The purpose of Error Resolution SCRS is to resolve validity errors, field errors, consistency errors, and math errors in returns and other documents for posting to the Master File. Records fall out on paper register in ERS due to the Generalized Mainline Framework (GMF). The GMF programming causes a record to fall out to ERS/SCRS if it does not meet certain criteria, including but not limited to:

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

Authority for these procedures is found in the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury Regulations.

The Director monitors operational performance for the Submission Processing Campus.

The Operations Manager monitors operational performance for their operation.

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

The Team Employees must follow the instructions contained in the IRM and maintain updated IRM procedures.

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

Program effectiveness is measured by using the following:

Annual Reviews may be performed by the Team Manager and/or Team Lead.

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

An acronym is a word formed from the initial letter or letters of each of the successive parts or major parts of a compound term such as IDRS for Integrated Data Retrieval System.

Acronyms used in this IRM will be identified and explained in each subsection. After the acronym is identified and explained then only the acronym will be used throughout the rest of the subsection. Some acronyms are used universally throughout the IRS and identifying and explaining these in multiple subsections would be unnecessary. Some examples of these universal acronyms are IRM, IRC and IDRS.

The following is a list of acronyms commonly used throughout this IRM:

The following is a list of some of the resources available to assist in performing the work as outlined in this IRM:

This section has instructions for correcting validity check errors detected by the computer and resolving math errors resulting from differences in the taxpayer’s computations and the computer computations.

Report time spent and volume completed under the following program codes for reviewing and correcting records on error registers:

The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Error Resolution System (ERS) processing IRMs.

Ogden, Kansas City, and Paper Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.

A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.

Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

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 Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3705(a), gives identification requirements for all IRS employees working tax related matters.

All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at 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 and should give their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

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

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

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.

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

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

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

Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program (FRP), and Exhibit 3.12.23-4, Potential Frivolous Return Chart, 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:

Chart of Tax Class, Document Codes (Doc Codes), and Master File Tax (MFT) for excise taxes.

Action Codes - A number that is coded to notify the computer what action should be taken.

Alpha Field Designation - The first field of each section is shown as the "A" field, and subsequent fields in that section are assigned alpha letters in sequence.

BMFOL - Command code provides nationwide Business Master File (BMF) On-Line entity and tax data information online for tax accounts that are in credit or debit status, have freeze conditions or open IDRS control bases. It will also display a list of accounts moved to the retention register. Other accounts that are not on the retention register will be available online within 24 hours upon request.

BRTVU - Command code provides Business Return Transaction View information. The file consists of original input return data, including schedules. This return information includes Code and Edit, Error Resolution System (ERS), and computer-generated fields.

Command Code (CC) - A five-character code which identifies the nature of an inquiry or update request for a real time terminal.

Entity Index File (EIF) - A computer file that stores name data for each Employer Identification Number (EIN) on file. A check is made between the EIN and the name entered.

Error Reason Code - A specific code explaining the reason an input document is on the error register. If the document does not have errors, then this field will be blank. A maximum of nine two-digit codes can be present in this field.

Error Register - A listing of documents on which the entered data failed one or more of the consistency, math verification, or validity tests in the computer program. The register consists of sections and fields that are directly or indirectly related to data sections and items input to the computer.

Field - A specific item input from a tax document. Each field may have data or be blank and is prefixed by an alpha character A thru Z.

Field Breakers - Used on the Error Register are @, (+) and (-). When entering field breakers use an asterisk (*) for (@), a comma (,) for (+) and a pound sign (#) for (-). They will convert to the proper sign.

Generalized Mainline Framework (GMF) - The system used to process and control all documents through the Campus pipeline.

INOLE - Command code used to research the On-Line Entity module (name control, filing requirements, employment codes and addresses).

IRPOL - Command code provides two payee addresses if present, filing status, one payer name and address, cross reference information, and summary of up to 36 Information Returns Processing (IRP) money amounts by income type.

ISRP - Integrated Submission and Remittance Processing (ISRP) replaced the previous Distributed Input System (DIS) and Remittance Processing System (RPS) systems. The Excise tax processing system is now referred to as "DIS/ISRP" The ERS function has access to the system via a terminal in their area.

Key Index File (KIF) - A computer file of Taxpayer Identification Numbers (TINs).

NAMEE - Command code used to research for a missing or invalid EIN.

Real time - Instantaneous access to a database which allows you to make changes to the database or just display data.

RTVUE - Command code provides online access to the Individual Return Transaction View file. The file consists of original input return data, including schedules. This return information has Code and Edit, Error Resolution (ERS), and computer-generated fields.

Section - A specific portion of the return input. Each section is prefixed by a two-digit numeric code beginning with 01.

A number code which signifies to the computer what action should be taken on the error record. Only one AC may be entered on the error record to correct any one section. If two are required, it must loop. No other AC can be used with AC 0, 2, 1, 3, or 7. If incorrect data is present, it must be corrected with AC 4, 5, or 6 before AC 1 is used.

Action Code 0 - Used to indicate that the data on the Error Tape record is correct and the computers computation should be disregarded.

Action Code 1 - Used to indicate that the data in a record on the Error Tape has been entered correctly by the key station terminal operator. The taxpayer has an error on their return and the computer's computation of the tax due should be accepted. This code may not be used if an amount field has a transcription error or if a field validity error is present in any field of a section. No other AC may be used in the same correction attempt. All validity errors must be corrected before this action code will clear a record from the Error Register. However, if a dummy correction will clear the record, AC 7 may also be used. A Taxpayer Notice Code (TPNC) must be used with an AC 1.

Action Code 2 - To delete a record from Campus processing. (Rejects Only).

Action Code 3 - Used to reject a record on the Error Tape which is not processable to BMF or is a Non-Automated Data Processing (ADP) Record. Notate action on Form 1332, Block and Selection Record, and remove document from the pack and sign out. This creates a working trail. Use Form 4227, Intra-SC Reject or Routing Slip, and route to the Rejects team.

Action Code 4 - Used to delete a section from a record on the Error Tape. Section 01 of each record can't be deleted. Do not delete with AC 4 any section with an asterisk appearing before the section number.

Action Code 5 - Used to add a section to a record on the Error Tape. Enter the field designation followed by field data and field breaker for all significant fields. If the field is insignificant (does not have data), it is not necessary to enter the field at all, not even the field designation or breaker.

Action Code 6 - Used to change a field or fields (excluding remittance). To correct a field the incorrect field data must be lined out and the corrected data entered above it. Any number of fields may be changed during one correction cycle. When blanking or correcting the name control field, always enter the encircled number of positions prescribed for the field which will not have significant data. In other words, if the prescribed number of characters for the field is "7," and only "3" significant characters will be input, encircle "4" to show the number of blanks; if the entire field will be blank, encircle "7." .

Action Code 7 - No change required. Used to clear a record which has been sent to the register for one time review. May not be used simultaneously with any other AC. If information for a particular section was not input, the section may be generated for review with an asterisk before the section number. Use AC 7 to clear this item if no error exists.

A two-digit numeric code is used when a math error is present involving the tax liability or settlement amounts. This Taxpayer Notice Code (TPNC) is entered on the register to the right of AC 1, preceded by a dash (-).

TPNC 90 is a "fill in" and should be used when no other TPNC fully explains the correction(s) made.

Field 01-L (Form 730) and Field 01-P (Form 11-C) will have data only on a Loop Register and if AC 1 did not resolve the initial error. Correct any other invalid conditions but not this field. The use of AC 1 and the proper TPNC on a subsequent loop will be sufficient.

Make certain that all correction entries are legible.

When Action Code 3 is used, Form 3177, Notice of Action for Entry on Master File, and/or Form 4227, Intra-SC Reject or Routing Slip, must be prepared and attached to the return with a notation of the reason for the action taken. Charge the return out of the block as a Reject "U" with the date. It is not necessary to prepare Form 3177 on any timely filed "first" return when:

If an action code (AC) has been entered on the Error Register after all necessary corrections, no further action is necessary.

If an action code has not been entered on the Error Register after all necessary corrections,≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ code for a taxpayer error.

If an AC has not been entered on the Error Register and the balance due field does not have an underprint, enter AC 7.

An Error Reason Code "AA" is printed on the Loop Error Register when an invalid correction attempt is detected by the computer processes.

Correct the Error Register as if no attempt has been made to correct it before.

A return must have specific items before it is considered processable. Perfect all returns to the extent possible from schedules and other attachments. The specific items needed are:

Conditions that make a document unprocessable include:

During the processing of a return, if a correction can't be made because of illegible or missing data, enter AC 3 and:

Reject Correction will do the following:

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.

Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.

Use the following resources to make sure 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:

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 correspondence instructions below for "CII" returns.

If a penalty other than a delinquency, late payment, failure to deposit (FTD), or failure to pay (e.g., negligence or fraud) is shown on a return, and the notation "3465 Prepared" does not appear on the return, then computation of penalty must be done by Cincinnati Campus Exam/AUR Centralized Excise Operation. Route as follows:

Any returns received within the specified accounting period which can't be processed by the Program Completion Date (PCD) as established in IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates, a TC 599 Closing Code (cc) 18 must be input (see IRM 3.30.123.2.4, Acceptable Inventory and Aged Criteria for Submission Processing Databases). This includes block deletes, nullified unpostable and rejects suspense/correction. Input of TC 599 - 18 does not need to be completed until 3 weeks before delinquency checks. However, checks can begin as soon as three weeks after the return’s PCD.

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 unpostable, and rejects suspense/correction.

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

A TC 599 is not necessary when:

The Internal Revenue Service has the authority under IRC 6020(b) to prepare a substitute for return from personal knowledge or from other information for any person who does not file a return or files a false or fraudulent return. A Form 5604, Section 6020(b) Action Sheet, may be attached to a IRC 6020(b) return.

A substitute for return generated under IRC 6020(b) must have taxpayer identifying information (including taxpayer's name, address, and identifying number), must have sufficient data to compute the taxpayer's liability, and must be signed by the Secretary of the Treasury or their delegate. A IRC 6020(b) return is not necessarily contained in a single document, but may consist of several documents that together satisfy the three requirements.

If the IRS does not have sufficient data to compute the taxpayer's tax liability, the IRS may instead prepare a "dummy return." A "dummy return" has taxpayer identifying information only and is used to open an account for the taxpayer on the Master File. A dummy return does not constitute a valid IRC 6020(b) return unless it is accompanied by other documents that satisfy the three requirements above.

You can identity IRC 6020(b) returns by the presence of the notation "Return prepared under IRC 6020(b)." This notation is usually on or near the signature line. The return must be signed by the preparer (a revenue officer/agent or a Campus Collection/Examination manager) or must be attached to another document that is signed by the preparer.

Process the return:

Any return that has a due date or received date (whichever is later, disregarding extensions of time to file) as much as two years and nine months before the current processing date is a potential statute control document.

All statute control documents must be cleared by the Statute Control Unit.

If any of the conditions listed below are present, do not route to Statute Control for clearance. Instead, edit CCC "W" and continue processing:

See IRM 25.6.1, Statutes of Limitations Processes and Procedures, for further information.

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

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

The Business Master File (BMF) campus cycles are:

BMF transaction posting time frames are:

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

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 3.12.23.2.11, Taxpayer Notice Codes (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, when voiding a return.

The field can't be changed in error resolution.

If the amount is incorrect:

The Rejects Function will prepare Form 3893, Re-Entry Document Control, after corrective action has been taken.

This field must have 1 to 4 characters.

If there are fewer than 4 characters every position must be accounted for by editing the number of blanks and encircling it.

This field has nine positions. It is invalid if:

If the EIN is invalid, take the following action:

If the EIN is changed from the one the taxpayer used by more than 3 digits, issue Letter 3875C as a non-suspense letter to the address on the return. Continue processing the return.

Reject Correction:

The fields for Tax Period are:

Tax period information is under each individual return section.

The fields for CCC are:

Computer Condition Codes (CCC) are edited to the right of the name and address area of the document being examined.

Below are the definitions of each CCC used on excise tax returns. For the invalid conditions.

The fields for Received Date are:

The Received Date Field is invalid if:

If the Received Date Field is invalid, refer to the return and attachments to determine the correct Received Date. Determine the Received Date in the order below:

The fields for P/I Codes are:

This field is invalid if it is:

To correct, refer to the received date and tax period on the return and the chart in IRM 3.12.23.5.6.2, Returns Due Date Chart, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The CRD Field is found in the following fields depending on the return. Code and Edit is no longer required to edit the CRD.

The Correspondence Received Date (CRD) is invalid if:

The field is called the Entity Underprint Code (EUC) field. It will be in section 01 immediately before the TPNC, Taxpayer Notice Code, Field on the error register.

In order to clear a record to good tape:

In all cases where there is an underprint of name control, the record will not go to good tape until the applicable code is in the EUC field, or the name control has been corrected to match the underprint.

Description - Field 02-A is in the Entity Section of both Form 730 and Form 11-C.

Valid Condition - Field 02-A has 35 positions, and the valid characters are alpha, numeric, ampersand, dash or slash.

Invalid Condition - Field 02-A is invalid if:

Correction Procedures:

The determination of a foreign address is based only on the address of the entity. A foreign (international) address is any address that is not in one of the 50 states or the District of Columbia.

An Army Post Office (APO), Diplomatic Post Office (DPO), or Fleet Post Office (FPO) is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, such as "APO New York, NY 091XX" , convert to the new State code based on the ZIP Code as follows: "APO AE 091XX" .

A maximum of 35 characters may be entered in this field. This field is invalid if:

CORRECTION PROCEDURES - Correct any coding and transcription errors.

If Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822/Form 8822-B to the return.

A maximum of 22 characters may be entered in this field. This field is invalid if:

CORRECTION PROCEDURES:

Correct any transcription errors by referring to the city shown on the return.

This field and the state code field are invalid if a Major City Code and a state code are both present in Field C.

This field and the ZIP Code field are invalid if a Major City Code is present, and the ZIP code is not valid for the city.

This field is invalid if the Major City Code is not valid.

This field consists of two alpha characters. This field is invalid if:

The Postal Service established address requirements for APO/DPO/FPO Addresses. If the address appears (e.g., APO New York, NY 091XX) it must be converted to the applicable state code abbreviation based on the ZIP code (e.g., the previous example would be converted to APO AE 091XX). Refer to Exhibit 3.12.23-5, U.S. Possessions State Abbreviations and ZIP Codes.

This is a 12 numeric position field which can have 5, 9, or 12 characters. This field is invalid if:

The Error Register Fields as they appear on the Error Register with their alpha designations, length and whether fixed or variable are shown below. All money fields are dollars and cents.

Field A - Remittance - See IRM 3.12.23.5.1, Field 01-A Remittance Received, for details.

Field B - Name Control - See IRM 3.12.23.5.2, Field 01-B Name Control, for details.

Field C - EIN - See IRM 3.12.23.5.3, Field 01-C Employer Identification Number (EIN), for details.

See IRM 3.12.23.6, Address Section 02 - All Forms, for instructions.

A principal operator or agent will file one of three types of returns. The three types are:

Taxpayers are instructed to check the appropriate box in Part 1, line 3. If no box is checked:

A "First Return" is due before accepting taxable wagers and should always be processed. It can be shown by a mark in the "First Return" box or by a written explanation or notation stating any of the following:

A renewal return is due each year by July 1 and should always be processed.

A Supplemental Registration Return is due and processed differently depending on the type of change that has occurred.

Only certain activities constitute wagers subject to tax. These include:

Other activities are not wagers subject to tax if certain circumstances are met:

The Error Register Fields as they appear on the Register, their alpha designations, length, and whether they are fixed, or variable are shown below: (All money fields are dollars and cents.)

See IRM 3.12.23.6, Address Section 02 - All Forms, for correction procedures.

Always enter a CCC 3 as the Correspondence Received Date when correspondence was sent, and no reply is received.

Possible no reply conditions are below.

Always enter a CCC 3 as the Correspondence Received Date when correspondence was sent and no reply is received.