Section 13. Employment Tax Returns

(1) This transmits revised IRM 3.12.13, Error Resolution - Employment Tax Returns.

(1) - Added Note for ERC claims filed for 202109 - 202112 on or before January 31, 2024 throughout the IRM. Per UWR 101195.

(2) - Updated dates throughout the IRM Per UWR 101195.

(3) IRM 3.12.13.2.3.1(2) - Corrected the Taxpayer Advocate Service (TAS) Service Level Agreements Link, IPU 25U0245 issued 02-20-2025.

(4) IRM 3.12.13.4(2) - 2nd If/Then box, remove Correspondence Received Date (CRD).

(5) IRM 3.12.13.9(2) - Added new Computer Condition Code 8, for missing Schedule R.

(6) IRM 3.12.13.15(4) - Changed as indicated in "(4)" to as indicated in "(3)" .

(7) IRM 3.12.13.24(4) - Updated Statute Returns from 2020 to 2021 or prior information per latest guidance. IPU 25U0245 issued 02-20-2025.

(8) IRM 3.12.13.25(1) - Added Field 01ARI, Aggregate Return Filers per new Form.

(9) IRM 3.12.13.25.4 - Updated correction procedures throughout.

(10) IRM 3.12.13.25.6 - Added Aggregate Return Indicator Field and Correction procedures.

(11) IRM 3.12.13.26.3 - Added Exception to See IRM 3.12.13.32.18.

(12) IRM 3.12.13.26.31 - Added new Field 02B/R - Balance Due/Overpayment Lines.

(13) IRM 3.12.13.31 - Added Section 60, Direct Deposit Fields.

(14) IRM 3.12.13.31.1 - Added Section 60 Field Errors.

(15) IRM 3.12.13.31.2 - Field 60RTN - Routing Transit Number (RTN).

(16) IRM 3.12.13.31.2.1 - Field 60RTN Invalid Conditions.

(17) IRM 3.12.13.31.3 - Field 60TDA - Type of Depositor Account (TDA).

(18) IRM 3.12.13.31.3.1 - Field 60TDA Invalid Conditions.

(19) IRM 3.12.13.31.3.2 - Field 60TDA Correction Procedures.

(20) IRM 3.12.13.31.4 - Field 60DAN - Depositor Account Number (DAN).

(21) IRM 3.12.13.31.4.1 - Field 60DAN - Invalid Conditions.

(22) IRM 3.12.13.31.4.2 - Field 60DAN - Correction Procedures.

(23) IRM 3.12.13.32.1(3)b - Updated Statute Returns from 2020 to 2021 or prior information per latest guidance. IPU 25U0245 issued 02-20-2025.

(24) IRM 3.12.13.32.7(2) - Updated instructions in If/Then chart.

(25) IRM 3.12.13.32.7(3)2) 2nd Then - Final return with Received Date prior to the beginning of the quarter.

(26) IRM 3.12.13.32.8 - EC 010 - Amended Return, updated made to the Field Display table.

(27) IRM 3.12.13.32.14 - Move 6020(B) from Paragraph (1) to Paragraph (6).

(28) IRM 3.12.13.32.18(3) 2) Correction Procedures, Remove 3rd If/Then, Updated correction procedures 4th & 5th If/Then, “If Code & Edit has edited an asterisk (*)”. IPU 25U3312 issued 05-21-2025.

(29) IRM 3.12.13.32.20(3)1) - Last If/Then. Updated correction procedures for No Reply, to add CCC 3.

(30) IRM 3.12.13.32.22(4) - Suspense/Rejects Procedures - Added CCC 3 to Then table.

(31) IRM 3.12.13.32.24(3)1) - Last If/Then. Updated correction procedures for No Reply, to add CCC 3.

(32) IRM 3.12.13.32.25(4)1) - Last if/Then. Updated correction procedures for No Reply, to add CCC 3.

(33) IRM 3.12.13.32.29(3)1) - Last If/Then. Updated correction procedures for No Reply, to add CCC 3.

(34) IRM 3.12.13.32.30(4)2) - Suspense/Reject Correction Procedures, Add CCC 3.

(35) IRM 3.12.13.32.33(3)1) - 5th If/Then. Updated correction procedures for No Reply. to add CCC 3.

(36) IRM 3.12.13.34(1) - Added Field 01ARI to Section 1 chart.

(37) IRM 3.12.13.40 - Added Section 60 Direct Deposit fields Form 943.

(38) IRM 3.12.13.41.23(3)a) Updated 21C paragraph from H to I.

(39) IRM 3.12.13.60 - Added Section 60 Direct Deposit fields Form 944.

(40) IRM 3.12.13.61.27 - Updated 21C paragraph from H to I.

(41) IRM 3.12.13.79 - Added Section 60 Direct Deposit fields Form 945.

(42) IRM 3.12.13.86 - Added Section 60 Direct Deposit fields Form CT-1.

(43) IRM 3.12.13.87.21 - Updated 21C paragraph from H to I.

(44) IRM 3.12.13.87.28 - Fields Displayed updated fields for One Big Beautiful Bill changes.

(45) IRM 3.12.13.88(1) - Updated File Location Codes (FLC), removing 42 and 83. IPU 25U0312 issued 03-06-2025.

(46) Exhibit 3.12.13-1 - Added Exhibit for Form 941 March 2026 revision.

(47) Exhibit 3.12.13-2 - Added Exhibit for Form 941 March 2025 revision.

(48) Exhibit 3.12.13-14 - Added Exhibit for Form 943 Revision 2025.

(49) Exhibit 3.12.13-20 - Added page 2 Form 943 (sp) to Exhibit.

(50) Exhibit 3.12.13-22 - Added Exhibit for Form 944 Revision 2025.

(51) Exhibit 3.12.13-28 - Added page 2 Form 945 Revision 2025 to Exhibit.

(52) Exhibit 3.12.13-31 - Added Exhibit for Form CT-1 Revision 2025.

(53) Exhibit 3.12.13-36 - Updated Action Codes to clarify information. IPU 25U0245 issued 02-20-2025..

(54) Plain Language changes include:

Used simpler words

Removed unnecessary words

Changed consistency sections per BMF Consistency template

Corrected spelling and grammatical errors

Corrected references, citations, and links

Updated Exhibits

Updated dates throughout including Tax Periods and Received Dates

Updated form titles

Deleted old line numbers throughout

Scott Wallace Director, Submission Processing Taxpayer Services

This IRM section provides instructions for Taxpayer Services Error Resolution Tax Examiners to correct errors for the returns below:

Form 941 - Employer's Quarterly Federal Tax Return

Any Forms 941, 941-PR, 941-SS, 943, 943-PR, 944, 944(SP), 945 or CT-1 with a Revision Year 2013 and prior, that are processed through ISRP, should have their lines re-numbered to the 2017 revision line numbers per IRM 3.11.13, Employment Tax Returns (Document Perfection).

Form 941(sp) - Employer's Quarterly Federal Tax Return (Spanish version)

Form 941-PR - Employer's Quarterly Federal Tax Return-Puerto Rico Ogden Submission Processing Campus (OSPC) only (discontinued in 2024).

Form 941-SS - Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands and, the U.S. Virgin Islands (OSPC only) (discontinued in 2024).

Form 943 - Employer's Annual Tax Return for Agricultural Employees

Form 943(sp) - Employer's Annual Tax Return for Agricultural Employees (Spanish version)

Form 943-PR - Employer's Annual Tax Return for Agricultural Employees - Puerto Rico. (OSPC only) (discontinued in 2024).

Form 943(sp) - Employer's Annual Tax Return for Agricultural Employees (Spanish version)

Form 944 - Employer's ANNUAL Federal Tax Return.

Form 944(sp) - Employer's Annual Tax Return for Agricultural Employees (Spanish version)

Form 945 - Annual Return of Withheld Federal Income Tax

Form CT-1 - Employer's Annual Railroad Retirement Tax Return Kansas City Submission Processing Campus (KCSPC) only.

Purpose: The Error Resolution System (ERS) is a means to resolve errors made by taxpayers and correct errors made during campus processing.

Audience: Tax Examiners in the Input Correction Operation, Error Resolution Section, including:

Tax Examining Technicians

Lead Tax Examining Technicians

Supervisory Tax Examining Assistants

Policy Owner: Director, Submission Processing.

Program Owner: Return Processing Branch, Business Master File (BMF) Section.

Primary Stakeholders: Other areas that may be affected by these procedures include (but not limited to):

Accounts Management (AM)

Chief Counsel

Compliance

Information Technology (IT) Programmers

Large Business and International (LB&I)

Small Business and Self-Employed (SBSE)

Statistics of Income (SOI)

Submission Processing (SP)

Taxpayer Advocate Service (TAS)

Tax Exempt Government Entities (TE/GE)

Employees are reminded to consider any ethical issues while following these instructions.

Error Resolution will 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. Employees use ERS to correct the errors and use IDRS to research.

Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction.

Once you access a record and it displays on the screen, you must resolve the error by either:

Fully correcting the record.

Placing the record in suspense until more information is received.

Rejecting the record from pipeline processing.

Corrections will include correcting errors in editing or transcribing, or in the case of a taxpayer error, notifying the taxpayer of the error on the return.

This IRM is your main source of information for correcting the record on the screen and the related return. However, you may also find some procedures in IRM 3.12.38, Error Resolution-BMF General Instructions, which has procedures for correcting records on the screen, document control, inventories and management reports within ERS and Rejects.

for these procedures is found in section 6201(a) of the Internal Revenue Code and its corresponding Treasury regulations.

The Directors of Ogden and Kansas City Submission Processing campuses are responsible for monitoring operational performance for the BMF Submission Processing campuses.

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 to follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Goals: Correct any errors that are identified using the Error Resolution System (ERS).

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

Program Effectiveness is measured using the following:

Embedded Quality Submission Processing (EQSP)

Balanced Measures

Managerial reviews

Annual Review: Federal Managers Financial Integrity Act (FMFIA)

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

For Terms, Definitions and Acronyms see Exhibit 3.12.13-35.

The following is a list of related resources:

Servicewide Electronic Research Program (SERP)

Submission Processing Design Center (SPDC)

Integrated Data Retrieval System (IDRS)

This IRM can't address every possibility that occurs while correcting returns or documents. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to the subject matter expert (SME), lead or manager to determine the corrective action.

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) identified and developed topics for BMF Consistency.

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

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

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevate through proper channels for executive approval.

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

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

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

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

The issue can be resolved within 24 hours.

IRS takes steps within 24 hours to resolve the taxpayer’s issue.

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

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

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

The SLAs are found at TAS Service Level Agreements..

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

SSPND with Action Code 360 to route the return to Planning and Analysis (P&A).

Attach Form 4227, Intra-SC Reject or Routing Slip, (or other proper routing slip) with the notation "ID THEFT" .

Give the entire case to the manager/lead.

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.

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

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

Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and badge identification (ID Card) number.

Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

Correspondex letters- Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

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

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

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

If a return is prior to the date shown in the table, reject the record from ERS:

For non-remittance NMF items-If CC RJECT is in your profile, reject the Record with Action Code 620. If CC RJECT is not in your profile, suspend the record using CC SSPND with Action Code 620.

For the NMF item with payment, follow instructions in IRM 3.12.38, BMF General Instructions, first suspending to Accounting for research with Action Code 343 before finally rejecting from ERS and transferring to NMF or Unidentified, dependent upon instruction from Accounting.

Territory 15, International returns with and without a remittance should be processed using the instructions in IRM 3.12.38, BMF General Instructions.

The Error Inventory Report is generated at the beginning of each day to show the blocks by the block control number and block document locator number (DLN) in numerical order. Each batch will be on separate pages. 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.

Each day the Workable Suspense Inventory Report will be furnished showing the records by Program in Document Locator Number (DLN) order for various statuses. Separate pages with totals for each program will be provided.

The report will show the number of working days the records have been in the Workable Suspense Inventory. This is on the first line of the report and will allow priority to be given to the older work.

Code & Edit edits the applicable code(s) in the designated area(s) on each of the following returns:

Form 941/941(sp)/941-PR/941-SS

Form 943/943(sp)/943-PR

Form 944/944(sp)

Form 945

Form CT-1

Any changes to the name control, Employer Identification Number (EIN), or address (including the City, State or ZIP Code) on all employment returns are edited by Code & Edit above the printed location. See chart below for Code & Edit editing all Forms 941, 943, 944, 945 and CT-1 and see IRM 3.11.13, Returns and Document Analysis - Employment Tax Returns, for further details:

Field

Field Location

Computer Condition Code

Form 941, Form 941(sp)Form 941(PR), Form 941-SS. (All revisions) Directly beneath the last line in the center of the bottom margin of the return on page 1. Form 943, Form 943(sp), or Form 943(PR) (2019 and prior revisions). Directly beneath the signature line in the center of the bottom margin. (2020 and subsequent revisions) Directly beneath the last line in the center of the bottom margin of the return on page 1. Form 944, Form 944(sp), Form 944-PR, Form 944-SS (all revisions). Beneath line 14 in the center of the bottom margin. Form 945 (all revisions) Directly beneath the signature line in the center of the bottom margin. Form CT-1 (2019 and prior revisions). Directly beneath the signature line in the center of the bottom margin. (2020 and subsequent revisions) Directly beneath the last line in the center of the bottom margin of the return on page 1.

Received Date

All returns - Body of the return

Schedule Indicator Code (SIC)

Form 941, Form 941(sp), Form 941-PR, Form 941-SS (All revisions) On the right margin, opposite the dark Part I line. Form 943, Form 943(sp), or Form 943-PR (all revisions). On the right margin opposite line 1. Form 944, Form 944(sp) (all revisions). On the right margin opposite line 1. Form 945 (all revisions). On the right margin opposite line "A" . Form CT-1 (all revisions) SIC is not edited on the form.

ERS Action Code

All returns - On the bottom margin in the left corner.

Tax Period

Form 941, Form 941(sp), Form 941(PR), Form 941-SS (All revisions) Above the "Report for this Quarter." box to the right of the entity. Forms 943, Form 943(sp), or Form 943(PR) (all revisions). Located in the entity portion of the return on the upper right side. Form 944, Form 944(sp) (all revisions). Above the "Who Must File Form 944" box to the right of the entity. Form 945 (all revisions) Located in the entity portion of the return on the upper right side. Form CT-1 (all revisions) Located in the entity portion of the return on the lower right side.

Third Party Designee (when the "YES" box is checked)

No editing is needed.

Paid Preparer's Tax Identification Number (PTIN)

All returns - As needed, in the designated box at the bottom of the return beneath the taxpayer's signature.

Paid Preparer's EIN

All returns - As needed, in the designated box at the bottom of the return beneath the taxpayer's signature.

Paid Preparer's Telephone Number

All returns - As needed, in the designated box at the bottom of the return beneath the taxpayer's signature.

All returns must be in the current processing years acceptable line format, for Service Center Recognition/Image Processing System (SCRIPS) or Integrated Submission and Remittance Processing (ISRP) processing, as a Rev 2005 and subsequent.

All lines with amount entries should be edited in dollars and cents.

ERS tax examiners will leave a working trail on BMF returns for the following:

Employer Identification Number (EIN)

Taxpayer Notice Code (TPNC) 90,

Tax Period

Computer Condition Code (CCC)

Received Date

Any non-suspense correspondence letters (3875C, 086C, etc.)

To indicate to data capture (SCRIPS or ISRP) a correction, change, or deletion of a line entry, Code and Edit shows next to the line the assigned edit mark for the action they are trying to perform.

ISRP processes Form 941 returns with attachments (other than Form 941, Schedule B), delinquent Form 941 returns, returns with foreign addresses, form revisions 2004 and prior, all Form 941-PR or Form 941-SS returns (through OSPC only), Form 941(sp), Form 943, Form 943(sp), Form 943-PR, Form 944, Form 944(sp), Form 944-SS, Form 945, and Form CT-1 returns.

SCRIPS processes Form 941 returns for all form year Revisions 2005 and subsequent, forms with or without attachments (other than Form 941, Schedule B), returns with 941 Schedule R attached, delinquent Form 941 returns.

Error Resolution examiners must be able to comprehend any edited changes shown on a return. The tables below show the current acceptable edit marks on employment returns, and their meaning.

CODE and EDIT ----- EDIT MARK DESCRIPTION For Form 941 (Rev 2005 and subsequent) processed through SCRIPS If return shows a foreign address, use the ISRP edit marks as shown below:

Edit Mark

Description

Asterisk

Inside the Entity Area Only: Used to show a change to the Employee Identification Number (EIN). Outside the Entity Only: Used to delete tax data or to indicate that an item is not to be transcribed. Note: The asterisk must be placed to the left of the entry, and as close as possible to the entry.

Circle

Used to delete a received date only.

Line-through

Inside the Entity Area only: Use to delete data.

Unless otherwise specified, a line-through should always be a horizontal line.

Underline

Used to identify a name control, or to indicate that a received date, (other than an IRS stamped date), is to be transcribed.

Decimal Point

Used to indicate the separation of dollars and cents if no distinction has been made by the taxpayer.

Zero, Dash, or None

Zero, "Dash" , or "None" are considered valid entries except when specific instructions require editing of an entry.

Edit Marks Made by Other IRS Functions

Edit Marks entered by another area (e.g., Compliance or Accounts Management) are not to be re-edited, except to place the marks in the correct area.

Rocker

Used to indicate that the amount was paid with the return.

A return with remittance are now processed separately. Examiners should circle (or indicate an asterisk to the left of the rocker, if SCRIPS), any rocker on a return.

Percent Sign (%)

Used to indicate the presence of a "Care of Name" or address.

"X"

Used to delete tax data or to indicate that an item is not to be transcribed.

"/"

Used when deleting a form or schedule not being transcribed.

Arrow

Used to indicate the correct placement of a misplaced entry or may be used if the misplaced item is close to the correct line and there is no question where the entry belongs. Note: A double arrow may be used if the same figure is to be transcribed in two different places.

Vertical line or decimal point

Used to indicate the separation of dollars and cents if no distinction has been made by the taxpayer.

"c/o"

Used to show the presence of a "Care of" name or address.

When a Code and Edit examiner initiates correspondence, they are required to show Action Code 211 (or the applicable code) in the lower left-hand corner of the return. If Letter 21C is used, (Form 13195) C&E examiners are also required to notate the line number used.

For Form 941 returns, documents processed through SCRIPS will be received in ERS "unstapled" and sorted into "Perfect" (documents without attachments) and "Imperfect" (documents with attachments and/or envelopes) batches.

When pulling documents from a "Perfect" truck or batch, ensure all pages are pulled (including Schedule B, Form 8974 and Schedule R, if present).

When pulling documents from an "Imperfect" truck or batch, check the upper right corner for a seven- digit sequence number. Then, go to colored folder at the back of the gusset and pull the corresponding attachments. Staple any attachments to the return before routing.

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

This IRM will furnish the procedures to be used for resolving the displayed errors. However, there may be records where the tax examiner finds that programming has not furnished a section or Field needed to resolve an error. This should be reported to the Headquarters for correction.

The tax examiner will enter the section using Command Code (CC) GTSEC and enter the missing data.

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

Priority II (Section Errors) -An error detected by SCRIPS or ISRP displays as a Section Error, or

An alpha transcribed in a numeric Field or vice versa and a section with variable length Fields containing an erroneous size Field displays as a terminus section error.

Priority III (Field Validity Errors) -Any Field failing to meet the requirements for that Field displays as a Priority III error.

Priority IV (Error Code-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 are instances when a tax examiner may correct a higher numbered priority error causing a lower numbered priority error to display.

All records that are assigned an Action Code by the Code and Edit function will be displayed as a Priority I error. These errors and the correction procedures are explained in this section.

If the Action Code is valid, it will be placed in the Suspense Inventory.

If the Action Code is invalid, it will be placed in the Error Inventory.

The Error Screen display will show:

Document Locator Number (DLN)

Taxpayer Identification Number

Name Control

Processing Date

ERS Status Code

Command Code

The items above are displayed in the header portion of each error record. Previously assigned TPNC are also displayed in the header information.

Before making corrections to the screen display make sure:

The DLN of the screen display matches the DLN of the document.

The taxpayer's entries are on the correct lines of the tax return.

All coding and transcription for errors in each section are reviewed and corrected as needed.

All sections and fields have been transcribed.

When you make a correction to the screen display, also correct (edit) the tax return to maintain an audit trail. For others who may work with the return in the future, the editing may provide insight to the document's processing history. For each correction made to the taxpayer's figure on the return:

You will place an "X" beside the incorrect data on the return and write the correct data to the left or above it.

If the taxpayer does not have the required entry on the return completed, place an "X" beside the missing entry. Enter the correction to the left of the "X" .

If the missing information is found elsewhere on the return, edit (as required) it to the correct line.

Money Amounts: When you correct a screen display, review the screen before transmitting to ensure money amounts are being transcribed in dollars and cents.

Check the displayed Action Code for validity. Also check the return to verify that the code assigned is appropriate, and whether it has been transcribed properly. Remember to use CC GTSEC prior to clearing the data from the terminal (Action Code 001).

When the BOB Resolution function has added a document to a block by entering only the name control and taxpayer identification number (TIN), Action Code 001 will be computer generated. The remainder of the record must be entered by ERS.

Enter CC GTSEC for each record section that should contain data. Add the required data and transmit for each section.

When all of the sections have been entered, clear the Action Code by entering "C" in the Clear Code Field.

If suspense action is required, overlay the Command Code with CC SSPND and enter the correct Action Code.

If no suspense action is needed, enter "000" in the Clear Field and transmit.

Determine if the record can now be resolved with the information available. If so:

Make the corrections to the record using CC DLSEC or GTSEC.

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

If there are other errors in the record, they will be displayed.

If the error is resolved, release the document to files.

In IRM 3.12.13, general "No Reply" procedures are shown below under "Priority I Error, Action Code 21X, Correspondence." Any correspondence procedures for a specific Field or error condition are shown in the table under "Correction Procedures" or under a special subsection, "Rejects/Suspense procedures" for the specific Field error or error code condition.

If the error can't be resolved without more information or cleared:

Re-suspend with the appropriate Action Code, using CC SSPND.

Enter the new Action Code and date on both copies of the Charge-Out (Form 8161 or Form 4251).

A new Charge-Out is not issued for the re-suspended record.

Give the return with attached Charge-Outs to the Suspense Documents Unit.

A record may also require rejecting from ERS for reinput or voiding.

A record being reinput may use the same DLN or a new DLN. Notate the current Charge-Out and a new Charge-Out will be issued for the rejected document. Give the return to the Suspense Document Unit. On the screen, use the appropriate CC RJECT or NWDLN and enter the appropriate "Rejects" Action Code.

Priority I Error, Action Code 21X, Correspondence

If correspondence is being generated to secure only the signature, use Action Code 225, or for international returns, Action Code 226.

Status 321: If a reply is available, follow the instructions within the taxpayer's reply before clearing the Priority I Error. If the correspondence results in No Reply, or the correspondence is undeliverable and returned, initiate the following general procedures before clearing the Priority I Error:

If

Then

The return is claiming a refund,

Edit Computer Condition Code (CCC) 3 and CCC X. Then, continue to process.

The return is not claiming a refund,

Edit CCC 3 and continue to process.

Status 421: Follow instructions in the reply before clearing the Priority I Error.

Priority I Error, Action Code 310, Statute Control

Status 331 or 431: Document will be furnished to the tax examiner with instructions from Statute Control Unit. If the Statute Control Unit requests that the record be voided to them for non-remittance documents, use "RJECT 640" ; and for remittance (including Remittance Processing System (RPS)) documents use "NWDLN 640" and the DLN of the Payment Posting Voucher (Form 3244) applying the remittance to the year and Master File Tax (MFT) of the voided Statute document.

If the Statute Control Unit shows clearance, use CC GTSEC for Section 01 and verify the tax period in Field 01TXP. Then, enter CCC "W" in Field 01CCC for the applicable employment return. Transmit and clear the Priority I Error with the "C" Clear Code.

Priority I Error, Action Code 320, Entity Control

Status 332 or 432: Document will be furnished to the tax examiner with instructions from Entity Control. Follow instructions from Entity Control before clearing the Priority 1 Error.

Enter the correct Fields using CC GTSEC for Section 01 if the return was referred to Entity for the name control or EIN.

Priority I Error, Action Code 33X, Review/Routing to Criminal Investigation Division (CID)

Status 333 or 433: Document will have been referred to CID before distribution to a tax examiner.

If instructed to void the record to refer a Form 941, 943, 944, 945, or CT-1 to CID, use CC RJECT or NWDLN, Action Code 640, and follow CID instructions. NWDLN 640 is for voiding a return with a remittance. The new DLN is the Form 3244 DLN posting the remittance to the year and MFT of the voided document sent to CID or Unidentified Remittance File (URF) if CID instructs that the money is to be applied to the URF. Follow CID instructions before clearing a Priority I Error or continuing to process the return.

Priority I Error, Action Code 34X, Routing-Accounting

Forms 94X should be returned by Accounting when given to the tax examiner to work.

Tax examiner should follow instructions furnished by Accounting before clearing the Action Code.

Priority I Error, Action Codes 35X, KIF/MFTR/BMFOL Research

Action Code 351, Status 435 shows the Key Index File (KIF) was not available when the record was on the Error Inventory.

If

Then

Through research an EIN is found,

Enter in Field 01EIN after using CC GTSEC for Section 01.

Through research an EIN is not found,

Follow instructions in IRM 3.12.13 for referral of the document to Entity for an EIN.

Leave a working trail

Action Codes 352, 354, or 355, Status 335 or 435: If after researching you are unable to resolve, re-suspend to Entity, Action Code 320.

Action Code 353 will not be used on Form 941, unless correspondence is necessary and there is no address.

Priority I Error, Action Code 360- Other In-House Research

Status 336 or 436: Document and instructions from other area will be furnished to the tax examiner. Follow instructions furnished by other areas of the Submission Processing (SP) Campus using CC DLSEC or GTSEC before clearing Priority I Error.

Priority I Error, Action Code 410- Assistance Needed

Clear the Priority I Error with the "C" Clear Code, so that other errors in the record might display.

Priority I Error, Action Codes 420 through 460- Management Suspense

Management may direct that you work or re-suspend the record. If re-suspending, use CC SSPND and the Action Code as directed.

When instructed to work the record, clear the Priority I Error with the "C" Clear Code, so if other errors exist in the record they can be displayed.

Priority I Error, Action Code 490- System Problem

Instructions are needed from the Computer Branch through your supervisor for working. If instructions are not furnished for Status 349, you may be advised to re-suspend, using CC SSPND 490.

Once you clear Action Code 490, if no other error exists in the record, the record will go to "Good tape" . It is imperative to await instructions from the Computer Branch.

Priority I Error, Action Code 51X - Status 451 or 351

Suspend record with Action Code 51X to initiate a special search. The Charge-Out issued for missing document may be used for the initial search. It may also be used for subsequent searches by marking "Second Request" , "Third Request" , etc. on the Charge-Out returned from files.

Special search is continued as indicated in IRM 3.12.38, BMF General Instructions, until document is found, or record is rejected from ERS with Action Code 670.

If

Then

The missing document is a non-remittance document,

Use RJECT 670.

The missing document is a remittance document,

Use NWDLN 670 and the DLN of Form 3244, Payment Posting Voucher, for the payment.

You are unable to determine where the remittance should be applied,

Use NWDLN 670 URF. See IRM 3.12.38, BMF General Instructions.

Priority I Error, Action Code 6XX - Rejects

If suspended to Workable Suspense with Action Code 6XX, review the document to see if you agree with the recommended reject action. If so, delete with CC RJECT or NWDLN and the appropriate Action Code. If you determine not to delete the record, clear the Priority I Error with the Clear Code "C" deleting the Action Code so that any other errors that might exist can display.

Priority I Error, Action Code 700 - Duplicate Block DLN

Clear the Priority I Error with the "C" Clear Code so that other errors in the record might display.

Priority I Error, Action Code 900 - Unpostable Records

The literal for the Action Code 900 will include the Unpostable Code. For Action Code 900 returns, determine if the record can be resolved. If so, use CC GTSEC for the desired section(s) and make the correction(s). After all corrections are made and transmitted, enter a "C" in the Clear Field. Once the Action Code 900 is cleared, all other errors on the record will be displayed for correction. If no other errors exist, the record will clear the screen. The record has never posted to Master File.

Fields displayed will be as processed prior to being an Unpostable. The record may contain editing and transcription errors. All Clear Codes and TPNCs assigned when previously processed will have been deleted from the record and will need to be assigned again, if still applicable.

If the error on the Unpostable Record (Action Code 900) can't be resolved, re-suspend the record using CC SSPND with the appropriate Action Code. Notate the Action Code and date on the Charge-Out with explanation and send the return and Charge-Out to the Suspense Documents File.

For Action Codes 3XX -Status 33X: If circumstances should warrant re-suspending the document, (e.g., requested information is not available), the tax examiner will need to be advised to re-suspend the record, Action Code 3XX. If this situation occurs often, the suspense period should be reviewed with Headquarters.

Should the document not be available for a record on the Workable Suspense Inventory, Action Code other than 510, the Suspense Document Unit will contact the Supervisor who will conduct a special search within ERS and, if unsuccessful, indicate document missing.

The tax examiner working the record will re-suspend the record with Action Code 511 initiating a search for the document. It will be necessary to use CC ESTAB to initiate a Form 4251, Return Charge-Out, to obtain the document from Files.

If the Form 4251 comes back without the document, wait until the suspense period for Action Code 511 expires. Then, re-submit the original Form 4251, Return Charge-Out, indicating on it "SPECIAL SEARCH" and re-suspend the record with Action Code 512.

Any field that does not meet its requirement(s) will be shown as a Priority III error. Some reasons for this type of error are:

Non-alphabetical character in an alpha field,

Dollar amount exceeds maximum field length allowable,

Blank space in a numeric field,

Blank in the first position of an alpha field,

Non-numeric character in a numeric field, or

A required field is blank.

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.

When a dollar amount exceeds maximum Field length allowable, process the return as follows:

If

Then

A money amount on a return exceeds the maximum Field length allowable,

Enter the maximum amount allowable on the original return.

Recompute the tax data and enter the corrected amount(s) on the screen display and the return. DO NOT SEND A TAXPAYER NOTICE CODE.

