Partnerships and S Corporations use Form 8752 to figure and report the payment required under Section 7519 or to obtain a refund of net prior year payments.

Error Resolution tax examiners resolve validity errors, field errors, and consistency errors, on returns using paper error registers. Employees use the paper register (error register) and the return to correct these conditions and when necessary use Integrated Data Retrieval System (IDRS) to research.

Authority for these procedures is found in Internal Revenue Code Section 7519 and corresponding Treasury Regulations.

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

Submission Processing (SP), Paper Processing Branch (PPB), BMF Code and Edit (C&E) and Error Resolution System (ERS) Section follows the content in this IRM. The BMF ERS analyst makes updates as needed and revises content once a year effective January 1st of each calendar year.

The BMF Code and Edit and Error Resolution System Section Manager ensures the IRM is timely sent to Publishing each year.

The Campus Director monitors operational performance for the Submission Processing campus.

The Operations Manager monitors operational performance for their operation.

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

The Team Employees follow the instructions in this IRM and keep updated on the IRM procedures.

Program Goals: Enter corrections on the Form 8752 paper error registers for any errors falling out through Service Center Replacement System (SCRS) in Error Resolution.

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

Program Effectiveness: The program goals are measured by using the following tools:

Annual Review: The processes outlined in this IRM are reviewed annually during IRM Review and Clearance to ensure accuracy and promote consistent tax administration.

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

The table lists Interpretation Words and their definitions.

See Exhibit 3.12.249-3, Acronyms and Abbreviations, for a list of commonly used acronyms and abbreviations.

The following table lists related resources.

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.

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 ensuring that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office in every state, the District of Columbia, and Puerto Rico.

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).

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.

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

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

For more information, see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria.

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

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

Businesses use frivolous arguments to express dissatisfaction with the substance, form or administration of the tax laws by trying to avoid or reduce tax liabilities illegally. See IRM 25.25.10, Frivolous Return Program and Exhibit 3.12.249-4, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

Review the return to decide whether it appears to be a frivolous return.

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

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA98), Section 3705(a) provides identification requirements for all IRS employees working tax-related matters.

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 minimum) the following information:

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.

Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves. They should give their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

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.

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, faxed signatures are acceptable.

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

Error Resolution System (ERS) tax examiners indicate the fax paragraph on the Form 3696, Correspondence Action Sheet, or other approved Correspondence Action Sheet to inform the taxpayer of the fax options.

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

Before leaving any messages on a taxpayer's answering machine, review the following:

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.

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.

Follow the instructions below for processing CII returns.

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.

If CI has stamped the return, do not send for further CI action.

For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ do the following:

Because of the repetitive nature of the ERS/Rejects function, ERS/Rejects Tax Examining Technicians often recognize income tax return data that is outside of the norm for data found on similar returns for each income tax return type. If ERS finds return characteristics not meeting Audit Code or Exam referral criteria it considers suspicious, CI is available to review the referral.

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:

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

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 many 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.

The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal to implement a single, modernized programming solution which gives daily processing of taxpayer accounts.

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

The Business Master File (BMF) campus cycles are:

BMF transaction posting time frames are:

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:

The tax examiners applying these instructions must be familiar with the editing procedures in IRM 3.11.249, Returns and Document Analysis - Processing Form 8752, and the general procedures in IRM 3.12.38, BMF General Instructions. The telephone may be used to resolve questions about returns on the error register instead of rejecting those returns for subsequent correspondence action.

Tax examiners are not expected to review or redo the work of the Code and Edit tax examiner. However, if you notice an error or omission made by the tax examiner while working the error register, enter the correct information on the return and the error register. A complete review of the return is not required. If this section instructs something without how, refer to IRM 3.11.249, Returns and Document Analysis - Processing Form 8752.

This manual is the main source of information. Find procedures in the following IRMs:

Only a ten percent (10%) underpayment penalty can be charged on Form 8752, Required Payment or Refund Under Section 7519, account.

On the Form 3465, Adjustment Request, show the part of the remittance which is available for application to the penalty assessment if the return remittance includes an amount applicable to all or part of the penalty. Route the Form 3465 to Accounts Management (AM).

On the error register, enter Computer Condition Code (CCC) "X" in Field 01-E (CCC) to freeze the module from refunding or offsetting.

On the Form 8752:

For more information, refer to IRM 20.1.10, Penalty Handbook - Miscellaneous Penalties.

Statute of Limitations processing does not apply to Form 8752, Required Payment or Refund Under Section 7519, because the form is considered a required deposit by the taxpayer and not a payment of tax due.

