3.12.38. BMF General Instructions

(1) Returns and documents suspended from normal processing are Rejects. Work may be included in the suspense/rejects inventory for any of the following reasons:

• Correspondence to obtain missing information or attachments

• Numbered incorrectly

• Needs review by another function

• Needs more research

• Needs re-entry due to an incorrect Block Header or a program cut - off

• Unprocessable

• Missing return

• Early filed returns

• Nullified Unpostables

• Preparation of manual refunds, when needed.

(1) Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

(1) The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (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 an 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 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 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 local procedures.

(6) See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

(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 3.12.38-8 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.

(3) Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument:

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

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

(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) The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and help Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections. SP can refer any questionable returns to Exam, unless prohibited by instructions currently found in several IRMs.

(2) Some returns will need special care. If the withholding is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, attach Form 4227 and place in the locally designated basket for Examination, Frivolous Return Program (FRP) for review. Pay particular attention to returns with Form 1099-OID attached.

(1) BMF 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) Correspondence Imaging Inventory (CII) is an inventory system for scanning all Accounts Management (AM) receipts 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" annotation on the front of the return.

(3) Follow the instructions below for processing "CII" returns:

(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 - (send 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 a 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) his or her badge identification (ID Card) number on the first contact.

(1) The LC76440 report is located on Control D and contains the data used to generate the daily review sheets. This report is imported into the CARE Reports Access Database program. Using the Reports menu, the following types of review sheets can be generated:

• Julian Date

• Notice Report

• Dollar Reports

• Employee Report

• Cart Report

• Custom Select Report

(2) The LC76301 report can be found on Control D and contains data showing the before CARE and after CARE status of each return. This report is input into the CARE 2.03 Access Database to generate accuracy reports for each return. The following accuracy reports can be generated:

• Section Accuracy Rates

• Individual Tax Examiner Report Summary

• Team Report Summary

• TPNC Review Report Summary

• TPNC Review Accuracy by Team

• Notice Code Review Totals

• Notice Code Review by Team

• Notice Code Review by Program

• Quality Review Report

(3) The Utility Window is used to specify review begin and end dates. This will allow weekly, monthly or yearly accuracy reports to be generated.

• Local reports are generated and distributed as requested by local management officials.

• HQ reports are generated and distributed as requested by HQ CARE analyst.

(1) Each morning, the applicable Control D reports (LC76440-BMF and LC76441-IMF) should be loaded into the CARE Access database. See IRM 3.12.38.1.13.1, CARE Reports. The daily review/pull listings are then generated and printed.

(2) Using these listings, the returns are then located and made available to the CARE reviewers.

(1) To prepare the return for review, the previously sent TPNCs must be deleted. Take the following steps in the order shown:

1. Enter the complete DLN (including the serial number of the return) from the review sheet using Command Code GTRECQ. Transmit.

2. Enter GTSEC 01. Transmit.

3. Delete all Computer Condition Codes (CCC) present in Field 01CCC (notate the CCC’s deleted as they will be re-entered).

4. Enter CCC "G" in Field 01CCC. Transmit.

5. EC 010 will then display. Delete CCC "G" from Field 01CCC and re-enter any previously deleted CCCs. Transmit.

(2) The return is now ready to be reworked and should be either corrected or a notice(s) sent. Refer to form specific IRMs.

(3) It is important that each return is worked completely. The ERS screen will display the message, "Error Block Completed". If this message does not display, the return has not been closed and will remain in the ERS inventory.

(4) If the return was worked incorrectly by the ERS tax examiner, feedback may be given following local procedures.

(1) At most Submission Processing Centers (SPCs), the carts of documents are retained until:

1. SCRS - the first loop register has been worked and Statistics of Income (SOI) pulled, or three days.

2. ERS - all items in error inventory have been worked.

3. Block-Out-of-Balance (BOB) blocks are pulled from the regular error carts and routed to the BOB resolution function.

   Note: The blocks are returned and placed on separate carts after resolution; they are identified by new work group after resolution.

(2) To maintain effective control, it is imperative that all documents be identified by work group based on the Julian date of processing through the Generalized Mainline Framework (GMF).

(3) Any documents that can’t be sent to Files within the normal 4-5 day period should be maintained in a researchable order by work group, so the documents can be pulled by Files personnel.

(1) Most document requests are processed by the Files function. However, priority charge-out requests will be honored when the blocks are located in Error Correction.

1. Form 2275 or Form 4251 are received for each document to be pulled for other campus functions.

2. Attach the original request to the document being pulled and file the second copy as a substitute for the document.

3. Form 8161 is received as a charge-out for ERS suspense documents and deleted ERS documents.

(1) Some documents will be separately sorted, blocked, and numbered so that they can be easily routed to other campus functions for subsequent actions:

• Federal Unemployment Tax Act (FUTA) Unit - 4010C/4011C/380C

• Entity Control - Returns without Taxpayer Identification Numbers (TINs)

• Document Services - Federal Tax Deposit (FTD) Penalty Assessment Letter 313-C

• Combined Annual Wage Reconciliation (CAWR) Unit - 98C/99C/2057C

• Rejects - Correspondence

(2) Form 813 is routed to Files after the errors are corrected for these documents.

(3) The documents will be routed to the appropriate areas.

(4) All other documents will be routed to Files.

(1) The error and reject register correction systems provide a great deal of flexibility in deciding what registers and inventory listings will be printed each day, and in what sequence.

• Form 6826, SCRS Error/Reject Display Request Card is prepared to select the needed printouts. It is for register processing for all Master Files. Programs that have been converted to ERS cannot be affected by this form. Form 6826 is now PDF fillable and is available on the publishing website.

• The program provides a "default value" that determines what will be printed when no card is input.

(2) Sections I, II, and IV of Form 6826 are used for error registers. Sections III and V are for rejects.

1. The error correction sections are normally prepared in the Error Correction Control Unit and are input to run the GMF-10.

2. The rejects sections may be prepared by the Control Unit, Rejects Unit supervisor, or the lead TE and are input to run the GMF-11.

(1) This card will be prepared when the Correction ABC/Sequence Number (SN) is generated.

1. Examine the Information Run Control Data, from the Error Display Run Control Report GMF 10-40 of the previous day.

2. Enter the Beginning ABC (for the next day) in Section I, of Form 6826.

(1) The Error Display Card is to request the printing of raw and loop error records from the error tape and must be input daily.

1. Each horizontal line on the Error Display Card represents a computer line.

2. A separate line must be completed for each Master File.
   •Circle the appropriate Master File Identification Code number on the Error Display Card (2 for BMF).

(2) A separate line must also be completed, if only certain programs within a Master File are being requested. Use the Program Number field to select specific programs within a Master File, to be printed on the register. Enter the complete Program Number or enter any lead numeric followed by Xs. The program numbers may be entered as follows:

• Leave blank or enter "XXXXX" - All programs within a Master File will print on the error register.

• "NXXXX" - All programs with the same first digit will print, "NNXXX" - will print all program with the same first and second digits, etc.

• "NNNNN" - Only one program will print (for example, 12401).

(3) Use the Raw field to select the raw error records to be printed on the register. This field contains seven positions for year and Julian date (YYYYDDD). A request for loop registers will override the default values which have been set.

1. If error records for one Error SN Julian date, are requested, enter as YYYYDDD in the "From" column and leave the "To" column blank.

2. All error records which have Error SN Julian dates greater than or equal to the first YYYYDDD and less than or equal to the second YYYYDDD will be selected for printing as raw errors.

3. Check the Daily Error Volume Report - GMF 10-43 to determine which Julian dates are on the error file.

(4) Loops, first through fifth - The same criteria for raw errors applies to loop errors.

(5) Subsequent Loop (YYYYDDD Only) - All error records that have Error SN Julian dates less than or equal to the YYYYDDD entered, will print as "sixth loop or over" errors.

(6) Be sure that all records with old Julian dates are printed on the error register.

(7) Valid Error Display Cards will appear on the listing with nothing printed in the last column of the report. The last column of the report does not have a printed title.

