3.22.15. Foreign Partnership Withholding

(1) The purpose of Error Resolution is to resolve validity errors, field errors, consistency errors, and math errors on returns and other documents for posting to the Master File.

(2) Form 8804 records fall out onto SCRS. For more information on SCRS, See IRM 3.30.123.2.4.3, Processing Timeliness: Cycles, Criteria and Critical Dates.

(3) Form 8804 is processed under:

• File Location Code 98 Philadelphia Submission Processing Campus (PSPC) or 60 Ogden Submission Processing Campus (OSPC)

• Tax Class 1

• Doc. Code 29

• Blocking Series 000-999

• MFT Code 08

• Program Code 11340

(1) Authority for these procedures is found in the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury regulations.

• IRC 1446

(1) The Director, SP Office monitors operational performance for the Submission Processing campus.

(2) The Operations Manager monitors operational performance for their operation.

(3) The team manager/lead handle performance monitoring and ensure employees have the tools to perform their duties.

(4) The team employees must follow the instructions contained in this IRM and keep updated IRM procedures.

(1) Program Goals: Correct all errors identified by the Service Center Replacement System (SCRS).

(2) Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the ERS reports. Daily, weekly, and periodic reports are available to management through Control-D Web Access to manage inventory and capture data for program planning and review.

(3) Program Effectiveness: The program goals are measured by the following reviews:

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial Reviews

(4) Annual Review: This IRM is updated and reviewed annually to ensure accuracy and promote consistent tax administration. Review and concurrence are performed by affected offices according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving Internal Management Documents (IMD), prior to publishing.

(1) All tax examiners must submit a management approved Business Entitlement Access Request System (BEARS) request to gain access to the Service Center Replacement System (SCRS).

(2) Tax returns in SCRS are worked on a First In First Out (FIFO) basis as they are received from input systems through the General Mainline Framework (GMF).

(3) Quality review is conducted following the Embedded Quality Submission Processing (EQSP) procedures found in IRM 3.30.30. The EQSP system provides a method to monitor, measure, and improve the quality of the work throughout Submission Processing. Review data is used to identify trends, problem area, training needs and opportunities for improvement.

(1) Acronyms and a glossary of terms can be found in Exhibit 3.22.15-8.

(1) The following job aids have been developed to help tax examiners in their work:

• BMF Name Control Job Aid, Document 7071-A, Catalog Number 38048K.

• Coding and Editing BMF Tax Returns, Foreign Addresses, Document 2324-002, Catalog Number 62293V.

(2) The following are Code and Edit IRMs related to this IRM:

• IRM 3.21.15 International Returns and Document Analysis - Withholding on Foreign Partners

• IRM 3.21.25 International Returns and Document Analysis - Miscellaneous Tax Returns

(1) The National Taxpayer Advocate reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business/Self-Employed (SB/SE) Division, Tax Exempt Government Entities (TE/GE), Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) that outline the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

(2) The SLAs are found at https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx.

(1) The Customer Account Data Engine (CADE) 2 Program Office in headquarters is charged with the primary goal of implementing a single, modernized programming solution that gives daily processing of taxpayer accounts.

(2) The CADE 2 solution is comprised of several components, to modernize the IRS to a daily processing environment with several Transition States.

(3) The Business Master File (BMF) campus cycles are:

1. Campus Cycle: Thursday -- Wednesday

2. Master File Processing: Friday -- Thursday

3. Notice Review Saturday: Monday (8+ days)

4. Unpostables: New available Tuesday; Closing Tuesday

(4) BMF transaction posting time frames are:

1. Transactions are viewable using CFOL command codes on Saturday following the weekly Master Files processing run on Thursday.

2. Transactions are viewable as posted transactions using Integrated Data Retrieval System (IDRS) command codes on Monday, following the weekly Master File processing run on Thursday.

Note: Implementation of CADE 2 accelerated weekly IDRS analysis. Previously, transactions such as this would have been pending on IDRS and not shown in the CFOL command code displays.

(5) Transaction posting dates show a format of YYYYCCDD. YYYY is the year. CC is the posting cycle. Individual Master File (IMF) transactions values for DD are:

1. 01 = Friday

2. 02 = Monday

3. 03 = Tuesday

4. 04 = Wednesday

5. 05 = Thursday

(1) It is important to leave a legible "Working Trail" (or "Action Trail") using blue ink for those who may work with the return later.

(2) Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner (or use Form 12648, Error Correction 90 TPNC). See IRM 3.22.15.23.16, Field 01-Q - Taxpayer Notice Codes (TPNC), for more information.

(3) If corresponding with a non-suspense letter, "X" and write the corrected money amounts to the left of each original point(s) of error. Write money amounts in dollars only or dollars and cents, as applicable. Arrowing is allowed for money amounts when there are no intervening entries between the arrow and the line to which the money is to be entered.

(4) Leave a working trail on the return when changes are made to the following items:

• Employer Identification Number (EIN) or Social Security Number (SSN)

• Tax Period

• Received Date

• Computer Condition Code (CCC)

• Correspondence Received Date (CRD)

(5) When working Reject re-inputs, circle out any previous Action Codes shown on the front of the return, if no longer applicable.

(6) When working Rejects, write "Voided" with the date above the DLN in red, when voiding a return.

(1) A listing of documents on which the transcribed data failed one or more of the consistency, math verification, or validity tests in the computer program.

(2) The register is made up of sections and fields that are directly or indirectly related to the data sections and items transcribed and input to the computer.

(1) An error or reject record that had a correction input but still has an invalid or math error condition that requires correction.

(1) A part or segment of a record containing data fields related to a specific schedule or part of the source document.

(2) Each section is identified by a two-digit numeric section number.

(1) A field is a specific item of information transcribed from a form, schedule, or other document.

(2) A section on the Error Register has a certain number of fields which always appear, whether the field includes data or is blank.

(3) Each field will show an Alpha Indicator (letter) which is located at the beginning of each field.

(4) A field is either FIXED (no field breaker) or VARIABLE (ends with a field breaker). See the next section for an explanation.

(1) A field breaker is a special symbol which shows the end of a variable field.

(2) The most common field breaker is a plus sign (+), although some fields can end with a minus sign (-), indicating a loss or a refund.

(3) The field breaker always appears at the end of the field whether it has data or not.

(4) When changing the data in a field on the error register and you enter a positive field breaker, enter a comma (,) and not the plus sign (+).

(5) When changing the data in a field on the error register and you enter a negative field breaker, enter a pound (#) sign and not the minus sign (-).

(6) Do not line through a field breaker unless you are changing it to a different one.

(7) When a section is added to the error register, only the fields which contain data are actually entered onto the register. The field breakers used would be the comma and/or pound sign, as required, but not the plus or minus sign.

(8) A few fields on the error register do not end with a field breaker, or any other indication of the end of the field. These are known as "Fixed" fields. Information for these fields is found in the IRM under each specific field explanation.

(1) Action Codes are used to indicate whether correspondence, research or some other action is needed. The Action Code sets the suspense period for the return and places the return in the workable or unworkable suspense inventory.

(2) Only one Action Code may be entered in any one section of the Error Register to correct the section. The Action Codes valid for this program are, 0, 1, 2, 3, 4, 5, 6, 7, and 9.

• If two incompatible action codes are required, the return must go through the "Loop Register".

• The definitions and rules of usage for the following Action Codes apply to the Error Register Correction Procedures

(1) Reject any Form 8804 filed for tax period ending November 30, 2004, (200411) and prior.

(2) Rejection Action:

1. Prepare Form 4227, Intra-Campus Reject or Routing Slip, indicating the reason for rejection.

2. Attach Form 4227 with explanation "Non Master File (NMF) Form 8804 Return Tax Period 200411 and Prior" to the face of the document.

3. Complete Form 3499, Informational Transmittal, and transship to the Accounting Branch at the Kansas Submission Processing Center (KCSPC):
   333 W. Pershing Road
   Kansas City, MO 64108

(1) Forward any unnumbered Form 8804 found in a block to Receipt and Control for batching and numbering. Documents withdrawn from processing:

• Must be forwarded to the correct Campus activity for the required action, when necessary.

• This includes items detached from other processable documents which require correspondence, accounting or other action.

(1) Enter a Correspondence Received Date (CRD) on the 4th line of the "For IRS Use Only" box on Form 8804 when correspondence is received. Enter the "CRD" date (in YYYYMMDD format) except in the following situations:

• The reply from the taxpayer was received before the due date of the return

• The correspondence was required because of an IRS processing error (e.g., a request for an attachment lost during processing)

(1) Correspondence Imaging Inventory (CII) is an inventory system for scanning all Account 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" annotated on the front of the return.

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

(1) Early-filed returns must be held for processing at the beginning of the correct processing year.

(2) An early-filed Form 8804 for Tax Period 202112 (filed before January 1, 2022) must be held for processing in 2022.

(1) Form 8804 can be filed as a fiscal or calendar year return. Generally, the tax period ending for Form 8804 is the same as the tax period ending for Form 1065, U.S. Return for Partnership Income. A fiscal year return will have the dates written at the top of page 1.

(2) If the tax period ending month does not agree with the month ending shown on Command Code (CC) INOLE:

• The tax period will underprint, or

• The return will go unpostable (UPC 307).

(3) If the Fiscal year ends prior to 200412, the return must be renumbered to NMF. See IRM 3.22.15.12.1, Pre-Master File Processing of Form 8804.

(4) Follow instructions under Field 01-B to resolve tax period errors. See IRM 3.22.15.23.2, Field 01-B - Tax Period.

(5) Partnerships whose fiscal years began in 2012 apply the tax rates in effect in 2012 for purposes of determining the amount of IRC 1446 withholding tax the partnerships must pay. This rule applies even if the partnership fiscal year ends in 2013. See Announcement 2013-30.

(1) A return is normally delinquent if not received on or before the return due date.

(2) Accept a return as timely if:

1. The return was mailed in time to reach the IRS through normal handling within the legal period.

2. Through no fault of the taxpayer, it was not delivered.

(3) Consider a return timely:

1. If it appears the Post Office might have sent it to another government agency in error (i.e., SSA - Social security Administration);

2. If the original envelope bears a timely postmark or a timely date stamp by that agency;

3. However, if the return was erroneously addressed to another agency, it is date stamped with the current date when the IRS receives it.

(4) Consider a return timely if it is received or mailed on the next workday when the last day for filing falls on a Saturday, Sunday, or legal holiday.

(5) See IRM 3.22.15.23.13 (3), Field 01-M - Received Date for information on the due date of Form 8804.

(6) If a return is delivered to the IRS after the date prescribed for filing, consider:

• The postmark date stamped on the envelope as the date of delivery;

• The document as timely if the postmark date falls on or before the prescribed date for filing the return.

(7) If the return is truly delinquent, check the return for an explanation of late filing, unless a pre-computed delinquency penalty is shown. If reasonable cause for late filing is found, enter the proper Computer Condition Code "D" or "R".

(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 of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, 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 considers suspicious, CI is available to review the referral.

(5) If a suspicious return is found, and there is no indication Code and Edit (C&E) made a copy and sent to CI Referral, then do the following:

1. Make a copy of first two pages of the tax the 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 helps 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 return to Exam, unless prohibited by instructions currently found in several IRMs.

(1) These errors result when required data is missing, or when incorrect data is present.

(2) These errors will have an asterisk (*) printed before the invalid field.

(3) An asterisk may also be printed before a field for verification purposes.

(4) Correction procedures:

1. Compare the return entry with the Error Register field.

2. Enter Action Code "6".

3. Line out the incorrect field.

4. Enter the correct data immediately above the lined-out data.

(1) These errors include:

• Missing data (missing section)

• Extraneous data

• Integrated Submission and Remittance Processing (ISRP) errors

• Terminus errors

(1) Math/consistency errors are caused when the computer computation differs from the taxpayer's computation or the transcribed amount.

(2) Math Errors occur when:

1. There is a transcription error

2. The taxpayer reports more entries than can be transcribed

3. The taxpayer makes a mistake in a calculation

(3) When a Math Error occurs,

1. The computed amount in question will underprint with the computer's calculation.

2. The "Manual Correction" field is Field 03-A.

(4) Use the "Manual Correction" field to bypass the math check on a loop. Use Action Code "0".

(5) If the transcription is correct, use Action Code "6" to enter the computer's calculation in the "manual correction" field.

(6) If the computer cannot compute the amount correctly. Then:

1. Verify the taxpayer's computation.

2. Enter Action Code "6" to enter the verified total into the "Manual Correction" Field 03-A.

(7) To correct math/consistency errors:

1. Compare the transcribed amount listed above the underprinted figure on the Register to the Form 8804 to ensure the information was accurately transcribed.

2. If the transcription is correct, and the error is within tolerance, bring up the underprinted amount into the Manual Correction field. Use Action Code "0".

3. If the transcription is correct, and the error is not within tolerance, use Action Code "6" to enter the correct amount in the "Manual Correction" field.

4. Always leave a working trail to ensure any correction made on the Error Register is also made to the return itself.

(1) To correct illegible or missing data use the following procedures:

(2) Rejects inputs a Notice of Action on the Master File as discussed below by using IDRS Command Code REQ77/FRM77.

• When an unprocessable return is rejected and sufficient information is available: enter Transaction Code (TC) 599 and enter Closing Code "17" to defer the normal delinquency check.

• Enter TC 599 and Closing Code "17" when the EIN, Name Control, MFT, and Tax Period are present.

(1) Field 01-A is a 12-position money field that may be present.

(2) The valid characters are numeric 0-9, or blank.

(3) It is entered into the margin to the right of Line 10, Page 2.

(4) It is entered in dollars and cents, and must be positive.

(5) The field shows the amount of remittance paid with the return not already in the module.

(6) This is a fixed field which cannot be corrected with Action Code (AC)"6". If there is an error, reject using AC "3". Rejects will re-input the return with the correct amount of remittance on the Form 3893 (in the "credit" box).

(7) The field is invalid if the total tax amount is not present in Field 02-P, or if the total tax field underprints "zero."

(1) Field 01-B is a six-position field that must be present. The tax period is on the preprinted label or edited in the upper right corner of the return, and to the left of the pre-printed year in YYYYMM format.

(2) Valid characters are numeric 0-9.

(3) Field 01-B is invalid if any of the following is present:

• Field 01-B is blank

• The month is not in the range of 01-12

• The tax period is for a future period (later than the register date)

• The tax period is a month or less in the future

• The tax period is prior to 200412

(4) Form 8804 may be filed for either a calendar or fiscal year.

(5) The field underprints if the month in the tax period disagrees with the month in the module.

(1) Field 01-C is a four-position field which must be present.

(2) Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-) and blank.

(3) This field is a fixed field (no field breaker). If it is necessary to enter a name control, the number of unused spaces must be accounted for by entering the number of unused spaces in a circle immediately after the entry.

(4) The name control is derived from the name on Line 1a.

(5) The name control of a partnership name showing multiple names is from the first four letters of the first partner’s last name.

(6) If the field underprints with a different name control (not "XXXX"):

1. Be certain the Name Control and EIN (Field 01-D) are entered correctly.

2. If transcribed incorrectly, enter the correct name (or EIN). If the correct name control is different from the underprint, enter a "1" into Field 01-P (Entity Underprint Code).

3. If the name control and EIN are transcribed correctly, research for a correct EIN using NAMEE and/or NAMEB. If no record, reject using Action Code"3". Rejects will send it to Entity.

(7) If the name control underprints with "XXXX:"

1. Be sure the Name, EIN and Name Control were correctly transcribed.

2. Research NAMEE, NAMEB and INOLE for the correct name and/or EIN or to determine how the name and name control should appear on the Error Register to match the Business Master File (BMF).

3. If the EIN is in orange ink (assigned by Entity) or purple ink (assigned by Entity Unpostable), be sure it was transcribed correctly and enter a "1" into Field 01-P.

   Note: Also enter the Entity assignment date (located next to the EIN in orange ink) into Field 01-O, if the return is processed after the due date.

4. If research provides a good EIN, enter it and issue Letter 3875C. Also, be sure the name control is entered correctly and input a "1" into Field 01-P.

5. If after research you cannot determine the correct name control or a good EIN is not found, reject case using Action Code "3". Rejects will send the return to Entity.

(8) If check digits are present in Field 01-C and you change the EIN in Field 01-D, you must also change the check digits to the correct name control. Check digits are derived from the numbers of the EIN, so if the EIN is changed, the check digits are no longer valid.

(9) A check digit must have blanks in the first 2 positions and a letter other than "E", "G", or "M" in the last 2 positions.

(10) Never re-enter check digits, even if they seem correct. Enter the name control when Field 01-C must be corrected.

(11) For complete information on BMF name controls, refer to Document 7071-A, BMF Name Control Job Aid.

(1) Field 01-D is a nine-position field which must be present.

(2) The valid characters are numeric 0-9.

(3) The only taxpayer identification number (TIN) valid on Form 8804 is an EIN.

(4) The Employer Identification Number format is "NN-NNNNNNN." The first two positions of the EIN are not invalid if it begins with these numbers; 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

(5) The EIN in field 01-D is located on Line 1b (or possibly on Line 2b in lieu of 1b).

(6) If a return is received with no EIN and Entity has assigned an EIN, enter the Entity Assignment Date into the Correspondence Received Date field (CRD) located in the "For IRS Use Only" box on Form 8804 and in Field 01-O.

(1) Field 01-E is a one-position field that may be present.

(2) The valid characters are "1" and "blank."

(3) The "Books and Records" checkbox is located in the upper right corner of Form 8804, directly under the pre-printed tax year.

(4) If the checkbox is checked, it means the partnership keeps its books and records outside the United States and Puerto Rico. This changes the Return Due Date (RDD) from the 15th day of the 3rd month, to the 15th day of the 6th month after the end of the partnership’s tax year.

(5) If Field 01-E has a number other than "1", look to see if it can be a misplaced entry. Also determine if the "1" is necessary in this field by looking at the actual checkbox on Form 8804.

(1) Field 01-F is a 35-position field that may be present. If the "In-Care-of" Name is present, then enter it in Field 01-F.

(2) The valid characters are alpha (a-z), numeric (0-9), ampersand (&), percent (%), hyphen (-) and slash (/).

(3) Field 01-F is invalid if any of the following conditions are present:

• The first position is blank

• The first character of the "in-care-of" name is not alpha or numeric

• There are two consecutive blanks between significant characters

(4) Correct Field 01-F using the following procedures:

(1) Field 01-G is a 35-position field that may be present.

(2) Ogden Submission Processing Campus works all foreign/international addresses and U.S. Territories returns.

(3) The valid characters are alpha (a-z), numeric (0-9), dash/hyphen (-), slash (/) and blank.

(4) Field 01-G is invalid if any of the following conditions are present:

• The first position is blank

• Any character follows two consecutive blanks

• There are more than 35 characters in the field

Note: ISRP is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return. If the foreign address is longer than 35 characters, continue the address into Field 01-H. See Figure 3.22.15-2.

(5) The determination of a foreign address is based only on the address of the partnership.

1. A foreign (international) address is any address not in one of the 50 states or the District of Columbia.

2. All U.S. Territories are considered foreign for processing purposes.

(6) A foreign address has:

• Street address or P.O. Box

• City or town name

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

• Postal code, if present can be before or after the city, town, province, state, county, etc. name but always before the foreign country

• Foreign country

(7) See Document 7475 (State and Address Abbreviations, Major City Codes (MCCs), Countries and ZIP Codes) for the correct abbreviation if the address has a state, province or territory from any of the following countries:

• Australia

• Brazil

• Canada

• Cuba

• Italy

• Mexico

• The Netherlands

(8) Returns with an address in a U.S. Territories are considered foreign returns for processing purposes but are entered in the same way as domestic addresses.

1. A two-character alpha code must be entered in Field 01-J for the territory name.

2. A ZIP Code must be present for U.S. Territories. See Exhibit 3.22.15-5

(9) The U.S. Postal Service established new address requirements for Army Post Office (APO), Fleet Post Office (FPO), and Diplomatic Post Office (DPO) addresses. If the old address appears (i.e., APO New York, NY 091XX), convert to the new state code abbreviation based on the ZIP Code (i.e., the previous example would be converted to APO AE 091XX). APO/FPO/DPO addresses are considered domestic addresses. Refer to conversion chart below:

(1) Field 01-H is a 35-position field that must be present.

(2) The valid characters are alpha (a-z), numeric (0-9), dash/hyphen (-), slash (/) and blank.

(3) Field 01-H is invalid if any of the following conditions are present:

• Any character is present other than alpha, numeric, blank, dash or slash

• The first position is blank

• Any character follows two consecutive blanks

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

(4) When entering either the mailing address or location address information, remember the following guidelines:

1. Ensure that a house or building number is present.

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

3. If present, always input the street suffix, such as street, drive, lane, terrace, etc. (See Document 7475).

4. If present, always include the direction information, such as North, South, East, West, etc.

5. If the name of a street is also a direction and a direction is present, abbreviate the direction only and not the name of the street.

   Example: 1234 West South Street would be entered as 1234 W South St.

(5) Enter Action Code "6" to the left of Section 01, when correcting the address.

(1) Field 01-I is a 22-position field that must be present.

(2) When a foreign address is present, enter the foreign country code in Field 01-I. See Document 7475, Section 6 for a list of valid foreign country codes.

(3) Valid characters are alpha (a-z) and blank.

(4) Field 01-I is invalid if any of the following conditions are present:

• The first position is blank

• Any position has other than a blank or alpha

• Any character follows two consecutive blanks

• The Major City Code does not match any of the valid codes in the Major City Code Table

Note: Certain cities within each state are designated Major Cities and are assigned a special code of two alpha characters. ISRP enters the Major City Code as appropriate. This code represents the city and state and is transcribed on the error record with no intervening blanks and no other characters in the City field either before or after the code.

• Foreign country code is not valid or Field 01-I has "XX"

(1) Field 01-J is a two-position field that must be present.

(2) The valid characters are:

• Alpha (a-z) and must be on the list of valid state codes

• Period (".") followed by a Blank space for foreign addresses

(3) If the address is one of the U.S. States or a U.S. Territory, enter the correct state code from the list of valid state codes. See Document 7475.

(1) This is a 12-position field that must be present for all U.S. and U.S. territory addresses. It must not be present for other foreign addresses.

(2) The valid characters are numeric (0-9).

(3) A minimum of five digits must be entered when required, but up to 12 digits can be entered.

(4) Invalid conditions are:

• Field 01-K is blank and there is an entry in Field 01-J

• Field 01-K is present and a period is present in Field 01-J

• The Zip Code in Field 01-K does not agree with the state code in Field 01-J.

(5) The only ZIP Codes that can be entered in Field 01-K are for U.S. States and U.S. Territories.

(6) Postal codes from any foreign country cannot appear in Field 01-K. Postal codes are part of the foreign address. See IRM 3.22.15.23.7

(7) The only foreign Zip Code that can be entered into the Zip Code field is the Zip code of a U.S. Territory. No Postal Code from any other foreign country can appear in the Zip Code field.

(8) Foreign "ZIP" codes (called Postal Codes) cannot be present in this field, but should appear as part of Field 01-H (if space is available).

(9) See Document 7475, which also has a list of ZIP codes.

(10) Depending on the addressing conventions of a foreign country, a foreign Postal code can be entered at the end of the address line or be included as part of the foreign address.

(11) If there is a period and space in the state code field, the entry in the Zip code field is invalid. If the Zip code is that of a U.S. Territory, change the state code entry to the state code for the territory and delete the territory name if it appears in another field. If the Zip code is that of a foreign country, blank the Zip code field and enter the Zip code into the address field.

(1) Field 01-L is a 10-position field that may be present.

(2) The valid characters are: "A", "D", "E", "F", "G", "O", "Q", "R", "S", "V", "W", "X", "Y", "3", "4", and "7".

(3) The Computer Condition Code (CCC) is entered onto the return on the "CC" line in the "For IRS Use Only" box in the upper, right corner of the return, under the EIN box.

(4) Leave "blank" if no CCC is required.

(1) Field 01-M is an eight-position field that must be present.

(2) The received date may be stamped onto the middle of the return or may be entered on the "RD" line in the "For IRS Use Only" box in the upper, right corner of the return.

(3) The Return Due Date (RDD) for Form 8804 is the 15th day of the 3rd month after the end of the partnership’s tax year (April 15 for YYYY21). The RDD is the 15th day of the 6th month after the end of the partnership’s tax year (June 15 YYYY21) if Field 01-E has a "1" (books and records kept out of the U.S. and Puerto Rico).

(4) Valid conditions for Field 01-M are:

• Must be in YYYYMMDD format

• Must be all numeric (0-9)

(5) Field 01-M is invalid when any of the following conditions are present:

• Field is blank or has less than eight digits

• It is not in the proper YYYYMMDD format

• It is a future date

• Field is prior to the tax period

• The month is not 01-12, or the day is not 01-31, depending upon the month

(6) Correct coding and transcription errors.

(7) The received date is changed to the legal due date of the return if the postmark shows legal timely mailing, without regard to the ≡ ≡ ≡ ≡ ≡ ≡ ≡.

(8) DO NOT change the received date on a return if:

• No envelope is attached

• No postmark is shown on a return bearing a delinquent Received Date

(9) Process a return as a timely-filed return when:

• It is necessary to use the signature date or the DLN control date to prove timeliness

• The computation results in a timely Received Date

(10) Use the following chart to select and enter the Received Date for returns addressed to IRS:

(11) If the postmark is not legible, the taxpayer has the burden of proving the date when the postmark was made. Refer to Treasury Regulation Section 301.7502-1(c)(1)(iii).

(12) Take the following action when processing returns that were sent back to the taxpayer:

• Timely Replies: If the return and the reply to correspondence is received by the return due date, consider the return timely.

• Late Replies: If the return and the reply to correspondence is received after the return due date, circle all previous received dates, and determine a new received date using the following priorities. The IRS date stamp stamped by the receipt and control function, the postmark date on the reply envelope, the SCAMPS date, or the current date.

• Incomplete Replies: If the return was originally timely submitted but incomplete and a valid (complete) return is filed within the period requested on the IRS correspondence returning the original submission, consider the return timely filed.

(1) Field 01-O is an eight-position field (YYYYMMDD) that may be present.

(2) The valid characters are numeric (0-9) or blank.

(3) This field is invalid if any of the following is present:

• Not in YYYYMMDD format.

• The entry is the same as the Received Date in Field 01-M

• The entry is earlier than the Received Date in Field 01-M

• The entry is earlier than the return due date (including the ≡ ≡ ≡ ≡ ≡ ≡ ≡)

(4) Enter the correspondence received date on the "CR" line in the "For IRS Use Only" box in the upper, right corner of the return.

(5) This date must be later than both the Due Date (15th day of the 3rd month after the end of the partnership’s tax year or the 15th day of the 6th month after the end of the partnership’s tax year if the books are kept outside the U.S. and Puerto Rico) of the return and the received date.

(6) This field cannot be used when CCC "3" is present in Field 01-L, even if the date in Field 01-O is the Entity assignment Date and there was no reply to correspondence.

(7) The CRD date should be stamped onto the reply, which is attached to the return. If not, look for and use the postmark date on the attached envelope. If the taxpayer faxed the reply, use the date the fax was received.

(8) This field can also contain the date that Entity assigned an EIN to the return (the Entity Assignment Date). This date is subject to the same restrictions as the correspondence received date, as the computer cannot differentiate between them.

(9) If Field 01-O is invalid,

1. Review the attached correspondence to determine the reply received date.

2. If the received date (Field 01-M) is prior to the due date of the return, delete entry in Field 01-O (this includes a date entered by Entity when a Taxpayer Identification Number (TIN) was assigned).

3. If there was no reply, delete any date in Field 01-O, and enter CCC "3" in Field 01-L.

(10) Do not enter a date in Field 01-O if:

• The taxpayer is not at fault

• The correspondence is due to IRS error

(1) Field 01-P is a one-position field used by error correction tax examiners when correcting the tax period Fiscal Year Month (FYM), or other entity data.

(2) This field does not appear on the return, only the error register.

(3) Enter "1" if:

1. The name control underprints a different name control and the corrected name control is not the same as the underprint.

   Note: This is especially true if the name control itself is not corrected but the EIN is. You still need the Entity Underprint Code (EUC) "1" to clear the underprinted name control if the EIN is now correct.

2. The name control underprints "XXXX" and the name control and EIN are both correct as is, or you correct either or both fields.

   Note: If the EIN is in orange (assigned by Entity) or purple (assigned by Entity Unpostables), the "1" is still required.

3. If the underprinted name control is different from the name control in the field, the record continues to loop until the EUC is entered.

(4) Enter "2" if:

1. The month underprinting the tax period (Field 01-B) does not agree with the month of the tax period in the field. If the correct tax period month does not agree with the underprint, the "2" must be entered into Field 01-P.

2. If the tax period ending month on INOLE does not agree with what the taxpayer shows as the ending month at the top of the return, a TC 016 is required. SCRS will reject and Rejects will send the return to Entity. Upon return, an EUC of "2" is required to clear the underprint.

(5) Enter "3" if:

1. When both the name control and the tax period underprint and the correct name control and tax period-ending month do not agree with their respective underprints.

2. If both fields underprint and a "1" or "2" is entered instead of a "3", the record continues to loop (e.g., "2" will not clear the tax period underprint if the "3" is required).

(6) If there is no different underprint for either the name control or tax period, do NOT enter an EUC. If the name control is invalid (*) rather than underprinting, do not enter an EUC. The field must underprint and the correct data must not match the underprint for an EUC to be required.

(7) If the field is invalid, look at the name control and the tax period fields to determine if an EUC is required. If it is, enter the correct code; if not, blank the field.

(1) Field 01-Q is a six-position field that may be present.

(2) The valid characters are 01, 02, 03, 90, or blank.

(3) The taxpayer notice codes are not entered into this field by the tax examiner. The TPNC is entered into the upper, left corner of the return, to the left of Section 01, with Action Code "1".

(4) The purpose of this field is to store the TPNCs after the return goes to good tape (posts). Only the computer can enter the TPNCs into this field.

(5) If the field is invalid because of an invalid TPNC or other entry, do not correct the field. Just make whatever other correction is required, such as assigning the correct (or same) TPNC (to the left of Section 01).

(6) You may see the TPNCs in this field if the TPNC were assigned on RAW and the record Loops, showing the "AA" (invalid correction attempt) on the top line of the error register record. In this case, the TPNCs will not be invalid. If there are no other errors, use Action Code "7" to clear the record.

(7) Do not enter a TPNC when any of the following is present:

• Difference in Balance Due/Overpayment (+/-) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• Total IRC 1446 tax ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

• The withholding credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for each type of Form (e.g., Form 1042-S, Form 8805).

Note: There is no tolerance for Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons, credits, all Form 8288-A credits must be verified by the Code and Edit (C&E) Foreign Investment in Real Property Tax Act (FIRPTA) examiners created within the C&E Unit of the OSPC or the Austin Submission Processing Campus (AUSPC).

(8) Remember, never enter or correct data in Field 01-Q.

(9) If correspondence is required, use IDRS Letter 3104C.

(10) The narratives below are printed on the BMF notice for the proper TPNC entered in Field 01-Q. TPNC 01 and 02 will print on CP 131A (Math Error, Balance Due of $1 to $4.99) on Form 990C, Form 990T, Form 1041, Form 1120, and TPNC 03 will print on CP 173 (Notification of Estimated Tax Penalty Due) on Form 1120 Series, Form 1041, Form 990-C, Form 990-T and Form 990-PF.

(1) Field 01-R is a nine-position field that may be present.

(2) Valid conditions are:

• Entry is blank

• "P" for the first character followed by eight numeric characters

(3) Invalid condition is one of the following:

• Field 01-R is other than a "P" followed by eight digits

• Has all zeroes

• Has all nines

• Has all numeric

(4) Correct Field 01-R as follows:

(1) Field 01-S is an nine-position field that may be present.

(2) Valid conditions are:

• Entry is blank

• All numeric

(3) Invalid condition is one of the following:

• Field 01-S is other than nine numeric digits

• Has all zeroes

• Has all nines

(4) Correct Field 01-S as follows:

(1) Field 01-T is a 10-digit field that may be present.

(2) Valid characters are alpha (a-z) or numeric (0-9) or a combination of alpha and numeric characters, not to exceed 10 characters or blank.

(3) Field 01-T is invalid when the Preparer Phone Number is other than 10 alpha/numeric.

(4) Delete the entry if the phone number is invalid, illegible or cannot be located.

(1) Field 01-U is a seven-position field that must be present on Line 3a.

(2) Valid characters are numeric 0-9.

(3) Invalid conditions:

• A non-numeric character is in the field.

• The field is blank.

(4) Corrections procedures:

(5) If Form 8804 is a zero-tax return (no income to report) and no data appears in Fields 02-A through 02-P, then enter a "1" in Fields 01-U, 02-A and 02-D.

(1) Field 01-V is a seven-position field that must be present on Line 3b.

(2) If Field 01-V (Line 3b) is blank and Code and Edit (C&E) determined the Form 8805 were not attached, then use the International Correspondence Action Sheet Letter 3104C prepared by C&E to correspond for Form 8805.

(3) Valid characters are numeric 0-9.

(4) Invalid conditions:

• A non-numeric character is in the field.

• The field is blank.

(5) Corrections procedures:

(6) If Form 8804 is a zero-tax return (no income to report) and no data appears in Fields 02-A through 02-T, then enter a "1" in Fields 01-V, 02-A and 02-D. Do not correspond for Form 8805.

(1) Field 01-W is a seven-position field that may or may not be present on Line 3c.

(2) Valid characters are numeric 0-9.

(3) Invalid conditions:

• A non-numeric character is in the field.

• The field is blank.

(4) Corrections procedures (Do not correspond for this field):

(1) Field 01-X is an eight-position field. Field 01-X is automatically generated unless there is a “Y” or “F” in field 01-L (CCC).

(2) Edit the Tax Year Beginning date at the upper left, just above Form 8804’s name.

(3) If the return is a final or short period, and beginning tax period is present on return, then enter beginning tax period in YYYYMMDD format.

(4) If the return is a final or short period, and the day is not present in the beginning tax period, then enter “01” for the day.

(5) If the return is a final or short period, and Beginning Tax Period is not present, then determine the beginning tax period from the ending tax period.

(6) Since the Field 01-X is automatically generated and a “Y” or “F” is entered in Field 01-L (CCC), Field 01-X will need to be adjusted as well.

(1) Field 02-A is a 12-position field that may have an entry. Any entry present on Line 4a must be in dollars and cents.

(2) The valid characters are numeric (0-9), or blank.

(3) The amount may only be "positive."

(4) If the amount is actually negative, accept it (make no change to Field 02-A).

(5) If the entry is $2.00 or less, then leave it alone.

(6) If there is a positive entry in Field 02-D, then an amount must be present in Field 02-U.

(1) Field 02-B is a 12-position field that may have an entry. Any entry present on Line 4b must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-B is a positive entry.

(4) A significant entry in Field 02-B reduces the amount reported in Field 02-A, and the end result appears in Field 02-D.

(1) Field 02-C is a 12-position field that may have an entry. Any entry present on Line 4c must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-C is positive only.

(4) A significant entry in Field 02-C reduces the amount reported in Field 02-A, and the end result will appear in Field 02-D.

(1) Field 02-D is a 12-position field that may have an entry. Any entry present on Line 4d must be in dollars and cents.

(2) Valid characters are numeric (0-9) or blank.

(3) The amount can be "positive or negative."

(4) If Field 02-D is zero or blank and appears as a consistency error, then enter "$1" in Field 02-A to resolve the error.

(5) A consistency check of Field 02-D is systemically performed to verify Field 02-D by subtracting Fields 02-B and 02-C from Field 02-A. The result must match the entry in Field 02-D. If not correct, then Field 02-D will underprint.

(6) The program will use the underprint amount to calculate the 21 percent tax in Field 02-U. However, if the tax in Field 02-U is based on the $1, then no tax is assessed.

(1) Field 02-E is a 12-position field that may have an entry. Any entry present on Line 4e must be in dollars and cents.

(2) Valid characters are numeric (0-9) or blank.

(3) The amount may only be "positive."

(4) If the amount is actually negative, accept it (make no change to Field 02-A).

(5) If the entry is $2.00 or less, then leave it alone.

(6) If there is a positive entry in Field 02-H, then an amount must be present in Field 02-V.

(1) Field 02-F is a 12-position field that may have an entry. Any entry present on Line 4f must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-F is a positive entry.

(4) A significant entry in Field 02-F reduces the amount reported in Field 02-E, and the end result appears in Field 02-H.

(1) Field 02-G is a 12-position field that may have an entry. Any entry present on Line 4g must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-G is positive only.

(4) A significant entry in Field 02-G reduces the amount reported in Field 02-E, and the end result will appear in Field 02-H.

(1) Field 02-H is a 12-position field that may have an entry. Any entry present on Line 4h must be in dollars and cents.

(2) Valid characters are numeric (0-9) or blank.

(3) The amount can be "positive or negative."

(4) If Field 02-H is zero or blank and appears as a consistency error, then enter "$1" in Field 02-E to resolve the error.

(5) A consistency check of Field 02-H is systemically performed to verify Field 02-H by subtracting Fields 02-F and 02-G from Field 02-E. The result must match the entry in Field 02-H. If not correct, then Field 02-H will underprint.

(6) The program will use the underprint amount to calculate the 37 percent tax in Field 02-V. However, if the tax in Field 02-V is based on the $1, then no tax is assessed.

(1) Field 02-I is a 12-position field that may have an entry. Any entry present on Line 4i must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) The amount may only be "positive."

(4) If the amount is actually negative, accept it (make no change to Field 02-I).

(5) If the entry is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, then leave it alone.

(6) If there is a positive entry in Field 02-L, then an amount must be present in Field 02-W. A positive entry is an amount greater than zero.

(1) Field 02-J is a 12-position field that may have an entry. Any entry present on Line 4j must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-J is a positive entry.

(4) A significant entry in Field 02-J reduces the amount reported in Field 02-I, and the end result will appear in Field 02-L.

(1) Field 02-K is a 12-position field that may have an entry. Any entry present on Line 4k must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-K is positive only.

(4) A significant entry in Field 02-K reduces the amount reported in Field 02-I, and the end result will appear in Field 02-L.

(1) Field 02-L is a 12-position field that may have an entry. Any entry present on Line 4l must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) The amount can be "positive or negative."

(4) If Field 02-L is zero or blank and appears as a consistency error, then enter "$1" in Field 02-I to resolve the error.

(5) A consistency check of Field 02-L is systemically performed to verify Field 02-L by subtracting Fields 02-J and 02-K from Field 02-I. The result must match the entry in Field 02-L. If not correct, then Field 02-L underprints.

(6) The program uses the underprint amount to calculate the 28 percent tax in Field 02-W. However, if the tax in Field 02-W is based on the $1, then no tax is assessed.

(1) Field 02-M is a 12-position field that may have an entry. Any entry present on Line 4m must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) If Field 02-M is zero and appears as a consistency error, then enter "$1" in Field 02-M to resolve the error.

(4) The amount cannot be "negative."

(5) If the amount is actually a negative, then enter "$1" in Field 02-M.

(6) If the entry is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡; Leave it alone.

(7) If there is a positive entry in Field 02-P, then an amount must be present in Field 02-X. A positive entry is an amount greater than zero.

(1) Field 02-N is a 12-position field that may have an entry. Any entry present on Line 4n must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-N is a positive entry.

(4) A significant entry in Field 02-N reduces the amount reported in Field 02-M, and the end result will appear in Field 02-P.

(1) Field 02-O is a 12-position field that may have an entry. Any entry on Line 4o must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-O is positive only.

(4) A significant entry in Field 02-O reduces the amount reported in Field 02-M, and the end result will appear in Field 02-P.

(1) Field 02-P is a 12-position field that may have an entry. Any entry present on Line 4p must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) The amount can be "positive" or "negative."

(4) If Field 02-P is zero or blank and appears as a consistency error, then enter "$1" in Field 02-M to resolve the error.

(5) A consistency check of Field 02-P is systemically performed to verify Field 02-P by subtracting Fields 02-N and 02-O from Field 02-M. The result must match the entry in Field 02-P. If not correct, then Field 02-P underprints.

(6) The program uses the underprint amount to calculate the 25 percent tax in Field 02-X. However, if the tax in Field 02-X is based on the $1, then no tax is assessed.

(1) Field 02-Q is a 12-position field that may have an entry. Any entry present on Line 4q must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) If Field 02-Q is zero and appears as a consistency error, then enter "$1" in Field 02-Q to resolve the error.

(4) The amount may only be "positive."

(5) If the amount is actually negative, accept it (make no change to Field 02-Q).

(6) If the entry is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, then leave it alone.

(7) If there is a positive entry in Field 02-T, then an amount must be present in Field 02-Y. A positive entry is an amount greater than zero.

(1) Field 02-R is a 12-position field that may have an entry. Any entry present on Line 4r must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-R is a positive entry.

(4) A significant entry in Field 02-R reduces the amount reported in Field 02-Q, and the end result will appear in Field 02-T.

(1) Field 02-S is a 12-position field that may have an entry. Any entry on Line 4s must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-S is positive only.

(4) A significant entry in Field 02-S reduces the amount reported in Field 02-Q, and the end result will appear in Field 02-T.

(1) Field 02-T is a 12-position field that may have an entry. Any entry present on Line 4t must be in dollars and cents.

(2) The valid characters are numeric (0-9) or blank.

(3) The amount can be "positive or negative."

(4) If Field 02-T is zero or blank and appears as a consistency error, then enter "$1" in Field 02-Q to resolve the error.

(5) A consistency check of Field 02-T is systemically performed to verify Field 02-T by subtracting Fields 02-R and 02-S from Field 02-Q. The result must match the entry in Field 02-T. If not correct, then Field 02-T underprints.

(6) The program uses the underprint amount to calculate the 20 percent tax in Field 02-Y. However, if the tax in Field 02-Y is based on the $1, then no tax is assessed.

(1) Field 02-U is a 12-position money field that may have an entry on Line 5a.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-U cannot have a negative entry below ".00".

(4) The computer uses the underprint of Field 02-D to calculate the tax for Field 02-U.

(5) If Field 02-D is actually a negative amount, then correct Field 02-U by entering "0". Use Action Code "6".

(6) If the taxpayer enters an amount in Field 02-U, and did not enter a source amount in Field 02-D, then back into the tax amount using the correct tax rate to calculate the source amount and then enter it in Field 02-A and 02-D.

(7) If the taxpayer has filed a fiscal return (201801 through 201811), then the tax needs to be figured at a blended rate. If incorrect, then Field 02-U must be corrected. Compute Gross 1446 Tax using the table below. Multiply Field 02-D by the blended rate for the Tax Period of the return.

(1) Field 02-V is a 12-position filed that may have an entry on Line 5b.

(2) The valid characters are numeric (0-9) or blank

(3) Field 02-V cannot have a negative entry below ".00".

(4) The computer uses the underprint of Field 02-H to calculate the tax for Field 02-V.

(5) If Field 02-H is actually a negative amount, then correct Field 02-V by entering "0". Use Action Code "6".

(6) If the taxpayer enters an amount in Field 02-V, and did not enter a source amount in Field 02-H, then back into the tax amount using the correct tax rate to calculate the source amount and then enter it in Field 02-E and 02-H.

(1) Field 02-W is a 12-position money field that may have an entry on Line 5c.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-W cannot have a negative entry below ".00".

(4) The computer uses the underprint of Field 02-L to calculate the tax for Field 02-W.

(5) If Field 02-L is actually a negative amount, then correct Field 02-W by entering "0". Use Action Code "6".

(6) If the taxpayer enters an amount in Field 02-W, and did not enter a source amount in Field 02-L, then back into the tax amount using the correct tax rate to calculate the source amount and then enter it in Field 02-I and 02-L.

(1) Field 02-X is a 12-position money field that may have an entry on Line 5d.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-X cannot have a negative entry below ".00".

(4) The computer uses the underprint of Field 02-P to calculate the tax for Field 02-X.

(5) If Field 02-P is actually a negative amount, then correct Field 02-X by entering "$.00". Use Action Code "6".

(6) If the taxpayer enters an amount in Field 02-X, and did not enter a source amount in Field 02-P, then back into the tax amount using the correct tax rate to calculate the source amount and then enter it in Fields 02-M and 02-P.

(1) Field 02-Y is a 12-position money field that may have an entry on Line 5e.

(2) The valid characters are numeric (0-9) or blank.

(3) Field 02-Y cannot have a negative entry below ".00".

(4) The computer uses the underprint of Field 02-T to calculate the tax for Field 02-Y.

(5) If Field 02-T is actually a negative amount, then correct Field 02-Y by entering "0". Use Action Code "6".

(6) If the taxpayer enters an amount in Field 02-Y, and did not enter a source amount in Field 02-T, then back into the tax amount using the correct tax rate to calculate the source amount and then enter it in Fields 02-Q and 02-T.

(1) Field 02-Z is a 12-position money field, that may have an entry on Line 5F.

(2) The valid characters are numeric (0-9) or blank.

(3) The amount is entered in dollars and cents.

(4) Field 02-Z cannot be "negative." Review Lines 4d, 4h, 4l, 4p and 4t (Fields 02-D, 02-H, 02-L, 02-P and 02-T) of Form 8804 to make sure they were not transcribed in error. Use Action Code "6" to correct any error. If the taxpayer entered negative amounts, then change them to zero.

(5) If on the RAW register the aggregate underprint sum of Fields 02-U through 02-Y is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in difference from the taxpayer's amount, then enter the corrected total tax in the "Manual Correction Field," which is Field 03-N.

(6) If Field 02-Z is blank, and a positive entry appears in Fields 02-D, 02-H, 02-L, 02-P or 02-T then enter the correct tax amount shown on the computer underprint in Field 03-L.

(1) Field 03-A is a 12-position field that may be present.

(2) The valid characters are numeric (0-9) or blank and must be entered in dollars and cents (positive).

(3) Field 03-A is located on Line 6a and it lists the total amount of pre-paid credits, payments made, or credit elected (from the previous tax year). Pre-paid credits/payments appear in the tax module account as a TC 670, or a TC 710/716.

(4) Review the entries on Form 8804 Lines 6a, 6b, 6c, 6d, 6e, 6f and 6g and check IDRS for any payments. If the payments on IDRS match, delete the entry in Fields 03-B, 03-C, 03-D and/or 03-E and enter in Field 03-A. Use Action Code "6".

(5) Do not enter more than the amount written by the taxpayer on Lines 6b, 6c, 6d, 6e, 6f and/or 6g, even though IDRS may reflect more money. Use Action Code "6".

(6) The ≡ ≡ ≡ ≡ ≡ tolerance doesn't apply to Line 6a.

(1) Field 03-B is a 12-position field that may be present. Any entry present must be in dollars and cents.

(2) Field 03-B is located on Line 6b and includes the total amount withheld from Form 8805. It will post on IDRS with a TC 766 (Credit Reference Number (CRN) 331).

(3) The valid characters are numeric (0-9) or blank and must be positive.

(4) If the entry has an invalid character, correct the entry by deleting the incorrect entry and entering the correct amount (dollars and cents) reflected on Form 8804, Line 6b by verifying it against the attached Form(s) 8805. Use AC "6".

(5) If an entry appears in Field 03-B, and Form 8805 is not attached to support the withholding amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ claimed, review the entries on Form 8804 Lines 6a, 6b, 6c, 6d, 6e, 6f and 6g and check IDRS for any payments (TC 670, 710/716). If the payments on IDRS match, delete the entry in Field 03-B and enter in Field 03-A. Use AC "6".

(6) If documentation is not attached to support the withholding amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and there are no payments on the tax module, correspond for the missing documentation via IDRS Letter 3104C.

(7) If an entry appears in Field 03-B, and it is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8805 is not attached to support the withholding amount, allow the credit. Use AC "0".

(8) If the taxpayer responds with a copy of Form 8805 and it matches the description in Figure 3.22.15-5a, add the amount on Form(s) 8805 lines 10 and 13, and enter the total in Field 03-B. Use AC "6".

(9) Delete or reduce the amount in Field 03-B if the taxpayer responds with a copy of Form 8805 and it doesn't match the description in Figure 3.22.15-5a. Use AC "6" and enter TPNC 02.

(10) If the taxpayer doesn’t reply to IDRS Letter 3104C or doesn’t provide supporting documentation to substantiate the withholding amount, delete the entry in Field 03-B, use AC "6" and enter TPNC 02.

(1) Field 03-C is a 12-position field that may be present. Any entry present must be in dollars and cents.

(2) Field 03-C is located on Line 6c and includes the total amount withheld from Form 1042-S. It will post on IDRS with a TC 766 (Credit Reference Number (CRN) 330).

(3) The valid characters are numeric (0-9) or blank and must be positive.

(4) If the entry has an invalid character, correct the entry by deleting the incorrect entry and entering the correct amount (dollars and cents) reflected on Form 8804, Line 6c by verifying it against the attached Form 1042-S. Use AC "6".

(5) If an entry appears in Field 03-C, and Form 1042-S is not attached to support the withholding amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, review the entries on Form 8804 Lines 6a, 6b, 6c, 6d, 6e, 6f and 6g and check IDRS for any payments (TC 670, TC 710/716). If the payments on IDRS match, delete the entry in Field 03-C and enter in Field 03-A. Use AC "6".

(6) If documentation is not attached to support the withholding amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and there are no payments on the tax module, correspond for the missing documentation via IDRS Letter 3104C.

(7) If an entry appears in Field 03-C, and it is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 1042-S is not attached to support the withholding amount then allow the credit. Use AC "0".

(8) If the taxpayer responds with a copy of Form(s) 1042-S, enter the amount from Line 9, Form 1042-S (or totals of all Lines 9, if more than one Form 1042-S) in Field 03-C. Use AC" 6".

(9) If the taxpayer doesn’t reply to IDRS Letter 3104C or doesn’t provide supporting documentation to substantiate the withholding amount, delete the entry in Field 03-C, use AC "6" and enter TPNC 02.

(1) Field 03-D is a 12-position field that may be present. Any entry present must be in dollars and cents.

(2) Field 03-D is the total amount of withholding from Form 8288-A found on Line 6d of Form 8804. It will post on IDRS with a TC 766 (Credit Reference Number (CRN) 332).

(3) The valid characters are numeric (0-9) or blank and must be positive.

(4) If the entry has an invalid character, correct the entry by deleting the incorrect entry and entering the correct amount (dollars and cents) reflected on Form 8804, Line 6d by verifying it against the attached Form 8288-A. Use AC "6".

(5) If an entry appears in Field 03-D, and no Form 8288-A is not attached to support the withholding amount claimed, review the entries on Form 8804 Lines 6a, 6b, 6c, 6d, 6e, 6f and 6g and check IDRS for any payments (TC 670, 710/716). If the payments on IDRS match, delete the entry in Field 03-D and enter in Field 03-A. Use AC "6".

(6) If documentation is not attached to support the withholding amount (e.g., Form 8288-A or settlement statement) and there is no payment on the tax module, correspond for the missing documentation via IDRS Letter 3104C.

(7) Reply to 3104C Correspondence:

• If the taxpayer responds with a copy of Form 8288-A(s) or a copy of the settlement statement to support the FIRPTA withholding amount, enter the amount from Line 2 (only after it is credit verified) in Field 03-D. Use AC "6".

• If the taxpayer responds with a copy of Form 8805 instead of Form 8288-A and it does not match the description in Figure 3.22.15-5a, delete or reduce the amount in Field 03-D. Use AC "6" and assign TPNC 02.

• If the taxpayer responds with a copy of Form 8805 instead of Form 8288-A or 1042-S and it does match the description in Figure 3.22.15-5a, delete or reduce the amount in Field 03-D and enter the amount in Field 03-B. Use AC "6".

• If the taxpayer doesn’t reply to IDRS Letter 3104C or doesn’t provide supporting documentation to substantiate the withholding amount, delete the entry in Field 03-D, use AC "6" and enter TPNC 02.

(1) Field 03-E is a 12-position field that may be present. Any entry present must be in dollars and cents.

(2) Field 03-E is located on Line 6e and includes the total amount withheld from Form 1042-S. It will post on IDRS with a TC 766 (Credit Reference Number (CRN) 333).

(3) The valid characters are numeric (0-9) or blank and must be positive.

(4) If the entry has an invalid character, correct the entry by deleting the incorrect entry and entering the correct amount (dollars and cents) reflected on Form 8804, Line 6e by verifying it against the attached Form 1042-S. Use AC "6".

(5) If an entry appears in Field 03-E, and Form 1042-S is not attached to support the withholding amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, review the entries on Form 8804 Lines 6a, 6b, 6c, 6d, 6e, 6f and 6g and check IDRS for any payments (TC 670, 710/716). If the payments on IDRS match, delete the entry in Field 03-E and enter in Field 03-A. Use AC "6".

(6) If documentation is not attached to support the withholding amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and there are no payments on the tax module, correspond for the missing documentation via IDRS Letter 3104C.

(7) If an entry appears in Field 03-E, and it is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 1042-S is not attached to support the withholding amount then allow the credit. Use AC "0".

(8) If the taxpayer doesn’t reply to IDRS Letter 3104C or doesn’t provide supporting documentation to substantiate the withholding amount, delete the entry in Field 03-E, use AC "6" and enter TPNC 02.

(9) Reply to 3104C Correspondence:

• If the taxpayer responds with a copy of Form(s) 1042-S, enter the amount from Line 9 (or totals of all Line 9 if more than one 1042-S) in Field 03-E. Use AC "6".

• If the taxpayer responds with a copy of Form 8805 instead of Form 1042-S and it does not match the description in Figure 3.22.15-5a, delete or reduce the amount in Field 03-E. Use AC 6 and enter TPNC 02.

  Note: Check the tax period on IDRS (MFT 08) to see if the taxpayer made any payments, because it may well be the taxpayer erroneously entered the payment(s) amount on Line 6e (Field 03-E) instead of Line 6a (Field 03-A).

• If the taxpayer responds with a copy of Form 8805 instead of Form 1042-S and it does match the description in Figure 3.22.15-5a, delete or reduce the amount in Field 03-E and enter the amount in Field 03-B. Use AC "6".

(1) Field 03-F is a 12-position field that may be present. Any entry present must be in dollars and cents.

(2) Field 03-F is the total amount of withholding from Form 8288-A found on Line 6f of Form 8804. It will post on IDRS with a TC 766 (Credit Reference Number (CRN) 332).

(3) The valid characters are numeric (0-9) or blank and must be positive.

(4) If the entry has an invalid character, correct the entry by deleting the incorrect entry and entering the correct amount (dollars and cents) reflected on Form 8804, Line 6f by verifying it against the attached Form 8288-A. Use AC "6".

(5) If an entry appears in Field 03-F, and Form 8288-A is not attached to support the withholding amount claimed, review the entries on Form 8804 Lines 6a, 6b, 6c, 6d, 6e, 6f and 6g, check IDRS for any payments (TC 670, 710/716). If the payments on IDRS match, delete the entry in Field 03-F and enter in Field 03-A. Use AC "6".

(6) If documentation is not attached to support the withholding amount (e.g., Form 8288-A or settlement statement) and there is no payment on the tax module, correspond for the missing documentation via IDRS Letter 3104C.

(7) Reply to 3104C Correspondence:

• If the taxpayer responds with a copy of Form 8288-A(s) or a copy of the settlement statement to support the FIRPTA withholding amount, enter the amount from Line 2 (only after it is credit verified) in Field 03-F. Use AC "6".

• If the taxpayer responds with a copy of Form 8805 instead of Form 8288-A and it does not match the description in Figure 3.22.15-5a, delete or reduce the amount in Field 03-F. Use AC "6" and assign TPNC 02.

• If the taxpayer responds with a copy of Form 8805 instead of Form 8288-A or 1042-S and it does match the description in Figure 3.22.15-5a, delete or reduce the amount in Field 03-D and enter the amount in Field 03-B. Use AC "6".

• If the taxpayer doesn’t reply to IDRS Letter 3104C or doesn’t provide supporting documentation to substantiate the withholding amount, delete the entry in Field 03-F, use AC "6" and enter TPNC 02.

(1) Field 03-G is a 12 -position field that may be present. Any entry present must be in dollars and cents.

(2) Field 03-G is located on Line 6e and includes the total amount withheld from Form 1042-S. It will post on IDRS with a TC 766 (Credit Reference Number (CRN) 333).

(3) The valid characters are numeric (0-9) or blank and must be positive.

(4) If the entry has an invalid character, correct the entry by deleting the incorrect entry and entering the correct amount (dollars and cents) reflected on Form 8804, Line 6g by verifying it against the attached Form 1042-S. Use AC "6".

(5) If an entry appears in Field 03-G, and Form 1042-S is not attached to support the withholding amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, review the entries on Form 8804 Lines 6a, 6b, 6c, 6d, 6e, 6f and 6g, and check IDRS for any payments (TC 670, 710/716). If the payments on IDRS match, delete the entry in Field 03-G and enter in Field 03-A. Use AC "6".

(6) If documentation is not attached to support the withholding amount claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and there are no payments on the tax module, correspond for the missing documentation via IDRS Letter 3104C.

(7) If an entry appears in Field 03-G, and it is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 1042-S is not attached to support the withholding amount, allow the credit. Use AC "0".

(8) If the taxpayer doesn’t reply to IDRS Letter 3104C or doesn’t provide supporting documentation to substantiate the withholding amount, delete the entry in Field 03-G, use AC "6" and enter TPNC 02.

(9) Reply to 3104C Correspondence:

• If the taxpayer responds with a copy of Form(s) 1042-S, enter the amount from Line 9 (or totals of all Line 9 if more than one 1042-S) in Field 03-G. Use AC "6".

• If the taxpayer responds with a copy of Form 8805 instead of Form 1042-S and it does not match the description in Figure 3.22.15-5a, delete or reduce the amount in Field 03-G. Use AC 6 and enter TPNC 02.

  Note: Check the tax period on IDRS (MFT 08) to see if the taxpayer made any payments, because it may well be the taxpayer erroneously entered the payment(s) amount on line 6g (Field 03-G) instead of line 6a (Field 03-A).

• If the taxpayer responds with a copy of Form 8805 instead of Form 1042-S and it does match the description in Figure 3.22.15-5a, delete or reduce the amount in Field 03-G and enter the amount in Field 03-B. Use AC "6".

• If the taxpayer doesn’t reply to IDRS Letter 3104C or doesn’t provide supporting documentation to substantiate the withholding amount, delete the entry in Field 03-G, use AC "6" and enter TPNC 02.

(1) Field 03-H is a 12 -position field that may be present. Any entry present must be in dollars and cents.

(2) The field is located on Line 7.

(3) The valid characters are numeric (0-9) or blank and must be positive.

(4) The entry on this line is the total of the credit amounts entered on Lines 6a, 6b, 6c, 6d, 6e, 6f and 6g.

(5) If the total of Field 03-H does not agree with the entries in Fields 03-A, 03-B, 03-C, 03-D, 03-E, 03-F and 03-G, it will underprint.

(6) If there is an actual error in the total credit amount, assign the proper Taxpayer Notice Code (TPNC).

(1) The Total Payment Underprint appears on the error register when the total sum in Field 03-H does not match the total from Fields 03-A, 03-B, 03-C, 03-D, 03-E, 03-F and 03-G.

(2) If Field 03-H is in error, verify the amounts on Lines 6a, 6b, 6c, 6d, 6e, 6f, and 6g of Form 8804. If no error can be found, use AC "0". Otherwise, if an error exists, then use the "Total Payments - Computer Underprint" amount. Enter AC "1" and the proper TPNC.

(1) Field 03-I is a 12 -position field for which an entry may be present. Any entry present must be in dollars and cents.

(2) Valid characters are numeric (0-9) or blank.

(3) If Line 8 is deleted from Field 03-I, enter the amount from Line 8 into Field 03-I and edit AC "6" to the left of Section 02.

(4) The partnership may or may not attach Form 8804 Schedule A to support the entry in Field 03-I.

(1) Field 03-J is a 12 -position field that may be present. Any entry must be dollars and cents.

(2) This field shows the computer calculation of the Balance Due or Overpayment amount from Line 10 or 13 on Form 8804.

(3) The valid characters are numeric (0-9) or blank.

(4) A balance due is entered with a "+" field breaker. It is found on Line 10.

(5) An overpayment is entered with a "-" field breaker. It is found on Line 13.

(6) If the balance due or overpayment on the error register do not agree with the taxpayer's amount, it will underprint if the difference ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(7) If a refund had been transcribed as a balance due or vice-versa, correct the field breaker before sending a TPNC so figures on the notice are correct.

(1) The Balance Due/Overpayment Computer Underprint appears on the error register when the total sum in Field 03-J does not match the sum of Fields 02-Z and 03-I minus Field 03-H. Use AC "1" to send TPNC 03.

(2) If the error was caused by Fields 03-B, 03-C,03-E, or 03F, make sure the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ amount was considered. If not, then do so by correcting Fields 03-B, 03-C, 03-E or 03-G. Use Action Code "6".

(3) If the error was caused by Field 02-Z then make sure the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ tax tolerance amount was considered. If not, then do so by correcting Field 02-Z. Use Action Code "6".

(1) Field 03-K is a 12-position field that may be present. Any entry must be in dollars and cents.

(2) The valid characters are numeric (0-9) and must be positive only.

(3) Field 03-K is located on Line 12.

(4) Field 03-K can only be less than or to equal Field 03-H.

(1) Field 03-L is a 12 -position field that may be present. Any entry must be in dollars and cents.

(2) The valid characters are numeric (0-9) and must be positive only.

(3) Field 03-L is located on Line 15.

(4) The entry in this field directs the computer to transfer all or part of the overpayment to the module for the following year. On the current year module, this amount appears with a TC 836 (computer generated transaction), and on next year’s module it will appear with a TC 716.

(5) If there is a math error that changes the overpayment to a balance due, delete the amount in Field 03-L if not sending a TPNC. If you do send a TPNC, this correction is not necessary.

(1) Field 03-M is a one-position field that may be present.

(2) The valid characters are "1" and blank.

(3) Invalid conditions:

• There is an entry other than "1" or blank.

• There is an entry in the field that was transcribed (i.e., it is present on a RAW register).

(4) This field is entered only by SCRS or Rejects. It is not previously transcribed by ISRP.

(5) A "1" is entered into this field only if there is a refund of one million dollars or more (Field 03-J).

(6) Field 03-M must be blank, if there is no refund or the refund is less than one million dollars.

(1) Field 03-N is a 12-position field. It is entered in dollars and cents and must be positive. It is used when the computer cannot arrive at the correct amount of total tax.

(2) The manually verified tax field is entered on the dotted lines to the left of Line 5f (total tax) on Page 2. This amount is entered only by SCRS or Reject employees. It is not previously transcribed by ISRP.