 line 9 in page 1, part 2 line 11.
(4) If a taxpayer error in Field 0315 caused an underprint, send TPNC 89. TPNC 89 States, "We found an error in the computation of your total gift tax. We have adjusted your return accordingly."
If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry.
If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax on Line 16 of the return, send TPNC .-95. States : "The Unified/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax."
(5) If the underprint in Field 0315 is due to the deletion of Field 0313 (Line 13 amount on return), TPNC 90-284 which States, "Since a foreign tax credit is not allowed on taxes paid to the country for which you claimed a credit, we have disallowed the credit."
(6) If previous error caused the underprint and no other error on 0315, then ripple that TPNC.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 41 - States, “We found an error in the computation of the Unified Credit amount.”
TPNC 89 - States, “We found an error in the computation of your total gift tax. We have adjusted your return accordingly.”
TPNC 95 States “The Unified Credit/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax.”
90-284 States, “Since a foreign tax credit is not allowed on taxes paid to the country for which you claimed a credit, we have disallowed the credit.”
TPNC 90:
TPNC 43 on 2012 and subsequent revisions which States,“We found an error in the computation of the Applicable Credit amount.”:
More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Error Code 480 - Total Taxes
(1) Fields Displayed - Error Code 480 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
01CCC | Computer Condition Code |
0315 | Total Gift Tax |
>>>> | Total Gift Tax (Computer) |
0316 | Generation-Skipping Transfer Tax |
0317 | Total Taxes |
>>>> | Total Taxes (Computer) |
03MCT | Manually Corrected Tax (ERS Input Only) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from Page 1, Part 2, Line 17. It is computed by adding Field 0315 and Field 0316.
(3) If either of these lines underprinted, manually verify Line 17 (Field 0317) and enter the correct amount in Field 03MCT.
(4) If the taxpayer's entry(s) on line 0317 caused an underprint, send TPNC 83. TPNC 83 States “We found an error in the computation of your total tax amount.”.
(5) If a taxpayer has entered an amount for tax and there are no entries in Fields 0308 through 0312, correspond if necessary for information, suspend with AC 211.
Caution: Be certain the correct tax period is entered in Field 01TXP before sending any TPNC.
.
(6) If the taxpayer's figure in Field 0317 is incorrect, manually compute Lines 15, 16, and 17 enter the result in Field 03MCT (Manually Corrected Tax). This field is entered by Error Correction on the dotted portion of Page 1, Part 2, Line 17. (It is present when the tax period is 197612 and prior, or whenever a manual computation is required by the examiner.)
(7) If tax is zero, enter $.01 in Field 03MCT.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Suspense Procedures
(1) Follow chart below for suspense corrections:
IF | Then |
|---|---|
Receive a complete reply: |
|
No reply received: |
|
Reply received from Compliance Services, Estate and Gift Tax Campus Operation | Process as directed by Estate and Gift Tax Campus Operation, continue processing. |
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 48 - States “We found an error in the generation-skipping transfer tax computation.”
TPNC 83 - States, “We found an error in the computation of your total tax amount.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors on this error code, then ripple that TPNC.
Error Code 484 - Balance Due/Overpayment
(1) Fields Displayed - Error Code 484 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
0317 | Total Taxes |
>>>> | Total Taxes (Computer) |
0318 | Prior Payments Amount |
03B/R | Balance Due/Overpayment |
>>>> | Balance Due/Overpayment (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from Page 1, Part 2, Line 19 or 20. It is computed by subtracting Field 0318 from Field 0317. The computer will underprint with a positive amount for a balance due and a negative amount for an overpayment.
(3) Any penalty or interest included by the taxpayer in Field 03B/R must be subtracted from the amount on Line 19 or 20 and the difference entered in Field 03B/R. Also, "X" Line 19 or 20 and edit the difference to the left of the "X".
(4) If any of the taxpayer's entry(s) has caused a math error, send TPNC 54. TPNC 54 States, “We found an error in the computation of the balance due or overpayment amount.”.
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 48 - States, “We found an error in the generation-skipping transfer tax computation.”
TPNC 54 - States, “We found an error in the computation of the balance due or overpayment amount.”
TPNC 76 - States, “The amount claimed as prepaid tax with the extension of time to file was incorrect.”
TPNC 83 - States, “We found an error in the computation of your total tax amount.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
If a previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Error Code 488 - Refund Code of "one" not present
(1) Fields Displayed - Error Code 488 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
01CCC | Computer Condition Code |
01RFC | Refund Code |
03B/R | Balance Due/Overpayment |
>>>> | Balance Due/Overpayment (Computer) |
Invalid Condition
(1) Error Code 488 will generate when the refund is $1,000,000 or more, and the Refund Code of "1" is not present in Field 01RFC.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) SSPND using AC 341.
(3) Once a manual refund has been issued according to local procedures, input a "1" in Field 01RFC and an "O" in Field 01CCC.
Note: See IRM 3.12.263.3.2.2, Refund Returns(45 Day Jeopardy and large dollar refunds, to ensure the refund is issued timely.
(4) If the condition is being resolved and a manual refund will NOT be issued, input a "1" in Field 01RFC only.
Error Code 492 - Total Tax computer is zero but remittance present
(1) Fields Displayed - Error Code 492 will display as follows:
Field Designator on Form 709 | Field Name |
|---|---|
NC | Notice Code |
RMIT> | Remittance Amount |
0317 | Total Tax |
>>>> | Total Tax (Computer) |
Invalid Condition
(1) Error Code 492 will generate when the Total Tax (Computer) is zero, but a remittance amount is present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This error will occur on a non-G coded return when the Total Tax Computer is zero or blank, or if the Total Tax (Field 0317) is zero or blank. Total Tax (Computer) is the computer-generated underprint for Page 1, Part 2, Line 17. It is computed by adding Field 0315 (Total Gift Tax) and Field 0316 (Generation-Skipping Transfer Tax) .
(3) The RMIT> field cannot be changed. It is blank for non-remittance returns and remittance returns processed through the Remittance Processing System. It is a non-correctable field.
(4) If the RMIT was transcribed correctly, CCC "G" is not present, and the Total Tax (Field 0317) was zero ("0") or blank, enter $.01 (one cent) in the Total Tax (Field 0317) to clear Error Code 492.
Applicable TPNC
(1) Only TPNC 90 is valid for this error code. TPNC 90 is a blank notice which contains up to 10 blank lines which are available on the notice for whatever statement is needed. Use TPNC 90 when more than three math errors were made on the return or there is no math error code that meets the error condition on the return.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If previous error caused the underprint and no other errors for this error code, then ripple that TPNC.
Error Code 999 - End of Year
(1) Fields Displayed - Error Code 999 will display: with the following information.
Field Designator on Form 709 | Field Name |
|---|---|
01TXP | Tax Period |
Invalid Condition
(1) Error Code 999 will generate for all returns that are in error status at the end of the processing year.
Correction Procedures
(1) Since the system will re-validate the record and will set validity and error codes based on the current program, the only correction procedure for Error Code 999 is for the tax examiner to transmit.
Reminder: Information ONLY - Fields such as the following would be impacted by a tax period check: (1) Gifts Attributable to Spouse (Field 02A); (2) Balance After Spouse Amount (Field 02B); (3) Gifts Included From Spouse (Field 02C); and (4) Total Gifts Amounts (Field 02D), all of which will be invalid if the tax periods for these fields are greater than 200212.
Section 529(c)(2)(B) Returns (Qualified State Tuition Programs) - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
(1) Taxpayers are allowed a contribution to a qualified state tuition plan on behalf of a designated beneficiary. If the taxpayer’s total contributions to a qualified state tuition program on behalf of any individual beneficiary exceed $18,000 (for 2024) $17,000 (for 2023), then for purposes of the annual exclusion the taxpayer may elect under Section 529(c)(2)(B) to treat up to $90,000 beginning 2024 $85,000 beginning in 2023($80,000 in 2022)of their total contributions as having been made ratably over a five-year period beginning in 2020 for tax year 2024 and 2019 for tax year 2023. (These are considered gifts of a present interest.)
The taxpayer must to report the entire amount of the contribution in excess of $90,000 for 2024, $85,000 for tax year 2023 and $80,000 for tax year 2022.
The taxpayer makes the election by checking the box B at the top of Schedule A. The election must be made for the calendar year in which the contribution is made.
The taxpayer must also attach an explanation that includes the following: (1) the total amount contributed per individual beneficiary; (2) the amount for which the election is being made and, (3) the name of the individual for whom the contribution was made.
If the taxpayer makes this election, they are to report only 1/5 (20 percent) of their total contribution(s) (up to $90,000) on the tax year 2024 Form 709. They must then report an additional 20 percent of the total in each of the succeeding four years, unless they are NOT required to file Form 709 other than to report that year’s portion of the election.
Note: IMPORTANT :The taxpayer must report everything over the contribution amount allowed for that year in that first year. Anything over $90,000 for 2024 and anything over $85,000 for 2023 must be reported that first year.
(2) If the taxpayer(s) prepared the return(s) correctly, Schedule A must list the gift amount per year (must be 20 percent of the total five year contribution) and must not exceed the annual exclusion amount per donee ($18,000 per year). The total value of the gift (over the five year period) for each donee must appear on the attachments.
Note: If the taxpayers elected gift-splitting for the contributions, apply the gift-splitting rules before applying these rules. In this case, both spouses must make the Section 529(c)(2)(B) election on their respective returns.
Correction Procedures
(1) If the taxpayer checked box B (Schedule A) electing to file under Section 529 (c)(2)(B)) and the amounts of the gifts on Schedule A exceed $18,000 per donee (per year), perform the following steps:
Step 1: Search the return or attachments to decide whether the taxpayer reported the entire amount of the contribution in excess of $90,000 for that tax year (i.e., in this case, tax year 2024).
Step 2: If the taxpayer provided the five-year total of the gift(s) on an attached statement, compare the amount of the gift(s) against the information provided under Part 1 (Schedule A) to ensure the taxpayer properly listed 20 percent of the gift (per donee per year), not to exceed the $18,000 annual exclusion amount for each donee.
Step 3: If the taxpayer completed Schedule A with 20 percent of the five-year total of the gift per donee, continue processing the return.
(2) If no attachment was provided, but box B was checked, and the taxpayer attempted to provide the entire amount of the gift under Part 1 (Schedule A), perform the following steps:
Step 1: decide the number of donees (i.e., individual beneficiaries) for the gift in question.
Step 2: Divide the total value of the gift by the number of donees.
Step 3: Enter 20 percent of the total of the individual gift in column E (to the right of the individual donee's names (column B)), if present.
Step 4: Continue processing the return.
(3) Example: The taxpayer's total 2024 contributions to a qualified state tuition program on behalf of six individual beneficiary gifts equaled $540,000 for a five year period. Using the information provided in this example, perform the following steps:
Compare the amounts under Part 1 (Schedule A), if present, against the information on the attachment(s).
If the taxpayer listed 20 percent of the gift per donee, continue processing return.
If the taxpayer did not list 20 percent of the individual gift per donee:
Divide the $540,000 by six (donees), at $90,000 per gift. To be eligible for a non-taxable return, the annual exclusion amount per gift (i.e., the individual beneficiary's exclusion) cannot exceed $18,000 per donee per year.
Enter 20 percent of the gift, or $18,000 per donee, in column E (Schedule A) to the right of the donee's name (column B), if present. If there was an amount greater than $18,000 in that column, place an "X" to the left of that amount, and enter the 20 percent figure to the left of the "X". Do this for each of the donees to whom this gift is being given.
Continue processing the return.
Reminder: If, in any of the four years following the election, the taxpayer is not required to file a Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return other than to report that year's portion of the election, they do not need to file or otherwise report that year's portion. In cases involving this example of Section 529(c)(2)(B) returns, the taxpayer filing in tax year 2024 need only file a return for the five-year gift only during the first year (2020). They do not have to file a Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, the following years unless there are other gifts given for those years.
Estate Tax Inclusion Period (ETIP) Returns
(1) If property that is transferred by gift in a General Systems Theory direct-skip would have been includible in the donor’s estate if the donor had died immediately after the transfer (other than by reason of the donor having died within 3 years of making the gift), the direct skip will be treated as having been made at the end of the "Estate Tax Inclusion Period" (ETIP), rather than at the time it was actually made. (Section 2642(f) contains details for taxpayers electing to file in this manner.)
The taxpayer is instructed to report the gift portion of such a transfer on Page 2, Schedule A, Part 1, at the time of the actual transfer.
The taxpayer is instructed to report the General System Theory portion on Page 2, Schedule A, Part 2, but only at the close of the ETIP.
(2) The taxpayer is to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, only to report those transfers where the ETIP closed due to something other than the donor’s death. If the ETIP closed as the result of the donor’s death, the taxpayer is instructed to report the transfer on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.
(3) If the taxpayer is filing this Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, solely to report transfer subject to an ETIP, they are instructed to complete the form as they normally would with the following exceptions:
Write "ETIP" at the top of Page 1.
Complete only Lines 1 through 4, 6, 8, 9, 14 and 15 Tax Year 2024,( lines 1 through 4, 6, 8 and 9 Tax year 2023), of Part I, General Information.
Complete Page 2, Schedule A, Part 2, as explained in the instructions for that schedule.
Complete Column B of Schedule C, Part 1, as explained in the instructions for that schedule.
If the taxpayer is computing the Generation-Skipping Tax (Schedule D schedule C for prior years), they are instructed to complete only Lines 14 and 15 of Schedule A, Part 3. (Taxpayer is also instructed to list here direct skips that are subject only to the GST tax as the result of the termination of any "estate tax inclusion period".)
(4) If absolutely necessary, correspond for any missing information needed to process the return. Otherwise, continue to process the return with the information provided.
GST Exemption Allocation
(1) Every donor is allowed a lifetime General Systems Theory exemption or tax. The donor can apply this exemption to transfers made during the donors life on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. The taxpayer is required to attach a statement of explanation or to notate on the return "Allocation of Generation Skipping Exemption".
(2) On the Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, the taxpayer first reports all their gifts during the year. In a separate part of the return (Schedule D, Part 2), the taxpayer reports the amount of General Systems Theory exemption that they want to allocate to their taxable gifts during the period. The allocation of General Systems Theory exemption only affects the General Systems Theory tax and not the gift tax. The amount allocated does not affect the amount of taxable gifts. The allocation will affect the amount of General Systems Theory tax due with respect to a gift that is subject to General Systems Theory tax.
(3) When the taxpayer notates the General Systems Theory allocation, includes the amount in the gift total, and reduces the total taxable gift by taking an exclusion equal to the allocation amount, follow the instructions below:
If | Then |
|---|---|
Allocation is the only gift being reported | Delete Section 02. |
Current gifts are being reported in addition to the allocation | Subtract the allocation from the total gift amount and limit the exclusion amount to the applicable number of donees listed on the return for the current gift only. |
Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, General Information
(1) This subsection provides background information, describes sections of the (Error Resolution System) screen displays, the individual fields, their designations, and procedures for correcting Form 709-NA, See Exhibit 3.12.263-12, Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
Due Dates - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States
(1) For gifts made after December 31, 2023, Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States is due April 15 following the calendar year when gifts were made. If a donor makes a gift the year they die, then the estate must file Form 706-NA, the following rules apply:
If the taxpayer date of death is before July 15, the gift tax return is due when the estate tax return is due (Form 706-NA, nine months after the Date of Death plus extensions).
If the taxpayer date of death is after July 14, the gift tax return ( Form 709-NA) is due April 15 of the following year.
(2) If no estate tax return is required to be filed, the due date for the 2024Form 709-NA, (without extensions) is April 15, 2025. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Exception: If due date of Form 709-NA falls on a Saturday or Sunday, the due date would be the following Monday.
Section 01 - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States
(1) Section 01 field designators, field name, field lengths and location are listed below.
Field Designator on Form 709-NA | Field Name | Field Length | Location |
|---|---|---|---|
01CAF | CAF Indicator | 1 | Upper right corner, Page 1 |
01TXP | Tax Period | 6 | Top center of return, Page 1 |
01CCC | Computer Condition Code | 10 | Upper left margin, Page 1 |
TPNC | Taxpayer Notice Codes | 6 | Left margin name area, Page 1 |
01NC | Name Control/Name Control Underprint | 4 | Page 1, Part 1, Box 2 Generated |
01SSN | Donors Social Security Number | 9 | Page 1, Part 1, Box 3 |
01CFC | Citizenship(Foreign Country Code) | 2 | Page 1, Part 1, Box 5. Note: This must be a Country Code |
01DTH | Death Indicator | 1 | Page 1, Part 1, Line 18 (right of the check here box) |
01DOD | Date of Death | 8 | Page 1, Part 1, Line 18 |
01TND | Total Number of Donees | 3 | Page 1, Part 1, Line 20 |
01PFC | Prior Filing Code | 1 | Page 1, Part 1, Line 22a |
01CRD | Correspondence Received Date | 8 | Page 1, Part 2, between Lines 5 and 6 (left margin) |
01PIC | Penalty and Interest Code | 1 | Page 1, Part 2, between Lines 1 and 2 (tax computation center of Page 1) |
01RCD | Received Date | 8 | Center position of the return |
RMIT> | Remittance | 11 | Page 1, Part 2, Line 14 (Green Rocker - Money Amount) |
01PTIN | Preparer (PTIN) | 9 | Bottom right corner, Page 1 |
01PEN | Preparer EIN | 9 | Bottom right corner, Page 1 |
01PTN | Preparer Phone Number | 10 | Bottom right corner, Page 1 |
01FSI | Foreign Spouse Indicator | 1 | Upper left - hand margin, Schedule A part 1 |
01CZC | Citizenship Code | 1 | Form 709 only |
01SSS | Spouses Social Security Number |
| Form 709 only. |
01CSI | Consenting Spouse Indicator | 1 | Form 709 only |
01DSI | DSUE Indicator | 1 | Form 709 only |
01DAC | Digital Assets | 1 | Form 709 only |
01RFC | Refund Code | 1 | ERS Only input field |
RMIT> - Remittance
(1) This field is blank for non-remittance returns and remittance returns processed through the Remittance Processing System. It is a non-correctable field.
(2) The remittance amount is found on the Balance Due Line of a full-paid return and is shown by a green rocker. A partial paid return has the remittance amount entered in green beside the taxpayer's entry on the Balance Due Line. This field will error, if present, on a non-G coded return when Total Tax Computer is zero or blank, or if Total Taxes (Field 0317) is zero or blank.
Field 01NC - Name Control
(1) This field is transcribed from the name line in the entity portion of the return.
(2) This field must be the first four characters of the last name.
Invalid Conditions
(1) Field 01NC is invalid if:
It is blank.
The first position is not alpha.
The second, third, and fourth positions are not alpha, hyphen, or blank.
There are any intervening blanks between characters.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
Compare the entries in Fields 01NC and 04PNL with the return and overlay the screen with the correct information.
If the name control was transcribed incorrectly, correct Field 01NC.
If it is not a transcription error, research per local procedures. Research CC’s NAMES/NAMEI for the name on the return and INOLE/ENMOD for the SSN on the return.
(2) The following information pertains to correction procedures:
If | Then |
|---|---|
The name control has been transcribed incorrectly | Enter the correct name control. |
The name control is missing and cannot be found | Research, using local procedures. |
The name control is found | Enter the correct name control in Field 01NC and on the return. |
Still unable to decide the name control | Suspend the record with AC (AC) 320. |
Suspense Correction
(1) Follow Suspense Corrections in table below:
If | Then |
|---|---|
Entity Finds a name control | Transcribe in Field 01NC and on the return |
If Entity finds a different SSN for the taxpayer |
|
Field 01SSN - Donors Social Security Number (SSN)
(1) The SSN is a number assigned by the Social Security Administration (SSA) to identify potential Social Security contributors/recipients. The field is found on Page 1, Part 1, Box 3 of the return.
Invalid Conditions
(1) Field 01SSN is invalid if:
It is blank.
It is not all numerics.
It is less than nine - digits.
It is all zeroes or nines.
Correction Procedures
(1) Check for coding, transcription errors, and misplaced entries, correct as needed.
(2) The following information pertains to correction procedures.
If | Then |
|---|---|
SSN is invalid | Search for a correct number on the return or attachments. |
Taxpayer shows Amish or Mennonite filer | SSPND with AC 320 for referral to Entity Control. |
A valid SSN is not found on return or attachment | 1. Research, using IDRS (CC NAMES/NAMEI) to obtain a valid SSN. |
No SSN record is found | SSPND with AC 320 to Entity Control, for SSN research. |
Field 01SSS - Spouse’s Social Security Number (SSN)
(1) Only Valid on Form 709.
Field 01TXP - Tax Period
(1) This field is transcribed from the top center of the return. All characters must be numeric in a YYYYMM (Year/Month) format.
Invalid Conditions
(1) Field 01TXP is invalid if:
The tax period is not in numeric format.
The month is other than 12.
The tax period cannot be after the current processing date or earlier than 202412.
The tax period equals the processing date and CCC "F" is not present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If invalid or not present, check the return and attachments for the tax period and correct Field 01TXP.
(3) Tax period will appear invalid and tax computation is suppressed if the current processing date is later than two years and nine months after the due date or the IRS received date, whichever is later, and CCC "W" is not present.
If the return has been cleared by Statute Control, enter CCC "W" in Field 01CCC.
If the return was not cleared through Statute Control, suspend the return by using CC SSPND with AC 310 and route to Statute Control. When the return has been cleared by Statute Control Function and has a Cleared by Statute stamp dated within the past 90 days, enter 01CCC "W".
Early-Filed Returns Without Remittance
(1) SSPND with AC 480 for domestic addresses or AC 215 for foreign addresses. The Error Resolution tax examiner will send a non-suspense Z letter telling the taxpayer the return was received and will be held until January of the year due. Attach routing slip, and notate Early-Filed on the routing slip.
Note: If Page 1, Part 1, Line 13 shows the donor is deceased or the taxpayer identifies Form 709-NA as a Supplemental Return for Allocation of GST Exemption Only, notate on Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip, "Do not send Early-Filed Hold letter to taxpayer."
Early-Filed Returns With Remittance
(1) If Code and Edit has not already done so, enter CCC "Y" in Field 01CCC. The ERS tax examiner will send a non-suspense Z letter telling the taxpayer the return was received and will be held until January of the year due.
Note: If Page 1, Part 1, Line 18 shows the donor is deceased or the taxpayer identifies Form 709-NA as a Supplemental Return for Allocation of GST Exemption Only, notate on Form 10886, Reject Routing Slip, Form 4227 Intra-SC Reject or Routing Slip "Do not send Early-Filed Hold letter to taxpayer."
(2) SSPND the return with AC 480 from Error Resolution. Attach routing slip and notate Early-Filed. Suspense will take actions to void the DLN of the return. Form 3244, Payment Posting Voucher, will be prepared to post the remittance to the account.
Field 01CCC - Computer Condition Codes (CCC’s)
(1) CCC’s are transcribed from the upper left - hand corner of the return. The valid CCC’s are D, F, G, L, O, R, W, X, Y, 3 and 7.
(2) CCC’s tell the computer what to do when certain conditions are met. For example, CCC "R" stops the computer from calculating a delinquency penalty when the taxpayer presents reasonable cause for filing the return late.
(3) Since these codes tell the computer what to do, they also post to the Master File so that people looking at the file can tell what actions were taken on the return.
Invalid Conditions
(1) Field 01CCC is invalid if any letter or number other than the following is entered: D, F, G, L, O, R, W, X, Y, 3 and/or 7.
(2) CCC "G" is present with any other CCC except "W".
(3) CCC’s "D", "R", and "7" are all present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) When the codes entered on the return are illegible or invalid, check the return to decide the correct code(s) using information below and enter on the screen.
If | Then |
|---|---|
Any other CCC’s are present with "G" and "W" and/or "3" | Delete the other codes if the "G" is needed. |
CCC "G" is not needed | Delete it and leave the other codes. Review all sections and input data where necessary. |
CCC’s "D" and "R" are present with CCC "7" | Decide which is correct and delete the incorrect CCC. |
CCC D - Reasonable Cause for Delinquency
(1) CCC "D"is no longer edited by Code & Edit or ERS when a reason is given for a delay in Reasonable Cause for Delinquency.
Note: Exception: Secured internally prepared returns: For secured returns ( e.g., returns notated with "Process as Original" with a attached Form 13133) or Prepared returns (e.g., returns notated 6020(b) or "SFR" (Substitute for Return), enter the applicable CCC as indicated on the return and/or attached form.
(2) Do not enter CCC "D" if precomputed penalty is shown on the return.
CCC F - Final Return
(1) Enter CCC "F" when the return will be the final return filed for a deceased donor.
This will be a field error if Field 01DTH is blank and CCC "F" is present.
Enter CCC "F" in Field 01CCC, only if a "1" is present in Field 01DTH (Death Indicator) and the Date of Death (Field 01DOD) is during the year the gift was made.
If the donor died after the tax period (i.e., a gift was given in February 2024 and the donor died in January 2025), do not enter CCC "F" or a "1" for Field 01DTH (Death Indicator) or the Date of Death (Field 01DOD).
CCC G - Amended Return
(1) Enter CCC "G" on returns marked Amended, Superseding, Duplicate, Corrected, Supplemental, or box 22b, checked etc.
Note: Taxpayers may send a copy of the front page of their return with a payment. These copies may get numbered and processed. If correspondence is needed for missing information and the return is marked "COPY", research BMFOLI/BMFOLT and/or BRTVU for duplicate returns.
CCC’s "W" and "3" are valid with a "G" code.
If the return is an amended return and Field 01CCC contains a valid CCC "G", delete all fields in Section 1 after Field 01RCD except correspondence received date (Field 01CRD). Use CC DLSEC to delete Sections 02, 03, and 04, if data is present or will be input.
If the return is not an amended return, delete "G" code from Field 01CCC. GTSEC section 01, 02, 03 and enter correct data from the return.
CCC L - Treaty Based Position
(1) Enter CCC "L" if IRC 6114, Elections, is noted on the return or Form 8833, Treaty-Based Return, is attached to the return (see IRM 3.12.263.4.7.6), CCC"L" Code.
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 (IGR), is attached to the return. These show that a pre-settlement manual refund was made. (The freeze is released by posting TC 840.) See IRM 3.12.263.3.2.2, Refund Returns 45- day jeopardy and Large Dollar Refunds to ensure the refund is issued timely.
Note: Also enter a "1" in Field 01RFC (Refund Code) when either a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), is attached to the return.
CCC R - Reasonable Cause for Delinquency
(1) CCC "R" is no longer edited by Code & Edit or ERS when a reason is given for Reasonable Cause for Delinquency.
Note: Exception: Secured internally prepared returns: For secured returns (e.g., returns notated with "Process as Original" with a attached Form 13133) or Prepared returns (e.g., returns notated "6020(b)" or "SFR") (Substitute for Return), enter the applicable CCC as indicated on the return and/or attached form.
CCC W - Cleared by Statute
(1) When the return has been cleared by Statute Control Function and has a Cleared by Statute stamp dated within the past 90 days, enter 01CCC "W".
CCC X - Credit Freeze
(1) Enter CCC "X" when an excess remittance must be applied to a different tax class or module. Complete Form 3465, Adjustment Request, and forward to Adjustments. The CCC "X" will freeze the tax module from refunding or offsetting by generating a Transaction Code 570.
CCC Y - Designates a Yield Condition
(1) Enter CCC "Y" whenever any of the following conditions occur:
Per Rev. Rul.71-232, gift tax paid by the donee which reduces the value of the property being transferred.
To denote "Combat zone" returns.
An early-filed gift tax return is received with remittance.
(2) Early-Filed Returns - If a gift was given in ., the return was filed in 2024, and the return is due April 15, 2025, the return cannot be processed until after January 01, 2025. Post the return for the year that the gift was given. For example, if the gift was given in January 2024, post the return as 202412.
(3) Gift Tax Paid (Form 709 NA) - If it is expressly shown or implied that payment of tax by donee or from property itself is a condition of transfer (Rev. Rul. 71-232), then the Gift tax paid by the donee is deducted from the value of transferred property by the donor.
CCC 3 - No Reply Received/Suppress Credit Interest
(1) Enter CCC "3" when no reply is received for required correspondence sent to the taxpayer. The CCC "3", when posted to the Master File with a TC 150, suppresses credit interest.
CCC 7 - Reasonable Cause Denied
(1) Enter CCC "7" when Compliance Services, Estate and Gift Tax Campus Operation has determined that the taxpayer has furnished unacceptable reasons for failure to file or pay timely. If both CCC’s "D" and "R" are present, do not enter CCC "7". CCC "7" is invalid with both CCC "D" and CCC "R". However, CCC "7" may be present with either CCC "D" or CCC "R". decide the correct CCC, and correct Field 01CCC.
Note: Cincinnati Field Support Operation - Campus Estate and Gift, will review the returns in Code and Edit and make these determinations. Error Correction/Resolution/Suspense will not make this determination for any Form 706, 709-Na and Form 709 series returns.
Field 01RCD - Received Date
(1) Field 01RCD is transcribed from the stamped or edited date in the center of Page 1 of Form 709-NA The IRS received date is entered in YYYYMMDD format and must be present on all Form 709-NAs.
Invalid Conditions
(1) The IRS received date will appear invalid if:
The month (fifth and sixth digits) is other than 01 through 12.
The day (seventh and eighth digits) is other than 01 through 31 for the months 01, 03, 05, 07, 08, 10 or 12; 01 through 30 for the months 04, 06, 09, or 11; 01 through 28 for month 02; or 01 through 29 for month 02 during leap year.
An alpha, special character, or blank is present in the field.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If more than one IRS received date is present, use the earliest date. Circle out all others.
(3) If the IRS received date is missing or illegible, decide using the following priority:
Postmark Date/Private Delivery Service (i.e., Federal Express).
Service Center Automated Processing System, digital date.
Revenue officer's Signature Date.
Signature Date.
Exception: Do not use the Signature Date on Prior Year Returns.
Julian Date minus 10 days.
(4) When processing an early-filed return, change the IRS received date to the first date after the tax period.
(5) If the taxpayer has been contacted for clarification or more information, enter correspondence received date (Field 01CRD).
(6) If 01PIC has a "1" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 01PIC.
Field 01PIC - Penalty and Interest (P/I) Code
(1) Page 1, Part 2, between Lines 1 and 2 (tax computation center of Page 1)
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Code 1 if prepaid penalty is present and the IRS received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Valid entries are 1 or blank.
If only precomputed interest is shown, enter CCC "R" (Field 01CCC) as well as PIC Code "1". (See IRM 3.11.106.6, Penalty and Interest Code, and IRM 3.11.106.9.8, CCC "R" Reasonable Cause for Delinquency)
CCC "R", is present, it will override the PIC Code "1" with regard to delinquency penalty only.
(3) If 01PIC has a "1" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, delete 01PIC.
(4) If a penalty other than delinquency, late payment or failure to pay is shown on a return, (e.g., negligence) and the notation 3465 Prepared, does not appear on the return:
Prepare 3465, Adjustment Request, to request assessment of the penalty.
Show on the Form 3465, Adjustment Request, 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.
Note the return "3465 Prepared" and route Form 3465, Accounting for a Adjustment Request.
Field 01CAF - CAF Indicator
(1) Editing of CAF codes is no longer required.
(2) Form 2848, Power of Attorney and Declaration of Representative (POA), and Form 8821, Tax Information Authorization (TIA), are forwarded to the Central Authorization File Unit (CAF) by the Code and Edit function.
Invalid Conditions
(1) Field 01CAF is invalid if it contains any entry.
Correction Procedures
(1) If a code is present on the screen, clear Field 01CAF.
(2) Leave a limited Power of Attorney attached to the return. A limited Power of Attorney restricts the authorization to the preparation of the return to which it is attached.
(3) Original documents, photocopies, or documents submitted by facsimile transmission (FAX) are acceptable for processing.
(4) The Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization, must contain the following information:
The name, SSN and address of the taxpayer
The name and address of the designated representative (Power or Attorney) or appointee Tax Information Authorization (TIA)
The type of return (individual, corporate, etc.) and the tax form number
The tax year(s) or period(s)
The taxpayer's signature and date of signature
For Form 2848, Power of Attorney and Declaration of Representative, only, a signed and dated declaration of good standing from the representative
Note: You may not send refunds to appointees named on a Tax Information Authorization. Route the authorization to the submission processing campus CAF function for further processing.
(5) f the POA/TIA is received, not attached to any return or document, route it to the Submission Processing Campus CAF function. If the authorization is attached to the correspondence, review the correspondence to decide if other requests were made. If they were, photocopy the correspondence and send the copy along with the authorization to the CAF function for processing. If not, send correspondence and authorization to the CAF function for processing.
(6) Do not detach and send POAs/TIAs filed for specific issues unless the document authorizes recognition for a return besides the specific issue. In that case, a copy of the POA/TIA must be sent to the CAF function to input the return portion by the CAF system. Examples of specific issues include but are not limited to the following:
Form 843, Claim for Refund and Request for Abatement.
Form SS-4, Application for Employer Identification Number.
(7) General Powers of Attorney or Durable Powers of Attorney do not contain sufficient information to process on CAF and must be retained in the case file or left attached to the related return. However, if a general or durable power of attorney is submitted with a completed Form 2848, Power of Attorney and Declaration of Representative, (a transmittal power of attorney), send both forms to the CAF function for processing.
Field 01PFC - Prior Filing Code
(1) This is a computer generated field that is not correctable.
01CFC - Citizenship Foreign Country Code
(1) This is a 2 - character Field and must have a valid Foreign Country Code.
Note: Can be different than 04LRE which also is a Foreign Country Code.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed, See Exhibit 3.12.263-14 for valid Foreign Country Codes.
Field 01CSI - Consent of Spouse Indicator (a.k.a., Gift Consent Indicator)
(1) Only valid on Form 709.
Field 01CRD - Correspondence Received Date
(1) Field 01CRD must be blank or have a numeric entry in YYYYMMDD format.
(2) On Form 709-NA the correspondence received date is shown to the left of Part 2, of Page 1 (Tax Computation Section).
Invalid Conditions
(1) This field is invalid if:
It is not numeric.
The date is earlier than or equal to the return due date.
The date is equal to or earlier than the IRS received date (Field 01RCD).
The date is later than the processing date.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) When it has been determined that a return is unprocessables and the taxpayer must be contacted, the date the reply is received is the correspondence received date. See IRM 3.12.263.2.8, Unprocessables Conditions-Gift Tax Returns, for more information.
(3) Both the original IRS received date and the correspondence received date must be entered in Fields 01RCD and 01CRD.
(4) Do not enter correspondence received date in the following situations:
The correspondence reply was received before the due date of the return.
The correspondence was not necessary due to an IRS processing error.
(5) If the taxpayer does not reply to required correspondence or gives a insufficient reply then enter CCC "3" in Field 01CCC.
Field 01DTH - Death Indicator
(1) Field 01DTH is transcribed from Page 1, Part 1, Line 18 of the return. The indicator is used to show the return is from a deceased donor.
Invalid Conditions
(1) This field is invalid if Field 01DTH is 1 and Field 01DOD (Date of Death) is blank, or if Field 01DOD is present and Field 01DTH is blank.
(2) If Date of Death is after the tax period of the return.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If the box on Line 18 is checked, enter 1 only if the donor died during the year of the gift.
(3) If Date of Death is after the tax period of the return:
Delete the entries in Fields 01DTH and 01DOD.
Delete CCC "F", if present.
Field 01DOD - Date of Death
(1) Field 01DOD is transcribed from the dotted portion of Line 18 in YYYYMMDD format.
Invalid Conditions
(1) This field is invalid if Field 01DTH is 1 and Field 01DOD is blank. Field 01DOD is invalid if Field 01CCC does not contain a CCC "F". See IRM 3.12.263.19.2.6.5, CCC "F" Final Return, if the DOD is after the tax period.
(2) Cannot be later than the tax period on the return or the IRS received date.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If Field 01DOD is blank and Field 01DTH contains a 1, search attachments for DOD.
Research INOLE for DOD.
If not found, delete entries in Fields 01DTH, 01DOD, and CCC "F", if present.
Field 01TND - Total Number of Donees
(1) Field 01TND is transcribed from Page 1, Part 1, Line 20 of Form 709-NA.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) See IRM 3.12.263.19.3.4, Field 0202 Annual Exclusions, for information and instructions for Field 0202, Annual Exclusions, to decide the number of donees.
(3) If other than 001-999 do the following;
Field 01TND must be blank when no Annual Exclusion (Field 0202) is claimed on Schedule A, Part 4, Line 2 of Form 709-NA. If a donee/donees is indicated when no Annual Exclusion is claimed, Field 01TND will appear invalid. If the Annual Exclusion is truly blank or zero, delete the entry in Field 01TND.
Field 01TND must have a number from 1 to 999 that is equal to or is greater than the Annual Exclusion claimed. The computer limits the Annual Exclusion (for gifts) to the number of donees multiplied by $18,000 for 2024,
Tax Year | Foreign Spouse Exclusion |
|---|---|
2024 | $185,000 |
(4) Who is a donee? A donee is:
An individual to whom a gift is directly given is a donee. A donee is recognized as one donee regardless of how many gifts are received in that year.
A charitable organization - Each charitable organization to which a gift is directly or indirectly given is a donee. As with individuals, the organization is recognized as one donee regardless of how many gifts are given in that year.
The beneficiary(ies) of a trust - A trust can be set up for one or a more beneficiaries. These can be individuals or charitable organizations. Note that it is the number of beneficiaries who have interest in the trust that determines the number of donees, not the number of trusts. Do not correspond for list of donees (beneficiaries) of a trust. Allow the number of donees (who have present interest in the trust) claimed to offset the annual exclusion being taken.
Example: Mr. XXXX gives $100,000 to a trust. The beneficiaries of the trust are eight grandchildren. If each grandchild has a present interest in the trust, the number of donees that can be claimed is 8.
Example: Mrs. XXXX gives $18,000 each to four separate trusts. All four trusts have only one beneficiary, the son. The son has a present interest in each trust. The number of donees that can be claimed is one.
(5) If Field 01TND is blank and there is an Annual Exclusion amount claimed on Schedule A, Part 4, Line 2, enter the number of donees claimed in the box on Page 1, Part 1, Line 20.
(6) If the box on Page 1, Part 1, Line 20 is blank, and there is an Annual Exclusion amount claimed on Schedule A, Part 4, Line 2, enter the correct number of donees you determined from Parts 1, 2, and 3 (Schedule A) and/or attachments. The gift given to a particular person (donee) must have been given in the tax period of the return and the person (donee) receiving the gift is to be counted once, even if the donee received more than one gift in the same tax period.
(7) If there is an underprint in Field 0202 (Annual Exclusion), correct transcription errors in Field 01TND and Field 0202.
Verify the number of donees in Field 01TND by checking Schedule A, Parts 1, 2, and 3 and/or attachments.
Verify the amount claimed as an Annual Exclusion on Schedule A, Part 4, Line 2 (See IRM 3.12.263.19.3.4, Field 0202 Annual Exclusions, for correction procedures for Field 0202 (Annual Exclusion)).
(8) If a foreign spouse is one of the donees, a 1 must be entered in Field 01FSI (Foreign Spouse Indicator).
(9) If you cannot determine the number of donees from Schedule A, Parts 1, 2, 3, and/or attachments, correspond for the number and list of donees.
Suspense Corrections
(1) Follow Suspense Procedures Below:
If | Then |
|---|---|
If reply is received |
|
No reply |
|
Field 01FSI - Foreign Spouse Indicator
(1) Field 01FSI is located on Schedule A, Part 1, left margin and edited by Code & Edit.
Invalid Conditions
(1) Field 01FSI in invalid if other than a 1 or blank.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 01FSI is edited by Code and Edit to the left margin next to Schedule A, Part 1. The valid code entries are blank and 1. Enter a 1 for a foreign spouse is indicated. A foreign spouse could be determined if the amount on Schedule A, Part 4, Line 2, includes the $185000 amount for the foreign spouse for tax year 2024. The annual exclusion for a foreign spouse cannot exceed the amount allotted for the tax year in question, with the amounts for each tax year shown as follows:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $185,000 |
(3) If the foreign spouse indicator is not present, but Schedule A, Part 4, Line 2 contains the foreign spouse exclusion amount for that year, enter a 1 in the left margin on Schedule A, Part 1, next to Column A (Item Number). Verify from the return or attachments that the donee is a foreign spouse. DO NOT CORRESPOND.
(4) If this field 01FSI errors, Review Schedule A, Column B:
If a foreign spouse is a donee, enter a "1" in Field 01FSI. See Figure 3.12.263-3, Foreign Spouse Indicator.
If a foreign spouse is not a donee, delete any invalid entry.
(5) See IRM 3.12.263.19.2.18, Field 01TND - Total number of Donees, and IRM 3.12.263.19.3.4, Field 0202 - Annual Exclusion for more information.
Field 01RFC - Refund Code
(1) The Refund Code is entered by Error Resolution, to show that a refund of $10,000,000 or more has been issued.
(2) Due to the large amount of interest we would pay if a refund of this size is not handled timely, these returns will have the refund processed manually.
(3) The Refund Code is used for returns with Manual Refunds of $10,000,000 or more.
This field must be blank or "1".
When a Refund Code of "1" is present, CCC "O" must be present in Field 01CCC.
Note: CCC "O" is entered in Field 01CCC when either a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request of IDRS Generated Refund (IGR), is attached to the return. See IRM 3.12.263.3.2.2, Refund Returns, 45-day-Jeopardy and Large Dollar Refunds to ensure the refund is issued timely.
Invalid Conditions
(1) Field 01RFC is invalid if it contains a numeric entry other than a blank or 1.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) SSPND using AC 341 if manual refund is needed.
(3) Once a manual refund has been issued according to local procedures, input a 1 in Field 01RFC and an "O" in Field 01CCC.
Note: See IRM 3.12.263.3.2.2, Refund Returns (45-day-Jeopardy and Large Dollar Returns). to ensure the refund is issued timely.
(4) If the condition is being resolved and a manual refund will NOT be issued, input a 1 in Field 01RFC only.
Field 01PSN - Preparer’s Tax Identification Number (PTIN)
(1) The Firm's EIN is located below the Preparer's PTIN box from the bottom right corner of Form 709-NA (Page 1).
(2) The Firm's EIN must be a nine - digit numeric character. The EIN cannot be all zeros or nines.
(3) Circle out the Preparer's EIN if it is invalid.
Field 01PEN - Firm’s EIN
(1) The Firm's EIN transcribe from the bottom right corner of Form 709-NA (Page 1).
(2) The Firm's EIN must be a nine - digit numeric character. The EIN cannot be all zeros or nines.
(3) Circle out the Preparer's EIN if it is invalid.
Field 01PTN - Preparer Phone Number
(1) The Paid Preparer's Phone Number is located below the Firm's EIN transcribe from the bottom right corner of Form 709-NA (Page 1).
(2) No action is required on amended returns.
(3) If a complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, edit to the Phone no. line.
(4) If a complete Paid Preparer's Phone Number is not located or the number is illegible, circle out the incomplete or illegible phone number.
Section 02 - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States
(1) Section 02 field designators, line numbers, field lengths, and titles are listed below. This section is transcribed in dollars only. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Send the appropriate TPNC.
Field Designator | Line Number | Field Length | Title |
|---|---|---|---|
02GPB | Schedule A, Top center | 12 | Basis of Gifted Property |
0201 | Schedule A Part 4, Line 1 | 12 | Total Value of Gifts of Donor |
0202 | Schedule A Part 4, Line 2 | 12 | Annual Exclusion |
0203 | Schedule A Part 4, Line 3 | 12 | Total Included Amount of Gifts |
0204 | Schedule A Part 4, Line 4 | 12 | Gifts of Interest Amount |
0205 | Schedule A Part 4, Line 5 | 12 | Exclusions Attributable to Gifts |
0206 | Schedule A Part 4, Line 6 | 12 | Marital Deductions |
0207 | Schedule A Part 4, Line 7 | 12 | Charitable Deductions |
0208 | Schedule A Part 4, Line 8 | 12 | Total Deductions |
0209 | Schedule A Part 4, Line 9 | 12 | Balance After Deductions |
0210 | Schedule A Part 4, Line 10 | 12 | GST Taxes Payable |
0211 | Schedule A Part 4, Line 11 | 12 | Taxable Gifts (Balance After GST) Amount |
(2) This section is required unless Field 01CCC contains a "G". The fields in this section are transcribed from Page Schedule A, Part 4 Form 709-NA.
(3) The computer cannot compute, and complete math verification will not be done under the following condition:
Tax period (Field 01TXP) is invalid.
Processing Field Errors
(1) Check for coding and transcription errors and correct as needed.
(2) If the money amounts on a return exceed the maximum field length allowable, reject with AC 610 or 611.
(3) Enter the maximum amount allowable on the original return. Recompute the tax data and enter the corrected amount(s) on the screen display and the return. DO NOT SEND A TAXPAYER NOTICE CODE to taxpayer.
(4) Write on the original return, Dummy Return prepared due to overflow document.
(5) Using a red pen, prepare a Dummy Return by computing and entering the remaining overflow money amount(s) for the correct fields. Enter the following data on the Dummy Return.
On the top of the return, write "Dummy Prepared from Overflow Return".
Entity data from the original return.
The DLN from the original return, bottom left margin going up the side
CCC "G" in Field 01CCC.
In the signature area, write "Signature on Original Return".
(6) Place the dummy return in the batching basket to be numbered and processed.
Field 02GPB - Basis of Gifted Property
(1) Check for coding and transcription errors and correct as needed.
(2) Code and Edit will enter the total at the top center of Schedule A Part 1 (Donors Adjusted Basis of Gift Column h, Parts I, 2, and 3 if more than one item is listed in the column.
(3) If blank, enter $1 (one dollar) in Field 02GPB.
Field 0201 - Total Gifts Current Amount
(1) Field 0201 is transcribed from Schedule A, Part 4, Line 1. The amount represents the total of all of the Donee gifts that are listed on Schedule A Parts, 1, 2, and 3, column j.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) When it appears that there is a math error on the return, check to see if the taxpayer has entered the correct amount on this line. If the correct amount can be determined from the total of schedule A Parts 1, 2, and 3, column j (Net Transfer), correct Field 0201. (Correspond only if it is necessary to obtain other items needed to complete processing the return; otherwise, DO NOT correspond solely for this information.)
Note: When corresponding make sure you correspond for everything you may need.
Suspense Corrections
(1) Follow table for Suspense corrections:
If | Then |
|---|---|
Sufficient Reply |
|
No reply or Insufficient Reply |
|
Field 0202 - Annual Exclusions for more Information
(1) Field 0202 is transcribed from Schedule A, Part 4, Line 2.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This field is computed by multiplying the number entered in Field 01TND by:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $18,000 |
Verify the entry in Field 01TND and 0202.
If the amount in the Annual Exclusion (Field 0202) is blank or zero, delete entry in the number of donees (Field 01TND).
If there is an amount in Field 0202 which the taxpayer did not use in his computation of tax, follow their intent and delete the amount in Field 0202.
(3) The first $18,000 of gifts of present interest to each donee during the calendar year is subtracted in figuring the amount of taxable gifts. Verify the annual exclusion claimed against the number of the donee box on Page 1, Part 1, Line 20. (See IRM 3.12.263.19.2.18, Field 01TND-Total Number of Donees, to decide the correct number of donees.) An underprint will generate in Field 0202 if the taxpayer's figure is greater than the computer's computation (Field 01TND multiplied by $18,000). If Field 0202 is blank and valid, delete any entry in Field 01TND.
(4) The annual exclusion for nonresident alien spouses see table below:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $185,000 |
(5) If the taxpayer has claimed the Annual Exclusion (Field 0202), accept the entry only if the gift is to a non-citizen spouse:
If the gift is indeed to a non-citizen spouse, verify that a "1" is present in Field 01FSI.
If the gift is not to a non-citizen spouse, delete the "1", if present, in Field 01FSI, send a TPNC 91. TPNC 91 States, An error was made in computing your annual exclusion. Your Unified Credit/Applicable Credit has been adjusted accordingly”.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
(6) The Annual Exclusion for a non-citizen spouse as a donee cannot exceed:
Tax Year | Annual Exclusion |
|---|---|
2024 | $185,000 |
If 01TND equals four (one of which is the non-citizen spouse donee) and "1" is in Field 01FSI, then Field 0202 (Annual Exclusion) cannot exceed $239,000.
The preceding $239,000 is calculated by allowing $185,000 for the non-citizen spouse and $18,000 for each donee (see calculation below). Total number of donees equal 4 (Field 01TND).
If the amount in Field 0202 (Annual Exclusion) is less, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
1 = $185,000 (non-citizen spouse)
3 × $18,000 = $54,000 (each additional donee)
$239,000 (Total allowable Annual Exclusion Field 0202)
(7) All gifts made during the calendar year to a donee are fully excluded under the Annual Exclusion if all are gifts of present interest and if they total $18,000 or less.
Note: If a gift is less than $18,000, limit the amount of Annual Exclusion for that gift to the amount of the gift.
(8) The purpose of the exclusions, there are two kinds of gifts; gifts of present interest and gifts of future interest.
Gifts of present interest qualify for the exclusion. Gifts of future interest do not.
A gift is a gift of present interest if the donee can do anything they want with the gift or can do anything they want with the income from the property (if only present interest is an income interest - exclusion would be limited to value of income interest). (The taxpayer is free to spend or to benefit from the gift when it is received.)
A gift is a gift of future interest if the donee cannot do so until sometime in the future.
Exception: If a gift is given to a minor, the gift and income from the gift may be spent by, or for the benefit of the donee prior to attaining the age of 21, and any amounts remaining will pass to the donee once they reach age 21, the gift is considered to be a gift of a present interest.
If the taxpayer shows that a gift of a future interest has been given and does not claim an exclusion, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
If the taxpayer does not show that a gift of a future interest has been given but does not claim an exclusion, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
If the taxpayer shows that a gift of a future interest has been given, and an exclusion has been taken for that gift, disallow the exclusion and notify the taxpayer with a Taxpayer Notice Code (TPNC) 90-98, States "We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of future interest do not qualify for the exclusion."
Tax Year | Exclusion Amounts |
|---|---|
2024 | $18,000 |
Field 0203 - Total Included Gifts Amount
(1) Field 0203 is transcribed from Schedule A, Part 4, Line 3. It is computed by subtracting Field 0202 from Field 0201. This field can be positive or negative.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If part or all of the amount included on Schedule A, Part 4, Lines 1 and 2 are described by the taxpayer as an incomplete gift, or if the taxpayer cites Regulation 25.2511-2, the amount must not be included as part of the gift for the year.
Search for an attachment showing the instrument of transfer.
If not found, DO NOT correspond.
If the taxpayer furnished the document or statement indicating the incomplete gift, reduce the amounts on Lines 1, 2, and/or 3 accordingly.
(3) If the taxpayer includes a gift on Schedule A which they do not include in the gift total on Schedule A, Part 4, Line 1 (Field 0201), search the return and/or attachments for an explanation.
If the taxpayer furnished the document or a statement indicating the incomplete gift, reduce the amounts in Fields 0201, 0202, and 0203 as needed.
If not found, correspond.
If the taxpayer does not respond, consider the amount as a regular gift.
Field 0204 - Gifts of Interest Amount
(1) Field 0204 is transcribed from Schedule A, Part 4, Line 4.
(2) A gift given to a spouse who was not a U.S. citizen (i.e., a "1" is present in Field 01FSI) at the time of the gift may not be entered in Field 0204.
Field 0205 - Exclusions Attributable to Gifts
(1) Field 0205 is transcribed from Schedule A Part 4, Line 5.
(2) Field 0205 is transcribed from Schedule A, Part 4, Line 5, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Field 0206 - Marital Deduction
(1) Field 0206 is transcribed from Schedule A, Part 4, Line 6. It is computed by subtracting Field 0205 from Field 0204.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0206 is transcribed from Schedule A, Part 4, Line 6. It is computed by subtracting Field 0205 from Field 0204.
If an entry is present in Field 0206, and no entry is present in Field 0204 and Field 0205, enter Field 0206 amount in Field 0204.
If there is no entry present in Field 0204, an amount is present in Field 0205, and zero, blank or negative is present in Field 0206, delete Field 0205.
Field 0207 - Charitable Deductions
(1) Field 0207 is transcribed from Schedule A, Part 4, Line 7.
Field 0208 - Total Deductions Amount
(1) Field 0208 - Total Deductions Amount. It is computed by adding Field 0206 and Field 0207.
Field 0209 - Balance After Deductions Amount
(1) Field 0209 is transcribed from Schedule A, Part 4, Line 9. It is computed by subtracting Field 0208 from Field 0203.
Field 0210 - GST Taxes Payable Amount
(1) Field 0210 is transcribed from Schedule A, Part 4, Line 10. This field is brought forward from Form 709-NA, Schedule D, Part 3, Column G.
Section 03 - Form 709-NA, United States Gift (and Generation-Skipping Transfer)United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States
(1) Section 03 field designators, line numbers, field lengths and titles are listed below. Most fields in this section are transcribed dollars only.
Exception: Fields 0307 (Total Credits), 0317 (Total Taxes), 0318 (Prior Payments Amount), and 03B/R (Balance Due or Overpayment) are transcribed dollars and cents. The computer-checked fields in this section will underprint if the taxpayer and computer figures ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ computer figures exceed tolerance shown for any, some, or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Do not bring up underprints. Send the appropriate TPNC.
Field Designator | Line Number | Field Length | Title |
|---|---|---|---|
0301 | Page 1, Part 2, Line 1 | 12 | Current Taxable Gifts |
0302 | Page 1, Part 2, Line 2 | 12 | Prior Taxable Gifts |
0303 | Page 1, Part 2, Line 3 | 12 | Total Taxable Gifts |
0304 | Page 1, Part 2, Line 4 | 12 | Current Total Tax Taxpayer |
0305 | Page 1, Part 2, Line 5 | 12 | Total Tax Taxpayer Prior |
0306 | Page 1, Part 2, Line 6 | 12 | Balance of Tax |
03BTV | Balance of Tax Verified | 12 | (ERS Only Input Field) |
0312 | Page 1, Part 2, Line 7 | 15 | Other Credits |
0313 | Page 1, Part 2, Line 8 | 12 | Credit for foreign Gift Tax |
0314 | Page 1, Part 2, Line 9 | 12 | Total Credits |
0315 | Page 1, Part 2, Line 10 | 12 | Balance Total Gifts minus Total Credits |
0316 | Page 1, Part 2, Line 11 | 11 | Generation Skipping Transfer Tax |
0317 | Page 1, Part 2, Line 12 | 12 | Total Tax |
03MCT | Page 1, Part 2, Dotted Line 12 | 12 | Manually Corrected Total Tax |
0318 | Page 1, Part 2, Line 13 | 12 | Gift and Generation-skipping transfer taxes prepaid with extension |
03B/R | Page 1, Part 2, Line 14 | 12 | Balance Due |
03B/R | Page 1, Part 2, Line 15 | 12 | Refund Amount |
Field 0301 - Current Taxable Gifts
(1) Field 0301 is transcribed from Page 1, Part 2, Line 1. The computer will math verify the entry by comparing it with Field 0211 Schedule A, Part 4, Line 11. If different, Field 0301 will underprint with Field 0211 amount.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) When a math error causes Field 0301 to underprint, check that the amount on Schedule A, Part 4, Line 11 is correct. Verify the correct amount was transferred correctly to Page 1, Part 2, Line 1.
(3) If there is a discrepancy between Schedule A, Part 4, Line 11, and Page 1, Part 2, Line 1, enter the correct amount in Field 0301.
Field 0302 - Prior Taxable Gifts
(1) Field 0302 is transcribed from Page 1, Part 2, Line 2. It is taken from Schedule B Line 3.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) When a math error causes Field 0303 to underprint, check that the amount on Schedule B, Line 3 is correct. Verify the correct amount was transferred correctly to Page 1, Part 2, Line 2.
(3) If there is a discrepancy between Schedule B, Line 3, and Page 1, Part 2, Line 2, enter the correct amount in Field 0302.
Field 0303 - Total Taxable Gifts
(1) Field 0303 is transcribed from Page 1, Part 2, Line 3. It is computed by adding Field 0301 and Field 0302.
Field 0304 - Total Tax Taxpayer (Current)
(1) Field 0304 is transcribed from Page 1, Part 2, Line 4. It is computed by using the tax rates in effect for the tax period to calculate the tax on Line 3 (Field 0303).
Field 0305 - Total Tax Taxpayer (Prior)
(1) Field 0305 is transcribed from Page 1, Part 2, Line 5. It is computed by using the tax rates in effect for the tax period to the amount on Line 2 (Field 0302).
Field 0306 - Balance of Tax
(1) Field 0306 is transcribed from Page 1, Part 2, Line 6. It is computed by subtracting Field 0305 from Field 0304.
Field 03BTV - Balance of Tax Verified
(1) Field 03BTV is an Error Resolution-Only input field. It will be entered by Error Resolution examiners when verifying tax computations and tax rates in effect for the appropriate tax period used for computing Line 6 (Balance of Tax). Field 03BTV will be used to verify the correct tax computation for prior year returns and returns involving special tax rates. The resulting entries for this field are entered in dollars only amounts
Field 0312 - Other Credits
(1) Field 0312 is transcribed from Page 1, Part 2, line 7.
Field 0313 - Credit for Foreign Gift Taxes
(1) Field 0313 is transcribed from Page 1, Part 2, line 8.
Field 0314 - Total Credits
(1) Field 0314 is transcribed from Page 1, Part 2, line 9.
Field 0315 - Balance, Gifts Minus Credits
(1) Field 0315 is transcribed from Page 1, Part 2, line 10. It is computed by subtracting Field 0314 from Field 0306.
Field 0316 - Generation - Skipping Transfer Taxes (GST)
(1) Field 0316 is transcribed from page 1, Part 2 line 11. It is brought forward for Schedule D, Part 3, col. G, total.
Field 0317 - Total Tax
(1) Field 0317 is transcribed form Page 1, Part 2, Line 12. It is computed by adding Field 0310 and Field 0311.
Field 03MCT - Manually Corrected Tax
(1) Field 03MCT is entered by Error Correction on the dotted portion of Page 1, Part 2, Line 12.
Field 0318 - Generation - Skipping Transfer Tax Prepaid with Extension of Time to File
(1) Field 0318 is transcribed from Page 1, Part 2 line 13.
Field 03B/R Balance Due
(1) Field 0319 is transcribed from Page 1, Part 2 line 14.
Section 04 -Form 709-NA, United States Gift (and Generation-Skipping Transfer)Tax Return of Nonresident Not a Citizen of the United States
(1) Check for coding and transcription errors and correct as needed.
(2) Section 04 field designators, line numbers, field lengths and titles are listed below. Section 04 cannot be present on a G coded return; if present, delete with CC DLSEC.
Field | Line | Field |
|
|---|---|---|---|
04PNL | Page 1, Part 1, Box 1 | 35 | Primary Name Line |
04LRE | Page 1, Part 1, Box 4 | 35 | Legal Residence |
04ADD | Page 1, Part 1, Box 8a | 35 | Street Address |
04CON | Page 1, Part 1, Box 8a | 35 | In Care of Name Line |
04FAD | Page 1, Part 1, Box 8a | 35 | Foreign Address |
04CTY | Page 1, Part 1, Box 9 | 22 | City/Major City Code |
04ST | Page 1, Part 1, Box 10 | 2 | State |
04ZIP | Page 1, Part 1, Box 11 | 12 | ZIP Code |
Field 04PNL - Primary Name Line
(1) Field 04PLN is transcribed from Page 1, Part 1, Box 1
Invalid Conditions
(1) The Primary Name Line:
Cannot contain a numeric or an ampersands.
Can contain alpha, less-than sign (<), hyphens (-), and blanks.
Must contain at least one less-than sign (<).
Cannot contain more than two less-than sign (<).
First position cannot be blank.
A less-than sign (<) cannot be preceded or followed by another less-than sign (<) or a blank.
A character cannot follow two consecutive blanks.
Limited to 35 positions.
Last word cannot be split.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) A hyphen followed by a less-than sign (<) is allowed in the first position of a single named person and a second less-than sign (<) will be placed after the last character of the last name prior to Jr., Sr., or III (the third). The less-than sign (<) and hyphen are the only special characters allowed. Below are examples of edited names:
"James Hart Jr." edited to "James <Hart <Jr"
"Robert William III" edited to "Robert <William <III"
(3) Care must be taken with hyphenated names. Below are examples of edited names:
"Elizabeth Allyn Marshall Will" edited to "Elizabeth Allyn M.<Will".
"Elizabeth Allyn Marshall-Will" edited to "Elizabeth A.<Marshall-Will".
Field 04LRE - Legal Residence Domicile
(1) Field 04LRE is transcribed from Page 1, Part 1, Box 4.
Invalid Conditions
(1) Legal Residence Domicile
Can not contain more than 2 characters
Can not be other than a valid Foreign Country Code
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If invalid enter valid Foreign Country Code. (Exhibit 3.12.263-14 for Foreign Country Codes)
Field 04CON
(1) Field 04CON is transcribed from Page 1, Part 1, Box 8.
(2) This field has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent.
Note: The first character of the "in-care of" name must be alpha or numeric.
Invalid Conditions
(1) Field 04CON is invalid if any of the following conditions are present:
The first position is % (percent) and the second position is not blank.
The first position is blank.
The first character of the "in-care-of" name is not alpha or numeric.
There are two consecutive blanks between significant characters.
Correction Procedures
(1) Check for coding and transcription errors using information below and correct as needed.
If | Then |
|---|---|
A % (percent) is in the first position | 1. Verify there is a blank in the second position. |
A blank is in the first position | 1. Delete blank. |
The first character of the in-care-of name is not alpha or numeric | 1. Verify in-care-of name on the return. |
Two consecutive blanks are present between significant characters | Delete any unnecessary blanks in Field 04CON. |
Field 04FAD - Foreign Address
(1) Field 04FAD is transcribed from Page 1, Part 1, Box 8.
This field will contain an entry when there is a foreign address present on the return.
Field 04FAD must not be present on "G" coded returns.
(2) Valid characters are alpha, numeric and special characters.
Invalid Conditions
(1) Field 04FAD is invalid if any of the following conditions are present:
The first position is blank.
Any character follows two consecutive blanks.
There are more than 35 characters present in the field.
Note: Integrated Submission and Remittance Processing (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.
Correction Procedures
(1) Check for coding and transcription errors using the information below to correct as needed. Exhibit 3.12.263-14, Foreign Country Codes.
If | Then |
|---|---|
Field 04FAD is present | 1. GTSEC 04.
|
(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 and take the following action.
If | Then |
|---|---|
The information is the same | Take no action and continue processing |
The information is different | 1. Detach Form 8822, Change of Address. |
Foreign Addresses - General Information
(1) KCSPC will process Estate and Gift tax foreign/international addresses and U.S. Possessions returns.
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
Federated States of Micronesia
Guam
Marshall Islands
Northern Mariana Islands
Palau
Puerto Rico
Virgin Islands
(2) The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old format, such as APO New York, NY 091XX, convert to the new state code abbreviation using the information below:
ZIP Code | Address | Abbreviation |
|---|---|---|
340XX | APO/DPO/FPO | AA |
090XX-098XX | APO/DPO/FPO | AE |
962XX-966XX | APO/DPO/FPO | AP |
Foreign Addresses
(1) A foreign address will contain:
Street Address or PO Box
City or town name
Other principal subdivision (i.e., province, state, and county).
Postal code if present
Foreign country
(2) Returns with addresses in the U.S. Possessions are considered to be a foreign return for processing purposes and are entered in the same way as domestic addresses Use the information below for Abbreviation:
Note: A two character alpha code must be entered in Field 04ST for the possession name.
U.S. Possession | 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 |
(3) A ZIP code must be present.
Field 04ADD - Street Address
(1) Field 04ADD is transcribed from Page 1, Part 1, Box 8.
Correction Procedures
(1) Check for coding and transcription and correct as needed.
(2) The first position must be alpha or numeric.
(3) If this field is present, city and state must also be present unless a major city code is used.
(4) If a foreign address is present, the city and postal code, if present, must be entered in this field.
Field 04CTY - City/Major City Code
(1) Field 04CTY is transcribed from Page 1, Part 1, Box 9.
(2) Field 04CTY may contain alpha characters and blanks.
Correction Procedures
(1) Check for coding and transcription and correct as needed.
(2) The first position cannot be blank.
(3) If this field is present, a state must be present unless a major city code has been used. For valid major city codes, see Document 7475, State and Address Abbreviations, Major City Codes (MCC’s) ZIP Codes and Countries.
(4) If a foreign address is shown on the return, enter appropriate foreign country code in Field 04CTY.
(5) If a Major City code is used, a street address (Field 04ADD) must be present.
Field 04ST - State
(1) Field 04ST is transcribed from Page 1, Part 1, Box 10.
Correction Procedures
(1) Valid state abbreviation must be present if Field 04CTY (City) is present. For valid state abbreviations, see Document 7475, State and Address Abbreviations, Major City Codes (MCC’s) ZIP Codes and Countries. See Exhibit 3.12.263-13, U.S. Possessions ZIP Codes.
(2) This field must be blank if major city code used in Field 04CTY.
Field 04ZIP - ZIP Code
(1) Field 0ZIP is transcribed from Page 1, Part 1, Box 11.
(2) This field must be all numeric or blank.
(3) This field must be blank if the address is foreign.
Correction Procedures
(1) If a valid ZIP code is not shown on the return, refer to Document 7475, State and Address Abbreviations, Major City Codes (MCC’s) ZIP Codes and Countries, or ZIP code directory. See Exhibit 3.12.263-13 U.S. Possessions ZIP Codes.
(2) If the first three digits of the ZIP code (Field 04ZIP) do not agree with Fields 04CTY or 04ST, it will result in Error Code 016. Errors in Fields 04CTY or 04ST will also result in Error Code 014.
(3) If only the first three digits of the ZIP code can be determined, enter 01 as the fourth and fifth digits.
Math Consistency - Priority IV Errors Form 709-NA, United States Gift (and Generation-Skipping Transfer)Tax Return of Nonresident Not a Citizen of the United States
(1) A Priority IV error will display whenever the contents of one field is inconsistent with the contents of another field, or when a math computation is incorrect. These errors will be assigned a specific Error Code and will display in ascending Error Code order.
(2) The screen display will show the error code assigned and all the fields needed to make the correction.
For some math error codes, a field name "NC" will display for the entry of a Taxpayer Notice Code (TPNC). Multiple taxpayer notice codes may be entered when multiple XX(s) are shown. Previously assigned TPNC(s) will display on the right - hand side of Line 3 of the screen.
A field labeled "CL" will be shown for the entry of a Clear Code on records when a change or correction may not be needed. All coding and transcription errors must be corrected, and all IRM procedures applied BEFORE entering a "C" in the Clear Field.
(3) All errors must be solved by:
Eliminating the error.
Entering a Clear Code.
Entering a Taxpayer Notice Code.
Suspending the document with the correct AC.
Error Code 001 - Tax Year - Fields Displayed
(1) Fields Displayed - Error Code 001 will display as follows:
Field Designator | Field Name | Field Length |
|---|---|---|
01TXP | Tax Period | 6 |
01CCC | Computer Condition Code | 10 |
01RCD | Received Date | 8 |
01RD> | Return Due Date | 8 |
Invalid Conditions
(1) Error Code 001 will generate when any of the following conditions is present:
CCC "G" is Not Present - The processing date is equal to or more than two years and 9 months after the return due date or the IRS received date (whichever is later) and CCC "W" is not present.
CCC "G" is Present - The processing date is equal to or more than two 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.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Do not send the following returns to Statute Control for clearance. Instead, enter W in Field 01CCC and on the return and continue processing:
Any return secured by Compliance (i.e., 6020(b)).
Any return with a TC 59X.
Any return that is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133, Expedite Processing Cycle, attached.
Any return that is a 2019 and prior year original: Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2019 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired.
(3) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information using information below.
If | Then |
|---|---|
Field 01RCD is blank | 1. Enter the IRS received date in Field 01RCD. Use the earliest date if multiple received dates are present.
|
CCC "W" was entered incorrectly | Delete CCC "W" from Field 01CCC. |
The return has a stamp that shows a previous clearance by Statute Control within the last 90 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 90 days | 1. SSPND 310. |
Error Code 002 - Name Control Mismatch
(1) Fields Displayed - Error Code 002 will display as follows:
Field Designator | Field Name | Field Length |
|---|---|---|
CL | Clear Code |
|
01NC | Name Control/Check Digit | 4 |
>>>> | Name Control Underprint |
|
01SSN | Social Security Number | 9 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State | 2 |
04ZIP | ZIP Code | 12 |
Note: The literal "SECTION 04 NOT PRESENT" will display if no entries are in Section 04.
Invalid Conditions
(1) Error Code 002 will generate when the name control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF).
Correction Procedures
(1) Before taking any more 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 National Access Point. If Error Code 002 reappears, continue with the remainder of the correction procedures.
(2) When corrections are made to Field 01NC or Field 01SSN, the computer will validate the entries with the National Access Point and reset the OLE indicators as appropriate upon transmitting the Error Resolution screen.
(3) Check for misplaced entries, coding and transcription errors and correct as needed.
(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 decide the correct Name and do the following:
If | Then |
|---|---|
The name on the return or attachment agrees with the name control on INOLES | 1. Bring up the underprint. |
INOLES is blank or has a different name | Research ENMOD for Pending Name Change or a Dummy Entity not yet established on INOLES. Note: If correct name is found on ENMOD it will post to INOLES once the system cycles. |
The name on ENMOD (Pending Name Change/Dummy Entity)agrees with the name control on the return or attachment | Bring up the underprint. |
The name control on INOLES/ENMOD is different from the name on the return or attachment | Research NAMES/NAMEI for a new SSN. |
(6) If a new SSN is located, verify the name control using CC INOLES and take the following action:
If | Then |
|---|---|
The name control on INOLES agrees with the name on the return or attachment | 1. Ensure that the entity information agrees with the return. |
The SSN is changed | Write the correct SSN on the document above the SSN area. |
Credit needs to be transferred or payment posted to the wrong account | 1. Prepare Form 3465, Adjustment Request |
An SSN cannot be found | SSPND 320 to Entity Control |
Suspense Correction
(1) Entity finds a valid SSN or assigns a SSN, research IDRS to decide if payments posted incorrectly take the following action:
If | Then |
|---|---|
The payment posted to the wrong SSN | 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. |
The payment posted correctly | 1. Enter correct SSN in Field 01SSN and on the return and transmit. |
Payment cannot be located | Enter C in the Clear Code field. |
Error Code 003 - Check Digit Invalid
(1) Fields Displayed - Error Code 003 will display as follows:
Field Designator | Field Name | Field Length |
|---|---|---|
01NC | Name Control | 4 |
01SSN | Social Security Number | 9 |
01CCC | Computer Condition Code | 10 |
Invalid Conditions
(1) Error Code 003 will generate when any of the following conditions are present:
A check digit is present but is not valid for the SSN.
The letters "E", "G", or "M" are present as Check Digits in Field 01NC.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information from below:
If | Then |
|---|---|
The check digit in Field 01NC does not agree with the return or is not legible | Enter the name control from the return in Field 01NC. |
The SSN on the return is not legible | Research NAMES/NAMEI for correct SSN. |
(3) If a new SSN is located, verify the name control using CC INOLES and take necessary action from If/Then Chart below:
If | Then |
|---|---|
The SSN on the return agrees with the SSN on INOLES | Enter name control from INOLES in Field 01NC. |
Name control on INOLES agrees with the name on the return or attachments | 1. Ensure that the entity information agrees with the return. |
The SSN is changed | Write the correct SSN on the document above the SSN area and in Field 01SSN. |
The payment posted to the wrong SSN | 1. 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. |
An SSN cannot be found | SSPND 320 to Entity Control. |
Suspense Corrections
(1) Entity finds a valid SSN or assigns a SSN research IDRS using CC BMFOL to decide if payments posted incorrectly follow If/Then Chart for further action:
If | Then |
|---|---|
The payment posted to the wrong SSN | 1. 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. |
The payment posted to the correct SSN | Enter the correct SSN in Field 01SSN and on the return. |
The payment cannot be located | No action required. |
Error Code 004 - Name Control/SSN Validation
(1) Fields Displayed - Error Code 004 will display as follows:
Field Designator | Field Name | Field Length |
|---|---|---|
CL | Clear Code |
|
01NC | Name Control/Check Digit | 4 |
>>>> | Name Control Underprint |
|
01SSN | Social Security Number | 9 |
Invalid Conditions
(1) Error Code 004 will generate when any of the following conditions is present:
The SSN is not present on the Master File National Access Point (NAP).
The Entity Index File (EIF) and the National Access Point were not accessed or were not operational, causing a blank underprint in Field 01NC.
Note: An underprint of "XXXX" shows that there is no account on the Master File, while a blank underprint shows that the National Access Point has not been accessed or was not operational.
Correction Procedures
(1) Before taking any more 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/SSN have posted to the National Access Point. If Error Code 004 reappears, continue with the remainder of the correction procedures.
(2) When corrections are made to Field 01NC or Field 01SSN, the computer will validate the entries with the National Access Point and reset the OLE indicators as appropriate upon transmitting the Error Resolution screen.
(3) Check for misplaced entries, coding and transcription errors and correct as needed.
(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 decide the correct name control following If/Then Chart below:
If | Then |
|---|---|
The name on the return or attachment agrees with the name control on INOLES | Bring up the underprint. |
INOLES is blank or has a different name | Research ENMOD for Pending Name Change or a Dummy Entity not yet established on INOLES. Note: If correct name is found on ENMOD it will post to INOLES once the system cycles. |
The name on ENMOD (Pending Name Change/Dummy Entity)agrees with the name control on the return or attachment | Bring up the underprint. |
The name on INOLES is different from the name on the return or attachment | Research NAMES/NAMEI for a new SSN. |
(6) If a new SSN is located, verify the name control using CC INOLES and take the following action:
If | Then |
|---|---|
The payment posted to the wrong SSN | 1. 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. |
The name control on INOLES agrees with the name on the return or attachment |
|
An SSN cannot be found | SSPND 320 to Entity Control |
Suspense Corrections
(1) Entity finds a valid SSN or assigns a SSN, research IDRS to decide if payments posted incorrectly use information below to perfect payments posted:
If | Then |
|---|---|
The payment posted to the wrong SSN | 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. |
The payment posted correctly | 1. Enter correct SSN in Field 01SSN and on the return and transmit. |
Payment cannot be located | Enter C in the Clear Code field. |
Error Code 007 - Received Date is Earlier than Tax Year
(1) Fields Displayed - Error Code 007 will display as follows:
Field Designator on Form 709-NA | Field Name | Field Length |
|---|---|---|
01TXP | Tax Period | 6 |
01CCC | Computer Condition Code | 10 |
01RCD | Received Date | 8 |
Invalid Conditions
(1) Error Code 007 will generate when the IRS received date is earlier than the first day of the tax period/year.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information from If/Then Chart below:
If | Then |
|---|---|
The IRS received date is invalid and it appears that the incorrect year was used and other information (postmark date, Service Center Automated Processing System, digital date, signature date, and/or Julian date) shows the received date will be the current year | Change the IRS received date to the current year and enter in Field 01RCD. |
The return is an early filed return | 1. SSPND 480. |
Suspense Corrections
(1) Check correspondence from the taxpayer to decide the correct action using the information below:
If | Then |
|---|---|
The taxpayer replies that the return is a Final | 1. Change the IRS received date to the first business day after the end of the tax year in Field 01RCD (i.e., January 2). |
The taxpayer replies that the return is not a Final return | SSPND 480 until the end of the tax period provided by the taxpayer. |
The taxpayer fails to reply or the reply is not adequate | 1. Enter CCC "3" in Field 01CCC. |
Error Code 010 - Amended Return (G) Coded
(1) Fields Displayed - Error Code 010 will display as follows:
Form 709-NA, United States Gift (and Generation-Skipping Transfer)Tax Return of Nonresident Not a Citizen of the United States | Field Name | Field Length |
|---|---|---|
01CCC | Computer Condition Code | 10 |
01PIC | Penalty and Interest Code | 1 |
01CAF | CAF Indicator | 1 |
01PFC | Prior Filing Code | 1 |
01CZC Note: Valid for Form 709 only | Citizenship Code | 1 |
01CFC Note: Only Valid on 709-NA | Citizenship/Foreign Country Code | 2 |
01DAC Note: Valid for Form 709 only | Digital Assets | 1 |
01DTH | Death Indicator | 1 |
01DOD | Date of Death | 8 |
01TND | Total Number of Donees | 3 |
01FSI | Foreign Spouse Indicator | 1 |
01RFC | Refund Code | 1 |
Sections 02 through 04 are present | Sections 02 through 04 are present | Sections 02 through 04 are present |
Invalid Conditions
(1) Error Code 010 will generate when CCC "G" is present, fields other than 01SSN, 01NC, 01DOD, 01CCC, 01DOB, 01RMIT, 01RCD and 01CRD are present, and Sections 02, 03 or 04 are present.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information from If/Then chart below.
(3) Determine if CCC "G" was input correctly:
If | Then |
|---|---|
Return shows amended, revised, supplemental, corrected, or superseding | Research BMFOL, SUMRY, and/or TXMOD to decide if information is exactly the same as the posted return. |
All information is not the same | 1. Process the return with CCC "G". |
All information is exactly the same | 1. Cancel the DLN. |
A return is not posted for the tax period and the return is an amended return | Continue processing as an amended return. |
A return is not posted for the tax period and the return is not amended (G coded in error) | 1. Enter all necessary data in Sections 02 through 04. |
Note: When deleting CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.
(4) If the return is zero balance and no entry appears in the underprint field and the Remittance Processing System Indicator is present:
Enter $.01 in Field 0317.
Continue processing.
(5) The Error Resolution tax examiner will research to attempt to apply the remittance amount by using the information below. If the data is not found, then SSPND with AC 215:
If | Then |
|---|---|
The remittance is Non-Remittance Processing System (blue or green rocker amounts) | Prepare Form 3244, Payment Posting Voucher, SSPND 610 and have the return renumbered as a non-remittance return. |
The remittance is a Remittance Processing System remittance(has blue or green rocker) | 1. Prepare Form 3465, Adjustment Request, to show where to apply the credits. |
Error Code 011 - Remittance Amount/No data in Section 03, CCC G not present
(1) Fields Displayed - Error Code 011 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
RMIT> | Remittance |
01CCC | Computer Condition Code |
01RCD | Received Date |
Section 03 is not present | Section 03 is not present |
Invalid Conditions
(1) Error Code 011 will generate when an Remittance Processing System or a remittance amount is present, there is no data in Section 03 and CCC "G" is not present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed using the information below:
If | Then |
|---|---|
The record is to be "G" coded | 1. Section 03 is not necessary. Enter the "G" Code in Field 01CCC. |
Data is present on the return for Section 03 fields | 1. Use CC GTSEC and call up Section 03. 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. | GTSEC Section 03, enter $.01 in the Field 0317 and continue processing. |
The data present is insufficient to decide the correct application of the remittance amount, and data is not found through research | 1. Suspend with AC 21X. Correspond with the taxpayer to request an explanation following normal correspondence procedures. |
No data (or reply) is present and where to apply the remittance amount (money) cannot be determined from the return | 1. Enter CCC "X" in Field 01CCC. |
Suspense Instructions
(1) The Error Resolution tax examiner/Rejects Unit will research to attempt to apply the remittance amount by using the If/Then Chart below. If data is not found, then SSPND the record with AC 215:
If | Then |
|---|---|
The remittance is Non-Remittance Processing System (blue or green rocker amounts) | Prepare Form 3244, Payment Posting Voucher, and renumber the return as a non-remittance return. |
The remittance is a Remittance Processing Systems remittance | 1. Prepare Form 3465, Adjustment Request, to show where to apply the credits. |
Taxpayer Replies | Enter Data from Taxpayers Reply in appropriate fields. |
Taxpayer Replies and money needs to be transferred to a different module | 1. Prepare Form 3465, Adjustment Request, to show where to apply the credits. |
The taxpayer does not reply and you cannot tell where to apply the remittance | 1. GTSEC 03. |
Error Code 014 - Missing Address Entries
(1) Fields Displayed - Error Code 014 will display as follows:
Field Designator on Form 709-NA | Field Name | Field Length |
|---|---|---|
04CON | In-Care-of Name Line | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State Code | 2 |
04ZIP | ZIP Code | 12 |
04FAD | Foreign Address | 35 |
Invalid Conditions
(1) Error Code 014 will generate when any of the following conditions are present:
If the street address is present, Field 04CTY and Field 04ST must be present, unless a Major City Code is used.
If a Major City Code is used, Field 04ADD must be present.
A City must be present. If the city is not in the Major City format, Field 04ST must be present. Field 04ADD can be blank.
A Major City Code is used and Field 04ST is present. If the State Code is equal to "AA", "AE" or "AP" and the corresponding ZIP code is present, the City must be APO, DPO, or FPO.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information from If and Then Chart below.
(3) Research any of the following for valid address information:
Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries
INOLE, NAMES/ENMOD
If | And | Then |
|---|---|---|
A Major City Code is present | A street address is not available | 1. Enter the City Name (spelled out, not in Major City format) in Field 04CTY. |
The Major City Code is correct | The state is present | Delete Field 04ST. |
The ZIP code or address cannot be corrected from the information on the return, attachments or from research |
| DLSEC 04. |
Error Code 015 - Foreign Address/State
(1) Fields Displayed - Error Code 015 will display as follows:
Field Designator on Form 709-NA | Field Name | Field Length |
|---|---|---|
04FAD | Foreign Address | 35 |
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State | 2 |
04ZIP | ZIP Code | 12 |
Invalid Conditions
(1) Error Code 015 will generate when any of the following conditions are present:
Field 04ST has an entry other than "." (period/space) when Field 04FAD is present.
Field 04ZIP has an entry when Field 04FAD is present.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed. Exhibit 3.12.263-14, Foreign Country Codes.
(2) Compare displayed fields with the return. If incorrect, use If/Then chart below overlay the screen with the correct information:
If | Then |
|---|---|
A foreign address is present in Field 04FAD | 1. Field 04ST must contain . (period/space). |
A foreign address is not present in Field 04FAD | Check return for foreign address. |
A foreign address is present on the return | 1. Enter the foreign address in Field 04FAD. Note: If more space is required, continue entering the address in Field 04ADD. |
Caution: Do not use the code for Canada if a province name or abbreviation is shown. See IRM 3.12.263.7.7.5, Foreign Address - Canada Only.
Error Code 016 - ZIP Code/State Mismatch
(1) Fields Displayed - Error Code 016 will display as follows:
Field Designator on Form 709-NA | Field Name | Field Length |
|---|---|---|
04ADD | Street Address | 35 |
04CTY | City | 22 |
04ST | State Code | 2 |
04ZIP | ZIP Code | 12 |
04FAD | Foreign Address | 35 |
Invalid Conditions
(1) Error Code 016 will generate when the ZIP code is inconsistent with the Major City Code or State Code.
Correction Procedures
(1) Check for misplaced entries, coding and transcription errors and correct as needed.
(2) Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.
(3) Research any of the following for valid ZIP code information:
Document 7475, State and Address Abbreviations, Major City Codes (MCC’s), ZIP Codes and Countries
INOLE, NAMES/ENMOD
(4) If only the first three digits of the ZIP code can be determined, enter 01 in the fourth (4th) and fifth (5th) positions. Use the table below for correcting the entries for ZIP Codes:
If | And | Then |
|---|---|---|
Unable to decide a valid ZIP code from the return or attachment |
| Enter the valid ZIP code found through research in Field 04ZIP. |
The address is a major city | A Major City Code can be determined | Enter Major City Code in Field 04CTY. |
The address is in a major city | A Major City Code cannot be determined | 1. Enter the name of the city in Field 04CTY. |
The address is not in a major city |
| 1. Enter the appropriate state abbreviation in Field 04ST. |
(5) APO/DPO/FPO Addresses - An APO, DPO, or FPO is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP code. For example, if the old address appears as APO New York, NY 091XX, convert to read as APO AE 091XX see table below to decide New State Code Abbreviation:
ZIP Code | Address | Abbreviation |
|---|---|---|
340XX | APO/DPO/FPO | AA |
090XX-098XX | APO/DPO/FPO | AE |
962XX-966XX | APO/DPO/FPO | AP |
Error Code 030 - P&I Code of (1) and Received Date is on or before RDD
(1) Fields Displayed - Error Code 030 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
01TXP | Tax Period |
01CCC | Computer Condition Code |
01RCD | Received Date |
01PIC | Penalty and Interest Code |
01RD> | Return Due Date |
Invalid Conditions
(1) The Penalty and Interest Code of 1 is present and the IRS received date is one of the following:
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed by using the If and Then Chart below:
If | Then |
|---|---|
The IRS received date is after the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Delete code 1 from Field 01PIC. |
More than one date is present on the return | Use the earliest date. |
The correct IRS received date is equal to or earlier than the due date | Delete code 1 from Field 01PIC. |
Error Code 034 - Correspondence Received Date
(1) Fields Displayed - Error Code 034 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
01TXP | Tax Period |
01RCD | Received Date |
01CRD | Correspondence Received Date |
01RD> | Return Due Date |
Invalid Conditions
(1) The correspondence received date is earlier than, or the same as, the IRS received date or the return due date.
(2) The correspondence received date is later than the processing date.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) The IRS received date will either be stamped or edited on the return. See IRM 3.12.263.19.2.7, Field 01RCD-Received Date, for the IRS received date instructions.
(3) A correspondence received date will be determined from the date the reply was received in the submission processing campus. Refer to the return for the correspondence received date. It is edited in the Entity section of the return. This can be verified by checking the stamped correspondence received date on the correspondence attached to the return the table below will help you decide the correspondence receive date:
If | Then |
|---|---|
The correspondence received date is present and earlier than the return due date, or later than the processing date | Delete the correspondence received date from Field 01CRD. |
More than one correspondence received date is present | Use the earliest date. |
Error Code 073 - CCC 3 and 01CRD has entry
(1) ields Displayed - Error Code 073 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
01CCC | Computer Condition Code |
01CRD | Correspondence Received Date |
Invalid Conditions
(1) Error Code 073 will generate when Field 01CCC is "3" and a date has been entered in Field 01CRD.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Review the return and attachments for the IRS correspondence.
If the IRS correspondence is attached, decide if a reply has been received from the taxpayer. If attached, delete CCC "3".
If "no reply", delete entry in Field 01CRD.
Error Code 082 - Name Control disagrees with name line
(1) Fields Displayed - Error Code 082 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
CL | Clear Code |
01NC | Name Control/Check Digit |
>>>> | Name Control Under print |
04PNL | Primary Name Line |
Invalid Conditions
(1) The Donor Name (Primary Name Line) is not consistent with the name control.
(2) The Donor Name (Primary Name Line) is blank, but the name control is present.
(3) The name control is not consistent with the name control (Underprint).
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) The following information pertains to correction procedures for Error Code 082
If | Then |
|---|---|
The name control on the return and Field 01NC do not agree or was transcribed incorrectly. | Change Field 01NC. |
The Primary Name Line on the return and Field 04PNL do not agree or was transcribed incorrectly. | Change Field 04PNL. |
The Primary Name Line has been transcribed correctly in Field 04PNL, and the first 4 letters disagree with Field 01NC. | Correct Field 01NC. |
It is not an obvious error. | Research per local procedures. |
A correct name control cannot be found. | SSPND with AC 320. |
Suspense Corrections
(1) The following information pertains to Suspense correction procedures for Error Code 082:
If | And | Then |
|---|---|---|
Entity Finds a good SSN | Payment posted to wrong account |
|
Entity finds a good SSN | Payment posted correctly |
|
Entity finds a good SSN | Payment cannot be located |
|
Entity assigns a SSN |
|
|
Error Code 084 - In Care of Name present/Donor Name blank
(1) Fields Displayed - Error Code 084 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
CL | Clear Code |
04PNL | Primary Name Line |
04CON | In Care of Name Line |
Invalid Conditions
(1) Error Code 084 will generate when the In Care of Name Line is present, but the Donor Name (Primary Name Line) is blank.
Correction Procedures
(1) Check for coding or transcription errors and correct as needed.
(2) Check the names on the return against the screen. Make sure there is a primary name line present in the entity area of the return (usually on or around Lines 1, 2, and/or 8 (entity area at the top portion of the return)), and that it is different from the care-of name.
If it appears there is no "care of" name, and the only name present in the entity area of the return is the donors name, correct the return by entering that name in Field 04PNL. If possible, delete the transcribed error(s) from Field 04CON.
If a donor name and a "care of" name are present on the return, enter the "care of" name in Field 04CON, then enter the donors name in Field 04PNL.
Error Code 400 - Death Indicator/DOD
(1) Fields Displayed - Error Code 400 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
01TXP | Tax Period |
01CCC | Computer Condition Code |
01RCD | Received Date |
01DTH | Death Indicator |
01DOD | Date of Death |
Invalid Conditions
(1) The Death Indicator is present, but the DOD is blank.
(2) The Death Indicator is blank, but the DOD is present.
(3) The Death Indicator is present, but Field 01CCC does not contain CCC "F".
(4) The DOD is present, but 01CCC does not contain an "F".
(5) The DOD is greater than the IRS received date.
(6) The Date of Death year is not equal to the tax period year.
Correction Procedures
(1) Compare the return against the screen and correct all coding and transcription errors.
(2) Enter CCC "F" in Field 01CCC, only if a "1" is present in Field 01DTH (Death Indicator) and the Date of Death (Field 01DOD) is during the year the gift was made. Enter the "F" in Field 01CCC when the return will be the final return for a deceased donor.
If the Death Indicator, Field 01DTH, is blank, and CCC "F" is present, check return and attachments (if necessary) for a DOD or a death certificate to confirm the donor died.
If the DOD cannot be determined from the return, an attachment, or from researching INOLE, delete the "1" in Field 01DTH and the "F" in Field 01CCC.
(3) If the DOD is before or after the tax period of the return:
Delete the entries in Fields 01DTH and 01DOD.
Delete CCC "F" from 01CCC, if present.
Error Code 408 - Total Number of Donees/Annual Exclusions
(1) Fields Displayed - Error Code 408 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
01TXP | Tax Period |
01TND | Total Number of Donees |
01FSI | Foreign Spouse Indicator |
0202 | Annual Exclusions |
Invalid Conditions
(1) The Total Number of Donees is blank, but the Annual Exclusions is present.
(2) The Annual Exclusions is blank or zero, but the Total Number of Donees is present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If Schedule A missing, correspond (unless the return can be perfected with information provided).
(3) Field 0202 (Annual Exclusions) is transcribed from Schedule A), Part 4, Line 2. This field is computed by multiplying the number entered in Field 01TND by the Annual Exclusion amount. For tax year 2024 is $18,000. If the gift is less than the Annual Exclusion amount for that tax year, limit the Annual Exclusion to the amount of that gift. See Annual Exclusion amounts for year below:
Tax Year | Annual Exclusion |
|---|---|
2024 | $18,000 |
Tax Year | Basic Exclusion Amount |
|---|---|
2024 | $185.000 |
Compare the screen against the return and correct all transcription errors.
Verify the entry in Field 01TND and 0202.
If the amount in the annual exclusion (Field 0202) is blank or zero, delete entry in the number of donees (Field 01TND).
If there is an amount in Field 0202 which the taxpayer did not use in his computation of tax, follow his intent and delete the amount in Field 0202.
(4) If the amount in Field 0202 is blank or zero and valid, delete any entry in Field 01TND.
(5) Annual Exclusion for Non-Citizen Spouses. The annual exclusion for non-citizen spouses for tax year:
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $185,000 |
If the taxpayer has claimed $185,000 for the Annual Exclusion (Field 0202), accept his entry only if the gift is to a non-citizen spouse.
If the gift is indeed to a non-citizen spouse, verify that a "1" is present in Field 01FSI.
If the gift is not to a non-citizen spouse, delete the "1", if present, in Field 01FSI and send a TPNC 91 "An error was made in computing your, annual exclusion amount. Your Unified Credit/Applicable Credit has been adjusted accordingly".
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
(6) The annual exclusion for a non-citizen spouse as a donee cannot exceed $185,000 for 2024, When a non-citizen spouse is a donee and there are additional donees, the annual exclusion will be computed as in the following example:
If 01TND equals four (one of which is the non-citizen spouse donee) and "1" is in Field 01FSI then Field 0202 (Annual Exclusion) cannot exceed $239,000 (for 2024),
The preceding $239,000 is calculated by allowing $185,000 for 2024 for the non-citizen spouse and $18,000 for each donee. (Field 01TND) is 4 so $185,000 for the Foreign Spouse and $18,000 x 3 regular donees ($54,000), $185,000 +$54,000 = $239,000.
If the amount in Annual Exclusion is less than Taxpayers, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Suspense Corrections
(1) See table below for Suspense corrections :
If | Then |
|---|---|
Taxpayer Replies |
|
No Replies |
|
Error Code 416 - Annual Exclusions
(1) Fields Displayed - Error Code 416 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
01TND | Total Number of Donees |
01FSI | Foreign Spouse Indicator |
0202 | Annual Exclusions |
>>>> | Annual Exclusions (Computer) |
Invalid Conditions
(1) Error Code 416 will generate when the Annual Exclusions is greater than Annual Exclusions (Computer).
Correction Procedures
(1) Get Section 02. Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from Schedule A, Part 4, Line 2. This field is computed by multiplying the number Donees (Field 01TND) by $18,000 for (2024) Limit the amount of Annual Exclusion for that gift to the amount of the gift, for tax year 2024.
Tax Year | Annual Exclusion Amount |
|---|---|
2024 | $18,000 |
Compare the displayed fields with the return and correct all transcription errors.
Note: See IRM 3.12.263.23.45, Section 529(c)(2)(B) Returns, is a Taxpayer makes a Section 529(c) election or GST allocation.
See IRM 3.12.263.23.45.3, GST Exemption Allocation, for error resolution procedures.Verify the entry in Fields 01TND and 0202.
Note: If a trust is named as a donee, allow the number of donees to the number of beneficiaries of the trust. If the number of beneficiaries is not available, allow the number of donees to offset the annual exclusion being taken.
If the amount in annual exclusion (Field 0202) is blank or zero, delete entry in the number of donees (Field 01TND).
If there is an amount in Field 0202 which the taxpayer did not use in his computation of tax, follow his intent and delete that amount from Field 0202.
If the error in Field 0202 causes an underprint, send TPNC 91, TPNC 91 States, "An error was made in computing your annual exclusion amount. Your Unified Credit/Applicable Credit has been adjusted."
Caution: If future interest is involved Field 01TND must be correct before TPNC 98 can be sent. TPNC 98 States - "We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of future interest do not qualify for the exclusion."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the notice review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see "TPNC 90 Math Error Code Job Aid" on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error, and no error on this error code, then ripple that TPNC.
(3) The first $18,000 of gifts of present interest to each donee during the calendar year is subtracted in figuring the amount of the taxable gifts. Verify the annual exclusion claimed against the number of donees. Field 01TND-Total Number of Donees, to decide the correct number of donees.) An underprint will generate in Field 0202 if the taxpayer's figure is greater than the computer's computation (Field 01TND multiplied by $18,000 for 2024). If Field 0202 is blank and valid, delete any entry in Field 01TND.
(4) The "annual exclusion for non-citizen spouse" see table below:
Tax Year | Amount |
|---|---|
2024 | $185,000 |
If the taxpayer has claimed $185,000 for 2024 for the Annual Exclusion (Field 0202), accept his entry only if the gift is to a non-citizen spouse.
If the gift is indeed to a non-citizen spouse, verify that a "1" is present in Field 01FSI.
If the gift is not to a non-citizen spouse, delete the "1", if present, in Field 01FSI and send a TPNC 91 "An error was made in computing your annual exclusion. Your Unified Credit/Applicable Credit has been adjusted accordingly."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see "TPNC 90 Math Error Code Job Aid" on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
(5) All gifts made during the calendar year to a donee are fully excluded under the annual exclusion if all are gifts of present interest and if they total $18,000 or less for 2024.
Note: If a gift is less than $18,000, limit the amount of Annual Exclusion for that gift to the amount of the gift.
(6) For the purpose of the exclusion, there are two kinds of gifts: gifts of a present interest and gifts of a future interest:
Gifts of a present interest qualify for the exclusion. Gifts of a future interest do not.
A gift is a gift of a present interest if the donee can do anything he or they want with the gift or can do anything they want with the income from the property (if only present interest is an income interest exclusion would be limited to value of income interest). (Taxpayer is free to spend or to benefit from the gift when it is received.)
A gift is a gift of a future interest if the donee cannot use until sometime in the future.
Exception: If a gift is given to a minor, the gift and income from the gift may be spent by, or for the benefit of the donee prior to attaining the age of 21, and any amounts remaining will pass to the donee once they have reached age 21, the gift is considered to be a gift of present interest.
If the taxpayer shows that a gift of a future interest has been given and does not claim an exclusion≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
If the taxpayer does not show that a gift of a future interest has been given but does not claim an exclusion≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
If the taxpayer shows that a gift of a future interest has been given, and an exclusion has been taken for that gift, disallow the exclusion and notify the taxpayer with a TPNC 98. TPNC 98 States, "We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of future interest do not qualify for the exclusion."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
For tax years the donee exclusion is as shown below
Tax Year | Donee Exclusion |
|---|---|
2024 | $18,000 |
(7) If there is an indication that this is a joint return, send a TPNC 93. TPNC 93 States "We disallowed the exclusions from your spouse’s gifts attributable to you because joint returns are not permissible when reporting gifts. This makes it necessary for you and your spouse to each file a separate Form. We have adjusted your return accordingly."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
(8) If the amount in Annual Exclusion (Field 0202) is blank or zero, blank the Total Number of Donees (Field 01TND).
(9) If the error in Field 0202 causes an underprint, send TPNC 91. TPNC 91 states An error was made in computing your annual exclusion. Your Unified/Annual exclusion was adjusted accordingly.
If the change is due to a reduction in the gift amount because the incomplete gift was improperly included, then send a TPNC 98. TPNC 98 States, "We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of future interest do not qualify for the exclusion."
If the change is due to lack of taxpayer response to the incomplete gift, state "An error was made in computing your Form 709-NA annual exclusion. Your Unified Credit/Applicable Credit has been adjusted accordingly."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see "TPNC 90 Math Error Code Job Aid" on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Applicable TPNCs
(1)
TPNC 91 States, “An error was made in computing your annual exclusion. Your Unified Credit/Applicable Credit has been adjusted accordingly.”
TPNC 93 States, “We disallowed the exclusions from your spouse’s gifts attributable to you because joint returns are not permissible when reporting gifts. This makes it necessary for you and your spouse to each file a separate Form. We have adjusted your return accordingly.” “We disallowed the exclusions from your spouse’s gifts attributable to you because joint returns are not permissible when reporting gifts. This makes it necessary for you and your spouse to each file a separate Form. We have adjusted your return accordingly.”
TPNC 98 - States, “We disallowed the exclusion amount taken for the gift of future interest as indicated. Gifts of future interest do not qualify for the exclusion.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 420 - Total Included Gifts Amount
(1) Fields Displayed - Error Code 420 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0201 | Total Gifts Current Amount |
02A | Gifts Attributable to Spouse Note: Valid on Form 709 only. |
02B | Balance After Spouse Amount Note: Valid on Form 709 only. |
>>>> | Balance After Spouse Amount (Computer). Note: Valid on Form 709 only. |
02C | Gifts Included from Spouse Note: Valid on Form 709 only. |
02D | Total Gifts Amount Note: Valid on Form 709 only. |
>>>> | Total Gifts Amount (Computer) |
0202 | Annual Exclusions |
>>>> | Annual Exclusions (Computer) |
0203 | Total Included Gifts Amount |
>>>> | Total Included Gifts Amount (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0203 is computed by subtracting Field 0202 (Line 2) from Field 0201 (Line 1).
(3) If the error in Field 0203 causes an underprint, Send TPNC 88, TPNC 88 States, “An error was made in the computation on Schedule A, Part 4, Total Included Amount of Gifts. Your Unified/Applicable Credit has been adjusted accordingly.”.
If the change is due to a reduction in the gift amount because the incomplete gift was improperly included, Send a TPNC 92. TPNC 92 States While an incomplete gift will be reported on Schedule A, it must not be included in the amount of this year's gifts. We have adjusted your return accordingly.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 88 - States, “An error was made in the computation on Schedule A, Part 4, Total Included Amount of Gifts. Your Unified Credit/Applicable Credit has been adjusted accordingly.”
TPNC 91 - ‘States, “An error was made in computing you annual exclusion amount. Your Unified/Applicable Credit has been adjusted accordingly.”
TPNC 92 - ‘States, “While an incomplete gift must be reported on Schedule A, it must not be included in the amount of this year's gifts. We have adjusted your return accordingly.”
TPNC 98 - ‘States, “We disallowed the exclusion amount taken for the Gift of Future Interest as indicated. Gifts of Future Interest do not qualify for the exclusion.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 424 - Marital Deductions
(1) Fields Displayed - Error Code 424 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
01FSI | Foreign Spouse Indicator |
0204 | Gifts of Interest to Spouse Amount |
0205 | Exclusion Attributable to Gifts |
0206 | Marital Deduction |
>>>> | Marital Deduction (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0206 (Marital Deductions) is transcribed from Schedule A, Part 4, Line 6. It is computed by subtracting Field 0205 from Field 0204.
(3) Compare the displayed fields with the return and overlay the screen with the correct entries.
If an entry is present in Field 0206, and no entry is present in Field 0204 or 0205, enter Field 0206 amount in Field 0204.
If there is no entry present in Field 0204, an amount is present in Field 0205, and zero, blank or negative is present in Field 0206, delete Field 0205.
If Fields 0206 or 0208 underprint, check for transcription errors in Fields 0204, 0205, and 0206.
If an error in Field 0206 causes an underprint, send TPNC 42. “We found an error in the computation of the marital deduction on Schedule A.”
(4) If an entry is present for a gift given to a spouse who was not a U.S. citizen at the time of the gift, delete the entry from Field 0204. See IRM 3.12.263.19.2.19, Field 01FSI-Foreign Spouse Indictor, to decide if the spouse was not a U.S. citizen. If the error in Field 0202 causes an underprint, send TPNC 42. TPNC 42 States, “We found an error in the computation of the marital deduction on Schedule A.”
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 42 - States, “We found an error in the computation of the marital deduction on Schedule A.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 428 - Total Deductions
(1) Fields Displayed - Error Code 428 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
0206 | Marital Deductions |
>>>> | Marital Deductions (Computer) |
0207 | Charitable Deductions |
0208 | Total Deductions |
>>>> | Total Deductions (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from Schedule A, Part 4, Line 8. Line 8 is computed by adding Line 6 (Field 0206) and Line 7 (Field 0207).
(3) If an error in Field 0206 causes an underprint, send TPNC, 42. TPNC 42 States, We found an error in the computation of the marital deduction on Schedule A..
(4) If the error in Field 0208 causes an underprint, send TPNC 79. TPNC 79 States, We found an error in the computation on Schedule A, Part 4, Total Deduction Amount.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 42 - States, “We found an error in the computation of the marital deduction on Schedule A.”
TPNC 79 - States, “We found an error in the computation on Schedule A, Part 4, Total Deduction Amount.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 432 - Balance After Deductions
(1) Fields Displayed - Error Code 432 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
0203 | Total Included Gifts Amount |
>>>> | Total Included Gifts Amount (Computer) |
0208 | Total Deductions |
>>>> | Total Deductions (Computer) |
0209 | Balance After Deductions |
>>>> | Balance After Deductions (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0209 is transcribed from (Schedule A, Part 4, Line 9, It is computed by subtracting Field 0208 (Line 8) from Field 0203 (Line 3).
(3) If the error in Field 0209 causes an underprint, send TPNC 80, TPNC - 80 States, "We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts.".
Note: If the taxpayer has figured Field 0209 to a negative amount, which will generate as a positive amount, delete the entry.
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 79 - States, “We found an error in the computation on Schedule A, Part 4, Total Deduction Amount.”
TPNC 80 - States, “We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 436 - Taxable Gifts Amount
(1) Fields Displayed - Error Code 436 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
0209 | Balance After Deductions |
>>>> | Balance After Deductions (Computer) |
0210 | Generation-Skipping Transfer Taxes Payable |
0211 | Taxable Gifts (Balance After GST Amount) |
>>>> | Taxable Gifts (Balance After GST Amount) (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors in Fields 0209, 0210 and 0211 and correct as needed.
(2) Field 0211 Taxable Gifts (Balance After GST) Amount) is transcribed from Schedule A, Part 4, Line 11. It is computed by adding Field 0209 (Line 9) and Field 0210. This amount is carried forward to Page 1, Part 2, Line 1 (Field 0301).
(3) Compare the screen against the return. send TPNC 81. TPNC States, “We found an error in the computation on Schedule A, Part 4, Taxable Gifts.”
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 80 - States, “We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts.”
TPNC 81 - States, “We found an error in the computation on Schedule A, Part 4, Taxable Gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 440 - Current Taxable Gifts
(1) Fields Displayed - Error Code 440 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
0209 | Balance After Deductions |
>>>> | Balance After Deductions (Computer) |
0210 | Generation-Skipping Transfer Taxes Payable |
0211 | Taxable Gifts (Balance After GST Amount) |
>>>> | Taxable Gifts (Balance After GST Amount) (Computer) |
0301 | Current Taxable Gifts |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If Schedule A is missing, correspond (unless the return can be perfected with information provided).
(3) Field 0301 (Current Taxable Gifts) is carried over from Field 0211 (Taxable Gifts (Balance After GST) Amount), which is transcribed from Schedule A, Part 4, Line 11. Field 0301 is computed by adding Field 0209 and Field 0210.
(4) If an error in Field 0301 causes an underprint, send TPNC 10. TPNC 10 States, “We found an error in the computation of your taxable gifts for the current period.”
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 80 - States, “We found an error in the computation on Schedule A, Part 4, when subtracting total deductions from total included amount of gifts.”
TPNC 81 - States, “We found an error in the computation on Schedule A, Part 4, taxable gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Suspense Corrections
(1) If reply is received or a no reply the follow table below:
If | Then |
|---|---|
Reply is received |
|
No reply received |
|
Error Code 444 - Total Taxable Gifts
(1) Fields Displayed - Error Code 444 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
0301 | Current Taxable Gifts |
>>>> | Current Taxable Gifts (Computer) |
0302 | Prior Taxable Gifts |
0303 | Total Taxable Gifts |
>>>> | Total Taxable Gifts (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0303 (Total Taxable Gifts) is transcribed from Page 1, Part 2, Line 3, and is computed by adding Field 0301 and Field 0302.
(3) Be certain the correct tax period is entered in Field 01TXP before making any correction or sending any TPNC. Issue the appropriate TPNC as listed below.
(4) If the error in Field 0303 causes an underprint, send either TPNC 81, TPNC 81 States, “We found an error in the computation on Schedule A, Part 4, Taxable Gifts.”
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 11 - States, “We found an error in the computation on Page 1 Part 2 of your Total Taxable Gifts.”
TPNC 81 - States, “We found an error in the computation on Schedule A, Part 4, taxable gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 448 - Total Tax Taxpayer (current)
(1) Fields Displayed - Error Code 448 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0303 | Total Taxable Gifts |
>>>> | Total Taxable Gifts (Computer) |
0304 | Total Tax Taxpayer (Current) |
>>>> | Total Tax Taxpayer (Current) (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0304 is transcribed from Page 1, Part 2, Line 4. Field 0304 (Line 4) is computed by using the tax rates in effect for the appropriate tax period to calculate the tax on Line 3 (Field 0303).
To decide if this figure was computed using the wrong tax, math verify the tax on the amount for Line 3 for the appropriate period. See Exhibit 3.12.263-6, Table A Unified Tax Rate Schedule (Form 706, Form 709 and Form 709-NA) Issue the appropriate TPNC if the taxpayer's entry on Line 4 was incorrect.
Caution: Do not issue any TPNCs without first checking the tax period.
If either or both Field 0303 or Field 0304 underprinted, math verify the amounts against the return and the tax amount on Page 1, Part 2, Line 3. Line 3 is the total of Lines 1 and 2 (Fields 0301 and 0302). Issue the appropriate TPNC if either of the taxpayer's entries was incorrect.
(3) If the error in Field 0304 caused an underprint, send TPNC 12. TPNC 12 states “We found an error in the computation of tax on Page 1, Part 2, total taxable gifts.”
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see "TPNC 90 Math Error Code Job Aid" on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 11 - States, “We found an error in the computation on Page 1 Part 2 of your Total Taxable Gifts.”
TPNC 12 - States, “We found an error in the computation of tax on Page 1, Part 2, Total Taxable Gifts.”
Note: This is for line 4.
TPNC 81 - States, “We found an error in the computation on Schedule A, Part 4, taxable gifts.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Online Notice Review (NR). This addition will eliminate the need for the Notice Rview tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see "TPNC 90 Math Error Code Job Aid" on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 452 - Total Tax Taxpayer (prior)
(1) Fields Displayed - Error Code 452 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0302 | Prior Taxable Gifts |
0305 | Total Tax Taxpayer (Prior) |
>>>> | Total Tax Taxpayer (Prior) (Computer) |
Invalid Conditions
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) If an error in Field 0305 caused an underprint, send TPNC 13. TPNC 13 States, “We found an error in the computation of tax on Page 1, Part 2. Amount from Schedule B, Total amount of Taxable gifts from prior periods.”
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 13 - States, “We found an error in the computation of tax on Page 1, Part 2. Amount from Schedule B, Total amount of Taxable gifts from prior periods.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 456 - Balance of Gift Tax
(1) Fields Displayed - Error Code 456 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
01TXP | Tax Period |
0304 | Total Tax Taxpayer (Current) |
>>>> | Total Tax Taxpayer (Current) (Computer) |
0305 | Total Tax Taxpayer (Prior) |
>>>> | Total Tax Taxpayer (Prior) (Computer) |
0306 | Balance of Gift Tax |
>>>> | Balance of Gift Tax (Computer) |
03BTV | Balance of Tax Verified |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0306 is transcribed from Page 1, Part 2, Line 6. It is computed by subtracting Field 0305 (Line 5) from Field 0304 (Line 4).
(3) If an error in Field 0306 caused an underprint, send TPNC 69. TPNC 69 States, "We found error in total gift tax computation on Page 1, Part 2, Balance.".
Caution: Be certain the correct tax period is entered in Field 01TXP before making any corrections.
Applicable TPNCs
(1) The following Taxpayer Notice Codes (TPNCs) are valid for this error code.
TPNC 10 - States, “We found an error in the computation of your taxable gifts for the current period.”
TPNC 12 - “States We found an error in the computation of tax on Page 1, Part 2, Total Taxable Gifts.”
TPNC 13 - States, “We found an error in the computation of tax on Page 1, Part 2, amount from Schedule B, Total amount of taxable gifts from prior periods.”
TPNC 69 - States, “We found an error in the total gift tax computation on Page 1, Part 2, Balance.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see "TPNC 90 Math Error Code Job Aid" on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 472 - Total Credits
(1) Fields Displayed - Error Code 472 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
0312 | Other Credits |
>>>> | Other Credits (Computer) |
0313 | Foreign Gift Tax |
0314 | Total Credits |
>>>> | Total Credits (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedure
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0314 is transcribed from Page 1, Part 2, Line 09. It is computed by adding Field 0312 and Field 0313.
(3) If entered correctly and the error does not affect Total Taxes (Field 0317), bring up the underprint.
(4) If a taxpayer error in Field 0314 caused an underprint, TPNC 75. TPNC States, “We found an error in the computation of Page 1, Part 2, Total Credits.”
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 69 - “We found an error in the computation on Page 1, Part 2, Line 6, Balance.”
TPNC 75 - “We found an error in the computation of Page 1, Part 2, Total Credits.”
TPNC 90:
More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see "TPNC 90 Math Error Code Job Aid" on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 476 - Total Gift Tax
(1) Fields Displayed - Error Code 476 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
0306 | Balance of Gift Tax |
>>>> | Balance of Gift Tax (Computer) |
0314 | Total Credits |
>>>> | Total Credits (Computer) |
0315 | Total Gift Tax |
>>>> | Total Gift Tax (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) Field 0315 is transcribed from Page 1, Part 2, Line 10. It is computed by subtracting Field 0314 from Field 0306.
(3) If a taxpayer error in Field 0315 caused an underprint, send TPNC 89. TPNC 89 States, “We found an error in the computation of your total gift tax. We have adjusted your return accordingly.”
If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry.
If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax on Field 0316 of the return, send TPNC 95. TPNC 95 States, "The Unified Credit/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax."
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 75 - States, “We found an error in the computation of 1, Part 2, Total Credits.”
TPNC 89 - States, “We found an error in the computation of your total gift tax. We have adjusted your return accordingly.”
TPNC 95 -States, “The Unified Credit/Applicable Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax.”
TPNC 90:
More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the Notice Review tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 480 - Total Taxes
(1) Fields Displayed - Error Code 480 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
01TXP | Tax Period |
01CCC | Computer Condition Code |
0315 | Total Gift Tax |
>>>> | Total Gift Tax (Computer) |
0316 | Generation-Skipping Transfer Tax |
0317 | Total Taxes |
>>>> | Total Taxes (Computer) |
03MCT | Manually Corrected Tax (ERS Input Only) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from 1, Part 2, Line 12(Field 0317). It is computed by adding Field 0315 and Field 0316.
(3) If either of these lines underprinted, manually verify Line 12 (Field 0317) and enter the correct amount in Field 03MCT.
(4) If the taxpayer's entry(s) on either of these lines caused an underprint, send the TPNC 83. TPNC 83 States, “We found an error in the computation of your total tax amount.”
Caution: Be certain the correct tax period is entered in Field 01TXP before sending any TPNC.
(5) If the taxpayer's figure in Field 0317 is incorrect, manually compute Lines 10, 11, and 12 enter the result in Field 03MCT (Manually Corrected Tax). This field is entered by Error Correction on the dotted portion of 1, Part 2, Line 12, (Field 0317). (It is present when manual computation is required by the examiner.)
(6) If tax is zero, enter $.01 in Field 03MCT.
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 83 - States, “We found an error in the computation of your total tax amount.”
TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type the math error explanation on the notice before mailing to the taxpayer.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 484 - Balance Due/Overpayment
(1) Fields Displayed - Error Code 484 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
0317 | Total Taxes (Line 12) |
>>>> | Total Taxes (Computer) |
0318 | Prior Payments Amount (Line 13) |
03B/R | Balance Due/Overpayment (line 14 Balance Due/Line 15 Overpayment) |
>>>> | Balance Due/Overpayment (Computer) |
Invalid Condition
(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This field is transcribed from 1, Part 2, Line 14 (Field 03B/R for balance due) or 15 (‘Field 03B/R refund amount”). It is computed by subtracting Field 0318 from Field 0317. The computer will underprint with a positive amount for a balance due and a negative amount for an overpayment.
(3) Any penalty or interest included by the taxpayer in Field 03B/R must be subtracted from the amount on Line 14 (Field 03B/R for balance due) or 15 (‘Field 03B/R refund amount”) and the difference entered in Field 03B/R. Also, X Line 14 (Field 03B/R for balance due) or 15 (Field 03B/R refund amount) and edit the difference to the left of the X.
(4) If any of the taxpayer's entry(s) has caused a math error, send TPNC 54. TPNC 54 States, “We found an error in the computation of balance due or overpayment amount.”
Applicable TPNCs
(1) The following TPNCs are valid for this error code.
TPNC 54 - States, “We found an error in the computation of the balance due or overpayment amount.”
TPNC 76 - States, “The amount claimed as prepaid tax with the extension of time to file was incorrect. “
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and TPNC 90 Literals - Copy and Paste Job Aid on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 488 - Refund Code of (1)not present
(1) Fields Displayed - Error Code 488 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
01CCC | Computer Condition Code |
01RFC | Refund Code |
03B/R | Balance Due/Overpayment |
>>>> | Balance Due/Overpayment (Computer) |
Invalid Condition
(1) Error Code 488 will generate when the refund is $100,000,000 or more, and the Refund Code of "1" is not present in Field 01RFC.
Note: See IRM 3.12.263.3.2.2, Refund Returns(45 Day Jeopardy and large dollar refunds, to ensure the refund is issued timely.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) SSPND using AC 341.
(3) Once a manual refund has been issued according to local procedures, input a "1" in Field 01RFC and an "O" in Field 01CCC.See IRM 3.12.263.3.2.2, Refund Returns(45 Day Jeopardy and large dollar refunds, to ensure the refund is issued timely.
(4) If the condition is being resolved and a manual refund will NOT be issued, input a "1" in Field 01RFC only.
Error Code 492 - Total Tax computer is zero but remittance present
(1) Fields Displayed - Error Code 492 will display as follows:
Field Designator on Form 709-NA | Field Name |
|---|---|
NC | Notice Code |
RMIT> | Remittance Amount |
0317 | Total Tax |
>>>> | Total Tax (Computer) |
Invalid Condition
(1) Error Code 492 will generate when the Total Tax (Computer) is zero, but a remittance amount is present.
Correction Procedures
(1) Check for coding and transcription errors and correct as needed.
(2) This error will occur on a non G coded return when the Total Tax Computer is zero or blank, or if the Total Tax (Field 0317) is zero or blank. Total Tax (Computer) is the computer-generated underprint for Page 1, Part 2, Line 12 (Field 0317). It is computed by adding Field 0315 (Total Gift Tax) and Field 0316 (Generation-Skipping Transfer Tax) .
(3) The RMIT> field cannot be changed. It is blank for non-remittance returns and remittance returns processed through the Remittance Processing System. It is a non-correctable field.
(4) If the RMIT was transcribed correctly, CCC "G" is not present, and the Total Tax (Field 0317) was zero ("0") or blank, enter $.01 (one cent) in the Total Tax (Field 0317) to clear Error Code 492.
Applicable TPNC
(1) Only TPNC 90 is valid for this error code. TPNC 90 is a blank notice which contains up to 10 blank lines which are available on the notice for whatever statement is needed. Use TPNC 90 when more than three math errors were made on the return or there is no math error code that meets the error condition on the return.
Note: In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the Online Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices.
Note: If a TPNC 90 is needed, see "TPNC 90 Math Error Code Job Aid" on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc and "TPNC 90 Literals - Copy and Paste Job Aid" on SERP at https://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt
Note: If the underprint is due to a prior error and no additional errors on this error code, then ripple that TPNC.
Error Code 999 - End of Year
(1) Fields Displayed - Error Code 999 will display: with the following information:
Field Designator on Form 709-NA | Field Name |
|---|---|
01TXP | Tax Period |
Section 529(c)(2)(B) Returns (Qualified State Tuition Programs) - Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States
(1) Taxpayers are allowed a contribution to a qualified state tuition plan on behalf of a designated beneficiary. If the taxpayer’s total contributions to a qualified state tuition program on behalf of any individual beneficiary exceed $18,000 for 2024, then for purposes of the annual exclusion the taxpayer may elect under Section 529(c)(2)(B) to treat up to $90,000, Beginning in 2024, of the total contributions as having been made ratably over a five-year period beginning in 2024 for tax year 2024. (These are considered gifts of a present interest.)
The taxpayer is required to report the entire amount of the contribution in excess of $90,000 for the tax year 2024.
The taxpayer makes the election by checking the box B at the top of Schedule A. The election must be made for the calendar year in which the contribution is made.
The taxpayer must also attach an explanation that includes the following:
(1) The total amount contributed per individual beneficiary.(2) The amount for which the election is being made.
(3) The name of the individual for whom the contribution was made.
If the taxpayer makes this election, they are to report only 1/5 (20 percent) of the total contribution(s) (up to $90,000) on the tax year 2024 Form 709-NA. They must then report an additional 20 percent of the total in each of the succeeding four years, unless they are NOT required to file Form 709-NA, other than to report that year’s portion of the election.
Note: IMPORTANT :The taxpayer must report everything over the contribution amount allowed for that year in that first year. Anything over $90,000 for 2024 must be reported that first year.
Correction Procedures
(1) If the taxpayer checked box B (Schedule A) electing to file under Section 529 (c)(2)(B)) and the amounts of the gifts on Schedule A exceed $18,000 per donee (per year), perform the following steps:
Step 1: Search the return or attachments to decide whether the taxpayer reported the entire amount of the contribution over of $90,000 for that tax year (i.e., in this case, tax year 2024).
Step 2: If the taxpayer provided the five-year total of the gift(s) on an attached statement, compare the amount of the gift(s) against the information provided under Part 1 (Schedule A) to ensure the taxpayer properly listed 20 percent of the gift (per donee per year), not to exceed the $18,000 annual exclusion amount for each donee.
Step 3: If the taxpayer completed Schedule A with 20 percent of the five-year total of the gift per donee, continue processing the return.
(2) If no attachment was provided, but box B was checked, and the taxpayer attempted to provide the entire amount of the gift under Part 1 (Schedule A), perform the following steps:
Step 1: Decide the number of donees (i.e., individual beneficiaries) for the gift in question.
Step 2: Divide the total value of the gift by the number of donees.
Step 3: Enter 20 percent of the total of the individual gift in column E (to the right of the individual donee's names (column B), if present.
Step 4: Continue processing the return.
(3) Example: The taxpayer's total 2024 contributions to a qualified state tuition program on behalf of six individual beneficiary gifts equaled $290,000 for a five year period. Using the information provided in this example, perform the following steps:
Compare the amounts under Part 1 (Schedule A), if present, against the information on the attachment(s).
If the taxpayer listed 20 percent of the gift per donee, continue processing return.
If the taxpayer did not list 20 percent of the individual gift per donee:
Divide the $290,000 by six (donees), at $48,333 per gift. To be eligible for a non-taxable return, the annual exclusion amount per gift (i.e., the individual beneficiary's exclusion) cannot exceed $18,000 per donee per year.
Enter 20 percent of the gift, per donee, in column E (Schedule A) to the right of the donee's name (column B), if present. If there was an amount greater than $18,000 in that column, place an "X" to the left of that amount, and enter the 20 percent figure to the left of the "X". Do this for each of the donees to whom this gift is being given.
Continue processing the return.
Reminder: If, in any of the four years following the election, the taxpayer is not required to file a Form 709-NA other than to report that year's portion of the election, they do not need to file or otherwise report that year's portion. In cases involving this example of Section 529(c)(2)(B) returns, the taxpayer filing in tax year 2024 need only file a return for the five-year gift only during the first year (2024). They do not have to file a Form 709-NA the following years unless there are other gifts given for those years.
Estate Tax Inclusion Period (ETIP) Returns
(1) If property that is transferred by gift in a General Systems Theory direct skip must have been includible in the donor’s estate if the donor had died immediately after the transfer (other than by reason of the donor having died within 3 years of making the gift), the direct skip will be treated as having been made at the end of the Estate Tax Inclusion Period (ETIP), rather than at the time it was made. (Section 2642(f) contains details for taxpayers electing to file in this manner.)
(2) If property that is transferred by gift in a General Systems Theory direct-skip would have been includible in the donor’s estate if the donor had died immediately after the transfer (other than by reason of the donor having died within 3 years of making the gift), the direct skip will be treated as having been made at the end of the "Estate Tax Inclusion Period" (ETIP), rather than at the time it was actually made. (Section 2642(f) contains details for taxpayers electing to file in this manner.)
The taxpayer is instructed to report the gift portion of such a transfer on Page 2, Schedule A, Part 1, at the time of the actual transfer.
The taxpayer is instructed to report the General System Theory portion on Page 2, Schedule A, Part 2, but only at the close of the ETIP.
(3) The taxpayer is to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, only to report those transfers where the ETIP closed due to something other than the donor’s death. If the ETIP closed as the result of the donor’s death, the taxpayer is instructed to report the transfer on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.
(4) If the taxpayer is filing this Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, solely to report transfer subject to an ETIP, they are instructed to complete the form as they normally would with the following exceptions:
Write "ETIP" at the top of Page 1.
Complete only Lines 1 through 4, 6, 8, 9, 14 and 15 Tax Year 2024,( lines 1 through 4, 6, 8 and 9 Tax year 2023), of Part I, General Information.
Complete Page 2, Schedule A, Part 2, as explained in the instructions for that schedule.
Complete Column B of Schedule C, Part 1, as explained in the instructions for that schedule.
If the taxpayer is computing the Generation-Skipping Tax (Schedule D schedule C for prior years), they are instructed to complete only Lines 14 and 15 of Schedule A, Part 3. (Taxpayer is also instructed to list here direct skips that are subject only to the GST tax as the result of the termination of any "estate tax inclusion period".)
GST Exemption Allocation
(1) Every donor is allowed a lifetime General Systems Theory exemption or tax. The donor can apply this exemption to transfers made during the donors life on Form 709-NA. The taxpayer is required to attach a statement of explanation or to notate on the return Allocation of Generation Skipping Exemption
(2) On the Form 709-NA the taxpayer first reports all their gifts during the year. In a separate part of the return (Page 5, Part 2), the taxpayer reports the amount of General Systems Theory exemption that they want to allocate to their taxable gifts during the period. The allocation of General Systems Theory exemption only affects the General Systems Theory tax and not the gift tax. The amount allocated does not affect the amount of taxable gifts. The allocation will affect the amount of General Systems Theory tax due with respect to a gift that is subject to General Systems Theory tax.
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (Prior Year 2011 Return)
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (Prior Year 2010 Return)
Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States
Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States (Prior Year Return)
Table A - Unified Tax Rate Schedule (Form 706, Form 709 and Form 709-NA)
(1) Use the following tables for the year in which the decedent died (Estate tax) or for the year in which the gift was made (Gift tax).
Unified Tax Rate Schedule 2013 through 2024Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
$0 | $10,000 | $0 | 18 percent |
10,000 | 20,000 | 1,800 | 20 |
20,000 | 40,000 | 3,800 | 22 |
40,000 | 60,000 | 8,200 | 24 |
60,000 | 80,000 | 13,000 | 26 |
80,000 | 100,000 | 18,200 | 28 |
100,000 | 150,000 | 23,800 | 30 |
150,000 | 250,000 | 38,800 | 32 |
250,000 | 500,000 | 70,800 | 34 |
500,000 | 750,000 | 155,800 | 37 |
750,000 | 1,000,000 | 248,300 | 39 |
1,000,000 | -------------- | 345,800 | 40 |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
$0 | $10,000 | $0 | 18 percent |
10,000 | 20,000 | 1,800 | 20 |
20,000 | 40,000 | 3,800 | 22 |
40,000 | 60,000 | 8,200 | 24 |
60,000 | 80,000 | 13,000 | 26 |
80,000 | 100,000 | 18,200 | 28 |
100,000 | 150,000 | 23,800 | 30 |
150,000 | 250,000 | 38,800 | 32 |
250,000 | 500,000 | 70,800 | 34 |
500,000 | ------------ | 155,800 | 35 |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
$0 | $10,000 | $0 | 18 percent |
10,000 | 20,000 | 1,800 | 20 |
20,000 | 40,000 | 3,800 | 22 |
40,000 | 60,000 | 8,200 | 24 |
60,000 | 80,000 | 13,000 | 26 |
80,000 | 100,000 | 18,200 | 28 |
100,000 | 150,000 | 23,800 | 30 |
150,000 | 250,000 | 38,800 | 32 |
250,000 | 500,000 | 70,800 | 34 |
500,000 | 750,000 | 155,800 | 37 |
750,000 | 1,000,000 | 248,300 | 39 |
1,000,000 | 1,250,000 | 345,800 | 41 |
1,250,000 | 1,500,000 | 448,300 | 43 |
1,500,000 | 2,000,000 | 555,800 | 45 |
2,000,000 | -------------- | 780,800 | 45 |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | -------------- | 780,800 | 46 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | -------------- | 780,800 | 47 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | -------------- | 780,800 | 48 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | -------------- | 780,800 | 49 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | 2,500,000 | 780,800 | 49 percent |
2,500,000 | -------------- | 1,025,800 | 50 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | 2,500,000 | 780,800 | 49 percent |
2,500,000 | 3,000,000 | 1,025,800 | 53 percent |
3,000,000 | 10,000,000 | 1,290,800 | 55 percent |
10,000,000 | 17,184,000 | 5,140,800 | 60 percent |
17,184,000 | --------------- | 9,451,200 | 55 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | 2,500,000 | 780,800 | 49 percent |
2,500,000 | 3,000,000 | 1,025,800 | 53 percent |
3,000,000 | 3,500,000 | 1,290,800 | 57 percent |
3,500,000 | -------------- | 1,575,800 | 60 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | 2,500,000 | 780,800 | 49 percent |
2,500,000 | 3,000,000 | 1,025,800 | 53 percent |
3,000,000 | 3,500,000 | 1,290,800 | 57 percent |
3,500,000 | 4,000,000 | 1,575,800 | 61 percent |
4,000,000 | -------------- | 1,880,800 | 65 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
2,000,000 | 2,500,000 | 780,800 | 49 percent |
2,500,000 | 3,000,000 | 1,025,800 | 53 percent |
3,000,000 | 3,500,000 | 1,290,800 | 57 percent |
3,500,000 | 4,000,000 | 1,575,800 | 61 percent |
4,000,000 | 4,500,000 | 1,880,800 | 65 percent |
4,500,000 | 5,000,000 | 2,205,800 | 69 percent |
5,000,000 | -------------- | 2,550,800 | 70 percent |
Column (A) | Column (B) | Column (C) | Column (D) |
|---|---|---|---|
$0 | $5,000 | $0 | 3 |
5,000 | 10,000 | 150 | 7 |
10,000 | 20,000 | 500 | 11 |
20,000 | 30,000 | 1,600 | 14 |
30,000 | 40,000 | 3,000 | 18 |
40,000 | 50,000 | 4,800 | 22 |
50,000 | 60,000 | 7,000 | 25 |
60,000 | 100,000 | 9,500 | 28 |
100,000 | 250,000 | 20,700 | 30 |
250,000 | 500,000 | 65,700 | 32 |
500,000 | 750,000 | 145,700 | 35 |
750,000 | 1,000,000 | 233,200 | 37 |
1,000,000 | 1,250,000 | 325,700 | 39 |
1,250,000 | 1,500,000 | 423,200 | 42 |
1,500,000 | 2,000,000 | 528,200 | 45 |
2,000,000 | 2,500,000 | 753,200 | 49 |
2,500,000 | 3,000,000 | 998,200 | 53 |
3,000,000 | 3,500,000 | 1,263,200 | 56 |
3,500,000 | 4,000,000 | 1,543,200 | 59 |
4,000,000 | 5,000,000 | 1,838,200 | 63 |
5,000,000 | 6,000,000 | 2,468,200 | 67 |
6,000,000 | 7,000,000 | 3,138,200 | 70 |
7,000,000 | 8,000,000 | 3,838,200 | 73 |
8,000,000 | 10,000,000 | 4,568,200 | 76 |
10,000,000 | ---------------- | 6,088,200 | 77 |
Column A | Column B | Tax on Amount in Column (A) | Rate of Tax on Excess Over Amount in Column (A) |
|---|---|---|---|
--------------- | $5,000 | ---------------- | 2 1/4 |
$5,000 | 10,000 | $112.50 | 5 1/4 |
10,000 | 20,000 | 375 | 8 1/4 |
20,000 | 30,000 | 1,200 | 10 1/2 |
30,000 | 40,000 | 2,250 | 13 1/2 |
40,000 | 50,000 | 3,600 | 16 1/2 |
50,000 | 60,000 | 5,250 | 18 3/4 |
60,000 | 100,000 | 7,125 | 21 |
100,000 | 250,000 | 15,525 | 22 1/2 |
250,000 | 500,000 | 49,275 | 24 |
500,000 | 750,000 | 109,275 | 26 1/4 |
750,000 | 1,000,000 | 174,900 | 27 3/4 |
1,000,000 | 1,250,000 | 244,275 | 29 1/4 |
1,250,000 | 1,500,000 | 317,400 | 31 1/2 |
1,500,000 | 2,000,000 | 396,150 | 33 3/4 |
2,000,000 | 2,500,000 | 564,900 | 36 3/4 |
2,500,000 | 3,000,000 | 748,650 | 39 3/4 |
3,000,000 | 3,500,000 | 947,400 | 42 |
3,500,000 | 4,000,000 | 1,157,400 | 44 1/4 |
4,000,000 | 5,000,000 | 1,378,650 | 47 1/4 |
5,000,000 | 6,000,000 | 1,851,150 | 50 1/4 |
6,000,000 | 7,000,000 | 2,353,650 | 52 1/2 |
7,000,000 | 8,000,000 | 2,878,650 | 54 3/4 |
8,000,000 | 10,000,000 | 3,426,150 | 57 |
10,000,000 | ---------------- | 4,566,150 | 57 3/4 |
Table B - Computing State Death Tax Credit (2004 - 1977)
Column 1 - Adjusted taxable estate equal to or more than | Column 2 - Adjusted taxable estate less than | Column 3 - Credit on amount in Column 1 | Column 4 - Rates of credit on excess over amount in Column 1 Percent |
|---|---|---|---|
$0 | 40,000 | 0 | None |
40,000 | 90,000 | 0 | 0.8 |
90,000 | 140,000 | 400 | 1.6 |
140,000 | 240,000 | 1,200 | 2.4 |
240,000 | 440,000 | 3,600 | 3.2 |
440,000 | 640,000 | 10,000 | 4.0 |
640,000 | 840,000 | 18,000 | 4.8 |
840,000 | 1,040,000 | 27,600 | 5.6 |
1,040,000 | 1,540,000 | 38,800 | 6.4 |
1,540,000 | 2,040,000 | 70,800 | 7.2 |
2,040,000 | 2,540,000 | 106,800 | 8.0 |
2,540,000 | 3,040,000 | 146,800 | 8.8 |
3,040,000 | 3,540,000 | 190,800 | 9.6 |
3,540,000 | 4,040,000 | 238,800 | 10.4 |
4,040,000 | 5,040,000 | 290,800 | 11.2 |
5,040,000 | 6,040,000 | 402,800 | 12.0 |
6,040,000 | 7,040,000 | 522,800 | 12.8 |
7,040,000 | 8,040,000 | 650,800 | 13.6 |
8,040,000 | 9,040,000 | 786,800 | 14.4 |
9,040,000 | 10,040,000 | 930,800 | 15.2 |
10,040,000 | ---------------- | 1,082,800 | 16.0 |
(1) Note: For Tax Year 2002, 75 percent of the amount on Table B; for Tax Year 2003, 50 percent of the amount on Table B; and for Tax Year 2004, 25 percent of the amount on Table B. The State Death Tax Credit was repealed for estates of decedent’s dying after December 31, 2004. In place of the State Death Tax Credit, estates will be allowed a deduction for any state death taxes.
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (Prior Year 2023)
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (Prior Year 2011 Return)
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (Prior Year 2010 Return)
Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States
U.S. Possessions ZIP Codes
City | ZIP Code |
|---|---|
Faga'itua | 96799 |
Leone | 96799 |
Olosega Manua' | 96799 |
Pago Pago | 96799 |
City | Zip Code |
|---|---|
Chuuk | 96942 |
Kosrae | 96944 |
Pohnpei | 96941 |
Yap | 96943 |
City | ZIP Code |
|---|---|
Ebeye | 96970 |
Majuro | 96960 |
City | ZIP Code |
|---|---|
Koror | 96940 |
Palau | 96940 |
City | ZIP Code |
|---|---|
Capitol Hill | 96950 |
Rota | 96951 |
Saipan | 96950 |
Tinian | 96952 |
City | ZIP Code |
|---|---|
Charlotte Amalie | 00802 |
Christiansted | 00820 |
Cruz Bay | 00830 |
Downtown | 00840 |
City | ZIP Code |
|---|---|
Agana | 96910 |
Inarajan | 96917 |
Merizo | 96916 |
Tamuning | 96931 |
Umatac | 96915 |
Yona | 96915 |
City | ZIP Code |
|---|---|
Kingshill | 00850 |
Saint Croix | 00820 |
Saint John | 00830 |
Saint Thomas | 00805 |
Sunny Isle | 00850 |
Veterans Annex | 00820 |
City | ZIP Code |
|---|---|
Adjuntas | 00601 |
Aquada | 00602 |
Aquadilla | 00603 |
Agnes Buenas | 00703 |
Aguirre | 00704 |
Aibonito | 00705 |
Anasco | 00610 |
Angeles | 00611 |
Arecibo | 00612 |
Arroyo | 00714 |
Bajadero | 00616 |
Barceloneta | 00617 |
Barraquitas | 00794 |
Barrio Obrero Station | 00935 |
Bayamon | 00956 |
Boqueron | 00622 |
Cabo Rojo | 00623 |
Caguas | 00725 |
Camuy | 00627 |
Canovanas | 00729 |
Caparra Heights | 00920 |
Carolina | 00982 |
Catano | 00962 |
Cayey | 00736 |
Ceiba | 00735 |
Cerro Gordon | 00754 |
Ciales | 00638 |
Cidra | 00739 |
Coamo | 00769 |
Comerio | 00782 |
Condado | 00907 |
Corozal | 00783 |
Coto Laurel | 00780 |
Culebra | 00775 |
Dorado | 00646 |
Ensenada | 00647 |
Esperanza | 00765 |
Fajardo | 00738 |
Fernandez Juncos | 00936 |
Florida | 00650 |
Fort Buchanan | 00934 |
Garrachales | 00652 |
Guanica | 00653 |
Guayama | 00784 |
Guayanilla | 00656 |
Guaynabo | 00965 |
Gurabo | 00778 |
Hatillo | 00659 |
Hato Rey | 00936 |
Harmingueros | 00660 |
Humacao | 00791 |
Isabela | 00662 |
Jayuya | 00664 |
Juana Diaz | 00795 |
Juncos | 00777 |
La Cumbre | 00926 |
Lajas | 00667 |
Lares | 00669 |
Las Marias | 00670 |
Las Piedras | 00771 |
Levittown | 00949 |
Loiza | 00772 |
Loiza Street Station | 00936 |
Loquillo | 00773 |
Manati | 00674 |
Maricao | 00606 |
Maunabo | 00707 |
Mayaquez | 00680 |
Mercedita | 00715 |
Minillas Center | 00936 |
Moca | 00676 |
Morovis | 00687 |
Naguabo | 00718 |
Narajito | 00719 |
Orocovis | 00720 |
Palmer | 00721 |
Patillas | 00723 |
Penuelas | 00624 |
Ponce | 00731 |
Puerta de Tierra | 00936 |
Puerta Real | 00740 |
Punta Santiago | 00741 |
Quebradillas | 00678 |
Ramey | 00603 |
Rincon | 00677 |
Rio Blanco | 00744 |
Rio Grande | 00721 |
Rio Piedras | 00927 |
Rosario | 00636 |
Sabana Grande | 00637 |
Sabana Hoyos | 00688 |
Sabana Seca | 00952 |
Saint Just | 00978 |
Salinas | 00751 |
San Antonio | 00690 |
San Francisco | 00927 |
San German | 00683 |
San Juan | 00936 |
San Lorenzo | 00754 |
San Sebastian | 00685 |
Santa Isabel | 00757 |
Sanrurce | 00936 |
Toa Alta | 00953 |
Toa Boa | 00949 |
Trujillo Alto | 00976 |
University | 00936 |
Utuado | 00641 |
Vega Alta | 00692 |
Vega Baja (box 1-9049) | 00694 |
Vieques | 00765 |
Villalba | 00766 |
Yabucoa | 00767 |
Yauco | 00698 |
Foreign Country Codes
Foreign Country | Country Code |
|---|---|
Afghanistan | AF |
Akrotiri | AX |
Albania | AL |
Algeria | AG |
Andorra | AN |
Angola | AO |
Anguilla | AV |
Antarctica | AY |
Antigua | AC |
Antigua & Barbuda | AC |
Argentina | AR |
Armenia | AM |
Aruba | AA |
Ascension | SH |
Ashmore & Cartier Islands | AT |
Australia | AS |
Austria | AU |
Azerbaijan | AJ |
Bahamas | BF |
Bahrain | BA |
Baker Island | FQ |
Bangladesh | BG |
Barbados | BB |
Barbuda | AC |
Belarus | BO |
Belgium | BE |
Belize | BH |
Benin (Dahomey) | BN |
Bermuda | BD |
Bhutan | BT |
Bolivia | BL |
Bosnia & Herzegovina | BK |
Botswana | BC |
Bouvet Island | BV |
Brazil | BR |
Brazzaville (Capital of Republic of Congo) | CF |
British Indian Ocean Territory | IO |
British Virgin Islands | VI |
Brunei | BX |
Bulgaria | BU |
Burkina Faso | UV |
Burma | BM |
Burundi | BY |
Cambodia | CB |
Cameroon | CM |
Canada Caution: Do not use the code for Canada if a province name or abbreviation is shown. See IRM 3.12.263.7.7.5 Foreign Address - Canada Only. | CA |
Cape Verde | CV |
Cartier Island | AT |
Cayman Islands | CJ |
Central African Republic | CT |
Chad | CD |
Chile | CI |
China | CH |
Christmas Island | KT |
Clipperton Islands | IP |
Cocos (Keeling) Islands | CK |
Colombia | CO |
Comoros | CN |
Cook Islands | CW |
Coral Sea Islands Territory | CR |
Costa Rica | CS |
Cote d'Ivoire (Ivory Coast) | IV |
Croatia | HR |
Cuba | CU |
Cyprus | CY |
Czech Republic | EZ |
Dem. People's Rep. of Korea (North) | KN |
Dem. Rep. of Congo (Kinshasa) | CG |
Denmark | DA |
Dhekelia | DX |
Djibouti | DJ |
Dominica | DO |
Dominican Republic | DR |
Ecuador | EC |
Egypt | EG |
El Salvador | ES |
Equatorial Guinea | EK |
Eritrea | ER |
Estonia | EN |
Ethiopia | ET |
Falkland Islands (Islas Malvinas) | FK |
Faroe Islands | FO |
Fiji | FJ |
Finland | FI |
France | FR |
French Polynesia | FP |
French Southern & Antarctic Lands | FS |
Gabon | GB |
Gambia | GA |
Georgia | GG |
Germany | GM |
Ghana | GH |
Gibraltar | GI |
Great Britain (United Kingdom) | UK |
Greece | GR |
Greenland | GL |
Grenada | GJ |
Guatemala | GT |
Guernsey | GK |
Guinea | GV |
Guinea Bissau | PU |
Guyana | GY |
Haiti | HA |
Heard Island & McDonald Island | HM |
Holy See | VT |
Honduras | HO |
Hong Kong | HK |
Howland Island | HQ |
Hungary | HU |
Iceland | IC |
India | IN |
Indonesia (Including Bali, Belitung, Flores, Java, Moluccas & Sumatra) | ID |
Iran | IR |
Iraq | IZ |
Ireland | EI |
Isle of Man | IM |
Israel | IS |
Italy | IT |
Jamaica | JM |
Jan Mayen | JN |
Japan | JA |
Jarvis Island | DQ |
Jersey | JE |
Johnston Atoll | JQ |
Jordan | JO |
Kazakhstan | KZ |
Kenya | KE |
Kingman Reef | KQ |
Kiribati | KR |
Kosovo | KV |
Kuwait | KU |
Kyrgyzstan | KG |
Laos | LA |
Latvia | LG |
Lebanon | LE |
Lesotho | LT |
Liberia | LI |
Libya | LY |
Liechtenstein | LS |
Lithuania | LH |
Luxembourg | LU |
Macau | MC |
Macedonia | MK |
Madagascar | MA |
Malawi | MI |
Malaysia | MY |
Maldives | MV |
Mali | ML |
Malta | MT |
Mauritania | MR |
Mayotte | MF |
McDonald Island | HM |
Mexico | MX |
Midway Islands | MQ |
Moldova | MD |
Monaco | MN |
Mongolia | MG |
Montenegro | MJ |
Montserrat | MH |
Morocco | MO |
Mozambique | BM |
Namibia | WA |
Nauru | NR |
Navassa Island | BQ |
Nepal | NP |
Netherlands | NL |
Netherlands Antilles | NT |
New Caledonia | NC |
New Zealand | NZ |
Nicaragua | NU |
Niger | NG |
Nigeria | NI |
Niue | NE |
Norfolk Island | NF |
Norway | NO |
Oman | MU |
Pakistan | PK |
Palmyra Atoll | LQ |
Panama | PM |
Papua New Guinea | PP |
Paracel Islands | PF |
Paraguay | PA |
Peru | PE |
Philippines | RP |
Pitcairn Islands | PC |
Poland | PL |
Portugal | PO |
Qatar | QA |
Republic of Korea (South) | KS |
Republic of Kosovo | KV |
Republic of the Congo | CF |
Republic of Singapore | SN |
Romania | RO |
Russia | RS |
Rwanda | RW |
Saint Barthelemy | TB |
Saint Helena | SH |
Saint Kitts & Nevis | SC |
Saint Lucia | ST |
Saint Martin | RN |
Saint Miquelon | SB |
Saint Pierre | SB |
Saint Vincent & Grenadines | VC |
S Georgia and S Sandwich Islands | SX |
Samoa | WS |
San Marino | SM |
Sao Tome and Principe | TP |
Saudi Arabia | SA |
Scotland | UK |
Senegal | SG |
Serbia | RI |
Seychelles | SE |
Sierra Leone | SL |
Singapore | SN |
Slovakia | LO |
Slovenia | SI |
Solomon Islands | BP |
Somalia | SO |
South Africa | SF |
South Georgia Island & South Sandwich Island | SX |
South Korea | KS |
South Sandwich Island | SX |
Spain | SP |
Spratly Islands | PG |
Sri Lanka | CE |
St. Barthelemy | TB |
St. Helena | SH |
St. Kitts & Nevis | SC |
St. Lucia | ST |
St. Martin | RN |
St. Miquelon | SB |
St. Pierre | SB |
St. Vincent & Grenadines | VC |
Sudan | SU |
Suriname | NS |
Svalbard | SV |
Swaziland | WZ |
Sweden | SW |
Switzerland | SZ |
Syria | SY |
Taiwan | TW |
Tajikistan | TI |
Tanzania | TZ |
Thailand | TH |
The Bahamas | BF |
The Gambia | GA |
The Netherlands | NL |
Timor, East | TT |
Timor Leste | TT |
Togo | TO |
Tokelau | TL |
Tonga | TN |
Trinidad and Tobago | TD |
Tunisia | TS |
Turkey | TU |
Turkmenistan | TX |
Turks & Caicos Islands | TK |
Tuvalu | TV |
Uganda | UG |
Ukraine | UP |
United Arab Emirates | AE |
United Kingdom | UK |
Uruguay | UY |
Uzbekistan | UZ |
Vanuatu | NH |
Venezuela | VE |
Vietnam | VM |
Virgin Islands, British | VI |
Wake Island | WQ |
Wallis and Futuna | WF |
Western Sahara | WI |
Yemen | YM |
Zambia | ZA |
Zimbabwe | ZI |
Province, State and Territory Abbreviations
Australia State | Abbreviation |
|---|---|
Australian Capital Territory | ACT |
New South Wales | NSW |
Northern Territory | NT |
Queensland | QLD |
South Australia | SA |
Tasmania | TAS |
Victoria | VIC |
Western Australia | WA |
Brazil State | Abbreviation |
|---|---|
Acre | AC |
Alagoas | AL |
Amapa | AP |
Amazonas | AM |
Bahia | BA |
Ceara | CE |
Distrito Federal | DF |
Espirito Santo | ES |
Goias | GO |
Maranhao | MA |
Mato Grasso | MT |
Mato Grosso do Sul | MS |
Minas Gerais | MG |
Para | PA |
Paraiba | PB |
Parana | PR |
Pernambuco | PE |
Piaui | PI |
Rio de Janeiro | RJ |
Rio Grande do Norte | RN |
Rio Grande do Sul | RS |
Rondonia | RO |
Roraima | RR |
Santa Catarina | SC |
Sao Paulo | SP |
Sergipe | SE |
Tocantins | TO |
Canada Province/Territory | Abbreviation |
|---|---|
Alberta | AB |
British Columbia | BC |
Manitoba | MB |
New Brunswick | NB |
Newfoundland and Labrador | NL |
Northwest Territories | NT |
Nova Scotia | NS |
Nunavut | NU |
Ontario | ON |
Prince Edward Island | PE |
Quebec | QC |
Saskatchewan | SK |
Yukon | YT |
Cuba Province | Abbreviation |
|---|---|
Camaguey | CG |
Ciego de Avila | CA |
Cienfuegos | CF |
Ciudad de La Habana | CH |
Gramma(Bayamo) | GR |
Guantanamo | GT |
Holguin | HO |
La Habana | HA |
Matanzas | MT |
Municipio Especial Isla de La Juventud | IJ |
Pinar del Rio | PR |
Sancti Spiritus | SS |
Santiago de Cuba | SC |
(Victoria de) Las Tunas | LT |
Villa Clara | VC |
Italy Province | Abbreviation |
|---|---|
Agrigento | AG |
Alessandria | AL |
Ancona | AN |
Aosta/Aoste | AO |
Arezzo | AR |
Ascoli Piceno | AP |
Asti | AT |
Bari | BA |
Belluna | BL |
Beneveto | BN |
Bergamo | BG |
Biella | BI |
Bologna | BO |
Bolzano Bozen | BZ |
Brescia | BS |
Brindisi | BR |
Cagliari | CA |
Caltanssetta | CL |
Campobasso | CB |
Caserta | CE |
Catania | CT |
Catanzaro | CZ |
Chieti | CH |
Como | CO |
Cosenza | CS |
Cremona | CZ |
Crotone | KR |
Cuneo | CV |
Enna | EN |
Ferrara | FE |
Firenze | FI |
Foggia | FG |
Forli | FO |
Frosinone | FR |
Genova | GE |
Gorizia | GO |
Grosseto | GR |
Imperia | IM |
Isernia | IS |
L'Aquila | AQ |
La Spezia | SP |
Latina | LT |
Lecce | LE |
Livorno | LI |
Lodi | LO |
Lucca | LU |
Macerata | MC |
Mantova | MN |
Massa-Carrara | MS |
Matera | MT |
Messina | ME |
Milano | MI |
Modena | MO |
Napoli | NA |
Novara | NO |
Nuoro | NU |
Oristano | OR |
Padova | PD |
Palermo | PA |
Parma | PR |
Pavia | PV |
Perugia | PG |
Pesaro-Urbino | PS |
Pescara | PE |
Piacenza | PC |
Pisa | PI |
Pistoia | PT |
Pordenone | PN |
Potenza | PZ |
Prato | PO |
Ragusa | RG |
Ravenna | RA |
Reggio de Calabria | RC |
Reggio nell'Emilia | RE |
Rieti | RI |
Rimini | RN |
Roma | RM |
Rovigo | RO |
Salerno | SA |
Sassari | SS |
Savona | SV |
Siena | SI |
Siracusa | SR |
Sondrio | SO |
Taranto | TA |
Teramo | TE |
Terni | TR |
Torino | TO |
Trapani | TP |
Trento | TN |
Treviso | TV |
Trieste | TS |
Udine | UD |
Varese | VA |
Venezia | VE |
Verbania | VB |
Vercelli | VC |
Verona | VR |
Vibo Valentia | VV |
Vincenza | VI |
Viterbo | VT |
Mexico State | Abbreviation |
|---|---|
Aquascalientes | AGS |
Baja California Norte | BCN |
Baja California Sur | BCS |
Campeche | CAM |
Chiapas | CHIS |
Chihuahua | CHIH |
Coahuila | COAH |
Colima | COL |
Distrito Federal | DF |
Durango | DGO |
Guanajuato | GTO |
Guerrero | GRO |
Hidalgo | HGO |
Jalisco | JAL |
Mexico | MEX |
Michoacan | MICH |
Morelos | MOR |
Nayarit | NAY |
Nuevo Leon | NL |
Oaxaca | OAX |
Puebla | PUE |
Queretaro | QRO |
Quintana Roo | QROO |
San Luis Potosi | SLP |
Sinaloa | SIN |
Sonora | SON |
Tabasco | TAB |
Tamaulipas | TAMPS |
Tlaxcala | TLAX |
Veracruz | VER |
Yucatan | YUC |
Zacatecas | ZAC |
The Netherlands Province | Abbreviation |
|---|---|
Drenthe | DR |
Flevoland | FLD |
Friesland | FR |
Gelderland | GLD |
Groningen | GN |
Lemburg | LB |
North Brabant | NB |
North Holland | NH |
Overijssel | OV |
South Holland | ZH |
Utrecht | UT |
Zeeland | SLD |
Estate and Gift Tax Facts
Decedents Dying In | Applicable Credit Amount | Basic Exclusion Amount | Basic Exclusion Amount with State Tax Credit |
|---|---|---|---|
2025 | To Be Determined | To Be Determined | To Be Determined |
2024 | $5,389,800 | $13,610,000 | Credit for State Death Taxes Repealed |
2023 | $5,113,800 | $12,920,000 | Credit for State Death Taxes Repealed |
2022 | $4,769,800 | $12,060,000 | Credit for State Death Taxes Repealed |
2021 | $4,625,800 | $11,700,000 | Credit for State Death Taxes Repealed |
2020 | $4,577,800 | $11,580,000 | Credit for State Death Taxes Repealed |
2019 | $4,505,800 | $11,400,000 | Credit for State Death Taxes Repealed |
2018 | $4,417,800 | $11,180,000 | Credit for State Death Taxes Repealed |
2017 | $2,141,800 | $5,490,000 | Credit for State Death Taxes Repealed |
2016 | $2,125,800 | $5,450,000 | Credit for State Death Taxes Repealed |
2015 | $2,117,800 | $5,430,000 | Credit for State Death Taxes Repealed |
2014 | $2,081,800 | $5,340,000 | Credit for State Death Taxes Repealed |
2013 | $2,045,800 | $5,250,000 | Credit for State Death Taxes Repealed |
2012 | $1,772,800 | $5,120,000 | Credit for State Death Taxes Repealed |
2010 and 2011 | $1,730,800 | $5,000,000 | Credit for State Death Taxes Repealed |
2009 | $1,455,800 | $3,500,000 | Credit for State Death Taxes Repealed |
2006 - 2008 | $780,800 | $2,000,000 | Credit for State Death Taxes Repealed |
2005 | $555,800 | $1,500,000 | Credit for State Death Taxes Repealed |
2004 | $555,800 | $1,500,000 | $1,537,097 |
2003 | $345,800 | $1,000,000 | $1,043,456 |
2002 | $345,800 | $1,000,000 | $1,067,664 |
2000 and 2001 | $220,550 | $675,000 | $727,174 |
1999 | $211,300 | $650,000 | $698,485 |
1998 | $202,050 | $625,000 | $670,455 |
1987 - 1997 | $192,800 | $600,000 | $642,424 |
Gifts Made In | Applicable Credit Amount | Basic Exclusion Amount |
|---|---|---|
2025 | To Be Determined | To Be Determined |
2024 | $5,389,800 | $13,610,000 |
2023 | $5,113,800 | $12,920,000 |
2022 | $4,769,800 | $12,060,000 |
2021 | $4,625,800 | $11,700,000 |
2020 | $4,577,800 | $11,580,000 |
2019 | $4,505,800 | $11,400,000 |
2018 | $4,417,800 | $11,180,000 |
2017 | $2,141,800 | $5,490,000 |
2016 | $2,125,800 | $5,450,000 |
2015 | $2,117,800 | $5,430,000 |
2014 | $2,081,800 | $5,340,000 |
2013 | $2,045,800 | $5,250,000 |
2012 | $1,772,800 | $5,120,000 |
2011 | $1,730,800 | $5,000,000 |
2010 | $330,800 | $1,000,000 |
2002 - 2009 | $345,800 | $1,000,000 |
2000 and 2001 | $220,550 | $675,000 |
1999 | $211,300 | $650,000 |
1998 | $202,050 | $625,000 |
1987 - 1997 | $192,800 | $600,000 |
GST Transfers In | Exemption |
|---|---|
2025 | To Be Determined |
2024 | $13,610,000 |
2023 | $12,920,000 |
2022 | $12,060,000 |
2021 | $11,700,000 |
2020 | $11,580,000 |
2019 | $11,400,000 |
2018 | $11,180,000 |
2017 | $5,490,000 |
2016 | $5,450,000 |
2015 | $5,430,000 |
2014 | $5,340,000 |
2013 | $5,250,000 |
2012 | $5,120,000 |
2011 | $5,000,000 |
2010 | No GST tax on direct skips, taxable distributions and taxable terminations in 2010 |
2009 | $3,500,000 |
2006 - 2008 | $2,000,000 |
2004 and 2005 | $1,500,000 |
2003 | $1,120,000 |
2002 | $1,100,000 |
Gifts Made In | Annual Exclusion |
|---|---|
2025 | To Be Determined |
2024 | $18,000 |
2023 | $17,000 |
2022 | $16,000 |
2018 - 2021 | $15,000 |
2013 - 2017 | $14,000 |
2009 - 2012 | $13,000 |
2006 - 2008 | $12,000 |
2002 - 2005 | $11,000 |
1982 - 2001 | $10,000 |
1981 and Prior | $3,000 |
Gifts Made In | Annual Exclusion |
|---|---|
2025 | To Be Determined |
2024 | $185,000 |
2023 | $175,000 |
2022 | $164,000 |
2021 | $159,000 |
2020 | $157,000 |
2019 | $155,000 |
2018 | $152,000 |
2017 | $149,000 |
2016 | $148,000 |
2015 | $147,000 |
2014 | $145,000 |
2013 | $143,000 |
2012 | $139,000 |
2011 | $136,000 |
2010 | $134,000 |
2009 | $133,000 |
2008 | $128,000 |
2007 | $125,000 |
2006 | $120,000 |
2005 | $117,000 |
2004 | $114,000 |
2003 | $112,000 |
2002 | $110,000 |
2001 | $106,000 |
2000 | $103,000 |
1999 | $101.000 |
1998 | $100,000 |
