3.12.217. Error Resolution Instructions for Form 1120-S

(1) The purpose of Error Resolution is to resolve validity, field , consistency, and math errors in returns and other documents for posting to the Master File. Returns fall out in Error Resolution System (ERS) due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields. GMF programming causes a return to fall out to ERS if it does not meet certain criteria, including:

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

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

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

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

• Math Error - The computer does a math computation and it differs from the taxpayer’s amount

• Invalid Tax Period and eligibility for certain credits

(2) Employees use ERS to correct these conditions and use 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 6201(a)

• IRC 6213(b)

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

(1) The Campus Director monitors operational performance for their campus.

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

(3) The Team Manager/Lead monitors performance and ensures employees have the tools to perform their duties.

(4) Team Employees are responsible for following the instructions found in this IRM and supporting 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

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

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

(1) For Terms, Definitions and Acronyms, see Exhibit 3.12.217-25.

(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 Paper 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 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

(1) Some Submission Processing Campuses have developed local Desk Procedures. Such procedures are only to be used:

• To supplement existing Headquarter procedures

• To expand Submission Processing Campus Error Resolution procedures by incorporating material from other IRMs, Automatic Data Processing (ADP) handbooks, (etc.)

• For local routing procedures

• Are not limited to the examples listed above

(2) Team managers must have a signed approval on file from the responsible Operation Manager on all Submission Processing Campus Desk Procedures.

(3) All existing local information and procedural issuances must be reviewed periodically by the Operation Manager level (at least 2 times a year or with each IRM revision) to ensure conformance with Headquarters procedures (make necessary changes, secure necessary approvals, etc.).

(4) Immediately notify the Headquarter tax analyst of any processing problems that cause a work stoppage.

(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 a W&I Submission Processing (SP) liaison for Taxpayer Advocate Service must 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 procedures below:

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

2. Inform the W&I SP liaison of all information that is being requested.

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

   Note: The W&I SP liaison will contact the Taxpayer Advocate to obtain the required information to complete processing.

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

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

2. Inform the W&I SP liaison of the reason for the action taken.

3. Give the return back to the liaison.

Note: The W&I liaison will contact the Taxpayer Advocate, who in turn will take the necessary action to complete the processing of the 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 W&I SP liaison of TPNCs issued.

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

   Note: The W&I SP liaison will contact the Taxpayer Advocate, who in turn will take the necessary action to complete the processing of the return.

(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 refund 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 W&I SP liaison.

(8) Rejects Suspense Procedures:

1. Follow the specific instruction given by the W&I SP liaison. Correspond and assign correct TPNCs as directed.

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

(1) The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need help to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico..

(2) TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Wage and Investment (W&I) 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 (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case 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 taxpayers issue the same day.

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

• The issue can be resolved within 24 hours.

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

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

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

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

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

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

3. Give the entire case to the manager/lead.

(2) The manager/lead will expedite the case to the P&A staff for referral to one of the SP BMF ID Theft Liaisons. The taxpayer must show that they are a victim of "ID Theft"; do not refer cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

(3) Effective January 1, 2017, Computer Condition Code "E" may be edited on Form 1120-S (any year) by the BMF ID Theft Liaison to identify a potential identify theft filing.

(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 that are 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 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) 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 3.12.217-22, 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) The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998, (RRA98), 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 correct 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, try to resolve the taxpayer’s inquiry. If unable to resolve, 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 should 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 telephone or in-person) their badge identification (ID Card) number on the first contact.

(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 Corporate Files Online (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:

• 01 = Friday

• 02 = Monday

• 03 = Tuesday

• 04 = Wednesday

• 05 = Thursday

(1) When the following forms are referred to in this section, the chart below shows their form number, form title and use.

(1) The Error Resolution System will identify errors according to type and priority.

(1) Any field that does not meet the requirement(s) for that field is displayed as a Field Error in the order encountered in the return.

1. Non-alphabetical character in an alpha field.

2. Blank space in a numeric field.

3. Blank in the first position of an alpha field.

(1) This error is caused by a section with variable length input fields having an erroneous size field. This type of error will show all input fields of the terminus section. Transcribed data is present. Computer generated fields or Remittance Field for Section 01 will not be present.

(1) Status Codes control records in the Error Resolution System (ERS). The status is updated when the return is placed in a specific inventory.

(2) Below is a list of the status codes and a brief explanation:

1. Status 100: error awaiting correction. Records are in the Error Inventory.

2. Status 2XX: return awaiting information. Records are in the Unworkable Suspense Inventory.

3. Status 3XX: suspense period expired no response. Records are in the Workable Suspense Inventory.

4. Status 4XX: return with information, awaiting correction. Records are in the Workable Suspense Inventory.

5. Status 900: return is on the Unselected Inventory.

(3) The final two positions of the Status Code will consist of the first two positions of the Action Code. This will put similar work together on the Workable Suspense Inventory. For example, Action Code "321" = suspense period expired or no response to taxpayer correspondence. If a return was selected for Quality Review, the second and third positions are "QA". For example, "1QA", "3QA", or "4QA" reflect Quality Review Status Codes.

(4) When the Suspense Period expires before the return is activated, the status automatically moves from Status 2XX to Status 3XX.

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

1. The AC will have sufficient detail to show if correspondence is needed or if specific in-house research or action is required.

2. Document Perfection Tax Examiners will assign a three-digit AC when they determine that the return is unprocessable in its present form.

3. This AC is edited on the bottom left-hand corner of the return.

(2) For more information and applicable Action Codes, see IRM 3.12.38.3.4, Error Resolution System (ERS) Action Codes, and the exhibit in IRM 3.12.38-1, Action Codes.

(1) When the perfection of a return is not possible and it is necessary to correspond, perform research or refer the document to another area of Submission Processing. The return is suspended, and required action taken.

(2) Suspend the unprocessable return by entering the CC SSPND followed by the proper Action Code (AC).

1. In cases where the AC cannot describe the required action, attach Form 4227, Intra-SC Reject or Routing Slip, to the return with an explanation.

2. If the tax examiner will not be issuing a letter through IDRS, it is necessary to attach a Correspondence Action Sheet (Form 3696, Correspondence Action Sheet,).

3. A Charge-Out,Form 8161, ERS Return Charge-Out, is computer generated for all new suspense items.

4. The Charge-Out is used for pulling documents, routing and controlling documents while the return is held in suspense, and associating the document with the Workable Suspense Inventory when the return becomes workable.

(1) Replies - When the taxpayer replies to correspondence, continue to process the return.

(2) No Replies - When the taxpayer does not respond to correspondence, input CCC "3" and use the following procedures as applicable.

(3) For missing schedules use the chart below to determine the Missing Schedule Code, Field 01MSC:

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

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

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

(1) Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, fax signatures are acceptable.

(2) Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use.

(3) Select the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.

(4) Use the following resources to ensure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

• IRM 21.1.3.2.3, Required Taxpayer Authentication

• IRM 21.1.3.2.4, Additional Taxpayer Authentication

(5) Before leaving any messages on a taxpayers answering machine, review:

• IRM 10.5.1.6.7.2, Answering Machine or Voicemail

• IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance

(1) Sometimes a return is received with written information on an attachment.

(2) All attachments or photocopies of an attachment that are routed to another area must have the taxpayers:

• Name

• Address

• EIN

• Received Date

(1) The following shows some IDRS Command Codes (CCs).

(2) See IDRS Command Codes at: IDRS Command Code Job Aid for all Command Code Job Aids.

(1) Form 1120, U.S. Corporation Income Tax Return, must be converted to Form 1120-S when the taxpayer has filed Form 1120 and the Entity Control Unpostable Unit determines the taxpayer has a valid Form 2553, Election by a Small Business Corporation, on file.

(2) When Form 1120 is converted to a Form 1120-S, Entity must ensure that only the Received Date (Field 01RCD), North American Industry Classification System (NAICS) code (Field 01NAI), and Audit Code "4" (Field 03ADC) are edited to the new renumbered form. If a field other than those mentioned above was transcribed, delete it.

(3) For MeF Form 1120 being reprocessed as Form 1120-S, ensure the correct Received Date is edited on the document. The Received Date is the Julian DLN date of the original DLN. Do not subtract 10 days in the case from the Julian Date.

(4) Do not enter any tax data on the "blank" Form 1120-S.

(1) If a request for an installment agreement (an inquiry by the taxpayer to make payments on a debt) is attached to any return, detach it and send it to the Collection Branch. This request may come on Form 9465, Installment Agreement Request. When forwarding the installment request ensure the following information is included as a working trail: EIN, Name, Type of Return, Tax Period, Amount Due and Amount Paid.

(1) Section 14103 of the Tax Cuts and Jobs Act (TCJA) of 2017 overhauled Section 965 of the Internal Revenue Code. Section 965, now titled “Treatment of deferred foreign income upon transition to participation exemption system of taxation,” provides that U.S. shareholders must pay a transition tax on the untaxed foreign earnings of certain specified foreign corporation as if those earnings had been repatriated to the United States.

(2) If the Tax Period is 201712 through 202012, SSPND with Action Code "460", and input "J" in Field 01CCC, when any of the following are present:

• "Section 965" or "965 Tax" (or similar language) notated on the return, attachment, or statement.

• IRC 965 Transition Tax Statement (or similar 965 statement) is attached.

• Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, is attached.

• Form 965, Schedule A, U.S. Shareholder’s Section 965(a) Inclusion Amount, is attached.

• Form 965, Schedule B, Deferred Foreign Income Corporation’s Earnings and Profits (E&P), is attached.

• Form 965, Schedule C, U.S. Shareholder’s Aggregate Foreign Earnings and Profits Deficit, is attached.

• Form 965, Schedule D, U.S. Shareholder’s Aggregate Foreign Cash Position, is attached.

• Form 965, Schedule E, U.S. Shareholder’s Aggregate Foreign Cash Position - Detail, is attached.

• Form 965, Schedule F, Foreign Taxes Deemed Paid by Domestic Corporation, is attached.

• Form 965, Schedule G, Foreign Taxes Deemed Paid by Domestic Corporation for U.S. Shareholder Tax Year Ending in 2017, is attached.

• Form 965, Schedule H, Disallowance of Foreign Tax Credit and Amounts Reported on Forms 1116 and 1118, is attached.

• Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is attached.

• A significant entry is present on Schedule K, Lines 10, 12d, or 14r (2020 - 2017 form revisions) or Line 17d with the notation "Section 965" or similar language.

  Note: A significant entry is defined as any amount other than zero.

(3) If a Section 965 return was found by ERS and C&E has not edited Action Code "460" or CCC "J" or both, SSPND with Action Code "460" and enter CCC "J" in Field 01CCC.

(4) Follow the instructions below to finish processing the return. Ensure that the return was correctly identified as a Section 965 return.

If	Then
The return was identified as a Section 965 return in error,	Remove "J" from Field 01CCC, if present. Ensure all correspondence issues are addressed. Note: Code and Edit (C&E) was instructed not to correspond on Section 965 returns. C&E will notate "K-1 missing" (or similar language) in the lower left margin (action trail) of the return if correspondence is needed for missing Schedules K-1. Continue normal return processing.
The return is confirmed as a Section 965 return, and correspondence is needed,	Verify "J" is present in Field 01CCC. Resolve Field Errors or Error Codes or both. SSPND with Action Code "211" and correspond. Note: Code and Edit (C&E) was instructed not to correspond on Section 965 returns. C&E will notate "K-1 missing" (or similar language) in the lower left margin (action trail) of the return, if correspondence is needed for missing Schedules K-1.
The return is confirmed as a Section 965 return, and correspondence is not needed,	Verify "J" is present in Field 01CCC. Resolve Field Errors or Error Codes or both.

(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 certain credits 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 1120-S, Line 23d dotted portion (prior year form revisions).

(3) When a return is identified with an "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 reminder 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 reminder 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.

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

(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). See Exhibit 3.12.217-24, Taxpayer Notice Codes, 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:

• Employee Identification Number (EIN)

• Tax Period

• Received Date

• Computer Condition Code

• Correspondence Received Date (CRD)

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

(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) Remittance (RMIT>) is an entry that identifies payment made with the return.

(2) This entry must be blank or numeric.

(3) If a numeric amount is present, it must be dollars and cents.

(4) It must be blank for non-remittance returns, overpaid returns and remittance returns processed through the Residual Remittance Processing System (RRPS)/Integrated Submission and Remittance Processing (ISRP) systems.

(5) This is a non-correctable entry.

(1) Field 01NC consists of the first four significant characters of the corporation’s name.

(2) The valid characters are alpha, numeric, ampersand "&", hyphen "-", and blank.

(3) Invalid Condition:

• The first position is blank.