Taxpayers may send a blank return stating they are not required to file or don't understand why they are receiving Form 8752, Required Payment or Refund Under Section 7519.

Research to ensure the filer is still on a fiscal year basis. If a fiscal year filer, Form 8752 must be filed, unless:

If a fiscal year filer and the criteria in 2(a) above does not apply, initiate correspondence. Inform the taxpayer that a partnership or S Corporation must file Form 8752 if it made an IRC 444 election to file their tax return on a fiscal year basis instead of the required year basis.

If the taxpayer is no longer a fiscal year filer, do not process the Form 8752, Required Payment or Refund Under Section 7519. Void the blank return.

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

Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner (or use Form 12648, Error Correction 90 TPNC). See IRM 3.12.249.4.16, Field 01-N, Taxpayer Notice Code (TPNC), for more information.

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.

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

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

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

The paper register (error register) is the physical representation of the tax return and any errors that have been identified. It is a printed form of the data input from the return, and appears in a standardized format used for nearly every type of Service Center Replacement System (SCRS) program. Data fields are designated with letters of the alphabet. Each section is designated with the section number.

The first part of the error register is the title line. The error register title line identifies the run number, master file, register status, source of the register, type of register, program, form number, format code, date and page number.

The error register title line uses a couple of terms "raw" and "loop" . The first-time a document in error prints on a register it is called a "raw" register. When a raw register prints, make various corrections to the register, trying to correct as many errors as possible. The document is then sent back through Integrated Submission and Remittance Processing (ISRP) system to be transcribed. If the correction resolves the error, the information is transmitted to the Enterprise Computing Center-Martinsburg (ECC-MTB). If all the errors do not clear, the error register will print again showing the errors that remain. The re-printed register is called a "loop" register. The title line shows if the register is a raw register or a loop register and how any times the register has looped (correction loop counter).

The Error Register has three sections (Section 01, Section 02, and Section 03 (Address Data)). The money fields (Field 01-A (Remittance), and all fields in Section 02, except Field 02-C (Deferred Ratio)), will be entered as dollars and cents.

Errors appear much differently on paper registers than they do in Error Resolution System (error codes). Most errors can be found by an asterisk (*) appearing to the immediate left of the Field Designator. Some are special errors that require unique treatment. Errors can occur anywhere in every section except for the Header Section. Research IDRS using Command Codes (e.g., NAMEE, NAMEB, INOLES, ENMOD, ENREQ, etc.) can be used to correct some Entity errors.

Form 8752, Required Payment or Refund Under Section 7519, is filed by partnerships (Form 1065, U.S. Partnership Return of Income) and S Corporations (Form 1120-S, U.S. Income Tax Return for an S Corporation) who made the IRC 444 election to file their income tax return on a year other than the required year. Partnerships and S Corporations use Form 8752 to figure and report the payment required under IRC 7519 or to obtain a refund of net prior year payment(s). A partnership or S Corporation must file Form 8752 if it made an IRC 444 election by filing Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, and its election is still in effect for the tax year. Any tax year that an IRC 444 election is in effect, including the first tax year the IRC 444 is made, is an "applicable election year" .

Taxpayers electing an IRC 444 election must file Form 8752 even if the required payment is zero (0). Taxpayers must make a required payment for the applicable election year if more than $500 or the required payment for any prior tax year was more than $500.00. The required payment represents the value by the tax deferral of owners of those entities for a taxable year other than the required tax year. For an S Corporation, the tax year resulting from an IRC 444 election ends in September, October or November. A partnership's tax year may differ and depends on the tax year of the partners. The required payment is considered a deposit.

Due Date:Form 8752 must be filed and required payment made on or before May 15 of the year following the calendar year in which the applicable election year begins. See IRM 3.12.249.4.9, Field 01-G, Penalty and Interest (P/I) Code, for more information.

The following is a table of Tax Class, Document Code, and Master File Tax (MFT) for Form 8752, Required Payment or Refund Under Section 7519.

Use Action Codes to correct errors on the paper register (error register). Every correction made on an error register or reject register must have an Action Code. The Action Code signifies to the computer what action should be taken. Using Action Codes are similar to correcting an error screen on the computer, though the process is not as instantaneous.

Each Action Code has a different purpose. Only one Action Code may be entered at any time. If two Action Codes are used, the record will "loop" without corrections. If incorrect data is present in addition to non-correctable data, the incorrect data should be corrected first. The error register will then "loop" , and further actions can be taken at that time. No other Action Code can be used with Action Codes 0, 1, 2, 3 or 7. If incorrect data is present, it must be corrected with Action Codes 4, 5 or 6, before Action Code 1 is used. Individual descriptions of the valid Action Codes for most error registers are provided below.

Action Code 0 is used to show that the data in the record is correct and that the computer's computations should be disregarded. Verify the taxpayer's figures before using this Action Code. Only use this if the correct tax and data are printed in the error register. Action Code 0 will accept a record as transcribed and send the record to Enterprise Computing Center-Martinsburg (ECC-MTB). Action Code 0 is written to the left of Section 01.

Action Code 1 is used with Taxpayer Notice Codes (TPNCs), to issue math error notices. When the data in the record is correct, but the taxpayer's computations are incorrect ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ a TPNC will be sent to inform the taxpayer of their error. This code may not be used if an amount field has a transcription error or if a field validity error is present in any field of a section. No other Action Code may be used in the same correction attempt. All validity errors must be corrected before Action Code 1 can be used; otherwise, the record will "loop" . Action Code 1 and the correct TPNC are written to the left of Section 01, and a working trail is left in the upper left-hand corner of the return.

Action Code 2 is used to delete a rejected record from processing. It can't be used on a raw register. Only Rejects will use Action Code 2. Action Code 2 is written to the left of Section 01.

Action Code 3 is used to reject a record when it is unprocessable. Use of Action Code 3 will force the record to the reject register. It must never be used on a record already in reject status. When using Action Code 3, attach Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip, stating why the return is being rejected. Any of the following types of returns can be unprocessable.

Action Code 4 is used to delete a section from a record. This Action Code is used when information has been erroneously or unnecessarily entered into a section, and the entire section is not needed for processing. Each section is shown on the error register and will appear as the first two digits on the first line of print for each section. All sections can't be deleted; therefore, a record with only one section can't have an Action Code 4 correction. It can't be used on certain sections, such as Section 01, which are required for processing. Action Code 4 is written to the left of the section to be deleted.

Action Code 5 is used to add a section to a record when the section was not transcribed. The Action Code is written in the space below the last printed section of the error register. Enter Action Code 5 on the error register to the left of the added section. The section number, alpha field designator(s), the data for the added field, and the applicable field breaker (use a comma (,) for a positive amount and a pound sign (#) for a negative amount) follow Action Code 5 in the order that they normally appear in the section. Enter only those fields with data present.

Action Code 6 is used to change information in a field or fields of a section within the record. The computer identifies each field of a section with an Alpha Field Designator (AFD) and prints the AFD before the field on the error register. The Action Code is written to the left of the section where a field requires correction. To correct an invalid field:

Action Code 7 is used to show that the data on the error register is correct and that no action is necessary. Action Code 7 may not be used with any other Action Code. All corrections requiring Action Codes 4, 5, and 6 must be done before Action Code 7 may be used. This Action Code may be used to clear a record that has been sent to the error register for one-time review. If information for a particular section was not input, the section may be generated for review with an asterisk before the section number. Use Action Code 7 to clear this item if no error exists.

Action Code 9 is used to re-reject a reject "loop" register for correspondence or other suspense actions. Action Code 9 is written to the left of Section 01.

Enter Action Codes 0, 1, 2, 3, and 7 on the error register to the left of Section 01.

Enter Action Codes 4, 5, and 6 on the error register to the left of the correct section number.

If an invalid correction is made to an error register, the error will return to be corrected again. When this happens, it is called a "loop" error register. Error Reason Code "AA" will print on the "loop" error register. The "AA" is simply for information.

Correct the error register as if no prior attempt at correction has been made.

ISRP Error is an error identified by the Integrated Submission and Remittance Processing (ISRP) edit run.

The ISRP Error Indicator is printed to the left of the section number. This error will appear on the error register as shown in the following table:

All fields of a section must be examined when this condition exists. If Section 01 of a return is error coded, also examine the tax base data section for errors to ensure the return data is for the taxpayer whose name is in Section 01.

Even though one or more sections of a record are error coded, the validity and consistency checks necessary for the record are made for all sections. Line out each incorrect field, and enter the correct data. Use Action Code 6. If the record is correct as it appears on the error register, enter Action Code 7 on the error register.

A Terminus Error results when:

When this error is present, two asterisks (**) will appear to the immediate left of the section number.

Correct a Terminus Error as follows:

If data is correct on the error register, re-enter a field, using Action Code 6 to send the record to good tape.

Field Validity Errors are the most common type of errors.

A Field Validity Error appears with an asterisk (*) to the immediate left of the field that is in error. All fields will be printed on the error register. Some fields must have data. If they are blank, they are invalid. The field will be in error if:

Correct a Field Validity Error as follows:

There are some fields that are asterisked (on the raw only) for a cursory review. These may be cleared with Action Code 7 if there are no other errors present.

Field 01-A (Remittance) can't be changed in Error Resolution. If the amount is incorrect, treat the return and related error register as unprocessable. Reject with Action Code 3, and prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip, to explain the error or follow local procedures. Rejects will prepare Form 3893, Re-Entry Document Control, after corrective action has been taken.

If a remittance amount is present, the received date must be present. See IRM 3.12.249.4.8, Field 01-F, Received Date.

Rejects will determine the proper application of an excess remittance through research, correspondence, or other existing procedures.

When the Reject tax examiner determines that the excess remittance should be applied to a different tax class or module, enter Computer Condition Code (CCC) "X" on the return and the error register. This code will freeze the tax module from refunding or offsetting by generating a Transaction Code (TC) 570.

The tax examiner will prepare Form 3465, Adjustment Request, to show the amount and module in which the credit should be applied.

See IRM 3.12.38, BMF General Instructions, for more information.

Field 01-B (Name Control) must have one to four characters. If the name control has fewer than four characters, every position must be accounted for by entering the number of blanks and encircling it. When all spaces in this fixed field are not accounted for, the record will loop. To avoid unnecessary loops, enter the name control data (when less than four characters) and account for the blanks by entering the number of blanks and circling the number. See Figure 3.12.249-1, Fixed Length Correction.

Figure 3.12.249-1

Error register displays the following information in Section 01 to correct a fixed length field:Action Code 6 is entered to the left of Section 01.Field A reads: A130500Field B shows an asterisk to the left of BName Control COE followed by a circled 1 is entered to the right of Field 01-B. The three characters in COE followed by the 1 account for the four required characters in Field 01-B.Field C reads: C123456789+Field D reads: D202312+Field E is blank white space and +Field F reads: 20240515 +Field G is blank white space and +Field H is blank white space and +.

Please click here for the text description of the image.

The name control and check digit each have their tests for validity.

A check digit will always be the first correction choice. It is invalid if:

The check digit is derived by a mathematical computation performed by the computer on the Employer Identification Number (EIN). It is present on mail labels provided by the IRS and is only used when that mail label is present. To correct this, refer to the check digit on the label.

A name control will be entered if the check digit is unavailable. It is invalid if:

To correct this, line through the entry in Field 01-B (Name Control) and enter the correct name control above it. If the name control has fewer than four characters, every position must be accounted for by entering the number of blanks and encircling it. See Figure 3.12.249-1, Fixed Length Correction.

To determine the correct name control, follow the guidelines in Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area.

If the transcribed name control does not match the name control for the transcribed EIN on the Entity Index File (EIF), there will be an underprint to Field 01-B (Name Control).

The name control underprint will be removed when the following occurs:

When the name control on the return does not match the name control on the EIF, one of the following has occurred:

To correct this, compare the entries in Field 01-B (Name Control) and Field 01-C (EIN) to the name control and EIN on the return.

If the EIN on the return and the EIN in Field 01-C (EIN) do not agree, correct Field 01-C (EIN) to agree with the return.

If the EIN on the return agrees with the EIN in Field 01-C (EIN), determine why the name control underprint is present. If the name control edited on the return agrees with the name control in Field 01-B (Name Control) then:

Determine the correct EIN and name control from the research.

If the EIN on the return is correct but the name control on the Entity Index File (EIF) is not conforming to the acceptable rules for name controlling:

For more information on Command Codes, see Integrated Data Retrieval System (IDRS) Command Code Job Aid at: http://serp.enterprise.irs.gov/job-aids/command-code/command-code.html.

This field has nine positions.

It is invalid if any of the following conditions are present:

If the EIN is invalid, take the following action:

Reject Correction:

This field has the ending month and year of the tax period covering the return. The tax period ending is printed, in year-month (YYYYMM) format (e.g., December 31, 2023, is printed 202312).

The field is invalid if:

Determine the tax period by the year (printed) on the face of the tax form (e.g., for the 2023 tax form, the tax period should be "202312" ). For example, if an election year ends September 30, 2023, the tax period is 202312, not 202309. Taxpayers are advised to edit changes on the form to the tax year for prior tax periods.

The tax period may be a calendar year (e.g., 20XX12). Editing is required only if the "applicable election year ending" is other than blank. Circle the taxpayer's entry and enter the correct tax period.

Tax Cuts and Jobs Act of 2017, Public Law 115-97, Section 11001 changed the Section 1 tax rates. Form 8752, Required Payments or Refund Under Section 7519, Line 9a rate changed from 40.6% to 38% for tax years beginning after December 31, 2017. Refer to the Tax Years and Rates table below.

If a Form 8752 is received for a future tax period (e.g., if the tax period ending is after the current processing date), enter Action Code 3 on the error register and prepare a Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip to request Rejects to research for postings.

Computer Condition Codes (CCCs) are used to identify a special condition or computation to post to the Master File and are entered in the upper left margin of Form 8752, Required Payment or Refund Under Section 7519. CCCs "F" , "G" , "O" , "U" (on ISRP (Submission Processing) input only), and "X" are valid for Form 8752 processing.

The field is invalid if CCCs other than those above are used. See IRM 3.12.249.4.6.1 through IRM 3.12.249.4.6.6 for descriptions of the CCCs.

See IRM 3.12.249.4.7, Field 01-E (CCC) Correction Procedures, for more information.

To correct Field 01-E (CCC), compare the CCC with the code entered on Form 8752, Required Payment or Refund Under Section 7519. If it is a transcription error, correct it by lining out the code in Field 01-E (CCC) and writing the correct code above it.

If Form 8752 is coded incorrectly, determine the correct code by referring to the Computer Condition Codes information. Correct the return by lining out the code in Field 01-E (CCC), writing the correct code above it, and entering Action Code 6 on the error register.

The field is invalid if Field 01-E (CCC) has a "G" and:

To correct this, determine if the return is an amended return.

If the return is amended:

If the return is not amended:

To correct this, refer to the tax period, computer condition codes, and received date on the return.

The field is invalid if CCC "U" is present on correction processing. The "U" code is used by Code and Edit when a return must be rejected. If it is necessary to reject a return in Error Correction, use Action Code 3.

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

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

If Field 01-F (Received Date) is invalid, refer to the return to determine the correct received date. Use Action Code 6, line out the received date on the error register and enter the correct date above the lined-out date.

Determine the received date using the following priority when one is needed but is not stamped on the return or a valid handwritten received date is not present:

If a return has been faxed to another area of the IRS and then sent to Submission for processing, do not enter the Enterprise Electronic Fax (EEFax) Date as an IRS Received Date. Enter a received date according to normal procedures.

Invalid Condition - Field 01-G (Penalty and Interest (P/I) Code) is invalid if any one of the following conditions are present:

Correction Procedures - Refer to the received date and tax period on the return to determine if the received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

ISRP transcribes a "1" (Partnership) or "2" (S Corporation) based on the box checked by the taxpayer. If one of the boxes is checked, and Field 01-H (Partnership/S Corporation Indicator) is blank, enter the correct code on the error register. If both boxes or neither box is checked, blank the field.

Field 01-I (Centralized Authorization File (CAF) Indicator) is invalid if it is not one of the following numbers: 1, 2, 3, 4, 7 or blank.

If Code and Edit entered an invalid number, enter one of the following codes in the lower right corner of Form 8752, Required Payment or Refund Under Section 7519, and correct with Action Code 6:

If the POA does not authorize refunds or notices, a code is not necessary on the return.

Form 8752, Box B (First Tax Year Box) is checked for the first applicable year the election under IRC 444 is in effect. No payment is due the first year. When this box is checked, there should not be any amounts in Lines 1 through 10 and a blank or zero on Line 11. Any error indicator will appear when Field 01-J (First Tax Year Box) equals "1" and there is an amount on any other line.

If Field 01-J (First Tax Year Box) was erroneously coded "1" , cross out the "1" and correct it with Action Code 6.

If any data was erroneously keystroked into Section 02 fields, delete Section 02 with Action Code 4.

If Box B (First Tax Year Box) is checked, and there are amounts in Lines 1 through 11:

Responses/No Responses to correspondence for Form 8752, Box B (First Tax Year Box):

This box (Box C) is used the year the IRC 444 election is terminated. If checked, CCC "F" must be present.

If Field 01-K (Terminating Event Box) was erroneously coded "1" , cross out the "1" and correct it with Action Code 6.

If Field 01-K (Terminating Event Box) was correctly coded, enter Computer Condition Code "F" in Field 01-E (CCC) and correct it with Action Code 6.

Field 01-L (Short Base Year Box) currently is not used for validity or consistency checks.

In all cases where there is an underprint of the name control, the record will not go to good tape until the applicable code is in Field 01-M (Entity Underprint Code), or the name control has been corrected to match the underprint.

The underprint in Field 01-B (Name Control), will not clear until either an Entity Underprint Code is entered in Field 01-M or until the name control matches the underprint.

Enter Entity Underprint Code "1" if the name control is underprinting and the transcribed name control is correct.

If there is no name control underprint, leave the field blank.

Taxpayer Notice Codes (TPNCs) can be input only as correction data, using Action Code 1. Put the correct tax to the left of the taxpayer's figures and TPNC in the upper left margin of the return (near the Name area).

All invalid conditions must be corrected before Action Code 1 is used.

The codes will appear in this field on the "loop" (correction run) when another error exists. When this occurs, correct any other invalid condition, but not this field. The use of another Action Code will cause this field to be blanked on the next "loop" . Correct by using Action Code 1 and the proper TPNC.

The valid TPNCs are as follows:

This field is transcribed from Line 1. Correct all misplaced entries, coding errors, and transcription errors in Field 02-A (Net Income Amount) and correct with Action Code 6.

This field is transcribed from Line 2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-B (Applicable Payment Base Year Amount) and correct with Action Code 6.

This field is transcribed from Line 3. The "Deferral Ratio" is the three-digit code representing the allowable deferral percentage for the taxpayer's elected deferral period. The term "Deferral Period" means the number of months between the last day of the elected tax year and the last day of the required tax year.

The "Deferral Ratio" is the three-digit code representing the allowable deferral percentage for the taxpayer's elected deferral period. The term "Deferral Period" means the number of months that occur between the last day of the elected tax year and the last day of the required tax year. There are eleven codes. These codes represent deferrals of one to eleven months and are shown in the table below.

Correct all misplaced entries, coding errors, and transcription errors in Field 02-C (Deferral Ratio).

Code and Edit is responsible for editing the correct number. If they did not edit the number or edited it incorrectly, follow these instructions:

If the taxpayer enters a percentage that does not approximate the allowable percentages, enter the acceptable code that is:

If the taxpayer puts down an amount that is less than six percent (6%):

If the taxpayer shows a deferral ratio in the form of a decimal rather than a percentage, convert it to a percentage.

This field is transcribed from Line 4. It is computed by multiplying the deferral rate (Line 3, Field 02-C) by the amount shown for the net income amount (Line 1, Field 02-A).

Correct all misplaced entries, coding errors, and transcription errors in Field 02-A (Net Income Amount), Field 02-C (Deferral Ratio), and Field 02-D (Line 1 - Deferred Amount) and correct with Action Code 6.

If the error in Field 02-D (Line 1 - Deferred Amount) causes an underprint in that field, send TPNC 01 using Action Code 1. If this field underprints to rounding of the percent, correct it with Action Code 7.

This field is transcribed from Line 5. It is computed by multiplying the deferral rate (Line 3, Field 02-C) by the amount shown for the applicable payment made during the base year (Line 2, Field 02-B).

Correct all misplaced entries, coding errors, and transcription errors in Field 02-B (Applicable Payment Base Year Amount), Field 02-C (Deferral Ratio), and Field 02-E (Line 2 - Deferred Amount) and correct with Action Code 6.

If the error in Field 02-E (Line 2 - Deferred Amount) causes an underprint due to rounding of the percent, then correct with Action Code 7.

If the error in Field 02-E (Line 2 - Deferred Amount) causes an underprint and there is no rounding of the percent, then send TPNC 02 (or other correct TPNC) using Action Code 1.

This field is transcribed from Line 6.

Correct all misplaced entries, coding errors, and transcription errors in Field 02-F (Applicable Payment Deferral Amount) and correct with Action Code 6.

This field is transcribed from Line 7.

Correct all misplaced entries, coding errors, and transcription errors in Field 02-G (12 Month or Short Year Amount). If a negative amount is shown, enter $0. Correct with Action Code 6.

This field is transcribed from Line 8.

Correct all misplaced entries, coding errors, and transcription errors in Field 02-H (Net Base Year Income Amount) and correct with Action Code 6.

This field is transcribed from Line 9a. It is computed by multiplying Line 8, Field 02-H (Net Base Year Income Amount) by the rate applicable for that period.

The tax years and rates are as follows:

Correct all misplaced entries, coding errors, and transcription errors in Field 02-H (Net Base Year Income Amount) and Field 02-I (Net Base Year Percentage Amount) and correct with Action Code 6.

