The purpose of Error Resolution 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 in Error Resolution System (ERS) due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields. The GMF programming causes a record to fall out to ERS if it fails to meet certain criteria, including:

Instructions in specific sections take precedence over general section instructions in case of a conflict.

This Internal Revenue Manual (IRM) is your main source of information for correcting the error record and the related return. Other related IRMs are:

Listed below are Federal Unemployment Tax Return types processed at Kansas City Submission Processing Center (KCSPC) or Ogden Submission Processing Center (OSPC):

The United States Code Title 26 Internal Revenue Code (IRC), Subtitle C-Unemployment Taxes, Chapter 23-Federal Unemployment Tax Act, Sections 3301 through 3311, established the Federal Unemployment Tax and required cooperation between the States, Internal Revenue Service, and the Department of Labor to decide an employer's contribution to the Unemployment System.

The Directors for Kansas City Submission Processing Center (KCSPC) and Ogden Submission Processing Center (OSPC), are responsible for monitoring operational performance for their Submission Processing Center.

The Operations Managers for KCSPC and OSPC are responsible for monitoring operational performance for their operation.

The Department Managers for KCSPC and OSPC are responsible for monitoring Team Units performance within their department.

The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

The team employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

System control reports: The reports are stored on 4 ECC Z/OS Mainframes and are retrieved through Control-D Web Access Server. For general listing of the reports see IRM 3.12.38, Error Resolution, BMF General Instructions.

Program Effectiveness: The effectiveness is measured through Embedded Quality Submission Processing (EQSP) application used for quality review of the returns corrected in ERS. The application capture evaluative and non-evaluative data obtained from monitoring submission processing activities. Reports are generated for planning and training purposes.

Annual Review: is performed by Federal Managers Financial Integrity Act (FMFIA) to ensure accuracy and promote consistent tax administration.

Quality Review is conducted using the Embedded Quality Submission Processing (EQSP) application. A statistical valid sample size of corrected returns is pulled weekly for all tax examiners and reviewed to ensure IRM guidelines are followed.

The following table has a list of words which require interpretations:

For a list of ERS acronyms, abbreviations and definitions see Exhibit 3.12.154-17, Acronyms, Abbreviations and Definitions.

Other job aides, electronic tools, or websites needed to complete the work are listed below:

The tax class, document codes, and Master File tax (MFT) codes for Unemployment Tax Returns are as follows:

The due date for Form 940 and Form 940 (sp) is January 31 of the following Tax Year.

Since this is an annual return (covering a 12-month period) there are no short/fiscal period returns as compared to other Business Master File (BMF) returns.

The taxpayer may notate short period on the return, but if no reason is given, such as final, quarterly payment, seasonal, etc., we correspond to find out why the return was filed early.

The due date is extended by 10 days, if timely Federal Tax Deposits have been made in full by the due date.

There is no extension form for these returns.

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 Return Processing Branch BMF Code and Edit and Error Resolution System (ERS) shown and developed topics for BMF Consistency.

A "♦" (diamond) in front and after the subsection title shows BMF Consistency subsection.

The text in normal print within a consistency subsection signifies the common processes to be used for all 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 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. 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 Taxpayer Services (TS) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, TAS Operations Assistance Request (OAR) Process.

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 can’t be taken to resolve the taxpayer's issue the same day. See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines.

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, and IRM 13.1.7.4. Exceptions to Taxpayer Advocate Service Criteria, for more information on cases that TAS will no longer accept.

BMF 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.

Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC are willful attempts to evade or defeat the income tax. Criminal tax violations also are 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 to CI.

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 which is outside of the norm for data found on similar returns for each income tax return type. If ERS finds return characteristics not meeting Audit Code or Exam referral criteria it 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 (e.g., Frivolous Argument), take proper action.

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

Businesses use frivolous argument 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 Returns Program (FRP), and Exhibit 3.12.154-14, Potential Frivolous Argument for Examination Review, for a list of recognized frivolous argument 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 frivolous argument:

When the taxpayer fails to file a required return, IRC 6020(b) is the authority for the IRS to prepare the return. These returns are received in various formats.

