3.12.13. Employment Tax Returns

(1) Error Resolution will 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. Employees use ERS to correct the errors and use IDRS to research.

(2) Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction.

(3) Once you access a record and it displays on the screen, you must resolve the error by either:

1. Fully correcting the record.

2. Placing the record in suspense until more information is received.

3. Rejecting the record from pipeline processing.

(4) Corrections will include correcting errors in editing or transcribing, or in the case of a taxpayer error, notifying the taxpayer of the error on the return.

(5) This IRM is your main source of information for correcting the record on the screen and the related return. However, you may also find some procedures in IRM 3.12.38, Error Resolution-BMF General Instructions, which has procedures for correcting records on the screen, document control, inventories and management reports within ERS and Rejects.

(1) Authority for these procedures is found in section 6201(a) of the Internal Revenue Code and its corresponding Treasury regulations.

(1) The Directors of Ogden and Kansas City Submission Processing campuses are responsible for monitoring operational performance for the BMF Submission Processing campuses.

(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 duties.

(4) The Team Employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

(1) Program Goals: Correct any errors that are identified using the Error Resolution System (ERS).

(2) Program Reports: System control reports are on the Control-D WebAccess (CTDWA) and a general listing of the reports are located in IRM 3.12.38, Error Resolution, BMF General Instructions.

(3) Program Effectiveness is measured using the following:

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial reviews

(4) Annual Review: Federal Managers Financial Integrity Act (FMFIA)

(1) Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

(1) For Terms, Definitions and Acronyms see Exhibit 3.12.13-33.

(1) The following is a list of related resources:

• Servicewide Electronic Research Program (SERP)

• Submission Processing Design Center (SPDC)

• Integrated Data Retrieval System (IDRS)

(1) The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Error Resolution System (ERS) processing IRMs.

(2) Ogden, Kansas City, and Return Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.

(3) A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.

(4) Text in normal print is in common processes for BMF returns. The text in bold print is form specific and applies to this IRM only.

(1) Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevate through proper channels for executive approval.

(1) The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. 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 start 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 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating with Operations Assistance Requests (OARs).

(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 cannot 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.

• 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.

(1) BMF Identity (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft":

1. SSPND with Action Code 360 to route the return to Planning and Analysis (P&A).

2. Attach Form 4227, Intra-SC Reject or Routing Slip, (or other proper routing slip) with the notation "ID THEFT".

3. Give the entire case to the manager/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.

(1) The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3705(a) gives identification requirements for all IRS employees working tax-related matters.

(2) All 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:

1. 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.

2. 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.

3. 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.

4. 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 an 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 and should give 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 telephone or in-person) their badge identification (ID Card) number on the first contact.

(1) If a return is prior to the date shown in the table, reject the record from ERS:

(2) For non-remittance NMF items-If CC RJECT is in your profile, reject the Record with Action Code 620. If CC RJECT is not in your profile, suspend the record using CC SSPND with Action Code 620.

(3) For the NMF item with payment, follow instructions in IRM 3.12.38, BMF General Instructions, first suspending to Accounting for research with Action Code 343 before finally rejecting from ERS and transferring to NMF or Unidentified, dependent upon instruction from Accounting.

(4) Territory 15, International returns with and without a remittance should be processed using the instructions in IRM 3.12.38, BMF General Instructions.

(1) All records that are assigned an Action Code by the Code and Edit function will be displayed as a Priority I error. These errors and the correction procedures are explained in this section.

(2) If the Action Code is valid, it will be placed in the Suspense Inventory.

(3) If the Action Code is invalid, it will be placed in the Error Inventory.

(1) There are two types of Priority II errors:

• ISRP

• TERMINUS

(1) Any field that does not meet its requirement(s) will be shown as a Priority III error. Some reasons for this type of error are:

1. Non-alphabetical character in an alpha field,

2. Dollar amount exceeds maximum field length allowable,

3. Blank space in a numeric field,

4. Blank in the first position of an alpha field,

5. Non-numeric character in a numeric field, or

6. A required field is blank.

(2) All fields with a Priority III error will be displayed in the order encountered in the record. The Action Code and TPNC will never be displayed as a Priority III error.

(3) When a dollar amount exceeds maximum Field length allowable, process the return as follows:

(1) These errors will be displayed with an Error Code assigned to them for the specific error in ascending numerical order. The screen display will show the Error Code assigned and the Fields needed to make the necessary correction.

(2) The blank "NC" will be displayed for the entry of a TPNC for all Math Error displays. Multiple TPNCs may be entered if you have multiple lines labeled "NC".

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

(4) The "C" Clear Code does not permit any other corrections to the record after it is transmitted to clear the screen. All errors must be resolved by eliminating the error or entering the Clear Code or a TPNC.

(5) If an unworkable situation exists, suspend or reject the document with the appropriate Action Code.

(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, do not send for further CI action.

(3) For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following:

(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 finds 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 found, and there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, then do the following:

1. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.

2. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.

3. Route the copy as shown in the table below.

CI Referral Routing

Ogden	Kansas City
Mail Stop 9001, Criminal Investigation (CI)	Mail Stop S2 9000, Criminal Investigation (CI)

4. Edit 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.

5. Continue processing the return.

(6) If the return fits other criteria (e.g., Frivolous Argument), take proper action.

