3.12.15. Return of Partnership Income

(1) The purpose of Error Resolution is to resolve validity errors, field errors, consistency errors, and math errors in returns and other documents for posting to the Master File. Records fall out in Error Resolution System (ERS) due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields. The GMF programming causes a record to fall out to ERS if it fails to meet certain criteria, including:

• Invalid characters in a field (e.g., numeric instead of alpha).

• Invalid length of field (e.g., EIN with 8 digits instead of 9).

• Invalid codes in field (valid Action Codes, Audit Codes, etc. are programmed in GMF).

• Consistency errors - Any valid field used in any computation where the result is inconsistent with (or contradictory to) any other valid field.

• Math errors - computer does math computation and it differs from the taxpayer’s amount.

• Invalid Tax Periods and eligibility for certain credits.

(2) Employees use ERS to correct these conditions and when necessary, use Integrated Data Retrieval System (IDRS) to research.

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

• IRC 6031(a)

• IRC 6213(b)

(2) All Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements.

(1) The Campus Director is responsible for monitoring operational performance for their campus.

(2) The Operations Manager is responsible for monitoring operational performance for their operation.

(3) The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

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

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

(2) Program Effectiveness is measured using the following:

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial reviews

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

(1) For Terms, Definitions and Acronyms See Exhibit 3.12.15-27.

(1) The following table lists related sources:

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

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

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

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

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

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

(2) Expeditious processing of refund returns is critical if the 45-day period is about to expire.

(3) Taxpayer Advocate Service (TAS) Manual Refunds - any return hand walked by TS Submission Processing (SP) liaison for Taxpayer Advocate Service my be processed by a Lead Tax Examiner or designated tax examiner using the following procedures in the order listed:

1. Computer Condition Code (CCC) "O" must be edited on the return and entered in Field 01CCC.

2. Delete CCC "Y" from Field 01CCC.

3. Continue processing the return according to Error Code procedures.

(4) Correspondence: If required for missing or incomplete information, follow the procedures below:

1. Complete the correct correspondence action sheet and request all missing or incomplete information.

2. Inform the TS SP liaison of all information that is being requested.

3. Suspend (SSPND) with the correct suspense code and give the return back to the TS SP liaison.

   Note: The TS SP liaison will contact the Taxpayer Advocate to obtain the required information need to complete processing.

(5) More suspense action needed: If the return requires other suspense action, then follow procedures below:

1. Initiate suspense (SSPND) with Action Code according to IRM procedures.

2. Inform the TS SP liaison to reason for the action taken,

3. Give the return back to the liaison.

Note: The TS liaison will contact Taxpayer Advocate, who in turn will that the necessary actions to complete the processing of te return.

(6) Assigning Taxpayer Notice Codes (TPNCs/Math Error). When a math error is identified, do the following:

1. Assign the TPNC according to IRM procedures.

2. After all TPNCs have been assigned. inform the TS SP liaison of the TPNCs issued.

3. Suspend (SSPND) with the correct Action Code (suspense must be done at the generated point of error and give the return to the liaison).

(7) When Balance Due/Overpayment Math Error Code (EC) generates do the following:

1. Make screen print of the Error Code Display, highlight the Computer-Generated Refund Amount, and attach the print to the front of the return with the entity portion of the return visible.

2. Enter the amount the taxpayer claimed as the amount they requested to be refunded back in to Field 07B/R.

3. If Balance Due/Overpayment Math Error Code regenerates because the taxpayer made a math error when computing their refund, then make a screen print of the Error Code Screen Display and highlight the computer generated amount. Attach the print to the front of the return keeping the entity area visible and assign the correct TPNC.

4. Once the return completes processing, give the return Form 12412, Operations Assistance Request (OAR), and the ERS screen print to the TS SP liaison.

(8) Rejects Suspense Procedures:

1. Follow specific instructions give by TS SP liaison. Correspond and assign correct TPNCs as directed.

2. Refer to paragraphs (6) and (7) above.

(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 cannot be taken to resolve the taxpayer's issue the same day.

(4)  The definition of "Same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution":

• The issue can be resolved within 24 hours.

• The IRS takes steps within 24 hours to resolve the taxpayer’s issue.

(5) When making a TAS referral, use Form 911, and forward to TAS following your local procedures.

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

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

(2) All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

1. Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

2. Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and badge identification (ID Card) number.

3. Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

4. Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

(3) When 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. They will provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

(5) It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) their badge identification (ID Card) number on the first contact.

(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 3.12.15-24, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

(2) Review the return to decide whether it appears to be a frivolous return. Frivolous Return Criteria

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

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

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

(1) All Form 1065 Error Screen displays will appear as follows:

• Tax Class - 2

• Document Code 65 -Form 1065

• Document Code 67 -Form 1065 (Publicly Traded Partnerships or "PTP")

(1) Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction. Once the Error Resolution Tax Examiner accesses the record and it is displayed on the screen, it must be:

1. Corrected in full by correcting errors in editing or transcription and/or correcting math errors.

2. Placed in suspense for more information.

3. Rejected from pipeline processing.

(2) Each day the Error Inventory Report will be furnished showing:

1. Blocks, by the block control number, and block Document Locator Number (DLN) in DLN order.

2. Each batch will be on a separate page.

3. Blocks received from Block Out of Balance (BOB) Correction will be listed separately.

4. A copy of the report must be on the carts of documents and used as a charge-out to determine when a cart is completed.

5. The first line of the Error Inventory Report will show the number of working days the records on that page have been in the Error Inventory. This will enable work left from a previous day to have priority.

(1) Each day the Workable Suspense Inventory Report will be furnished showing the records by Program in DLN order for various status situations. Separate pages for each program, with totals, will be given.

(2) The first line of the report will show the number of working days that the records have been in the Workable Suspense Inventory. This will allow priority to be given to the older work.

(1) All Form 1065 Error Screen Displays will display as follows:

• Each field is identified by an Alpha/Numeric field Designator (AFD) displayed before the field.

• Fields are displayed with no breaker.

• Negative values are shown by a minus ("-") sign following the amount.

• Decimal points are displayed beginning in the left position.

• Leading zeroes in amount fields are suppressed and the significant digits are displayed beginning in the left position.

• If more than one amount field of a record is to be shown, the unit positions are aligned beneath one another.

• Sufficient leading blanks are displayed preceding the shorter amounts so the unit position of these amounts is directly in line with the unit position of the longest amount.

• The cents digits are not displayed for "Dollars Only" fields. So that the unit position will remain in line with the other fields of the section, two asterisks ("**") are displayed in the cents position of the dollars only field.