(8) Invalid Error Display Cards will appear on the listing with "INVALID" printed in the last column. The Error Display Cards are invalid if any of the following conditions are present:

1. The Master File Identification (ID) Code is not 1, 2, 3, 4, or 5. If the code is invalid, the card will print on the listing for Individual Master File (IMF).

2. The program number entered is not in a valid format.

3. A Julian date is entered for the "TO" column and the "FROM" column is blank.

4. The Julian date is not numeric.

5. The day portion of the Julian date is not 001-366.

(1) This card should be input whenever a Reject Inventory or Aged List is required, or reject loop registers should be printed.

1. If no card is input, only the raw rejects will be printed.

2. If Inventory and Aged Lists and loop registers are always printed on the same day of the week, the same card may be used by the Computer Branch.

(2) Prepare the Reject Display Card as follows:

1. Circle the "RD" for each Reject Display card being prepared.

2. Circle the appropriate Master File. A separate card must be prepared for each SCRS file. (2 = BMF)

3. Enter the program number only if the request applies only to a particular program or group of programs. For a group of programs, enter succeeding X fillers. Other requests with the program number blank may be used to request all remaining items on a Master File.

Example: For example, enter 728XX to request all the EPMF programs or 72830 to restrict the request to a single major program.

4. Circle the "1" for "Print Raw Rejects". If the card is prepared, this position must be circled for each Master File or the raw rejects will not print.

Note: Circle "1" for "Reprint Raw Rejects" if registers have been printed incorrectly and must be reprinted.

5. Circle "1" for "Print Loop" if the loop should be printed on this day. To avoid duplicate registers, the loop is normally not requested until all the previous loop has been input for the designated file.

6. If the Reject Inventory List should be printed on this day, circle a number for "Reject Inventory List". The available sorts for the inventory list are shown in the lower-right corner of the Form 6826.

Caution: Be sure to circle only one number. For instance, if the list should be printed in both Document Locator Number (DLN) and Reject Sequence Number (RSN) order, circle 3, not 1 and 2.

7. To print the Aged List circle one number for "Aged List" using the same code shown on the form.

(1) Prepare an Error Sort Card to request changes to the following conditions:

• The order the error records will print

• The Error Pull List - whether to print or not

• The computer generation of the Alpha Block Control Number and correction record Serial Numbers (ABC/SN) - to generate or not

(2) Generally, the sort requests should not change from day to day. If a request is not input, the computer will default to the last request made.

(3) Each horizontal line on the Error Sort Card represents a computer line. A separate line must be prepared for each Master File. Circle for the appropriate Master File Code as follows:

• 1 = IMF/Individual Retirement Account File (IRAF)

• 2 = BMF

• 3 = Employee Plans Master File (EPMF)

• 5 = Information Returns Processing (IRP)

(4) The Print Sequence field determines whether the error records are printed in transcribed batch sequence or in DLN sequence. Circle the appropriate number on the card for Raw, First, Second and Subsequent Loops.

1. Code 1 - Transcribed Document Locator Sequence. The error registers are printed in the following order: Error Sequence Julian date, Program Number, Batch Number, SC Block Control Number and DLN Serial Number.

2. Code 2 - Files DLN Sequence Within Loop. The error register is printed in Files DLN order within each Error Sequence Julian date within each loop, use this code for raw and loop registers.

3. Code 3 - Files DLN Sequence Without Regard for Loop. The Loop error registers is printed in Files DLN order.

(5) Circle "1" for each register to print an Error Pull List.

(6) Correction ABC/SN - This field determines whether the computer will generate correction record ABC/SN for raw and first loop records. Circle the appropriate number or leave blank if the numbering is not to be generated.

• Code 1 - Raw errors only

• Code 2 - Raw and first loop errors

• Code 3 - Raw and all loops - until the form is revised to show this option, enter the numeric 3 on Form 6826

(7) If the Correction ABC/SN has been computer generated, a computer card must be prepared daily to assign the beginning ABC.

• If a Beginning SC Block Number Card is not input to update the generated ABC, the computer will default to "/22".

• It is recommended that a Beginning SC Block Number Card be input so that the ABCs will not be duplicated from day to day.

• The Beginning Service Center (SC) Block Number is listed on page 3 of the Error Display Run Control Report.

(1) This card is prepared only if the Rejects Unit wishes to change the way that registers are sorted or the way the Current Reject Listing or Pull List is printed.

• Prepare Section V on the back of Form 6826 to establish a standard print format for the Reject Register, Current Reject Listing, and Pull List.

• Once the desired sort is determined, the same card will be used each day by the Computer Branch. No new card is needed unless the Reject function changes procedures.

(1) Complete Form 6826 electronically and follow the steps below to input the IRWorks RF

1. Go to IRS Service Central from the IRS homepage

2. On the main page of IRWorks, click on the smart search button and type in "Batch Processing/Job Scheduling-Unisys" and select "18370-Batch Processing/Job Scheduling-Unisys"

3. On the next screen input the below information:
   Application: GMF SCF Reject Display Error Cards
   Type of Work: Job Run
   Description: GMF SCF Reject Display Error Cards for (enter your site)

   Example: GMF SCF Reject Display Error Cards for Ogden SC

4. After completing the information in the above fields, select "Add to Cart"

5. The next screen is where you will add your Form 6826 SCRS order card by following the steps below:
   Locate the SCRS order card file
   Click on the file and open. This will attach the file to your ticket.

   Caution: Verify Form 6826 is added before moving forward. If the file is not there, go back and add the file.

6. Once you have added Form 6826, click the save button and then checkout.

7. On the next screen, click the clock/calendar button and select today’s date for the order.

8. In the Purpose box, add the following text: "Please follow the attached file for the SCRS order card for (enter your site)".

9. Once you have completed all of the above steps, click on the submit button. Your order ticket is complete.

(1) As new data enters the Submission Processing Center (SPC) computer, the computer performs:

• Validity and consistency checks

• Mathematically verifies taxpayer computations

• Codes the data to assure taxpayer notification of errors

(2) After data for an input document passes all required checks, it is sent to the Martinsburg Computing Center (MCC). This is known as good tape.

(3) If the data for an input document does not pass all the required checks, the record is placed in error status.

(4) The last number on the right side of the Document ID line is a register counter to be used to count the number of errors within a batch of work.

(5) The Error Display Run Control Report, GMF 10-40, is generated daily as a computer summary of the error processing for the day. This report reflects the totals for the:

• Error Register Summary

• Pull List

• Daily Error Volume Report

(6) Three portions of this report are used in preparing Form 6826, Error/Reject Display Request Card. See IRM 3.12.38.2.2.

(1) The Daily Error Volume Report is a listing of volumes of error records in each program on the error tape.

• This report is used to schedule the workload for Error Resolution and to prepare Error Display Requests.

• Review the report when preparing the daily Error Display Card to be sure the correct error Julian dates are being requested.

• If any items are shown with a Program Number of "00000" determine which programs are not recognized by number and follow the procedures in IRM 3.30.126, Control Data Analysis, for updating the Program Number Master List.

(2) The information is provided by Master File in Error Sequence Number by Julian date.

• There is a summary page for each Master File system. It is in the same format as the detail page, except that the word "Summary" is printed on the second print line.

• The last line of the report contains the total volume for all programs within the Master File and Julian date specified.

(1) The Error Register Summary is produced when the error register is printed.

1. GMF 10-42 reflects the count of all the error documents printed on the register for that day.

2. This summary is created by management to maintain a daily count of work in the Error Correction function.

(2) This summary contains totals for each type of error document by Program Number and error status (for example, Raw, 1st Loop, and Advanced Loops).

• The count by loops is based on the Julian dates designated by the Error Display Card.

  Note: The computer does not independently determine how many times a record has appeared on an error register.

(3) The listing also provides the total error documents in error status for all program numbers within a Master File. It is not a comprehensive total of all records on the error tape. Those figures are available on the Daily Error Volume Report.

(1) The Error Correction Control function receives the error register from the Computer Branch normally within half a day after receiving the carts of newly transcribed documents.

