AC 0 - Accept taxpayer's or examiner's figures.

AC 1 - Taxpayer math error above tolerance.

AC 2 - Delete document from campus processing (Rejects Only).

AC 3- Document is unprocessable.

AC 4 - Delete any section except section 01.

AC 5 - Add sections other than 01.

AC 6 - Change field(s) in any section.

AC 7 - No change required.

The Error Indicator prints to the left of the section number and appears on the register as follows:

Figure 3.12.106-4

Figure 3.12.106-4 provides an example of an ISRP error. This shows a generated #4 (denoting Invalid Field Length Error) to the left of Section 01, meaning there were too many digits entered in a field. This example shows Field 01C with 10 characters but only 9 are valid.

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To correct this error, perform the following steps:

If no error is found, use AC 7 to clear the register.

A pound sign (#) indicator prints to the left of the section number if unnecessary section appears.

To fix this error, delete section using AC 4.

Double asterisk (**) indicator prints to the left of the section number if alpha data is entered in numeric field or vice versa.

To correct this error:

An asterisk (*) indicator prints to the left of the section number when a required section is not transcribed.

To correct this error:

The following definitions describe re-entry documents:

Re-entry documents can be identified by the presence of Computer Condition Codes (CCC) "U" , and/or Form 4227, Inter-SC Reject or Routing Slip, or Form 10886, Reject Routing Slip on the document when it is received in Document Perfection, or by the presence of a Re-entry Document Control, Form 3893, Re-Entry Document Control. Since June 2007, documents processed previously at Philadelphia Submission Processing Campus (PSPC) are processed at the Kansas City Submission Processing Center (KCSPC).

If a re-entry return is unprocessable, use AC 3 and route to the originating area on Form 10886, Reject Routing Slip, Form 4227, Intra-SC Reject or Routing Slip, following local procedures. See IRM 3.12.106.2.3.4, AC 3, for unprocessable conditions.

If there is a return that has not cleared the Statute Control Unit with a current processing date that is two years and nine months or more after the later of the original due date or the received date, reject the return, using AC 3. Prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip and route the return to the Statute Control Unit.

The tax period (Field 01-E) will asterisk for Statute. Check if the processing date is two years and nine months after the return due date or received date, whichever is later, and CCC "W" is not present.

If there is a return that has not cleared the Statute Control Unit with a current processing date that is two years and nine months or more after the later of the original due date or the received date, reject the return, using AC3. Prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip and route the return to the Statute Control Unit.

On both non-CCC "G" and CCC "G" coded returns, both the tax period (Field 01-E) and CCC field (Field 01-F) will asterisk if the processing date is less than two years after the return due date and a CCC "W" is present.

Examination Division may prepare dummy returns or secure unsigned copies from taxpayers to use as a source document to complete an examination case. The return is submitted for computer processing as an original. It will precede an AIMS adjustment to the BMF. It is marked "SUBSTITUTE OR COPY SECURED BY EXAMINATION DIVISION" , and may have audit papers attached. Forms you may see attached are: Form 3198, Special Handling Notice for Examination Case Processing, and Form 3233, Report of Gift Tax Examination. "DO NOT" correspond with taxpayer or executor for clarification or more information. Send to Examination for further instructions. If Statute Control Date has expired, do not send to Statute Control Unit. Enter CCC "W" .

IRPTR (Information Returns Program Transcript File On Line) - provides two payee addresses if present, filing status, one payer name and address, cross reference information, and a summary of up to 36 Information Returns Program (IRP) money amounts by income type.

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

IMFOL (Individual Master File On-Line) - provides nationwide IMF entity and tax data information on-line for tax accounts that were in credit or debit status, have freeze conditions or open Integrated Data Retrieval System (IDRS) control bases. It also displays a list of accounts moved to the retention register. Other accounts that were not on the retention register will be available on-line within 24 hours upon request.

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

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

NAMEI is used to research for missing or invalid SSNs, names and addresses.

NAMEB is used to research for missing or invalid EINs, business names and addresses.

PMFOL (Payer Master File On-Line) - is a research tool which provides information from the Payer Master File (PMF). The summary screen displays all dollar amounts, withholding of income tax, number of documents filed by payer and by document type (i.e., Form 1099 series). It has the Annual Summary and Transmittal of Information returns (Form 1096), Annual Summary and Transmittal of U.S. Information Return, filed, and the civil penalties associated with each document type. CC PMFOL provides access to Form W-3, Transmittal of Wage and Tax Statements, data (unpostable data only) beginning with tax year 1990 submissions.

The National Taxpayer Advocate reached agreements with the Commissioners of the Taxpayer Services (TS)Division, Small Business/Self Employed (SB/SE), Tax Exempt Government Entities (TEGE) Division, Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) Division, that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements were known as Service Level Agreements (SLAs).

The SLAs are found at (https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx).

Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, is due on April 15th following the calendar year when the distributions were made. If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day.

You cannot change this field. If the amount is incorrect, treat the return and related error record as unprocessable. Reject with AC 3 and prepare Form 10886, Reject Routing Slip or Form 4227, Intra-SC Reject or Routing Slip, to explain the error. The Reject function will prepare Form 3893, Re-Entry Document Control, for re-entry.

The Remittance Amount is located on the Balance Due line of a full paid return and is designated by a green rocker.

If a remittance amount is shown on an apparent nontaxable return, but an examination reveals that it should be taxable, enter the missing data in the proper fields and sections of the register and enter AC 6.

Field 01-A (Remittance Amount) will asterisk if an amount is present in Field 01-A and there is no entry in Field 03-H (Net GST Tax), or Net GST Tax Computer. If the return is a true nontaxable, (i.e., taxpayer shows "none" , "not liable" , tax is zero due to a math error, or just signs the return) and no other non-math errors are involved, treat return as "unprocessable" . Bring up the underprint for Field 03-H. Reject with AC 3. Indicate excess remittance on Form 10886, Reject Routing Slip or Form 4227, Intra-SC Reject or Routing Slip. If non-tax status is due to a math error, note on Form 10886, Reject Routing Slip or Form 4227, Intra-SC Reject or Routing Slip, Zero tax due to math error. Refund if no other tax due.

This field cannot be blank. Must be the first four alpha characters of the last name in line 1a (name control of the trust). First position must be alpha. Valid characters after the first position may be alpha, hyphen or blank. The name control is invalid if there are intervening blanks between significant characters.

Check for transcription errors in the name control field.

This field may carry an EIN or SSN for Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions.

Nine numeric characters must be present, all 9s or will be invalid.

If this field is in the EIN format (nn-nnnnnnn), it must not begin with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

If Field 01-C is invalid, examine the return and attachments.

Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, may carry an EIN or SSN.

Correct the identifying number on the return and enter the correct TIN Type with AC 6.

Check 01-D (TIN TYPE) to ensure the correct TIN TYPE were entered. Correct the field if necessary.

The tax period cannot be greater than the current processing date or earlier than 198612. (“The tax are instituted” as part of the Tax Reform Act of 1986.) The tax period month digit will always be 12.

All characters must be numeric in YYYYMM format.

If invalid, check return and attachments for correct tax period and make necessary change using AC 6.

This date must be present on all Form 706-GS(D), Generation -Skipping Transfer Tax Return for Distributions, in YYYYMMDD format. It cannot be later than the processing date or earlier than the tax period (Field 01-E).

The received date field is invalid if:

If the received date is missing or illegible, enter a date using the following order or priority:

If a return is identified as unprocessable and the taxpayer have been contacted for more information, do not change original received date, but also enter the correspondence received date (Field 01-M).

If Field 01-F is invalid, Field 01-H (Penalty and Interest (P&I) Code) has a "1" , ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Field 01-H.

If more than one date is stamped, use only the earliest date. Circle out all others. If the date is incorrect, enter the correct date with AC 6.

When processing an early-filed return, change the received date to the first date after the tax period.

If a return has been faxed to another area of the IRS and then sent to Submission Processing for processing, do not enter the Enterprise Electronic Fax (E-Fax) Date as the IRS Received Date. Enter a Received Date according to normal procedures.

The valid condition codes for Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, are D, F, G, O, R, W, X, 3 and 7. If other than these, Field 01-G will asterisk.

Enter the CCC’s in the upper left corner of the return.

If there is a transcription error, correct it by lining out Field 01-G and inserting the correct code above it. Use AC 6.

If the return is coded incorrectly, determine the correct code and enter it on the return and error register. Correct with an AC 6.

Code and Edit will enter P&I code "1" at the top right corner of the form, if prepaid penalty is present and the received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Valid entries are "1" and/or blank.

Field 01-H must be blank or "1" . If "1" is present, the received date (Field 01-F) must be ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ asterisk. See Figure 3.12.106-8, shows timely-filed Form 706-GS(D),Generation-Skipping Transfer Tax Return for Distributions with prepaid penalty and interest of $50.00.

Figure 3.12.106-8

Figure 3.12.106-8 shows a timely-filed Form 706-GS(D) with prepaid penalty and interest of $50.00. AC 6 is edited on the error register to the left of Section 01 to input the correction shown with the addition of the P&I code in Field 01-H. The received date shown is April 12.

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Valid indicator must be blank or numeric (one through four and seven). Only one indicator can be used.

Check the field with the return. If the data has been transcribed incorrectly, enter the correct data with AC 6. The correct CAF codes are:

If the Power or Attorney does not authorize refunds or notices, a numeric code is not necessary on the return.

Must be in YYYYMMDD format, or blank.

This field will asterisk if the following conditions exist:

When a return is identified as unprocessable and the taxpayer has been contacted, the date the reply is received with the necessary information is the correspondence received date.

Both the original received date (Field 01-F) and the correspondence received date must be shown.

The correspondence received date is shown in left margin.

DO NOT enter a correspondence received date in the following situations:

If no response is received, enter CCC "3" in Field 01-G.

If CCC "R" is applicable, edit CCC "R" on the return and enter in this field using AC 6.

This field will be used to clear the name control underprint and tax period underprint, when the underprint and the error register field do not agree.

After the procedures in IRM 3.12.106.3.1.3, Field 01-B Name Control through IRM 3.12.106.4.1.6.1, Tax Period underprint (generated), were followed and the error register field and the underprint do not agree, enter the correct code as follows:

If an invalid code or the correct code is not used, the record will loop with no change to the underprint fields. This field will never asterisk.

Taxpayer Notice Codes (TPNCs) can be input only as correction data using AC 1. Enter correct tax amount to left of taxpayer's figures and the TPNC in upper left corner of return.

The codes will appear in this field on the loop (correction run) when entered on raw and another error existed. When this occurs, correct any other invalid condition, but not this field. The use of another AC will cause this field to be blanked on the next loop.

Correct by using AC 1 and the proper TPNC.

A maximum of three (3) codes may be entered.

Manual Refund of $1,000,000.00 or more.

The only valid code is "1" . The field must be otherwise, blank.

When a refund code of "1" is both present and correct for Field 01-M, CCC "O" must be present in Field 01-G.

When an overpayment of $10,000,000.00 or more is present on a Reject Register, follow the procedures in IRM 3.12.38, BMF General Instructions.

If an overpayment of $10,000,000.00 or more is present on an Error Register, the return is rejected using AC "3" and routed to Rejects for processing. If a manual refund for any amount is issued, and CCC "O" is present, enter code "1" even if the refund is less than $10,000,000.00. Route to Rejects using Form 10886, Routing Reject Slip or Form 4227, Intra-SC Reject or Routing Slip.

If refund is $10,000,000.00 or more rejects should follow IRM 3.12.38.5.5.2. for refunds $10,000,000.00 or more.

If refund amount is $25,000 or more and in "interest jeopardy" , then the return is rejected using AC "3" and routed to Rejects for processing. If a manual refund for any amount is issued, and CCC "O" is present, enter code "1" even if the refund is less than $10,000,000.00. Route to Rejects using Form 10886, Routing Reject Slip or Form 4227, Intra-SC Reject or Routing Slip.

The Preparer's Social Security Number (SSN) (2008 and prior revisions) or Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's signature in the PTIN box (Preparer's SSN or PTIN box for 2008 and prior revisions) at the bottom right corner of Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations

Data may or may not be present in Field 01-N.

Field 01-N is invalid if any of the following conditions are present:

Correction Procedures:

The Firm's EIN (EIN for 2008 and prior revisions) is located below the Preparer's PTIN box (Preparer's SSN or PTIN box for 2008 and prior revisions) at the bottom right corner of Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

Data may or may not be present in Field 01-O.

Field 01-O is invalid if any of the following conditions are present:

Correction Procedures:

The Paid Preparer's Phone Number is located below the Firm's EIN at the bottom right corner of Form 706-GS(D), Generation -Skipping Transfer Tax Return for Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

Field 01-P is invalid if other than alpha, numeric, or blanks are present.

Correction Procedures:

Field 02- A is in the Entity Section of the return.

Field 02-A has 35 positions and the valid characters were alpha, numeric, ampersand, dash, slash or percent (%).

Field 02- A is invalid if any of the following conditions are present:

Correction Procedures:

Field 02-B is located in the Entity Address Section of the return.

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

“Invalid Condition” - Field 02-B generates 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, Changed of Address (or Form 8822- B), Change of Address or Responsible Party-Business, to the return. For more information, see Exhibit 3.12.106-3, U.S. Possessions State Abbreviations and Zip Codes.

First position must not be blank. The first position can only be alpha or numeric characters.

Valid characters are alpha, numeric, blank, hyphen, and slash.

There cannot be two consecutive blanks followed by valid characters.

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

For more information, see Exhibit 3.12.106-4, Foreign Country Codes, and Exhibit 3.12.106-5, Province, State and Territory Abbreviations.

The invalid conditions for Field 02-D are as follows:

When a Major City Code are used:

If a valid MCC cannot be used, then the entire city must be input with AC 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.

See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), Zip Codes and Countries, for valid MCC and ZIP codes. Refer to Exhibit 3.12.106-3, U.S. Possessions State Abbreviations and 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. Refer to Exhibit 3.12.106-4, Foreign Country Codes, for a list of the valid foreign country codes.

If present, this field must have a state code of two alpha characters.

This field will asterisk if the state is not valid. Enter correct state code in Field 02-E.

If a state is present as well as a MCC in Field 02-D, this field will asterisk.

If the state code does not agree with the first three (3) digits of a ZIP code, Field 02-F will asterisk.

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

The valid characters for ZIP codes are numeric and must be present if Section 02 is present.

This field must be present and have 5, 9 or 12 numeric. This field will asterisk if other than specified above. Correct field.

If valid ZIP code is not shown on return, refer to Document 7475,(State and Address Abbreviations, Major City Codes (MCC’s), Zip Codes and Countries, or ZIP code directory.

If the first three digits of the ZIP code do not agree with the major city code or state code, Field 02-F will asterisk, as well as Field 02-D or Field 02-E. Correct the proper fields using AC 6.

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

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

This field is transcribed from Line 3 (Part II (Distributions)). This is the total amount from Line 3, Column f, of all attached Copy(s) A (Form 706-GS (D-1)), Notification of Distribution from a Generation-Skipping Trust.

This field is transcribed from Line four. This amount is calculated by using the Adjusted Allowable expenses which were equal to the total allowable expenses, Copy(s) A (Form 706-GS (D-1), Notification of Distribution from a Generation -Skipping Trust) Column C multiplied by the inclusion ratio, Schedule B, Column B.

If there is more than one inclusion ratio to report on Schedule A, prorate the total expenses among the inclusion ratios based on the value of each distribution made at the various inclusion ratios.

This field is transcribed from Line 5. This field is computed by subtracting Line 4 (Field 03-B) from Line 3 (Field 03-A).

If this field underprint’s, check for Taxable Amount transcription errors in Field 03-A, Field 03-B, and Field 03-C. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

If entered correctly, use AC 1 and send TPNC 55.

This field is transcribed from Line 7. It is computed by multiplying Field 03-C (Line 5 (Taxable Amount) by (the percentage shown on) Line 6 (Maximum federal estate tax rate).

Check for transcription errors. If the transcribed amount is correct and an underprint is present, use AC 1 and send 56.

This field has on (and transcribed from) the former Line 8t (January 2003 and prior revisions).

IMPORTANT: If this amount is present on any returns with tax periods ending after December 31, 2004, draw a line through the amount shown on the register to disallow it, using AC 6. Issue 90 to explain to the taxpayer that this amount (tax) is no longer valid for tax periods ending after December 31, 2004.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

This field is transcribed from the former Line 9 (January 2003 and prior revisions). It’s computed by multiplying Line 7 (Field 03-D (Generation-Skipping Transfer Tax)) by 5 percent or (.05).

Check for transcription errors. If the transcribed amount is correct and an underprint is present, issue TPNC 90, stating, "An error was made in computing 5% of Gross GST Tax."

IMPORTANT: If this amount is present on any returns with tax periods ending after December 31, 2004, draw a line through the amount shown on the register to disallow it, using AC 6. Issue 90 to explain to the taxpayer that this amount (tax) is no longer valid for tax periods ending after December 31, 2004.

This field is transcribed from the former Line 10 (January 2003 and prior revisions). The computer used the lesser amount on Line 7 (Field 03-E (Creditable State GST Amount)) or Line 8 (Field 03-F (GST Limitation Amount)).

Check for transcription errors or misplaced entries. If the transcribed amount is correct and underprint is present, use AC 1 and send 57.

“IMPORTANT”: If this amount is present on any returns with tax periods ending after December 31, 2004, draw a line through the amount shown on the register to disallow it, using AC 6. Issue 90 to explain to the taxpayer that this amount (tax) is no longer valid for tax periods ending after December 31, 2004.

This field is transcribed from Generation-Skipping Transfer tax found on Line 11 (January 2003 and prior revision forms, and Line 7 of subsequent revisions). This field is only valid for tax periods 200412 and prior.

Check for transcription errors. If entered correctly, use AC 1 65.

This field will underprint if it exceeds≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The Table of Maximum Tax Rates is provided below.

This field is transcribed from Line 8(Payment, if any made with Form 7004) of Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

This amount is transcribed either from Line 9 (Tax (Balance) Due) or Line 10 (Overpayment).

The Tax Due amount is the result if Line 7 (Net GST tax) is larger than Line 8 (Form 7004), Extension of Time to File Certain BMF Tax Returns.

The Overpayment amount is the result if Line 8 is larger than Line 7.

Correct all editing, transcribing and transferring errors.

Any penalties and interest included in Field 03-J should be subtracted using AC 6.

This field will underprint if it exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If an error is present, use AC 1 and send 66.

Generally, Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, filed by April 15th of the year following the calendar year in which the termination occurs. If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. If the taxpayer is unable to file the return by the due date, they may request an extension of time to file by filing Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.

This field cannot be changed by Error Resolution. If the amount is incorrect, treat the return and related error record as unprocessable.

Reject with AC 3 and prepare Form 10886, Reject Routing Slip, or Form 4227, Intra-SC Reject or Routing Slip to explain the error. The Reject function will prepare Form 3893, Re-entry Document Control.

The remittance amount is located on the Overpayment line of a full paid return and is designated by a green rocker.

If a remittance amount is shown on an apparent nontaxable return, but an examination reveals that it should be taxable, enter the missing data and section of the register.

Field 01-A will asterisk if an amount is present in Field 01-A and there is no entry in Total GST Tax, (Field 03-H). If the return is a true nontaxable, (i.e., taxpayer shows "none" , "not liable" tax is zero due to math error, or just signs the return) and no other non-math errors were involved, treat return as unprocessable.

Correction Procedures:

This field cannot be blank. Must be the first four alpha characters in Line 1a (name control of the trust). First position must be alpha. Valid characters after the first position may be alpha, hyphen or blank. The name control is invalid if there are intervening blanks between significant characters.

Check for transcription errors in the name control field.

If the name control on the return and Field 01-B do not agree or has been transcribed incorrectly, change Field 01-B.

If it is not an obvious error, research through Command Code (CC) INOLE/ENMOD for EIN and CC NAMEE/NAMEB for the correct name control.

If found enter in Field 01-B with Action Code 6. If entry is less than four characters, enter and circle the number of the remaining positions.

This field must carry an EIN for Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

9 numeric characters must be present. All 9’s or 0’s will be invalid.

This field must not begin with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, and 89.

If Field 01-C is invalid, examine the return and attachments.

Field 01-D, TIN Type Indicator, is a "2" for an EIN. If blank, or other than a "2" , correct the field to show a "2" .

This field has the ending month and year.

The tax period month digit will always be 12 (i.e., YYYYMM format).

If invalid, check return and attachments for correct tax period and make necessary change using AC 6.

This date must be present on Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, YYYYMMDD format. It cannot be after the processing date or before the tax period (Field 01-E).

The received date field is invalid if:

If the received date is missing or illegible, enter a date using the following order or priority:

If a return is identified as unprocessable and/or the taxpayer has been contacted for more information, do not change original received date, but also enter correspondence received date (Field 01-J).

If Field 01-F is invalid, check Field 01-H (P&I Code). If 01-H has a "1" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 01-H.

If more than one date is stamped, use only the earliest date. Circle out all others. If date is incorrect, enter correct date with AC 6.

When processing an early-filed return, change the received date to the first date after the tax period.

The valid condition codes are D, F, G, O, R, U, W, X, 3 and 7. If any code other than those listed is used, this field will asterisk on the error register.

If there is a transcription error, correct it by lining out Field 01-G and inserting the correct information using AC 6.

If Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, is coded incorrectly, determine the correct code and enter it on the return and error register. Correct with AC 6.

Code and Edit will enter P&I Code "1" if prepaid ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Valid entries for this field are "1" or blank.

If only precomputed interest is shown, enter CCC "R" (Field 01-G). CCC "R" , if present, will override P&I Code "1" with regard to delinquency penalty only.

If P&I Code "1" is present, the received date, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ both fields will asterisk. See Figure 3.12.106-9, Shows a timely file Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

Figure 3.12.106-9

Figure 3.12.106-9 shows a late filed Form 706-GS(T) with prepaid penalty and interest of $50.00. AC 6 is edited on the corrected error register to the left of Section 01 showing a deletion of the P&I Code from Field 01-H(note a P&I Code is only needed if it is a timely return with return showing Penalty and interest). The received date of the return is April 28th to demonstrate a late filed return.

Please click here for the text description of the image.

Corrections for this are handled in the same manner as those performed for Form 706-GS(T), Generation-Skipping Transfer Tax for Terminations. See IRM 3.12.106.3.1.10, Field 01-1, CAF Indicator, for details.

Valid indicator must be numeric (1 through 4 and 7) or blank. Only one indicator can be used. Check for transcription errors. Correct the field with AC 6.

Must be in YYYYMMDD format or blank.

This field will asterisk if the following conditions exist.

When a return is identified as unprocessable and the taxpayer has been contacted, the date the reply is received with the necessary information is the correspondence received date.

Both the original received date (Field 01-F) and the correspondence received date must be shown.

The correspondence received date is in the left margin.

Do not enter correspondence received date in the following situations:

If no response is received, enter CCC "3" in Field 01-G.

If CCC "R" is applicable, edit CCC "R" on the return and enter in Field 01-G.

Corrections for Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations for this field are handled in the same manner as were performed for Form 706-GS(D), Generation-Skipping Tax Return for Distributions. See IRM 3.12.106.3.1.12, Field 01-K, Entity Underprint Code, for details.

Taxpayer Notice Codes (TPNC) can be input only as correction data using AC 1. Enter correct tax amount to left of taxpayer's figures and TPNC in upper left corner of return.

The codes will appear in this field on the correction run when entered on raw and another error existed. When this occurs, correct any other invalid condition, but not this field. The use of another AC will cause this field to be blanked on the next loop.

Correct by using AC 1 and the proper TPNC.

A maximum of three (3) codes may be entered.

This represents a Manual Refund of $1,000,000.00 or more.

The only valid code is "1" . The field must be otherwise blank.

When a Refund Code of "1" is both present and correct for Field 01-M, CCC "O" must be present in Field 01-G.

When an overpayment of $10,000,000.00 or more is present on a reject register, follow the procedures in IRM 3.12.38, Error Resolution-General Instructions.

If an overpayment of $10,000,000.00 or more is present on an error register, the return is to be rejected using AC "3" and routed to Rejects for processing. If a manual refund for any amount is issued, and CCC "O" is present, enter code "1" even if the refund is less than $10,000,000.00.

When refund is $25,000 or more and in interest jeopardy then the return is to be rejected using AC 3 and routed to Rejects for processing. If a manual refund for any amount is issued, and CCC “O” is present, enter code “1” even if the refund is less than $10,000,000.00.

The Preparer's Social Security Number (SSN) (2008 and prior revisions) or Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's signature in the PTIN box at the bottom right corner of Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

Data may or may not be present in Field 01-N.

Field 01-N is invalid if any of the following conditions are present:

Correction Procedures:

The Firm's EIN (EIN for 2008 and prior revisions) is located below the Preparer's PTIN box at the bottom right corner of Form 706-GS(D), Generation-Skipping Transfer for Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations

Data may or may not be present in Field 01-O.

Field 01-O is invalid if any of the following conditions are present:

Correction Procedures:

The Paid Preparer's Phone Number is located below the Firm's EIN at the bottom right corner of Form 706-GS(D), Generation-Skipping Transfer Tax for Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

Field 01-P is invalid if other than alpha, numeric, or blanks.

Correction Procedures:

Field 02-A is located in the Entity Section of the return.

Field 02-A has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent (%).

Field 02-A is invalid if any of the following conditions are present:

Correction Procedures: Correct coding and transcription errors using If/Then below.

“Field 02-B” is located in the Entity Address Section of the return.

“Valid Condition” - Valid characters are alpha, numeric and special characters.

“Field 02-B” generates as an error when any of the following conditions are present:

Correction Procedures:

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

For more information, also see Exhibit 3.12.106-3, U.S. Possessions State Abbreviations and Zip Codes.

First position must not be blank.

First position must be either alpha or numeric characters.

Valid characters are alpha, numeric, blank, hyphen, and slash.

There cannot be two consecutive blanks followed by valid characters.

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

The invalid conditions for Field 02-D are as follows:

Valid characters are alpha, and blank.

When a Major City Code is used:

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

Field 02-D will asterisk if the MCC does not agree with the first three digits of the ZIP code. Field 02-F will also asterisk.

See Document Code 7475 (State and Address Abbreviations, Major City Codes (MCC’s), Zip Codes and Countries) for valid MCC and ZIP codes.

If there is a foreign address, the valid country code must be present in Field 02-D. Do not abbreviate the name of the country. Refer to Exhibit 3.12.106-4, Foreign Country Codes.

If present, this field must have a state code of two alpha characters.

Field 02-E will asterisk if the state is not valid. Enter correct state code in Field 02-E.

If a state is present as well as a MCC in Field 02-D, this field will asterisk. If a MCC is correct, delete Field 02-E. If an MCC is incorrect or cannot be determined, enter the complete city name in Field 02-D.

If the state code does not agree with the first three (3) digits of a ZIP code, Field 02-F will asterisk. If the state code is not correct, draw a line through the error and edit the correct state code above it to correct Field 02-E. If Field 02-E is correct, look up the ZIP code.

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

The valid characters for ZIP codes are numeric and must be present if Section 02 is present.

Field 02-F must be present and must 5, 9 or 12 numeric.

Field 02-F will asterisk (*) if other than specified above. Correct field.

If a valid ZIP code is not shown on return, refer to Document 7475 (State and Address Abbreviations, Major City Codes (MCC’s)), ZIP Codes and Countries) or the ZIP code directory.

If the first three digits of the ZIP code do not agree with the major city code or state code, Field 02-F will asterisk as well as Field 02-D or Field 02-E.

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

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

Field 03-H is transcribed from Line 10 and is computed by adding the total amounts of all attached Schedule As (Part three, Line 10). (The total of Schedule As were entered into Lines 9a 1 9b. The taxpayer is instructed to enter the total from all other Schedules A on Line 9b if they have more than six Schedules A attached to the form.)

Check for transcription errors and correct with AC 6. If transcribed correctly and the field is still in error, use AC 1 and send TPNC 63.

The Table of Maximum Tax Rates is provided below.

Field 03-I is transcribed from Line 11.

Check for transcription errors. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Field 03-J is transcribed from Lines 12 or 13 respectively and will underprint if it exceeds ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Correct all editing, transcription and transferring errors. Any penalties and interest included in Field 03-J should be deleted.

If an error is present, use AC one and send 66. 66 “States, We found an error in the computation of balance due or the over payment”.