If Field 02-I (Net Base Year Percentage Amount) is blank and there is an underprint, edit Line 9a with the amount of the underprint. Bring up the underprint from Field 02-I (Net Base Year Percentage Amount) and correct with Action Code 6.

If Field 02-I (Net Base Year Percentage Amount) is not blank and there is an underprint, send TPNC 03 using Action Code 1.

If the taxpayer filed a return for the current year on a prior year revision of Form 8752, but did not enter the correct "Net Base Year Percentage Amount" (Line 9a), Field 02-I (Net Base Year Percentage Amount) will underprint.

This field is transcribed from Line 9b. Depending on the prior payment history of the organization, it should be either the amount shown on Line 9a or $0.

Correct all misplaced entries, coding errors, and transcription errors in Field 02-J (Required Payment Amount) and correct with Action Code 6.

See Field 02-J (Required Payment Amount) procedures below:

Form 8752, Required Payment or Refund Under Section 7519, is used to remit the required payment. The required payment is intended to represent the value of the tax deferral by the owners of those entities using a taxable year other than the required year. Generally, the tax year must be a Fiscal Year (FY) ending in September, October or November. The required payment is considered a deposit.

This field is transcribed from Line 10.

Correct all misplaced entries, coding errors, and transcription errors in Field 02-K (Net Required Payment Balance) and correct with Action Code 6.

This field is transcribed from Line 11 (Required Payment Due) or Line 12 (Refund of Net Prior year payments). The computer will underprint with a positive amount for a balance due (Line 11) and a negative amount for an overpayment (Line 12). Field 02-L (Payment Due or Refund Amount) will asterisk if the taxpayer's figure differs from the computer figure ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Line 11 (Required Payment Due) is computed by subtracting Line 10 (Field 02-K) from Line 9b (Field 02-J). Line 12 (Refund of Net Prior year payments) is computed by subtracting Line 9b (Field 02-J) from Line 10 (Field 02-K).

Correct all misplaced entries, coding errors, and transcription errors in Field 02-L (Payment Due or Refund Amount) and correct with Action Code 6.

See Field 02-L (Payment Due or Refund Amount) procedures below:

If the taxpayer requests a "credit elect" or in some way asks that the refund be posted to the next tax period:

Any penalty or interest included by the taxpayer in Field 02-L (Payment Due or Refund Amount) should be subtracted from the amount on Lines 11 or 12 and the difference entered in Field 02-L. Also, "X" Lines 11 or 12 and edit the difference to the left of the "X" . If the taxpayer has made a math error, send TPNC 05 using Action Code 1.

Field 02-L (Payment Due or Refund Amount) will asterisk if either of the following conditions are present:

Correct all misplaced entries, coding errors, and transcription errors. If TC 840 has posted or is pending (PN 840) on IDRS to Command Code (CC) BMFOL or CC TXMOD and is the same overpayment on the return or Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund, is attached, then enter Action Code 6 or Action Code 7, as applicable, on the error register.

A manual refund on a Form 8752 will only be done if the refund is for ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If a refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡:

In the case of overpayment, the refund shall be payable the later of April 15 of the calendar year following the calendar year in which the election year begins or 90 days after the day the claim for refund is filed. In the case of a termination, the refund shall be payable the later of April 15 of the calendar year following the calendar year in which the election year ends, or 90 days after the day the claim for refund is filed. Credit interest will not generate on any Form 8752 refund of any amount at any time. Per Treasury Regulation 1.7519-2T(a)(6)(iii), interest is not allowed with respect to any refund of a required payment claimed on Form 8752. Credit interest can't be input under any circumstance, including where IRS actions have delayed the refund issuance.

Section 6695(b) imposes a penalty on paid tax preparers who fail to sign the returns they prepare. For Compliance to determine whether a penalty should be assessed, Submission Processing must capture certain paid preparer information during the initial processing of the return.

The Preparer Tax Identification Number (PTIN) is to the right of the Preparer's Signature in the PTIN box at the bottom right corner of Form 8752. Data may or may not be present in Field 02-M (PTIN).

Valid Condition - Field 02-M (PTIN) can be blank or numeric. If numeric, it can't be all zeros and it can't be all nines.

Invalid Condition - Field 02-M (PTIN) is invalid if any of the following conditions are present:

Correction Procedures:

Section 6695(b) imposes a penalty on paid tax preparers who fail to sign the returns they prepare. For Compliance to determine whether a penalty should be assessed, Submission Processing must capture certain paid preparer information during the initial processing of the return.

The Firm's EIN is below the Preparer's PTIN box at the bottom right corner of Form 8752, Required Payment or Refund Under Section 7519.

Valid Condition - Field 02-N (EIN) can be blank or numeric. It can't be all zeros or all nines.

Invalid Condition - Field 02-N (EIN) is invalid if any of the following conditions are present:

Correction Procedures:

Section 6695(b) imposes a penalty on paid tax preparers who fail to sign the returns they prepare. For Compliance to determine whether a penalty should be assessed, Submission Processing must capture certain paid preparer information during the initial processing of the return.

The Preparer Phone Number is below the Firm's EIN at the bottom right corner of Form 8752.

Valid Condition - Field 02-O (Preparer Phone Number) must be alpha or numeric or a combination of alpha, numeric or blank characters, not to exceed 10 characters.

Invalid Condition - Field 02-O (Preparer Phone Number) is invalid if other than 10 alpha, numeric or blank.

Correction Procedures:

Field 03-A ("In-Care-Of" Name) is in the Entity section of Form 8752.

Valid Condition - Field 03-A ("In-Care-Of" Name) has 35 positions and the valid characters are alpha, numeric, ampersand (), dash (-), slash (/), or percent (%).

Invalid Condition - Field 03-A ("In-Care-Of" Name) is invalid if any of the following conditions are present:

Correction Procedures:

Field 03-B (Foreign Address) is in the Entity section of Form 8752, Required Payment or Refund Under Section 7519.

Form 8752 with a foreign address are processed at the Ogden Submission Processing Campus (OSPC).

Valid Condition - Field 03-B (Foreign Address) has 35 characters and the valid characters are alpha, numeric and special characters.

Invalid Condition - Field 03-B (Foreign Address) is invalid if any of the following conditions are present:

Correct all coding errors and transcription errors.

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.

Field 03-C (Street Address) is in the Entity section of Form 8752.

Valid Condition - Field 03-C (Street Address) has 35 characters, and the valid characters are alpha, numeric and special characters.

Invalid Condition - Field 03-C (Street Address) is invalid if any of the following conditions are present:

Correct all coding errors and transcription errors.

Field 03-C (Street Address) is invalid if a Major City Code (MCC) is present in Field 03-D (City) and a street address is not present.

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 Form 8822 (or Form 8822-B) to the return.

Field 03-D (City) is in the Entity section of Form 8752, Required Payment or Refund Under Section 7519.

Valid Condition - Field 03-D (City) has a maximum of 22 characters.

Invalid Condition - Field 03-D (City) is invalid if any of the following conditions are present:

Correction Procedures - Refer to the city shown on the return.

Field 03-D (City) and Field 03-E (State) are invalid if a Major City Code (MCC) is present and a state code is also present in Field 03-E (State).

To correct this, refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to verify the MCC.

If the MCC is correct, delete the state code entered in Field 03-E (State).

If the MCC is not correct:

Field 03-D (City) and Field 03-F (ZIP Code) are invalid if an MCC is present and the ZIP Code is invalid for the city.

To correct this, refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to determine the correct MCC and ZIP Code.

Field 03-D (City) is invalid if the MCC is invalid.

To correct this, refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to verify the MCC.

See Exhibit 3.12.249-7, U.S. Possessions/Territories and ZIP Codes, for use with address corrections.

Field 03-E (State) is in the Entity section of Form 8752, Required Payment or Refund Under Section 7519.

Valid Condition - Field 03-E (State) is two alpha characters.

Invalid Condition - Field 03-E (State) is invalid if any of the following conditions are present:

Refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to determine the correct state code.

Field 03-E (State) and Field 03-F (ZIP Code) are invalid if the ZIP Code is invalid for the state.

To correct this, refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to verify the state and ZIP Code on the error register.

Returns with foreign address changes and the following American possession address changes can be input via Integrated Submission and Remittance Processing (ISRP) with the return, the same as domestic address changes.

Field 03-F (ZIP Code) is in the Entity section of Form 8752, Required Payment or Refund Under Section 7519.

Valid Condition - Field 03-F (ZIP Code) can 5, 9 or 12 numeric characters.

Invalid Condition - Field 03-F (ZIP Code) is invalid if any of the following conditions are present:

Correction Procedures - Refer to the return and attachments to determine the correct ZIP Code.

See Exhibit 3.12.249-7, U.S. Possessions/Territories and ZIP Codes, for a valid ZIP Code.

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