Annotate on the original return, "Dummy Return-Prepared Due to Overflow Document."

Prepare a "Dummy Return" by computing and entering the remaining overflow money amount(s) for the appropriate Fields. Enter Entity information from the original return.

On the top of the return, write "Prepared from Overflow Return" . Copy the DLN from the original return. Enter CCC "G" in Field 01CCC. In the signature area write, "Signature on Original Return" .

Route to Receipt and Control to have the "Dummy Return" numbered and processed.

These errors will be displayed with an Error Code assigned to them for the specific error in ascending numerical order. The screen display will show the Error Code assigned and the Fields needed to make the necessary correction.

The blank "NC" will be displayed for the entry of a TPNC for all Math Error displays. Multiple TPNCs may be entered if you have multiple lines labeled "NC" .

The blank Field "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed.

The "C" Clear Code does not permit any other corrections to the record after it is transmitted to clear the screen. All errors must be resolved by eliminating the error or entering the Clear Code or a TPNC.

If an unworkable situation exists, suspend or reject the document with the appropriate Action Code.

The ERS Action Code shows that specific information is missing, suspended, or that the record is to be rejected from processing.

The code will have sufficient detail to indicate if:

Correspondence is to be sent to the taxpayer, or

Specific in-house research or action is required.

Action Code 001 will be computer generated when the BOB Resolution function has added a missing document by inputting only the TIN and the name control. Follow corrective procedures in IRM 3.12.13.5.1, for Priority l Errors.

Code and Edit tax examiners assign Action Codes to numbered returns if they determine the document is unprocessable. Unprocessable documents require more information or manual intervention for correction.

An Action Code is entered in the lower left margin of the return.

When a Code and Edit examiner initiates a Letter 21C (Form 13195) for a Form 941 which will be going through SCRIPS, (or Form 941(PR) or Form 941-SS going through ISRP), they are also required to notate the paragraph, and if appropriate, the fill in number(s) followed by the inserted fill-in information after the Action Code 211.

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

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

Only one Action Code may be assigned at a time to a record. The priority of the Action Codes will be 310, 320, 4xx, 6xx, 3xx, and 2xx.

An ERS tax examiner may enter an Action Code on a record, delete or correct an invalid code, or may overlay the present Action Code with another to re-suspend or reject the record from ERS. This is done by entering a valid Action Code with CC SSPND, RJECT or NWDLN. IRM 3.12.38, BMF General Instructions, also explains these codes.

An ERS tax examiner entering a valid Action Code with the CC SSPND will be clearing the record from the screen and placing the record in the Workable Suspense or Unworkable Suspense inventory.

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

A 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 reinput.

See Exhibit 3.12.13-36 for a list of all valid Action Codes.

An Error Code (EC) is computer generated to a record and assigned in numerical order.

Error Codes display by priority with the lowest number error codes first.

An Error Code requires that one of the following actions be taken:

Correct the invalid Field/math condition.

Assign a TPNC in the appropriate Field.

Suspend the document with the appropriate action code.

Verify and clear the error with a "C" code in the appropriate Clear Field.

The CC needed for correcting the Error Inventory and the Workable Suspense Inventory are briefly described below.

Any CC permitted by the Employees Security File will be available.

CCs are used to tell the system what function to perform.

CCs must be entered in a valid format, otherwise an error message will display.

Correct the data entered with the command code and transmit.

Command Codes

BMFOL - Used to review return filings, freeze codes, return information, transactions etc. posted to the Master File.

CRECT - Will be displayed with all error displays.

DLSEC - Used to delete a section of a record.

ENMOD - Used to research for a name control.

ERINV - Used to research a DLN or TIN on ERS.

ERVOL - Used with a Status Code to display the number of ERS records in the current Workable Inventory.

GTREC - Used to access the first error in a block in the Error Inventory or a specific record in the Workable Suspense Inventory. It can also be used to redisplay any uncorrected error.

GTRECQ - Used to retrieve and correct a record selected for quality review.

GTRECW - Used to retrieve and correct an error record which has been erroneously worked. Can be used just after a record has been worked as well as after a block has been completed. REMEMBER: GTRECW can only be used on the day that the record or block was worked.

GTSEC - Used to obtain the display of any section of a record in process.

INOLE - Used to research for a name control, filing requirement, employment code, or address.

NAMEE/NAMEB - Used to perform a search to match the data entered to information on the National Accounts Index (NAI) and returns EINs of possible matches.

NWDLN - Used to change (renumber) the DLN and MFT of the record and reject the record.

RJECT - Used to reject a record from ERS.

RTVUE/BRTVU - Used with definers to provide access to data that was either computer generated or for individual line items transcribed for most BMF returns.

SSPND - Used to enter an Action Code and place a record in suspense.

TRDBV - Used with IDRS for read only access to Individual Master File (IMF) and BMF filed tax return data received through the Electronic Filing System (ELF), Modernized E-File (MeF) and paper.

TRERS - Used as an extension of CC TRDBV and was developed for ERS processing. CC TRERS functions the same as CC TRDBV with the added ability to select a return based on the DLN of the latest CC GTREC command executed by the IDRS user without entering perimeters for the CC TRDBV command.

TRPRT - Used to generate a graphic (form image) print of an electronically filed IMF or BMF return and schedules. The print will contain original taxpayer submitted data only. No corrections or processing codes will appear on the print.

CCCs are used to identify a special condition or computation for the computer. CCCs post to the BMF Master File.

The chart below shows the applicable CCCs, their definitions and the related checks.

Codes

Definition

Validity Consistency Checks

Remarks

Returns Valid For:

B

Total Compensation present, and the social security and/or Medicare Compensation are exempt.

Total compensation Field more than ≡ ≡ ≡ ≡ ≡ (ERROR CODE 046)

CCC "B" is entered or generated if there is an indication that the reported compensation is exempt from either social security or Medicare tax. Usually, the taxpayer shows an exemption by checking the box on line 4 (Form 941, Rev 2005 and subsequent), or line 3 (Form 944, Rev 2005 and subsequent.). For example, when specific Employment Codes ("C," "F," or "G" ) are present on the entity, a declaration of law (e.g., a child under 18 years of age), or a declaration based on religious grounds, a non-profit or charity group, etc.

The taxpayer may indicate an exemption by using phrases "Mis-classified employees," "United Transportation Union," "common paymaster," "minister," "Form 4361," Form 4029 Exempt"Form 4029 applicable," "child under the age of 18 years of age," etc. Exception: If the taxpayer merely shows their profession on the signature line, it does not qualify as an explanation for claiming a social security and /or Medicare exemption.

Form 941, Form 941(sp), Form 941-PR, Form 941-SS, Form 943, Form 943(sp), Form 943-PR, Form 944, Form 944(sp) only

D

Reasonable Cause for Failure to Pay Timely

Must have Received Date (ERROR CODE 028)

CCC "D" is no longer edited by Code and Edit (see exception below) when a reason is given for the delay in filing a return timely. Issue Letter 1382C (if Code and Edit has not done so) and continue processing the return.

Secured internally prepared returns: For Secured returns (e.g., returns notated with "Process as Original" with an attached Form 13133) or Prepared returns (e.g., returns notated "6020(b)" or "SFR" (Substitute for Return)), enter the applicable CCC as indicated on the return and/or attached form.

All

E

Credit Election

Cannot be used with CCC "F" or "S"

Computer Generated Shows the taxpayer checked the "Apply To Next Return" box on the return.

All

F

Final Return

Cannot be used with CCC "G" or "E"

Forms 941, 941(PR), or 941-SS

Line 17, 2012 - 2013, 2017 and subsequent

Line 18, 2009 - 2011

Line 16, 2005 - 2008

Line 15, 2014 - 2016 revisions

Part 3, Page 3, 2020 and subsequent

Part 3, Page 2, 2019 and prior

All

G

Amended Return

All Forms 941, 941(PR), 941-SS, 943, 943(PR), 944, 944-PR, 944-SS, 944(SP), 945 or CT-1 returns marked (or indicating) amended, superseding, supplemental, etc., should be routed directly to Accounts Management for manual processing.

1- No other CCCs allowed, except CCC "W" or "3" (Field ERROR) 2- Must have received date (ERROR CODE 028) 3- All Fields must be blank except 01EIN, 01TXP, 01NC, 01RCD, and 01CRD.

If a return has a TC 59X on the return by Compliance, process as original.

All

J

Reasonable Cause for Failure to Make Timely Deposits

Cannot have precomputed Failure to Deposit (FTD) penalty (ERROR CODE 038)

CCC "J" will no longer be edited, if the taxpayer requests abatement for Failing to Make Timely Deposits when the return is submitted. For these returns, send the 1382C letter which will inform the taxpayer of the proper procedure to follow to request abatement, if and when a penalty is assessed.

Form 941, Form 941(sp), Form 941-PR, Form 941-SS, Form 943, Form 943(sp), Form 943-PR, Form 944, Form 944(sp) only

M

Misclassified Employees Interest Free Returns

Indicates interest free adjustments for "Misclassified Employees" at top of the return.

Form 941, Form 941(sp), Form 941-PR, Form 941-SS, Form 943, Form 943(sp), Form 943-PR, Form 944, Form 944(sp), Form CT-1 only

O

Module Freeze

Pre-Settlement Manual Refund Issued, (Form(s) 3753, Manual Refund Posting Voucher, 5792, Request for IDRS Generated Refund, or 12857, Refund Transfer Posting Voucher)

All

Q

F8974

Indicates F8974 is attached to the F941, 943 and 944.

Form 941, Form 941(sp), Form 941-PR, Form 941-SS, Form 943, Form 943(sp), Form 943-PR, Form 944, Form 944(sp), only

R

A Reasonable Cause for Failure to Timely File

Must have Received Date (Field ERROR)

• CCC "R" is no longer edited by Code and Edit (see exception below) when a reason is given for the delay in filing a return timely. Issue Letter 1382C (if Code and Edit has not done so) and continue processing the return. Exception: For Secured returns, and Prepared returns. For Secured returns (e.g., returns notated with "Process as Original" with an attached Form 13133) or, Prepared returns (e.g., returns notated "6020(b)" or "SFR" (Substitute for Return)), enter the applicable CCC indicated on the return and/or on the attached Form 13133.

All

S

Overpaid return-Application to Subsequent Quarter Not Specified

Cannot be used if CCC "E" is present

Computer Generated: Indicates that the taxpayer:

Checked the "Refunded" box on the return, or

Did not check either the "Refunded" box or the "Apply To Next Return" box on the return.

All

T

Seasonal Intermittent Filer

Seasonal filer box in Part 3, Page 2, 2019 and prior. Page 3, 2020 and subsequent.

Form 941, Form 941(sp), Form 941-PR, Form 941-SS.

W

Cleared by Statute Control

Must be present on Statute cases (ERROR CODE 001)

Statute clearance must be within 90 days of the Expiration Statute date.

All

X

Return Settlement

Generates TC 570 Freeze to hold credit

If present, Credit Elect analysis will be bypassed for Form 941.

All

Z

Scanned Paper Return in need of ERS correction

CCC "Z" is not currently valid.

CCC "Z" is used by the scanning vendors to cause returns that need correction to fall out in ERS. See IRM 3.12.13.88, Scanned Paper Returns for correction procedures.

Do not delete CCC "Z" before resolving the error condition.

None

Do not delete CCC "Z" before resolving the error condition.

3

No Reply Received-Suppress Credit Interest

Must not contain Correspondence Received Date (ERROR CODE 073)

Used to suppress credit interest when no reply is received from the taxpayer or their representative to correspondence.

All

4

Return prepared by IRS under Internal Revenue Code (IRC) 6020(b).

Cannot contain CCC R

Return will have "Prepared under 6020(b)"

All

7

Reasonable Cause Claimed-Relief Denied

1- Received date required (Field ERROR) 2- Cannot be used if CCC "D" or "R" , (ERROR CODE 028)

No longer edited by Code and Edit function.

All

8

Aggregate Return check box and Schedule R is not attached

Taxpayer marks Aggregate Return check box,

Section 3504 Agent.

Certified Professional Employer Organization (CEPO)

Other Third Party does not require Schedule R.

Form 941202603 and later, Form 943202512 and later.

When a math error involves a tax liability or balance/overpayment Field, a Taxpayer Notice Code (TPNC) is used. See Exhibit 3.12.13-37, Exhibit 3.12.13-38, or Exhibit 3.12.13-39 for valid TPNC’s for all employment tax returns.

The ERS examiner enters a two-digit code on their terminal screen after the literal "NC." This code generates an assigned explanation of the taxpayer's error or the ERS correction on the math error notice.

After determining that no other corrections to the record are needed, the TPNC is entered. The presence of a TPNC shows to the computer that no other corrections will be made to the screen display. Therefore, all corrections must be entered and transmitted for each error condition prior to TPNC assignment.

Whenever a TPNC is assigned, a written history showing the changes made must be entered on the return at the point of change.

Each Math Error has been assigned certain TPNCs which allow the examiner to clear the error. The TPNCs entered in the "NC" Field must be valid for that error or the same as one previously assigned. If a code that is not valid is assigned, the Error Code will redisplay.

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 TPNC assigned to a Math Error will be displayed with subsequent displays for the record. The Field is used for display purposes only and is not correctable.

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

TPNC 90 is a "fill-in" and should be used if more than three codes are to be assigned, or when no other TPNC fully explains the correction(s) made. Beginning in 2014 changes were made to the TPNC 90 Math Error Codes. TPNC 90 literals have been programmed into On-Line Notice Review (OLNR) Retype applications for Notice Review (NR). This addition eliminates the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs in the notices. For a full listing of the programmed TPNC 90 Math Error Codes and information on how to use the Math Error Codes see TPNC 90 Math Error Code Job Aid.

To delete a TPNC, delete the Total Tax-Taxpayer Field and then re-enter.

Once a code is transmitted to the record, it may be changed in the following manner:

Records not cleared from the terminal: If errors remain after transmitting the TPNC, you can create an error with a higher priority. This causes all "C," clear codes and any notice code already assigned on a lower priority error to be deleted from the record. TPNCs will be deleted from the header display. Beginning with the higher Priority IV error created, all subsequent Error Codes will be displayed for resolution, even though they may have been displayed previously.

A correction you make erases an Error Code which you previously cleared with a Taxpayer Notice Code or "C" Clear Code. In this case, the "C" ; or TPNC on this error and all subsequent Error Codes will be deleted. All subsequent Error Codes will be displayed for resolution, whether they were previously displayed, or not. The TPNC(s) for this error and subsequent Error Codes will be deleted from the header display.

Records which have been worked may be reworked using CC GTRECW.

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

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

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 to the record as displayed.

The ERS screen display will include a clear Field, labeled "CL" to indicate the possible need of a Clear Code. The Clear Field will always be found to the right of CRECT on the screen display.

Error Codes indicating the possible need of a Clear Code are cleared by either correcting the condition or entering a "C" to indicate no correction is needed. If corrections are required, they must be entered and transmitted prior to entry of the Clear Code "C" . Assure that all corrective procedures have been input as shown under each individual Error Code before entering a "C" in the Clear Code Field.

Clear Code "C" is also used for clearing the Action Code from the screen after corrections for the Action Code 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 presence of the "C" with a Priority I Error shows you have made the corrections to the Action Code and now wish to have any other errors on the record displayed.