• After verifying with the Error Register Summary that the correct registers have been received, the registers are sorted by batch number for association with the documents.

• The control clerk assigns portions of the error register with the related document cart to the various units.

(2) Many SPCs use various local controlling, routing, or sign-out forms prepared by the Error Correction Control function.

(1) Each error register is corrected, transcribed, and re-validated. If the record is still unresolved, a loop error register is printed and worked in the same manner as the original register.

• In some cases, the original register has not been corrected or transcribed and the loop will be identical to the original register.

• The raw registers may be retained and compared to the loop, to help identify program or transcription problems.

(2) In most SPCs, first loop registers are worked directly from the document carts in the same manner as raw.

(3) For second loop, all documents should be pulled from the blocks and associated directly with the individual error registers.

• Be sure to indicate on the Block Header, Form 1332 or Form 813, that the document is being pulled for error loop.

• Be sure that old error records do not remain in the inventory for an extended period.

  Exception: Information Returns Processing (IRP)

(4) All errors should be corrected or rejected within three weeks of the Error Sequence Julian date.

(1) The Error Pull List, GMF 10-42 is used as an aid for locating source documents for error register items. It is printed in the same format as the error registers.

(2) The list is printed for the loop in which the documents will be pulled from the block, for association with the register.

• It is printed for raw errors, first loop, second loop, or subsequent loops.

• The listing is used as a check list as the documents are pulled.

(3) The Error Pull List Summary may be used to assist in scheduling the resources needed to pull documents.

(1) Corrected error registers are released to the control function as the pages are completed by Tax Examiners and/or Quality Review. They are batched and routed to ISRP throughout the workday until the daily cut-off.

(2) Each block of registers must have a correction alpha block control (ABC) and each corrected register requires a serial number. If the ABC is generated and is to be transcribed:

• It must be underlined for the first record of the register block. An ABC sticker must be used, if the ABC is not generated or is not to be transcribed. The sticker will take priority over the generated ABC.

• If the Serial Number (SN) is not generated, an SN must be stamped or written above and to the right of the "@@" signs. If the SN is generated, but is not to be transcribed, the SN must be stamped (or written) above the generated number. (The generated SN will not be lined through in this case.)

(3) If a record on the error register is not to be corrected at all for that day, the SN must not be stamped or written onto the register for that record. In addition, if a generated SN is present, it must be lined through. The absence of any SN or the presence of a lined through SN will indicate to ISRP not to transcribe any correction data for that record.

(4) The error registers are returned to Error Correction after transcription. They may be destroyed after verification that no unusual problems have occurred on the subsequent loop.

(1) Each reject register must be associated with the source document. The specific procedures for pulling and associating the documents are determined by SPC management.

(1) The Reject Inventory List, GMF 11-43 is a listing of all items in the reject inventory as of date of the listing. It can be sorted by any of the following:

• Document Locator Number (DLN)

• Reject Sequence Number (RSN)

• EIN

(2) The inventory list should be generated at least once a week as a research tool for items in rejects.

(3) Retain this list for at least one year.

(4) The Reject Display Card is used to request the inventory list and select the sequence(s) for the printed list.

(1) The Reject Pull List, GMF 11-44 is a list of items in the reject inventory and is printed upon request. The list is always printed in the same sequence as the reject register. If the registers are sorted by source, the headings will show the registers as:

• From Errors

• From Raw Input

• From UNP

• From BOB

(2) Use the Reject Sort Card to request the Pull List to designate whether the registers will be sorted by source.

(3) As the document is rejected, it may be pulled by:

• Files,

• Error Correction Cycle Control Unit,

• Reject Control Unit, or

• Each tax examiner.

(4) The documents may be pulled from the reject register or from the Pull List.

Note: Each document must be charged out, by indicating on Form 1332 or Form 813 that the document is being sent to Rejects.

(1) Upon receipt of the documents and registers, the Reject Control Clerk will compare document and register for correct association:

• Make sure that all documents are received or noted as missing.

• Sort the various types of reject cases.

(2) Route the work to the applicable functions within the unit. The following cases should be worked on a priority basis:

• Non-correspondence returns for which refund interest may be payable.

• Subsequent payment documents (Document Codes 17, 18, or 19, TC 670).

(3) Some reject registers will be received without documents.

• Remittance Processing System (RPS) TC 610 documents are pulled by Error Correction and routed separately to Rejects.

• Service Center Deletes have already been pulled by Data Control in Accounting.

• Missing document registers should be maintained in a missing suspense file.

Note: Verify the DLN and alpha with Data Control and code the register with Action Code 2-R.

(1) Each corrected reject record is subject to the normal validity checks just as any error record.

• The record becomes a reject loop if the correction fails to clear to "good tape" or delete from the reject file.

• Each time the register is printed, every record in loop status is re-displayed.

• A reject loop record can be returned to a regular reject status with Action Code "9". This will prevent the record from reprinting each time.

(2) Reject loop records are part of the reject inventory and will print on the Reject Inventory List, Reject Aged List, and Reject Disposition List. Corrected loop records do not print on the Correction Verification List

• Any action that is valid on a reject register is also valid on a reject loop register.

• It is not necessary to re-reject the record before deleting it with Action Code 2.

(3) Reject loop registers must be associated with the documents the same way as raw rejects.

• Separate Reject Pull Lists may be requested for reject first loop or any subsequent loop.

• If the corrected raw reject documents were sent to Files, the first loop pull list should be sent with the registers to the Files Cycle Control function.

(4) Reject loop registers should be printed at least once a week but may be printed as often as daily. As Program Completion Dates (PCD) approach, the loop registers for those programs should be requested more than once a week.

Note: Loop registers may be requested by individual program number or by Master File Tax Code (MFT).

(5) Use the Reject Display Card to request printing of the loop.

(6) Use the Reject Sort Card to determine the print sequence and to request the pull list.

(7) If a document reappears on the loop register more than four cycles and it is not due to a programming issue, coordinate with your Lead/Manager, at their discretion, to:

• Ensure accurate input through Data, or

• Re-input the document with a Form 3893 and put an Action Code 2-R on the register, or

• Cancel a zero balance return to files with an Action Code 2-D.

(1) The Reject Register Summary, GMF 11-45 lists all programs and categories of reject registers for the day and is:

• Used to ensure that all registers have been received.

• Used to assist in work assignments of resource allocation.

(1) Batch the completed reject registers for data transcription as follows:

1. Separate the documents and route to Files or other holding area as determined by SPC management,

2. Sort the registers into raw and loop, by Master File,

3. Separate the corrected from the deleted register, and

4. Group into blocks of 100 or fewer registers.

(2) Assign a sequential Serial Number to each register.

• Enter the serial number immediately above the Reject Sequence Number.

• Number the registers consecutively, beginning with 00.

(3) Enter an alpha sticker on the top-left corner of the first document in each block. Prepare a transmittal to ISRP according to local procedures.

(4) The registers are returned after transcription and matched against the Reject Correction Verification List.

• Deleted registers are filed and retained for one year.

• Corrected raw reject registers are retained for four months.

• Corrected loop reject registers may be destroyed.

(1) The Current Reject Listing, GMF 11-46 is a daily list of all items added to reject inventory on that date.

• The list may be printed in DLN or RSN order or both. Use the Reject Sort Card to request the sort.

• Items added and removed from the inventory during the same week will not appear on the Reject Inventory List. These items can only be researched on the Current Reject Listing.

(1) The Reject Correction Verification List, GMF 11-48 is printed in correction block and Serial Number sequence for easy association with the reject registers returned from transcription.

• It contains an entry for each reject correction record, which either failed to match to a reject document by RSN or matched to a previously "non-corrected" reject.

• Reject loop corrections are not printed on this listing and require no verification because "no match" would print as a subsequent loop.

• This listing matches the order in which the corrected registers were transcribed.

• Compare each block of returned registers with the list to ensure that all corrections were transcribed.

• Corrected items identified as "Valid" or "Invalid" require no other action.

• If the item is still in the reject inventory, a loop register will be printed.

• Deleted items (Code "2-D" or "2-R") should be further checked against the Reject Disposition List.

(2) The following registers should be pulled from the block for re-transcription or, if necessary, to be re-worked:

1. Any register with a corrected SN that was not transcribed.

2. Any register identified as "No Match".

3. Any register identified as "Dup RSN". If the two corrections are input for the same SN, both will come out as "Dup RSN", unless one also had an incorrect Format Code.

(3) Check the Summary and reconcile the total count with the number of registers processed.

(4) Retain the Correction Verification List as an index to the corrected registers for at least one year.

(5) Items identified as "Invalid" will always loop. Some of the reasons for "Invalid" corrections are as follows:

• Invalid Action Code

• Invalid SN

• Invalid Action Code for the section being corrected

• Invalid data for the Action Code

• Action Code "2" not followed by a Disposition Code

• Disposition Code "N" does not contain the required section

• Action Codes "0", "1", "2", "7", or "9" used with other Action Codes

• SNs transcribed in the wrong sequence

(1) The Reject Disposition List, GMF 11-47 is used to research rejects that have already matched corrections input.

(2) This listing is printed in RSN sequence and includes all corrected rejects for that date, both raw and loop.

(3) Each entry includes a literal indicating the disposition of the document, or in the case of renumbered documents, includes the new DLN.

1. Good - Valid correction sent the document to good tape.

2. Loop - The correction was invalid, or a valid correction failed to resolve all reject conditions.

3. Re - entry Action Code "2" and Disposition Code "R".
   Check off each re-entry document and mark the date as it is released to Batching.

4. Re-Reject-Action Code "9".

5. Void-Action Code "2" and Disposition Code "D".
   These items should be checked against returned reject registers to ensure that the correct code was entered.

6. Renumbered Documents-Action Code "2" and Disposition Code "N".

(4) The new DLN must be verified with the document before release. Verify by comparing with the new DLN on the Disposition List, GMF 11-47 or on the New DLN Record List, SCF 11-48.

(5) Retain the Disposition List as a reference for at least one year, so that corrected reject registers can be located.

(6) The correction ABC and serial number are shown on the Disposition List.

(1) Pull from the carts of documents received from ISRP for that day, those individual documents shown on the New Suspense List as suspended by Code and Edit.

1. Replace each document removed from its original block with the original copy of its associated charge-out.

2. Attach the remaining copy of the charge-out to the removed document.

3. Some SPCs use a laser printed Form 8161.

4. If the document is missing, notify your supervisor for recommendation on other searching.

5. If unable to locate the document, indicate on Form 8161

6. Mark the document ID on the New Suspense List as missing.

7. Date and initial your entry on the New Suspense List.

(2) Pull from the carts of documents received from ISRP for previous days, those individual documents shown on the New Suspense List as suspended by Error Correction.

1. Replace each document removed from its original block with the original copy of its associated charge-out.

2. Attach copy of the charge-out to the removed document.

(3) Ensure that all source documents for each record shown by the New Suspense List to be received from Unpostable Resolution have actually been received.

1. Associate the charge-outs with the unpostable documents.

2. Forward the original of the charge-out to Files for all unpostable documents received from Unpostable Resolution. Attach the remaining copies to the unpostable document.

(4) Ensure that the documents for all entries not marked missing, on the Suspense List, are present.

(5) Ensure that charge outs for all entries on the New Suspense List including those marked as missing are present.

(6) The charge outs for the records on the New Suspense List will have the literal "SUSPENSE".

(1) Documents processed through Service Center Recognition/Image Processing System (SCRIPS) will be received in ERS without staples and sorted into "Perfect" (Documents without attachments) and "Imperfect" (Documents with attachments and/or envelopes).

(2) Pull from the carts of documents received from SCRIPS for that day, those individual documents shown on the New Suspense List as suspended by Code and Edit. Replace each document removed from its original block with the original copy of its associated charge-out.

(3) When pulling documents from a "Perfect" (documents with no attachments) truck, ensure that all pages are pulled (page 1, 2 and/or Schedule B)

(4) When pulling documents from an "Imperfect" (Documents with attachments and/or envelopes) truck:

• Check upper right corner for a seven-digit sequence number.

• Go to colored folder at the back of the gusset and pull the corresponding attachments.

• Staple attachments to return before routing.

(5) Pull from the carts of documents received from SCRIPS for previous days, those individual documents shown on the New Suspense List as suspended by Error Correction.

1. Replace each document removed from its original block with the original copy of its associated charge-out. Follow instructions in (2) above for "Imperfect" returns

2. Attach copy of the charge-out to the removed document.

(6) Ensure that the documents for all entries not marked missing, on the Suspense List, are present.

(7) Ensure that charge-outs for all entries on the New Suspense List including those marked as missing are present.

(8) The charge-outs for the records on the New Suspense List will have the literal "SUSPENSE".

(1) The instructions in this section for routing and filing refer to several different suspense files. These files will be maintained separately or combined in a single ERS suspense file. The ERS automated control system will be easier to maintain by using a single ERS suspense file.

(2) The Action Code printed on the charge-out indicates the disposition of the document. Form 8161 stays with the document for routing and/or history.

(3) Action Code 21X, 225 and 226 - Correspondence:

1. If the correspondence has already been issued, place the document and charge-out in the correspondence suspense file in DLN order.

2. If the correspondence has not yet been issued, issue the correspondence, then place the document and charge-out in the suspense file. If the correspondence cannot be prepared immediately, place one copy of the charge-out in the suspense file to preserve a research trail.

(4) Action Codes 331 and 332 - Criminal Investigation Review:

1. Place the documents and charge-outs in the folder or basket for review by Criminal Investigation.

2. If the documents will leave the immediate work area, detach a copy of the charge-out and place in a Criminal Investigation suspense file.

(5) Action Code 370 - Examination Review:

1. Place the documents and charge-out in the folder or basket for review by Examination.

2. If the documents will leave the immediate work area, detach a copy of the charge-out and place in an Examination suspense file.

(6) Action Codes 310, 320, 333 through 337, 34X, 360 - Suspense to Other Functions:

1. Use the second copy of the charge-out as a routing slip to the designated function at the campus.

2. Detach a copy of the charge-out and place in a suspense folder for the designated function in DLN order.

3. Prepare Form 4227 or local routing control and route the documents according to local procedures.

(7) Action Codes 351, 410, 510, 6XX, 700, 900 - Workable Suspense:

1. Associate the document with the current Workable Suspense Inventory report.

2. If required by local procedures, route to the Tax Examiner designated to work the cases for the specified Action Code.

(8) Action Codes 352 through 355 - Suspense:

1. If the appropriate CCs has already been input by an Error Correction Examiner, place the document and charge-out in the file designated for suspense in DLN order.

2. If transcript research has not been prepared, input the appropriate other CC(s), then place in the suspense file.

(9) Action Codes 420 through 490 - Management Suspense:

1. Place the documents in a suspense file for management suspense and system problems.

2. The file should be maintained in DLN order unless otherwise instructed.

(10) Action Codes 511 through 515 - Missing Documents:

1. If the document is not available, place a copy of the charge-out in the missing document suspense in DLN order. The first and second copies of the charge-out are used to initiate a special search.

2. If the document is attached for Action Codes 511-514, input CC ACTVT and route the document and charge-out for association with the Workable Suspense Inventory report on the following day.

(1) This report lists each record that is deleted from ERS. It is printed each day and contains the following:

(2) For each rejected record, there is a charge-out, with the literal "REJECT".

Note: Make sure that you have a document and charge-out for each entry on the Rejected Records List.

(3) Route the documents according to the Action Code shown on the listing.

(4) Action Code 610 or 611 - Renumber.

1. After verifying that the same DLN is shown on the New DLN Summary as on the document, route the documents to Batching with the new Form 813 or Form 1332.

2. Action Code 611 items that show a literal should be routed to Accounting.

(5) Action Code 620 - route the documents to the Automated Non-Master File (ANMF) function in Accounting.

(6) Action Code 630 - routed to Batching for re-input after verifying that Form 3893 has been prepared for each block DLN.

Note: Occasionally, Action Code 630 is entered for non-re-input items where subsequent manual Service Center Control File (SCCF) adjustments will be prepared.

(7) Action Code 640 - indicates documents that have been voided.

• Route campus initiated documents to the originator.

• Otherwise, route to files unless other routing instructions are attached to the return.

(8) Action Code 650 - Route International documents to the Ogden Submission Processing Center (OSPC) per local procedures.

(9) Action Code 660 - Data Control Delete.

Route to Data Controls if not already sent

(10) Action Code 670 - Missing documents.

• Attach all documentation and research to the approved Form 6752 and retain in the closed missing documents file

• A separate copy of Form 6752 is routed with Form 8161 (Charge-out) to Files

(11) Keep the Rejected Records List for one year as a reference.

(1) This section of the manual lists the procedures that are to be followed for loose documents.

(2) A loose document is any document, form, or letter that was detached or cannot be associated with other related forms.

(3) When a loose document is found, check the inventory to see if the case is in SCRS or ERS.

(1) This section of the manual lists the procedures that are to be followed for the disposition of ERS records and documents. Information in this section includes the following:

• Assigning Action Codes to re-suspend records

• Use of the suspense charge-out by Tax Examiners

(1) If the primary and/or secondary name(s) exceed the 35 - character/space limit, use the table to correctly reduce the taxpayer’s name:

(1) According to postal regulations, mail will be delivered to the last address immediately preceding the city, state and ZIP code. A Post Office (PO) Box will always be the mailing address, if present. For trusts and estates only, if the taxpayer indicates the street address is the mailing address and the PO Box is the location address, leave the PO Box as the location address.

(2) When inputting either the mailing or location street address information, follow these guidelines:

• Do not leave a blank space between the house or building number and a suffix,
  Taxpayer submits 1234 B North Street. Input as 1234B NORTH ST,

• If present, always input the street suffix such as street, drive, lane, terrace, etc. See chart in (15) below,

• If present, always include the street directional such as North, South, East, West,

• Always input the suite, apartment number, room number, etc. at the end of the street address line,

• If the address contains a fraction, utilize the forward slash (/) between the numeric fields. For example, 1/2.

• If the address contains a hyphen (-) such as 289-01 MAIN ST, enter the hyphen as part of the address. Do not remove the hyphen. Do not leave any other spaces around the hyphen,

• If the address contains the symbol "&" (ampersand), always input the word "and" in its place,

• If the address contains a decimal point such as 1.5 MILES SOUTH OF HWY 19, convert the decimal point to a fraction. Input as 1 ¹⁄₂ MILES SOUTH OF HWY 19,

• If the address contains a pound sign such as 1532 MAIN ST #15. Input as 1532 MAIN ST 15. If the street address contains an abbreviation for "number", omit from entry into address line on IDRS,

• A city or town name (that is long) will only be abbreviated for lack of space in the IDRS field,

• The Private Mail Box (PMB) must be entered at the end of the address regardless of where it is shown in the incoming address. It will always be included with the street address,

  Example: Private Mailbox 3, 102 S. 38 will be entered as 102 S. 38 PMB 3. When entering data from a document which has a Private Mailbox (PMB) number, to ensure consistency, input the PMB on the street address line according to the example above. If it is located in another area other than the street address line, make the correction to move it to the correct line. (for example, PMB on the street address line).

(3) If city or state is missing or incomplete and the ZIP code is present, research the United States Postal Service (USPS) web site at http://www.usps.com to determine the city and state.

(4) Only the primary five digits of the ZIP code should be entered. IDRS and the FINALIST program automatically expand the ZIP code to 12-digits.

(5) Mail going to a domestic taxpayer will carry two name lines. The priority of these name lines is as follows.

1. Always the primary name (legal name).

2. Always sort name if present on the BMF or Care of Name or Foreign street address or continuation of primary name if no foreign street is present.

(6) To ensure outgoing mail contains pertinent information, primary name, care of name, sort name and address must be properly input.

(7) If the city listed is a major city, the Major City Code may be input in place of the city and state information on the mailing address and location address. Major City Codes are now universal and can be used in any processing site. If the Major City Code is used, it must be followed by a ZIP code. (Input requires that the Major City Codes be followed by two commas and then the ZIP code.) See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

(8) If there is any question regarding the correct mailing and/or location address (directionals, building number range, ZIP code, spelling, etc.) access the USPS web site at http://www.usps.com. Adhere to the IRS address abbreviation rules.

(9) The words "East, West, North, South" will only be abbreviated when used as a directional for a street name. For example:

• Taxpayer enters: 1105 North Main Street,

• Entry onto IDRS: 1105 N MAIN ST

(10) Plurals for street, road, avenue, etc., will be entered as STS, RDS, AVES, etc. Street address for First, Second, Third, 1st, 2nd, or 3rd will be entered onto IDRS as the taxpayer entered.

(11) Always use the address on the document. However, common abbreviations are acceptable. (See Document 7475).

(12) The following abbreviations will only be used if needed to limit street address fields to 35 characters:

(1) When the correspondence letter has been prepared, the return is placed in a suspense file awaiting the reply from the taxpayer.

• File ERS documents in DLN order.

• File SCRS documents by Reject Sequence Number

  Note: SCRS documents can be filed by DLN if the campus makes that decision.

(2) When taxpayer reply is received:

1. Stamp letter with Rejects Unit received date, if not already date stamped.

2. Associate the reply with document and register.

3. Check envelope for remittance or more information.

4. Staple the letter and attachments to back of original document in the upper left-hand corner.

5. For ERS, enter CC ACTVT to bring the record to the workable file. For SCRS the record is already in the workable inventory.

(3) When the taxpayer reply for EP/EO correspondence is received, the ERS clerical team will make copies of the needed information, ensuring each copy is clear and centered. All staples will be pulled prior to making copies. Refer to IRM 3.20.12.3.8 and IRM 3.20.12.3.10 (7) and (8), Imaging and Perfecting Exempt Organization Returns for Public and Internal Viewing, for more re-imaging information. Information will be attached in the following order (do not staple):

1. Copy of the front page of the return, or if not available, a BRTVU or INOLES print containing all the following information: EIN, TXPD, Form, Subsection Code and all Entity information.

2. Copies of any pages of the return that were amended.

3. Copies of amended or new Schedules, in alpha order.

4. Deliver to Imaging team daily. Do not hold in ERS clerical area.

5. Route the original return and attachments to Files.

6. ERS will charge the time to OFP 550-38901.

(4) Maintain each document and Correspondence Action Sheet in a suspense file for ten days after the period given for the taxpayer to respond.

• If, after the end of the suspense period, no reply is received, the return is stamped "No Reply" with the date and routed to Tax Examiners to be worked.

• If a reject register is more than 45 days old, check the actual correspondence date to be sure that the taxpayer has been given at least ten days longer than the date specified.

• If the ERS suspense period has expired and more time should be given to the taxpayer, the record may be resuspended with a 212 Action Code.

• If notified by Taxpayer Advocate Service or the taxpayer that the correspondence was not received, reissue the original correspondence (to the correct address) and resuspend.

(5) If a reply is received without the proper identification number, research the inventory to obtain the correct number.

• For ERS, use CC ERINV with the TIN to search for a DLN.

• Use CCs NAMEE or NAMEB if the TIN and the DLN are missing.

(1) Any current year return claiming ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and any prior year return claiming ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is subject to the following procedures.

(2) Returns meeting the criteria above will be flagged with a purple tag indicating "CTW review" when correspondence is initiated.

(3) If a reply is received, pull the return and give the reply and return to the Lead. Do not activate the return until it comes back from LB&I.

(4) If no reply is received, follow the same procedures.

(1) The Internal Revenue Code provides that the IRS will assess and collect taxes and refund credits within a specific time limit.

(2) Rejects will review all prior year returns and all documents rejected for more determination as statute expiration cases.

1. Review involves those returns where the Statute of Limitations will expire within 90 days or less and those for which the statute has already expired.

2. Each Submission Processing Center distributes a monthly listing of statute alert tax periods.

(3) Potential statute expiration cases will be hand-carried to the Statutes Unit.

1. For reject register documents, prepare Form 3210.

2. For ERS documents, use Form 8161 for routing control.

3. The Statute Stamp is good for 90 days from the date stamped.

4. If the case has been in the inventory for longer than 90 days, hand-carry/re-clear the case through the Statutes Unit.

5. Rejects will keep control of these cases until they are returned from Statutes.

6. Form 4227 will indicate either that the return should be processed or voided to Statutes.

(4) Some cases will be received in Rejects which have already been identified as true statutes cases. These returns are not re-routed on Form 3210 but can be voided immediately to Files.

(1) Code and Edit and Error Correction will identify returns that suggest questionable or fraudulent refund schemes.

(2) The specific situations to be identified are included in other sections of IRM 3.11, Returns and Document Analysis and IRM 3.12, Error Resolution.

(3) For ERS, the following Action Codes are used to route cases to Examination:

• 333 - Prompt Audit

• 334 - Joint Committee

• 335 - Frivolous Case

(4) For ERS, the following Action Codes are used to route cases to Criminal Investigation (CI):

• 336 - Questionable Refund Detection Team (QRDT) Case

• 337 - Other Criminal Investigation Division (CID)

(5) Action Code 331, Protest Review, are used for cases held in Error Resolution for review by a representative of Examination.

(6) Action Code 332, QRDT Review, are cases held for CI.

(7) For SCRS, all cases will use Computer Condition Code (CCC) U (Code and Edit) or Action Code 3 (Error Correction).

(8) When the case is returned from CID, follow the corrective action indicated on Form 4227 or other attachment.

(9) For ERS, enter a "C" in the Clear Code Field if instructed to process the return.

(10) Follow the same procedures for Action Code 370 (Examination) referrals.

(1) Documents should be routed to Entity Control Unit if research is unsuccessful when:

1. EIN is missing or mismatch

2. EIN is invalid

3. EIN is "applied for"

(2) ERS documents are suspended with Action Code 320 (paper returns) or 321 (MeF returns).

(3) Revenue Procedure 2013-30 allows taxpayers to file Form 2553, Election by a Small Business Corporation, with their initial Form 1120-S. These returns will generate Action Code (AC) 347.

• MeF will automatically generate AC 347 when a Form 2553 is transmitted with a Form 1120-S.

• Code & Edit will manually code AC 347 on Forms 1120-S received with a Form 2553 attached to it.

• AC 347 will have an automatic 20-day suspense period.

(4) Following are the procedures to be followed for AC 347.

• Suspense/Rejects will forward only the Form 8161 or local routing slip, if return was processed via MeF, to Entity Control.

• Suspense/Rejects will route the Form 8161 or local routing slip and return, if paper, to Entity Control.

(5) Suspense/Rejects will do the following when documents are returned from Entity:

(1) Taxpayers may provide address changes on Forms 8822/8822-B, Change of Address/Change of Address - Business.

(2) Forms 8822/8822-B are to be processed by Entity Control Tax Examiners when received loose at the campus.

(3) 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.

(4) Forms 8822/8822-B received with taxpayer replies will be separated from the reply and routed to Entity Control.

(1) Prepare a non-suspense Letter 86-C to notify the taxpayer that the return is being routed to appropriate SPC and that future returns should be mailed to that campus.

(2) Attach all IDRS prints used to determine the return is IMF and transship the return to appropriate SPC.

(3) Notate 86-C prep on the document.

(1) The US Postal Service has given military addresses their own state abbreviations within certain ZIP code ranges. Allow only the following state codes for APO, DPO, and FPO addresses.

(2) Include the letters "APO", "DPO", or "FPO" in the city/state field line, enter the 2-digit state code, then enter the 5-digit zip code.

(1) All renumbered documents should be held until verification that the new DLN has been properly transcribed and has properly updated the SCCF.

(2) DLNs can be verified from any of three different listings or from CC SCFTR.

• The most efficient listing for DLN verification is the New DLN Record List, SCF 11-48, which lists in new DLN sequence all documents which have been renumbered from reject registers, ERS, or Form 4028, Service Center Control File Adjustment Record. Although this listing may include items renumbered elsewhere in the SP Campus, this is the only listing in the same sequence as the source documents that have been blocked for input.

• The Reject Disposition List, GMF 11-47 includes only those items that were renumbered from the Reject Register.

• The Rejected Records List, ERS 05-40 includes only items renumbered in ERS.

(3) Compare the new DLN shown on the document with the new DLN on the listing.

1. If the new DLN does not match, and the DLN shown on the document is correct, determine whether the erroneous DLN was established on the SCCF by checking the CRL Renumbered Transaction List or research the SCCF using CC SCFTR.

2. If the erroneous DLN was established, prepare Form 4028 changing the erroneous DLN to the correct renumber DLN. Use From Code 0.

3. If the erroneous DLN was not established and the original DLN not deleted, prepare Form 4028-A for the old DLN and the correct new DLN. Use From Code 4.

4. If the new DLN on the Rejected Records List is correct, change the document to agree with the listing.

5. If unable to determine the correct action, request assistance from Data Controls.

(4) When all items in a new block have been verified, route the block to Batching for input. Be sure to include the original Form 813 or Form 1332 as the block header document.

(1) The following table lists the majority of the IDRS and ERS command codes used in the ERS, Rejects and Suspense functions. Many of these command codes can be accessed via the IAT Tool.

(2) For further explanations, screen displays, and applicable definer codes, refer to IRM 2.3, IDRS Terminal Responses, IRM 2.4, IDRS Terminal Input, and the applicable training series.

(1) If there is a change to the EIN, ERS is required to issue the Letter 3875-C letter to advise the taxpayer for the EIN change.

(2) Do not send Letter 3875-C:

• If three or less digits of the EIN are transposed, different, or missing;

• When INOLES indicates the account has been "merged to" or "merged from", or

• If the taxpayer uses their SSN in EIN format or fails to include their EIN and research shows there is a valid EIN for that taxpayer.

(3) Refer to specific 3.12 IRMs for instructions.

(1) An ERS Action Code is a three-digit numeric code used to indicate the reason for suspending or rejecting a record.

(2) An Action Code is assigned to a record in the following functional areas:

• Code & Edit

• ISRP

• SCRIPS

• Error Correction

• Suspense Correction/Rejects

  Note: Some Action Codes are computer generated when an unprocessable condition is identified.

(1) Each field is identified by an Alpha/Numeric Field Designator displayed before that field.

(2) Negative values will be indicated by a minus sign (−) following the amount.

• If any amount is negative on a field that can be positive/negative, the minus sign must be entered.

(3) Decimal points are displayed for dollars and cents.

• The cents digits are not displayed for dollars only fields; two asterisks (**) are displayed in the cents position.

  Note: It’s not necessary to enter a decimal point when entering an amount.

(4) Corrections are entered starting with the left-most position of the field after the first space.

• If fewer than the maximum number of positions is required, the program will automatically right justify the digits.

• If more data is entered, the overflow characters (#) will display on the screen. They are dropped when the field is added to the record.

  Note: This is especially important for the TIN, name, and address.

(5) Corrections can be made to a displayed field by overlaying only the digit(s) in error and not re-entering the entire field.

(6) When transmitting corrections to a screen display, move cursor below the last field containing data before transmitting.

(1) All records with an invalid Action Code assigned by Code & Edit or Action Code 001 will be placed in the Error Inventory and displayed as a Priority I Error.

(2) Records with a valid Action Code, assigned by Unpostables or computer generated Action Codes, will be assigned to a Suspense Inventory and will be displayed as a Priority I Error.

(1) Most edit, missing section, and terminus errors should be eliminated by the Integrated System Remittance Processing (ISRP).

(2) The following conditions may be present if normal ISRP validity checks have been bypassed:

• Edit errors

• Missing required section or questionable section

• Terminus errors

(3) All transcribed fields, except the ERS Action Code and the Remittance (Payment Received), will be displayed in columnar format with or without data. The error type will also be indicated for ISRP Problem Code errors. Only one section (error) will be displayed at a time.