(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, and Exhibit 3.12.13-38, 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.Frivolous Return Criteria

(3) Do not consider the following returns as frivolous:

• Returns that have only zeros, blanks, or no entries.

• Returns showing "None", "Not Liable", etc.

• Returns showing no evidence of a frivolous argument.

(1) Correspondence Imaging Inventory (CII) is an inventory system for scanning all Accounts Management (AM) receipts (including Form 941c and Form 941-X) into digital images and working the cases from those images.

(2) "CII" returns are shown with "CII Image- Do not correspond for signature" stamped below the signature line or "CII" annotated on the front of the return.

(3) Follow the correspondence instructions below for "CII" returns:CII Return Correspondence Criteria

(1) Form 941(PR), Planilla Para La Declaracion Trimestral del Patrono, and Form 941-SS, Employer's Quarterly Federal Tax Return-Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, U.S. Virgin Islands are filed to report social security and Medicare taxes only. These forms are filed by employers whose principal place of business is in Puerto Rico, and Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, and U.S. Virgin Islands, respectively.

(2) Any Form 941, Form 941(PR), or Form 941-SS return with an address of any U.S. Possession below should be forwarded to OSPC for processing:

(3) Apply the Form 941 line processing procedures contained in IRM 3.12.13 when processing Form 941(PR) and Form 941-SS.

(4) For Form 941(PR) or Form 941-SS, money amounts are not allowable in Fields 0202 (Total Compensation), 02ITW (Amount of Income Tax Withheld), 02QW (Adjustment to Withholding on Revisions prior to 2010), and 02EC (Earned Income Credit) (revisions prior to 2011). If an amount is shown in one of these Fields, it must be deleted.

(1) Certain government agencies are empowered to collect from employers Compensation erroneously not paid to employees (or former employees). The agencies are authorized to disburse these Compensation to the employees concerned and withhold the income taxes and the employee's share of the social security or Medicare taxes. The agencies allowed to take this action are:

• Department of Labor

• General Accounting Office

• Housing and Urban Development

• National Labor Relations Board

(2) The agencies prepare a Form 941 each quarter for the total Compensation collected from employers during that quarter. If no Compensation are collected, "No Liability" returns are to be filed. These returns may be processed as follows:

1. The agency will show the full Compensation on Form 941, line 5a (Rev 2005 and subsequent) and compute the full amount of tax.

2. For errors discovered on or after January 1, 2009, a Form 941-X should be prepared for any adjustment to the taxable social security and/or Medicare Compensation previously reported on Form 941. Repeat the same steps for the Federal Income Tax Withholding amount. The explanation on Form 941-X, should indicate the name of the agency and the Act which authorized them to collect and pay back Compensation. The Form 941-X will be stamped, "Do Not Transmit to SSA".

3. The agency also creates two copies of Form 941-X for each employer involved showing the employer's address and EIN. These Form 941-Xs are sent to the Accounts Management (AM) function servicing the area in which the employer is found. These forms are used to notify the employers of their liability for the employer share of social security and Medicare to make necessary adjustments. If the employer copies of the Form 941-Xs are attached to Form 941, detach and send the Form 941-X to the AM for processing.

(1) Name Control This Field is in the entity section of the return. Each of the four positions must have a letter of the alphabet, a numeric, a hyphen, an ampersand or a blank. The method for determining the name control is found in Document 7071-A, Name Control Job Aid.

(2) Invalid Conditions
The name control Field is invalid if:

1. The first position is not alpha or numeric.

2. The 2nd, 3rd or 4th is not an alpha, numeric, hyphen, ampersand or blank.

3. There are any intervening blanks between characters.

(3) Correction Procedures:
Check coding and transcription.

(1) The EIN is a number assigned by IRS for identification of a business tax account. This Field is beneath the title of the return, or in the Entity Section of the return.

(2) Invalid Conditions:
The EIN is invalid if:

1. It is not numeric.

2. It is less than nine characters.

3. The first two digits are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, 80, or 89.

4. It is all zeros or all nines.

(3) Correction Procedures:
Check the Field with the return.

(1) This Field is shown in the entity section or upper portion of the return. For example, on Form 941, Rev 2005 and subsequent, the tax period is edited above the "Report for this Quarter" box positioned to the right of the entity. It is always shown in "YYYYMM" order (e.g., "202209" for the third quarter of 2022, ending September 30).

(2) Invalid Conditions:
This Field is invalid if:

1. It is not all numeric,

2. It is less than the Automated Data Processing (ADP) date of 196203 or greater than the process date,

3. It is all blank.

(3) Correction Procedures:
Check the return and/or attachments for the correct tax period.

(1) This field is date stamped or edited on the face of the return. It is required on all timely filed returns, if the return is delinquent, amended, or has a CCC "D", "G", "R" or "7". If all the positions in the Field are blank, it would not cause an invalid condition.

(2) Form 941 (Rev 2005 and subsequent) returns processed through SCRIPS will be assigned a received date consisting of the Century Digit of “20” followed by 990909 (20990909), if the entry is missing, or illegible.

(3) Invalid Conditions:
This Field is invalid if:

1. Not in "YYYYMMDD" format.

2. Prior to 19620101.

3. Later than the current processing date, or

4. Not within the valid month, day range of the table below.

5. If processed prior to the ending date of the current quarter.

   Example: Form 941 is received on March 4, 2023, for the first quarter 2023.

(4) Correction Procedures:
Compare the screen display with the return.

(1) This Field is on Form 941, Form 941(PR), or Form 941-SS below last line of page 1 in the center of the bottom margin of the return. Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. See IRM 3.12.13.9 for a description of each of the codes and their use.

(2) Invalid Conditions-This Field is invalid if:

1. The entry is other than "B, C, D, E, F, G, J, M, O, Q, R, S, T, W, X, X, 3, 4 or 7."

   Note: CCC "Z" is invalid and is used with scanned paper returns to cause fallout for ERS correction. See IRM 3.12.13.83, Scanned Paper Returns for correction procedures. Do not delete CCC "Z" until the underlying error condition is addressed.

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

3. CCC "E" and "F" are used together.

4. CCC "E" and "S" are used together.

5. CCC "7" is present and CCC "D" and "R" are present.

6. CCC "4" is present and CCC "R" is present.

(3) Correction Procedures:
Check the screen display with the return.

(1) This Field is on Form 941, Form 941(PR), or Form 941-SS (Rev 2005 and subsequent) in the right margin opposite the end of the line for Part 1.

(2) The Schedule Indicator Code (SIC) is used to notify the computer that the Record of Federal Tax Liability (ROFTL) is blank, incomplete, outside the tolerance or the total tax is ≡ ≡ ≡ ≡ ≡ or less.

(3) Invalid Conditions
This Field will be invalid if it is other than blank, 1, 2, or 3.

(4) Correction Procedures:
Compare the screen display with the return.

(1) This Field is entered on line 1, Form 941, Form 941(PR) or Form 941-SS (Rev 2005 and subsequent) returns. This Field is now required for each quarter a return is filed.

(2) Invalid Condition:
The Field is invalid if it is not all numeric.

(3) Correction Procedures:
Compare the screen display with the return.

(1) This Field is used to indicate that a Form 941, Schedule R, "Allocation Schedule for Aggregate Form 941 Filers" was attached to the Form 941 when filed.

(2) The Schedule R is filed by an individual or entity who has previously filed Form 2678, and is filing one Form 941 return under his own EIN for two or more unrelated parties under IRC 3504.

(3) Valid entries are "R" (active) or blank (inactive).

(4) When Form 941, 941(PR), or 941-SS is filed with a Schedule R attached, Code and Edit will edit an "R" opposite line 7 on the right-hand margin.

(5) Invalid Conditions:
This Field is invalid if any character other than "R" is present.

(6) Correction Procedures:
Compare the screen display with the return.

(1) The Correspondence Received Date (CRD) should be present when returns have been held in Suspense and the reply is received after the Return Due Date.

(2) If a Field error generates due to a previously edited CRD, follow the correction procedures below.

(3) Invalid Conditions:

• Not numeric.

• Less than 8 numerics.

• Not in "YYYYMMDD" format.

• Not in the valid month or day range.

• The same as, or prior to, the return due date.

• Greater than the current date.

(4) Correction Procedures:
Compare the screen display with the return.

(1) This Field is on Form 941, Form 941(PR), and Form 941-SS, under the overpayment line.

(2) This Field is used to indicate whether the taxpayer has elected to treat an overpayment as a credit elect to the next tax period or as a refund. ISRP enters a "2" if the "Refund" box has an entry on a Form 941, Form 941(PR), or Form 941-SS.

(3) Invalid Condition:
This Field is invalid if it is:

1. Not blank, or

2. An entry other than "2".

(4) Correction Procedures:
Compare the screen display and the return.

(1) The Designee check box Field on Form 941, Form 941(PR), and Form 941-SS is on page 2, Part 4 along the left-hand margin. The Field consists of 2 boxes, "YES" and "NO".

(2) If the taxpayer checks the "Yes" box, ISRP or SCRIPS will enter a "1". An entry to both boxes or only the "NO" box is not transcribed.

(3) There are validity checks on the Field, but the Field is not correctable.

(4) Invalid Conditions:
If the value is other than "1" or blank.

(5) Correction Procedures:
Compare the screen display and the return.

(1) The Field is on Form 941, Form 941(PR), or Form 941-SS on page 2 (2005 - 2019) or page 3 (2020 and subsequent) in Part 4 on the right side below the Designee name and phone number.

(2) The Third Party Designee Identifying Number is comprised of any 5 alphas (i.e., "A" to "Z"), numeric (e.g., "0" to "9"), or any combination of, characters chosen at random by the taxpayer or the taxpayer's representative.

(3) The Third Party Designee Identifying Number is only for the tax period of the return on which it appears. On all future filings, the taxpayer can keep the same PIN number or change the PIN number.

(1) The Paid Preparer's Tax Identification Number (PTIN) is at the bottom of page 2 of Form 941 along the right-hand margin.

(2) Data may or may not be present in Field 01PSN.

(3) Valid characters are all blank, all numeric or with the alpha "P" in the first character position followed by eight numeric characters.