(2) Corrections are entered starting with the left-most position of the field. Blank-out unused positions.

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

• It is not necessary to enter the decimal point. If the decimal point is entered, it will be ignored.

• A minus sign ("-") must be entered as the last numeric if the amount is negative.

(3) Be careful not to enter more than the number of positions allowed for a particular field. If more data is entered, the overflow characters will display on the screen but are dropped when the field is added to the record. This is especially important for the Taxpayer Identification Number (TIN), name and address.

(4) Corrections can be made to a displayed field by overlaying only the digits in error and not re-entering the entire field. It is not necessary to eliminate the decimal point when correcting in this manner.

(5) If it is necessary to add a missing section:

1. Transmit with Command Code (CC) GTSEC, followed by the desired section Number.

2. When the empty section format is displayed, enter the missing data in the proper fields and transmit with CC CRECT.

(6) If it is necessary to see a field or section of the record other than that shown in the display:

1. Enter CC GTSEC, followed by the desired section Number.

2. If a correction is not made to the section, drop to the bottom of the screen, and transmit.

3. Any error display not showing all fields necessary for resolution must be reported to Headquarters.

   Reminder: When transmitting corrections to a screen display, move the cursor below the last field that has data before transmitting.

(7) If it is necessary to delete a section of the record, enter CC DLSEC, followed by the desired section Number.

(8) If it is determined during the course of correcting a Priority II, III or IV Error, that more information or research is necessary to resolve the error (or if the error is rejected), enter the appropriate Action Code with either CC SSPND or RJECT.

(1) The Command Codes (CCs) needed for correcting the Error Inventory and the Workable Suspense Inventory are briefly described below. Any CC in the Employees Security Profile will be available:

(1) Action Codes (AC) are input when information is missing, or the return must be suspended from processing.

(2) For a listing of valid ERS Action Codes, See IRM 3.12.15.2.12.1, Action Code Chart, below.

(3) Document Perfection Tax Examiners will assign a three digit code to a numbered return when they determine that the document is unprocessable in its present form either because more information is necessary or some manual intervention is required. This code will be entered in the bottom left margin of the return.

(4) A Correspondence Action Sheet is used for initiating correspondence. This form is attached by Document Perfection. When routing within the campus (in-house research), an explanation concerning the missing information will need to be attached to the return.

(5) The Action Code assigned by Document Perfection will be transcribed into the record of the Form 1065.

(6) The presence of a valid Action Code other than 001 will place the record in the Suspense Inventory, either Workable or Unworkable.

(7) If the Action Code assigned by Document Perfection is invalid or incomplete, the record will be assigned to the Error Inventory for correction or deletion of the code.

(8) Only one Action Code may be assigned at one time to a record. The priority of the Action Codes will be 320, 4XX, 6XX, 3XX, 2XX.

(9) An ERS Tax Examiner may:

1. Enter an Action Code on a record.

2. Delete or correct an invalid code.

3. Overlay the present Action Code with another to either resuspend or reject from ERS. This is done by entering a valid Action Code with CC SSPND, RJECT or NWDLN. See IRM 3.12.38, Error Resolution, BMF General Instructions, for more information.

4. Enter a valid Action Code with CC SSPND to clear the record from the screen and place the record in either Workable Suspense or Unworkable Suspense.

5. Enter a valid Action Code with CC RJECT to reject the record from ERS. Generally, the Service Center Control File (SCCF), will be automatically updated for the rejected records.

(1) DO NOT correspond with the partnership when there is an indication on the return that no transactions transpired during the tax year.

(2) Correspondence records with Action Code 21X will be automatically suspended for a predetermined number of days or until the taxpayer replies, whichever is earlier.

(3) As an ERS tax examiner issuing correspondence you may either:

1. Use the IDRS Correspondence feature CC LETER, or

2. Initiate correspondence by using a Correspondence Action Sheet. An IDRS operator or typist will use the form in issuing the actual correspondence.

(4) No reply to correspondence requires a Computer Condition Code (CCC) "3" in Field 01CCC. See specific IRM procedures and No Reply Procedures in Exhibit 3.12.15-25.

(5) Most correspondence is either computer generated notice, computer generated letter or preprinted letter. All correspondence now reflects a response period within 30 days and the consequence for not replying.

(6) If special notes or letters are developed, conform to the language and response periods that are used in (4) above. Use the following guidelines:

1. All correspondence to the partnership requesting information must show that a response is required. Specify the length of time the partnership has to respond (generally 30 days) and include a statement on the action IRS will take if the response is not received timely. Be sure to include the following statement:
   "WHEN YOU REPLY, PLEASE INCLUDE YOUR TELEPHONE NUMBER AND THE MOST CONVENIENT TIME FOR US TO CALL SO WE MAY CONTACT YOU IF WE NEED MORE INFORMATION".

2. Provide for a purge date at least 10 days after the date given in the letter.

3. Whenever possible, form letter must be used to correspond with the partnership. If a C-NOTE or QUICKNOTE is used, be sure that it clearly communicates the message in simple language and has the required information.

4. When partnerships make errors that cause delays, advise the partnership that they made the error and explain what the error was that caused the delay.

5. Specific turnaround times for working correspondence as outlined in IRM 3.30.123.5, Taxpayer Correspondence, Central Authorization File (CAF), Statutes, Taxpayer Advocate, RAIVS Photocopies, and Files, must be followed and monitoring reports must be instituted to ensure that these guidelines are met.

(1) Review all attachments to determine proper disposition:

(2) Any attachment or photocopy of an attachment that is routed elsewhere must have name, address, EIN and Received Date.

(3) If Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, is attached, process as follows:

(1) The following instructions are given for these special condition returns:

• Short Length Records

• Non-ADP (Automatic Data Processing) Return

• IRC 6020(b) Returns

• Publicly Traded Partnerships (PTP) (Ogden Submission Processing Campus)

• Section 965 Returns

(1) Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the taxpayer can elect to:

• Take certain credits as a "Elective "Payment or "Deemed Payment".

• Transfer a credit to another taxpayer.

• Claim the credit as a General Business Credit.

(2) For tax periods 202201 - 202212, identify a "Elective Payment" or "Deemed Payment" when the taxpayer writes "IRA22DPE" on an attachment or on Form 1065, Line 29.

(3) When a return is identified with a "Elective Payment Election", and Code and Edit (C&E) has not done so, do the following:

1. Enter "J" in Field 01RPC.

2. Place a flag at the top of the return and attach the "IRA22EPE/TRE Reminder" sheet under the entity portion of the return.

Note: P&A will provide the pre-printed reminders for ERS to use.

3. Suspend with Action Code "450".

4. Sign the DLN out of the block using Form 1332, Block and Selection Record.

5. Give the return to the lead. The lead will place the return in the designated area for LB&I review.

(4) When a return is identified with a "Credit Transfer", and C&E has not done so, do the following:

1. Enter "K" in Field 01RPC.

2. Place a flag at the top of the return and attach the "IRA22EPE/TRE Reminder" sheet under the entity portion of the return.

Note: P&A will provide the pre-printed reminders for ERS to use

3. Suspend with Action Code "450".

4. Sign the DLN out of the block using Form 1332, Block and Selection Record.

5. Give the return to the lead. The lead will place the return in the designated are for LB&I review.

Note: A return can have both an RPC "J" and an RPC "K".

(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 ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more, 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.

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) BMF Identification (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 & 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 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) It is important to leave a legible "Working Trail", (or "Action Trail") using blue ink for those who may work 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).

(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)

• Tax Period

• Computer Condition Code (CCC)

• Received Date

• Correspondence Received Date (CRD)

  Reminder: Circle out incorrect Tax Periods, Received Dates, and Employer Identification Numbers (EINs).

(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) Description:

• All records with an invalid Action Code assigned by Document Perfection will be placed in the Error Inventory and will be displayed as a Priority I Error.

• All records with a valid Action Code will be assigned to a Suspense Inventory and will be displayed as a Priority I Error.

(2) Display - The Action Code for the record with the literal description of the action or unpostable condition will be shown.

(3) Correction Procedures - Process Priority I errors as follows:

(4) See IRM 3.12.38, BMF General Instructions, procedures for correcting Priority I Action Code errors in Suspense and Unpostable Code Correction.

(1) Most edit, missing section, and terminus errors must be eliminated by the ISRP system. However, edit errors and/or terminus errors may be present if normal ISRP validity checks have been bypassed.

(2) Edit Error - A section with an error detected by ISRP. Edit errors will be coded as follows:

• Code 1 - Split screen transmission, key verifier attempted to change Check Digit, key verifier changed 4 or more digits of TIN, or the original entry operator shows that a required section is missing.

• Code 2 - CATCH-ALL ISRP ERROR: Any error attributed to ISRP that is not described below, such as invalid characters in a field, or a combination of errors listed below.

• Code 3 - Invalid section ending point.

• Code 4 - Invalid field length.

• Code 5 - Questionable section - the ISRP operator input the same section more than once. The computer program will drop all duplicate sections and display on the error screen the first one encountered.

Note: When displayed, this type of error will display all input fields, except for the Remittance in Section 01 of the section in error. Transcribed data will be present. Computer generated data will not be present.

(3) Correction Procedures:

• Check all fields of the section when this condition exists verifying that fields are entered as coded.

  Note: Ensure the return is for the taxpayer whose name is in Section 01.

• If no correction is needed, or once the section is correct, transmit from the bottom of the screen.

• If the section needs to be deleted, enter CC DLSEC with the section number.

(4) Terminus Error - This error is caused by a section with variable length input fields that have an erroneous size field.

1. Examine all fields of the section.

2. Make the necessary corrections to the record.

3. Once the section is correct, or if no corrections are necessary, transmit from the bottom of the screen.

4. If the return was suspended prior to the beginning of a new year and the return has been reactivated, access the record using Command Code GTREC, check all fields for necessary correction, then drop the cursor to the bottom of the screen and transmit.

(5) Correction Procedures:

• CC CRECT will be displayed. If the section needs to be deleted, use CC DLSEC to delete the section.

• If no corrections are needed, transmit from the bottom of the screen.

(1) Definition - Any field that does not meet the requirement(s) for that field will be shown as a Priority III error. Consistency and or relationships with other fields will not be a factor.

(2) Some reasons for this type of error are:

• Non-numeric character in a numeric field.

• Non-alphabetical character in an alpha field.

• Blank space in a numeric field.

• Blank in the first position of an alpha field if followed by significant data.

(3) Display - Every field displayed is in error.

• All fields with a Priority III error will be displayed in columnar format in the order encountered in the record.

• 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.

(4) Correction Procedures:

1. Correct every error field displayed using the specific instructions within each section for the field in error.

2. Check the information on the source document to determine if each displayed field has been correctly coded 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. Transmit.

(1) Definition - Any valid field used in any computation in which the result is inconsistent with (or contrary to) any other valid field will have Error Code 001-999 assigned and will be shown as a Priority IV Error.

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

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

2. All errors must be resolved by either eliminating the error or entering a Clear Code.

(3) Correction Procedures:

• Correct all coding and transcription errors.

• If the data in the field is correct, enter a "C" in the Clear Code field.

(1) Section 01 has entity data and codes for returns and is required for every record.

(1) Listed below are the fields that are in Section 01 of Form 1065. See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

(2) The Field Designator, Field Length (maximum length for variable fields), Title, and Location where the data is obtained on the return is shown below:

(1) Description - Field 01NC is found in the entity section of Form 1065.

(2) Valid Condition - Field 01NC has four positions and the valid characters are alpha, numeric, hyphen, ampersand and blank.

• If a check digit is present, the computer makes an additional mathematical test of the EIN.

• 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.

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

• The first position is blank.

• The second, third or fourth position is not an alpha, numeric, hyphen, ampersand or blank.

• There are any intervening blanks between significant characters.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Correct using the Check Digit, if present. Delete the entry in Field 01NC and enter the correct Check Digit.

3. If the correct Check Digit cannot be determined, enter the Name Control.

4. If the Name Control cannot be determined, research following instructions in Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area.

(1) Description - Field 01EIN is found in the entity section of Form 1065, Box "D".

(2) Valid Condition - Field 01EIN must have nine numbers.

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

• The EIN is not numeric.

• The EIN is less than nine characters.

• The first two digits of the EIN are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

• The EIN is all zeroes or nines.

(4) Correction Procedures:

1. Correct coding and transcription errors.

If	Then
The EIN was transcribed correctly,	Research for another EIN on the return or attachments and enter in Field 01EIN.
The EIN cannot be determined,	Research IDRS for the correct EIN using CC NAMEE/NAMEB. If found, enter the correct EIN. See Figure 3.12.15-1
No EIN can be found,	SSPND record with Action Code "320". Route to Entity Control using Form 4227. Notate Form 4227 "ASSIGN EIN". See Figure 3.12.15-1

Caution: Always ensure that the Name Control matches the Master File record whenever you change an EIN.

2. If the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return. Continue processing the return.

   Note: Do not send Letter 3875C when: three or less digits of the EIN are transposed, different, or missing; or INOLES shows the account has been "Merged To" or "Merged From"; or the EIN on the return is the taxpayer’s SSN and research shows there is no valid entity on Master File for that EIN.

3.12.15.4.4.1 (01-01-2019)

Field 01EIN - Suspense Correction

(1) Determine if Entity Control has found the correct EIN.

If	Then
Entity found the correct EIN,	Enter in Field 01EIN
Entity assigned an EIN,	Enter in Field 01EIN. GTSEC 01 and enter the Entity Assignment Date (from the lower left corner of the return) in Field 01CRD if it is after the Return Due Date.

(1) Description - Field 01TXP is found on page 1, between Form Title and OMB Number of Form 1065. Tax Period ending is printed in year (YYYY), month (MM) format e.g., Dec. 31, 2024 is printed 202412.

(2) Valid Condition - The Tax Period must be present and have six numbers.

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

• The Tax Period is not all numeric.

• The last two digits (month) are not 01-12.

• The Tax Year (first four digits) is after the current year.

• The Tax Year is equal to the current year (i.e., 2024), but the month is after the current processing month.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Determine the correct Tax Period from Form 1065 and attachments.

(1) Description - Field 01RCD is a numeric field that is either the date stamped by Receipt and Control or edited by C & E.

• The legal due date is the 15th day of the third month after the Tax Period ending.

• Partnerships whose partners are all Nonresident Aliens must file their return by the 15th day of the sixth month following the close of the year.

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

• When the due date falls on a weekend or legal holiday, the return is timely if postmarked by the first business day following the due date.

(2) Consider the return timely if:

1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the postmark is on or before the legal due date.

3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(3) Valid Condition - Field 01RCD must be present and entered in "YYYYMMDD" format.

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

• The Received Date is not present.

• The Received Date is not in "YYYYMMDD" format.

• The Received Date is later than the current processing date.

• The Received Date is not all numbers.

• The Received Date is not within the valid month, day range detailed below:

Month	Day
01, 03, 05, 07, 08, 10 and 12	01-31
04, 06, 09 and 11	01-30
02	01-28 (29 leap year)

(5) Correction Procedures:

1. Correct coding and transcription errors.

If	Then
The Received Date is invalid and it appears that the incorrect year was used (i.e., 20240115 instead of 20250115), and other information (Julian date, postmark date, and/or signature date) shows that the Received Date should be a current year,	Change the Received Date year to the current year.
Multiple Received Dates are present,	Use the earliest IRS stamped Received Date. Circle out all other dates.
The return was addressed to the IRS and delivered to a State agency,	Use the postmark date as the Received Date.
The return was addressed to a State agency,	Use the IRS date stamp as the Received Date. See Figure 3.12.15-2
The Received Date cannot be determined,	Determine the entry to Field 01RCD using the following priority order: Earliest legible postmark (e.g., U.S. Post Office, foreign postmark, or Private Delivery Service). Note: For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope. Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required. Note: If an envelope is not attached, use the postmark date stamped on the face of the return. Service Center Automated Mail Processing System (SCAMPS) digital date. Revenue officer's or other IRS official's signature date. Signature date if within the current year (unless other information shows signature date is invalid). DLN Julian date minus 10 days. Current date minus 10 days.



2. A private delivery service (PDS) is a business that delivers packages. The "Timely Mailing as Timely Filing" rule now applies to some PDS. When the rule applies to a PDS, it is referred to as a "Designated" PDS. See IRM 3.10.72, Receiving, Extracting and Sorting for a list of designated private delivery services.

Note: Private delivery services do not deliver to P.O. Boxes. Partnerships must use the U.S. Postal Service to mail items to an IRS P.O. Box address.

(1) Description - Field 01CCC is an alpha or numeric field edited on the dotted portion of Line 1a, Form 1065.

(2) Valid Condition - Valid characters are "A", "B", "D", "F", "G", "I", "J", "L", "M", "O", "Q", "R", "S", "T", "W", "X", "Y", "1", "2", "3", "4", "5", "6", "7", "8" and "9".

(3) Correction Procedures - Correct Field 01CCC using the following procedures:

(4) Computer Condition Codes (CCCs) are assigned by tax examiners or are computer generated. Presence of one of the following Computer Condition Codes initiates action as explained below. Listed below are the valid Computer Condition Codes for Form 1065.

(1) Description - Field 01TXB is found to the left/near the title of page 1, Form 1065. The Tax Period Beginning Date is printed in YYYYMMDD format, e.g., September 1, 2024 is printed 20240901.

(2) Valid Condition - The Tax Period Beginning Date must be present if the return is a "Final" or a "Short Period". The Tax Period Beginning date must be eight numbers.

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

• The Tax Period beginning date is not all numeric.

• The last two digits (month) are not 01-12.

• The Tax Period beginning date is later than Tax Period end date (e.g., if tax period is 202412 and Tax Period beginning date is 1/1/2025 or later).

• The Tax Period beginning date is earlier than 12 months before Tax Period end date (e.g., if tax period is 202412, and Tax Period beginning date is 11/01/2023 or earlier)

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Determine the correct Tax Period beginning from Form 1065. If it’s an "Initial return", use the Date Business Started from the face of the Form 1065 entered in box E found to the right of the entity. For "Final" or "Short Period" returns, refer to the IF/THEN table in Error Code 008 for resolution.

(1) Description - Field 01NAI is a numeric field found on page 1, Box "C" of Form 1065. The NAICS code identifies the partnership Principal Business Activity.

(2) Valid Condition:

• Six numeric digits within a range of 000001-999999 on all full length records.

• Blanks on all short length records. See IRM 3.12.15.2.15.1

(3) Invalid Condition:

• Not numeric.

• Entry not within range of 000001-999999 for full length records.

• Entry present and Section 02 is not present.

(4) Correction Procedures - Determine the correct NAICS Code in the following order:

1. Form 1065, Box "C", Business Code Number.

2. Form 1065, Box "A", Principal Business Activity.

3. Form 1065, Box "B", Principal Product or Service.

(1) Description - Field 01DOB is a numeric field found on page 1, Box "E" of Form 1065.

• Date Business Started is entered in year (YYYY), month (MM) format e.g., Dec. 31, 2021, is printed 202112.

(2) Valid Condition:

• Valid characters are numeric only.

• Field 01DOB may be blank.

(3) Invalid Condition:

• The Date Business Started is not all numeric or blank.

• The last two digits (month) are not 01-12.

(4) Correction Procedures:

(1) Description - Field 01NOP is found on page 1, Line I on Form 1065.

• This entry consists of the number of Schedules K-1 attached to the return.

• It can be used to determine the number of partners in the partnership.

