The Error Resolution System (ERS) is an on-line computer application used by tax examiners to correct errors identified during Generalized Mainline Framework (GMF) processing.

Included in this chapter are instructions for correcting errors on applications for extensions of time to file and certain other miscellaneous forms.

This IRM is to be used in conjunction with IRM 3.11.212, Applications for Extension of Time to File.

The instructions in this IRM cover the correction of the following forms.

Correction instructions for approved Forms 4868, processed as Program 447XX (Document Code 17 and 19), are in IRM 3.12.10, Revenue Receipts.

Correction Instructions for Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, and Form 8868, Application for Automatic Extension of Time to File an Exempt Organization Return, are in IRM 3.11.20, Exempt Organization and Employee Plan Applications for Extension of Time to File.

Correction Instructions for Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation, are in IRM 3.12.12, Exempt Organization Returns.

Authority for the procedures in this IRM is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations:

Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policy Statements.

The Director, SP Office is responsible for monitoring operational performance for the Submission Processing campus.

The Operations Manager is responsible for monitoring operational performance for their operation.

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

The team employees are responsible for following the instructions contained in this IRM including procedural updates (IPU) to this IRM posted to the SERP (Servicewide Electronic Research Program) website.

Program Goals: The ERS program objective is to provide timely and accurate correction of extensions that are in the ERS error inventory after data is input via Integrated Systems Remittance Processing (ISRP) and Modernized e-File (MEF).

Program Reports: All ERS records are controlled by a Document Locator Number (DLN), and error records are accessed and assigned for correction by block DLN. The daily ERS Error Inventory Report ERS 13-40 lists each block of returns and the number of returns in ERS inventory by program. The ERS system displays with command code ERVOL the real-time volume in inventory by status and by program. Daily, weekly, and periodic reports are available to management through Control-D WebAccess to manage inventory and capture data for program planning and review. See IRM 3.12.37, IMF General Instructions.

Program Effectiveness: Tax examiner completed inventory is selected for quality review during real-time processing. This review is conducted according to the procedures in IRM 3.30.30, Embedded Quality for Submission Processing (EQSP) System.

Annual Review: This IRM is updated and published annually after review and concurrence by affected offices according to the clearance process established in IRM 1.11.9, Clearing and Approving Internal Management Documents (IMDs).

All tax examiners must submit and have a Business Entitlement Access Request System (BEARS) request approved by management to gain access to the Error Resolution System.

ERS inventory is worked on a First-In-First-Out (FIFO) basis when received from input systems through the GMF.

Control clerks are responsible for the control of error documents. See IRM 3.12.37, IMF General Instructions.

See Exhibit 3.12.212-18.

Student Guide 2486-001, ERS for Business Master Filed (BMF) Extensions - F7004/F8868/F5558, and Job Aid 2519-012, BMF ERS, have been developed by Submission Processing Design Center (SPDC) to assist BMF forms related to this IRM.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2, Internal Revenue Manual (IRM) Process, and elevate through proper channels for executive approval.

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For more information about TBOR, see https://www.irs.gov/taxpayer-bill-of-rights. Under TBOR, taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to give information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels.

TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the W&I Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, TAS 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.

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.

The following forms are referenced in this section. The chart below shows their form numbers, form titles, and uses.

If unrelated or unanswered taxpayer correspondence or questions are attached or written on the document and no action has been taken, detach or photocopy and route to the appropriate area.

If unanswered taxpayer correspondence relating to the extension application form is attached, make a photocopy of the attachment and route to the appropriate area.

Verify any attachment or photocopy of an attachment to be routed elsewhere contains the name, address, Taxpayer Identification Number (TIN), received date, and that an audit trail is notated on the extension form.

Normally extension requests will be processed by the campus where they are received, but there are some exceptions. Use the following chart to determine transshipping:

Transship to KCSPC any Form 4868 for Form 1040-NR estate or trust. These forms must meet all the following conditions:

When an ERS document is extending the time to file a Non Master File (NMF) return (Form 8612, Form 8613, Form 8725, Form 8831, Form 8876, Form 8924, or Form 8928), the record must be rejected from ERS.

Error Resolution System (ERS): When perfection of a document is not possible because correspondence is needed, perform research or refer the document to another area of the campus and suspend using the appropriate action code.

Command Code (CC) INOLE, definer S (INOLES) and the taxpayer's EIN, SSN, Internal Revenue Service Number (IRSN), or Individual Taxpayer Identification Number (ITIN) is used to find the following information:

Form 7004 is processed in ERS:

Form 3177:

Form 5466-B:

Form 8892:

IMF extension Form 4868 (denied, Program 4550X) and Form 2350 (both approved and denied, Program 4550X): See IRM 3.12.212.9.

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

This IRM will provide correction procedures for the displays of the errors. There may be records where programming has not furnished a field needed to correct an error; in this case, use GTSEC. This is to be reported to National Office for correction.

Records will be placed in Error Inventory or Workable Suspense Inventory for correction. Once the record has been accessed and it displays, it must either be fully corrected, placed in suspense for more information, or rejected from pipeline processing. Corrections include correcting errors in editing or transcription.

This IRM is the main source of information in correcting the record and the related extension request. Procedures will also be found in IRM 3.12.37, IMF General Instructions and IRM 3.12.38, BMF General Instructions which provide general instructions for correcting errors, document control, inventories, and management reports.

Each day the Error Inventory Report will be furnished showing the blocks by the block control number and block DLN in DLN order. Each batch will be on a separate page. Blocks received from Block Out of Balance (BOB) Correction will be listed separately.

A copy of the Error Inventory Report can be placed on the carts of documents and used as a charge-out. This will help to determine when a cart is completed.

The first line of the Error Inventory Report will show the number of working days the records on that page have been in the Error Inventory. This will enable work left from a previous day to have priority.

Records for the documents in ERS are controlled by status codes. The status is updated when the records are placed in specific inventory.

Below is a list of the status codes and brief explanation:

The final two positions of the Status Code are the first two positions of the action code. This groups similar work together on the Workable Suspense Inventory.

Each day the Workable Suspense Inventory Report shows the records by program, in DLN order, for various statuses, and totals.

The first line of the report shows the number of working days the records have been in the Workable Suspense Inventory. The oldest work should be prioritized.

An ERS Action Code indicates specific information is missing or the record is to be suspended or rejected from processing. The code has sufficient detail to indicate if correspondence is to be sent to the taxpayer, or the specific in-house research or action required.

Code and Edit assigns Action Codes when numbered extension requests are unprocessable, more information is needed, or a manual intervention is required. The code is entered on the bottom of the extension.

Correspondence Action Sheets (Form 3696 and Form 13482) are attached by Document Perfection. When routing within the campus for in-house research, an explanation concerning the missing information needs to be attached to the extension request.

The Action Code assigned by Code and Edit is transcribed in the record of the document.

A valid Action Code other than 001 will place the record in the Suspense Inventory, either Workable or Unworkable.

A charge-out (Form 8161) is computer-generated for all new suspense items. The charge-out is used for pulling documents, and routing and controlling documents while the record is held in suspense, and associating the document with the Workable Suspense Inventory when the record becomes workable.

When a record displays on the Workable Suspense Inventory with the Action Code as first priority:

When perfection is not possible, reject the record and initiate action to void the DLN. If remittance is involved, transfer it to the Unidentified Remittance File (URF).

Perfection may be possible but if the record requires renumbering or uncorrectable fields need correction, reject the record for reinput using RJECT with Action Code 630 (reinput) or 640 (void). If a new DLN is needed, use NWDLN with the appropriate Action Code and new DLN Master File Identification code, if required.

A charge-out will generate for all rejected records. The charge-out remains in the campus files for future reference.

ERS automatically controls most of the adjustments to Service Center Control File (SCCF). When manual adjustment is required, use Form 4028, Service Center Control File Adjustment Record (SCCF Format Code 216).

Only one Action Code may be assigned at a time to a record. The Action Code priority is 310, 4XX, 6XX, 3XX, 2XX. An Action Code may be entered on a record, delete or correct an invalid code, or enter another action code to resuspend or reject from ERS. Use RJECT, SSPND, or NWDLN with a valid Action Code.

SSPND with an Action Code clears the record and places the record in Workable Suspense or Unworkable Suspense.

RJECT with an Action Code deletes the record from ERS. SCCF automatically updates for the rejected records.

See the chart below for Action Codes used in the processing of extensions.

A field labeled CL will display for the entry of a clear code when there is a possibility that a change or correction may not be needed. The Clear Code Field is located to the right of CRECT on the screen display.

Error codes are cleared by either correcting the condition or entering a C in the Clear Code Field to indicate no correction is needed. If corrections are made, transmit before entering Clear Code C.

Code C is used for clearing the Action Code after corrections have been completed, or as with Action Codes 410 and 700, the Action Code must be cleared initially so other errors in the record can be resolved.

The numeric 000 is used as a clear code when deleting Action Codes. It will be used for erroneous Action Codes when there’s no reason to suspend the record. The numeric 000 can’t be used in suspense correction.

Programming erases all clear codes for error codes when a record is suspended using SSPND.

Programming erases all clear codes for error codes and action codes for the new day's Error Inventory and Workable Suspense Inventory. Unfinished records from the previous day won’t contain any of the clear codes that were assigned to a record that wasn’t completely worked.

Error codes (including the ones which may require a clear code) are numbered consecutively for correcting.

The clear code prevents any other corrections to the record. If a correction must be entered and the error is no longer displayed, use GTRECW to make corrections.

You might have to correspond if Code and Edit didn’t correspond for missing or contradictory information, or to notify the taxpayer the extension hasn’t been approved for Form 4868, Form 2350, Form 7004 and/or Form 8892.

The following table shows the available Correspondex Letters to use when corresponding with the taxpayer.

When the taxpayer replies to correspondence, enter the correct information provided by the taxpayer.

When there is no reply from the taxpayer for correspondence requesting information needed to process the extension, follow the no reply instructions for the error code, and ensure an audit trail is notated on the extension form. If the document carries a remittance, reinput the form as a non-remittance document and prepare Form 3244 with TC 670 to post the payment to the appropriate account. If unable to determine the appropriate account, send payment to Unidentified Remittance Unit.

When correspondence is returned as undeliverable, research attachments and IDRS for another address. If found, send the correspondence to the new address. If no new address is found:

Any field not meeting the requirements for that field will display as a field error. Reasons for this are:

All fields with a field error will be displayed in the order encountered in the record. The action code will not display as a field error.

There are two types of errors which are identified as section errors - ISRP and Terminus errors.

ISRP errors are detected by the ISRP System. The table below identifies the ISRP error displayed.

An ISRP error will display for all fields except Remittance in Section 01. Transcribed data will be present; computer generated data will not be present.

Terminus Errors are caused by a section with variable length fields containing an erroneous size field.

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

Each field that displays in each error code is defined by an Alpha/Numeric Field Designator (AFD).

Error codes will be displayed in ascending numerical order.

Error codes require at least one of the following three actions using IRM instructions:

Starting in 2024 the timely filed paper Form 7004, Form 4868, Form 2350, and Form 8868, will be scanned as part of the Scan Paper Return (SPR) project. Scanned Paper Returns can be identified in the Employee User Portal (EUP) by the following:

This table shows the fields displayed.(See Exhibit 3.12.212-1.)

Form 7004 may carry a remittance. This field is not correctable.

This field will be blank for non-remittance forms.

Invalid Conditions:

Correction Procedures:

Invalid Conditions:

Correction Procedures:

A 2 is generated in this field (indicating EIN) unless a 0 has been transcribed to indicate the TIN is an SSN.

Invalid Condition:

Correction Procedures:

This field displays the ending month and year of the tax period of the extension. The tax period is in year month (YYYYMM) format (i.e., December 31, 2023 is 202312).

Invalid Conditions:

The MFT is a two-position field indicating the type of tax return being extended.

The code is edited in the top left margin of Form 7004.

Invalid Conditions:

This field must be blank.

Invalid Conditions:

Correction Procedures:

For further information, see IRM 3.10.72, Receiving, Extracting, and Sorting and IRM 3.11.212, Applications for Extension of Time to File.

The entry for Field 01CCC is transcribed from the top center margin of the form.

Invalid Condition:

Priority of codes is L, then W. If both CCC L and W are applicable, enter L in Field 01CCC.

Correction procedure:

This field must be blank.

The return code is used to determine the correct return due date for generating the extended date.

Return Code 06 or 07 must be present when the extension is for Form 1120-F (Form Code 15).

Return Code 05 must be present when the extension is for Form 1041 (bankruptcy estate only) (Form Code 03).

This field must be blank.

This field must be blank.

Screen display for Error Code 002:

Screen Display for Error Code 003:

Screen display for Error Code 004:

Screen Display for Error Code 005:

Screen Display for Error Code 006:

Screen Display for Error Code 007:

Screen Display for Error Code 026:

The following section provides instructions for Error Code 026. See Exhibit 3.12.212-15.

Screen Display for Error Code 605:

Screen Display for Error Code 609:

Extensions for previous years may need to be processed as timely filed for one of the following reasons:

Screen Display for Error Code 615:

Screen Display for Error Code 617:

Screen Display for Error Code 999:

This table shows the fields displayed. (See Exhibit 3.12.212-4, Exhibit 3.12.212-5, and Exhibit 3.12.212-6.)

The following sections provide instructions for Error Code 002.

Screen display for Error Code 002:

The following section provides instructions for Error Code 004.

Screen display for Error Code 004:

The following section provides instructions for Error Code 103.

Screen display for Error Code 103:

The following section provides instructions for Error Code 105.

Screen display for Error Code 105:

The following section provides instructions for Error Code 107.

Screen display for Error Code 107:

The following section provides instructions for Error Code 110.

Screen display for Error Code 110:

The following section provides instructions for Error Code 135.

Screen display for Error Code 135:

Screen display for Error Code 999:

Invalid Condition:

Correction Procedure:

This table shows the fields displayed. See Exhibit 3.12.212-2 and Exhibit 3.12.212-3.

Screen display for Error Code 004:

Screen display for Error Code 005:

Invalid Conditions:

Correction Procedures:

Screen display for Error Code 011:

Invalid Conditions:

Correction Procedures:

Screen display for Error Code 103:

Invalid Conditions:

Correction Procedures:

Screen display for Error Code 107:

Invalid Condition:

Correction Procedures:

Screen display for Error Code 110:

Invalid Conditions:

Correction Procedures:Form 4868:

Correction Procedures: AUSPC Only - Form 2350:

Screen display for Error Code 113:

Invalid Condition:

Correction Procedures:

Screen display for Error Code 135:

Invalid Conditions:

Correction Procedures:

Correction Procedures:

Screen display for Error Code 999:

Invalid Condition:

Correction Procedure: