Part 4. Examining Process

Chapter 10. Examination of Returns

Section 16. Examination Operational Automation Database (EOAD)

4.10.16 Examination Operational Automation Database (EOAD)

Manual Transmittal

July 23, 2024

Purpose

(1) This transmits revised IRM 4.10.16, Examination of Returns, Examination Operational Automation Database (EOAD).

Material Changes

(1) Minor editorial changes have been made throughout this IRM. Also, website addresses and IRM references were reviewed and updated as necessary.

(2) Updated exhibits to reflect current codes in effect.

(3) IRM 4.10.16.1 added to conform to the new internal control requirements described in IRM 1.11.2, Internal Controls.

(4) IRM 4.10.16.2 Wage & Investment division renamed to Taxpayer Services.

(5) IRM 4.10.16.2.1 deleted and moved to internal controls.

(6) IRM 4.10.16.2.2.1 (2) added telephone number.

(7) IRM 4.10.16.2.2.2 (1) added Administrative Issues, Statutory Issue, General Income Issue, and Declassified Issue.

(8) IRM 4.10.16.2.2.2 (2) bullet list changed to a table.

(9) IRM 4.10.16.2.2.3 (3) a added note for NRP cases.

(10) IRM 4.10.16.2.2.3 (3) c added Agreed amount.

(11) IRM 4.10.16.2.2.4 (1) added see IRM 4.10.15 for additional information on Form 5344.

(12) IRM 4.10.16.2.3 (1) deleted verbiage related to IMS standup and copying cases to external media.

(13) IRM 4.10.16.2.4 (1) added state for clarity.

Effect on Other Documents

This material supersedes IRM 4.10.16, dated March 23, 2016.

Audience

Employees in the Small Business and Self-Employed (SB/SE), Large Business and International (LB&I), Tax Exempt and Governmental Entities (TE/GE), and Taxpayer Services operating divisions who conduct examinations of income tax returns (Forms 1040, 1120, 1120S, and 1065).

Effective Date

(07-23-2024)

Timothy J. Bilotta
Director, Examination Operations, Performance Planning and Analysis
Small Business/Self-Employed Division

4.10.16.1 (07-23-2024)

Program Scope and Objectives

  1. Purpose: This IRM section provides guidance on record keeping for examination results and tracks the effectiveness of the examination classification process. Examination Operational Automation Database (EOAD) provides data that tracks examination results by issue. This data is used to enhance the ability to identify specific areas of non-compliance based on examination results and track the effectiveness of the examination classification process. EOAD is used to track examination results for National Research Program (NRP) examinations and analyzed by the Government Accountability Office (GAO) and Treasury Inspector General for Tax Administration (TIGTA) as part of their audits of IRS examination activities. In addition, EOAD data is used to fulfill disclosure of examination results under agreements with state and local taxation agencies.

  2. Audience: These procedures apply to all examinations of Individual (Form 1040), Corporate (Form 1120), S Corporation (Form 1120S), and Partnership (Form 1065) returns.

  3. Policy Owner: The Director, Examination Planning Performance and Analysis – Small Business/Self Employed is responsible for EOAD.

  4. Program Owner: Examination Planning Performance and Analysis – Small Business/Self Employed is the program owner of EOAD.

  5. Primary Stakeholders:

    • Taxpayer Services

    • SB/SE

    • LB&I

    • TE/GE

    • Independent Office of Appeals (Appeals)

  6. Program Goals: Identify specific areas of non-compliance based on examination results and track the effectiveness of the examination classification process.

4.10.16.1.1 (07-23-2024)

Background

  1. EOAD electronically extracts data from Report Generating Software (RGS), collected by Correspondence Examination Automation Support (CEAS) and the Issue Management System (IMS) at the time cases are closed electronically.

4.10.16.1.2 (07-23-2024)

Authority

  1. Authority and purpose is pursuant to IRC 6103(h)(1) which provides for disclosure of returns and return information to officers and employees of the Department of the Treasury (including IRS) whose official duties require access for tax administration.

4.10.16.1.3 (07-23-2024)

Responsibilities

  1. Capture of EOAD data is mandatory for all examinations of Individual (Form 1040), Corporate (Form 1120), S Corporation (Form 1120S), and Partnership (Form 1065) returns.

  2. EOAD data must be entered for all examined issues, both adjusted and non-adjusted items, as well as all classified issues including those that are no-changed or subsequently declassified.

4.10.16.1.4 (07-23-2024)

Program Management and Review

  1. Program Reports include:

    • Issue Frequency Report

    • Issue Report

    • No-Change Analysis Report

    • Penalty Amount Report

    • Tax Credit Amount Report

    • Taxpayer Report

  2. Program Effectiveness: The data collection process from RGS is tested annually. The closed cases on EOAD are matched against closed cases on the Audit Information Management System (AIMS) monthly to determine the rate of collection of EOAD data. Collection rates below 95% are investigated further to determine if systemic issues are preventing data collection.

4.10.16.1.5 (07-23-2024)

Program Controls

  1. EOAD relies on the General Support Systems (GSS) common controls associated with the IRS Enterprise Active Directory domain structure to uniquely identify and verify the identity of each user. Direct access to the server is currently limited to the System Administrators and EOAD programmers.

  2. Dissemination of EOAD data to internal customers is done via a shared drive controlled by Information Technology (IT). Password protected data files for respective business operating divisions are placed in separate folders on the shared drive. Each data file has a unique password. Requests to access the data are submitted via WebAD\Qwert system and are reviewed by the EOAD business contact. Upon approval, the internal customer is approved for access to the drive. Once access is approved, the mapping instructions and password are shared with the customer.

4.10.16.1.6 (07-23-2024)

Terms/Acronyms/Definitions

  1. The following table defines terms relevant to this program that are used throughout this IRM section:

    Terms

    Term Definition
    Audit Information Management System (AIMS) The Audit Information Management System is a computer system used by Appeals, Examination, and TE/GE to control returns, to input assessment/adjustments into the Master File and to provide management reports. IRM 4.4 covers Examination’s use of AIMS and describes the data elements for AIMS.
    Internal Revenue Code (IRC) The Internal Revenue Code is prepared and published by the Office of the Law Revision Counsel (“OLRC”) of the U.S. House of Representatives pursuant to 2 U.S.C. 285b. The Code contains the general and permanent laws of the United States, organized into titles based on subject matter.
    Issue Management System (IMS) The Issue Management System is an electronic case management application for examiners, specialists, managers and others. IMS is a program that uses 2 different interfaces. One is a Web based application that requires no program installation and the other is a client-based application requiring installation by Information Technology. It supports existing and new examination processes. The application provides the Estate and Gift Tax program with case management tools needed to support planning, selection and examination. IMS is an official electronic record-keeping system used to store federal electronic records.
    Report Generating Software (RGS) RGS is a audit software program that is used by Examination, it supports an electronic case file and is used from pre-audit through case closure.
    Standard Audit Index Number (SAIN) The SAIN is a numbering system for examination issues.
    Uniform Issue List (UIL) The Uniform Issue List is a list of codes used to track examination issues for various reports.
     

  2. The following table defines acronyms frequently used throughout this IRM section:

    Acronyms

    Acronym Definition
    AIMS Audit Information Management System
    BMF Business Master File
    CCP Centralized Case Processing
    CEAS Correspondence Examination Automation Support
    EOAD Examination Operational Automation Database
    GAO Government Accountability Office
    GSS General Support Systems
    IIC International Individual Compliance
    IMF Individual Master File
    IMS Issue Management System
    IT Information Technology
    LAN Local Area Network
    LB&I Large Business & International
    MFT Master File Tax
    NAICS North American Industry Classification System
    NRP National Research Program
    PBA Primary Business Activity
    POD Post of Duty
    RGS Report Generating Software
    SAIN Standard Audit Index Number(s)
    SB/SE Small Business/Self-Employed
    SSSN Secondary Social Security Number
    TE/GE Tax-Exempt and Government Entities
    TIGTA Treasury Inspector General for Tax Administration
    TIN Taxpayer Identification Number
    UIL Uniform Issue List
     

4.10.16.1.7 (07-23-2024)

Related Resources

  1. The following IRMs are related to workpapers and reports:

    • IRM 4.10.9, Workpaper System and Case file Assembly

    • IRM 4.10.15, Examination of Returns, Report Generation Software (RGS)

    • IRM 4.46.6, LB&I Examination Process, Workpapers and Reports Resources

    • IRM 1.1.16.6.1.6, Examination System and Projects

    • IRM 1.1.16.5.4.3, Examination Data Management (EDM)

4.10.16.2 (07-23-2024)

Examination Operational Automation Database (EOAD)

  1. EOAD provides data that tracks examination results by issue. This data is used to enhance the ability to identify specific areas of non-compliance based on examination results and track the effectiveness of the examination classification process. EOAD is used to track examination results for NRP examinations and analyzed by GAO and TIGTA as part of their audits of IRS examination activities. In addition, EOAD data is used to fulfill disclosure of examination results under agreements with state and local taxation agencies. Therefore, it is important that data inputs are accurate.

  2. Data is captured by Small Business/Self-Employed (SB/SE), Large Business & International (LB&I), and Taxpayer Services examiners for examinations of all Forms 1040, 1120, 1120S, and 1065 using Report Generation Software (RGS) and Issue Management System (IMS) software.

  3. The focus of this IRM is on data entries in RGS and IMS that are captured by EOAD but generally do not affect tax computations. It is very important that examiners take great care in properly entering EOAD data since there is no subsequent review process to correct EOAD errors.

4.10.16.2.1 (04-26-2011)

Capture of EOAD Data Using RGS

  1. EOAD data is captured by RGS from examiners' inputs on the following screens in RGS:

    • Create Case screen

    • Case Information screen

    • Contacts screen

    • Issue screen

    • Tax Computation (IMF) and Create Report (BMF) screens

    • Form 5344

    • Compliance Evaluation screen

4.10.16.2.1.1 (07-23-2024)
Create Case, Case Information, and Contacts Screens

  1. Create Case screen - the following data is captured:

    • Taxpayer identification number (TIN)

    • Secondary social security number (SSSN)

    • Form type

    • Master file tax (MFT) code

    • Tax period

    • Source code

    • Activity code

    • Project code

    • Tracking code

    • Post of duty (POD) code

    • Audit Information Management System (AIMS) assignee codes

  2. Case Information screen - the following data is captured:

    • Name

    • Telephone number

    • Address

    • Filing state code

    • Filing zip code

    Based on the examiner's inputs in:

    • Return due date

    • Extended due date

    • Received date

    • Substitute for return checkbox

    RGS will generate a delinquency indicator for EOAD to indicate:

    • The return was filed timely

    • A valid extension was filed

    • The return was delinquent (filed late)

    • A return was not filed (i.e. substitute for return cases)

  3. Contacts screen - captures identification and contact information for the return preparer and representative(s). The proper completion of this information allows the ability to identify and address egregious return preparers.

4.10.16.2.1.2 (07-23-2024)
Issue Selection Screen

  1. The examiner creates issues in RGS using the drop down "Actions" menu to select the option that best describes the issue. The menu options are:

    • Administrative Issues - Are automatically created by RGS (can also be added manually if necessary). Administrative lead sheets automatically insert into administrative issues.

    • New Issue – This is an issue that has been identified by the examiner who has determined that it warrants additional inspection. New Issues are not Classified Issues nor are they directly related to a Classified Issue.

    • Classified Issue – This is an issue that has been identified through the issue classification process and appears on a Classification Check Sheet. All Classified Issues must be added and commented upon even if they are subsequently declassified. If a Classified Issue is declassified, check the declassified box on the issue adjustment screen. Add an adjustment record with the issue categorized as though it was examined. Enter the issue amount from the return in both the Per Return and Per Exam fields and select a Declassified Issue Reason Code.

    • New Issue Resulting From Classified Issue – This is an issue that can be directly traced back to a classified issue. For example, a classified balance sheet item could lead to one or more profit and loss items. These subsequent Profit and Loss issues would be identified as New Issue Resulting From Classified Issue.

    • Statutory Issue – This issue is created by RGS when a tax computation is run. These issues cannot be deleted and are assigned a "Reference" code of 599.

    • General Income Issue -This issue is created by RGS from examiner entries in "General Income" on the 1040 workcenter. These issues are assigned a "Reference" code in the 5xx series.

    • Declassified Issue - This issue is created by the examiner declassifying a classified issue.

    Note:

    Issues from different lines on a tax return must be created separately using the appropriate issue code and should not be combined.

  2. Once an issue is added, the examiner uses a pull-down menu in the IMF Code field to identify the issue. See Exhibit 4.10.16-1 for a complete list of IMF Issue Codes. The initial drop down menu selections are:

    Menu Selection Definition
    Form 1040 Exemptions and Income Self-explanatory
    Form 1040 Taxes and Credits Self-explanatory
    Premium Tax Credit and Health Care Self-explanatory
    Schedule A Self-explanatory
    Schedule C Self-explanatory
    Schedule D Self-explanatory
    Schedule E Self-explanatory
    Schedule F Self-explanatory
    Form 2106 Self-explanatory
    Generic Income, Expense and Tax Credits Self-explanatory
    999999 - Statutory Adjustment Self-explanatory
    699999 - Impact of DeMinimus Issues Self-explanatory
    Campus/Service Center Self-explanatory
    4NRP - Q Table Self-explanatory
    99999 - Change/No Change Self-explanatory
    Miscellaneous Issues Self-explanatory

  3. BMF issues are identified using the drop down menus in the SAIN, Standard Audit Index Number, field. See Exhibit 4.10.16-2, and Exhibit 4.10.16-3, respectively, for complete lists of sub-chapter S and partnership SAIN Codes. See IRM 4.46.6, LB&I Examination Process, Workpapers and Reports Resources, for a complete list of Corporate SAIN codes.

4.10.16.2.1.3 (07-23-2024)
Issue Adjustment Screen

  1. Once issues are identified, the Issue Adjustment screen is accessed using the "Add" function box.

  2. To promote accuracy and reduce time spent, EOAD fields should be completed concurrently with the examination of issues to the greatest extent possible.

  3. The following fields are captured by EOAD on the Issue Adjustment screen:

    1. Categorization - this selection determines how RGS will calculate the tax resulting from the adjustment. "The RGS Issue Reference Guide" is available for download at the Exam System Knowledge Base. This guide provides detailed instructions to examiners on how to properly categorize an adjustment based upon the IMF Issue Code selection to ensure RGS performs a proper tax calculation and that accurate EOAD data is captured.

      Note:

      For NRP Cases follow the NRP Issue Reference Guide located on the NRP Website -https://nrp.web.irs.gov/training.html#tab=tab1.

    2. Per return, Per exam amounts.

    3. Agreed amount - is the amount of the adjustment the taxpayer agrees with. If the taxpayer does not agree to all or part of the adjustment, modify or remove the agreed amount.

    4. Reason Code – a two-digit code that identifies the reason for the adjustment, why the issue was no changed, or declassified. The examiner should follow the drop down menus in RGS to select the code that best describes the reason the issue was or was not adjusted. See Exhibit 4.10.16-4.

      Note:

      Adjustments to Earned Income Credit issues or originating from Flow Through Entities require the selection of specific Reason Codes. Reason Codes for adjustments from Flow Through Entities are further divided to identify the Flow Through case as either NRP or Non NRP. For all other issues, select the code that best fits the reason the issue was or was not adjusted.

    5. Uniform Issue List (UIL) Code - SB/SE examiners are not required to complete this field.

    6. Rental Type Code – This field is completed for Form 1040 - Schedule E Rental Issues only in RGS. The drop down menu for this field is only activated on issues with Schedule E Rental IMF Issue Codes. Select the code that best describes the rental from the categories Residential, Vacation, or Commercial Rental. See Exhibit 4.10.16-5 for a complete list of Rental Type Codes.

    7. PBA/NAICS Code Per Return (Issue) – For all Form 1040 Schedule C or F and all Forms 1065, 1120, and 1120S issues, this field should be completed to reflect the code as reported by the taxpayer. The North American Industry Classification System (NAICS) will be used for returns for tax periods after 199811. The Primary Business Activity (PBA) Codes will be used for tax periods prior to 199812. The four-digit PBA Code should be expanded to six digits by placing two zeroes (00) before the code.

    8. PBA/NAICS Code Per Exam (Issue) – For all Form 1040 Schedule C or F and all Forms 1065, 1120, and 1120S issues, enter the NAICS code from the series of pull-down menus that best identifies the type of business for the issue being examined. NAICS codes will be used for returns for tax periods after 199811. PBA codes will be used for tax periods prior to 199812. The four-digit PBA code should be expanded to six digits by placing two zeroes (00) before the code. Code "000000" should be selected for issues involving Form 1040 Schedule E income subject to self-employment tax.

      Note:

      If the examiner is fully disallowing the schedule or return, such as in an IRC 183 adjustment, they should choose "D" to remove the NAICS code.

4.10.16.2.1.4 (07-23-2024)
Completion of RGS Tax Computation and Form 5344

  1. Before the Compliance Evaluation Screen can be completed certain RGS actions must be taken. The tax computation must be completed using RGS and all required fields in the RGS Form 5344 must be completed. Then the Form 5344 must be validated. See IRM 4.10.15, Examination of Returns, Report Generation Software (RGS) for additional information on Form 5344.

4.10.16.2.1.5 (01-02-2013)
Completion of the Compliance Evaluation Screen

  1. PBA/NAICS Code Per Return – This code reflects the principal business of the taxpayer and can be found on the return. In the case of Forms 1040 with multiple Schedules C or F, it is the code for the schedule with largest gross receipts per the return. North American Industry Classification System (NAICS) codes will be used for returns for tax periods after 199811. Primary Business Activity (PBA) codes will be used for tax periods prior to 199812. The four-digit PBA code should be expanded to six digits by placing two zeroes (00) before the code.

  2. PBA/NAICS Code Per Exam – This is the corrected code, based on the examiner’s determination for the principal business of the taxpayer. In the case of Forms 1040 with multiple Schedules C or F, it is the code for the schedule with largest gross receipts after completion of the examination. RGS provides a series of pull-down menus to assist the examiner in selecting the correct code. NAICS codes will be used for returns for tax periods after 199811. PBA codes will be used for tax periods prior to 199812. The four-digit PBA code should be expanded to six digits by placing two zeroes (00) before the code.

  3. Primary Occupation Code (Form 1040 only) – This is a three-digit code that identifies the occupation of the taxpayer with the largest source of wage income for the year being examined. This code should be selected based on the taxpayer’s largest source of wage income per exam regardless of whether the largest source is from the primary or secondary taxpayer. This field will be completed where the taxpayer is both a wage earner and self-employed. If no wages are earned, no code is entered. RGS provides a series of pull-down menus to assist the examiner in selecting the correct code.

  4. Amount Paid at Closing – This is the total amount paid for the applicable tax period at the time the examination was concluded or before the examination case is closed from the group.

  5. Study Type – This field will be left blank currently. It is a three-digit field that will be used to track cases for special surveys or research studies (not the same as current project codes).

  6. Upon completion of all fields, the Compliance Evaluation screen must be validated, saved, and printed. The printed copy must be placed in the case folder on top of the case file.

4.10.16.2.1.6 (03-23-2016)
Forwarding EOAD Data using RGS

  1. SB/SE and LB&I, International Individual Compliance (IIC) examiners will forward all closed cases by Local Area Network - Report Generating Software (LAN-RGS) unless that functionality is unavailable. The EOAD data is included in the electronic case file by the forwarding process.

  2. Forms 1040, 1120, 1120S, and 1065 examinations which could not be completed using LAN-RGS must be notated as such on the Form 3198, Special Handling Notice for Examination Case Processing. Any cases not fulfilling the requirements of IRM 4.4.12.11, EOAD Data Capture Procedures, will be returned to the originating examination group.

4.10.16.2.2 (07-23-2024)

Capture of EOAD Data Using IMS

  1. The IMS system captures the EOAD data in a format that can be shared with state and local taxation agencies.

  2. EOAD data is automatically extracted by IMS at case closure based upon examiners' inputs on various IMS screens. Instructions detailing the proper input of data in IMS can be found in the IMS Client program.

  3. For cases completed using IMS, EOAD data is included in the electronic case file by the forwarding process.

4.10.16.2.3 (07-23-2024)

Forwarding EOAD Manually - Centralized Case Processing (CCP) Responsibility

  1. If a disclosure is made to a state agency whose code is manual or not compatible with AIMS, or if the disclosure is of Non-Master File (NMF) information, the reporting will be done manually by preparing Form 5466-B, Multiple Record of Disclosure. Additional information regarding disclosure reporting requirements can be found at IRM 11.3.37, Record keeping and Accounting for Disclosures.

  2. State agency codes can be found in IRM Exhibit 11.3.37-4, State Agency Codes.

  3. Instructions for Form 5466-B, preparation can be found at IRM Exhibit 11.3.37-6, Multiple Record of Disclosure.

Exhibit 4.10.16-1

IMF Issue Codes

Code Issue
41007 Wages, Salaries and Tips, etc.
41008 Taxable Interest
41009a Ordinary Dividends
41009b Qualified Dividends
41010 State Refunds, Credits, or Offsets
41011 Alimony Income
41014 Other Gains or Losses From Form 4797
41015 IRA Distributions
41016 Pensions and Annuities
41019 Unemployment Compensation
41019a Unemployment Compensation Exclusion
41020 Social Security Benefits
41021 Other Income
41021a Form 2555 Foreign Income
41021b NOL Carryback
41021c NOL Carryforward
41021d MSA Taxable Payments
41021e MED+MSA Taxable Payments
41021f LTC Taxable Payments
41021g Form 4563 Income
41021h Income Excluded from Puerto Rico
41021i HSA Taxable Distributions
41021j HSA Qualified Distributions
41021k Gambling Winnings
41021I Section 461(I) Excess loss
41021m Net Section 965 Inclusion
41021n GILTI (Global Intangible Low-Taxed Income)
41021o Section 962 Election
4CX01 Sch C - Gross Receipts or Sales
4CX01a Sch C - Gross Receipts/Sales Merch/3rd Party
4CX01b Sch C - Other Gross Receipts or Sales
4CX01c Sch C - Income Reported on Form W-2
4C101z Sch C-EZ - Gross Receipts
4CX02 Sch C - Returns and Allowances and Oth. Adj.
4CX06 Sch C - Other Income
4CGL Schedule C Net Gain/Loss
4D001 Sch D - Short-Term Gain/Loss
4D004 Sch D - ST Gain/Loss - Forms 6252/4684/6781/8824
4D005 ST Gain/Loss-Prtnrship/S-Corp/Estate/Trust - Sch K1
4D006 Sch D - Short-Term Capital Loss Carryover
4D008 Sch D - Long-Term Gain/Loss
4D011 Sch D - LT Gain/Loss-4797/2439/6252/4684/6781/8824
4D012 LT Gain/Loss-Prtnrship/S-Corp/Estate/Trust - Sch K1
4D013 Capital Gain or Loss Where Sch D Not Required
4D013d Capital Gain Distribution
4D014 Sch D - Long-Term Capital Loss Carryover
4EX03 Sch E - Rents Received
4EX03a Sch E - Merchant Card/3rd Party Payments Received
4EX03b Sch E - Other Payments Received
4EX04 Sch E - Royalties Received
4EX23 Sch E - Real Estate Loss After Passive Limitation
4E131 Sch E - Inc/Loss-Prtnrship/S Corps-Passive/Non-Passive
4E136 Sch E - Inc/Loss-Estates/Trusts-Passive/Non-Passive
4E138 Sch E - REMIC Income or Loss
4E139 Sch E - Net Farm Rental Income or Loss
4FX01 Sch F - Sales-Livestock/Oth. Items Purch for Resale
4FX01a Sch F - Specified Sales-Livestock/Other Resale
4FX01b Sch F - Other Sales-Livestock/Other Resale
4FX02a Sch F - Specified Sales of Raised Products
4FX02b Sch F - Other Sales of Raised Products
4FX04 Sch F - Sales-Raised Livestock/Produce/Grains/etc.
4FX05 Sch F - Cooperative Distributions
4FX06 Sch F - Agricultural Program Payments
4FX07a Sch F-Commodity Credit Corporation Loans Reported
4FX07b Sch F-Commodity Credit Corporation Loans Forfeited
4FX08 Sch F - Crop Insurance and Disaster Payments
4FX08a Sch F - Spec. Custom Hire (Machine Work) Income
4FX08b Sch F - Other Custom Hire Income
4FX09 Sch F - Custom Hire (Machine Work) Income
4FX09a Sch F - Other Specified Income
4FX10 Sch F - Other Income
4FGL Schedule F Net Gain/Loss
4NRP Q Table
4TH01 Other Write in Income
4Z101a Sch C-EZ-Gross Receipts/Sales Merch/3rd Party
4Z101b Sch C-EZ-Other Gross Receipts or Sales
4Z101c Sch C-EZ-Income Reported on Form W-2
51006a Exemptions-Self/Spouse
51006c Dependent Children-Live with Taxpayer
51006d Dependent Children-Do Not Live with Taxpayer
51006e Dependent-Parents
51006f Dependent-Other
51006g Dependent-Other Displaced Individual
51023 IRA Deduction
51024 Student Loan Interest Deduction
51025 Archer MSA Deduction
51026 Moving Expenses
51027 Deductible Part of SE Tax
51028 Self-Employed Health Insurance
51029 Self-Employed SEP, Simple, and Qualified Plans
51030 Penalty on Early Withdrawal of Savings
51031 Alimony Paid
51032 Educator Expenses
51033 Tuition and Fees Deduction
51035 Domestic Production Activities Deduction (F8903)
51036 Standard Deduction
51036a Charitable Contributions for Standard Deduction
51037 Other Adjustments Affecting AGI
51037a "WBF" for the Deduction for Whistleblower Fees
51037b Jury Duty Fees
51037c Foreign Income Housing Deduction
51037d Personal Property Rental Expenses
51037e Reforestation Amortization
51037f Repayment of Supplement Unemployment Benefits
51037g Contributions to Section 501(c) Plans
51037h Contributions to Section 403(b) Plans
51037i Deduction for Clean-fuel Vehicles
51037j Unlawful Discrimination Claim Fees
51038 Certain Business Expenses from F2106(EZ )
51039 Health Saving Account Deduction (F8889)
51040 Qualified Business Income Deduction (QBID)
52101 Vehicle Expense
52102 Parking/Tolls/Transportation - Not Away From Home
52103 Travel Expense - Away From Home Overnight
52104 Other Business Expenses
52105 Meals and Entertainment
52107 Expense Reimbursement – Not Reported
5A001 Medical and Dental
5A003 Medical and Dental AGI Percentage
5A005a State and Local Income Taxes
5A005b State and Local General Sales Taxes
5A006 Real Estate Taxes
5A007 Personal Property Taxes
5A008 Other Taxes
5A009 Qualified Motor Vehicle Taxes
5A010 Home Mortgage Interest and points From Form 1098
5A011 Home Mortgage Interest Not From Form 1098
5A012 Points Not From Form 1098
5A013 Investment Interest
5A014 Qualified Mortgage Insurance Premiums
5A015 Cash Contributions
5A016 Non-Cash Contributions
5A017 Contributions Carryover
5A019 Casualty and Theft Loss
5A020 Other Unreimbursed Employee Expenses
5A021 Tax Preparation Fees
5A022 Other Expenses Subject to 2% AGI Limitation
5A027 Other Miscellaneous Deductions
5A028 Gambling Losses
5CX04 Sch C - Cost of Goods Sold
5CX08 Sch C - Advertising
5CX09 Sch C - Bad Debts From Sales or Services
5CX10 Sch C - Car and Truck Expenses
5CX11 Sch C - Commissions and Fees
5CX12 Sch C - Depletion
5CX13 Sch C - Depreciation and Sec. 179 Expense
5CX14 Sch C - Employee Benefits Programs
5CX15 Sch C - Insurance (Other Than Health)
5CX16a Sch C - Interest - Mortgage
5CX16b Sch C - Interest - Other
5CX17 Sch C - Legal and Professional Services
5CX18 Sch C - Office Expenses
5CX19 Sch C - Pension and Profit-Sharing Plans
5CX20a Sch C - Rent/Lease - Vehicles/Machinery/Equip.
5CX20b Sch C - Rent/Lease - Other Business Property
5CX21 Sch C - Repairs and Maintenance
5CX22 Sch C - Supplies
5CX23 Sch C - Taxes and Licenses
5CX24a Sch C - Travel
5CX24b Sch C - Meals and Entertainment
5C124c Sch C-EZ-Optnl Non-Deductible Meals/Entertainment
5C124z Sch C-EZ-Optional Meals & Entertainment
5CX25 Sch C - Utilities
5CX26 Sch C - Wages
5CX27 Sch C - Other Expenses
5CX30 Sch C - Expenses for Business Use of Home
5CX35 Sch C - Beginning Inventory
5CX36 Sch C - CGS - Purchases
5CX37 Sch C - CGS - Cost of Labor
5CX38 Sch C - CGS - Materials and Supplies
5CX39 Sch C - CGS - Other Costs
5CX41 Sch C - Ending Inventory
5C150 Sch C-EZ - Total Expenses – Lines 2a/2b not used
5C150z Sch C-EZ - Optional Other Expenses
5CX60 Sch C - Contract labor
5EX05 Sch E - Advertising
5EX06 Sch E - Auto and Travel
5EX07 Sch E - Cleaning and Maintenance
5EX08 Sch E - Commissions
5EX09 Sch E - Insurance
5EX10 Sch E - Legal and Other Professional Fees
5EX11 Sch E - Management Fees
5EX12 Sch E - Mortgage Interest
5EX13 Sch E - Other Interest
5EX14 Sch E - Repairs
5EX15 Sch E - Supplies
5EX16 Sch E - Taxes
5EX17 Sch E - Utilities
5EX18 Sch E - Other Expenses
5EX20 Sch E - Depreciation Expense or Depletion
5EX21 Sch E - Royalty Expenses
5FX01d Sch F - Cost/Other Basis of Livestock/Other
5FX02 Sch F - Cost/Oth. Basis of Livestock&Oth. Items-Ln1
5FX12 Sch F - Car and Truck Expenses
5FX13 Sch F - Chemicals
5FX14 Sch F - Conservation Expenses
5FX15 Sch F - Custom Hire (Machine Work)
5FX16 Sch F - Depreciation and Section 179 Expense
5FX17 Sch F - Employee Benefit Programs
5FX18 Sch F - Feed Purchases
5FX19 Sch F - Fertilizer and Lime
5FX20 Sch F - Freight and Trucking
5FX21 Sch F - Gasoline, Fuel, and Oil
5FX22 Sch F - Insurance (Other Than Health)
5FX23a Sch F - Interest - Mortgage
5FX23b Sch F - Interest - Other
5FX24 Sch F - Labor Hired
5FX25 Sch F - Pension and Profit-Sharing Plans
5FX26a Sch F - Rent/Lease - Vehicles/Machinery/Equipment
5FX26b Sch F - Rent or Lease - Other
5FX27 Sch F - Repairs and Maintenance
5FX28 Sch F - Seeds and Plants Purchased
5FX29 Sch F - Storage and Warehousing
5FX30 Sch F - Supplies Purchased
5FX31 Sch F - Taxes
5FX32 Sch F - Utilities
5FX33 Sch F - Veterinary, Breeding and Medicine
5FX34 Sch F - Other Expenses
5FX46 Sch F - Beginning Inventory
5FX49 Sch F - Ending Inventory
5TH01 Other Deduction/Expense
61001 Filing Status
61040a Tax from Form 8814
61040b Tax from Form 4972
61040c Other Write-ins to Tax
61041 Alternative Minimum Tax
61042 Additional Taxes
61043 Foreign Tax Credit
61044 Child or Dependent Care Credit
61045 Elderly or Disabled Credit
61046 Education Credit - Issue Name must be a SSN
61047 Rate Reduction Credit
61048 Child Tax Credit
61048a Credit for Other Dependents
61049 Adoption Credit From Form 8839
61050 Other Credits Not From Forms 3800, 8396, 8801, 8859
61050a Other Credits From Form 3800
61050b Other Credits From Form 8801
61050c Other Credits From Form 8396
61050d Other Credits From Form 8859
61050e Section 45R Credit for Health Care
61050f Clean Vehicles Credit (Form 8936)
61050g Previously Owned Clean Vehicles Credit (Form 8936)
61051 Retirement Savings Contribution Credit
61052 Residential Energy Credit From Form 5695
61052a Residential Clean Energy Credit (Form 5695)
61052b Energy Efficient Home Improvement Credit (Form 5695)
61053 Self-Employment Tax
61054 SS and Medicare Tax on Tip Income From Form 4137
61055 Tax on Qualified Plans
61056 Advance Earned Income Credit payments
61057 Household Employment Taxes
61058 Uncollected SS & Medicare Tax on Wages (F8919)
61059 W-2/1099 Federal Income Tax Withholding
61060 Est. Tax Pymts/Pr Yr Overassessment - not posted
61061 Earned Income Tax Credit
61061b NonTaxable Combat Pay Election
61062 Excess Social Security and RRTA Tax Withheld
61063 Additional Child Tax Credit
61063a Refundable Child Tax Credit
61064 Amt Paid w/Extension to File - not posted to TP’s Acct
61065 Frozen Refund
61065a Form 2439
61065b Form 4136
61065c Form 8885
61065d Form 8801, Refundable Credit
61065e Other Write-ins to Refundable Credits
61065f Qualified Sick/Family Leave Credits
61065g Deferral for Certain Sch H or SE filers
61065h Refundable Child or Dependent Care Credit
61065i Claim of Right Credit
61066 Other Taxes
61066a FTHBC Recapture
61066b Taxes from Form 8959
61066c Taxes from Form 8960
61066d Section 965 Net Tax Liability from Form 965-A
61066e Additional Tax from Schedule 8812
61067 Making Work Pay/Govt Retiree Credit
61068 Refundable American Opportunity Credit
61069 First-time Homebuyer Credit From Form 5405
61070 Recovery Rebate Credit
61070a Recovery Rebate Credit (CARES Act)
61071 Federal Telephone Excise Tax Credit
61072 Refundable Adoption Credit
62001 Health Care - Shared Responsibility Payment
62002 Premium Tax Credit (PTC)
62003 Excess Advance PTC (APTC) Repayment
62401 Accuracy Related Penalty - 6662
62402 Fraud Penalty - 6663
62403 Delinquency Penalty - 6651
62404 Estimated Tax Penalty - 6654
62405 Promoter Penalties
62406 Erroneous Claim for Refund or Credit Penalty - 6676
62410 Other Penalties (includes FBAR)
699999 Impact of DeMinimus Issues
6TH01 Other Tax/Credit
76150 User Specified 1 (Issue name and 4318 description required)
76200 User Specified 2 (Issue name and 4318 description required)
76250 User Specified 3 (Issue name and 4318 description required)
76300 User Specified 4 (Issue name and 4318 description required)
76350 User Specified 5 (Issue name and 4318 description required)
76400 User Specified 6 (Issue name and 4318 description required)
76450 User Specified 7 (Issue name and 4318 description required)
7C10X Sch C-1 - IRC 183
7C1F Sch C-1- Accounting Method
7EX0X Sch E - IRC 183
7FX0X Sch F - IRC 183
7FXC Sch F - Accounting Method
99999 Change/No Change
999999 Statutory Adjustment

Note:

For all the Schedule C, Schedule E, and Schedule F issues, the IMF Code displays an X to indicate the number of the schedule being adjusted, for example, 4C101, 4C201 or 4C301.

Exhibit 4.10.16-2

Sub Chapter S SAIN Codes

Code Issue
000 Issue does not exist
001 Precontact Analysis
002 Pre - Exam Conference
003 Preliminary Examination Time
004 Preparing Examination Plan
005 Coordination
006 Travel Time
007 Report Preparation
008 Examination Critique
009 Meetings
010 Review Protest / Prepare Rebuttal
010-01 Fast Track
011 Penalty Consideration
012 Form 5699 (Information Document Request Log)
013 Issue Control Sheet - Form 5701 (Notice of Proposed Adjustments)
014 Referrals to Specialists
015 Financial Interest
016 Correspondence
017 POA / Form 8821 (Tax Information Authorization)
018 Statute of Limitations
020 Prior Revenue Agent Report
021 Prior Appeals Report
022 Joint Committee Reports
024 Risk Analysis
030 Administrative Lead Sheet
031 LB&I Quality Measurement System Check Sheet
032 LB&I Joint Audit Planning Process Tool
033 Pre-audit Interview History Lead Sheet
034 Examiner's RRA 98 Compliance Guide
035 Team Manager Check Sheet
060 Claims
061 Self-Audit Adjustments (Affirmative Adjustments)
080 Planning File
100 Balance sheet (no balance sheet attached)
101 Cash
102 Trade notes & accounts receivable
102-01 Allowance for Bad Debts
103 Inventories
104 U.S. government obligations
105 Tax-exempt securities
106 Other current assets
107 Loans to shareholders
107-01 Loans to persons related to shareholders
108 Mortgage & real estate loans
109 Other investments
110 Buildings & other depreciable assets
110-01 Accumulated depreciation
111 Depletable assets
111-01 Accumulated depletion
112 Land (net of any amortization)
113 Intangible assets
113-01 Accumulated amortization
114 Other assets
216 Accounts payable
217 Mortgages, notes, bonds payable in less than 1 year
218 Other current liabilities
218-01 Related Party Accruals
219 Loans from shareholders
219-01 Loans from persons related to shareholders
220 Mortgages, notes, bonds payable in 1 year or more
221 Other liabilities
322 Capital stock
323 Additional paid-in capital
325 Retained earnings
325-01 Reconciliation of retained earnings
326 Cost of treasury stock
327 Adjustment to shareholders' equity
401 Gross receipts or sales
401-01 Sales to related entities
401-02 Merchant card and third party payments
402 Returns and allowances
409 Net gain (loss) from Form 4797, Part II
410 Other income (loss)
410-01 Partnership income (loss) (Tiered Entity)
410-02 Cancellation of Debt Income
502 Cost of goods sold (No Sch. A or F1125-A detail)
502-01 Inventory (Beginning)
502-02 Purchases
502-03 Cost of labor
502-04 Additional IRC 263A costs
502-05 Other costs
502-10 Inventory (Ending)
512 Compensation of officers
513 Salaries & wages
514 Repairs & maintenance
515 Bad debts
516 Rents
517 Taxes & licenses
518 Interest
519 Charitable contributions
520 Depreciation
521 Depreciation (other than page 1 Form 1120S)
522 Depletion
523 Advertising
524 Pension, profit sharing plans, etc. plans
525 Employee benefit programs
526 Other deductions (no schedule attached)
526-01 Administrative fees
526-02 Amortization
526-03 Automobile expense
526-04 Bonus expense
526-05 Consulting fees
526-06 Contract labor
526-07 Commissions
526-08 Computer expense
526-09 Dues & subscriptions
526-10 Education expenses
526-11 Equipment rental
526-12 Fringe benefits
526-13 Fuel expense
526-14 Gifts & awards expenses
526-15 Insurance expenses
526-16 Janitorial services
526-17 Leasing expense
526-18 Legal & professional fees
526-19 License & permit expenses
526-20 Maintenance & cleaning
526-21 Management & director fees
526-22 Meals & entertainment
526-23 Meeting, seminars & conventions
526-24 Miscellaneous expenses
526-25 Other expenses
526-26 Outside services
526-27 Postage & courier expense
526-28 Proposal or bidding expense
526-29 Public relations expense
526-30 Publication expense
526-31 Recruiting & training
526-32 Research & development
526-33 Royalty expense
526-34 Security expense
526-35 Shipping, freight & handling
526-36 Supplies - office
526-37 Supplies - tools & factory
526-38 Telephone expense
526-39 Travel expense
526-40 Utility expense
527 Domestic Production Activities
528 Schedule M-1 (Book vs. Tax)
528-01 Schedule M-2 (AAA Analysis)
528-02 Schedule M-2 (Other Adjustments Account Analysis)
528-03 SH Undistributed PTI
531 Energy Efficient Commercial Buildings
604-10 IRC 45R credit for health care
610-04 Lookback Interest
622-01 Excess net passive income tax
622-02 Tax from Schedule D (Built-In Gains)
622-03 Additional taxes - LIFO reserve recapture tax
622-04 Qualified opportunity fund - Form 8996
623-01 Payments
623-02 Tax deposits
623-04 Refundable credit - Form 8827, Line 8c
623-05 Other write-ins to refundable credits
623-06 Fuel tax credit
623-07 Telephone Excise Tax credit
624-01 Accuracy Related Penalty - IRC 6662
624-02 Fraud Penalty - IRC 6663
624-03 Delinquency Penalty - IRC 6699
624-04 Estimated Tax Penalty - IRC 6655
624-05 Promoter Penalties
624-10 Other penalties (includes FBAR)
625 BBA AAR imputed underpayment
633 Interest due under the look-back method - completed long term contracts
634 Interest due under the look-back method - income forecast method
701 Minutes & other records
703 Acquisitions, mergers & reorganizations
703-01 Schedule M-2
706 IRC 482 potential
707 Method of accounting
708 Initial return
709 Final return
710 Related party transactions
713 Mandatory compliance checks
713-01 Related returns
713-02 Prior & subsequent returns
713-03 Minimum inventory checks
713-04 Minimum income probe
713-05 Other filing checks
723 Changes in ownership
724 TEFRA/BBA/ILSC
725 Character of income (separately stated items)
726 Potentially abusive schemes
726-01 Form 8275 disclosure statement
726-02 Form 8886 reportable transaction
726-03 Transaction lacks economic substance
727 Termination or Invalid S Election
728 Reconcile Schedule K-1 to Schedule K
729 Losses and deduction claimed in excess of stock and debt basis
730 Passive activity losses and material participation
731 IRC 465 - at risk limitation
732 Corporate level limits
743 IRC 183 - hobby loss
801 Statistical sampling procedures
802–01 Computer audit specialist (CAS)
802–02 Employment tax examiner
802–03 International examiner
802-04 Engineer
802–05 Exempt organization examiner
802–06 Excise tax examiner
802-07 Financial products examiner
802-08 Economist
802–09 Actuary
802–10 Employee Plans
802-11 Appraisers
802–12 Exam Tech/Audit Aides
802–13 Contracting Officer's Technical Representative (COTR)
802–14 Tax Computation Specialist
803–01 Life insurance examiner
803–02 Property & Casualty insurance examiner
804 Other Classified Issue 1
805 Other Classified Issue 2
806 Other Classified Issue 3
807 Other Classified Issue 4
808 Other Classified Issue 5
809 Other Classified Issue 6
901-01 Ordinary income (loss) from trade or business
902 Net income (loss) from rental real estate
903 Other Gross Rental Income
903-01 Expenses from other rental activities
904-01 Interest income
904-02 Dividend income
904-03 Qualified dividend income
904-04 Royalty income
904-05 Net short-term capital gain (loss)
904-06 Net STCG / loss (>5-3-03) '03 only
904-07 Net long-term capital gain (loss)
904-08 Net LTCG / loss (28%)
904-09 Net LTCG / loss (5 Year)
904-10 Net LTCG / loss (>5-3-03) '03 only
904-11 Other portfolio income (loss)
904-12 Unrecaptured IRC 1250 gain
905 Net IRC 1231 gain (loss) from Form 4797
905-01 Net IRC 1231 gain (loss) (>5-3-03) '03 only
906 Other income (loss)
908 IRC 179 expense deduction
909 Deductions related to portfolio income
910 Other deductions
911 Interest expense on investment debts
911-01 Investment income (portfolio income)
911-02 Investment expenses (portfolio income)
912-01 Credit for alcohol used as a fuel
912-02 Low income housing credit IRC 42(j)(5)
912-03 Low income housing credit - other
912-06 Qualified rehab expense - rental activity
912-07 Credits - rental real estate activities
912-08 Credits - other rental activities
913 Other credits and credit recapture
914-01 AMT - Depreciation adjustment
914-02 AMT - Adjusted gain (loss)
914-03 AMT - Depletion (other than oil and gas)
914-05 AMT - Gross inc. - oil/ gas/ geothermal properties
914-06 AMT - Deductions - oil/ gas/ geothermal properties
914-07 AMT - Other adjustments / tax preference items
915 Name of foreign country or U.S. possession`
915-01 Gross income from all sources
915-02 Gross income sourced at SH level
915-03 Foreign gross income - passive
915-04 Foreign gross income - general
915-05 Foreign gross income - other
915-06 Allocable deductions SH - interest
915-07 Allocable deductions SH - other
915-08 Allocable deductions corp - passive
915-09 Allocable deductions corp - general
915-10 Allocable deductions corp - other
915-11 Total foreign taxes paid
915-12 Reduction in taxes available for credit
915-13 Total foreign taxes accrued
915-14 Foreign gross income - section 951A category
915-15 Foreign gross income - foreign branch category
915-16 Allocable deductions corp - section 951A category
915-17 Allocable deductions corp-foreign branch category
916-01 IRC 59(e)(2) expenditures
916-02 Type of expenditures
917 Tax-exempt interest income
918 Other tax-exempt income
919 Non-deductible expenses
920 Distributions
920-01 Non-cash distributions
920-02 Disproportionate distributions
920-03 Repayments of Loans from Shareholders
920-04 Distributions of Earnings & Profits
920-05 Distribution in Excess of Basis
920-06 Distribution of Property or Bargain Sale
921 Other items & amounts to be reported separately
922 Total dividend distributions from E & P
923 Investment income
924 Investment expenses
925 Qualified business income deduction - Section 199A
76150 User Specified 1 (Issue name and 4318 description required)
76200 User Specified 2 (Issue name and 4318 description required)
76250 User Specified 3 (Issue name and 4318 description required)
76300 User Specified 4 (Issue name and 4318 description required)
76350 User Specified 5 (Issue name and 4318 description required)
76400 User Specified 6 (Issue name and 4318 description required)
76450 User Specified 7 (Issue name and 4318 description required)
Exhibit 4.10.16-3

Partnership SAIN Codes

Code Issue
000 Issue does not exist
001 Precontact Analysis
002 Pre - Exam Conference
003 Preliminary Examination Time
004 Preparing Examination Plan
005 Coordination
006 Travel Time
007 Report Preparation
008 Examination Critique
009 Meetings
010 Review Protest / Prepare Rebuttal
010-01 Fast Track
011 Penalty Consideration
012 Form 5699 (Information Document Request Log)
013 Issue Control Sheet - Form 5701 (Notice of Proposed Adjustments)
014 Referrals to Specialists
015 Financial Interest
016 Correspondence
017 POA / Form 8821(Tax Information Authorization)
018 Statute of Limitations
020 Prior Revenue Agent Report
021 Prior Appeals Report
022 Joint Committee Reports
024 Risk Analysis
030 Administrative Lead Sheet
031 LB&I Quality Measurement System Check Sheet
032 LB&I Joint Audit Planning Process Tool
033 Pre-audit Interview History Lead Sheet
034 Examiner's RRA 98 Compliance Guide
035 Team Manager Check sheet
060 Claims
061 Self-Audit Adjustments (Affirmative Adjustments)
080 Planning File
100 Balance sheet
101 Cash
102 Trade notes & accounts receivable
102-01 Allowance for bad debts
103 Inventories
104 U.S. government obligations
105 Tax-exempt securities
106 Other current assets
107 Loans to partners
107-01 Loans to persons related to partners
108 Mortgage & real estate loans
109 Other investments
110 Buildings & other depreciable assets
110-01 Accumulated depreciation
111 Depletable assets
111-01 Accumulated depletion
112 Land (net of any amortization)
113 Intangible assets
113-01 Accumulated amortization
114 Other assets
216 Accounts payable
217 Mortgages, notes, bonds payable in less than 1 year
218 Other current liabilities
218-01 Related party accruals
219-01 All nonrecourse loans
220 Mortgages, notes, bonds payable in 1 year or more
220-01 Loans from partners
220-02 Loans from persons related to partners
221 Other liabilities
321 Partners' capital accounts
321-01 Final Schedule K-1 with Unresolved Negative Capital Account
321-02 Analysis of partner's capital account (Sch M-2)
400 Profit & loss statement
401 Gross receipts or sales
401-01 Sales to related entities
401-02 Merchant card and third party payments
402 Returns and allowances
403 Ordinary income (loss) from partnerships, etc.
403-01 Net farm profit (loss)
409 Net gain (loss) from Form 4797, Part II
410 Other income (loss)
410-01 Partnership income (loss) (Tiered entity)
410-02 Cancellation of debt income
502 Cost of goods sold (No Sch. A or F1125-A Detail)
502-01 Inventory (beginning)
502-02 Purchases
502-03 Cost of labor
502-04 Additional IRC 263A costs
502-05 Other costs
502-10 Inventory (ending)
510 Guaranteed payments to partners
510-01 Capital versus ordinary expense
510-02 Character of payment to retiring partner
513 Salaries & wages
514 Repairs & maintenance
515 Bad debts
516 Rent
517 Taxes & licenses
518 Interest
519 Charitable contributions
520 Depreciation
521 Depreciation (other than page 1 Form 1065)
522 Depletion
523 Advertising
524 Retirement plans, etc.
525 Employee benefit programs
526 Other deductions (no schedule attached)
526-01 Administrative fees
526-02 Amortization
526-03 Auto & truck expenses
526-04 Bonus expense
526-05 Consulting fees
526-06 Contract labor
526-07 Commissions
526-08 Computer expense
526-09 Dues & subscriptions
526-10 Education expenses
526-11 Equipment rental
526-12 Fringe benefits
526-13 Fuel expense
526-14 Gifts & awards expenses
526-15 Insurance expenses
526-16 Janitorial services
526-17 Leasing expense
526-18 Legal & professional fees
526-19 License & permit expenses
526-20 Maintenance & cleaning
526-21 Management & director fees
526-22 Meals & entertainment
526-23 Meeting, seminars & conventions
526-24 Miscellaneous expenses
526-25 Other expenses
526-26 Outside services
526-27 Postage & courier expense
526-28 Proposal or bidding expense
526-29 Public relations expense
526-30 Publication expense
526-31 Recruiting & training
526-32 Research & development
526-33 Royalty expense
526-34 Security expense
526-35 Shipping, freight & handling
526-36 Supplies - office
526-37 Supplies - tools & factory
526-38 Telephone expense
526-39 Travel expense
526-40 Utility expense
527 Domestic Production Activities
528 Schedule M-1
531 Energy efficient commercial buildings
604 Credits
604-10 IRC 45R credit for health care
609-10 Corporate Alternative Minimum Tax (CAMT)
610-02 Other taxes
610-04 Lookback Interest
623-01 Payments
623-07 Telephone Excise Tax credit
624-01 Accuracy Related Penalty - IRC 6662
624-02 Fraud Penalty - IRC 6663
624-03 Delinquency Penalty - IRC 6698
624-04 Estimated Tax Penalty
624-05 Promoter Penalties
624-10 Other Penalties (includes FBAR)
625 BBA AAR imputed underpayment
633 Interest due under look-back method - completed long term contracts
634 Interest due under the look-back method - income forecast method
700-01 Administrative
700-02 Pre-Audit/Interview/History
700-03 Required Filing Checks
700-05 Cost of Sales
700-06 Penalties
700-08 TEFRA Consideration
701 Partnership agreement & other records
703 Acquisitions, mergers & reorganizations
703-01 Schedule M-2
706 IRC 482 potential
707 Method of accounting
708 Initial return - IRC 195, 246, 1060
709 Final return - distributions
710 Related party transactions
712 Distributions in excess of basis
713 Mandatory compliance checks
713-01 Related returns
713-02 Prior & subsequent returns
713-03 Minimum inventory checks
713-04 Minimum income probe
713-05 Other filing checks
720 Initial return
721 Final return
722 Related party transactions
723 Changes in ownership
724 TEFRA/BBA/ILSC
725 Character of income (separately stated items)
726 Potentially abusive schemes
726-01 Form 8275 Disclosure Statement
726-02 Form 8886 Reportable Transaction Disclosure Statement
726-03 Transaction lacks economic substance
728 Reconcile Schedule K-1 to Schedule K
729 IRC 704(d) - losses and or deductions claimed in excess of basis
730 IRC 469 - passive activity losses and material participation
731 IRC 465 - At risk limitation
735 IRC 707 - disguised sales
736 IRC 704(c) & IRC 737
737 IRC 754 - election
737-01 IRC 743(b) - basis adjustment
737-02 IRC 734(b) - basis adjustment
738 IRC 708 - partnership terminations
739 IRC 704(b) - special allocations
739-01 Use of tax neutral partners (i.e. tax exempt or foreign)
740 Family partnership inconsistent with IRC 704(e)
741 IRC 752 - partner's share of liabilities
741-01 Nonrecourse
741-02 Qualified nonrecourse
741-03 Recourse/Other
742 IRC 741 - sale of partnership interest / Form 8308
742-01 IRC 751 Ordinary income recapture
742-02 IRC 755 - Allocation basis
743 IRC 183 - hobby loss
801 Statistical sampling procedures
802 Other Classified Issue 2
802–01 Computer audit specialist (CAS)
802-02 Employment tax examiner
802–03 International examiner
802-04 Engineer
802–05 Exempt organization examiner
802–06 Excise tax examiner
802-07 Financial products examiner
802-08 Economist
802–09 Actuary
802–10 Employee Plans
802-11 Appraisers
802–12 Exam Tech/Audit Aides
802–13 Contracting Officer's Technical Representative (COTR)
802–14 Tax Computation Specialist
803 Other Classified Issue 3
803–01 Life insurance examiner
803–02 Property & Casualty insurance examiner
804 Other Classified Issue 1
805 Other Classified Issue 2
806 Other Classified Issue 3
807 Other Classified Issue 4
808 Other Classified Issue 5
809 Other Classified Issue 6
901-01 Ordinary income (loss) from trade or business
902 Net income (loss) from rental real estate
903 Other gross rental income
903-01 Expenses from other rental activities
903-02 Portfolio income (loss) from ordinary dividends
903-03 Portfolio income (loss) from royalty income
903-04 Net short-term capital gain (loss)
903-05 Net long-term capital gain (loss)
903-06 Other portfolio income (loss)
904-01 Portfolio income (loss) from interest income
904-02 Portfolio income (loss) from ordinary dividends
904-03 Portfolio income (loss) from qualified dividends
904-04 Portfolio income (loss) from royalty income
904-05 Net short-term capital gain (loss)
904-06 Net STCG / loss (>5-3-03) '03 only
904-07 Net long-term capital gain (loss)
904-08 Net LTCG / loss (28%)
904-09 Net LTCG / loss (5 year)
904-10 Net LTCG / loss (>5-3-03) '03 only
904-11 Other portfolio income (loss)
904-12 Unrecaptured 1250 gain
904-13 Dividend equivalents
905 Net IRC 1231 gain (loss) from Form 4797
905-01 Net IRC 1231 gain (loss) (>5-3-03) '03 only
906 Other income (loss)
906-01 Cancellation of indebtedness (COD) - IRC 61(a)(12)
908 IRC 179 expense deduction
908-01 Section 179 expense deduction
908-02 Deductions related to portolio income
908-03 Other deductions
909 Deductions related to portfolio income
910 Other deductions
911 Interest expense on investment debts
911-01 Investment income included in portfolio income
911-02 Investment expense-deductions related to portfolio income
912-01 Credit for income tax withheld
912-02 Low income housing credit IRC 42(j)(5)
912-03 Low income housing credit - other
912-04 Credits related to rental real estate activities
912-05 Credits related to other rental activities
912-06 Qualified Rehabilitation Expenses - rental real estate activities
912-07 Credits related to rental real estate activities
912-08 Credits related to other rental activities
913 Other credits and credit recapture
914 Other credits
914-01 AMT - Depreciation adjustment
914-02 AMT - Adjusted gain (loss)
914-03 AMT - Depletion (other than oil and gas)
914-05 AMT - gross inc. - oil/gas/geothermal properties
914-06 AMT - Deductions - oil/ gas/ geothermal properties
914-07 AMT - Other adjustments / tax preference items
915 Name or foreign country or U.S. possession
915-01 Gross income from all sources
915-02 Gross income sourced at partner level
915-03 Foreign gross income - passive
915-04 Foreign gross income - listed categories
915-05 Foreign gross income - general limitation
915-06 Allocable deductions partner - interest
915-07 Allocable deductions partner - other
915-08 Allocable deductions partnership - passive
915-09 Allocable deductions partnership - listed
915-10 Allocable deductions partnership - general
915-11 Total foreign taxes paid
915-011 Net earnings (loss) from self-employment
915-12 Reduction in taxes available for credit
915-13 Total foreign taxes accrued
915-14 Foreign gross income - section 951A category
915-15 Foreign gross income - foreign branch category
915-16 Allocable deductions partnership - section 951A category
915-17 Allocable deductions partnership - foreign branch category
915-18 Other foreign tax information
915-021 Gross farming or fishing income
915-031 Gross nonfarm income
916-01 IRC 59(e)(2) expenditures
916-02 Type of expenditures
917 Tax-exempt interest income
918 Other tax-exempt income
919 Non-deductible expenses
920 Distributions
920-01 Distributions of property other than money
920-02 Distributions in excess of basis
920-03 Distributions of money (cash & securities)
920-04 Distribution of property or bargain sale
920-05 Distribution of cash and securities
921 Other items & amounts to be reported separately
923 Investment income
924 Investment expenses
925 Qualified business income deduction - Section 199A
76150 User Specified 1 (Issue name and 4318 description required)
76200 User Specified 2 (Issue name and 4318 description required)
76250 User Specified 3 (Issue name and 4318 description required)
76300 User Specified 4 (Issue name and 4318 description required)
76350 User Specified 5 (Issue name and 4318 description required)
76400 User Specified 6 (Issue name and 4318 description required)
76450 User Specified 7 (Issue name and 4318 description required)
Exhibit 4.10.16-4

Reason Codes

Categorization Code Description Example/Definition
Issue Changed - No Issue Penalty Asserted 02 Taxpayer unaware of tax laws or record keeping requirements Taxpayer may lack formal education or have a language barrier that prevents understanding requirements.
Issue Changed - No Issue Penalty Asserted 03 Disregarded record keeping rules Taxpayer understood law and requirements but taxpayer's poor record keeping contributed to the errors and inability to substantiate amounts claimed on the return.
Issue Changed - No Issue Penalty Asserted 05 Action or advice of Return Preparer - No Penalty asserted The error resulted from action or advice of paid preparer. The nature or amount of adjustment was not sufficient to warrant a penalty.
Issue Changed - No Issue Penalty Asserted 06 Inadvertent understatement or overstatement of income or deductions Taxpayer understood the law but inadvertently misstated items on the return.
Issue Changed - No Issue Penalty Asserted 14 Taxpayer entered item on the wrong form, schedule, or line Self-explanatory.
Issue Changed - No Issue Penalty Asserted 17 Intentional disregard of tax laws - No penalty asserted Taxpayer made intentional decision to understate income or overstate deductions, credits, or prepayments. However, the nature or amount of the adjustment was not sufficient to warrant a penalty.
Issue Changed - No Issue Penalty Asserted 18 Relied on advice of IRS Staff or Publications Taxpayer indicates the error was based upon advice from IRS personnel or information in IRS publications.
Issue Changed - No Issue Penalty Asserted 20 Taxpayer relied on tax preparation software The error resulted from taxpayer's improper data entry in software program.
Issue Changed - No Issue Penalty Asserted 21 Used 'gray area' in the law or regulations Taxpayer/return preparer took position on issue on interpretation of law.
Issue Changed - Issue Penalty Asserted 07 Intentional misstatement of income, deductions, credits, or prepayments Self-explanatory.
Issue Changed - Issue Penalty Asserted 10 Income/expenses entered on wrong form to reduce tax or increase credits For example, moving deductions from Schedule A to Schedule C to avoid SE tax.
Issue Changed - Issue Penalty Asserted 19 Action or advice of Return Preparer - Penalty asserted The error resulted from action or advice of paid preparer and was sufficiently blatant to warrant a penalty.
Issue Changed - Issue Penalty Asserted 32 Fraud The taxpayer omitted income or overstated deductions, credits, or prepayments with the intent to evade taxes.
Issue Changed - Issue Penalty Asserted 33 Abusive Schemes The taxpayer asserts standard frivolous filer arguments or has used other abusive schemes.
Issue Changed - Earned Income Credit Issue 60 No earned income Self-explanatory.
Issue Changed - Earned Income Credit Issue 61 Filing status changed to married filing separate status Self-explanatory.
Issue Changed - Earned Income Credit Issue 62 Requirement for filing Form 2555 met or Form 2555 filed Self-explanatory.
Issue Changed - Earned Income Credit Issue 63 Non-resident alien Self-explanatory.
Issue Changed - Earned Income Credit Issue 64 Investment income exceeds maximum Self-explanatory.
Issue Changed - Earned Income Credit Issue 65 Taxpayer/spouse is qualifying child of another Self-explanatory.
Issue Changed - Earned Income Credit Issue 66 Primary/secondary does not have a valid SSN for employment Self-explanatory.
Issue Changed - Earned Income Credit Issue 67 'Relationship test' for child claimed on Schedule EIC not met Self-explanatory.
Issue Changed - Earned Income Credit Issue 68 'Residency test' for child claimed on Schedule EIC not met Self-explanatory.
Issue Changed - Earned Income Credit Issue 69 'Age test' for child claimed on Schedule EIC not met Self-explanatory.
Issue Changed - Earned Income Credit Issue 70 EITC qualifying child does not have a valid SSN for employment Self-explanatory.
Issue Changed - Earned Income Credit Issue 71 Taxpayer/spouse is eligible to be claimed as dependent by another Self-explanatory.
Issue Changed - Earned Income Credit Issue 72 Main home outside United States for 6 months or more Self-explanatory.
Issue Changed - Earned Income Credit Issue 73 Increase to earned income or AGI or modified AGI (beginning Tax Year 2001) Self-explanatory.
Issue Changed - Earned Income Credit Issue 74 Decrease to earned income or AGI or modified AGI (beginning Tax Year 2001) Self-explanatory.
Issue Changed - Earned Income Credit Issue 75 Taxpayer denied, tie-breaker rule Self-explanatory.
Issue Changed - Earned Income Credit Issue 76 Change in qualifying children - Increase Self-explanatory.
Issue Changed - Earned Income Credit Issue 77 IRS processing error Self-explanatory.
Adjustments from Flow Through Entities - NRP 04 Adjustment to 1040 due to basis limitation on 1120S - NRP Adjustment was made to limit the shareholder's loss due to insufficient basis in the NRP S corporation.
Adjustments from Flow Through Entities - NRP 08 Adjustment to 1040 due to at-risk limitation on 1120S - NRP Adjustment was made to limit the shareholder's loss due to the amount at risk in the NRP S corporation.
Adjustments from Flow Through Entities - NRP 09 Adjustment to 1040 due to passive activity limitation on 1120S - NRP Adjustment was made to limit the shareholder's loss from the NRP Scorporation due to passive activity rules.
Adjustments from Flow Through Entities - NRP 12 Adjustment to 1040 due to basis limitation on 1065 - NRP Adjustment was made to limit the partner's loss due to insufficient basis in the NRP partnership.
Adjustments from Flow Through Entities - NRP 13 Adjustment to 1040 due to at-risk limitation on 1065 - NRP Adjustment was made to limit the partner's loss due to the amount at risk in the NRP partnership.
Adjustments from Flow Through Entities - NRP 15 Adjustment to 1040 due to passive activity limitation on 1065 - NRP Adjustment was made to limit the partner's loss from the NRP partnershipdue to passive activity rules.
Adjustments from Flow Through Entities - NRP 16 Adjustment to 1040 due to passive activity limitation on trust - NRP Adjustment was made to limit the owner/beneficiary's loss from the NRP trust due to passive activity rules.
Adjustments from Flow Through Entities - NRP 27 Due to change in S corp income/(loss) item - NRP Adjustments resulting from the audit of the NRP S corporation that affected the shareholder's share of ordinary income/(loss) and/or separately stated items.
Adjustments from Flow Through Entities - NRP 28 Due to change in trust/estate income/(loss) item - NRP Adjustments resulting from the audit of the NRP trust/estate that affected the owner/beneficiary's share of ordinary income/(loss) and/or separately stated items.
Adjustments from Flow Through Entities - NRP 29 Due to change in partnership income/(loss) item - NRP Adjustments resulting from the audit of the NRP partnership that affected the partner's share of ordinary income/(loss) and/or separately stated items.
Adjustments from Flow Through Entities - NRP 86 Investor Level Statute Control (ILSC) - NRP Investor Level Statute Control (ILSC) issue on an NRP case.
Adjustments from Flow Through Entities - NRP 87 TEFRA - Settlement Agreement - NRP NRP Case - Partner signed a Form 870-P, PT, L, or LT agreeing to the partnership adjustments binding the partners to their share of the adjustments.
Adjustments from Flow Through Entities - NRP 88 TEFRA - Defaulted FPAA - NRP NRP Case - Partner neither agrees nor petitions the Court resulting in the flow-through of the partnership adjustments to the partner.
Adjustments from Flow Through Entities - NRP 89 TEFRA - Court Decision - NRP NRP Case - Court issues a decision relative to the partnership adjustments allowing flow-through of adjustments to the partner.
Adjustments from Flow Through Entities - NRP 90 TEFRA - Bankruptcy - NRP NRP Case - Partner has petitioned the Bankruptcy Court and partnership items are converted to non-partnership items allowing the immediate flow-through of adjustments to the partner's return.
Adjustments from Flow Through Entities - NRP 91 TEFRA - AAR - NRP NRP Case - Tax Matters Partner (TMP) or partner has filed an Administrative Adjustment Request (AAR), which is an amended return for TEFRA partnerships. If accepted by the Service, these changes can be made at the request of the TMP or the partner.
Adjustments from Flow Through Entities - Non NRP 24 Due to change in S corp income/(loss) item Adjustments resulting from the audit of the S corporation that affected the shareholder's share of ordinary income/(loss) and/or separately stated items.
Adjustments from Flow Through Entities - Non NRP 25 Due to change in trust/estate income/(loss) item Adjustments resulting from the audit of the trust/estate that affected the owner/beneficiary's share of ordinary income/(loss) and/or separately stated items.
Adjustments from Flow Through Entities - Non NRP 26 Due to change in partnership income/(loss) item Adjustments resulting from the audit of the partnership that affected the partner's share of ordinary income/(loss) and/or separately stated items.
Adjustments from Flow Through Entities - Non NRP 34 Adjustment to 1040 due to basis limitation on 1120S Adjustment was made to limit the shareholder's loss due to insufficient basis in the S corporation.
Adjustments from Flow Through Entities - Non NRP 35 Adjustment to 1040 due to at-risk limitation on 1120S Adjustment was made to limit the shareholder's loss due to the amount at risk in the S corporation.
Adjustments from Flow Through Entities - Non NRP 36 Adjustment to 1040 due to passive activity limitation on 1120S Adjustment was made to limit the shareholder's loss from the S corporation due to passive activity rules.
Adjustments from Flow Through Entities - Non NRP 37 Adjustment to 1040 due to basis limitation on 1065 Adjustment was made to limit the partner's loss due to insufficient basis in the partnership.
Adjustments from Flow Through Entities - Non NRP 38 Adjustment to 1040 due to at-risk limitation on 1065 Adjustment was made to limit the partner's loss due to the amount at risk in the partnership.
Adjustments from Flow Through Entities - Non NRP 39 Adjustment to 1040 due to passive activity limitation on 1065 Adjustment was made to limit the partner's loss from the partnership due to passive activity rules.
Adjustments from Flow Through Entities - Non NRP 40 Adjustment to 1040 due to passive activity limitation on trust Adjustment was made to limit the owner/beneficiary's loss from the trust due to passive activity rules.
Adjustments from Flow Through Entities - Non NRP 92 Investor Level Statute Control (ILSC) Investor Level Statute Control (ILSC) issue.
Adjustments from Flow Through Entities - Non NRP 93 TEFRA - Settlement Agreement Partner signed a Form 870-P, PT, L, or LT agreeing to the partnership adjustments binding the partners to their share of the adjustments.
Adjustments from Flow Through Entities - Non NRP 94 TEFRA - Defaulted Final Partnership Administrative Adjustment (FPAA) Partner neither agrees nor petitions the Court resulting in the flow-through of the partnership adjustments to the partner.
Adjustments from Flow Through Entities - Non NRP 95 TEFRA - Court Decision Court issues a decision relative to the partnership adjustments allowing flow-through of adjustments to the partner.
Adjustments from Flow Through Entities - Non NRP 96 TEFRA - Bankruptcy Partner has petitioned the Bankruptcy Court and partnership items are converted to non-partnership items allowing the immediate flow-through of adjustments to the partner's return.
Adjustments from Flow Through Entities - Non NRP 97 TEFRA - Administrative Adjustment Request (AAR) Tax Matters Partner (TMP) or partner has filed an Administrative Adjustment Request (AAR), which is an amended return for TEFRA partnerships. If accepted by the Service, these changes can be made at the request of the TMP or the partner.
Issue No Changed / Declassified 51 No Change - Taxpayer Substantiated the Issue The issue was examined and substantiated.
Issue No Changed / Declassified 52 No Change - De Minimis The issue was examined and closed for lack of potential, immaterial change, or no-changed due to timing issues.
Issue No Changed / Declassified 53 Issue Accepted as Filed Examiner - identified issue that does not warrant further examination. Should never be used for NRP examinations.
Issue No Changed / Declassified 54 No Change - 1120S Study The issue was examined and accepted as filed as part of the 1120S NRP Study.
Issue No Changed / Declassified 84 Declassified - Employee not trained on classified issue Employee is unable to examine issue due to lack of training or experience.
Issue No Changed / Declassified 85 Declassified - No Audit Potential Classified issue that was not examined after a determination that it lacked audit potential.
Other 11 No Show / No Response / Undeliverable Mail Used for adjustments where the taxpayer did not keep any appointments or respond to contact attempts or where mail to the taxpayer was returned undelivered.
Other 22 Statutory Adjustment Automatic adjustments due to changes to income/other limits. This code is automatically generated by the report writing software.
Other 23 Change due to adjustment in another year, financial and tax accounting differences, or entity types - not intentional Self-explanatory. Do not use for adjustments resulting from flow-through entities.
Other 43 Audit reconsideration Adjustment based upon reconsideration of previous examination or IRS action. This includes Substitute For Return (SFR) assessment being corrected based upon the receipt of a filed return from the taxpayer.
Other 44 Computation or 'per return' Service Center error An adjustment necessary to correct a computational error on the return or incorrect transcription during return processing.
Exhibit 4.10.16-5

Rental Type Codes

Category Code Description
Residential 11 Single family house
Residential 12 Apartment or townhouse
Residential 13 Duplex house
Residential 14 Small apartment building - less than 5 apartments
Residential 15 Medium apartment building - 5 to 9 apartments
Residential 16 Large apartment building - more than 10 apartments
Vacation 21 Single family house
Vacation 22 Apartment or townhouse
Vacation 23 Duplex house
Vacation 24 Small apartment building - less than 5 apartments
Vacation 25 Medium apartment building - 5 to 9 apartments
Vacation 26 Large apartment building - more than 10 apartments
Commercial 31 Single store
Commercial 32 2 to 4 stores
Commercial 33 More than 4 stores
Commercial 34 Warehouse
Commercial 35 Factory
Commercial 36 Office Space
Commercial 37 Land
Commercial 38 Self-Rental
Commercial 40 Other commercial