(2) Valid Condition:

• Must be numeric, 2 through 999,999. See Figure 3.12.15-6.

(3) Invalid Condition:

• Not numeric.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. If Form 1065, Line I is zero or blank, check the return and attachments for any indication of the number of partners and enter in Field 01NOP.

3. If the number of partners is not found, follow the procedures below:

If	And	Then
Amended return ("G" Coded),		GTSEC 01 and enter "G" in Field 01CCC.
"Final" return,		GTSEC 01 and enter "F" in Field 01CCC. Enter "2" in Field 01NOP.
IRC 736 or Treas. Reg. 1.736-1 (Payment to a retiring partner),		Enter "2" in Field 01NOP.
Reinput/Re-entry document,		Enter "2" in Field 01NOP.
Returns filed for 201412 and before Tax Periods		Enter "2" in Field 01NOP.
IRC 501(d) return (Religious and Apostolic Organizations),		Enter "2" in Field 01NOP.
IRC 6020(b),		GTSEC 01 and enter "4" in Field 01CCC. Enter "6" in Field 01NOP.
Short Record return, See IRM 3.12.15.2.15.1 for a description of a Short Record,		Enter "2" in Field 01NOP.
Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	Form 8825 is attached, and Line 21 on Form 8825, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,	Enter "2" in Field 01NOP.
Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,	Form 8825 is not attached,	Enter "2" in Field 01NOP.
Form 1065, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	Form 8825 is attached, and Line 21 on Form 8825, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	If Schedules K-1 are attached, enter the number of Schedules K-1 to Field 01NOP and continue processing. If Schedules K-1 are not attached, and there is no indication C&E issued Letter 1355Cfor the missing Schedules K-1, then: GTSEC 01 and enter "33" in Field 01MSC. enter "2" in Field 01NOP.
Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,	Form 8825 is not attached,	Review the return and attachments for Schedules K-1 or an indication C&E issued Letter 1355C for missing Schedules K-1. and/or missing Form 8825, if needed, etc. Note: C&E is instructed to notate in the lower right hand corner of Form 1065 if they issue Letter 1355C If Schedules K-1 are attached, enter the number of Schedules K-1 to Field 01NOP and continue processing. If there is no indication Letter 1355C was sent, then: GTSEC 01 and enter "33" in Field 01MSC. enter "2" in Field 01NOP.
Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,	Form 8825 is attached,	Review the return and attachments for Schedules K-1 or, an indication C&E issued Letter 1355C, e.g., for missing Schedules K-1. and any other condition, such as missing schedule, missing signature, etc. Note: C&E is instructed to notate in the lower right hand corner of Form 1065 if they issue Letter 1355C If there is no Schedules K-1 and no indication Letter 1355C was sent, then: GTSEC 01 and enter 33 in Field 01MSC. enter "2" in Field 01NOP.

4. If the partnership shows that the number of Schedules K-1 is "1" or the attached Schedule K-1 shows 100 percent interest in the partnership, follow the procedures below:

If	Then
Schedule K-1 shows two names in the partners' Name and Address Section,	Correspond requesting Schedules K-1 for each partner using Letter 1355C.
Partnership entity section shows: "Limited Partnership" (LP) "Limited Liability Partnership" (LLP) "Limited Liability Company" (LLC) "Limited Liability Land Trust" (LLLT) "Unincorporated Business Organization" (UBO) or "2", "3" or "4" is present in Field 06LPC,	GTSEC 01 and enter CCC "F" in Field 01CCC. Enter "2" in Field 01NOP. Advise the taxpayer that we are deleting the partnership filing requirement with a non-suspense Letter 3733C.
Partnership shows payment to a retired or deceased partner or cites IRC 736 or Treasury Regulations 1.736–1,	Enter "2" in Field 01NOP.
The partnership shows this is a "Final" Return,	GTSEC 01 and enter CCC "F" in Field 01CCC, if necessary. Enter 2 in Field 01NOP.
The partnership does not show this is a final return or does not notate: IRC 736 or Treas. Reg. 1.736-1 "Limited Liability Partnership" (LLP) "Limited Liability Company" (LLC) "Limited Liability Land Trust" (LLLT) "Unincorporated Business Organization" (UBO),	Correspond informing the partnership that the partnership cannot have one partner and ask for an explanation using Letter 1355C.
The partnership submits a response to our request for Schedules K-1,	Change the number of Schedules K-1 to the number given by the partnership. Write the DLN of the parent return in the upper left corner of the first Schedule K-1. Place Schedules K-1 in a gusset folder. Forward the folder with the Schedules K-1 to Batching & Numbering to process the Schedules K-1.

(1) Description - Field 01IRC is edited to the left of Line G, page 1 of Form 1065. See Figure 3.12.15-7.

(2) Valid Condition - Blank or "2".

(3) Invalid Condition - Entries other than "2" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors. C & E will edit to the left of Line G. See Figure 3.12.15-7

2. Field 01IRC must have a "2" if any of the following conditions is present:

• Page 1, Box E has a Date Business Started that is within 12 months from the Tax Period ending date.

• The "Initial Return" box on Line G is checked.

• There is a taxpayer notation of "Initial Filing", such as, "FIRST RETURN", "NEW PARTNERSHIP", etc.

(1) Description - Field 01TT is found on Line G, Box (6) Technical termination - also check (1) or (2), page 1 of Form 1065.

(2) Technical terminations have been repealed for partnerships with tax years beginning after 12-31-2017. Field 01TT must be blank for partnerships with a Tax Period Beginning date of 01-01-2018 or later.

(3) Valid Condition - Blank or "1".

(4) Invalid Condition - Entries other than "1" or blank.

(5) Correction Procedures:

(1) Description -Field 01AMC is found on Line H, page 1 of Form 1065.

(2) Valid Condition - Entry must be a numeric or blank.

(3) Invalid Condition - Field 01AMC will generate as an error if the Accounting Method Code is other than "1", "2", "3" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Code Field 01AMC as follows:

If	Then
"Cash" box is checked,	Enter "1" in Field 01AMC.
"Accrual" box is checked,	Enter "2" in Field 01AMC.
"Other" box is checked,	Enter "3" in Field 01AMC.
No box is checked,	Leave Field 01AMC blank.

(1) Description - Field 01M3 is found on Line J, page 1 of Form 1065.

(2) Valid Condition - "1" or blank.

(3) Invalid Condition - Entries other than "1" or blank.

(4) Correction Procedures:

(1) Description - Field 01DRE is based on the partnership entry on page 3, Schedule B, Line 13* on Form 1065. *(Prior year revision, Line 15).

(2) Valid Condition - Numeric or blank.