At the centers option, IRC 6020(b)Form 940 returns are processed through ISRP or Service Center Recognition Image Processing System (SCRIPS).

These are identified by the notation: "PREPARED AND SIGNED UNDER AUTHORITY OF IRC 6020(b) OF THE INTERNAL REVENUE CODE" is found at the center bottom of Page 1 or Page 2 of the return. The right margin should also show "TC 599 cc 38" , or "TC 599 cc 39" should appear in the left upper margin.

After December 20, 2000, services rendered to a federally recognized Indian Tribal Government (or its instrumentalities) are exempt from Federal Unemployment Tax (FUTA), subject to the tribe's compliance with applicable State law. For more information, see Announcement 2001-16 and IRC 3309(d).

For submission processing purposes, Code & Edit and ERS employees will accept all FUTA tax returns notated or referenced with the following explanations for exemption to the FUTA tax. We will code and perfect these returns as "Non-Taxable and Final" .

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 communication with taxpayers or their personal representatives, on tax-related matters must give (at a minimum) the following information:

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, fax signatures are acceptable. For more information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax, available at http://imdtrack.web.irs.gov/IG_Uploads/IRS.gov_No/NHQ-01-1019-0001.pdf.

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 prior to disclosing any tax information:

Prior to 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" is annotated on the front of the return.

Follow the instructions below for processing "CII" returns.

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) centers cycles are:

BMF transaction posting time frames are:

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

Some Submission Processing Centers have developed local use Desk Procedures.

Unit managers must have a signed approval on file from the responsible Branch Chief on all Submission Processing Centers Desk Procedures.

All existing local information and procedural issuances must be reviewed by the Operations Manager upon receipt of the new IRM revision to ensure conformance with Headquarters procedures.

Local desk procedures are only to be used:

It is important to leave a legible "Working 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). For more information, see IRM 3.12.154.2.25, Taxpayer Notice Codes (TPNC).

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. Arrow 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.

Correspondence records with Action Code 21X automatically suspended for a predetermined number of days or until the taxpayer replies, whichever is earlier.

Use Form 12522, 940 Correspondence Action Sheet - Letter 142-C for Form 940 Correspondence, or other locally approved Correspondence Action Sheet (CAS) to initiate correspondence.

Most correspondence is a computer-generated notice, a computer-generated letter, or a pre-printed letter.

When developing special notes or letters, following the guidelines below:

Missing Signature - A signature is required on most returns:

See Exhibit 3.12.154-6, Correspondence Action Chart, for issues needing correspondence.

See Exhibit 3.12.154-7, No Reply/Undeliverable Chart, for no response to correspondence issues.

Do not correspond for a signature on "CII" returns with Form 13596 attached. Route reinput/reprocessable "CII" returns missing a signature to Accounts Management. See IRM 3.12.154.2.14, Correspondence Imaging Inventory (CII) Returns.

The determination of a domestic or foreign address is based only on the address of the taxpayer.

The following words are used in the sections of this IRM:

The following forms are referred to in this section. The table below shows their form number, form title and use:

The COMMAND CODES (CC) used for correcting the Error Inventory and the Workable Suspense Inventories are described below.

The following is a list of some CCs:

The ERS Action Code shows specific information is missing or that the record is to be rejected from processing. The Action Code will have sufficient detail to show if correspondence is to be sent to the taxpayer or the specific inhouse research or other examination is required. See Exhibit 3.12.154-13, Action Code Chart.

ACTION CODE 001 will be computer-generated when the BOB Resolution Function(Block Out of Balance) has added a missing document by only inputting the TIN and the Name Control for the missing document. See IRM 3.12.154.4.2(2), Priority I Errors Inventory Correction Procedures.

Document Perfection Tax Examiners (Code & Edit) will assign Action Codes to numbered returns when they decide the document is non-processable in its present form either by needing more information or some manual intervention is required. The Action Code will be entered on the lower left margin of the return.

Correspondence Action Sheets (Form 12522) may be attached by Code & Edit to initiate correspondence.

The presence of a valid Action Code other than AC 001 will place the record in the Suspense Inventory, either Workable or Unworkable.

If the Action Code assigned by Code & Edit is invalid, incomplete, or AC 001, the record will be assigned to the Error Inventory for correction or deletion of the Action Code.

Only one Action Code may be assigned at one time to a record. The priority of the Action Codes will be:

An ERS Tax Examiner may enter an Action Code on a record, delete or correct an invalid Action Code.

ERS Tax Examiner entering a valid Action Code with CC SSPND will be clearing the record from the screen and placing the record in either Workable Suspense or Unworkable Suspense.

A Reject Tax Examiner entering a valid Action Code with CC RJECT will be rejecting the record from ERS. Generally, Service Center Control File (SCCF) will be automatically updated for the rejected record.

A Reject Tax Examiner entering an Action Code with the CC NWDLN will be rejecting the record from ERS and establishing the new DLN under which the record is to be input.

Records for the documents in the Error Resolution System (ERS) are controlled by Status Codes. The status is updated when the record is placed in a specific inventory.

Below is a list of the Status Codes and a brief explanation:

The final two positions of the Status Code will consist of the first two positions of the Action Code. This will put similar work together on the Workable Suspense Inventory.

This code is used when a math error is present involving the tax liability or balance due/overpayment. It is entered on the terminal screen following the literal "NC." See Exhibit 3.12.154-16, Taxpayer Notice Codes.

To eliminate a TPNC, do one of the following:

The TPNC is entered after determining that no other corrections to the record are needed.

Each Math Error will have certain TPNCs that are valid to clear the Math Error.

Each Math Error display will require a correction to a field or the entry of a TPNC. The transmission of a TPNC must not be accompanied by any other correction.

A return can have a total of three TPNCs. If more than three TPNCs are to be assigned, use TPNC "90" instead and list the errors for Notice Review to type and send to the taxpayer.

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

Listed below are procedures you may take once a TPNC is transmitted to the ERS record:

Records which have been worked may be reworked using CC GTRECW. Refer to IRM 3.12.38.3.2.(4), General Correction Procedures, for further details.

All TPNCs are erased when a record is suspended with CC SSPND.

Unfinished records from the previous day will contain none of the TPNCs assigned to the records that were not completely worked.

OSPC Only - Form 940 (PR), Revision 2022 and prior, TPNCs are issued in the Spanish version.

Form 940 (sp) TPNCs are issued in the Spanish version.

For a listing of the TPNCs valid for specific forms, See Exhibit 3.12.154-16, Taxpayer Notice Codes.

The letter "C" is used as a Clear Code for the Error Codes (consistency errors) where the error condition is such that the resolution does not require a change or correction to the record as displayed.

Programming erases all "C" Clear Codes for Error Codes when a record is suspended with the CC SSPND.

It also erases Error Codes and Action Codes for the new day's Error Inventory and Workable Suspense Inventory.

Sometimes an ERS Tax Examiner, correcting errors at the terminal, will create an Error Code with a higher priority than the one(s) cleared with a TPNC or "C" Clear Code.

Sometimes an ERS Tax Examiner will make a correction erasing an Error Code which you previously cleared with a "C" and now the error condition no longer exists.

Any Form 940 series return that has a current processing date equal to or more than two years and nine months or more after the original due date (without regard to any extension) or the received date, whichever is later, is a statute control document.

All "G" Coded returns become statute returns if the processing date is equal to or more than two years and nine months after the due date.

If the return has an attachment or stamp which shows previous clearance by the Statute Control Group within the last 90 days, the error must be cleared by entering "W" in Field 01CCC.

If the return does not have an attachment or stamp which shows that the Statute Control Group has cleared it within the last 90 days, take the following actions:

The statute date for timely filed Form 940 series returns requesting an overpayment/refund due is shown in the table below.

If a penalty other than a delinquency, late payment or Federal Tax Deposit (FTD) penalty is included on the return and the notation "3465 Prepared" does not appear on the return take the following actions:

The following instructions apply to Electronically Filed returns:

Form 940 originally input by electronic filing come out on ERS for correction.

The corrections are identical to corrections made for paper input documents.

Electronic Filed DLNs contain Document CODE 39.

This section explains the procedure for issuing refunds when the 45-day interest free period is about to expire or when the amount of refund is $25,000 or more.

Document Perfection and ERS are responsible for identifying refunds and for initiating requests for manual refunds.

Action Code 341 should be input by Code & Edit to show that a manual refund is needed.

If these are not identified in Code & Edit, ERS examiners need to be aware of the following criteria:

Taxpayer Advocate Service (TAS) Initiated Manual Refunds - Any request for a manual refund that is hand walked by a Wage and Income Submission Processing (SP) liaison for a Taxpayer Advocate Service (TAS) employee as a manual refund, should be processed by a Lead Tax Examiner or designated tax examiner using the following procedures in the order listed:

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

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

Assigning TPNCs/Math Error - When a math error is identified, do the following:

When Balance Due/Overpayment Math Error Code generates - Do the following:

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

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

The Form 940 was redesigned for Tax Years 2006 and later , Form 940 (PR) was redesigned for Tax Years 2006 through 2022.

The Form 940-EZ became obsolete. Thus, all Form 940-EZ returns must be converted to a current year Form 940 return format.

A signature and jurat is required on all returns except:

Since tax examiners are not expected to be handwriting experts, Regulations allow us to presume that the signature on a return, statement or other document is the true signature of the person who actually signed the document.

Accept a signature declaration (i.e., a signature with a jurat obtained through correspondence) if attached to the return.

A signature of an individual, officer, partner, duly authorized agent, etc. affixed by rubber stamp, mechanical device, or computer-generated software to a return is acceptable on Forms 940, Form 940(PR), and Form 940 (sp), and may appear in either the Sign your name here or the Print your name here boxes.

An error code is computer-generated to a record and assigned in numerical order.

Error codes are displayed on ERS by priority. The lower number error codes appear first.

Error codes require one of the following actions to be taken by the tax examiner:

ERS will identify errors according to type and priority. The record heading will show the type of error.

Priority I are Action Code Errors. When an Action Code is assigned to a return, it displays as a Priority I error.

Priority II are Section Errors (ISRP and Terminus).

Priority III are Field Validity Errors. Any field failing to meet the requirements for that field displays as a Priority III error.

Priority IV are Math and Consistency Errors. When a record is assigned an Error Code because of a math error or an inconsistency between fields, it displays as a Priority IV error.

There may be records where the tax examiner finds that programming has not furnished a section that is needed to solve an error. If this happens, the tax examiner will enter the section using CC GTSEC and enter the missing data. It should be reported to Headquarters for correction of the display.

All records that are assigned an Action Code by Code & Edit will be displayed as a Priority I Error.

If the Action Code is valid and other than 001, it will be placed in the Suspense Inventory.

The Error Screen Display will show the following:

Prior to making corrections do the following:

Money Amounts - When you correct a screen display, be sure money amounts have been transcribed correctly in dollars and cents.

Check the displayed Action Code for validity. See Exhibit 3.12.154-13, Action Code Chart, for valid Action Codes.

Decide if the record can now be resolved with the information available. If so, make the corrections to the record using CC DLSEC or CC GTSEC.

After all corrections are made and transmitted, enter a "C" in the Clear Code Field and transmit.

The No Reply instructions are furnished on the No Reply Chart. See Exhibit 3.12.154-7, No-Reply / Undeliverable Chart.

If the error cannot be resolved without other information or clearance, re-suspend with the correct Action Code using CC SSPND.

A record may also require rejecting from ERS, either for re-input or voiding.

The following table has Priority I error instructions:

An edit error is a section with an error detected by ISRP or SCRIPS.

Edit errors are coded as follows:

Questionable Section - the same section was input more than once, or a section was entered out of sequence. The computer program will drop all duplicate sections and display the first one encountered.

Mainline Problem - two sections were input (04 and 05 input) to generate Section 02.

This error is caused by a section with variable length input fields containing an erroneous size field.

When displayed, this type of error will show all input fields of the terminus section.

Some reasons for this type of error are as follows:

All fields with a Priority III error will be displayed in the order encountered in the record.

The Action Code and TPNC will never be displayed as a Priority III error.

Follow the correction procedures below for an Overflow condition:

Section 01 information is as follows:

Name Control:

Check Digits

Description - The EIN is a number assigned by the IRS for identification of a business tax account.

This field is found in the Entity Section of the return.

Description - This field is found in the Entity Section of the return and consists of the four digits for the Tax Year, for example, 2024.

Field 01 will take up to 10 Computer Condition Codes.

This field is found in the following locations on the tax form:

Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. See the following table:

The Received Date field is date stamped by Receipt and Control or perfected by Code & Edit on the center of return.

The Received Date is required on Form 940 Series returns. , , , or

If all positions in the field are blank, it would not cause an invalid condition.

This field is no longer edited by Code & Edit.

The "P" / "I" Code was used to alert the computer to do a computation for penalty and/or interest if the return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Description - The State Code Field for a single State filer is found in Part 1, Line 1a. for Form 940, Form 940 (PR) (Revision 2006 through 2022 ) and Form 940 (sp).

The State codes are composed of two alpha characters.

There are 53 valid codes, as shown below. See Exhibit 3.12.154-9, Entity State Code and Zip Code Chart.

Form 2848, Power of Attorney and Declaration of Representative. and Form 8821, Tax Information Authorization (TIA), are forwarded to the Central Authorization File Unit (CAF) by Code & Edit function.

Editing of Central Authorization File Codes by Code & Edit is no longer necessary. When the CAF Code was being edited, the field 01CAF had a value of 1, 2, 3, 4, or 7 depending on how much authority the CAF representative had received from their client.

If a Form 2848 or Form 8821 is still attached to the return, detach and route to the CAF function.

If a "General Power of Attorney" or a "Durable Power of Attorney" or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821, leave it attached to the return. Do not detach. Do not route to the Central Authorization File function.

The Schedule Indicator Code (SIC) is used to notify the computer that the Record of Quarterly Federal Tax Liability (ROFTL) is incomplete or unnecessary. SIC 1 would be edited when:

The Schedule Indicator Code (SIC) is found in the following locations:

This box is found in Part 1, Line 1b. If this box is checked, the taxpayer is showing wages were paid in more than one State. Form 940 Schedule A must be completed when Box 1b is checked. Valid entries for 01MSB are "1" and blank.

Box 2 must be checked if the taxpayer paid wages in a State that is subject to credit reduction. Valid entries are "1" or blank.

This field is used to show Form 940 Schedule R, Allocation Schedule for Aggregate Form 940 Filers, was attached to the Form 940 when filed.

The Form 940 Schedule R and its continuation sheet are created to identify the clients by EIN and report aggregate filers total taxable FUTA wages, adjustments, credit reductions and deposits. Agents will be required to attach Form 940 Schedule R and any continuation sheets to Form 940 calendar year 2011.

Valid entries are "R" (active) or blank (inactive).

When the Form 940 is filed with a Form 940 Schedule R attached, Code & Edit will edit an "R" to the right margin next to Line 6, "Subtotal."

The Correspondence Received Date field is used as a second date in computing interest on overpayments.

If all the positions in the field are blank, it does not cause an invalid condition.

Description -This field is used to show the taxpayer has requested that an overpayment of $1.00 or more be either credit elect (CCC E generated) or refund (CCC S generated).

If the Applied Refund Indicator"2" is present, then the system will generate CCC "S"

If the Applied Refund Indicator is blank, the system will generate CCC "E" (if CCC is "F" is not present). If CCC "F" is present, CCC "S" will generate.

Description - Valid character for this field is "1" or blank.

This field has one (1) position.

Description - the valid characters for this field are numeric.

The field length is five (5) positions.

This number is not issued by the IRS. This number is self-selected by the taxpayer.

This field has the Preparer's Tax Identification Number (PTIN) issued by the IRS.

This field has the preparer's firm Employer Identification Number (EIN). The Firm's EIN:

The Paid Preparer's Telephone Number is found on Page 2 of Form 940, Form 940 (PR), and Form 940 (sp) in Part 7. This field is not valid for any tax years prior to 2008.

For Section 02:

All input fields are dollars and cent and positive only with the exception of Field 02BD/R which is positive or negative.

This table shows (in line sequential order) the field designator, the field length, the title of field, and the location of the field on the return:

All money fields are in dollars and cents.

The following table shows the field, the field length, the title of field and the location on the return:

The Total Tentative Credit will no longer be applicable.

Description - This field is found on Line 7 (Line 7a 2001 Revision or Line 5 2005 and Prior) on Form 940, Form 940 (PR) and Form 940 (sp). It must be entered as dollars and cents and positive amounts only.

If taxable wages are present, the taxpayer's total tax cannot be zero.

This field is found on Line 7 (Line 7a 2011 Revision or Line 5 2005 and Prior) on Form 940, Form 940 (PR), and Form 940 (sp). Computer-generated under-print amount.

There are no invalid conditions or correction procedures for this field.

This field is found in Line 7b on Form 940 and Form 940 (PR) for Tax Year 2011 revisions (transcribed amount in the box in front of the .008 amount).

It must be entered as dollars and cents and positive amounts only.

This field is found in Part 2, Line 7c (transcribed amount in the box after the .008 amount).

This field is found in Line 7c (computer-generated amount for the box after the .008 amount).

There are no invalid conditions or correction procedures for this field.

This field is found in Line 7d on Form 940 and Form 940 (PR) for Tax Year 2011 revisions (transcribed amount in the box in front of the .006 amount).

This field is found in Line 7e (transcribed amount in the box after the .006 amount).

This field is found in Line 7e (computer-generated amount for the box after the .006 amount).

There are no invalid conditions or correction procedures for this field.

This field is found in Line 8 on Form 940, Form 940 (PR) for Tax Year 2006 through 2022 and Form 940 (sp).

This field is invalid if it is not all numeric. It must be a positive amount only. If present as a negative amount, convert to a positive amount.

This field is found in Line 8 on Form 940 , Form 940 (PR) for Tax Year 2006 through 2022 and Form 940 (sp).

It is not a transcribed field. It is a computer-generated field. There are no invalid conditions or correction procedures for this field.

This field is found on Line 9 of Form 940, Form 940 (PR), Revision 2006 through 2022 and Form 940 (sp). The taxpayer enters an amount on this line if all of the taxable FUTA wages they paid were excluded from State unemployment tax.

This field may or may not contain an entry. This field is "blank" or "zero" or may show a "dash" , showing that Line 9 does not apply to the taxpayer.

If present, this field must be entered as dollars and cents. It must be a positive amount only. If present as a negative amount, convert to a positive amount.

This field is found on Line 10 of Form 940, Form 940 (PR) (Revision 2006 through 2022) and Form 940 (sp). The taxpayer will complete this line if some of the FUTA wages that they paid were excluded from State unemployment tax, or if they paid any State unemployment tax late.

This field may or may not have an entry.

This field must be entered as dollars and cents, or is "blank" or "zero" on taxable returns. If present, it must be a positive amount only. If present as a negative amount, convert to a positive amount.

A Credit Reduction State or territory is named by the Department of Labor when it is unable to repay loans from the Federal Unemployment Fund. Employers doing business in that State or territory are required to pay more tax on their Form 940. This is done by a reduction of the allowable credit.

If credit reduction does not apply for a particular year, the applicable lines relating to credit reduction will be grayed out on the form.

This field is found in the following locations:

This field is not valid for tax years 2006 through 2008.

It must be entered as dollars and cents and positive amounts only. If present as a negative amount, convert to a positive amount.

The information obtained from this area is utilized by The Bureau of Public Debt and The Department of Labor.

Description - This field is found in the following locations:

This field must be entered as dollars and cents and cannot be "blank" or "zero" on taxable returns. It must be a positive amount only.

It must be entered as dollars and cents.

All money amounts must be positive only.

This field is found in the following locations:

This field must be entered as dollars and cents and is a positive or negative amount.

Code & Edit will perfect balance due/overpayment.

This field is found in the following locations: