The Ogden Submission Processing Campus (OSPC) receives the files directly from MCC for pre-edit processing. All the Business Master File (BMF) data items are stored in the database although not used in editing. All data items for electronic returns are also stored on a database for use in editing.

XML Relational Database (XRDB) is a database created by extracting data from electronically filed returns received by IRS in a XML format. The data are then mapped, loaded, and stored into ORACLE database tables.

Statistical editors in two submission processing campuses access the database through terminals connected to the OSPC via the Consolidated Data Network (CDN) telecommunications lines. Each selected and reformatted record contains some pre‑loaded items from XRDB if filed electronically, as well as some prior year SOI data. The editors then complete the editing and resolving of any tests which may fire during the edit process.

Below are words that require interpretation and their definitions.

IRM 1.13, Statistics of Income

Editor ID — Each editor is assigned a unique editor number which allows access to the system and provides anonymity.

Reviewers — Editors selected to reconcile quality review returns should be designated as a reviewer. Reviewers have special system access to functions which enable them to perform quality review analysis

Lead Editors — One or more editors are designated as Leads and identified as such through their editor ID. These lead editors have special system privileges and responsibilities.

The editing program consists of two screens and is referred to as split-screen editing. One screen is referred to as the TIF image. This is the image of the return by page. The second screen is referred to as the Edit screen. This is where editors enter the data. Editors can select which side the TIF image is displayed on from the File menu.

All data entered are stored to database tables.

Entries are right justified after pressing [ENTER]. In addition, commas appear in money amount fields after the [ENTER] or [Test F10] button is pressed.

Do not enter leading zeros except when instructed.

Key negative amounts with a negative sign preceding the number. For example, a taxpayer entry of (742) would be keyed as ‑742.

Enter all money amounts in whole dollars using rounding rules. The following are examples:

Unless otherwise instructed on percentages, edit the first two places after the decimal point using rounding rules. The following are examples:

When editing a Yes/No field, enter 'Y' or '1' for Yes or 'N' or '0' for No. Press [Enter] if null values are allowed.

Edit Order — The forms and schedules selected for editing are displayed in a specific predetermined order. Generally, attached Forms and Schedules are edited first. In many cases the bottom line of a form displays on the screen of a form to follow.

Restrictions — Users may navigate back and forth within a form as needed. No tests will fire until either the [TEST (F10)] button at the bottom of the screen is clicked or the [F10] key is pressed. Tests will begin to fire in the order predetermined by National Office. All fired tests must be resolved before moving to the next form.

Special Function Keys — These function keys will help navigate through the edit system and TIF image of the tax return.

Screen Design — To the extent possible, edit screens look like the pages of the tax return. Not all tax items are edited. The non-editable items are generally not on the screen; therefore, be extremely careful to edit the amount from the correct line.

Symbols — The following symbols or letters may be present to the left of a screen field or right of the screen prompt:

Generated Items — Some items are not edited, but are system computed. These items are designated by a lighter colored font. They appear on the screen, but the cursor bypasses them. They are display only and cannot be changed. However, the components used to generate this amount may be changed.

The Back Navigate Process — If an item is displayed which was originally edited from another form or schedule, it may not be changed on the display screen. A 'B' in the left margin identifies these items. Navigate back to the originating form to make any changes. Items marked with a ‘b’ are not display only and can be changed on the current edit screen or back navigate to the originating form.

File Menu — this menu can be accessed using a left mouse click on "File" or pressing [ALT+F] during editing. The following options are available for editors:

Error Encountered — If an error occurs which causes the program to crash, then an Error Encountered pop-up will appear. A comment describing the steps that caused the error to occur must be entered before clicking ‘Continue’ or ‘Close Application’.

Lookup Tables — The Lookup tables can be accessed by left clicking the mouse on the lookup menu or pressing [ALT+L] during editing. There are 14 Lookup tables available.

Help Options — There are ten help options available for the editors from the HELP drop down list:

Reports Options — The following user options are available under the Reports drop-down:

If the return was filed electronically, then the electronic data mapped by SOI will be displayed.

Pre-loaded E-Filed Data — All pre-loaded data must be reviewed for acceptability. It is important to review this data against the image of the tax return to ensure that data were loaded correctly. Data is loaded into database tables and displayed on the edit screen in a form or schedule for editing. Calc screen data will be loaded to the database and displayed only if the calc. screen is accessed.

Validation Checks — Consistency tests run only after the [Test (F10)] button has been pressed. Messages display at the top of the screen describing the error(s). In addition to consistency tests, system messages appear at the bottom of the screen for invalid entries, such as negative characters, invalid codes, etc. Invalid entries may also be designated with a red box outlining the invalid entry.

A single field may have numerous tests run on it. Tests are run in a specific sequence and each fired test must be resolved before the next test is performed.

When a test fires, the process stops and a message appears giving the test number, reference page for the edit manual, and a brief description of the condition. Wherever it may be helpful, computed amounts, out‑of‑balance amounts and other useful items are displayed in the message area. All fired tests must be resolved as they fire. On each error or validation test type, use the editing instructions to decide whether to correct or accept the test.

Test Types — There are six types of tests which appear in the error message. All tests begin with a Letter Prefix followed by numbers:

No test will fire on a form until [F10] or the [TEST (F10)] button at the bottom of the form is pressed. However, the form must be tested before the edit system will move to the next edit screen. All fired tests must be resolved as they fire. On each error or validation test type, use the editing instructions to decide whether to correct or accept the test.

Use the following steps to correct a Test:

Accepting Tests — When an ‘E’, ‘V’, or ‘L’ test should be accepted by using the [a] key or mouse to select [ACCEPT].

Must Tests — Must tests may not be accepted. However, if a must test has fired, there may be times when it is necessary to exit the system. Use the following procedures:

Error Type — There are four types of errors. They describe the status of tests that have fired.

The following credit Forms will not be edited along with the return to which it is attached. The data from these forms will still be collected and processed by SOI. The data will be loaded or inserted into our database and error corrected by National Office since few forms are reported. During pre-edit, editors will still need to identify and select these forms at Form Selection although they are not required to edit them. If the form is present but no money amounts are reported, then do not select the form and leave a comment. Make sure to leave a comment. This process applies to Forms 6478, 8609-A, 8820, 8826, 8834, 8844, 8845, 8864, 8874, 8881, 8882, 8896, 8910, 8911, and 8936.

There are two user tabs available to lead editors from the main 2022 Corporation Processing Screen (Returns Processing and Misc. Tools). Within each of these tabs, additional options are available based on the user type "L" = Lead, "R" = Reviewer, and "E" = Editor.

The following user options are available under the Returns Processing tab:

The following user options are available under the Misc Tools tab:

From the 1120 Main Menu, after selecting EDIT, entering an SCPL, and pressing [CONTINUE], the Return Identification Screen displays when entering the EDIT mode for the first time:

Re-entering EDIT mode to continue — After entering the SCPL and pressing the [Continue] button, the system will move to the screen last accessed with the cursor at the first field on the screen.

A form/schedule selection screen unique to each return type displays. Carefully scan through the image/return, when a form is found to edit, use the mouse to select/check the form selection box related to that form/schedule. When a form is selected, the system will automatically load the current page number of the image next to the form in the ‘Pg’ box. The page number may also be typed into the ‘Pg’ box. The system then navigates to the designated page of form/schedule when the edit screen is accessed. Some schedules located on the core pages of the 1120 and associated return types will have page numbers pre-loaded. If the pre-loaded page numbers are incorrect, you may type in the correct page number.

Corrections to Form/Schedule Selections — The form/schedule selection screen may be accessed at any point in the edit process to correct selections made on the first pass. Additional screens may be selected or previously selected screen may be de-selected. Press [ALT] and the right arrow key (or use the mouse) to access the "EXIT" menu in the banner at the top of the screen. Use the down arrow key to access the drop down list and place cursor on "Exit to form selection screen." Any form already completed is marked with a 'D'. Move the cursor to the point of correction and either clear the 'check' by using the mouse, or use the mouse to enter a 'check' depending on de-selecting or selecting a form, and press either the [F10] key or the [DO] button to confirm your selection. Make as many changes as necessary.

After the last form or schedule is edited, the Return Completion Screen will come up along with a comment box. Enter any applicable comments and [F10] to leave the comment box. To view all previous comments, use the [F8] key. If there are no comments to enter, use the [ESC] key to exit the comment box.

The system will display a screen with the buttons [FINISH], [EDIT], [MERGE] and [EXIT]. The [FINISH] button is highlighted except for a return worked as a 1504C then the [MERGE] will be highlighted. Press [ENTER], if editing is complete, to execute the Return Completion process. Use the mouse to select [EDIT] to go back into the return or [EXIT] to leave the return without completing it.

This work screen was designed for two reasons: 1) provide a screen of data items that may aid you in selecting an industry code and 2) record the results of research in the database for future use. The work screen will automatically appear following the Form Selection screen (for non-consolidated returns) or the Total Receipts Calculator (for consolidated returns) in the navigation order. The [Test (F10)] button must be pressed to leave this work screen.

This section only gives instructions related to accessing and using the Indy Sources screen.

The Industry Code Lookup Table may be entered while in the Indy Sources screen by pressing the [Indy Code Lookup [(ALT+F6)] button or at any time during editing by using the Lookup Menu.

Changes to the SOI industry code must be made through the Indy Sources screen. Any time the industry code is researched, whether changed or not, record any research on the Indy Sources screen.

The Corporation SOI study requires consolidated data. On occasion, the taxpayer files returns for the individual corporations within the group without providing a consolidated return. In these cases, the editor adds amounts across all returns or attachments and edits the sum. Calc. screens aid in this process. If a calc. screen is accessed for an e-filed return, the e-filed data will be loaded into the calc. edit screen.

Calc. screens are provided for the income statement, balance sheet, Forms 4562, 4797, 8825 and 8916-A. All return types will have calc. screens for their associated Forms 4562, and 4797. The 1120-RIC, and 1120-REIT will not have the calc. screens available for the income and balance sheet, but do have the online general calculator available.

To access the calc. screens:

If it is necessary to make changes to a field after all calculations have been totaled, you do not need to re‑enter the calc. screens. Any changes can be made directly on the screen.

Online general calculator — When [F11] is pressed, a "mini" on‑line general calculator in the form of a pop-up window displays on the edit screen. This calculator can be used on all money fields on any return, schedule, or attachment. The display shows the total amount entered. The general calculator operates like a standard adding machine.
To move the calculator, use the mouse to click on the dark blue banner at the top of the calculator. Click and hold the left mouse button and drag the calculator to the desired location on the screen.
After each amount, press [ENTER] to add or [-] to subtract. Pressing [F8] clears the entire calculation, [F6] reverses the sign of the current entry and [F5] clears the current entry.

The allocation screens are available for the following forms and their corresponding fields:

Refer to editing instructions for further information on the specific fields to which amounts may be moved from these "other schedule" attachments.

After the form is completed and in balance, the cursor moves to the ALLOCATION field. If you need to allocate amounts from an "other" field, press the [Allocation] button or the [F3] key. Otherwise, press [Test (F10)] or [F10] to bypass the allocation process and continue to the next form

Each allocation screen for a particular source field (the field from which money amounts are moved) "pops up" over the existing screen. On the right, the screen lists fields were amounts may be moved: destination fields. Each field has an unique two letter code assigned to it. The left side of the screen is a worksheet for allocation amounts to these coded fields. Both positive and negative amounts may be allocated; see Exhibits 3.49.8-58 for income statement restrictions and 3.49.8-63/64 for balance sheet restrictions.

A running total of the source field is displayed at the top of the allocation screen. This running total displays how much is left for allocation in a particular source field.

Enter as many items as you find that require allocation to another field. They may be entered in any order, within each allocation screen. More blank fields will display when you press [ENTER] on the last field. To change or correct an entry:

After you complete entering amounts for allocations within the first source field, press [PAGE DOWN] to display the next source field. Upon completion of allocations, press the [ESC] key, which will prompt the following question: "Do you want to exit the allocation process?" YES/NO. You must answer either Yes or No to confirm the exit. Alternatively, you may press [F10] to complete the allocation process. After either of these actions is performed, the following step occur:

Unless otherwise instructed in the edit manual, movement from other categories should always be made through the allocation screens. The screens may be accessed as many times as deemed necessary. Changes must be made by re-accessing the ALLOCATION SCREENS using the [F3] key. For this reason, it is recommended that a schedule be perfected before any allocations are made.

Certain tests only fire after allocations have been completed. See the specific form instructions for these associated tests.

Note any peculiar taxpayer entries, confusing situations, or instruction in the editing manual in comment windows accessed from any point on the return by pressing [F6]. Access Current Year comments by pressing [F8]. Use the mouse to select HELP then ‘View All Comments’ or press [F8] to access online comments from prior years when available.

After entering all comments, press [F10] to save them. [ESC] exits the screen without saving comments. Use the Backspace key or to erase all comments.

This screen displays automatically before the completion of a return. The comment screens can also be viewed in the browse mode.

When a comment has been entered the comment will display with:

Once a comment is entered and saved the comment cannot be deleted or edited.

When the fast forward (down arrow) key [↓] is pressed on an un-edited form or schedule, the program will zero-fill all numeric fields. The down arrow process will stop when a character field is encountered on some schedules, notably the Form 4797, Schedule D, Income/Deduction, Schedule J, and Balance Sheet, the down-arrow will not zero-fill when editing.

When a form or schedule has already been edited, this key moves the cursor forward to the last field on the screen unless it hits a null field.

The [ENTER] key must be hit before the [↓] key can be used again. The [Test (F10)] button must be pressed at the end of the screen to move to the next screen.

To move back several screens re-open the return at the designated schedule and re-edit from there.

Test correction procedures from the online editing manual are available to assist with correcting tests as they fire by pressing the [Help] button inside the appropriate test message box. Online help is also available with using the Total Receipts Calculator and can be accessed anytime during editing by accessing the HELP or use the mouse to click on the Help menu and select ‘Editing Manual’.

During editing, some return information might be helpful. Select HELP, then ‘View Control’ or [ALT+T] is selected by the mouse during the editing process, the return information will be displayed on top of the editing screen. Click on the [EXIT] icon or press ESC key to return to the regular editing screen. This information is available to lead editors and N.O. analysts only.

The Prior Year Lookup function displays current year data for all fields as well as data on any 1120 schedule from the two prior years.

In order to access the prior year lookup, press [ALT+J] or click on the LOOKUP menu on any schedule and then select ‘Prior Year’. A different form may be selected to view PY data once in the PY lookup feature. For any schedules with allocation screens, the prior year allocations can be accessed by pressing the [ALLO BROWSE] button.

While in the Prior Year Lookup for the balance sheet or income and deductions press the [Allocation] button at the bottom of the screen, to access the lookups for the allocation screens Allocation look-up for Form 1125-A can only be accessed from the income / deduction statement form.

The asset and liability code lookups display all dictionary items for their respective sides of the balance sheet. The columns are arranged in the order of current asset/liabilities, non-current asset/liabilities, and running schedule (see 3.49.8.43 for more information). The income and deduction code lookups display all dictionary items for their respective sides of the income statement. The other costs code lookup display all dictionary items that may be allocated within 1125-A. The two-letter code refers to the field to which the amount is allocated.

[ALT+F5] gives you the allocation dictionary after dictionary is open click the mouse in the "Search On" box and enter a specific term.

If the lookups were entered from the allocation screens, pressing [F10] next to a term enters the code into the code field. For the balance sheet, pressing [ENTER] toggles between current/non-current/ and running schedule codes.

Allocations should be made on the sub-consolidated level if the total of the subsidiary statements plus eliminations equals the amount reported for the field. If these amounts do not match, and the consolidated statement does, edit from on the consolidated level. Some terms in the dictionary should only be allocated for certain industry codes. The term will appear with the specific industry code in brackets.

When searching for a term, it is recommended that you search for a portion of one word within the reported term.

Only allocate terms found in the Dictionary. If you believe there to be a mistake or inconsistency, mark for lead. When in doubt, leave the amount where it was reported unless the following applies;

The Dictionary terms use a series of symbols and guidelines, which are important to know for purposes of navigating the Dictionaries.

The test number lookup is an online page reference for all tests in the editing manual. Press [ALT+U] or click on LOOKUP and select ‘Test Numbers’. All test numbers will display in alpha-numerical order. Search for a specific test number reference entering the test number and then pressing the [F10] key.

If more than one page number is listed for a specific test, it means that there are form types which have separate editing instructions for that test. The page numbers are listed in numeric order and correspond to the order the form types are listed in the manual.

This subsection is reserved for future use.

Listed below are some examples of the more common functions / keys used during editing.

Consolidated returns (those with subsidiaries that file the same type of tax form as the parent) are single returns containing combined financial data for a parent company and one or more subsidiary or affiliated companies. The companies in the group may be engaged in different kinds of industrial activities, but you must assign a single industry code to indicate the one predominant activity of the whole group. Use the Total Receipts Rule or Exceptions to the Total Receipts Rule using the combined receipts (after inter‑company eliminations) and other relevant information for all the companies in the group. However, if the return does not report which subsidiary(s)/company(s) inter‑company eliminations are from, code according to the total receipts reported. Financial information for each company in the group should be entered into the Total Receipts Calculator.

Except for those returns with exceptions to the Total Receipts Rule, the industry code selected should be the industry code for the business activity accounting for the largest percentage of the corporation's total receipts. The Total Receipts Rule is a two step process: (a) identifying the company(s) accounting for the largest percentage of the total receipts and (b) identifying the business activity of the company(s). "Total receipts" is the sum of the following entries:

Each company’s percentage of total receipts can be calculated by adding the components in a – f above for the individual company, then dividing it by the consolidated total for the components (the TR Calc will perform this calculation).

Pre-edit the Schedule C. If Intercompany Dividends are eliminated from Dividends during editing they should also be eliminated on the Total Receipts Calculator.

For Finance Industries: pre‑edit other income and allocate to specific income fields if other income is larger than dividends plus interest. Also, pre‑edit the balance sheet for "other" fields that need to be allocated.

A Total Receipts Calculator (TR Calc.) is available online for computing the Total Receipts Rule. TR Calc. help instructions can be found by clicking the [HELP] button (in the Consolidated Totals section) after entering the calculator. The Total Receipts Calculator must be used for all consolidated returns. All subs should be entered into the Calculator (including inactive subs). The editing system will automatically bring the TR Calc up after exiting Form Selection. TR Calc can be returned to at any time during editing.

The "Consolidated Totals" section of the calculator must be completed first. Next, the "Subsidiary" (bottom) section of the calculator must be completed. Every subsidiary contributing 5% or more to the total must be industry coded. If an industry code for a sub contributing less than 5% (including inactive subs) is not provided, use 900000 (not allocable). Once the “Sub List”/ “Sub Details” sections are complete, the [Update Summary Alt-F9] button will be enabled. Press this button to see a summary of the information in the “Sub List” section. Once the industry with the largest percentage of total receipts is determined, press the [Largest Sub Info F3] button to enter the single largest sub or the single largest of a group of subs accounting for the largest percentage of total receipts. Most of the information in this calculator will be preloaded if the return was filed electronically; however, all preloaded information must be verified.

In some cases, it is not necessary or possible to code according to the Total Receipts Rule. These cases are listed in (2) through (13), below.

Returns with no "Gross Income" but having "Deductions" are coded according to any available information pertaining to the business activity.

Banking

Open‑End Investment Fund (Form 1120 RIC) are coded 525910. These returns are filed on Form 1120‑RIC (which is titled "Regulated Investment Companies" on the form). If the taxpayer files Form 1120 and business activity is regulated investment company code "Other Financial Vehicles", 525990

Real estate investment trusts (REITS), are coded 525990 if they are mortgage REITS. Equity REITS should be coded 531110, 531114, 531120, 531130, or 531190 based on the content of the portfolio.

Combinations of Manufacturing and Installation (Construction) are usually coded for Manufacturing, especially if the construction involves the installation of the manufactured articles. Examples of such combinations are passenger and freight elevators or industrial furnaces and machinery. This rule includes the manufacturing and installation by contract. Code for construction only when the installation receipts are clearly predominant, at least 75% of total receipts.

Combinations of Manufacturing and Trade are coded for manufacturing when most of the receipts are from whatever is manufactured by the related company. If the manufactured good is made in a foreign country (which can sometimes be determined using outside sources), and only distributed in the U.S., then code for wholesale. Form 1125-A should be checked for large cost of labor and Other Deductions & Other Costs should be checked for large contract labor before considering manufacturing. Also, consider that labor may have been reported as Salaries and Wages. If Salaries and Wages are very large and there is other evidence of manufacturing (i.e., third party sources) consider manufacturing. If cost of labor/contract labor or large Salaries and Wages with other evidence of manufacturing is not present or is small compared to the other 1125-A items, then the return likely should not be coded for manufacturing. If manufacturing or wholesale trade cannot be determined, mark for Lead.

Real Estate - Returns showing rents as the largest single item of total receipts should not automatically be coded as real estate. Rent is a normal source of receipts in other industries also. For example, the actual operation of warehousing, pipeline transportation, and piers, as well as real estate, would normally show rents from real property but should be coded for the warehousing, pipeline transportation, etc. Rental of rooms, clothing, vending machines, automobiles without drivers, and construction and other equipment are coded as services. If the primary source of income of a manufacturer of business machines is rents, code for manufacturing.

Publishers - returns of newspapers or periodicals or other publishing which show advertising as the largest single item of total receipts are not coded as advertising, but are classified in the publishing industries as newspapers (513110), or periodicals (513120), or miscellaneous publishing (513190).

Electric Power Generation, Transmission and Distribution, 221100, Natural Gas Distribution, 221210, and Combination Electric and Gas Services,221500 have specific rules for both unconsolidated and consolidated returns. Code according to the following procedure:

Health Maintenance Organization (HMO’s) — If a company designates itself as an HMO, then it is important to determine whether they primarily are providing medical services or insurance premiums.