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

• There are intervening blanks between significant characters.

(4) Correction Procedures:

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

2. Enter the Name Control.

3. If the Name Control cannot be determined, research using local Submission Processing procedures.

(1) The Employer Identification Number (EIN) is found in Box D on the return.

(2) Invalid Condition:

• The EIN begins with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

• The EIN is not numeric.

• The EIN is less than 9 characters.

• The EIN is all zeroes or all nines.

(3) Correction Procedures:

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

2. If transcribed correctly, search the return for another EIN or use local Submission Processing Campus research procedures to obtain the EIN. If found, enter in Field 01EIN and send a Letter 3875C, Missing or Incorrect EIN on Return - BMF/EPMF.

   Note: Do not send Letter 3875C when:
   • Three or less digits of the EIN are transposed, different or missing or
   • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111) or
   • INOLES shows the account has been "merged to", or "merged from" or
   • The TIN on the return is the taxpayer’s SSN (check CC INOLEG).

3. If another EIN is not found during the search above, or if there is no record of an EIN, or multiple EINs are found, suspend the return with Action Code "320" and route to Entity Control for an EIN to be assigned.

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

4. On an RPS return, with an EIN change SSPND with Action Code "351" to route to Rejects. Rejects will research any RPS return with a change to the EIN to determine if a payment has posted correctly.

(1) Field 01NAI is a 6-digit numeric field transcribed from Page 1, Box B, of Form 1120-S.

(2) Invalid Condition:

• The field is not present (except "G" coded returns).

• The field is not numeric.

• The field is not within range of 000001-999999.

(3) Correction Procedures:

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

2. If Field 01NAI is blank, enter the entry from Page 1, Box B, Form 1120-S.

3. If no code is found, enter "999999".

4. If the taxpayer uses the four-digit Principal Business Activity Code (PBA Code), enter the four-digit code preceded by two zeros.

(1) Field 01TXP is found to the right of the title area, at the top of page 1 of Form 1120-S.

(2) Tax Period ending is printed in Year (YYYY), Month (MM) format e.g., Dec. 31, 2023 is printed 202312.

(3) The Tax Period must be present and have six numeric digits.

(4) A taxpayer can file a return for:

• A Calendar Year (ends December 31).

• A Fiscal Year (ends last day of the month except December).

• A 52 and 53 Week Year ends 6 days before to 3 days after the end of the month (April 29, 2023 and May 2, 2023 both are 202304).

  Example: A 52-53 week tax year ending on the last Friday of the month can end up to 6 days before the last day of the month. If the tax year ended on April 27, 2023, then the Tax Period is 202304.

  Example: A 52-53 week tax year ending on the Friday nearest to the last day of the month can end up to 6 days before, or 3 days after the last day of the month. If the Tax Period ends August 3, 2023, then the valid period is 202307.

(5) Invalid Condition:

• 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 (e.g., 2023), but the month is after the current processing month.

(6) Correction Procedures:

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

2. Determine the correct Tax Period from Form 1120-S and attachments.

If	Then
The Tax Period cannot be determined from the return, an attachment or research,	Enter the current year in Field 01TXP.
A "Final" return and the Tax Period ending is the same as or later than the Received Date,	Change the Tax Period to the month preceding the Received Date. Note: If prepaid credits are claimed on Lines 24a or 24b, SSPND with Action Code "342" to have the credits moved to the correct Tax Period.
A non-final return and the Tax Period ending is equal to or later than the current year-month by four months or less,	SSPND with Action Code "480" and attach Form 4227, Intra-SC Reject or Routing Slip, noting that the return should be held and processed after the end of the Tax Period.
A non-final return and the Tax Period ending is later than the current year-month by more than four months,	SSPND with Action Code "211" and correspond, requesting confirmation of the Tax Period ending.
The taxpayer response shows the return is a "final" return and the close of business precedes the edited Tax Period,	Change the Tax Period to agree with the close of business date. Note: If prepaid credits are claimed on Lines 24a or 24b, SSPND with Action Code "342" to have the credits moved to the correct Tax Period.
No reply is received,	SSPND with Action Code "480" and attach Form 4227, Intra-SC Reject or Routing Slip, noting that the return should be held and processed after the end of the Tax Period.

(1) Field 01RCD is a numeric field that is either the date stamped by Receipt and Control or edited by Code & Edit. The Received Date is required on all Form 1120-S, without regard to whether the Form was received before or after the due date for the return.

(2) Field 01RCD must be present and entered in "YYYYMMDD" format.

(3) Invalid Condition:

• 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 numeric.

• The Received Date is not within the valid month or 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)

(4) Correction Procedures:

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

If	Then
The Received Date is invalid, and it appears that the incorrect year was used (e.g., 20230115 instead of 20240115), and other information (Julian Date, postmark date, 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,	Enter the earliest IRS stamped Received Date.
The Received Date is missing or illegible,	Determine Field 01RCD using the following priority order: Earliest legible U.S. or foreign postmark or a postmark established by an acceptable designated private delivery service. See IRM 3.10.72, Receiving, Extracting, and Sorting, for further details. Note: If both U.S. Postal Service and private meter marks are present, honor the U.S. Postal Service Postmarks. Note: For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that was attached to the return (should be before the envelope. Use the Acceptance date on the return to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required. Service Center Automated Mail Processing System (SCAMPS) digital date. Revenue officer's signature date. Signature date if within the current year (unless other information shows signature date is invalid). DLN Julian Date minus 10 days, unless MeF return. Use the original Julian DLN date when assigning a Received Date for MeF returns. Current date minus 10 days.

(1) Computer Condition Codes are used to identify a specific condition for the computer and can have up to 10 positions. Computer Condition Codes are edited to the center dotted portion of the Income Area, on page 1 (Lines 1-6), Form 1120-S.

(2) Invalid Condition: The field does not have an entry of "B, D, E, F, G, I, J, L, M, O, Q, R, S, T, W, X, Y, 1, 2, 3, 8, and 9".

(3) Correction Procedures:

1. If an overflow condition occurs in Field 01CCC (more than 10 codes) keep the codes in the following priority: "F", "D", "O", "Y", "W", and others.

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

3. Refer to the chart of Computer Condition Codes in IRM 3.12.217.3.8.

4. If CCC "G" is present with another CCC except "S", "T", "W" and/or "3", it will cause a field error.

5. If CCC "G" is correct, delete all other CCC except "S", "T", "W" and/or "3". Otherwise, delete CCC "G" and enter all tax information as reported on the return.

6. CCC "M" is valid for Tax Periods 201712 and later. A Field Error will display if Tax Period is before 201712 and CCC "M" is present. Verify the Tax Period and make corrections as needed.

(1) Use the chart below to identify Computer Condition Codes:

(1) Field 01TXB is found on page 1, to the left near the title of Form 1120-S.

(2) The Tax Period Beginning displays in YYYYMMDD format and must have eight digits.

(3) Invalid Condition:

• The Tax Period beginning date is not 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 202312 and Tax Period beginning date is 1/1/2024 or later).

• The Tax Period beginning date is earlier than 12 months before Tax Period end date (e.g., if Tax Period is 202312, and Tax Period beginning date is 11/01/2022 or earlier).

(4) Correction Procedures:

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

2. Determine and enter Field 01TXB for all "Initial", "Final", and "Short Period" returns.

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

(2) The Correspondence Received Date (CRD) displays in YYYYMMDD format and must have eight digits.

(3) Invalid Condition:

• The field is not numeric.

• The field is not in YYYYMMDD format.

(4) Correction Procedures:

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

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.

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

4. 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 if it is later than the Received Date and the Return Due Date. If there are both a CRD and an Entity Assignment date, enter the later of the two.

5. Do not enter Field 01CRD if any of the following conditions are present:
   • The correspondence was received before the due date of the return.
   • The correspondence was required because of an IRS processing error.
   • We failed to ask for all the required information.
   • The correspondence was not necessary.
   • The correspondence was issued in error.

6. If the reply is missing, incomplete or the letter is undeliverable, enter CCC "3" in Field 01CCC.

(1) The Paid Preparer Checkbox is found next to the taxpayer signature area. This box is used to show whether the taxpayer has elected to allow the Paid Preparer to answer questions about the taxpayers return as it is being processed.

(2) This field is transcribed from the bottom of page 1, Form 1120-S.

(3) Invalid Condition: The field is other than "1" or blank.

(4) Correction Procedures:

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

(1) The Preparer Taxpayer Identification Number (PTIN) is transcribed from the PTIN box in the Paid Preparer Use Only section of Page 1, Form 1120-S. Data may or may not be present in Field 01PSN.

(2) Valid Condition: Entries are blank, all numeric or a "P" for the first character followed by eight numeric characters.

(3) Invalid Condition: The field is all zeros, all nines, less than nine positions, or is other than a "P" followed by 8 digits.

(4) Correction Procedures:

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

2. If unable to determine a valid entry, delete Field 01PSN.

(1) The Preparer EIN is transcribed from the Firm’s EIN box in the Paid Preparer Use Only section of Page 1, Form 1120-S.

(2) Valid Condition: This field can be blank, or it can be numeric. If numeric, it cannot be all zeros or all nines.

(3) Invalid Condition: The field is all zeros, all nines or less than nine positions.

(4) Correction Procedures:

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

2. If unable to determine a valid entry, delete Field 01PEN.

(1) The Paid Preparer Phone Number is transcribed from the "Phone no." box in the "Paid Preparer Use Only" section of page 1, Form 1120-S below the Firm’s EIN.

(2) Invalid Condition: The field is other than alpha or numeric.

(3) Correction Procedures:

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

2. If the telephone number is invalid, delete Field 01PTN.

(1) Beginning with Tax Period 200812, filers of Form 1120-S are charged penalties for not providing a complete return. Code and Edit (C&E) initiates correspondence when needed, requesting the missing information, and ERS corrects Field 01MSC 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: The field is not numeric and not one of the numbers shown above.

(4) Correction Procedures:

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

2. If taxpayer does not respond with the missing information, input the correct Missing Schedule Code as shown in (2) above.

(5) Suspense Procedures:

(1) 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 1120-S.

(2) Invalid Condition:

• The field is other than "A - F", "J - Y", "2", "4", "6", "7", or "9".

• The field is more than 35 characters.

(3) Correction Procedures:

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

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) Field 02CON is found in the entity section of the return.

(2) Field 02CON has 35 positions. The valid characters are alpha, numeric, ampersand "&", dash "-", slash "/" or percent sign "%".

(3) Invalid Condition: Field 02CON is invalid if any of the following conditions are present:

• The first position is "%" (percent) and the second position is not blank.

• The first position is blank.

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

• There are two consecutive blanks between significant characters.

(4) Correction Procedures:

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

(1) Field 02FAD is found 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 02FAD should not be present on "G" coded short length records.

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

(3) Invalid Condition: Field 02FAD generates as an error when any of the following conditions are present:

• The first position is blank.

• Any character follows two consecutive blanks.

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

  Note: ISRP will input a pound sign "#" as the 35th character if there are more than 35 characters present for this field on the return.

(4) Correction Procedures:

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

If	Then
Field 02FAD is present,	GTSEC 02. Ensure Field 02CTY has a foreign country code and Field 02ST 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 02CTY if the foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.217-23, Province/County 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 02CTY. See Exhibit 3.12.217-20, Province, State and Territory Abbreviation.
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.

Change of Address

If	And	Then
Form 8822, or Form 8822-B, is attached,	All the following applies: Mailing address information is the same, No location address is l 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, or Form 8822-B, is attached,	Any of the following applies: Mailing address information is different, Location address is listed on Form 8822 or Form 8822-B, Line 7, An entry is on Form 8822-B, Lines 8 or 9,	Enter address shown on Form 8822-B in Field 02FAD. Notate "Form 8822 or Form 8822-B detached" on tax return. Detach 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) This field is transcribed from the Street Address line of the entity portion of the return.

(2) Invalid Condition: Field 02ADD is invalid if:

• The field length is more than 35 characters.

• The Street Address is present and the first position is blank.

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

• Any character follows two consecutive blanks.

• Note: ISRP will enter a pound "#" sign as the 35th character to show an overflow condition.

(3) Correction Procedures:

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

2. If the 35th character is a pound sign "#", refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. Abbreviate the address to 35 or fewer characters.

3. If unable to correct, DLSEC 02.

(4) 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.

(1) This field is transcribed from the City, State, ZIP line of the entity portion, on page 1 of the return.

1. Certain cities are designated "Major Cities" and have been assigned a designator that consists of two alpha characters. This code represents both the city and state.

2. Whenever the city is on the Major City list, ISRP enters the Major City Code instead of the entire name of the city and the state.

3. When a Major City Code is used, it is the first two positions of Field 02CTY.

(2) Invalid Condition: Field 02CTY is invalid if:

• The city is present and the first position is blank.

• Any character other than alpha or blank is present.

• Any character follows two consecutive blanks.

• A Major City Code is present and it is not valid.

(3) Correction Procedures:

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

2. Follow procedures below:

If	Then
Valid city is not available from return or envelope,	Research using CC INOLES or ENMOD or Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, or Follow local Submission Processing (SP) procedures.
Major city code is found,	Enter in Field 02CTY and delete Field 02ST.
Unable to correct,	DLSEC 02.

(1) This field is transcribed from the City, State, ZIP Code line of the entity portion of the return.

(2) If the address is a foreign address, defined as not within the 50 States or the District of Columbia, SSPND with Action Code "650" and attach a Form 4227, Intra-SC Reject or Routing Slip, with a notation to forward to the "Ogden Submission Processing Campus".

(3) Invalid Condition: Field 02ST is invalid if the entry is not a state code that is listed in the State Code Table in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

(4) Correction Procedures:

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

2. If a valid State Code is not available from the return or envelope, take any of the following steps:
   • Research using INOLES or ENMOD to determine state.
   • Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, and determine Major City Code.
   • Follow local Submission Processing procedures.

   Note: If a Major City Code is found, GTSEC 02. Enter the code in Field 02CTY and delete Field 02ST.

3. If unable to correct, DLSEC 02.

(1) This field is transcribed from the City, State, ZIP line of the entity portion of the return.

(2) Invalid Condition: Field 02ZIP is invalid if:

• The ZIP Code is present and the first 5 positions are not numeric.

• The last 4 positions are not all numeric or all blank.

• Positions 4 and 5 are "00".

  Exception: ZIP Code 20500.

(3) Correction Procedures:

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

2. If a valid ZIP code is not available from the return or envelope, research using any of the following to determine the ZIP code.

3. INOLES, ENMOD, or Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries

(1) The precomputed Penalty and Interest Code "1" is entered when the precomputed penalty and interest applies ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the original due date.

(2) Transcription is from the left hand margin next to Line 9. If applicable "2-" followed by "1" was edited.

(3) Invalid Condition: The field is not blank or "1".

(4) Correction Procedures:

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

2. If interest only is shown, CCC "R" must also be present in Field 01CCC.

(1) The Tax Preference Code "1" is entered to identify an excess amount claimed by the taxpayer.

(2) Transcription is from the left hand margin next to Line 9. If applicable, "4-1" is edited.

(3) Invalid Condition: The field is not blank or "1".

(4) Correction Procedures:

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

2. A "1" should be present in Field 03TPC if:

• Schedule K-1, Line 15, Alternative minimum tax (AMT) items, totals ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for any individual Tax Period.

• Form 4626, Alternative Minimum Tax - Corporations, is attached with an amount present on Lines 3, 6, or 11 for Tax Periods 201811 and prior only.

(1) The Salary and Wage Code "1" must be entered when Salary and Wages are present.

(2) Invalid Condition: The field is not blank or "1".

(3) Correction Procedures:

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

2. Code "1" must be present in Field 03SWC if:

• Line 8, page 1 Form 1120-S has an amount for salaries/wages.

• Line 3, Form 1125-A, Cost of Goods Sold, has an amount for salaries/wages.

• If there are other attachments with salaries/wages shown.

(4) Field 03SWC may be blank if there is no indication of salaries/wages.

(1) The Audit Codes are used to identify specific conditions requested by Examination.

(2) Field 03ADC is transcribed from the left hand margin next to Line 9, page 1 Form 1120-S. If applicable "1-" followed by the correct Audit Code (1-9) was edited.

(3) Invalid Condition:

• The field is not numeric or blank.

• There are more than fifteen Audit Codes used at one time.

• A digit or character appears after the first blank.

(4) Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

(1) Audit Code "1": Disclosure Statement / Inconsistent Filer:

1. Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), is attached.

2. Form 8275, Disclosure Statement, is attached.

3. Form 8275-R, Regulation Disclosure Statement, is attached.

4. Form 8886, Reportable Transaction Disclosure Statement, is attached.

(2) Audit Code "2": International Income or Credit:

1. Form 1120-S, Schedule K, Line 16f (Line 14(p) for 2020-2018 prior year revisions, Line 14(l) 2017 - 2004 prior year revisions), Foreign taxes paid or accrued,≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

2. Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, is attached.

3. Schedule N (Form 1120), Foreign Operations of U.S. Corporations, is attached and Questions 1a, 3, 4a (2019 and prior revision), 5, or 7a are answered "Yes".

4. Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, is attached or Schedule N, Line 4a (201912 and prior revision) is marked "Yes".

5. Form 5472, Information Return of a 25% Foreign Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Under Sections 6038A and 6038C of the Internal Revenue Code), is attached.

6. Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, is attached and Part V, Lines 15a - 16f has an ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

7. Form 5713, International Boycott Report, Tax Effect of the International Boycott Provisions is attached and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡".

8. Form 8832, Entity Classification Election, is attached and either box 2(d), (e) or (f) is checked.

9. Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached.

10. Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), is attached.

11. Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached.

(3) Audit Code "3": Noncash Charitable Contributions and Asset Transfers:

1. Form 8883, Asset Allocation Statement Under Section 338, is attached and the amount in Box 5a, Stock Price, is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

2. Form 8594, Asset Acquisition Statement Under Section 1060, is attached, and Box 3 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

(4) Audit Code "4": Invalid "S" Election:

1. Form 1120 processed with a valid election on file (Form 2553, Election by a Small Business Corporation) and converted to Form 1120-S.

(5) Audit Code "5": Large Loss - Other Income:

1. Form 1120-S, Schedule K - Line 10 reflects a loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

(6) Audit Code "6": Form 3115, Application for Change in Accounting Method:

1. Form 3115 is attached.

(7) Audit Code "7": International Issues:

1. Form 1120-S, Schedule K, Line 16f (Line 14(p) for 2020-2018 prior year revisions, Line 14(l) for 2017 - 2004 prior year revisions), Foreign taxes paid or accrued, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

2. Form 5713, International Boycott Report, is attached ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡".

3. Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualifying Electing Fund, is attached and Part V, Lines 15a - 16f has an entry of less than ≡ ≡ ≡ ≡ ≡.

(8) Audit Code "8": Schedule M-3:

1. Schedule M-3 attached.

(9) Audit Code "9": First Year "S" Election:

1. The date in Box A falls during the tax year for which the S corporation is being filed.

(10) Audit Code "C": Form 8283, Noncash Charitable Contribution, is attached and Part I has any of the following conditions:

1. Box 2b is checked or,

2. Box 2b1 is checked or,

3. Line 3, column (h) has an entry.

(1) The taxpayer computes installment sales income. Transcription is from left hand margin next to Line 9, page 1 Form 1120-S. If applicable "3-" followed by the correct Installment Sales Indicator (1-3) was edited.

(2) Invalid Condition: The field is not "1", "2", "3", or blank.

(3) Correction Procedures:

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

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

3. Enter the Installment Sales Indicator code shown by the shareholder’s response to Question 3, Form 6252, Installment Sale Income.

Question 3	Code
"Yes"	1
"No"	2
Blank	Blank
"Yes" and "No"	3

4. If an incorrect code is present, delete it and enter the correct code on the screen in Field 03ISI and on the left side margin next to Line 9, page 1 Form 1120-S.

5. If a code should not be present, delete the entry on the screen.

(1) This code is entered as an indication that this is a first time filer. This field is determined from the Initial Return Box, Line G, page 1 Form 1120-S.

(2) Invalid Condition: The field is not "2" or blank.

(3) ISRP will transcribe this field from the code edited to the upper right margin of page 1, Box E.

(4) Correction Procedures:

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

2. If there is an indication the return is an initial return, enter a "2" when:
   • The initial return box found below the entity area is checked.
   • The date of incorporation, Box E, is within 12 months of the Tax Period ending.
   • There is an indication of an initial filing written on the return such as "Initial Return", "First Return" or "New Corporation".
   • The date of incorporation is within 24 months (or is not shown) and the beginning balance sheet is blank or zeros.

(1) ISRP will transcribe this field from Line I, page 1 Form 1120-S .

(2) Invalid Condition: The field is not blank or "0001" through "9999".

(3) Correction Procedures:

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

2. Enter the Number of Shareholders present in Line I, page 1 Form 1120-S.

3. Leave Field 03GSH blank if an entry is not present.

(1) This code is input to identify taxpayer’s accounting method. Transcription is from Line 1, Schedule B.

(2) Invalid Condition: The field is not blank, "1", "2", or "3".

(3) Correction Procedures:

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

2. Leave Field 03AMC blank if no or multiple boxes are checked.

3. Input the Accounting Method Code as follows:

• Code "1" if box "(a)" is checked.

• Code "2" if box "(b)" is checked.

• Code "3" if box "(c)" is checked.

(1) The taxpayer is claiming a Low-Income Housing Credit.

(2) Transcription is from the left-hand side margin next to Line 9, Form 1120-S (deductions section). If applicable "5-" followed by the Form 8586, Low-Income Housing Credit, credit amount.

(3) Invalid Condition:

• The money amount is not entered in dollars only.

• The money amount is not positive.

(4) Correction Procedures:

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

2. If Form 8586, or Form 8609-A, Annual Statement for Low-Income Housing Credit, are attached or Low-Income Housing Credit is claimed (entries present on Schedule K, Lines 13a or 13b), enter "9" in Field 01CCC.

3. If Low-Income Housing Credit is claimed, Form 8586 must be attached. Form 8609-A must also be attached if Form 8586 has any entries in Lines 1 through 3. If missing, SSPND with Action Code "211" and correspond.

4. If "No Reply", enter CCC "3".

(1) The taxpayer is filing a Form 8611, Recapture of Low-Income Housing Credit, to recapture the Low-Income Housing Credit.

(2) Transcription is from the left hand side margin next to Line 9, Form 1120-S(deductions section). If applicable "6-" was edited with the Form 8611 credit money amount.

(3) The money amount is notated next to "6-" and is edited in "dollars only" from Form 8611, Line 14.

(4) Invalid Condition:

• The field is not positive.

• Tax Period is before 198701.

(5) Correction Procedures:

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

2. If this field has an entry, Form 8611, must be attached.

3. If missing, SSPND with Action Code "211" and correspond.

4. If "No Reply", enter CCC "3".

(1) Field 0618A is transcribed from Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, Line 18a.

(2) Field 06QOF is a 15 digit numeric, positive only, dollars only field.

(3) Invalid Condition:

• The field length is more than 15 characters.

• The field is other than all numeric or blank.

• The field is negative.

(4) Correction Procedures:

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

2. If the amount is negative, delete the field.

(1) Field 0623D is transcribed from Form 1120-S, Line 23d (2022 form revisions and prior).

(2) Field 0623D is a 15 digit numeric, positive only, dollars and cents field.

(3) Invalid Condition:

• The field length is more than 15 characters.

• The field is other than all numeric or blank.

• The field is negative.

(4) Correction Procedures:

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

2. If Line 23d is blank or illegible and there are entries on any of Lines 23a, 23b or 23c, then compute the total and enter in Field 0623D.

Note: A significant entry is defined as any amount other than zero.

3. Previously, Field 0623D (Line 23d) had different purposes. The prior line usage for this field are:
   2021 and 2022 form revisions - Total Credits. See paragraph (5) for processing instruction on Total Credits reported on Line 23d during this timeframe.
   2020 and 2019 form revisions - Reserved for Future Use.
   2018 revision - Refundable Credit from Form 8827.
   2007 through 2017 form revisions - Total Payments/Credits (Total Lines 23a through 23c).

   Note: For Tax Period 200612 through 200711, Field 0623D was used to report Telephone Excise Tax Paid.

   
   

4. If you are processing a 2018 Tax Year Form and there is an amount in Field 0623D representing a credit from Form 8827, then delete the amount. See IRM 3.12.217.20.34(3) g, Error Code 672 - Sections 15, 16, 17, 18, or 06 Not Present, for more information.

(5) If you are processing a 2022 Tax Year form and the taxpayer shows an "Elective Payment" or "Deemed Payment" by writing "IRA22DPE" on an attachment or on Form 1120-S, Line 23d dotted portion year form revisions, refer to the instructions found at IRM 3.12.217.2.27, Elective Payment Election (EPE) and Credit Transfers.

(1) Field 0624D is transcribed from Form 1120-S, Line 24d (2023 form revision) and represents the taxpayers amount of an Elective payment election (EPE) amount claimed on Form 3800, General Business Credit.

(2) Field 0624D is a 15 digit numeric, positive only, dollars only field valid for tax periods 202301 and subsequent.

(3) Invalid Condition:

• The field length is more than 15 characters .

• The field is other than all numeric or blank.

• The field is negative.

• The Tax Period is before 202301.

(4) Correction Procedures:

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

2. If there is an amount present in Field 0624D and a supporting Form 3800 is not attached and the amount claimed for EPE is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, then SSPND with Action Code 211 and correspond using Letter 118C.

3. If No Reply to correspondence, then disallow the EPE credit shown and remove the amount claimed in Field 0624D. See IRM 3.12.217.20.33, Error Code 664, Elective payment election (EPE) Disallowance, for more information.

(1) This field is for ERS Input Only and is used when the computer cannot correctly compute the Elective payment election (EPE) credit shown in Field 0624D. This field is valid for tax periods 202301 and subsequent.

(2) Field 0624V is a 15 digit numeric, positive only, dollars only field valid for tax periods 202301 and subsequent.

(1) Field 0624Z is transcribed from Form 1120-S, Line 24z (2023 form revision).

(2) Field 0624Z is a 15 digit numeric, positive only, dollars and cents field valid.

(3) Invalid Condition:

• The field length is more than 15 characters.

• The field is other than all numeric or blank.

• The field is negative.

(4) Correction Procedures:

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

2. If Line 24z is blank or illegible and there are entries on any of Lines 24a, 24b, 24c, or 24d then compute the total and enter in Field 0624Z.

   Note: A significant entry is defined as any amount other than zero.

(1) Field 06Q15 is transcribed from Form 1120-S, Schedule B, Line 15.

(2) Field 06Q15 is a 1 digit numeric field valid for Tax Periods 201812 and later.

(3) Invalid Condition:

• The field is blank.

• An entry other than "0", "1", "2", or "3" is present.

• The Tax Period is before 201812.

(4) Correction Procedures:

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

If	Then
Schedule B, Line 15 box is "Yes",	Enter "1" in Field 06Q15.
Schedule B, Line 15 box is "No",	Enter "2" in Field 06Q15.
Both the "Yes" and "No" boxes are checked,	Enter "3" in Field 06Q15.
Neither box is checked (e.g., blank),	Enter "0" in Field 06Q15.
Tax Period is before 201812,	Change entry to "0" in Field 06Q15.

Note: If Form 8996, Qualified Opportunity Fund, is attached, verify "6" is present in Field 01RPC.

(1) Field 06QOF is transcribed from the dotted line area of Form 1120-S, Schedule B, Line 15.

(2) Field 06QOF is a 15 digit numeric, positive only, dollars and cents field valid for Tax Periods 201812 and later.

(3) Invalid Condition:

• The field length is more than 15 characters.

• The field is not numeric.

• The field is negative.

• The Tax Period is before 201812.

(4) Correction Procedures:

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

2. If the amount is negative, delete the field.

3. If the Tax Period is before 201812, delete the field.

(1) Field 06Q16 is transcribed from Form 1120-S, Schedule B, Line 16 (2023 form revision).

(2) Field 06Q16 is a 1 digit numeric field valid for tax periods 202301 and subsequent.

(3) Invalid Condition:

• An entry other than "0", "1", "2", or "3" is present.

• The Tax Period is before 202301.

(4) Correction Procedures:

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

If	Then
Schedule B, Line 16 box is "Yes",	Enter "1" in Field 06Q16.
Schedule B, Line 16 box is "No",	Enter "2" in Field 06Q16.
Both the "Yes" and "No" boxes are checked,	Enter "3" in Field 06Q16.
Neither box is checked (e.g., blank),	Enter "0" in Field 06Q16.
Tax Period is before 202301,	Change entry to "0" in Field 06Q16.

(1) Field 06ITR is transcribed from Form 1120-S, Schedule K, Line 14.

(2) Field 06ITR is 1 digit numeric field valid for Tax Periods 202112 and subsequent.

(3) Invalid Condition:

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

• The Tax Period is before 202112.

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

2. If the Tax Period is before 202112, delete the field.

(1) Field removed once programming corrected.

(2) Field 06TRT was transcribed from Line 23d, Form 1120-S, and valid for Tax Periods 200612 to 200711 only.

(3) Field 06TRT is a 15 digit numeric, positive only, dollars and cents field.

(4) Invalid Condition:

• The field length is more than 15 characters.

• The field is not numeric.

• The field is negative.

• The Tax Period beginning is after 200711.

(5) Correction Procedures:

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

2. This field is no longer applicable and was used for Tax Periods 200612 to 200711.

(1) Field 10OID - Checkbox is transcribed from Form 1120-S, Schedule D, above Part I.

(2) Invalid Condition: Field 10OID is invalid if:

• The field length is more than one character.

• The checkbox values are not "1", "2" or "3".

• The Tax Period is before 201712.

(3) Correction Procedures:

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

If	Then
Form 1120-S, Schedule D Checkbox is marked "Yes",	Enter "1" in Field 10OID.
Form 1120-S, Schedule D Checkbox is marked "No",	Enter "2" in Field 10OID.
Both the "Yes" and "No" Checkboxes are marked,	Enter "3" in Field 10OID.
Neither box is checked,	Delete Field 10OID.

(1) Field 101AD through Field 10013 are transcribed from Form 1120-S, Schedule D, Parts I and II.

(2) Invalid Condition: Section 10 Field Errors will display if Field 101AD through Field 10013 are not numeric.

(3) Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

(1) Fields 101B and 101C must be entered if Form 4797, Line 1a and Line 1b have an entry.

(2) Invalid Condition - Fields 101B and 101C are invalid if:

• The field length is more than 15 characters.

• The field is not numeric, positive, and dollars only.

• The Tax Period is before 202112.

(3) Correction Procedures:

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

2. If a field is negative, delete the field.

3. If the Tax Period is before 202112, delete the field.

(1) Field 101AZ and Field 102AZ must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer.

(2) Invalid Condition - Field 101AZ and Field 102AZ are invalid if:

• The field length is not 9 characters.

• The EIN is not numeric.

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If the Tax Period is before 201712, delete the field.

If	And	Then
Field 101AZ has an entry,	Form 8949, Part I, Column (f) does not have a "Z" entered in the same row,	Delete the EIN.
Field 101AZ has an entry,	The EIN is incomplete or invalid,	Delete the EIN.
Field 102AZ has an entry,	Form 8949, Part II, Column (f) does not have a "Z" entered in the same row,	Delete the EIN.
Field 102AZ has an entry,	The EIN is incomplete or invalid,	Delete the EIN.

(1) Field 101AY and Field 102AY must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

(2) Invalid Condition: Field 101AY and Field 102AY are invalid if:

• The field length is more than 9 characters.

• The EIN is not numeric.

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If the Tax Period is before 201712, delete the field.

(1) Field 101BZ and Field 102BZ must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer.

(2) Invalid Condition: Field 101BZ and Field 102BZ are invalid if:

• The field length is more than 8 characters (YYYYMMDD).

• The date acquired is other than numeric.

• The month is zero or greater than 12.

• The day range does not match the amount of days in the month.

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If the Tax Period is before 201712, delete the field.

If	And	Then
Field 101BZ has an entry,	Form 8949, Part I, Column (f) does not have a "Z" entered by the taxpayer in that same row,	Delete the date.
Field 101BZ has an entry,	The date is incomplete (for example, only the year is present),	Delete the date.
102BZ has an entry,	Form 8949, Part II, Column (f) does not have a "Z" entered by the taxpayer in that same row,	Delete the date.
Field 102BZ has an entry,	The date is incomplete (for example, only the year is present),	Delete the date.

(1) Field 101CY and Field 102CY must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

(2) Invalid Condition: Field 101CY and Field 102CY are invalid if:

• The field length is not 8 characters (YYYYMMDD).

• The field is not numeric.

• The month is zero or greater than 12.

• The day range does not match the amount of days in the month.

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If the Tax Period is before 201712, delete the field.

(1) Field 101GZ and Field 102GZ must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I or Part II, Column (f) are coded "Z" by the taxpayer.

(2) Invalid Condition: Field 101GZ and Field 102GZ are invalid if:

• The field length is more than 15 characters.

• The amount is other than numeric, positive, and dollars only.

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If a field is negative, delete the field.

3. If the Tax Period is before 201712, delete the field.

(1) Field 101GY and Field 102GY must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

(2) Invalid Condition: Field 101GY and Field 102GY are invalid if:

• The field length is more than 15 characters.

• The field is other than numeric, positive, and dollars only.

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If a field is negative, delete the field.

3. If the Tax Period is before 201712, delete the field.

(1) An indicator is entered in Field 101Z and Field 102Z when Form 8949, Sales and Other Dispositions of Capital Assets, Part I or Part II has more than one row with a "Z" present in Column (f). Code & Edit will edit "Z-1" in the right margin of Part I or Part II, Line 1, Row 1.

(2) Invalid Condition: Field 101Z and Field 102Z are invalid if:

• The field length is more than one character.

• The field is not "blank", "0", or "1" (more than one row with a "Z" in Column (f)).

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If the Tax Period is before 201712, delete the field.

(1) An indicator is entered in Field 101Y and Field 102Y when Form 8949, Sales and Other Dispositions of Capital Assets, Part I or Part II has more than one row with a "Y" in Column (f). Code & Edit will edit "Y-1" in the right margin of Part I, Line 1, Row 1 or Part II, Line 1, Row 1.

(2) Invalid Condition: Field 101Y and 102Y are invalid if:

• The field length is more than one character.

• The field is other than "blank" (default) or "1" (more than one row with a "Y" in Column (f).

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If the Tax Period is before 201712, delete the field.

(1) Field 10I5 Checkbox is found on Form 8996, Qualified Opportunity Fund, Part I, Line 5.

(2) Form 8996 is valid for Tax Periods ending 201712 and later. The table below compares Form 8996 line numbers based on the tax year of the return:

(3) Invalid Condition: Field 10I5 is invalid if:

• The field length is more than one character.

• The Tax Period is before 201712.

• The checkbox values are not "1", "2", or "3".

(4) Correction Procedures:

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

2. If the Tax Period is before 201712, delete the field.

If	Then
Form 8996, Part I, Line 5 Checkbox is marked "Yes",	Enter "1" in Field 10I5.
Form 8996, Part I, Line 5 Checkbox is marked "No",	Enter "2" in Field 10I5.
Both the "Yes" and "No" Checkboxes are marked,	Enter "3" in Field 10I5.
Neither Checkbox is marked,	Delete Field 10I5.

(1) Field 10Q6 - is a "Reserved" field transcribed from Form 8996, Line 6.

(2) Invalid Condition - Field 10Q6 is invalid if:

• The field length is more than one character.

• The value is not blank, "0" or "1".

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If the Tax Period is before 201712, delete the field.

(1) Field 10II6, Field 10II7, Field 10II9 and Field 1010 are entered from Form 8996, Qualified Opportunity Fund, Part II, Lines 7, 8, 10, and 11.

(2) Invalid Condition: Field 10II6, Field 10II7, Field 10II9, and Field 1010 are invalid if:

• The field length is more than 15 characters.

• The fields are other than numeric, positive and dollars only.

• The Tax Period is before 201712.

(3) Correction procedures:

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

2. If a field is negative, delete the field.

3. If the Tax Period is before 201712, delete the field.

(1) Field 1013 is found on Form 8996, Qualified Opportunity Fund, Part III, Line 14 and is a percentage. It is expressed as a decimal amount (0.00).

(2) Invalid Condition: Field 1013 is invalid if:

• The field length is more than 3 characters.

• The field is not numeric.

• The value exceeds 1.00.

• The Tax Period is before 201712.

(3) Correction Procedures:

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

(1) Field 1014 is found on Form 8996, Qualified Opportunity Fund, Part III, Line 15.

(2) Invalid Condition: Field 1014 is invalid if:

• The field length is more than 15 characters.

• The field is not numeric, positive and entered as dollars and cents.

• The Tax Period is before 201712.

(3) Correction Procedures:

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

2. If the field is negative, delete the field.

3. If the Tax Period is before 201712, delete the field.

(1) Listed below are the fields displayed in Section 12 of Form 1120-S :

(1) Field 12RTN is transcribed from Line 1, Form 8050, Direct Deposit of Corporate Tax Refund.

(2) Field 12RTN is a 9 digit numeric or blank field.

(3) Invalid Condition: Field 12RTN is invalid if present and the first two digits are not:

• Between "01" through "12".

• Between "21" through "32".

(4) Correction Procedures:

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

2. If Field 12RTN is not valid, delete the field.

(1) Field 12DAN is transcribed from Line 2, Form 8050, Direct Deposit of Corporate Tax Refund. Field 12DAN is valid up to 17 characters.