(3) Invalid Condition:

• No numeric

• Entry other than "0" through "999999 "

(4) Correction Procedures:

(1) Description - Field 01ADC is a numeric or alpha field edited in the left margin next to Line 9 of Form 1065. Identified by "1 -" followed by the appropriate audit code(s). Audit codes are used to identify specific conditions requested by Examination.

(2) Valid Condition:

• Numeric or alpha C (maximum of fifteen codes).

• Must be "1", "2", "3", "4", "5", "6", "7", "8", "9" C or blank.

• Field 01ADC may be present on short length records.

(3) Invalid Condition:

• Not numeric, alpha C or blank.

• More than fifteen Audit Codes used at one time.

• A digit or character appears after the first blank.

(4) Correction Procedures:

(1) Description - Field 01SIC is edited in the left margin next to Line 9 of Form 1065 as "2 - 1" if any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

(2) Valid Condition - Valid characters are "1" and blank.

(3) Invalid Condition - Field 01SIC will generate as an error if the Special Income Code is other than "1" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the Special Income Code must be "1".

(1) Description - Field 01CRD is a numeric field found on the partnership reply to correspondence.

(2) Valid Condition - Field 01CRD must be numbers and in MMDDYYYY format.

(3) Invalid Condition - Field 01CRD is invalid if either of the following conditions are present:

• Not numeric.

• Not in YYYYMMDD format.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Determine the CRD from the date the reply was received at the campus. If the reply was not date stamped, use the U.S. Postal Service postmark date on the envelope attached to the reply.

   Note: For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope. See Figure 3.12.15-7). Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required.

3. If more than one CRD is present, use the CRD that made the return complete and processable.

4. Do not enter the CRD when any of the following conditions are present:

Do not enter CRD
The correspondence was received before the due date of the return The correspondence was required because of an IRS processing error, for example, a request for a return or schedule that we lost during processing The correspondence was not necessary The correspondence was issued in error

5. If the reply was missing, incomplete or the notice was undeliverable, enter CCC "3" in Field 01CCC.

   Note: If there is an indication that Entity Control has assigned an EIN to the return, enter the entity assignment date found in the lower left-hand corner of the return, in Field 01CRD if it is later than the actual Correspondence Received Date.

(1) Description - Field 01ISI is edited in the left margin next to Line 9 of Form 1065 as "3 -" followed by the appropriate code when Form 6252, Computation of Installment Sales Income, is attached.

(2) Valid Condition - Numbers "1", "2", "3" or blank.

(3) Invalid Condition - Field 01ISI will generate as an error if the Installment Sales Indicator Code is other than "1", "2", "3", or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Examine the return and attachments to determine the correct code.

3. Delete the incorrect entry and enter the correct code on the screen and in the left margin next to Line 9 as "3 -" followed by the correct code.

4. If a code cannot be determined, leave Field 01ISI blank.

(1) Description - Field 01NRL is edited in the left margin next to Line 9 of Form 1065 as "4 -1" when there is an entry on Schedule L, Line 18, Columns (b) or (d) and/or Schedule K-1, Question K, Nonrecourse.

(2) Valid Condition - Valid entries are "1" or blank.

• Code "1" if there is an amount other than zero on Schedule L, Line 18, Columns (b) or (d) or when there is an attachment that shows a Nonrecourse Loan.

(3) Invalid Condition - Field 01NRL will generate as an error if the Nonrecourse Loan Code is other than a "1" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Examine the return and attachments to determine the correct code.

3. If a code is not present, delete the entry.

(1) Form 1065 will be charged penalties for not providing a complete return. Code and Edit (C&E) will be responsible for initiating correspondence when needed, requesting the missing information, and ERS will be responsible for coding Field 01MSC appropriately if the missing information is not received.

(2) Enter Field 01MSC whenever the taxpayer does not respond to our request for missing information. See the chart below for the correct code:

(3) Invalid Condition - Field 01MSC will generate as an error when any of the following conditions exist:

• Field 01MSC is invalid if it is not numeric and not one of the Missing Schedule Codes shown above.

• The same Missing Schedule Code appears more than once.

• The Missing Schedule Code does not begin in the first position of the field.

(4) Correction Procedures:

1. Correct all coding and transcription errors.

(5) Suspense Procedures:

(1) Description - Field 01HSC is edited in the left margin next to Line 9 of Form 1065 as "6 - 3" when there is an entry on Form 3468 (Investment Credit) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

(2) Valid Condition - Valid Historic Structure Codes are "3" and blank.

(3) Invalid Condition - Field 01HSC will generate as an error when the Historic Structure Code is other than "3" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Determine the correct code from the return and attachments.

If	And	Then
The tax year is 2023 or later,	There is an amount on Form 3468 , Part VII, Line 1h, i, or j,	Enter 3 in Field 01HSC.
The tax year is 2016 to 2022,	There is an amount on Form 3468, Part III, Line 11e, f, or g,	Enter "3" in Field 01HSC.
The tax year is 2010 to 2015,	There is an amount on Form 3468, Part III, Line 11e, f, g, h, i, or j,	Enter "3" in Field 01HSC.
The tax year is 2008 or 2009,	There is an amount on Form 3468, Part III, Line 10e, f, g, h, i, or j,	Enter "3" in Field 01HSC.
The tax year is 2006 or 2007,	There is an amount present on Form 3468, Line 1e, f, g, or h,	Enter "3" in Field 01HSC.
The tax year is 1996 to 2005,	There is an amount present on Form 3468, Part I, Line 1b or 1c,	Enter "3" in Field 01HSC.
The tax year is 2008 and before,	Form 3468 is not attached,	Leave Field 01HSC blank.

(1) Description - Field 01PIC is edited in the left margin next to Line 9 of Form 1065 as "7 - 1. "

(2) Valid Condition - Valid entries are "1" and blank.

(3) Invalid Condition - Field 01PIC will generate as an error when the Penalty and Interest Code is other than a "1" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

(1) Description - Field 01SWC is edited in the right margin next to Line 9 of Form 1065.

(2) Valid Condition - Valid entries are "1" and blank.

(3) Invalid Condition - Field 01SWC will generate as an error when the Salary and Wage Code is other than a "1" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Field 01SWC must have a "1" if any of the following conditions exist:

Criteria for Field 01SWC
An entry is present on page 1, Line 9, Form 1065 An entry is present on Form 1125-A, Line 3 An entry is present on Form 8825, Line 13, Columns A-H An entry is present on Form 4835, Farm Rental Income and Expenses, Line 20 An entry is present on Schedule F, Line 22 (Rev 2011), or on Schedule F, Line 24 (Rev 2010 and before) An attachment shows an amount to support any of the above entries

3. In all other cases, Field 01SWC is blank.

(1) Description - Field 01EP is edited to the right of Line 18 of Form 1065.