(4) Any individual section excluding computer generated fields and the Action Code will be present. (The Action Code is an uncorrectable field except as defined for CC SSPND and RJECT.)

(1) Definition—Any field failing to meet the requirement(s) for that field (and that field only) will be shown as a Priority III Error.

• Consistency and/or relationships with other fields will not be a factor.

(2) Individual field validity errors to be bypassed after initial consideration will be shown as Priority IV Errors. 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

(3) Display—All fields with a Priority III Error will be displayed in the order encountered in the record.

(4) The Action Code and TPNCs will never be displayed as a Priority III Error.

(5) 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.

(6) Correction:

1. Every field displayed is in error. See the appropriate section of IRM 3.12, Error Resolution, for the specific document.

2. Check the information on the source document to determine if each displayed field has been correctly edited and transcribed.

3. Enter the correct data for each field displayed.

4. If no data is to be in a displayed field, blank the field.

5. Correct each field displayed.

6. Transmit.

(1) Any valid field used in any computation in which the result is inconsistent with or contradictory to any other valid field or fields will have Error Code 001-999 assigned to it by the computer shown as Priority IV Error.

(2) Using valid fields, if the result of the computer computation of an amount differs from that which is contained in the record, the computation fields will be shown as a Priority IV Error.

(1) Document Perfection and ERS are responsible for identifying refunds and for initiating requests for manual refunds.

(2) Action Code 341 should be input by Code & Edit to show that a manual refund is needed. If these conditions are not identified in Code & Edit, ERS must follow the following criteria:

(1) The Error Registers are listings of document records that failed the validity, consistency, or math verification tests of the Submission Processing Center computer.

• The Error Register is printed in the order requested by each campus on the Error Sort Card from Form 6826. The registers may be sorted in any of five sequences, see IRM 3.12.38.2.2.5, Form 6826, Section IV - Error Sort Card, for clerical instructions.

• Each SPC should select the sequence best suited for its operations. The sort sequence is not required to be the same for every Master File.

(1) The Error Register Title Line identifies the Run Number and Master File, type of record, type of register, and source of the error register, program, form number, Format Code, date, and page number. It will appear as the first printed line at the top of each page.

(2) The Generalized Mainline Framework (GMF) processes all Master Files on one file, but the error registers will be printed separately for each Master File listed below.

• IMF - Individual Master File

• BMF - Business Master File

• IRP - Information Returns Program

• EPMF - Employee Plans Master File

(3) The title line designates that the register is raw or loop.

(4) For loop registers, the correction loop counter specifies which loop may be contained on the page.

• If loop errors have been sorted separately, this field will be a one-digit number (for example, "1", "2", etc.).

• If some or all loop errors have been sorted separately, this field will be the range of loop registers printed (for example, "1-6", "2-6", or "3-6").

(1) The Error Register ID Line will identify each document on the error register and, sometimes, why the document is on the error register.

• The Error Register ID Line is always the first printed line for each document on the error register.

  Note: If an error document is too long to fit on one page, the ID line for this split record is repeated on the next register page.

(2) The Correction ABC and SN are present when requested on the Error Sort Card.

• See IRM 3.12.38.2.3.7, Disposition of Completed Registers, for procedures for assignment of the ABC/SN.

• When the generated ABC/SN is not selected, each error record is preceded by "@@".

(3) The IRP error register may contain a "$$" or "%%" to the right of the generated SN.

• "%%" indicates that a correction record is needed but should not contain data for associated data errors.

• See IRM 3.12.8, Information Returns Processing for specific information regarding this field.

(4) The Error Sequence Number (ESN) is assigned to each raw input document that is determined to be in error.

• This number remains the ESN of the error document until the record is corrected or rejected from the Error File Tape.

• The ESNs will not be in sequence on the error registers.

• The first four positions of the ESN are the year digit and Julian date.

• ESNs are assigned to all Error and BOB Records as they are entered on the files, whereas Error Records are sorted in various sequences prior to being printed on the Error Register.

(5) The Service Center Block Control Number is a three-digit alpha-numeric assigned to a block of documents and input by ISRP for control purposes. It is used to associate error registers with blocks or documents.

(6) The Batch Number is a four-digit number assigned to a group of blocks which have been associated for document control purposes and which have identical program code, tax class, document code, and other specific record criteria.

(7) The Document Locator Number (DLN) is a unique 14-digit number assigned to each document within a block.

(8) The Block Header MFT is a two position numeric code, which is used to further identify the types of documents in a block.

(9) The Invalid Correction Error Reason Code is a code indicating that the last error register correction attempt was invalid.

• This invalid correction attempt will be identified by Error Reason Code AA for all Master Files.

• See IRM 3.12.38.4.3.10, Invalid Correction Attempts, for a list of the various invalid correction attempt conditions.

• This field will be blank if an invalid condition is not identified.

(10) The Error Reason Codes are document specific codes explaining the reason an input document is on the error register.

• The Error Reason Codes and their related explanation and correction procedures are included in the IRM 3.12 chapter for each document.

• If the document does not have Error Reason Code, this field will be blank.

• If an Error Reason Code is valid for a document, a maximum of nine two-digit Error Reason Codes can be present in this field.

(11) The Math Status Code is a one-digit numeric code that indicates whether a return is mathematically correct, or in error within tolerance, or in error out of tolerance. If this Math Status Code is not used for a document, then the field is blank. The valid code values and meanings are as follows:

• Blank - not relevant

• "0" - non-money return

• "1" - no math error

• "2" - math error within tolerance

• "3" - math error out of tolerance

(12) The XXX (Specific Document) Error Reject Document Identification Data provides specific document identification data for more information regarding the records.

• This ID data should not duplicate any information already provided in the Document ID Line or the Error Register Title Line.

Example: The Block Header Transaction Code for Revenue Receipt Documents is reflected in this field.

(13) The Correction Loop Counter is a two-digit numeric field that provides the number of times a particular record has appeared on a Loop register.

(14) The Correction Match Counter is a two-digit numeric field that provides the number of times that a document on the error register has had a correction matched to it.

(15) The Last Action Code Used is a code identifying the correction action code applied to an error document to resolve an error condition.

(16) The Error Register Consecutive Counter is an ascending and consecutive count of error records as they appear on the error register.

• The counter is reset to "00001" with each change of Master File and each change of raw to loop register.

• This counter should be used to determine the number of registers in a block of work.

(1) Each error register document record contains one or more sections of data.

• The section number is displayed to the left of the first line of each section.

• The first section number for each document is 01.

• Other sections may follow, always in ascending order but not necessarily consecutively.

(2) The fields of each section begin on the same line as the Section Number.

• Each field is identified on the Error Register by an Alpha Field Designation printed before the field.

• The sign of the field is also printed on the Error Register for variable length input fields.

• When required, the sign of a field is printed after the field.

• If the field in error is one normally designated by an asterisk, the asterisk is printed in the first space immediately to the left of the field designator.

• The fields of a section must always be in the same sequence and must be corrected in that sequence.

• For correction purposes, each field is referred to by its Alpha Field Designation.

• The first field of each section is designated as the "A" field and letters are assigned in alphabetic sequence for the rest of the fields in the section.

• Corrections must be transcribed in alphabetical order.

(1) Character Errors include the following:

• A non-numeric character in a numeric field

• A non-alpha character in an alpha field

• A blank space in a numeric field

• A blank in the first position of an alpha field

(1) A Field Error in a specific Alpha Field Designation indicates the field, or characters within the field, that failed a validity test.

• Correct by entering the correct data.

(2) Field Errors include the following:

• A non-numeric character in a numeric field

• A non-alpha character in an alpha field

• Blanks in a must enter field

(3) The Error Indicator for a Field Error is an asterisk (*) printed to the left of the Alpha Field Designation. Such fields contain valid alpha or numeric characters, but the field content is invalid.

(4) An overflow field for a Field Error is identified by all question marks for a money field or a single pound sign in the last position of a name line.

(1) A Terminus Error is indicated by two asterisks (**) printed to the left of the Section Number. This indicates that there is a non-numeric character in a numeric field or that the format of the section is incorrect.

• In case of a Terminus error, check that all necessary fields and sections are present.

• If they are not present, enter the missing section with Action Code "5" and the fields with Action Code "6".

• If the data is correct, it will be necessary to re-enter a field using Action Code "6" to send the record to good tape.

(1) The Edit Error Indicator is printed to the left of the Section Number. This error will be shown on the error register as follows:

(2) All fields of a section must be examined when the Edit Error Indicator is present.

Note: If Section 01 of a return is coded, also examine the tax base data section for error to ensure the return data is for the taxpayer whose name is in Section 01.

(3) Even though one or more sections of a record are coded, the validity and consistency checks necessary for the record are made for all sections.

If the record is correct as it appears on the Error Register, use Action Code "7" to send the record to Good Tape.

(4) Normal corrective action for fields in error is to be taken as instructed in the form specific IRM 3.12.

(1) Data within the field is invalid and error indication has an asterisk (*) before the field.

(1) Relationship Errors involve more than one field of the error record.

(2) The Error Indicator is the Error Reason Code and/or asterisks printed before the fields involved.

(3) If an Exempt Organization (EO) entity changes and the error code is "01", a pound sign (#) will be shown before the invalid field.

(1) Math Errors result when the computer computation differs from taxpayer’s.

(2) The Error Indicator is the computer computation amount printed on the Error Register under the transcribed amount.

(1) Missing Section Errors will be indicated by a single asterisk (*) to the left of the section number, indicating a missing required section.

• Use Action Code "6" to enter the missing data.

(1) Extraneous Section Errors are indicated by a pound sign (#) to the left of the Section Number, that is invalid.

• Use Action Code "4" to delete an unnecessary section.

(1) Never use Action Code "0" unless the error register already contains the correct tax data.

(2) When Action Code "0" is used, no other Action Code is valid.

(1) Action Code "1" is entered to the left of Section 01 with a taxpayer notice code to indicate that the taxpayer has made a math error if:

• The computer has computed the tax correctly and the tax computation per computer should be accepted by the Master File, and

• All taxpayer entries have been transcribed correctly but the total tax due or overpayment is in error.

(2) Action Code "1" must be followed by a TPNC that is valid for the type of return and correctly advises the taxpayer of the reason for the error.

(3) When Action Code "1" is used, no other Action Code is valid.

(1) Action Code "2" is used to delete, re-enter, or renumber records on Service Center Control File (SCCF).

(2) Action Code "2" is entered to the left of Section 01 and must be accompanied by a Reject Disposition Code. The valid Reject Disposition Codes are as follows:

• 2-D - delete the document from the Reject inventory

• 2-R - re-enter the document with the current DLN

• 2-N - renumber the document

(3) Be sure to maintain an audit trail of deleted documents. Notate on the register the reason for Action Code "2".

(4) Action Code "2" is valid for IRP and Reject Register only.

(5) When Action Code "2" is used, no other Action Code is valid.

(1) Enter Action Code "3" to the left of Section 01 for any record that is unprocessable.

(2) Some of the reasons for using Action Code "3" are:

• A return or other document with illegible or missing necessary data which requires more research or, taxpayer or area office contact.

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

• A return or other document that data incorrectly transcribed in a field that cannot be changed by an Error Register Correction.

(3) Action Code "3" is valid for Error Registers only.

(4) Attach a Correspondence Action Sheet or Reject Routing Slip to the document to explain the invalid condition or intended corrective action.

(5) Immediate action may be necessary to suppress generation of erroneous balance due or delinquency notices before rejecting a payment/delinquency return to be renumbered/re-entered.

(6) When Action Code "3" is used, no other Action Code is valid.

(1) Action Code "4" is used to delete a section from a register.

• This code is valid for any section that is considered optional by the return program.

• Section 01 can never be deleted.

(2) This code should not be used to delete a section identified as "missing" (a single asterisk in front of the section number). A missing section will be dropped automatically, if no data is entered in it.

(1) Action Code "5" is used to add a section to a record on the register.

(2) Action Code "5" is followed by the number of the section being added, the alpha field designator(s), and the data for the section being added.

• This code is invalid for a section already on the register or a section that is not valid for the type of document being processed.

(3) When adding sections, be sure that all corrections are entered in the proper sequence.

• If the document also requires Action Code "6" corrections, sections must be added in the proper sequence with respect to other corrected sections.

• If the document requires no other corrections, sections may be added at any place on the record, provided that each new section is in the proper sequence.

(1) Action Code "6" is used to change a field or fields of a section within the Error Record.

• The computer identifies each field of a section with an Alpha Field Designation and prints the Alpha Field Designation before the field on the Error Register.

• To correct a field, the incorrect field data must be lined out and the correct data entered above. Any number of fields may be changed during one correction cycle.

• Enter Action Code "6" immediately to the left of the Section Number for the section being changed.

(2) For purposes of entering corrected information above a line out entry on an Error Register, ERS and ISRP may agree to the use of shorthand notations developed as local procedures. No shorthand should be used unless a written agreement between ERS and ISRP has been issued. One example of a shorthand notation is shown below:

• Shorthand Method: = (S1) Draw a circle around the S1. In this shorthand method, the S stands for space and the 1 means one extra space. S1 with a circle around it will tell Data to re-input the line exactly as it reads but with the appropriate spaces.

• 01 A123456789+ = DCopper Cabana Bed & Breakfast+

(3) When a fixed-length field must be blanked out or left partially blank, special procedures are required.

• If the fixed field requires leading blanks, always enter the number of blanks encircled, followed by the corrected data.

• If the fixed field requires blanks after the data or if the entire field must be blanked, the spaces must be accounted for only if another field is being corrected later in the section.

Note: See Figure 3.12.38-1, Field length correction.

(4) Action Code "6" cannot be used to add, delete, or change the remittance amount on an error register. If the remittance is incorrect, use Action Code "3".

(1) Action Code "7" is used to indicate that the data on the error register is correct and that no action is necessary.

(2) Use Action Code "7" to clear an error record that is on the register for a one time only validity condition.

(3) The most common use of Action Code 7 is on Loop rejects where there has been an invalid correction attempt made, identified by the "AA". Not every invalid correction attempt appears as an error on the register. Using AC 7 will cause it to revert to the original error on the next Loop Register.

(4) Action Code "7" will not clear a math error condition even if the taxpayer was correct. Instead, use Action Code "0".

(5) When Action Code "7" is used, no other Action Code is valid.

(1) Use Action Code "9" to re-reject a loop register for correspondence or other suspense action.

(2) This code is used to prevent a reject loop record from reprinting each time the loop is run, if the record is not ready for correction.

• Action Code "9" is to be used for reject loop only. Do not use for raw rejects or error registers.

(3) When Action Code "9" is used, no other Action Code is valid.

(1) Each correction attempt is subject to tests which ensure proper correction.

• If a correction attempt fails, the record will reappear on the Error Register with Error Reason Code "AA".

• When Error Reason Code "AA" is present, correct the error register as if no other correction attempt has been made.

(2) For a given record, any correction that precedes the invalid correction attempt will print out as a corrected field.

• Any other corrections made after an invalid correction will not printout, an Error Reason Code "AA" will be present.

  Example: Fields A, B, and C are to be corrected in a section and C was transcribed Z. Z is an invalid Alpha Field Designation for the Section.
  The Error Register will have the corrected Fields A and B printed out, but Field C will still be incorrect.

(1) The Alpha Field Section One designations and length are shown below.
Section 01 = All fields are fixed length.

(2) Section 02 - All Fields are variable length. This section is present only for Form 6209. Non-numeric figures may or may not be corrupted. To address this problem:

• If non-numeric data is entered in any of these fields, the error register will not show the non-numeric (corrupted) data.

• On the error register, in the TERMINUS INDICATOR will be 2 asterisks (**) (to the left of Section 02), and

• The field will be blank.