(4) Invalid Conditions:
The Field is invalid if:

1. The nine characters are all zeroes or nines.

2. The nine characters are not a "P" followed by 8 numeric characters.

(5) Correction Procedures:
If the PTIN on the return is invalid, do not attempt to correct the return information. Delete Field 01PSN.

(1) The Preparer's EIN is at the bottom of Page 2 (2005 - 2019) or Page 3 (2020 and subsequent), lower right-hand side, above the Preparer's phone number on Form 941, Form 941(PR) or Form 941-SS.

(2) Invalid Conditions:
The Preparer's EIN must be a nine-digit number. This Field is invalid if:

1. The EIN is all zeroes or all nines.

2. The first two digits are invalid for Field 01EIN, See IRM 3.12.13.25.2.

(3) Correction Procedures:
If the Preparer EIN on the return is invalid, do not attempt to correct the information. Delete Field 01PEN.

(1) The Preparer's Telephone Number (PTN) is on page 2 (2005 - 2019) or Page 3 (2020 and subsequent), below Part 5 of Form 941, Form 941(PR), or Form 941-SS.

(2) The Paid Preparer's Telephone Number should be shown as 10 characters. Only numerical characters (e.g., 0 through 9) are valid for this Field.

1. If the Paid Preparer's Telephone Number is incomplete, illegible, or less than 10 digits review the return and attachments. If unable to determine a complete or legible Paid Preparer's Telephone Number, delete the Field from the display screen.

2. If the Paid Preparer's Telephone Number has more than 10 digits, only the first 10 digits will be captured.

(3) Correction Procedures:
Compare the screen display with the return.

(1) This Field is on Form 941, line 2 and shows the total taxable Wages, tips or other compensation before any payroll deductions. The entry must be entered in dollars and cents. This Field does not apply to Form 941(PR) and Form 941-SS.

(2) Invalid Condition:
This Field is invalid if it is not all numeric.

(3) Correction Procedures:
If transcribed incorrectly, enter the correct amount from the return.

(1) This Field is transcribed from Form 941, line 3. This entry on Form 941 is the Total Federal Income Tax Withheld (FIT) from all employees' Compensation, tips, or other taxable compensation. This Field does not apply to Form 941(PR) and Form 941-SS.

(2) The entry must be entered in dollars and cents.

(3) The return line must be positive. Change any negative amount reported on line 3 to a positive figure.

(4) Correction Procedures:
Compare the screen and the return. Correct any transcription errors.

(1) This Field is transcribed from Form 941, Form 941(PR) or Form 941-SS, line 4.

(2) The taxpayer checks the box to indicate that the Compensation are not subject to social security and/or Medicare taxes.

(3) Valid entries are "1" (check mark in the box on line 4) or blank.

(4) If the box is checked, a "1" should appear in Field 0204 and Field 01CCC should indicate a "B".

(5) Invalid Condition:
This Field is in error if the box is not checked on line 4, or blank.

(6) Correction Procedures:
Compare the screen display with the return.

(1) This field shows the reported amount of taxable social security Wages transcribed from the return.

(2) This field is on Forms 941, 941(PR), or 941-SS, line 5a, Column 1.

(3) The field shows the amount of Compensation paid by the employer to the employee(s) who are subject to social security tax. The tax amount includes contributions paid by both the employer and employee.

(4) This entry is always a positive amount.

(5) The entry is always entered in dollars and cents.

(6) Invalid Condition:
This field is in error if it is not all numeric.

(7) Correction Procedures:
Compare the screen display with the entry on the return. If transcribed incorrectly then enter the correct amount on the screen.

(1) This field shows the reported amount of taxable social security Tips transcribed from the return.

(2) This field is on Forms 941, 941(PR), and 941-SS, line 5b, Column 1.

1. Taxable Tips are reported, if applicable, on the Form 941 for each quarter.

2. This field is shown as dollars and cents and is always a positive amount.

(3) Invalid Condition:
This field is in error if it is not all numeric.

(4) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field shows the reported amount of taxable Medicare Compensation and Tips transcribed from the return.

(2) This field is on Form 941, Form 941(PR) or Form 941-SS, line 5c, Column 1. This is the amount of Compensation paid by the employer to the employee(s) who are subject to Medicare tax. The tax includes contributions paid by both the employer and employee.

(3) This entry is entered as dollars and cents.

(4) The entry is always a positive amount.

(5) Invalid Condition:
This field is in error if it is not all numeric.

(6) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) Field 02XMT is transcribed from line 5d, Form 941, Form 941(PR) or Form 941-SS, for tax periods 201303 and subsequent.

(2) This field must be positive.

(3) The field must be in dollar and cents.

(4) Invalid Condition:
This field is in error if it is not all numeric.

(5) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field is transcribed from Form 941, Form 941(PR) or Form 941-SS, line 5e (Revision 2013 and subsequent), line 5d (2012 and prior). This is the total amount of the social security and Medicare taxes for the taxable Compensation and tips paid by the employer to the employee(s).

(2) The field must be positive.

(3) The field must be in dollars and cents.

(4) Invalid Condition:
This field is invalid if the figure is not numeric.

(5) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field is on Form 941, line 5f (2013 and subsequent), line 5e (2012 only).

(2) When an employee doesn't report tips to the employee’s employer, the employer is not liable for its portion of the social security and Medicare taxes on the unreported tips until the IRS makes notice and demand to the employer. The employer, upon receipt of the IRS notice of demand, includes the amount on their next quarterly Form 941.

(3) The field must be positive and valid for periods 2013 and subsequent.

(4) The field must be in dollars and cents.

(5) Invalid Condition:
This field is invalid if the figure is not numeric.

(6) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field is on Form 941, (Rev. April 2010), line 6a. On line 6a, the employer shows the number of qualified employees hired during the quarter indicated on the Form 941, who received their first payroll check from this employer during that quarter.

(2) The field is only applicable to 201006 through 201012 returns.

(3) The entry can't exceed 7 numeric characters.

(4) The entry must be a positive number.

(5) Invalid Condition:
This field is invalid when it is negative or other than numeric.

(6) Correction Procedures:
Compare the screen display to the return.

(1) This field is on Form 941 (Rev. April 2010), line 6b. On line 6b, the employer shows the number of qualified employees (hired after March 18th, 2010) who were paid Compensation during the quarter shown on the return, which qualify to be exempt from the employer’s share of social security taxes.

(2) The field is only applicable to 201006 thru 201012.

(3) The entry can't exceed 7 numeric characters.

(4) The entry must be a positive entry.

(5) Invalid Condition:
This field is invalid when it is negative or other than numeric.

(6) Correction Procedures:
Compare the screen with the return.

(1) This field is located on Form 941, (Rev. April 2010) line 6c. On line 6c, the employer enters the total Compensation earned by the qualified employees for the quarter indicated in the “Report for this quarter of 20xx” box in the upper right-hand corner to compute the 6.2 percent social security tax credit amount.

(2) The field is only applicable to 201006 through 201012 returns.

(3) The entry must be in dollars and cents.

(4) The entry cannot exceed 15 numeric characters.

(5) The entry must be a positive amount.

(6) Invalid Condition:
This field is invalid when it is negative or other than numeric.

(7) Correction Procedures:
Compare the screen display with the return.

(1) This field is located on Form 941, (Rev April 2010), line 6d. Line 6d represents the employer's portion of the social security tax (6.2 percent) on the exempt Compensation paid to qualified employees reported on line 6c. The computed amount is treated as a credit on the return and subtracted from the computed quarterly Federal Withholding, social security and Medicare wage and tips taxes due.

(2) The field is only applicable to 201006 through 201012 returns.

(3) The entry must be in dollars and cents.

(4) The entry cannot exceed 15 numeric characters.

(5) The entry must be a positive amount.

(6) Invalid Condition:
This field is invalid when it is negative or other than numeric.

(7) Correction Procedures:
Compare the screen display against the Form 941, line 6d.

(1) This field is on Form 941, Line 6, 2012 and subsequent (Line 6e, 2011 and prior). The entry represents the total of the Federal Income Tax Withheld, social security and Medicare, and Additional Medicare taxes less the employer's portion of social security taxes on the exempt Compensation paid to qualified employees.

(2) The entry must be in dollars and cents.

(3) The entry can't exceed 15 numeric characters.

(4) The entry must be a positive amount.

(5) Invalid Condition:
This field is invalid when it is other than numeric or negative.

(6) Correction Procedures:
Compare the screen display against the Form 941, line 6e.

(1) The field shows the total of the fractions of cents in the tax computation of the social security Wages and/or tips, and Medicare Compensation reported on line 5a, 5b, and 5c of the return.

(2) This fields entry is on Forms 941, 941(PR), and 941-SS, line 7, 2011 and subsequent, Line 7a (2010 and prior).

(3) The amount may be a positive or negative figure.

(4) The field must be in dollars and cents.

(5) Invalid Condition:
This field is invalid if it is other than numeric.

(6) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field represents the adjustment amount of social security and/or Medicare tax on Sick Pay.

(2) This fields entry is located on Forms 941, 941(PR), and 941-SS, line 8 2011 and subsequent, Line 7b (2010 and prior).

(3) The amount may be a positive or negative figure.

(4) The field must be in dollars and cents.

(5) Invalid Condition:
This field is invalid if it is other than numeric.

(6) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) The entry represents the adjustment amount of social security and/or Medicare tax on Tips or Group Term Life Insurance.

(2) This field is located on Forms 941, 941(PR) and 941-SS, line 9 (2011 and subsequent), Line 7c (2010 and prior).

(3) The amount may be a positive or negative figure.

(4) The field must be in dollars and cents.

(5) Invalid Condition:
This field is invalid if it is other than numeric.

(6) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field shows the reported amount of special adjustment to income tax transcribed from the return.

(2) This field is located on Forms 941, 941(PR) or 941-SS, line 7f (revision 2005 through 2008).

(3) This field is always a positive amount.

(4) The entry is always entered in dollars and cents.

(5) Invalid Condition:
This field is in error if it is not all numeric.

(6) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field shows the reported amount of special adjustment to social security and Medicare tax transcribed from the return.

(2) This field is located on Forms 941, 941(PR) or 941-SS, line 7g (revision 2005 through 2008).

(3) This field is always a positive amount.

(4) The entry is always entered in dollars and cents.

(5) Invalid Condition:
This field is in error if it is not all numeric.

(6) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field represents the net total of all adjustment amounts shown on a Form 941, 941(PR) or 941-SS for periods prior to 201006.

1. For tax period 200812 and prior the field is located on line 7h of Forms 941, 941(PR) and 941-SS, (Rev 2005 through 2008). The entry represents the total of lines 7a through 7g.

2. For tax year 2009 the field is located on line 7d of Forms 941, 941(PR) and 941-SS. The entry represents the total of lines 7a through 7c.

(2) The field may be a positive or negative figure.

(3) The field should be in dollars and cents.

(4) Invalid Condition:
This field is invalid if it is not all numeric.

(5) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly, enter the correct amount from the return.

(1) This field is located on Forms 941, 941(PR), and 941-SS, line 11a (revision 04-2020 and subsequent), or line 11 (revision 2017 through 01-2020).

(2) This amount is carried forward from Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.

(3) The field is entered in dollars and cents and will always be a positive amount.

(4) Invalid Condition:
This field is invalid if it is not all numeric.

(5) Correction Procedures:
Compare the screen display and the return.

(1) This field is located on Forms 941, 941(PR), and 941-SS, Line 8 (2010 and prior), line 10 (2014 through 2016) and on Line 12 (Revision 2017 and subsequent).

(2) This field is always in dollars and cents.

(3) The entry can be a positive or negative figure.

(4) Invalid Condition:
This field is invalid if it is not all numeric.

(5) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly, enter the corrected amount from the return.

(1) This field is located on Forms 941, 941(PR), and 941-SS, line 13a (revision 04-2020 and subsequent), line 13 (revisions 2017 through 01-2020), and line 11 (Revision 2016 and prior).

(2) The entry is the total of the Federal Tax Deposits paid, based upon the quarterly tax liability. The entry may include an overpayment from a prior quarter which is being applied to this return.

(3) The entry is in dollars and cents and is always a positive amount.

(4) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) This field is line 9 on Form 941 (Rev 2005 through 10/2010). This field is not applicable to Forms 941(PR) and 941-SS.

(2) The entry in the field is the total of the Advance Earned Income Credit shown on the W-2s for all employees.

(3) The field is entered in dollars and cents and will always be a positive amount.

(4) Invalid Condition:
This field is invalid if it is not all numeric.

(5) Correction Procedures:
Compare the screen display and the return.

(1) The field is line 12a on Forms 941, 941(PR), and 941-SS, (Rev. 200903 through 201312).

(2) The field displays the amount of COBRA (Consolidated Omnibus Budget Reconciliation Act) premium assistance payments made by the employer for current or unemployed former individuals who are eligible for COBRA health insurance. This assistance applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010 and to premiums paid for up to 15 months.

(3) The field entry is in dollars and cents and is a positive amount.

(4) Invalid Condition:
This field is invalid if it is not blank or all numerical.

(5) Correction Procedures:
Compare the screen display and the return.

(1) The field is located on Forms 941, 941(PR), and 941-SS, line 12b (Rev 200903 through 201312). The field displays the number of individuals who qualify for the COBRA premium assistance payments being reported on the Forms 941, 941(PR), or 941-SS, line 12a (Rev 2009 and subsequent).

(2) If Field 02CEM has a correct entry, Field 02CPM, COBRA Premium Assistance Payment, line 12a, Form 941 (Rev. 2009) must contain a numerical entry.

(3) The field can be blank or numeric, but any entry must be blank, zero, or a positive number.

(4) Invalid Condition: This field is invalid if it is not blank or all numerical.

(5) Correction Procedures: Compare the screen display and the return.

(1) This field is located on Form 941, (Rev April 2010) line 12c. The employer should only complete this field when filing their Form 941 for the second quarter 2010. The employer shows the number of qualified employees paid exempt compensation or tips in the first quarter 2010.

(2) The entry must be no more than 7 numerical characters (e.g., "0" through "9").

(3) The entry must be a positive entry.

(4) Invalid Condition: This field is invalid when it is negative or other than numeric.

(5) Correction Procedures: Compare the screen display against Form 941, line 12c.

(1) This field is located on Form 941, (Rev April 2010) line 12d. The employer completes this line on their second quarter 2010 return to show the amount of Compensation or tips paid to qualified employees in the first quarter of 2010.

(2) The maximum length is 14 numerical characters (e.g., “0” through “9”).

(3) The entry must be in dollars and cents.

(4) The entry must be a positive number.

(5) Invalid Condition:
This field is invalid when it is negative or other than numeric.

(6) Correction Procedures:
Compare the screen display against Form 941 (Rev April 2010), line 12d.

(1) This field is located on Form 941 (Rev. April 2010), line 12e. Line 12e shows the employer’s portion of the social security tax they paid on the qualified employee’s compensation or tips in the first quarter 2010 on Form 941. The tax is taken as a credit against the second quarter 2010 liability shown on the return. The credit amount is computed at 6.2 percent of the wage amount reported on line 12d.

(2) The entry must be in dollars and cents.

(3) The entry cannot exceed 15 numeric characters.

(4) The entry must be a positive number.

(5) Invalid Condition:
This field is invalid when it is negative or other than numeric.

(6) Correction Procedures:
Compare the screen display against Form 941 (Rev. April 2010), line 12e.

(1) The field is located on Forms 941, 941(PR), and 941-SS, line 13 (Rev 2009 through 201312). The field is the combined total of the Federal Tax Deposit amount (Field 02DEP) and the COBRA Premium Assistance Payments amount (Field 02CPM).

(2) Valid field entries are blank, zero, or numerical in dollars and cents.

(3) The field must be a positive field.

(4) Invalid Condition:
This field is invalid if it is not blank or all numerical.

(5) Correction Procedures:
Compare the screen display and the return.

(1) The field is on Forms 941, 941(PR), and 941-SS, lines 14 and 15 (Revision 2009 and subsequent), or Line 12 and 13 (Revision 2008 and prior).

(2) The entry is the total amount of tax due or overpaid, after application of the tax deposits.

(3) The entry can be a positive or negative amount shown in dollars and cents.

(4) Invalid Condition:
This field is invalid if it is not all numeric.

(5) Correction Procedures:
Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

(1) These fields are located on line 16 (Revision 2017 and subsequent) and comprise the Record of Federal Tax Liability (ROFTL).

(2) Each line within the ROFTL represents a month during the tax quarter. The taxpayer enters their tax liability for that month in the quarter on the applicable line. Then, at the end of the tax quarter, the taxpayer computes the total liability for the quarter by adding lines "Tax liability: Month 1," "Tax liability: Month 2," and "Tax liability: Month 3," and showing the computed total on the "Total Liability for Quarter" line.

(3) The amounts are always in dollars and cents.

(4) If the return was scanned by SCRIPS, any negative entry will generate a field error. For returns processed through ISRP, negative amounts are forced to appear as positive amounts.

(5) Invalid Condition:
These fields are invalid if they are not all numeric.

(6) Correction Procedures:
Compare the screen display and the return.

(1) Description - Field 04CON is in the Entity Section of the return.

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

(3) Invalid Conditions - Field 04CON is invalid if any of the following conditions are present:

1. The first position is a % (percent) and the second position is not blank, or

2. The first position is blank, or

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

4. There are two consecutive blanks between significant characters.

(4) Correction Procedures:

1. Correct coding and transcription errors.

(1) Ogden Submission Processing Center (OSPC) will process returns with foreign/ international and U.S. Possession/ Territorial addresses.

(2) The determination of a foreign address is based only on the address of the return.

• A foreign (international) address is any address not in one of the 50 U.S. states, or the District of Columbia.

• All U.S. Possessions/Territories are considered foreign.

Possession/Territory
American Samoa
Federated States of Micronesia
Guam
Marshall Island
The Commonwealth of the Northern Marianna Islands
Palau
Puerto Rico
U.S. Virgin Islands

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

(4) All returns with a foreign address must be shipped to OSPC.

1. SSPND 650.

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

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

(1) A foreign address will contain:

• Street address or P.O. Box

• City or town name

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

• Postal code, if present

• Foreign country

(2) Returns with addresses in the U.S. Possessions/Territories are considered to be a foreign return for processing purposes only and are entered in the same way as domestic addresses.

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

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

2. A ZIP Code must be present for a U.S. Possession/ Territory. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries for the correct ZIP Code.

(1) Description - Field 04FAD is in the Entity Section of the return.

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

• Field 04FAD should not be present on "G" coded short length records.

(2) Invalid Conditions:
Field 04FAD will generate as an error when 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: ISRP will input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

(3) Correction Procedures:

1. Correct all coding and transcription errors.

Foreign Address Correction Procedures

If	Then
Field 04FAD is present.	GTSEC 04. Ensure Field 04CTY has a foreign country code and Field 04ST has a "." (period/space). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. Exception: Use the country code based on the province in Field 04CTY if the foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.13-40, Province/Country Code - Canada Only.
A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands but a province name is present,	Enter the province abbreviation in Field 04CT. See Exhibit 3.12.13-40, Province/Country Code - Canada Only.
A foreign address is not present on the return	1 - Verify the address on the return is not a foreign address. 2 - SSPND 610 3 - Renumber return with domestic DLN.

2. If Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached to the return, compare the name and address information on the Form 8822 or Form 8822-B to the return.

   Note: A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

Change of Address

If	And	Then
Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached,	All the following applies: Mailing address information is the same, No location address is on Form 8822 or Form 8822-B, Line 7, No entry on Form 8822-B, Lines 8 or 9,	Take no action and continue processing.
Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached,	Any of the following applies: Mailing address information is different, Location address is on Form 8822 or Form 8822-B, Line 7, An entry is on Form 8822-B, Lines 8 or 9,	Enter address shown on Form 8822/Form 8822-B in Field 04FAD. Notate "Form 8822 or Form 8822-B detached" on tax return. Detach Form 8822/Form 8822-B and route to Entity Control using Form 4227, Intra-SC Reject or Routing Slip, or follow local procedures. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or FORM 8822-B".

Note: The lead tax examiner must batch all Forms 8822 or Forms 8822-B daily and hand carry to Entity Control for expedite processing.

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

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

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

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

(3) This section will not be present if Field 01CCC has CCC "G".

(4) Invalid Conditions:
This field will be invalid if:

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

2. Any character follows two consecutive blanks, or

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

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

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

(5) Correction Procedures:
Correct coding and transcription errors.

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

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

(3) It is transcribed on the Error Record with no intervening blanks or other characters in the city-state fields.

(4) Invalid Conditions:
This field is invalid if:

1. The first position is blank.

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

3. Any character follows the first two adjoining blanks.

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

5. Foreign country code is not valid or Field 04CTY has "XX".

(5) Correction Procedures:
Correct any coding and transcription errors. Determine if a Major City Code is being used.

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

(2) Invalid Condition:
This field is invalid if it is not one of the State Abbreviations, APO/DPO/FPO codes, or U.S. Possessions shown in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

(3) Correction Procedures:
Correct any coding and transcription errors. For a list of valid State Codes, see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

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

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

(3) Correction Procedures:
Compare the screen display and the return.

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

(2) Invalid Condition:

1. If they are not all numeric, or

2. For tax periods 199303 and prior, or

3. If there is an entry in a field that does not correspond to a day on the calendar (e.g., in day 31 for September).

4. If the entry is a negative entry.

(3) Correction Procedures:
Compare the screen display against the return. Also verify the tax period.

(1) Fields Displayed:Error Code 001 Screen Display

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

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

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

3. "G" Coded and Non - "G" Coded Returns - The processing date is less than two years after the Return Due Date and CCC "W" is present.

(3) Correction Procedures:

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

2. Do not send the returns in the following table to Statute Control for clearance. Instead, do the following:

Statute Control

If

Then

Return is prepared by Compliance (e.g., IRC 6020(b)), Return is secured by Examination/Collections, including TEGE or TEGE Employee Plan (EP) Exam, Return has a Transaction Code (TC) 59X, Return has "ICS" (Integrated Collection System) notated on the face of the return, Return is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133, Expedite Processing Cycle, attached, Return has a stamp indicating a previous clearance by Statute Control within the last 90 days, Return is a 2021 or 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 2021 or 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.

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.

(4) Suspense/Rejects Procedures:

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

2. Statute Control requests a voided record, SSPND with Action Code 640.

(1) Fields Displayed: Error Code 002 Screen Display

(2) Invalid Condition:
EC 002 will generate when the name control mismatched against the National Account Profile (NAP) or Entity Index File (EIF).

(3) 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 ensures 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.

Note: When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the On-Line Entity (OLE) indicators correctly upon transmitting the ERS screen.

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

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

4. Refer to all the following research instructions in this EC before taking any action.

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 using Command Code INOLES to determine the correct Name.

If	Then
The name on the return or attachment matches the name control on INOLES,	Bring up underprint.
The name control on INOLES is different from the Name on the return or attachment,	Research IDRS using Command Code NAMEE/NAMEB for a new EIN.

6. If a new EIN is found, verify the name control using IDRS Command Code (CC) INOLES.

If	Then
The name control on INOLES matches the Name on the return or attachment	1- Ensure the entity information matches the return. 2- Overlay Field 01EIN with the new EIN from NAMEE/NAMEB. Enter the new EIN on the return. When the EIN is changed from the one the taxpayer used, issue Letter 3875C Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return. Note: Do not send Letter 3875C when: • Three or less digits of the EIN are transposed, different or missing, or • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or • INOLES shows the account has been "merged to" or "merged from", or • The TIN on the return is the taxpayer’s SSN (check CC INOLEG).
Multiple EINs are found,	SSPND 320 to Entity Control. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "MULTIPLE EINS".
INOLES shows a "Merge To" (MT) EIN,	Research the "MT" EIN on Command Code INOLES
The "MT" EIN matches the entity on the return or attachment	Enter the "MT" EIN in Field 01EIN and on the return. Note: Do not send Letter 3875C on "merged to" or "merged from" cases.
The "MT" EIN does not match the entity on the return or attachment,	SSPND 320 to Entity Control.

7. If the Name on the return or attachment does not agree with the name control on INOLES or there is an indication of a name change on Form 941, Form 941(PR), or Form 941-SS, research IDRS using Command Code ENMOD for a new name.

If	Then
The name control on ENMOD matches the Name on the return or attachment,	Enter "C" in the Clear Code Field.
The name control on ENMOD or INOLES does not match the Name on the return or attachment,	SSPND 320 to route the return to Entity Control. Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "NO RECORD".

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

If	Then
A pending TC 013 is present,	Enter "C" in the Clear Code Field.
A pending TC 013 is not present,	SSPND 320 to route to Entity Control. Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "REQUEST NAME CHANGE (TC 013)".

(4) Suspense/Rejects Procedures:

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

If	Then
The Entity Assignment Date is past the Return Due Date and received date,	1. GTSEC 01. 2. Enter the Entity Assignment Date in Field 01CRD.
The Entity Assignment Date is not past the Return Due Date	Continue Processing

2. Research IDRS using CC BMFOL to determine if payments posted incorrectly:

If	Then
The payment posted to the wrong EIN,	1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. 2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION RELEASE FREEZE" 3. Write, "FORM 3465 PREPARED" on return to the left of the Entity section. 4. Enter CCC "X" in Field 01CCC.
The payment posted correctly,	1. Enter the correct EIN in Field 01EIN and on the return. 2. Enter "C" in the Clear Code Field
Payment can't be found,	Enter "C" in the Clear Code Field