(2) Valid Condition - Valid entries are "1" and blank.

(3) Invalid Condition - Field 01EP will generate as an error when the EPMF Code is other than "1" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Field 01EP must have a "1" if any of the following conditions exist:

Criteria for Field 01EP
An entry on Line 18, Form 1065. An entry on Line 23, Schedule F (Form 1040) Farm Income and Expenses. An entry on Line 21, Form 4835 (Form 1040) Farm Rental Income and Expenses An entry on Line 19, Schedule C (Form 1040), Profit or Loss from Business. An attachment shows an amount to support any of the above entries.

3. If Field 01EP is blank, delete the entry on the screen.

(1) Description - Field is transcribed from the right of the Paid Preparer section of Form 1065 (below the Taxpayer Signature section). Data may or may not be present in Fields 01PSN and 01PEN.

(2) Valid Condition - Entries are blank, all numeric or a "P" for the first character followed by eight numeric characters, such as the Preparer Tax Identification Number (PTIN).

(3) Invalid Condition - Fields 01PSN and 01PEN are invalid if any of the following conditions are present:

• Field 01PSN is other than nine numbers or a "P" followed by eight digits.

• Field 01PEN is other than nine numbers.

• Fields have all zeroes.

• Fields have all nines.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. If Fields 01PSN or 01PEN are invalid, determine as follows:

If	Then
Only a valid PTIN is present,	Enter the PTIN in Field 01PSN and on Form 1065.
Only a valid EIN is found,	Enter the EIN in Field 01PEN and on Form 1065.
Only a valid SSN is found,	Enter the SSN in Field 01PSN and on Form 1065.
A valid PTIN is present and an EIN is also present,	Enter the PTIN in Field 01PSN and on Form 1065.
A valid PTIN is present and an SSN is also present,	Enter the PTIN in Field 01PSN and on Form 1065.
A valid PTIN is not present but both an EIN and SSN are present,	Enter the SSN in Field 01PSN and on Form 1065.
A valid TIN (PTIN, EIN or SSN) cannot be found,	Delete Fields 01PSN and 01PEN.

(1) Description - The paid preparer check box indicator is transcribed from the bottom of page 1, Form 1065, to the right of the signature date. The checkbox is used to show whether the partnership has elected to allow the paid preparer to answer questions about the partnership return as it is processed. Data may or may not be present in Field 01CBI.

(2) Valid Condition - Valid entries are "1" and blank.

(3) Invalid Condition - Field 01CBI will generate as an error when the Paid Preparer Checkbox Indicator is other than "1" or blank.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Enter a "1" in Field 01CBI on the screen if the "Yes" box is checked.

3. Delete Field 01CBI if "No" box is checked, both boxes are checked or there is no entry.

4. If invalid, delete the entry on the screen.

(1) Description - The paid preparer telephone number is transcribed from the bottom of page 1, Form 1065, below the paid preparer EIN. Data may or may not be present in Field 01PTN.

(2) Valid Condition - Field 01PTN must be alpha or numeric or a combination of alpha and numeric characters, not to exceed 10 characters or blank.

(3) Invalid Condition - Field 01PTN will generate as an error when the Paid Preparer Telephone Number is other than 10 alpha/numerics.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. If a telephone number is invalid, delete the entry on the screen.

(1) Description - A Return Processing Code (RPC) is an alpha or numeric character used to identify a specific condition for the computer. The RPC is edited on page 1, in the right margin next to line 1c of Form 1065.

(2) Valid Condition - Field 01RP1 must be alpha or numeric or a combination of alpha and numeric characters, not to exceed 20 characters or blank.

(3) Invalid Condition:

• Characters are other than "A" through "Z" or "1" through "9".

• More than 20 characters.

  Note: If more than 20 RPCs are needed, enter additional RPCs in Field 01RP2.

(4) Correction Procedures:

1. Correct misplaced entries and transcription errors.

2. When the code(s) entered on the return are illegible or invalid, examine the return and enter the correct code from the table below:

   Note: RPCs do not need to be entered in any specific order.

(1) Section 02 has monetary amounts.

(2) The entries are of variable lengths.

(3) All entries are dollars only.

(4) If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, the Special Income Code must be "1".

(1) Data in Section 02 is obtained from Form 1065. See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

(2) The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

(3) Invalid Condition - Any field in Section 02 will be invalid if not all numbers.

(4) Correction procedures - Check for coding and transcription errors or misplaced entries.

(1) Field 02ITR is transcribed from Form 1065, Schedule K, Line 16.

(2) Field 02ITR is a 1 digit field valid for tax periods 202112 and later.

(3) Invalid Condition:

• The field length is more than 1 character and not "0" or "1"

• The tax period is before 202112

(4) Correction Procedures:

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

2. If the tax period is before 202112; delete the field.

(1) Section 03 has monetary amounts.

(2) The entries are of variable lengths.

(3) All entries are dollars only except 03TAX on Form 1065 which can be dollars and cents.

(4) If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the Special Income Code must be "1".

(1) Data in Section 03 is obtained from Form 1065, Form 1125-A (Cost of Goods Sold), Form 8825 (Rental Real Estate Income and Expenses of a Partnership or an S Corporation) and Schedule F (Profit or Loss From Farming). See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

(2) The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

(3) Invalid Condition - Any field in Section 03 will be invalid if not all numbers.

(4) Correction procedures - Check for coding and transcription errors or misplaced entries.

(1) Section 04 has monetary amounts.

(2) The entries are of variable lengths.

(3) All entries are dollars only.

(4) If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, the Special Income Code must be "1".

(1) Data in Section 04 is obtained from Form 1065. See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

(2) The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

(3) Invalid Condition - Any field in Section 04 will be invalid if not all numbers.

(4) Correction procedures - Check for coding and transcription errors or misplaced entries.

(1) Section 05 has address information of the partnership filing Form 1065.

(2) Section 05 will be present if any the following conditions exist:

• Has an address change.

• Form 1065, page 1, Line G, Box "4" is checked to show an address change.

(3) This section cannot be present on a "G" Coded short length record.

(4) Section 05 can be present on other short length records.

(1) Ogden Submission Processing Center (OSPC) will process returns with Foreign/International and U.S. Possessions/Territories addresses.

(2) The determination of a Foreign Address is based only on the address of the partnership.

(3) A Foreign or international address is any address that is not in one of the 50 states or the District of Columbia.

(4) The following U.S. Possessions/Territories are considered foreign.

• American Samoa

• Federated States of Micronesia

• Guam

• Marshall Islands

• Northern Mariana Islands

• Palau

• Puerto Rico

• Virgin Islands (U.S.)

(5) An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not a Foreign address. The U.S. Postal Service established new address requirements for APO/DPO/ FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP Code. For example, "APO New York, NY 091XX", would be converted to "APO AE 091XX". Refer to the APO/DPO/FPO conversion chart below:

(6) All returns with a foreign or U.S. possession/territory address must be shipped to OSPC.

1. SSPND with Action Code "650".

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

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

(1) Listed below are the fields that are in Section 05. Data in this section is obtained from Form 1065: See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

(1) Description - Field 05CON is found in the entity section of the return.

(2) Valid Condition - Field 05CON has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent (%).

(3) Invalid Condition - Field 05CON is invalid if any of the following conditions are present:

• The first position is % (percent) and the second position is not blank, or

• The first position is blank, or

• The first character of the "In-Care-Of" name is not alpha or numeric, or

• There are two consecutive blanks between significant characters.

(4) Correction Procedures:

1. Correct coding and transcription errors.

(1) Description - Field 05FAD is in the entity section of the return.

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

2. Field 05FAD must not be present on "G" coded short length records.

(2) Valid Condition - Valid characters are alpha, numeric and special characters.

(3) Invalid Conditions - Field 05FAD will generate as an error when any of the following conditions are present:

• The first position is blank.

• Any character follows two consecutive blanks.

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

(4) Correction Procedures:

1. Correct all coding and transcription errors.

If	Then
Field 05FAD is present,	GTSEC 05. Ensure Field 05CTY has a Foreign Country Code and Field 05ST has a "." (period/space). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. Exception: Use the country code based on the province in Field 05CTY if the Foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.15-21 , Province/Country Code - Canada Only.
A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico, or The Netherlands but a province name is present,	Enter the province abbreviation in the proper position in Field 05FAD. See Exhibit 3.12.15-20, Province, State and Territory Abbreviations.
A foreign address is not present on the return,	SSPND with Action Code 610. Renumber return with domestic DLN.

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

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

If	And	Then
Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached,	All of the following applies: Mailing address information is the same, No location address is on Form 8822 or Form 8822-B, Line 7, No entry on Form 8822-B, Lines 8 or 9,	Take no action and continue processing.
Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached,	Any of the following applies: Mailing address information is different, Location address is on Form 8822 orForm 8822-B, Line 7, An entry is listed on Form 8822-B, Lines 8 or 9,	Enter address shown on Form 8822 or Form 8822-B in Field 05FAD. Notate "Form 8822/8822-B detached" on tax return. Detach Form 8822 or Form 8822-B and route to Entity Control using Form 4227, Intra-SC Reject or Routing Slip, or follow local procedures. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or Form 8822-B".

(1) Description - Field 05ADD is found in the entity section of the return.

• Field 05ADD must not be present on "G" Coded short length records.

(2) Valid Condition - Valid characters are alpha, numeric, blank, dash or slash.

(3) Invalid Condition - Field 05ADD will generate as an error when 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.

  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.

(4) Correction Procedures:

1. Correct coding and transcription errors.

If	Then
The first position is blank,	All positions must be blank.
Field 05ADD is present,	Fields 05CTY, 05ST and 05ZIP must be present.
Street address is in error and a valid Major City Code is present,	Correct by entering the entire name of the city in Field 05CTY and the State Code in Field 05ST. See Document 7475.
A good address is not found,	Delete address and revert to INOLE.

2. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return.

(1) Description - Field 05CTY is found in the entity section of the return.

(2) Valid Condition - Valid characters are alpha and blank.

(3) Invalid Condition - Field 05CTY will generate as an error when any of the following conditions are present:

• The first position is blank.

• Any character is present other than 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 will enter 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 if Field 05CTY has "XX".

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. Determine if a Major City Code is used.

   Note: For a listing of Major City Codes, See Document 7475.

If	Then
A Major City Code is used,	Field 05CTY must be present.
Field 05CTY has an error,	Check to see if the Major City Code is correct.
Field 05CTY is not valid and a Major City Code cannot be determined,	Input the entire city name.
A Major City Code is not used and Field 05CTY is present,	Field 05ST (State) must be present.
A Foreign Address is shown on the return,	Enter appropriate Foreign Country Code in Field 05CTY See Document 7475 Exception: Use the country code based on the province in Field 05CTY if the Foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.15-21, Province/Country Code - Canada Only.
Field 05CTY (Field 06CTY) has an incorrect Country Code or "XX",	Enter appropriate Foreign Country Code in Field 05CTY See Document 7475.

3. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return.

(1) Description - Field 05ST is found in the entity section of the return.

(2) Valid Condition - Valid characters are alpha and blank.

(3) Invalid Condition - The field is invalid if it is not in the State Code Table.

(4) Correction Procedures:

1. Correct coding and transcription errors.

2. For a list of valid State Codes, See Document 7475 and Exhibit 3.12.15-19, U.S. Possessions/Territories State Abbreviations and ZIP Codes.

3. If unable to perfect, DLSEC 05.

4. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return. See IRM 3.12.15.8.6.

(1) Description - Field 05ZIP is found in the entity section of the return.

(2) Valid Condition - Valid characters are numeric and blank.

(3) Invalid Condition - Field 05ZIP will generate as an error when any of the following conditions are present:

• Any character is other than numeric or blank.

• An entry is other than five or nine positions.

• The entry is not within the range of 00401 and 99999.

• The entry does not match the Major City Code or State Code.

(4) Correction Procedures:

1. Correct coding and transcription errors.

If	Then
Field 05ZIP is transcribed incorrectly,	Enter the correct entry from the return. Only the first five digits are required to be entered in Field 05ZIP.
A valid ZIP Code is not available from the return or an attachment,	Determine the first 3 digits of a valid ZIP Code for the Major City. See Document 7475 or Exhibit 3.12.15-19 for U.S. Possessions/Territories ZIP Codes. Enter "01" for the fourth and fifth digits in Field 05ZIP.
The Major City is not listed in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries or the first three digits cannot be determined,	Enter the ZIP Code in Field 05ZIP of the State shown in the address using Document 7475.

2. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B against the return.

(1) Section 06 has alpha numeric characters, checkboxes, money amounts and dates.

(2) Section 06 is transcribed in dollars only.

(3) There is no math check on these fields.

(1) Listed below are the fields in Section 06 from Form 1065, Schedule B, Other Information.

(2) The field designators, title and location where the date is obtained from is shown in the table below: