Error Resolution tax examiners resolve field errors, validity errors, section errors, math errors, consistency errors on Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons, and Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B), using paper error registers.

Employees use the paper register (error register) and the return to correct these conditions and when necessary use Integrated Data Retrieval System (IDRS) to research.

Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury Regulations:

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

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

The BMF Code and Edit and Error Resolution System Section manager makes sure the IRM is timely submitted to Publishing each year.

The Campus Director monitors operational performance for the SP campus.

The Operations Manager monitors operational performance for their operation.

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

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

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

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

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

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

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

The table lists Interpretation Words and their definitions.

See Exhibit 3.12.16-5, Acronyms and Abbreviations, for a list of commonly used acronyms and abbreviations.

The following table lists related resources.

The text is organized to find corrective procedures quickly and have all necessary procedures in one place. The text is organized as follows:

This text gives sufficient information to correct most error conditions. It may be necessary to refer at times to the instructions in IRM 3.11.16, Corporate Income Tax Returns. If there is a discrepancy between the instructions in IRM 3.11.16 and those in IRM 3.12.16, contact your Headquarters Analyst and continue to follow the instructions in IRM 3.12.16. If there is a conflict between IRM 3.12.16 and another IRM or Job Aid, IRM 3.12.16 takes precedence until the conflict is resolved.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

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

TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day.

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

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

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

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

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

Computer Condition Code "E" may be edited on Form 1120-FSC, Form 1120-ND, and Form 1120-SF (any year) by the BMF ID Theft Liaison to identify a potential identity theft filing. See IRM 3.12.16.3.3.1, Computer Condition Code E, for more information.

Businesses use frivolous arguments to express dissatisfaction with the substance, form or administration of the tax laws by trying to avoid or reduce tax liabilities illegally. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.12.16-6, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

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

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

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

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

When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

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

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

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

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

Select the fax paragraph on the Form 3696, Correspondence Action Sheet, or other approved Correspondence Action Sheet to inform the taxpayer of the fax options.

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

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

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

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

Follow the instructions below for processing CII returns.

Document Perfection identifies refunds and initiates requests for manual refunds.

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

Taxpayer Advocate Service (TAS) Manual Refunds - Any return hand walked by a W&I SP liaison for Taxpayer Advocate Service (TAS) as a manual refund should be processed by a lead tax examiner or designated tax examiner using the following procedures:

Correspondence - If the return requires correspondence for missing or incomplete information, then do the following:

Other Suspense Action - If the return requires other suspense action, then do the following:

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

When Balance Due/Overpayment Math Error generates do the following:

If Balance Due/Overpayment Math Error loops because the taxpayer made a math error when computing their refund, then do the following:

Once return processing is complete, give the return, copy of the error register and Form 12412, Operations Assistance Request (OAR), to the WI SP liaison.

Rejects Suspense - Manual refunds that are hand walked by a WI SP liaison that have been suspended should be processed as follows:

Some SP Campuses have developed local use "Desk Procedures" . Such procedures are only to be used:

A signed approval must be on file from the responsible manager on all SP Campus Desk Procedures.

Managers must periodically review all existing local information and procedural issuances.

There are some BMF ERS Job Aids available at Servicewide Electronic Research Program (SERP): http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids.html

Immediately notify the Headquarters Tax Analyst of any processing problems that cause a work stoppage.

If the taxpayer writes a question or request for help on the return itself, make a photocopy of the question/request and the taxpayer's Employer Identification Number (EIN), name and address. Route this information to the correct function.

An "in-care-of" name can be identified by the words "in-care-of" or the symbols "c/o" or "%" (percent). Correct "in-care-of" names by researching Integrated Data Retrieval System (IDRS) using Command Code (CC) INOLES.

Make sure the "in-care-of" name is above the street address.

CC MFREQ Instructions
Enter: MFREQC00-1234567
00 000000 XXXX

Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

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

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

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

If a suspicious return is found, and there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, then, do the following:

If the return fits other criteria (for example, Frivolous Argument), take proper action.

The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has many programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

IAT gives tools to IRS employees that simplify research, reduce keystrokes and increase the accuracy of regular work processes. When used with IRS systems, it eliminates repetitive typing and helps in making precise decisions. IAT tools improve efficiency, productivity and quality by performing some functions automatically. Through more complex programming, they are designed to reduce fallout to other areas.

Managers will ensure employees understand the use of IAT and will verify that employees have access to all the tools needed for their duties. They will ensure that all employees receive training on the use of IAT.

See the IAT website at https://organization.ds.irsnet.gov/sites/WiMttIat/home/default.aspx for a complete list of available tools and User Guides. A few of the tools available are:

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

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

The Business Master File (BMF) campus cycles are:

BMF transaction posting time frames are:

Transaction posting dates show a format of YYYYCCDD. YYYY is the year. CC is the posting cycle. Individual Master File (IMF) transactions values for DD are:

Below are letters by Headquarters for Submission Processing Campus use in corresponding for items in this IRM. It is expected that tax examiners or their supervisors (or delegates) will have access to and be familiar with the Submission Processing Campus Correspondex for selection of correct letters.

When corresponding, edit an action trail "118C Sent" (or similar language) in the lower left corner going vertically up the side of the return.

For any return received within the specified accounting period which cannot be processed by the Program Completion Date (PCD) as established in IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates, a Transaction Code (TC) 599 with Closing Code (cc) 018 must be input on Integrated Data Retrieval System (IDRS) using Command Code FRM49. See IRM 3.30.123.2.4, Acceptable Inventory and Aged Criteria for Submission Processing Databases, for more information. This includes block deletes, nullified unpostables and rejects suspense/correction. Input of TC 599 with cc 018 does not need to be completed until three weeks before delinquency checks. However, checks can begin as soon as three weeks after the return's PCD.

Paper registers must have the fact of filing (TC 599) input manually to prevent erroneous notices. Automatic generation of a TC 599 is done only by the Error Resolution System (ERS).

Whenever a return or payment must be withdrawn from the workflow, immediate consideration must be given to the possibility that erroneous balance due or return delinquency notices may be issued. This includes block deletes, nullified unpostables, and rejects suspense/correction.

If notices would be sent erroneously, Integrated Data Retrieval System (IDRS) action must be input to the correct account by the first person identifying any of the following conditions:

A Transaction Code (TC) 599 is not necessary when:

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

Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner (or use Form 12648, Error Correction 90 TPNC). See IRM 3.12.16.3.4.1, Taxpayer Notice Codes (TPNCs), and IRM 3.12.16.4.17, Field 01-M, Taxpayer Notice Code (TPNC), for more information.

If corresponding with a non-suspense letter, "X" and write the corrected money amounts to the left of each original point(s) of error. Write money amounts in dollars only or dollars and cents, as applicable. Arrowing is allowed for money amounts when there are no intervening entries between the arrow and the line to which the money is to be entered.

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

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

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

If one of the following returns are mailed between August 28, 2020, and October 31, 2023, accept a digital signature.

There are several types of errors which cause a record to print on the error register.

Field errors are shown on the error register by an asterisk printed to the left of the Alpha Field Designator (AFD) in error. This occurs when a field does not have required data or when the contents of the field does not meet the requirements for that field (failed a validity check). See Figure 3.12.16-1, Field Error.

Figure 3.12.16-1

This is an example of an error register displaying Section 01 with a Field Error. The error is shown on the error register with an asterisk preceding the field in error. In this example, the field in error is D. There is an arrow pointing to D. Section 01 fields displayed:FIELD ERROR01 ABHEROC001593248*D + - With an arrow pointed at the asteriskE20240415+F +

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Missing section errors are identified by a (*) single asterisk printed to the left of the section number. A missing section error occurs when a section is missing that the computer identifies as necessary for the correct processing of the return. See Figure 3.12.16-2, Section Error.

Figure 3.12.16-2

This is an example of an error register displaying Section 03 with a Section Error. The error is shown on the error register with a single asterisk preceding the section number in error. In this example, the section in error is 03. There is an arrow pointing to * before 03.Section 01 fields displayed:01 ABJACAC002165384D202312E20240415+F +Section 03 fields displayed:There is an arrow pointing to * before 03.A +B +C +D + E +

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Extraneous errors are a type of section error identified by a single pound sign (#) printed to the left of the section number. An extraneous section is one the computer identifies as not necessary for the complete processing of the return (unnecessary or invalid section). To correct an extraneous section error, do the following:

Terminus section errors are a type of section error identified by two asterisks (**) printed to the left of the section number. A terminus section is a section that does not fit the prescribed requirements for the given section. See Figure 3.12.16-3, Terminus Error. Several things cause Terminus section errors:

Figure 3.12.16-3

This is an example of an error register displaying Section 01, Section 02 and Section 04, with a Terminus Error in Section 04. The error is shown on the error register with two asterisks preceding the section number in error. In this example, the section in error is 04. There is an arrow pointing to ** before 04.Section 01 fields displayed:01 ABCARDC009876521D202312+E20240415+F +Section 02 fields displayed:02 C4341 17 AVE +DBIRMINGHAM +Section 04 fields displayed:Section 04 shows two asterisks preceding the section number indicating a terminus error.There is an arrow pointing to ** before 04.A +B +C +D + E +

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To correct a terminus section error, do the following:

Integrated Submission and Remittance Processing (ISRP) section errors are a type of section error identified by a pound sign (#) and an error number printed to the left of the section number. An ISRP section error occurs after ISRP enters the data on the return into the system, the computer performs an automatic check, called a System Edit Run. If an error is detected, the computer prints a pound sign (#) and an error number to the left of the section number, identifying the type of error detected. An explanation of each error number follows.

Figure 3.12.16-4

This is an example of an error register displaying Section 01 with an ISRP Error. The ISRP Error Indicator is printed to the left of section number in error. Section 01 fields displayed:ISRP Indicator Error #4 is printed to the left of Section 01.01 ABWHIPC006598314D202312+E20240228+F

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All fields of an ISRP section error must be examined when this condition exists. For example, if Section 01 of a return is coded, then examine the tax data base section for error to ensure the return data is for the taxpayer whose name control is in Section 01.

Even though one or more sections of a record are coded, the validity and consistency checks necessary for the record are made for all sections.

Corrective action for fields in error must be taken as instructed in the applicable chapter of IRM 3.12.16.

Math Errors are shown by the presence of an underprint amount on the error register under the transcribed amount. A math error occurs when the taxpayer gives incorrect information or there is an editing or transcription causing a computed field to be out of balance. See Figure 3.12.16-5, Math Error.

Figure 3.12.16-5

This is an example of an error register displaying Section 07 with a Math Error. The Math Error is shown by the presence of an underprint. There is an arrow pointing to the underprint amount.Section 01 shows Fields B (Name Control), C (EIN), D (Tax Period) and E (Received Date). Section 01 fields displayed:01 ABPANTC002587417D202312+E20240415+F +Section 07 shows Fields A (Total Tax), H (Estimated Tax Penalty), I (Balance Due/Overpayment) and an underprint amount under Field I. There is an arrow pointing to the underprint amount. Section 07 fields displayed:07 A 60500+B +C +D+E +F +G +H 2300+I 52800+ I Underprint - 62800+

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Consistency errors (Relationship errors) involve more than one field on the error register. The error can happen if the input information does not match or is inconsistent with other fields on the error register. An asterisk prints before the involved fields and should be worked together with all involved fields.

Action Codes are entered on the error register to alert the computer to the type of correction being tried. The table below lists the Action Codes and describes when each Action Code can be used.

When a Computer Condition Code (CCC) is not present, and is required, it must be entered in the dotted part of the income section, Page 1 (Lines 1-11).

A maximum of ten codes can be entered, as required.

A math error will occur when the taxpayer gives incorrect information (or there is a coding error or transcription error) in any of the following fields:

Take the following action during the preliminary review process:

Prepare Letter 3833C, Tax Return Adjustment Explained (BMF), (or other correct letter) to notify the taxpayer of errors or adjustments to the return when a TPNC will not be sent.

Prepare Letter 3833C (or other correct letter) when:

Reject an error record with Action Code 3 when it is international related and one of the following conditions is present:

Reject an error record with Action Code 3 when one of the following situations are present:

When a record is rejected, it will be necessary to prepare one or more of the following:

Input Transaction Code (TC) 599 with Closing Code (cc) 017 on IDRS using Command Code FRM49 to prevent delinquency notice from generating. Input TC 599 with cc 018 on IDRS using Command Code FRM49 if the form is being processed after the program completion date (PCD) and TC 599 with cc 017 has not already been input. See IRM 3.12.16.2.19, Suppression of Erroneous Balance Due and Return Delinquency Notices - Reject/Suspense Correction, for more information.

Figure 3.12.16-6

This is an example of the Form 4227, Intra-SC Reject or Routing Slip. Name-Unit field: 0049856759Date field: 05/14/24Route to field: Reject Correction box checkedOther (explain) box checked with Multiple Tax Periods entered in the box

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In a mixed section with both single and double alpha fields, the single alphas must have a space between the AFD and the money amount.

Due to the Form 1120, U.S. Corporation Income Tax Return, redesign, the Form 3892, Corporation Edit Sheet, will no longer be used in Code and Edit. The applicable fields will be edited in the margin to the left of Deductions section of the return.

Section 01 must always be present.

It cannot be deleted or added. Action Codes 4 and 5 will never be used.

The error indicators that apply are the asterisk, underprint, ISRP Errors, and Terminus Errors.

Fields 01-A (Remittance), 01-B (Name Control), and 01-C (EIN) are fixed fields and all positions must be accounted for. The remaining fields are variable in length.

The record can be accepted (Action Code 0), rejected (Action Code 3) or changed (Action Code 6). See IRM 3.12.16.3.2, Action Codes, for more information.

Only Section 01 will print on a "G" coded return.

Form 1120-FSC, Form 1120-ND and Form 1120-SF require manual computations except "G" coded returns. See IRM 3.12.16.18, Manual Computations, for procedures.

The table below shows Section 01: Alpha Field Designator (AFD), Field Title, Field Length and Location on the Return.

Field 01-A (Remittance) can never be changed with Action Code 6. If the remittance was transcribed incorrectly take the following action:

This field will be blank for non-remittance returns, overpaid returns and remittance returns processed through Integrated Submission and Remittance Processing (ISRP).

Field 01-A (Remittance) will asterisk if present on a non-"G" coded return when Total Tax Computed is zero or blank, or if Total Tax Taxpayer is zero or blank. Take the following action:

On the "loop" , Field 01-A (Remittance) will not asterisk on Form 1120-FSC, Form 1120-ND and Form 1120-SF.

This is a four position field and is used for either the check digits (two letter code preprinted on the label which is assigned to the taxpayer) or the name control (the first four significant characters of the corporation except when the first word is "the" and is followed by more than one word). For information on determining the Name Control, refer to Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area.

This field must have one to four characters. The valid characters are:

The name control field may have one to three blanks.

Take the following action:

All returns and documents input through ISRP must have the name control and tax period validated on the EIF (Entity Index File).

Field 01-B (Name Control) or Field 01-D (Tax Period) will underprint if the transcribed field and the EIF name control or tax period don't match.

Compare the entries in Field 01-B (Name Control) and Field 01-C (EIN) with the return, to determine the corrective action.

From the research, determine the correct EIN and name control for the return on the error register. Take the following action:

Figure 3.12.16-7

This is an Entity Control Routing example using a current year Form 1120-FSC (entity part only), the error register and the Form 4227, Intra-SC Reject or Routing Slip.The Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, fields are shown below:For calendar year 2023 or other tax year beginning Jan. 01 2023, and ending Dec. 31, 2023Name: Oak Ash CorporationEmployer identification number: 00-520569Number, street, and room or suite no.: 35 Chestnut StCity or town, state, and ZIP code: San Francisco, CA 94101-0035The Form 1120-FSC error register fields for Section 01 are shown below:Error Register: Section 01 shows Fields A (Remittance) B (Name Control), C (EIN) with an asterisk to the left of C, D (Tax Period) and E (Received Date)3 is edited to the left of Section 0101 ABOAKAWILL is underprinting under the Name Control OAKA*C00520569.D202312+E20240415+F +The Form 4227, Intra-SC Reject or Routing Slip, fields are shown below:Form 4227: Name-Unit field: 0049857802Form 4227: Date field: 05/16/24Form 4227: Route to field: Entity Control box checkedOther (explain) box checked with No Record entered in the box

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The EIN is in the box shown on the return or on the preprinted label.

This field must:

Correct all misplaced entries, coding errors and transcription errors.

If the Employer Identification Number (EIN) is changed from the one the taxpayer used, send Letter 3875C, Missing or Incorrect EIN on Return - BMF/EPMF, or Letter 3463C, Missing Information Request to Process Business Returns, as a non-suspense letter to the address on the return. Continue processing the return.

Suspense Correction:

Field 01-D (Tax Period) is entered in YYYYMM format.

The following procedures address invalid tax periods for EARLY FILERS.

Figure 3.12.16-8

This is a Tax Period Correction example using a current year Form 1120-FSC (entity part only) and the error register. Form 1120-FSC: To correct the tax period, the tax examiner will circle out the incorrect tax period edited by Code and Edit and edit the correct tax period above the form title (near that area). The tax examiner will reduce the tax period to the month before the current processing month. The Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, fields are shown below:For calendar year 20XX or other tax year beginning 1/1/2024, and ending 9/15/2024Name: Green InsuranceEmployer identification number: 00-2345896Number, street, and room or suite no.: 725 Scarlet Ave.City or town, state, and ZIP code: Omaha NE 68108Box F(1): Final return box is checked with ‘X'Received Date: 04152024The Form 1120-FSC error register fields for Section 01 are shown below:Error Register: To correct Field 01-D (Tax Period), the tax examiner will line through the incorrect tax period and enter 202403 above the incorrect tax period. The tax examiner enters a CCC F above Field 01-F and Action Code 6 to the left of Section 01.Error Register: Section 01 shows Fields A (Remittance), B (Name Control), C (EIN), D (Tax Period) with an asterisk to the left of D, E (Received Date) and F (Computer Condition Code).6 is edited to the left of Section 0101 ABGREEC002345896D202409+ with a line drawn through 202409 and edited above is 202403Field D underprinted: 12+E20240415+F - Edited above Field 01-F is F for Computer Condition Code

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Any return with a received date that is two years and nine months or more after the Return Due Date is a potential statute control return.

A statute control document is filed for a barred period. A barred period is a taxable period on which statutory limitations are placed for allowing refunds, credits, or for assessing additional taxes.

A claim for refund must be filed not later than three years from the date the original return was filed or two years from the date the tax was paid, whichever period ends the later. An additional tax assessment must be made within three years from the date the original return was filed.

Process non-"G" coded returns as follows:

Process "G" coded returns as follows:

On both non-"G" and "G" coded returns both Field 01-D (Tax Period) and Field 01-F (CCC) will asterisk if the processing date is less than two years after the Return Due Date and a CCC "W" is present.

Statute control returns must be routed to the Statute Control Group daily, or more often, if needed.

If there is an indication that the return has already been cleared through the Statute Control Group within the last 90 days, then enter CCC "W" . Code and Edit will enter CCC "W" if the return has been cleared by Statute Control.

If no indication, reject the record, attach Form 4227 or other proper routing slip to return and route to Statute Control Group.

If it appears that a rejected document will not reach the Statute Control Group in time for clearance, then photocopy Page 1 of the return, stamp the photocopy "Photocopy-Do not process" and forward it to the Statute Control Group.

Compare the EIN on the return with Field 01-C (EIN) and apply the following corrective procedures when the tax period underprints. See Exhibit 3.12.16-14, Tax Period Underprint Flowchart, and Exhibit 3.12.16-15, Tax Period Underprint Flowchart for "Reply" and "No Reply" , for more information.

If the tax period on the return is for a short period, "Final" , "Change in Accounting Period" , or "Initial" proceed as follows:

If the return covers a full 12 months and the Fiscal Year Month (FYM) in Field 01-D (Tax Period) does not agree with the underprint, research using IDRS.

Initiate correspondence with the taxpayer, requesting a clarification of the accounting period, if the posted TC 150 are for several tax periods (no pattern), or posted TC 150 are all for the same FYM but disagree with the tax period of the return. Telephone contact may be used.

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

The received date must be printed in YYYYMMDD format, and it must be all numeric. If no received date is stamped on the return, Code and Edit may edit it in the dotted part of the Deductions Section.

Input the correct received date if Field 01-E (Received Date) asterisks.

It must be equal to or earlier than the processing date. The year-month combination must be equal to or later than the tax period year-month. Otherwise, Field 01-E (Received Date) will asterisk.

If the received date is earlier than the tax period:

Correct all misplaced entries, coding errors and transcription errors. Compare the date with the date stamped or edited on the face of the return and take the following action:

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

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

See IRM 3.12.16.3.3, Computer Condition Codes, for a list of valid Computer Condition Codes (CCCs) and their descriptions.

Field 01-F (CCC) can have up to 10 positions.

The table below identifies the forms and valid codes on the raw register.

CCC "L" is valid on Form 1120-FSC. It must be entered when a taxpayer writes "Section 6114 Election" , "IRC 6114 Election" (or similar language) on the return or attaches Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), to the return.

CCC "O" is entered if a quick refund has been issued or if a manual refund has been issued. Also, a Reserve Code "1" must be entered when a manual refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ has been issued.

CCC "W" - Field 01-F (CCC) will asterisk if CCC "W" is present and the processing date is less than two years after the return due date. Field 01-D (Tax Period) will also asterisk. See IRM 3.12.16.4.6, Field 01-D, Tax Period Ending, for corrective procedures.

CCC "Y" is used to update the tax period on the Master File.

If CCC "Y" is present without Action Code 0 or Action Code 1, Field 01-F (CCC) will continue to asterisk. See IRM 3.12.16.18, Manual Computations, for corrective action.

CCC "3" will be entered for no reply cases and used as an indicator for Master File to suppress credit interest.

CCC "8" - Enter CCC "8" to suppress penalties of estimated tax for Form 1120-FSC, Form 1120-ND and Form 1120-SF.

Take the following action to correct Field 01-F (CCC):

Field 01-G (CRD) is entered in YYYYMMDD format and has eight positions.

Field 01-G (CRD) cannot be later than or the same as the current processing date or earlier than Field 01-E (Received Date). See IRM 3.12.16.4.9, Field 01-E, Received Date, for more information.

Correct all misplaced entries, coding errors and transcription errors.

The Preparer Checkbox is next to the taxpayer signature area. The Preparer Checkbox is used to show whether or not the taxpayer has elected to allow the Preparer to answer questions about the taxpayer's return as it is processed.

The Preparer Indicator is on Page 1, lower right margin, next to the Discuss with Preparer Checkbox, Form 1120-FSC, Form 1120-ND and Form 1120-SF.

ISRP operators will enter a "1" if the Preparer Checkbox, "Yes" box is checked.

Correction Procedures:

The Preparer Phone Number is at the bottom of Page 1 below the Firm's Employer Identification Number (EIN).

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

Invalid Condition - This field is invalid if other than alpha, numeric and blank.

Correction Procedures:

The Preparer Tax Identification Number (PTIN) is at the bottom of Page 1. Data may or may not be present in Field 01-J (PTIN).

Valid Condition - Field 01-J (PTIN) can be blank or numeric. If numeric, it cannot be all zeros and it cannot be all nines.

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

Correction Procedures:

The Firm‘s EIN is at the bottom of Page 1 below the PTIN box.

Valid Condition - Field 01-K (Firm's EIN) can be blank or numeric. If numeric, it cannot be all zeros or all nines.

Invalid Condition - Field 01-K (Firm's EIN) is invalid if any of the following conditions are present:

Correction Procedures:

The Entity Underprint Code will force the computer to bypass the underprint and accept the transcribed entry for Field 01-B (Name Control) and Field 01-D (Tax Period).

The underprint in Field 01-B (Name Control), and Field 01-D (Tax Period), will not clear until either an Entity Underprint Code is entered in Field 01-L or the field is corrected to agree with the underprint.

When CCC "F" is entered to correct a tax period underprint, the Entity Underprint Code is not necessary to clear the tax period underprint.

The computer will not recheck the Entity Index File after initial input. Enter code as follows:

The valid Taxpayer Notice Codes for Form 1120-FSC, Form 1120-ND and Form 1120-SF are 05, 10, 41, 88, 89 and 90. See IRM 3.12.16.3.4.1, Taxpayer Notice Codes (TPNCs), for the TPNC and the explanation.

In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals/language were programmed into the OnLine Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying and typing incorrect paragraphs and messages in the notices. For a full listing of the programmed TPNC 90 Math Error Codes, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-math-error-code.doc .

Notice Review can copy and paste non-programmed TPNC 90 literals in the notice. For an updated listing of the non-programmed TPNC 90 literals, see TPNC 90 Literals - Copy and Paste Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/job-aids/tpnc-90-literals.txt.

TPNC 90 is an error explanation "fill-in" that is used if the standard TPNCs do not adequately describe an error condition or correction(s) made or when more than three or more notice codes are necessary. Ten blank lines (70 characters per line) are available to give pertinent information to the taxpayer.

Write the TPNC 90 on the front of the return in the upper left corner or use Form 12648, Error Correction 90 TPNC.

When sending a TPNC 90, do the following:

If there is not an applicable TPNC 90, then do the following:

Re-enter TPNC 90 with Action Code 1, if it was transcribed incorrectly.

Make sure that the return needing a TPNC 90 leaves Error Resolution System (ERS) with the correct TPNC 90 language for the applicable form. For questions, please contact your Lead or Manager.

If Field 01-M (TPNC) is invalid (*), do not change Field 01-M. This will happen if Field 07-Z (Manually Corrected Total Tax) was not entered previously. Never change Field 01-M.

When necessary to send a TPNC, the correct tax must be entered in Field 07-Z (Manually Corrected Total Tax) first, then allow it to "loop" to send the TPNC. On "loop" , the amount in Field 07-Z (Manually Corrected Total Tax) will underprint Field 07-A (Total Tax) for the notice.

The Tax Period Beginning (Field 01-N) displays in YYYYMMDD format and must have eight numerics

The Tax Period Beginning is edited on Page 1, above or to the left of the form title area (close to that area), if Computer Condition Code (CCC) "F" or CCC "Y" is present. If the Tax Period Beginning is not present (not a short period or final return), programming will generate the Tax Period Beginning to be the first day of the 11th month preceding the tax period ending month. For example: Tax period ending month is 202111, so the Tax Period Beginning would be 12/01/2020 (20201201).

Correct all misplaced entries, coding errors and transcription errors.

Invalid Condition - Field 01-N (Tax Period Beginning) is invalid if any of the following conditions are present:

Correction Procedures:

Field 02-A ("In-Care-Of" Name) is in the Entity Section of the return.

Valid Condition - Field 02-A ("In-Care-Of" Name) has 35 positions and the valid characters are numeric, alpha, ampersand, hyphen (-), slash (/) or percent (%).

Invalid Condition - Field 02-A ("In-Care-Of" Name) is invalid if any of the following conditions are present:

Correction Procedures:

Field 02-B (Foreign Address) is in the Entity Address Section of the return.

Valid Condition - Field 02-B (Foreign Address) has 35 characters and the valid characters are alpha, numeric and special characters.

Invalid Condition - Field 02-B (Foreign Address) will generate as an error when the Field 02-E (State Code) has a period/space (. ) and any of the following conditions are present:

Correction Procedures:

This field will asterisk (*) if other than specified above.

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

Field 02-C (Street Address) is in the Entity Section of the return.

Valid Condition - Field 02-C (Street Address) has 35 characters and the valid characters are alpha, numeric, blank, hyphen (-), and slash (/).

Invalid Condition - Field 02-C (Street Address) will error when any of these conditions are present:

Correct all coding errors and transcription errors.

If Field 02-D (City) has a Major City Code (MCC), a street address must be present.

If a Major City Code (MCC) is used and no address is present, enter the city in "city format" , not in MCC format.

Check returns and attachments if the address is not present.

This field will asterisk if other than specified above. Correct this field.

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

Valid characters are alpha and blank (22 positions).

First position cannot be blank.

Second and third positions cannot both be blank.

There cannot be two consecutive blanks within significant data.

When a Major City Code (MCC) has been used:

If a valid MCC cannot be used, then the entire City must be input with Action Code 6. When the entire city name is used, Field 02-E (State) must be present.

This field will asterisk if the MCC does not agree with the first three digits of the ZIP Code. Field 02-F (ZIP Code) will also asterisk.

The ZIP Code will require ZIP Code look-up if the Major City has multiple ZIP Codes. Correct Field 02-F (ZIP Code).

See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. See Exhibit 3.12.16-10, U.S. Possessions ZIP Codes, for use with address corrections.

IMPORTANT: If there is a foreign address, the country must be present in this field. Do not abbreviate the name of the country. See Exhibit 3.12.16-7, Foreign Country Codes, for a list of the valid foreign country codes or Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

If present, this field must have a State Code of two alpha characters (two positions).

This field will asterisk for the following conditions:

The State Code does not agree with the first three digits of the ZIP Code. Field 02-F (ZIP Code) will also asterisk:

OSPC will delete Section 02 if a Non-U.S. Possession Foreign Address.

IMPORTANT: Field 02-E must have a period/space (. ) if the address is foreign.

Field 02-F is the entity ZIP information (12 positions).

Correction Procedures:

If a valid ZIP Code is unavailable from the return or attachments, see Exhibit 3.12.16-10, U.S. Possessions ZIP Codes, for a valid ZIP Code. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

All ZIP Codes are standardized at Martinsburg Computing Center (MCC) before the return posts to the Master File. A program called "Finalist" matches the taxpayers Street Address and City Address to the ZIP Code on the return with the latest ZIP Code updates received from the U.S. Postal Service (USPS).

If the ZIP Code is incomplete (partial) on the return, but it has a Street and City address, no research is necessary, take the following action:

If the ZIP Code is incomplete on the return and the Street or City address is incomplete or missing, then research is needed for the complete address.

If only the first three digits of the ZIP Code can be determined, enter "01" for the fourth and fifth digits.

If the first three digits of the ZIP Code cannot be determined, see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

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

IMPORTANT: Field 02-F must be blank if the address is foreign.

The table below shows Section 03: Alpha Field Designator (AFD), Field Title, Field Length and Location on the Return.

This field is Reserved.

The six-digit Principal Business Activity (PBA) (which is based on the North American Industry Classification System (NAICS)) is computer-generated for Form 1120-ND (525920) and Form 1120-SF (999000).

The NAICS Code (Field 03-B) is entered on Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, Page 1, left corner, near Form 1120-FSC.

Field 03-B (NAICS Code) will asterisk if blank, all zeroes or if Field 03-B (NAICS Code) does not have six numeric digits within the range 000001 through 999999 on Form 1120-FSC only, on other than an Amended (CCC "G" ) return. See Figure 3.12.16-9, Blank Field 03-B (NAICS Code).

Figure 3.12.16-9

This is a Blank Field 03-B (NAICS Code) example using a current year Form 1120-FSC (Entity part and top part of Page 1 only) and the error register. The Identification number on Form 1120-FSC, Page 2, Schedule A, Additional information, Line 1a is the NAICS (North American Industry Classification System) Code and is required. This field is blank, so the tax examiner edited 323100 to the left of the preprinted Form 1120-FSC to identify the classification. The Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, fields are shown below:323100 (NAICS) is edited/entered in upper left corner near the preprinted Form 1120-FSC. There is an arrow pointing to 323100Name: Magnolia CompanyEmployer identification number: 00-0131235Number, street, and room or suite no.: 3131 E Maple Ave.City or town, state, and ZIP code: Little Rock, AR 72201Error Register: Section 03 shows Fields A through V. Fields are blank, except Field B (NAICS Code) is in error and has an asterisk to the left of B. To correct Field 03-B (NAICS Code), the tax examiner entered 323100 above Field 03-B (NAICS Code) to be corrected and Action Code 6 is entered to the left of the Section 03 to be changed. 6 is edited to the left of Section 03*B 323100 + C + D + E + F + G + H + I + J + K + L + MN + O + P + Q + R + S + T + V +

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Only one NAICS Code can be used on the return. Enter the NAICS Code as follows:

Field 03-B (NAICS Code) must always be present on Form 1120-FSC.

Code and Edit will no longer edit the Missing Schedule Code (MSC) in the left margin near Line 5 (Form 1120-ND) and near Line 2 (Form 1120-FSC). Code and Edit will correspond for the missing form and/or schedule if the entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Check for coding errors, transcription errors, and correct Field 03-C (Missing Schedule Code) correctly.

If the required form(s) and schedule(s) are not present and there is no indication Code and Edit corresponded for the missing form(s) and schedule(s):

If no reply to our correspondence:

Penalty and Interest Code is edited in the left margin near Deductions (Form 1120-ND, near Line 5; Form 1120-SF, near Line 9) when the return shows an amount for Penalty and Interest, and the return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the original due date. Code and Edit will edit "4 - 1" .

CCC "R" must be present in Field 01-F (CCC), if interest only is shown.

Field 03-D must be blank or "1" .

Check the return for all coding errors and transcription errors.

Reserve Code is edited in the left margin near Deductions (Form 1120-ND, near Line 5; Form 1120-SF, near Line 9). Code and Edit will edit "5 -" followed by the correct Reserve Code.

Code and Edit may enter a "9" to force the record to the error register and will attach an explanation to the return.

If Field 03-E is asterisked, correct the field.

Enter Reserve Code "1" when ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ refund has been issued. The "1" is valid on correction only.

Enter Reserve Code "4" if Form 2220, Underpayment of Estimated Tax by Corporations, is attached and the taxpayer has checked the box on Form 2220, Part II, Line 8, "Large Corporation" .

Priority of Reserve Codes are as follows:

Field 03-F (Tax Preference Code) applies only to Form 1120-FSC and is valid for tax periods ending November 30, 2018, (201811) and prior.

For tax periods ending December 31, 2018, (201812) and later, Field 03-F (Tax Preference Code) must be blank. If a "1" is present in Field 03-F (Tax Preference Code), remove it.

For tax periods ending November 30, 2018, (201811) and prior, the valid entries are blank and "1" .

Field 03-H (Audit Code) is edited in the left margin near Deductions (Form 1120-ND, near Line 5; Form 1120-SF, near Line 9). Code and Edit will edit "2 -" followed by the correct Audit Code(s).

This field may be blank or have digits 1 through 6. Only three codes can be entered. The following table lists the valid Audit Codes:

The Audit Codes and conditions are in the following table:

If Field 03-H (Audit Code) is asterisked, check for coding errors and transcription errors. Correct Field 03-H (Audit Code).

Field 03-I (Installment Sale Indicator) is edited in the left margin near Line 2 (Payments) of Form 1120-FSC. Code and Edit will edit "6 -" followed by the correct Installment Sale Indicator.

This field must be 1, 2, 3 or blank. The codes are based on the response to Question "3" on Form 6252, Installment Sale Income.

Valid codes for Installment Sale Indicator are:

The following table gives instructions for resolving Field 03-I (Installment Sale Indicator).

Field 03-K (Principal Shareholder Name) is transcribed from Form 1120-FSC, Page 1, Line 1a. The field must have one to four characters. The valid characters are:

The name field must have one to four characters and may have from one to three blanks.

Take the following action:

Field 03-L (Principal Shareholder EIN) is transcribed from Form 1120-FSC, Page 1, Line 1b.

Field 03-L (Principal Shareholder EIN) must have an EIN.

If Field 03-L (Principal Shareholder EIN) is an EIN, it cannot begin with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79 or 89.

Take the following action to correct the field:

Field 03-M (Subsidiary Filer Code) is edited and transcribed from Form 1120-FSC, Page 1, Line 2 box checked.

Field 03-M (Subsidiary Filer Code) is a transcribed field which must have a blank or 1 through 3.

If this field asterisks, check for coding errors and transcription errors.

Field 03-M (Subsidiary Filer Code) will asterisk if the Parent Name Control or Parent EIN is not present on the return, when code "1" or "3" is entered in this field. A correct entry in Field 03-N (Parent Name Control) and Field 03-O (Parent EIN) will eliminate the asterisk.

Field 03-N (Parent Name Control) is transcribed from Form 1120-FSC, Page 1, Line 2a.

Field 03-N (Parent Name Control) must have one to four characters. The valid characters are:

The name field must have one to four characters and may have from one to three blanks.

If name control is invalid or blank, check for coding errors and transcription errors and correct.

Field 03-N (Parent Name Control) will asterisk if Field 03-M (Subsidiary Filer Code) is coded "1" or "3" and Field 03-N (Parent Name Control) is blank. Take the following action:

Field 03-O (Parent EIN) is transcribed from Form 1120-FSC, Page 1, Line 2b.

Take the following action for Form 1120-FSC only:

The table below lists pertinent information for Field 03-O (Parent EIN).

Field 03-O (Parent EIN) will asterisk if the EIN is the same as the EIN for the return. They cannot be the same.

Examine the return and attachments for a valid EIN, if this field is invalid. Take the following action:

Field 03-P (Type of Election Code) is transcribed and edited from Form 1120-FSC, Page 1, Box B.

Valid codes are 1, 2 or blank.

Field 03-P (Type of Election Code) will asterisk if present on any return other than Form 1120-FSC. Delete this field if present on any other form.

This field is Reserved.

This will prevent the error register from being renumbered/reformatted and will eliminate new programming.

The Foreign Country Code is a code transcribed from Form 1120-FSC, Page 1, left of Line 1a.

This field must be blank or a two-character alpha. See Exhibit 3.12.16-7, Foreign Country Codes, for a list of valid foreign county codes or Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

Field 03-W (Parent Total Assets) must be present if Field 03-N (Parent Name Control) was edited and transcribed.

Delete this field when an asterisk is present on Form 1120-SF.

Enter the amount from Page 1, Line 1d into Field 03-W (Parent Total Assets), when the amount on Page 1, Line 1d is greater than the amount present on Page 1, Line 2d.

Copy any significant amount on Page 1, Line 1d to Page 1, Line 2d, when the amount on Page 1, Line 2d is blank and the Common Parent's Name and EIN are blank.

Field 03-X (Type of Liabilities) is a five-digit field transcribed from Page 2, Additional Information, Line 5a on Form 1120-SF only.

The field must be 1 through 5 or blank. All five codes do not have to be present.

A blank cannot be in the first position, if a valid code is present.

The valid codes for Field 03-X (Type of Liabilities) are:

This field is Reserved.

This will prevent the error register from being renumbered/reformatted and will eliminate new programming.

The table below shows Section 04: Alpha Field Designator (AFD), Field Title, Field Length, Dollars and Cents ($ / ¢), and the Location on the Return.

Field 04-A (Total Assets - End) is transcribed from the following forms.

Code and Edit will edit the amount in dollars.

The field must be all numeric or blank.

Field 04-A (Total Assets - End) will asterisk when Fields 04-F through 04-J are present on Form 1120-SF.

Delete the invalid fields for Form 1120-ND or Form 1120-SF.

Check for misblocking, if the return is not a Form 1120-ND or Form 1120-SF.

Fields 04-B through 04-E are valid on Form 1120-SF.

The table below shows Field, Name and Location on the Form 1120-SF.

These fields must be all numeric or blank.

Field 04-C (Modified Gross Income) may be positive or negative.

The table below shows Form and Location on the Return for Field 04-F (Taxable Income).

This field must be all numeric or blank.

Field 04-F (Taxable Income) may be positive or negative.

The table below shows Field, Name and Location on the Form 1120-FSC.

Fields 04-H (Depreciation (Administrative Pricing Rules)) and 04-I (Depreciation (Non-Administrative Pricing Rules)) must be edited in dollars and cents.

These fields must be all numeric or blank.

They must be a positive amount only.

The table below shows the Tax Periods and Tax Rates for the Form 1120-SF.

Section 07 has information fields that are variable in length and are money amounts.

If a field is asterisked, check to determine if that field is valid for that return and document code.

The table below shows Section 07: Alpha Field Designator (AFD), Field Title, Field Length, Dollars and Cents ($ / ¢), and the Location on the Return.

Field 07-A (Total Tax) has a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The form(s) and the transcription line(s) are identified in the table below:

Take the following action:

The return is a Form 1120-SF and the total tax does not equal 37% (201812 and later) of the Modified Gross Income (Field 04-C), Field 07-A (Total Tax) will underprint. See IRM 3.12.16.7.6, Tax Rates for Form 1120-SF, for more information. Take the following action:

Take the following action for Form 1120-SF:

Taxpayers who file an approved Form 1128, Application to Adopt, Change, or Retain a Tax Year, must annualize. If the taxpayer does not annualize, enter the correct annualized tax in Field 07-Z (Manually Corrected Total Tax). On "loop" , enter Action Code 1 and TPNC 05 to inform the taxpayer of the error.

Taxpayers annualizing their tax due to a short period "Initial" or "Final" return is not permitted. Assess tax at the regular rate based on their taxable income.

The form(s) and the transcription line(s) are identified in the table below:

Field 07-B (Estimated Tax Credit) is the total of:

Reject to Accounting: If prepaid credits are claimed on Form 1120-FSC (Lines 2a, 2b, 2e), Form 1120-ND (Lines 14a, 14b, 14e), or Form 1120-SF (Lines 16a, 16b, 16e) and the return is one of the following conditions:

Prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip with a notation "Short Period with ES Credits" .

Input TC 599 with Closing Code (cc) 017 on IDRS using Command Code FRM49 as defined below.

The form(s) and the transcription line(s) are identified in the table below:

This field is Reserved.

This will prevent the error register from being renumbered/reformatted and will eliminate new programming.

This field is Reserved.

This will prevent the error register from being renumbered/reformatted and will eliminate new programming.

The form and the transcription line are identified in the table below:

Correct all misplaced entries, coding errors and transcription errors.

OSPC must take the following action to correct Field 07-F:

OSPC must refer any questionable verification of the withholding documents to Examination (Exam).

The FIRPTA credit is on Form 1120-FSC, Page 1, to the right of Line 2g.

Correct all misplaced entries, coding errors and transcription errors.

If FIRPTA credit is claimed on Form 1120-FSC, OSPC must take the following action to correct Field 07-G (FIRPTA):

Follow the instructions in the table below for FIRPTA credit.