The "000" is also used as a Clear Code when deleting an Action Code. It will only be used for invalid or erroneous Action Codes and when you have determined there is no reason to suspend the record. The "000" can't be used in Suspense Correction.

Programming erases all "C" Clear Codes for Error Codes:

When a record is suspended with the CC SSPND.

With Action Codes for the new day's Error Inventory and Workable Suspense Inventory. Unfinished records from the previous day will contain none of the "C" Clear Codes that were assigned to a record that was not completely worked.

Error Codes (including the ones which may require a "C" Clear Code) are numbered and displayed consecutively for correcting. There may be instances when you will create an Error Code with a higher priority than the one(s) you have cleared with a TPNC or "C" Clear Code. When this occurs:

Programming will erase all "C" Clear Codes and TPNCs for Error Codes with a lower priority than the one created.

Beginning with the higher priority Error Code you created, programming will continuously display any Error Code(s) for the record. Displays using the corrected data are apt to be different from those previously displayed.

There may be instances when you will make a correction erasing an Error Code which you previously cleared with a "C" and now the error condition no longer exists. When this occurs:

The "C" Clear Code for this error and all "C" and TPNCs for all subsequent errors in the record will be deleted.

After deleting the "C" and TPNCs, if there are errors remaining on the record, they will continue to be displayed for resolution whether or not they were previously displayed.

The "C" Clear Code will prevent any other corrections to the record to accompany the "C" Clear Code. If a correction must be entered, but you have already transmitted the "C" Clear Code, and the error is no longer displayed, use CC GTRECW to make any corrections.

Form 941 and Form 944 may be filed electronically by MeF.

Beginning with processing year 2014, Form 941, Form 943, Form 944 and 945 can be filed using the Modernized e-File (MeF) program. Form CT-1 is the only employment tax return that continues to be filed on paper only.

When forms are filed electronically, it is corrected in ERS using the same procedures as a transcribed (paper) document. Each of these returns when filed electronically have the following characteristics:

Form Type

File Location Code (FLC)

Document Code

Address Type

Which Campus

941 MeF

70/79

35/39

Domestic

KCSP

941 MeF

60

35

Foreign

OSPC

941 MeF

78

35

Domestic/US Possession

OSPC

941(PR)/941-SS MeF

78

35

Domestic/US Possession

OSPC

943 MeF

70/79

43

Domestic

KCSP

943 MeF

60

43

Foreign Address

OSPC

943/943(PR) MeF

78

43

Domestic/US Possession

OSPC

944 MeF

70/79

49

Domestic

KCSP

944 MeF

60

49

Foreign

OSPC

944 MeF

78

49

Domestic/US Possession

OSPC

945 MeF

70/79

44

Domestic

KCSP

945 MeF

60

44

Foreign

OSPC

945 MeF

78

44

Domestic/US Possession

OSPC

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

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

Action Code 341 should be input by Code and Edit to show that a manual refund is needed. If these conditions are not identified by C and E, ERS must follow the following criteria:

If

Then

The processing date is more than 20 days after received date or, the return due date (whichever is later) and the 45-day interest free period is in jeopardy and the refund amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more

Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other tax periods.

Edit Action Code 341 and route to ERS/Rejects for manual refund.

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

Enter Action Code 341 and route to ERS/Rejects for manual refund.

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

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

The Business Master File (BMF) campus cycles are:

Campus Cycle: Thursday - Wednesday

Master File Processing: Friday - Thursday

Notice Review: Saturday: Monday (8+ days)

Unpostables: New available Tuesday; Closing Tuesday

BMF transaction posting time frames are:

Transactions will be viewable using Corporate Files Online (CFOL) command codes on Saturday following the weekly Master Files processing run on Thursday.

Transactions will be viewable as posted transactions using Integrated Data Retrieval System (IDRS) command codes on Monday, following the weekly Master File processing run on Thursday.

Implementation of CADE 2 accelerated weekly IDRS analysis. Previously, transactions such as this would have been pending on IDRS and not shown in the CFOL command code displays.

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

01 = Friday

02 = Monday

03 = Tuesday

04 = Wednesday

05 = Thursday

BMF cycle posting dates on BMFOL will continue to show YYYYCC. YYYY is the year. CC is the posting cycle. BMF posting cycles in TXMOD will show a format of YYYYCCDD. The DD value is 08.

Any return with a current processing date equal to or more than two years and nine months after April 15 of the year following the year of the tax period without regard to extensions) or the received date, whichever is later, is a Statute Control document.

Error Code 001 will appear on the screen, unless CCC "W" is present. The CCC "W" shows the record has been cleared by the Statute Unit.

Any Form CT-1 with a current processing date equal to or more than two years and nine months after March 1st of the year following the year of the tax period or the original received date, whichever is later, (without regard to any extension) is a Statute Control document.

If the return has an attachment or stamp indicating a previous clearance by the Statute Control Unit within 90 days of the processing date, then enter CCC "W" in Field 01CCC.

If the return does not have an attachment or stamp as indicated in (3), then take the following action:

Treat the record as unprocessable; Suspend the record with Action Code 310 for statutory clearance.

If working the Error Inventory, return document to the block.

If working the Workable Suspense Inventory, notate the 2nd and 3rd copies of the Charge-Out with Action Code 310, and the current date. Handle the document as instructed for statutory clearance.

The due dates for employment forms are as follows:

Form

Tax Period

Due Date

941/941(sp)/941-PR/941-SS

Quarterly

April 30th July 31st October 31st January 31st (of the following year)

943/943(sp)//943-PR

Annual

January 31st (of the following year)

944/944(sp)

Annual

January 31st (of the following year)

945

Annual

January 31st (of the following year)

CT-1

Annual

Last day of the second month following the calendar year for which the return is intended

A return may be filed on or before the 10th day of the 2nd calendar month following the period if timely deposits were made in full payment of the taxes for the period. This is not applicable to Form CT-1.

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 found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

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

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

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

If there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, then see below.

Refund Claim

Ogden and Kansas City

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.

Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.

Route the copy to Ogden, Mail Stop 9001, Criminal Investigation (CI)

Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.

Continue processing the return

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:

Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.

Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.

Route the copy as shown in the table below.

CI Referral Routing

Ogden

Kansas City

Mail Stop 9001, Criminal Investigation (CI)

Mail Stop S2 9000, Criminal Investigation (CI)

Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.

Continue processing the return.

If the return fits other criteria (e.g., Frivolous Argument), take proper action.

Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.12.13-40, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

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

Frivolous Return Criteria

If

Then

The return meets any of the conditions shown as a frivolous return. See Exhibit 3.12.13-40, Potential Frivolous Arguments for Examination Review.

If the return shows Action Code 331, and has a Form 4227, Intra-SC Reject or Routing Slip, attached with the remarks "Refer to Exam FRP for audit after processing" , continue to next procedure.

Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review.

Examination has selected the return as frivolous, shown by an Action Code 331, and a Form 4227, Intra-SC Reject or Routing Slip, with the remarks "Refer to Exam FRP for audit after processing" , but send the return for processing,

Continue processing the return using procedures in IRM 3.12.13. However, do not circle or void the Action Code showing a frivolous return.

Do not consider the following returns as frivolous:

Returns that have only zeros, blanks, or no entries.

Returns showing "None" , "Not Liable" , etc.

Returns showing no evidence of a frivolous argument.

If a penalty other than a delinquency, late payment or FTD penalty is indicated on a return, (e.g., fraud, Form W-2), and the notation, "3465 Prepared" does not appear on the return:

Prepare a Form 3465, Adjustment Request, to request an assessment of the penalty.

If you are able to determine that a return remittance includes an amount applicable to all or part of the penalty referred to above, then indicate on Form 3465 the portion of the remittance available for application to the assessment.

Enter CCC "X" to freeze the refund until the assessment for penalty posts to BMF.

Note on the return, "3465 Prepared" and route Form 3465 to the Accounts Management (Adjustment) function.

The following internal forms are referred to in this section. The chart below shows the form number, form title, and use.

Form

Title

Use

941(X), 943(X), 944(X), 945(X), or CT-1(X)

Adjusted Employment Return or Claim for Refund

To request an adjustment of previously reported Compensation, tips, or withholding (i.e., Federal Income Tax Withholding or Backup Withholding)

3244

Payment Posting Voucher

To apply money

3465

Adjustment Request

To request transfer of credits and money received as remittances

3696

IDRS Correspondence Action Sheet

To initiate correspondence to the taxpayer through the Typing Unit or IDRS

3893

Re Entry Document Control

To identify a block or a partial block of documents which require reprocessing

4227

Intra -SC Reject or Routing Slip

To identify the reason for using the Action Code

8161

ERS Return Charge-Out

To charge out returns on the Suspense List, Rejected Records List and Duplicate Document DLN Register. Input Perfection Branch will also use as a routing slip and history item.

13195

Form 941, 943, 944, 945 Correspondence Sheet

To initiate Letter 21C correspondence to the taxpayer through IDRS

13596

Reprocessing Return

Form is used by Accounts Management resubmitting incorrectly processed returns

If the taxpayer writes a question or requests assistance on the return itself, make a photocopy of the question/request and the taxpayer's EIN, name and address. Route this information to the proper function.

If unrelated, unanswered taxpayer correspondence is attached to any return, and there is no action indicated on the return for the taxpayer correspondence whether it is an ERS document or not, then detach the correspondence and forward to Accounts Management. Be sure any attachment or photocopy of an attachment, except Schedule B, that is routed has the taxpayer's name, address, EIN, and received date. Enter the required information, if missing.

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

Do not correspond for information on any return "Prepared by Examination" or 599 return. If unprocessable, treat as a no reply case and follow "no reply" procedures.

Most correspondence is a computer-based notice, or a computer generated letter, or a pre-printed letter. All correspondence now reflects a response period within 30 days and the consequences for no reply.

As an ERS tax examiner initiating correspondence, you may:

Use the IDRS Correspondence feature CC LETER which will be available, or

Initiate correspondence by using a Correspondence Action Sheet (Form 13195) as is currently done for the IDRS operator or typist in issuing the actual correspondence.

Review document prior to issuing correspondence to ensure all needed information (including a signature) is requested the first time. Check CC BMFOLI to ensure the return is not a duplicate return prior to corresponding.

If the return is posted use CC BRTVU or BMFOLR to see if the return is a duplicate. If it is SSPND 640 to have the return deleted.

If it does not match the posted return, enter CCC "G" and continue processing the return as an amended return.

When taxpayer errors are discovered in processing which have caused or will cause processing delays and no other notification is to be sent to the taxpayer, advise the taxpayer of the reasons for the delay.

If the call for action has not been completed in 30 days, an interim reply will be made telling the taxpayer when we expect to complete the required action.

Correspondence Imaging Inventory (CII) is an inventory system for scanning all Accounts Management (AM) receipts (including Form 941c and Form 941-X) into digital images and working the cases from those images.

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

Follow the correspondence instructions below for "CII" returns:

CII Return Correspondence Criteria

If

And

Then

The "CII" return has a Form 13596, Reprocessing Returns attached,

The return is incomplete (i.e., missing signature, schedules or forms)

Do not correspond.

Remove the return from the batch and SSPND 640 to have the DLN voided.

Attach Form 4227, Intra SC Reject or Routing Slip, (or other proper routing slip) to the return and route to AM to secure missing information.

If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information. Indicate "More information needed to process incomplete CII return," or similar language on Form 4227 (or other proper routing slip).

The "CII" return has a Form 13596, Reprocessing Returns, attached and the return is incomplete (e.g., missing signature, schedules, or forms),

The return shows correspondence was sent (e.g., CCC "3" is edited on the return),

Do not route the return to AM. Continue processing the return.

The "CII" return does not have a Form 13596 attached,

The return is incomplete, (i.e., missing signature, schedules or forms),

Research for prior posting (TC 150 posted)

If TC 150 present and the information is the same, cancel the DLN and treat as classified waste.

If TC 150 is not present, follow normal correspondence procedures

If there is an indication on the return that correspondence has been sent (e.g., CCC 3 is edited on the return), do not route return to AM. Continue processing return.

A signature and jurat is required on all returns except:

Returns prepared under Internal Revenue Code IRC 6020(b). These returns must be signed by a Compliance function representative. If not signed, route the return to Rejects to have the DLN extracted. Then, send the return to: Internal Revenue Service 2970 Market St. Mail Stop 5- EO4.114 Philadelphia, PA 19104

Returns prepared by Examination, for example "SFR" (Substitute For Return) or "Substitute Return"

Returns secured by Examination do require a signature and jurat.

Dummy returns prepared by IRS.

Returns filed under IRC 501(d) (Religious or Apostolic Organization).

A blank return with a CP139 attached (i.e., notification that Form 941 or Form 940 may no longer be required because four consecutive Form 941 tax years were received with "NO LIABILITY" )

Correspondence is attached showing that the taxpayer is responding to an IRS letter.

Taxpayer shows he/she has filed another type of return.

It appears that the taxpayer is "IRATE" because he/she has received another blank return after filing a "FINAL" return in the previous year.

Tentative returns.

Other Federal Agencies.

Computer generated returns with computer generated signatures.

Electronically filed returns may be identified by the presence of printouts in lieu of an actual return.

Returns identified with "CII Image-Do not correspond for Signature" stamped below the signature line or "CII" ("Correspondence Imaging Inventory" ) annotated on the front of the return.

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.

A check mark or "X" for the purpose to designate where the taxpayer should sign the return is not considered a valid signature.

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, and may appear in either the Sign your name here or the Print your name here boxes.

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

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

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

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

IRM 21.1.3.2.3, Required Taxpayer Authentication

IRM 21.1.3.2.4 Additional Taxpayer Authentication

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

IRM 10.5.1.6.7.2, Answering Machine or Voicemail

IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information

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

Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner (or use Form 12648, Error Correction 90 TPNC). See Exhibit 3.12.13-37, Taxpayer Notice Codes for Form 941, Exhibit 3.12.13-38, Taxpayer Notice Codes for Forms 943, 944 and 945, and Exhibit 3.12.13-39, Taxpayer Notice Codes for Form CT-1, for more information.

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

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

Employer Identification Number (EIN)

Tax Period

Computer Condition Code (CCC)

Received Date

Correspondence Received Date (CRD)

Circle out incorrect Tax Periods, Received Dates, and Employer Identification Numbers (EINs).

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

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

This section provides procedures for correcting Field errors (Priority III) for Form 941, Form 941(PR), and Form 941-SS.

Form 941, Form 941(PR), and Form 941-SS contain Sections 01, 02, 03, 04, 05, 06 and 07 under ERS. Within the introduction for each ERS Section is a table showing the Fields within that section by the Field designator, the maximum Field length, the title of the Field and the location of the Field on the Form 941, Form 941(PR), or Form 941-SS, (if applicable).

Each of the Fields 05A01 through 05A31 represents a day within the first month of the quarter. The entry within the field is the tax liability for that day.

Form 941, Form 941(PR), Form 941-SS were revised in response to the CARES ACT and other COVID-19 legislation enacted in 2021. There may be a need to revert to prior instructions if or when legislative mandates expire.

If a dollar amount exceeds the maximum length allowable within a Form 941/Form 941(PR)/Form 941-SS Field, see IRM 3.12.13.5.3, for processing procedures.

See Exhibit 3.12.13-5 for a current Form 941 with Field Designators indicated.

Form 941(PR), Planilla Para La Declaracion Trimestral del Patrono, and Form 941-SS, Employer's Quarterly Federal Tax Return-Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, U.S. Virgin Islands are filed to report social security and Medicare taxes only. These forms are filed by employers whose principal place of business is in Puerto Rico, and Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, and U.S. Virgin Islands, respectively.

Any Form 941, Form 941(PR), or Form 941-SS return with an address of any U.S. Possession below should be forwarded to OSPC for processing:

U.S. Possession

American Samoa

The Commonwealth of the Northern Mariana Islands

Puerto Rico

Federated States of Micronesia

Palau

Guam

Marshall Islands

Virgin Islands (U.S.)

Apply the Form 941 line processing procedures contained in IRM 3.12.13 when processing Form 941(PR) and Form 941-SS.

For Form 941(PR) or Form 941-SS, money amounts are not allowable in Fields 0202 (Total Compensation), 02ITW (Amount of Income Tax Withheld), 02QW (Adjustment to Withholding on Revisions prior to 2010), and 02EC (Earned Income Credit) (revisions prior to 2011). If an amount is shown in one of these Fields, it must be deleted.

Certain government agencies are empowered to collect from employers Compensation erroneously not paid to employees (or former employees). The agencies are authorized to disburse these Compensation to the employees concerned and withhold the income taxes and the employee's share of the social security or Medicare taxes. The agencies allowed to take this action are:

Department of Labor

General Accounting Office

Housing and Urban Development

National Labor Relations Board

The agencies prepare a Form 941 each quarter for the total Compensation collected from employers during that quarter. If no Compensation are collected, "No Liability" returns are to be filed. These returns may be processed as follows:

The agency will show the full Compensation on Form 941, line 5a (Rev 2005 and subsequent) and compute the full amount of tax.

For errors discovered on or after January 1, 2009, a Form 941-X should be prepared for any adjustment to the taxable social security and/or Medicare Compensation previously reported on Form 941. Repeat the same steps for the Federal Income Tax Withholding amount. The explanation on Form 941-X, should indicate the name of the agency and the Act which authorized them to collect and pay back Compensation. The Form 941-X will be stamped, "Do Not Transmit to SSA" .

The agency also creates two copies of Form 941-X for each employer involved showing the employer's address and EIN. These Form 941-Xs are sent to the Accounts Management (AM) function servicing the area in which the employer is found. These forms are used to notify the employers of their liability for the employer share of social security and Medicare to make necessary adjustments. If the employer copies of the Form 941-Xs are attached to Form 941, detach and send the Form 941-X to the AM for processing.

All editing on Forms 941 (Rev 2005 and subsequent) will be shown in the same location on the return unless otherwise noted below:

Field Designator

Field Length

Title of Field

Location on Return

01NC

4

Name Control

Entity Portion

For procedures regarding a "Care of Name" , see Field 04CON.

01EIN

9

Employer Identification Number

Entity Portion

01TXP

6

Tax Period

Entity Portion Above the "Report for this Quarter" box, to the right of the entity in YYMM format.

The Field is "YYYYMM" , but the first two digits for the century appear/generate on ISRP or SCRIPS. Thus, only the last 4 characters ("YYMM" ) are edited.

01RCD

8

Received Date

Face of the return

01CCC

10

Computer Condition Codes

Directly beneath the statement "You Must complete both pages of Form 941"

01ARI

1

Aggregate Return Indicator

Right of the Aggregate Return Filers Only check box.

01SIC

1

Schedule Indicator Code

On the right margin opposite the end of line, Part I.

0101

7

Number of Employees

Line 1

01SRI

1

Form 941, Schedule R Indicator

An indicator "R" on the right margin opposite line 7, Forms 941-SS only.

01CRD

8

Correspondence Received Date

Code & Edit previously edited in the upper left corner of the return on the left margin. However, the Field is no longer edited by Code and Edit If CRD is needed by ERS, the examiner should enter the field on the display screen, and edit it in the return margin in the upper left-hand corner

01ARN

1

Applied Refund Indicator

Boxes to the right of the overpayment line.

01CBI

1

Designee Check box Indicator

Only when "Yes" box is checked

01CBP

5

Designee Check box PIN

Page 2, Part 4 - Beneath the "Designee's name and phone number" near the right-hand margin

01PSN

9, (a "P" and 8 numerical characters)

Paid Preparer's Tax Identification Number (PTIN)

Page 2, Part 5 - Alongside the "Preparer's name" near the right-hand margin.

01PEN

9

Paid Preparer's EIN

Page 2, part 5 - Alongside the "Firm's name" near the right-hand margin

01PTN

10

Paid Preparer's Telephone Number

Page 2, Part 5 - Along- side the "Firm's name" near the right-hand margin

Name Control This Field is in the entity section of the return. Each of the four positions must have a letter of the alphabet, a numeric, a hyphen, an ampersand or a blank. The method for determining the name control is found in Document 7071-A, Name Control Job Aid.

For procedures regarding a "Care of Name" , see Field 04CON.

Invalid Conditions The name control Field is invalid if:

The first position is not alpha or numeric.

The 2nd, 3rd or 4th is not an alpha, numeric, hyphen, ampersand or blank.

There are any intervening blanks between characters.

Correction Procedures: Check coding and transcription.

If

Then

Transcribed incorrectly,

Enter the correct name control from the return.

The name control is not available,

Initiate research to secure the name control.

If data is not available, or you are unable to determine the name control, suspend with Action Code 351.

A Rejects Unit examiner will initiate research to secure a name control.

The EIN is a number assigned by IRS for identification of a business tax account. This Field is beneath the title of the return, or in the Entity Section of the return.

Invalid Conditions: The EIN is invalid if:

It is not numeric.

It is less than nine characters.

The first two digits are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, 80, or 89.

It is all zeros or all nines.

Correction Procedures: Check the Field with the return.

If

Then

Transcribed incorrectly,

Enter the correct EIN from the return.

The EIN was transcribed correctly,

1 - Search the return or attachments for a valid EIN. 2 - If found, enter the correct number. 3 - Issue Letter 3875C as a non-suspense letter to the address on the return.

Do not send Letter 3875C if three or less digits of the EIN are transposed, different, or missing, or when CC INOLES shows the account has been "merged to" or "merged from" or when the taxpayer uses an SSN number on a BMF return, and your research has determined there is no entity on Master File with that number sequentially entered in EIN format.

A correct number can't be determined from the return,

1 - Research IDRS for the correct number. 2 - If found, enter the correct number. 3 - Issue Letter 3875C as a non-suspense letter to the address on the return.

Do not send Letter 3875C if three or less digits of the EIN are transposed, different, or missing, or when CC INOLES shows the account has been "merged to" or "merged from" or when the taxpayer uses an SSN number on a BMF return, and your research has determined there is no entity on Master File with that number sequentially entered in EIN format.

More than one number is found, or if unable to determine a valid EIN,

1 - Suspend with Action Code 320 for referral to Entity Control. 2 - If an EIN is assigned by Entity Control, it should be notated in the left margin with an assignment date in MMDDYYYY format, and the Entity TE’s IDRS number.

This Field is shown in the entity section or upper portion of the return. For example, on Form 941, Rev 2005 and subsequent, the tax period is edited above the "Report for this Quarter" box positioned to the right of the entity. It is always shown in "YYYYMM" order (e.g., "202209" for the third quarter of 2022, ending September 30).

Invalid Conditions: This Field is invalid if:

It is not all numeric,

It is less than the Automated Data Processing (ADP) date of 196203 or greater than the process date,

It is all blank.

Correction Procedures: Check the return and/or attachments for the correct tax period.

If

Then

Transcribed incorrectly,

Enter the correct tax period from the return.

The return is for a Non-ADP tax period,

Reject (RJECT) or suspend (SSPND) the record with Action Code 620. Refer to IRM 3.12.13.2.6, Non-ADP Returns.

The return is for a tax period greater than the process date, (e.g., early filed return)

Suspend (SSPND) the record with Action Code 480. Note: Form 941 returns may be processed during any month in a quarter for which the return is intended.

There are multiple tax periods,

1 - Treat as un-processable and initiate correspondence for clarification of the tax period (or tax periods). Suspend with the appropriate Action Code (21X). 2 - If you receive a reply, process to the applicable tax period (or tax periods).

If the return or the taxpayer's reply shows it should be treated as a final return, delete the received date and enter CCC "F" in Field 01CCC and in the center of the bottom margin of the return.

the multiple tax periods are future tax periods, process the return to the earliest tax period.

the multiple tax periods are prior tax periods, process the return to the latest tax period.

The tax period can't be determined, or is not shown on the return,

Enter the current quarter being processed as the tax period.

This field is date stamped or edited on the face of the return. It is required on all returns, if the return is delinquent, amended, or has a CCC "D" , "G" , "R" or "7" . If all the positions in the Field are blank, it would not cause an invalid condition.

Form 941 (Rev 2005 and subsequent) returns processed through SCRIPS will be assigned a received date consisting of the Century Digit of “20” followed by 990909 (20990909), if the entry is missing, or illegible.

Invalid Conditions: This Field is invalid if:

Not in "YYYYMMDD" format.

Prior to 19620101.

Later than the current processing date, or

Not within the valid month, day range of the table below.

If processed prior to the ending date of the current quarter.

Form 941 is received on March 4, 2026, for the first quarter 2026.

Month

Day

01

01-31

02

01-28 (29 in leap year)

03

01-31

04

01-30

05

01-31

06

01-30

07

01-31

08

01-31

09

01-30

10

01-31

11

01-30

12

01-31

Correction Procedures: Compare the screen display with the return.

If

Then

Transcribed incorrectly,

Enter the correct received date from the return to Field 01RCD.

Received before the end of the quarter or period - this is a timely filed tax return.

Enter the correct received date in Field 01RCD.

The Received Date is not stamped on the return, or a valid handwritten received date is not present.

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

Earliest legible U.S. Post Office, Private Delivery Service, or foreign postmark

If an envelope is not attached, use the postmark date stamped on the face of the return.

A private metered postmark is to be considered timely if received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Service Center Automated Processing System (SCAMPS) digital dates

Revenue Officer's or other IRS official's signature date.

Signature date, if within the current year (unless other information shows signature date is invalid).

DLN Julian Date less 10 days

The received date is invalid and it appears that the incorrect year was used (e.g., 20250116 instead of 20260116), and other information (Julian date, postmark date, and/or signature date) shows the received date should be a current year,

Change the received date year to the current year.

Multiple dates are on the return,

Use the earliest date. Circle out all other received dates.

This Field is on Form 941, Form 941(PR), or Form 941-SS below last line of page 1 in the center of the bottom margin of the return. Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. See IRM 3.12.13.9 for a description of each of the codes and their use.

Invalid Conditions-This Field is invalid if:

The entry is other than "B, C, D, E, F, G, J, M, O, Q, R, S, T, W, X, X, 3, 4 or 7."

CCC "Z" is invalid and is used with scanned paper returns to cause fallout for ERS correction. See IRM 3.12.13.88, Scanned Paper Returns for correction procedures. Do not delete CCC "Z" until the underlying error condition is addressed.

CCC "G" is present and any other CCC except "W" or "3" is present.

CCC "E" and "F" are used together.

CCC "E" and "S" are used together.

CCC "7" is present and CCC "D" and "R" are present.

CCC "4" is present and CCC "R" is present.

Correction Procedures: Check the screen display with the return.

If

Then

Other CCCs are present with the "W" , "3" , and "G" Code,

1 - Delete the other codes, if the CCC "G" is needed. 2 - If the CCC "G" is not needed, delete it and leave the other codes. Review all sections and input data where necessary.

CCC "E" is present with CCC "F" ,

1 - Review the return for an indication by the taxpayer that the return was final. 2 - Determine which is correct and delete the incorrect CCC.

CCC "D" and "R" are present with CCC "7" ,

Determine which is correct and delete the incorrect CCC.

Both CCC "4" and "R" are present,

Determine which is correct and delete the other.

The F8974 is attached to the Form 941, Form 941(sp), Form 941-PR, Form 941-SS, Form 943, Form 943(sp), Form 943-PR, Form 944, or Form 944(sp).

Edit the CCC "Q"

The taxpayer did not respond to the request to send the F8974

Delete the CCC "Q"

The taxpayer has checked the "Seasonal Filer" box in Part 3, Form 941

Enter the CCC "T" .

The taxpayer has checked the "Final Return" box and the "Seasonal Filer" box in Part 3, Form 941.

Enter CCC "T" only.

None of the conditions above apply,

Delete the code(s).

This Field is on Form 941, Form 941-SS page 1 below “Report for the Quarter of 2026” check box.

Invalid Conditions - This Field is invalid if:

The entry is other than "0, 1, 2, or 3"

The tax period is before 202603 Form 941 or before 202512 Form 943.

Correction Procedures:

Correct Coding and Transcription.

Blank or No Schedule R is attached, enter "0" in Field 01ARI.

Section 3504 Agent is checked, enter "1" in Field 01ARI.

Certified Professional Employer Organization (CPEO) is checked, enter "2" in Field 01ARI.

Other Third Party is checked, enter "3" in field 01ARI

If

Then

Multiple Boxes or No Box is checked and Schedule R is attached,

Edit from the Check Box of the Schedule R.

Multiple Boxes or No Box is checked and Schedule R is attached with Multiple or No Boxes Checked and there is no indication Code and Edit initiated correspondence,

Correspond with the taxpayer for clarification.

Any Box or Multiple Boxes are checked and Schedule R is NOT attached, and there is no indication Code and Edit initiated correspondence,

Correspond with the taxpayer for clarification.

Do not correspond for missing Schedule R if “Other Third Party” is checked, Schedule R is not required.

This Field is on Form 941, Form 941(PR), or Form 941-SS (Rev 2005 and subsequent) in the right margin opposite the end of the line for Part 1.

The Schedule Indicator Code (SIC) is used to notify the computer that the Record of Federal Tax Liability (ROFTL) is blank, incomplete, outside the tolerance or the total tax is ≡ ≡ ≡ ≡ ≡ ≡ or less.

Invalid Conditions: This Field will be invalid if it is other than blank, 1, 2, or 3.

Correction Procedures: Compare the screen display with the return.

If

Then

Transcribed incorrectly,

Enter the correct SIC from the return.

The code should not be present on the return,

Delete the entry.

This Field is entered on line 1, Form 941, Form 941(PR) or Form 941-SS (Rev 2005 and subsequent) returns. This Field is now required for each quarter a return is filed.

Invalid Condition: The Field is invalid if it is not all numeric.

Correction Procedures: Compare the screen display with the return.

If

Then

Transcribed incorrectly,

Enter the correct entry from the return.

Blank and nothing indicated on an attachment,

Enter a "1" in Field 0101 if any tax is reported on the form.

This Field is used to indicate that a Form 941, Schedule R, "Allocation Schedule for Aggregate Form 941 Filers" was attached to the Form 941 when filed.

The Schedule R is filed by an individual or entity who has previously filed Form 2678, and is filing one Form 941 return under his own EIN for two or more unrelated parties under IRC 3504.

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

When Form 941, 941(PR), or 941-SS is filed with a Schedule R attached, Code and Edit will edit an "R" opposite line 7 on the right-hand margin.

Invalid Conditions: This Field is invalid if any character other than "R" is present.

Correction Procedures: Compare the screen display with the return.

If

Then

A character other than "R" is present,

Delete the entry.

The Correspondence Received Date (CRD) should be present when returns have been held in Suspense and the reply is received after the Return Due Date.

If a Field error generates due to a previously edited CRD, follow the correction procedures below.

Invalid Conditions:

Not numeric.

Less than 8 numerics.

Not in "YYYYMMDD" format.

Not in the valid month or day range.

The same as, or prior to, the return due date.

Greater than the current date.

Correction Procedures: Compare the screen display with the return.

If

Then

Transcribed incorrectly,

Enter the correct CRD from the correspondence.

The taxpayer reply is by fax,

Use the following priority to determine the CRD:

Correspondence Received Date

Date the reply was faxed,

Date entered on the fax cover sheet by taxpayer

Current date

The taxpayer replies (other than fax),

Use the following priority order to determine the CRD:

Correspondence Received Date

Postmark date on the reply envelope

Current date.

The date is illegible,

Check the attached correspondence which bears a received date stamp

More than one CRD is stamped or written,

Use the CRD that made the return processable. Line out all other CRDs.

A date can't be determined,

Use current date minus 10 days.

There was no reply from the taxpayer,

Enter a "3" in the CCC Field.

Error Code 034 generates after input of 01CRD,

Then see instructions below for correcting or IRM 3.12.38.5.1.7, Correspondence Received Date (CRD), for instructions.

This Field is on Form 941, Form 941(PR), and Form 941-SS, under the overpayment line.

This Field is used to indicate whether the taxpayer has elected to treat an overpayment as a credit elect to the next tax period or as a refund. ISRP enters a "2" if the "Refund" box has an entry on a Form 941, Form 941(PR), or Form 941-SS.

Invalid Condition: This Field is invalid if it is:

Not blank, or

An entry other than "2" .

Correction Procedures: Compare the screen display and the return.

If

Then

Transcribed incorrectly, or an invalid code is present,

Correct the entry from the return. The proper codes are: •"2" -"Refund" box is checked. •"blank" -Neither box is checked, or both the "Applied to next return" and "Refund" boxes are checked, or the "Applied to next return" box is checked.

The Designee check box Field on Form 941, Form 941(PR), and Form 941-SS is on page 2, Part 4 along the left-hand margin. The Field consists of 2 boxes, "YES" and "NO" .

If the taxpayer checks the "Yes" box, ISRP or SCRIPS will enter a "1" . An entry to both boxes or only the "NO" box is not transcribed.

There are validity checks on the Field, but the Field is not correctable.

Invalid Conditions: If the value is other than "1" or blank.

Correction Procedures: Compare the screen display and the return.

If

Then

The value is other than "1" or blank,

Delete the Field 01CBI and continue processing.

The Field is on Form 941, Form 941(PR), or Form 941-SS on page 2 (2005 - 2019) or page 3 (2020 and subsequent) in Part 4 on the right side below the Designee name and phone number.

The Third Party Designee Identifying Number is comprised of any 5 alphas (i.e., "A" to "Z" ), numeric (e.g., "0" to "9" ), or any combination of, characters chosen at random by the taxpayer or the taxpayer's representative.

The Third Party Designee Identifying Number is only for the tax period of the return on which it appears. On all future filings, the taxpayer can keep the same PIN number or change the PIN number.

The Paid Preparer's Tax Identification Number (PTIN) is at the bottom of page 2 of Form 941 along the right-hand margin.

Data may or may not be present in Field 01PSN.

Valid characters are all blank, all numeric or with the alpha "P" in the first character position followed by eight numeric characters.

The first character in a PTIN as a Tax Identification Number (TIN) must be with the alpha "P" . The range for a valid PTIN (as a TIN) is P00000001 through P99999998. A "P" followed by all zeroes or all nines is not valid.

Invalid Conditions: The Field is invalid if:

The nine characters are all zeroes or nines.

The nine characters are not a "P" followed by 8 numeric characters.

Correction Procedures: If the PTIN on the return is invalid, do not attempt to correct the return information. Delete Field 01PSN.

The Preparer's EIN is at the bottom of Page 2 (2005 - 2019) or Page 3 (2020 and subsequent), lower right-hand side, above the Preparer's phone number on Form 941, Form 941(PR) or Form 941-SS.

Invalid Conditions: The Preparer's EIN must be a nine-digit number. This Field is invalid if:

The EIN is all zeroes or all nines.

The first two digits are invalid for Field 01EIN, See IRM 3.12.13.25.2.

Correction Procedures: If the Preparer EIN on the return is invalid, do not attempt to correct the information. Delete Field 01PEN.

The Preparer's Telephone Number (PTN) is on page 2 (2005 - 2019) or Page 3 (2020 and subsequent), below Part 5 of Form 941, Form 941(PR), or Form 941-SS.

The Paid Preparer's Telephone Number should be shown as 10 characters. Only numerical characters (e.g., 0 through 9) are valid for this Field.

If the Paid Preparer's Telephone Number is incomplete, illegible, or less than 10 digits review the return and attachments. If unable to determine a complete or legible Paid Preparer's Telephone Number, delete the Field from the display screen.

If the Paid Preparer's Telephone Number has more than 10 digits, only the first 10 digits will be captured.

Correction Procedures: Compare the screen display with the return.

If

Then

The Paid Preparer's Telephone Number is incomplete, illegible, or less than 10 digits,

1- Review the return and attachments for a complete telephone number. 2- If a number can't be found, delete the Field on the screen display. -If a number is found, enter the complete telephone number on the screen display.

The return is for a tax period prior to 200512,

Delete the Field. The tax period precedes the addition of the preparer telephone number to the Form 941, Form 941(PR), or Form 941-SS.

Field applicable only to Form 941

15

Wages, Tips, and Other Compensation

($)

Line 2

(+)

02ITW

Field applicable only to Form 941

14

Total Federal Income Tax Withheld

($)

Line 3

(+)

0204

1

Exempt From Social Security and Medicare Taxes Indicator

Line 4

If the box has an entry, Code and Edit was instructed to edit a CCC B on the return. ERS examiners should review Field 01CCC for a B if line 4 has an entry when Field 01CCC displays.

02SSW

14

Taxable Social Security Wages

($)

Line 5a, column 1

(+)

02SST

14

Taxable Social Security Tips

($)

Line 5b, column 1

(+)

02MED

15

Taxable Medicare Compensation and Tips

($)

Line 5c, column 1

(+)

02XMT

15

Additional Medicare Compensation and Tips Tax

($)

Line 5d column 1

(+)

2013 and subsequent

02TSM

15

Total Social Security and Medicare Tax -Taxpayer

($)

Line 5e, line 5d returns filed prior to 2013

(+)

02QTX

15

Section 3121 (q) Notice and Demand

($)

Line 5f line 5d tax periods 2011

02FP (Applicable to Form 941, tax periods 201006-201012)

7

Number of qualified employees first paid exempt Compensation/Tips beginning this quarter

Numeric

Line 6a (Applicable to Form 941, tax periods 201006-201012)

02NP (Applicable to Form 941 tax periods 201006-201012)

7

Number of qualified employees paid exempt Compensation/Tips during this quarter

Numeric

Line 6b (Applicable to Form 941 tax periods 201006-201012)

02EW

15

Exempt wages paid this quarter

($)

Line 6c

Applicable to Form 941 tax periods 201006-201012

02TW

15

Exempt wages paid this quarter x .062

($)

Line 6d

Applicable to Form 941 tax periods 201006-201012

02BA

15

Total taxes before adjustments-Taxpayer

($)

Line 6, 2014 and subsequent,

(+)

02FC

14

Current quarter’s fraction of cents

($)

Line 7, 2014 and subsequent,

(+)/(-)

02SP

14

Current quarter’s sick pay

($)

Line 8, 2014 and subsequent,

(+)/(-)

02TG

14

Current quarter’s adjustment for tips and group life insurance

($)

Line 9, 2014 and subsequent, l

(+)/(-)

02QW

15

Current year’s income tax withholding

($)

Line 7d

(+)

Valid 2005 - 2008

02QS

15

Prior quarter’s SS and Medicare taxes

($)

Line 7e

(+)

Valid 2005 - 2008

02SW

15

Special adjustment to income tax

($)

Line 7f, Prior Year

(+)

02SS

15

Special adjustment to Social Security and Medicare tax

($)

Line 7g, Prior Year

(+)

02TA (Applicable to Form 941, Form 941(PR), Form 941-SS, Rev 2005 through 201003)

15

Total adjustments amount- Taxpayer

($)

Line 10

Line 7h (Form 941, Form 941(PR), and Form 941-SS, Rev 2005 through 2008)

line 7d (Form 941, Form 941(PR) and Form 941-SS, Rev 2009 and Feb 2010)

(+)/(-)

02PTC

15

Payroll Tax Credit for increasing research - F8974

($)

Line 11a (Revision 2020 and subsequent) Line 11 (Revision 2017 and subsequent)

(+)

02TT

15

Total tax-Taxpayer

($)

Line 10 (2014 through 2016 or Line 12 (Revision 2017 and subsequent))

(+)/(-)

02DEP

15

Total deposits for quarter

($)

Line 11(Revision 2016 and prior) or Line 13 (Revision 2017 and subsequent) or 13a (04-2020 and subsequent)

(+)

02EC

15

Advance EIC payments made to employees

($)

Line 9

(+)

02CPM

15

COBRA premium assistance payments

($)

Line 12a (Valid 200903 through 201312)

(+)

02CEM

7

Number of Recipients Receiving COBRA

Numeric

Line 12b (Valid 200903 through 201312)

(+)

02MRN

7

March Number of qualified employees paid exempt Compensation/tips

Numeric

Line 12c (Prior Year)

(+)

Applicable to Form 941, Form 941(PR), and Form 941-SS for 2nd quarter (for April May June) 2010 only.

02MRW

15

Exempt wages paid employees March

($)

12d (prior year)

(+)

Valid only for 2nd quarter of 2010.

02MRT

15

Exempt wages paid employees March x .062

($)

12e (prior year)

(+)

Valid only for 2nd quarter of 2010.

02STL

15

Subtotal Tax

($)

Line 13 (2009 through 201312)

(+)

Valid for 200903 through 201312. Field is computed by adding Fields 02DEP and 02CPM. For Rev April 2010: Field is computed by adding Fields 02DEP, 02CPM, and 02MRT

02B/R

15

Balance Due/Overpayment

($)

Line 14 or 15 (Revision 2017 and subsequent) Line 12 or 13 (Revision 2014-2016),

(+)/(-)

This Field is on Form 941, line 2 and shows the total taxable Wages, tips or other compensation before any payroll deductions. The entry must be entered in dollars and cents. This Field does not apply to Form 941(PR) and Form 941-SS.

Invalid Condition: This Field is invalid if it is not all numeric.

Correction Procedures: If transcribed incorrectly, enter the correct amount from the return.

This Field is transcribed from Form 941, line 3. This entry on Form 941 is the Total Federal Income Tax Withheld (FIT) from all employees' Compensation, tips, or other taxable compensation. This Field does not apply to Form 941(PR) and Form 941-SS.

Some Wages, tips, or other compensation reported on line 2 may be exempt from federal income tax. Refer to Pub 15 Circular E, Pub 15-A, Employers' Supplemental Tax Guide, or Pub 15-B, Employers' Tax Guide to Fringe Benefits, for determining whether FIT is applicable.

The entry must be entered in dollars and cents.

The return line must be positive. Change any negative amount reported on line 3 to a positive figure.

Correction Procedures: Compare the screen and the return. Correct any transcription errors.

This Field is transcribed from Form 941, Form 941(PR) or Form 941-SS, line 4.

The taxpayer checks the box to indicate that the Compensation are not subject to social security and/or Medicare taxes.

Valid entries are "1" (check mark in the box on line 4) or blank.

If the box is checked, a "1" should appear in Field 0204 and Field 01CCC should indicate a "B" .

Always enter a Computer Condition Code B when the box on Form 941, Form 941(PR) or Form 941-SS, line 4 has an entry and Field(s) 025A, 02SST, and/or 02MED are blank.

Invalid Condition: This Field is in error if the box is not checked on line 4, or blank.

Correction Procedures: Compare the screen display with the return.

If

Then

Transcribed incorrectly,

Enter the correct value from the return.

A check mark is not present in the box on line 4, Forms 941, 941(PR) or 941-SS,

1- Delete any entry in Field 0204. 2- GTSEC 01 to check Field 01CCC for CCC B. If present, delete the "B" from the Field.

When deleting the "B" from Field 01CCC, be careful you do not delete any other CCC from that Field.

A check mark is present in the box on line 4, Forms 941, 941(PR) or 941-SS, but there is no "B" present on the return,

1- GTSEC 01 to check for a "B" in 01CCC. 2- If not present in 01CCC, enter the "B" .

If Code and Edit has edited and asterisk (*) to the left of the box on Line 4 See IRM 3.12.13.32.18 EC 046.

This field shows the reported amount of taxable social security Wages transcribed from the return.

This field is on Forms 941, 941(PR), or 941-SS, line 5a, Column 1.

The field shows the amount of Compensation paid by the employer to the employee(s) who are subject to social security tax. The tax amount includes contributions paid by both the employer and employee.

This entry is always a positive amount.

The entry is always entered in dollars and cents.

Invalid Condition: This field is in error if it is not all numeric.

Correction Procedures: Compare the screen display with the entry on the return. If transcribed incorrectly then enter the correct amount on the screen.

This field shows the reported amount of taxable social security Tips transcribed from the return.

This field is on Forms 941, 941(PR), and 941-SS, line 5b, Column 1.

Taxable Tips are reported, if applicable, on the Form 941 for each quarter.

This field is shown as dollars and cents and is always a positive amount.

Invalid Condition: This field is in error if it is not all numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field shows the reported amount of taxable Medicare Compensation and Tips transcribed from the return.

This field is on Form 941, Form 941(PR) or Form 941-SS, line 5c, Column 1. This is the amount of Compensation paid by the employer to the employee(s) who are subject to Medicare tax. The tax includes contributions paid by both the employer and employee.

This entry is entered as dollars and cents.

The entry is always a positive amount.

Invalid Condition: This field is in error if it is not all numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

Field 02XMT is transcribed from line 5d, Form 941, Form 941(PR) or Form 941-SS, for tax periods 201303 and subsequent.

This field must be positive.

The field must be in dollar and cents.

Invalid Condition: This field is in error if it is not all numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field is transcribed from Form 941, Form 941(PR) or Form 941-SS, line 5e (Revision 2013 and subsequent), line 5d (2012 and prior). This is the total amount of the social security and Medicare taxes for the taxable Compensation and tips paid by the employer to the employee(s).

The field must be positive.

The field must be in dollars and cents.

Invalid Condition: This field is invalid if the figure is not numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field is on Form 941, line 5f (2013 and subsequent), line 5e (2012 only).

When an employee doesn't report tips to the employee’s employer, the employer is not liable for its portion of the social security and Medicare taxes on the unreported tips until the IRS makes notice and demand to the employer. The employer, upon receipt of the IRS notice of demand, includes the amount on their next quarterly Form 941.

The field must be positive and valid for periods 2013 and subsequent.

The field must be in dollars and cents.

Invalid Condition: This field is invalid if the figure is not numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field is on Form 941, (Rev. April 2010), line 6a. On line 6a, the employer shows the number of qualified employees hired during the quarter indicated on the Form 941, who received their first payroll check from this employer during that quarter.

The field is only applicable to 201006 through 201012 returns.

The entry can't exceed 7 numeric characters.

The entry must be a positive number.

Invalid Condition: This field is invalid when it is negative or other than numeric.

Correction Procedures: Compare the screen display to the return.

If

Then

Transcribed incorrectly,

Enter the correct amount from the return.

The tax period of the return is earlier than 201006 or after 201012,

Delete the field as a misplaced entry.

The entry on line 02FP is a negative amount,

Treat the entry as a positive amount.

This field is on Form 941 (Rev. April 2010), line 6b. On line 6b, the employer shows the number of qualified employees (hired after March 18th, 2010) who were paid Compensation during the quarter shown on the return, which qualify to be exempt from the employer’s share of social security taxes.

The field is only applicable to 201006 thru 201012.

The entry can't exceed 7 numeric characters.

The entry must be a positive entry.

Invalid Condition: This field is invalid when it is negative or other than numeric.

Correction Procedures: Compare the screen with the return.

If

Then

Transcribed incorrectly,

Enter the correct amount from the return.

The tax period of the return is earlier than 201006 or after 201012,

Delete the field as a misplaced entry.

The entry in Field 02NP is a negative amount,

Treat the entry as a positive amount.

This field is located on Form 941, (Rev. April 2010) line 6c. On line 6c, the employer enters the total Compensation earned by the qualified employees for the quarter indicated in the “Report for this quarter of 20xx” box in the upper right-hand corner to compute the 6.2 percent social security tax credit amount.

The field is only applicable to 201006 through 201012 returns.

The entry must be in dollars and cents.

The entry cannot exceed 15 numeric characters.

The entry must be a positive amount.

Invalid Condition: This field is invalid when it is negative or other than numeric.

Correction Procedures: Compare the screen display with the return.

If

Then

Transcribed incorrectly,

Enter the correct amount from the return.

The tax period of the return is earlier than 201006 or after 201012,

Delete the field as a misplaced entry.

The entry on line 02EW is a negative amount,

Treat the entry as a positive amount.

This field is located on Form 941, (Rev April 2010), line 6d. Line 6d represents the employer's portion of the social security tax (6.2 percent) on the exempt Compensation paid to qualified employees reported on line 6c. The computed amount is treated as a credit on the return and subtracted from the computed quarterly Federal Withholding, social security and Medicare wage and tips taxes due.

The field is only applicable to 201006 through 201012 returns.

The entry must be in dollars and cents.

The entry cannot exceed 15 numeric characters.

The entry must be a positive amount.

Invalid Condition: This field is invalid when it is negative or other than numeric.

Correction Procedures: Compare the screen display against the Form 941, line 6d.

If

Then

Transcribed incorrectly,

Enter the correct amount from the return.

The tax period of the return is earlier than 201006 or later than 201012,

Delete the field as a misplaced entry.

The entry on line 6d is a negative amount,

Treat the entry as a positive amount.

This field is on Form 941, Line 6, 2012 and subsequent (Line 6e, 2011 and prior). The entry represents the total of the Federal Income Tax Withheld, social security and Medicare, and Additional Medicare taxes less the employer's portion of social security taxes on the exempt Compensation paid to qualified employees.

The entry must be in dollars and cents.

The entry can't exceed 15 numeric characters.

The entry must be a positive amount.

Invalid Condition: This field is invalid when it is other than numeric or negative.

Correction Procedures: Compare the screen display against the Form 941, line 6e.

If

Then

Transcribed incorrectly,

Enter the correct amount from the return.

The tax period of the return is earlier than 201006 or after 201012,

Delete the field as a misplaced entry.

The entry on line 02BA is a negative amount,

Treat the entry as a positive amount.

The field shows the total of the fractions of cents in the tax computation of the social security Wages and/or tips, and Medicare Compensation reported on line 5a, 5b, and 5c of the return.

This fields entry is on Forms 941, 941(PR), and 941-SS, line 7, 2011 and subsequent, Line 7a (2010 and prior).

The amount may be a positive or negative figure.

The field must be in dollars and cents.

Invalid Condition: This field is invalid if it is other than numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field represents the adjustment amount of social security and/or Medicare tax on Sick Pay.

Beginning with Form 941, Rev. April 2010 and subsequent, several sub-total lines on earlier revisions of Form 941 were eliminated to provide space for new lines. The Subtotal line which showed the combined total of the Income Tax Withholding (line 3), total social security taxes on Compensation and tips (line 5d), and Total Adjustment (line 7d, Rev Jan 2010) lines was eliminated. Thus, some Form 941 returns have been received showing that total erroneously entered to line 7b (Field 02SP). If after reviewing the return you can determine the entry is a misplaced entry, delete the entry on the display screen. If Error Code 100 generates, enter the Field 02TT> underprint amount.

This fields entry is located on Forms 941, 941(PR), and 941-SS, line 8 2011 and subsequent, Line 7b (2010 and prior).

The amount may be a positive or negative figure.

The field must be in dollars and cents.

Invalid Condition: This field is invalid if it is other than numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

The entry represents the adjustment amount of social security and/or Medicare tax on Tips or Group Term Life Insurance.

This field is located on Forms 941, 941(PR) and 941-SS, line 9 (2011 and subsequent), Line 7c (2010 and prior).

The amount may be a positive or negative figure.

The field must be in dollars and cents.

Invalid Condition: This field is invalid if it is other than numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field shows the reported amount of special adjustment to income tax transcribed from the return.

This field is located on Forms 941, 941(PR) or 941-SS, line 7f (revision 2005 through 2008).

This field is always a positive amount.

The entry is always entered in dollars and cents.

Invalid Condition: This field is in error if it is not all numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field shows the reported amount of special adjustment to social security and Medicare tax transcribed from the return.

This field is located on Forms 941, 941(PR) or 941-SS, line 7g (revision 2005 through 2008).

This field is always a positive amount.

The entry is always entered in dollars and cents.

Invalid Condition: This field is in error if it is not all numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field represents the net total of all adjustment amounts shown on a Form 941, 941(PR) or 941-SS for periods prior to 201006.

For tax period 200812 and prior the field is located on line 7h of Forms 941, 941(PR) and 941-SS, (Rev 2005 through 2008). The entry represents the total of lines 7a through 7g.

For tax year 2009 the field is located on line 7d of Forms 941, 941(PR) and 941-SS. The entry represents the total of lines 7a through 7c.

The field may be a positive or negative figure.

The field should be in dollars and cents.

Invalid Condition: This field is invalid if it is not all numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly, enter the correct amount from the return.

This field is located on Forms 941, 941(PR), and 941-SS, line 11a (revision 04-2020 and subsequent), or line 11 (revision 2017 through 01-2020).

This amount is carried forward from Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.

The field is entered in dollars and cents and will always be a positive amount.

Invalid Condition: This field is invalid if it is not all numeric.

Correction Procedures: Compare the screen display and the return.

If

Then

The payroll tax credit is not all numeric,

Delete the amount in Field 02PTC.

Transcribed incorrectly,

Enter the correct amount from the F8974, line 12 or 17 (Rev. 03-2023), or line 12 (Rev. 12-2017).

F8974 is not attached and there is no indication that Code and Edit initiated correspondence

Correspond to request the Form 8974 using Letter 21C and enter Action Code 211.

This field is located on Forms 941, 941(PR), and 941-SS, Line 8 (2010 and prior), line 10 (2014 through 2016) and on Line 12 (Revision 2017 and subsequent).

This field is always in dollars and cents.

The entry can be a positive or negative figure.

Invalid Condition: This field is invalid if it is not all numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly, enter the corrected amount from the return.

This field is located on Forms 941, 941(PR), and 941-SS, line 13a (revision 04-2020 and subsequent), line 13 (revisions 2017 through 01-2020), and line 11 (Revision 2016 and prior).

The entry is the total of the Federal Tax Deposits paid, based upon the quarterly tax liability. The entry may include an overpayment from a prior quarter which is being applied to this return.

The entry is in dollars and cents and is always a positive amount.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

This field is line 9 on Form 941 (Rev 2005 through 10/2010). This field is not applicable to Forms 941(PR) and 941-SS.

The entry in the field is the total of the Advance Earned Income Credit shown on the W-2s for all employees.

The field is entered in dollars and cents and will always be a positive amount.

Invalid Condition: This field is invalid if it is not all numeric.

Correction Procedures: Compare the screen display and the return.

If

Then

The Advance Earned Income Credit entry is not all numeric,

Delete the amount in Field 02EC on the ERS screen.

Transcribed incorrectly,

Enter the correct amount from the return.

Tax period began after 12/31/2010

Delete any entry in Field 02EC.

The field is line 12a on Forms 941, 941(PR), and 941-SS, (Rev. 200903 through 201312).

The field displays the amount of COBRA (Consolidated Omnibus Budget Reconciliation Act) premium assistance payments made by the employer for current or unemployed former individuals who are eligible for COBRA health insurance. This assistance applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010 and to premiums paid for up to 15 months.

The field entry is in dollars and cents and is a positive amount.

Invalid Condition: This field is invalid if it is not blank or all numerical.

Correction Procedures: Compare the screen display and the return.

If

Then

The field was transcribed incorrectly

Enter the correct amount from the return.

The taxpayer enters the alpha characters rather than its numeric character (writes "TWO" instead of "2" ,

Change the alpha entry to the applicable numerical character.

The tax period of the return began prior to 01/01/2009 or after 01/01/2014,

Delete the entry in Field 02CPM. Employers were allowed to claim COBRA premium assistance payments only for tax periods which began after 12/31/2008 and ended prior to 01/01/2014.

The TP has reported a negative amount on line 12a and has subtracted this amount from line 11,

Delete the amount reported as a negative and send TPNC 90 stating "We have disallowed your negative entry reported on line 12a. If you need to adjust your COBRA credits claimed from a previous period you must file Form 941-X."

The field is located on Forms 941, 941(PR), and 941-SS, line 12b (Rev 200903 through 201312). The field displays the number of individuals who qualify for the COBRA premium assistance payments being reported on the Forms 941, 941(PR), or 941-SS, line 12a (Rev 2009 and subsequent).

If Field 02CEM has a correct entry, Field 02CPM, COBRA Premium Assistance Payment, line 12a, Form 941 (Rev. 2009) must contain a numerical entry.

If Field 02CEM has an entry, and the other field is blank, error code 069 will generate.

The field can be blank or numeric, but any entry must be blank, zero, or a positive number.

Invalid Condition: This field is invalid if it is not blank or all numerical.

Correction Procedures: Compare the screen display and the return.

If

Then

The field was transcribed incorrectly,

Enter the correct amount from the return.

The taxpayer entered an alpha value for a numeric character,

Change the alpha entry to the applicable numerical character.

This field is located on Form 941, (Rev April 2010) line 12c. The employer should only complete this field when filing their Form 941 for the second quarter 2010. The employer shows the number of qualified employees paid exempt compensation or tips in the first quarter 2010.

The entry must be no more than 7 numerical characters (e.g., "0" through "9" ).

The entry must be a positive entry.

Invalid Condition: This field is invalid when it is negative or other than numeric.

Correction Procedures: Compare the screen display against Form 941, line 12c.

First, review the tax period of the return. If the tax period is other than 201006 (June 30, 2010), then delete any entry in Field(s) 02MRN, 02MRW, and/or 02MRT.

If

Then

Transcribed incorrectly,

Enter the correct amount from the return.

The entry on line 12c is a negative amount

Treat the entry as a positive entry.

There is an entry on line 12c and the return is not for the quarter 201006,

Delete the entry or entries (Fields 02MRN, 02MRW and/or 02MRT). If this is the only change to the form a Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c thru 12e. Use open paragraph X and include the following information: We did not process your request for the employer's share of social security on the exempt Compensation of employee's shown on lines 12c, 12d and/or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941X, Adjusted Employer's Quarterly Federal Tax Return.

This field is located on Form 941, (Rev April 2010) line 12d. The employer completes this line on their second quarter 2010 return to show the amount of Compensation or tips paid to qualified employees in the first quarter of 2010.

The maximum length is 14 numerical characters (e.g., “0” through “9”).

The entry must be in dollars and cents.

The entry must be a positive number.

Invalid Condition: This field is invalid when it is negative or other than numeric.

Correction Procedures: Compare the screen display against Form 941 (Rev April 2010), line 12d.

First, review the tax period of the return. If the tax period is other than 201006 (June 30, 2010), then delete any entry in Field(s) 02MRN, 02MRW, and/or 02MRT.

If

Then

Transcribed incorrectly,

Enter the correct amount from the return.

The entry on line 12d is a negative amount

Treat the entry as a positive entry.

There is an entry on line 12d and the return is not for the 201006 period

Delete the entry or entries (Fields 02MRN, 02MRW and/or 02MRT). If this is the only change to the form a Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c thru 12e. Use open paragraph X and include the following information: We did not process your request for the employer's share of social security on the exempt Compensation of employee's shown on lines 12c, 12d and/or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941X, Adjusted Employer's Quarterly Federal Tax Return.

This field is located on Form 941 (Rev. April 2010), line 12e. Line 12e shows the employer’s portion of the social security tax they paid on the qualified employee’s compensation or tips in the first quarter 2010 on Form 941. The tax is taken as a credit against the second quarter 2010 liability shown on the return. The credit amount is computed at 6.2 percent of the wage amount reported on line 12d.

The entry must be in dollars and cents.

The entry cannot exceed 15 numeric characters.

The entry must be a positive number.

Invalid Condition: This field is invalid when it is negative or other than numeric.

Correction Procedures: Compare the screen display against Form 941 (Rev. April 2010), line 12e.

If

Then

Transcribed incorrectly,

Enter the correct amount from the return.

The entry on line 12e is a negative amount,

Treat the entry as positive.

There is an entry on line 12e and the return is not for the 201006 period,

Delete any entries in Fields 02MRN, 02MRW, or 02MRT. If this is the only change to the form, Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c through 12e. Use open paragraph X and include the following information: We did not process your request for the employer’s share of social security on the exempt compensation of employees shown on lines 12c, 12d or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return.

The field is located on Forms 941, 941(PR), and 941-SS, line 13 (Rev 2009 through 201312). The field is the combined total of the Federal Tax Deposit amount (Field 02DEP) and the COBRA Premium Assistance Payments amount (Field 02CPM).

Valid field entries are blank, zero, or numerical in dollars and cents.

The field must be a positive field.

Invalid Condition: This field is invalid if it is not blank or all numerical.

Correction Procedures: Compare the screen display and the return.

If

Then

The field was transcribed incorrectly,

Enter the correct amount from the return.

The taxpayer enters an alpha value rather than its related numeric character (e.g., writes "one" instead of "1" )

Change the alpha entry to the applicable numerical character.

The field is on Forms 941, 941(PR), and 941-SS, lines 14 (Balance due) and 15a (Overpayment) (Revision 202603), lines 14 and 15 (Revision 2009 - 2025), or Line 12 and 13 (Revision 2008 and prior).

The entry is the total amount of tax due or overpaid, after application of the tax deposits.

The entry can be a positive or negative amount shown in dollars and cents.

Invalid Condition: This field is invalid if it is not all numeric.

Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

The first character of the "in-care-of" name must be alpha or numeric.

Invalid Conditions: - Field 04CON is invalid if any of the following conditions are present:

The first position is a % (percent) and the second position is not blank, or

The first position is blank, or

The first character of the "in-care-of" name is not alpha or numeric, or

There are two consecutive blanks between significant characters.

Correction Procedures:

Correct coding and transcription errors.

If

Then

A "%" (percent) is in the first position,

1- Verify there is a blank in the second position.

2- If not blank, enter a blank followed by the "in-care-of" name beginning with an alpha or numeric in Field 04CON.

A blank is in the first position,

Delete the blank.

Enter the "in-care-of" name beginning with an alpha or numeric in Field 04CON.

The first character of the "in-care-of" name is not an alpha or numeric,

Verify the "in-care-of" name on the return.

Enter the "in-care-of" name beginning with an alpha or numeric in Field 04CON.

Two consecutive blanks are present between significant characters,

Delete any unnecessary blanks in Field 04CON.

Ogden Submission Processing Center (OSPC) will process returns with foreign/ international and U.S. Possession/ Territorial addresses.

The determination of a foreign address is based only on the address of the return.

A foreign (international) address is any address not in one of the 50 U.S. states, or the District of Columbia.

All U.S. Possessions/Territories are considered foreign.

Possession/Territory

American Samoa

Federated States of Micronesia

Guam

Marshall Island

The Commonwealth of the Northern Marianna Islands

Palau

Puerto Rico

U.S. Virgin Islands

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

All returns with a foreign address must be shipped to OSPC.

SSPND 650.

Attach Form 4227 with the notation "FORWARD TO OSPC" .

Prepare Letter 86C to inform the taxpayer that the return has been sent to Ogden.

A foreign address will contain:

Street address or P.O. Box

City or town name

Other principal subdivision (i.e., province, state, county, etc.)

Postal code, if present

Foreign country

Returns with addresses in the U.S. Possessions/Territories are considered to be a foreign return for processing purposes only and are entered in the same way as domestic addresses.

A two-character alpha code must be entered in Field 04ST for the possession name.

US Possession

Abbreviation

American Samoa

AS

Federated States of Micronesia

FM

Guam

GU

Marshall Islands

MH

The Commonwealth of the Northern Marianna Islands

MP

Palau

PW

Puerto Rico

PR

Virgin Islands (U.S.)

VI

A ZIP Code must be present for a U.S. Possession/ Territory. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries for the correct ZIP Code.

Description - Field 04FAD is in the Entity Section of the return.

This field will have an entry when there is a foreign address present on the return.

Field 04FAD should not be present on "G" coded short length records.

Invalid Conditions: Field 04FAD will generate as an error when any of the following conditions are present:

The first position is blank.

Any character follows two consecutive blanks.

There are more than 35 characters present in the field.

ISRP will input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

Correction Procedures:

Correct all coding and transcription errors.

Foreign Address Correction Procedures

If

Then

Field 04FAD is present.

GTSEC 04.

Ensure Field 04CTY has a foreign country code and Field 04ST has a "." (period/space). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

Use the country code based on the province in Field 04CTY if the foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.13-42, Province/Country Code - Canada Only.

A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands but a province name is present,

Enter the province abbreviation in Field 04CT. See Exhibit 3.12.13-42, Province/Country Code - Canada Only.

A foreign address is not present on the return

1 - Verify the address on the return is not a foreign address. 2 - SSPND 610 3 - Renumber return with domestic DLN.

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

A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

Change of Address

If

And

Then

Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached,

All the following applies:

Mailing address information is the same,

No location address is on Form 8822 or Form 8822-B, Line 7,

No entry on Form 8822-B, Lines 8 or 9,

Take no action and continue processing.

Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached,

Any of the following applies:

Mailing address information is different,

Location address is on Form 8822 or Form 8822-B, Line 7,

An entry is on Form 8822-B, Lines 8 or 9,

Enter address shown on Form 8822/Form 8822-B in Field 04FAD.

Notate "Form 8822 or Form 8822-B detached" on tax return.

Detach Form 8822/Form 8822-B and route to Entity Control using Form 4227, Intra-SC Reject or Routing Slip, or follow local procedures.

Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or FORM 8822-B" .

The lead tax examiner must batch all Forms 8822 or Forms 8822-B daily and hand carry to Entity Control for expedite processing.

This field is located in the entity section of the return. This section will have data, if the taxpayer has:

Corrected the address (e.g., by using a new address), or,

Checked the change of address box and entered a new address entry, (e.g., edited an address on a label).

Always look for the Large Corporation Indicator (right below ENMOD) and if present suspend using Action Code 320 Entity Control.

If both a mailing address and a location address are present and have been changed, Section 04 will not be present as these changes will have been input through IDRS.

This section will not be present if Field 01CCC has CCC "G" .

Invalid Conditions: This field will be invalid if:

Any character other than alphabetic, numeric, blank, hyphen, or slash is present, or

Any character follows two consecutive blanks, or

If the first position is not an alpha or numeric character.

There are more than 35 characters in the field.

SCRIPS or ISRP are instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

Correction Procedures: Correct coding and transcription errors.

If

Then

The first position is blank,

All positions must be blank.

Field 04ADD is present

Fields 04CTY, 04ST, and 04ZIP must be present.

Street address is in error and/or not available, and a valid Major City Code is present,

Enter the city in Field 04CTY (spelled out, not in Major City format) and State code in Field 04ST.

A good address can't be located,

Delete the address and revert back to INOLE.

This field is located in the entity section of the return. Certain cities within each state are designated "Major Cities" and assigned a special code of two alpha characters.

ISRP or SCRIPS will enter the Major City code, as appropriate. This code represents the city within that state.

It is transcribed on the Error Record with no intervening blanks or other characters in the city-state fields.

Invalid Conditions: This field is invalid if:

The first position is blank.

Any character is present other than blank or alphabetic.

Any character follows the first two adjoining blanks.

The Major City Code does not match any of the valid codes in the Major City Code table.

Foreign country code is not valid or Field 04CTY has "XX" .

Correction Procedures: Correct any coding and transcription errors. Determine if a Major City Code is being used.

If

Then

A Major City Code is used

Field 04CTY must be present.

Field 04CTY has an error,

Check to see if the Major city code is correct.

Field 04CTY is not valid and a Major City Code can't be determined,

Input the entire city name.

A Major City Code is not used and Field 04CTY is present,

Field 04ST must be present.

A foreign address is shown on the return,

Enter correct foreign country code in Field 04CTY from Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

Field 04CTY has an incorrect country code or "XX"

Enter correct foreign country code in Field 04CTY from Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

The field is located in the entity section of the return.

Invalid Condition: This field is invalid if it is not one of the State Abbreviations, APO/DPO/FPO codes, or U.S. Possessions shown in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

Correction Procedures: Correct any coding and transcription errors. For a list of valid State Codes, see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

If

Then

Unable to perfect

DLSEC 04.

Form 8822, Change of Address is attached to the return or Form 8822-B, Change of Address or Responsible Party-Business

Compare the name control, EIN, address, City, State and ZIP Code information on the Form 8822 or 8822-B to the return.

This field is located in the entity section of the return.

Invalid Condition: This field is invalid if not all numeric or five numerics followed by four blanks.

Correction Procedures: Compare the screen display and the return.

If

Then

Transcribed incorrectly,

Enter the correct entry from the return or the attachments. Only the first five digits are required to be entered if nine digits are present.

A valid ZIP Code is not available from the return or attachments,

Research using INOLE or use Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries to determine the first 3 digits of a valid ZIP code for the Major City.

There is no record using research,

Use DLSEC 04.

The Major City is not in Document 7475, or the first 3 digits can't be determined,

1 - Enter the first 3 digits of the State shown in the address. Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for the correct digits for the State. 2 - Enter "01" for the fourth and fifth digits.

The following sections provide information concerning Form 941, Form 941(PR) and Form 941-SS, Section 05, Form 941, Schedule B. See Exhibit 3.12.13-11, for a current Form 941, Schedule B with field designators.

Field Designator

Length

Description

05A02

14

Daily Tax Liab.

05A03

14

Daily Tax Liab.

05A04

14

Daily Tax Liab.

05A05

14

Daily Tax Liab.

05A06

14

Daily Tax Liab.

05A07

14

Daily Tax Liab.

05A08

14

Daily Tax Liab.

05A09

14

Daily Tax Liab.

05A10

14

Daily Tax Liab.

05A11

14

Daily Tax Liab.

05A12

14

Daily Tax Liab.

05A13

14

Daily Tax Liab.

05A14

14

Daily Tax Liab.

05A15

14

Daily Tax Liab.

05A16

14

Daily Tax Liab.

05A17

14

Daily Tax Liab.

05A18

14

Daily Tax Liab.

05A19

14

Daily Tax Liab.

05A20

14

Daily Tax Liab.

05A21

14

Daily Tax Liab.

05A22

14

Daily Tax Liab.

05A23

14

Daily Tax Liab.

05A24

14

Daily Tax Liab.

05A25

14

Daily Tax Liab.

05A26

14

Daily Tax Liab.

05A27

14

Daily Tax Liab.

05A28

14

Daily Tax Liab.

05A29

14

Daily Tax Liab.

05A30

14

Daily Tax Liab.

05A31

14

Daily Tax Liab.

05A>

16

Total Tax Liability Month 1 (Computer Generated)

The location on the return is: Schedule B (or for Form 941(PR), Schedule B (PR)) 1st Month’s liabilities are Fields 05A01 - 05A31. 2nd Month’s liabilities are Fields 06B01 - 06B31. 3rd Month’s liabilities are Fields 07C01 - 07C31.

These fields are located on the Schedule B (or for Form 941(PR), Schedule B (PR)) and are shown as dollars and cents.

Invalid Condition:

If they are not all numeric, or

For tax periods 199303 and prior, or

If there is an entry in a field that does not correspond to a day on the calendar (e.g., in day 31 for September).

If the entry is a negative entry.

Correction Procedures: Compare the screen display against the return. Also verify the tax period.

If

Then

Transcribed incorrectly,

Enter the correct amount or tax period from the return.

There is a negative entry on any day during the month (line 1 through the last day of the month),

Review the Schedule B to determine whether the entry was captured correctly as a negative.

If the Schedule B shows the entry as a negative, blank the entry on the screen display.

If the Schedule B shows the entry not as a negative, correct the entry on the screen display.

After all corrections, transmit.

There is an entry in day 29, 30 or 31 for the month of February or an entry in day 31 for one of the following months: April, June, September or November,

1 - Move the entry into the last valid day of the month. 2 - There is an entry in that field, add the last two entries together and place the results in the last valid day.

Section 19 field designator will not appear on the error code screen if all Section 19 fields are blank..

Unless otherwise noted, all Section 19 fields are:

valid for tax periods 202006 through 202312

15 positions

transcribed in dollars and cents

positive only

Section 19 Fields

Field Designator

Field Name

Line Number

19SCS

Qualified sick leave wages

5A(i) Col 1

19SCF

Qualified family leave wages

5a(ii) Col 1

19QCS

Nonrefundable credit for sick and family leave taken before April 1, 2021

11b

19CER

Nonrefundable employee retention credit (valid 202006 - 202112)

§70605, 139 Stat. 70 was enacted on July 4, 2025. It amended parts of section 3134 of the Code applicable to the ERC for the third and fourth calendar quarters in 2021. Section 70605 prohibits the IRS from allowing ERC claims and making refunds for claims for the third and fourth quarter of 2021 (Form 941) and 202112 (Form 943, Form 944, and Form CT-1) after the date of the act, unless the claims were filed on or before January 31, 2024.

11c (Rev. 04-2020 through 06-2021)

19QAS

Nonrefundable credit for sick and family leave taken after March 31, 2021, and before October 1, 2021 (valid 202106 and subsequent)

11d

19CNA

Nonrefundable portion of COBRA credit (valid 202106 - 202203)

11e (Rev. 06-2021 only)

19CRN

Number of individuals provided COBRA assistance (7-position numeric field) (valid 202106 - 202203)

11f (Rev. 06-2021 only)

19DA

Deferred amount of social security tax (valid 202006 - 202012)

13b p/y

19RCS

Refundable credit for sick and family leave taken before April 1, 2021

13c

19RER

Refundable employee retention credit (valid 202006 - 202112)

§70605, 139 Stat. 70 was enacted on July 4, 2025. It amended parts of section 3134 of the Code applicable to the ERC for the third and fourth calendar quarters in 2021. Section 70605 prohibits the IRS from allowing ERC claims and making refunds for claims for the third and fourth quarter of 2021 (Form 941) and 202112 (Form 943, Form 944, and Form CT-1) after the date of the act, unless the claims were filed on or before January 31, 2024.

13d (Rev. 04-2020 through 06-2021)

19RAS

Refundable credit for sick and family leave taken after March 31, 2021, and before October 1, 2021 (valid 202106 and subsequent)

13e

19CRA

Refundable portion of COBRA credit (valid 202106 - 202203)

13f (Rev. 06-2021 only)

19APA

Advances from Form 7200 (valid 202006 - 202112)

13h (Rev. 04-2020 through 06-2021)

19RSI

Recovery startup indicator check box (position indicator field) (valid 202109 - 202112)

§70605, 139 Stat. 70 was enacted on July 4, 2025. It amended parts of section 3134 of the Code applicable to the ERC for the third and fourth calendar quarters in 2021. Section 70605 prohibits the IRS from allowing ERC claims and making refunds for claims for the third and fourth quarter of 2021 (Form 941) and 202112 (Form 943, Form 944, and Form CT-1) after the date of the act, unless the claims were filed on or before January 31, 2024.

18b (Rev. 06-2021 only)

19HP1

Qualified health plan expenses for sick leave

19

19HP2

Qualified health plan expenses for family leave

§70605, 139 Stat. 70 was enacted on July 4, 2025. It amended parts of section 3134 of the Code applicable to the ERC for the third and fourth calendar quarters in 2021. Section 70605 prohibits the IRS from allowing ERC claims and making refunds for claims for the third and fourth quarter of 2021 (Form 941) and 202112 (Form 943, Form 944, and Form CT-1) after the date of the act, unless the claims were filed on or before January 31, 2024.

20

19WRC

Qualified wages for the employee retention credit (valid 202006 - 202112)

Pub. L. No. 119-21 §70605, 139 Stat. 70 (2025) (commonly known as the One Big Beautiful Bill), was enacted on July 4, 2025. It amended parts of section 3134 of the Code applicable to the ERC for the third and fourth calendar quarters in 2021. Section 70605 of the One Big Beautiful Bill prohibits the IRS from allowing ERC claims and making refunds for claims for the third and fourth quarter of 2021 after the date of the act, unless the claims were filed on or before January 31, 2024.

21 (Rev. 04-2020 through 06-2021)

19HPR

Qualified health plan expenses on line 21 (valid 202006 - 202112)

22 (Rev. 04-2020 through 06-2021)

19QCA

Credit from Form 5884-C, line 11 (valid 202006 - 202103)

23 (Rev. 04-2020 through 03-2021)

19QSW

Qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021 (valid 202106 and subsequent)

23

19EMW

Qualified wages paid March 13 through March 31, 2020, for the employee retention credit (valid for 202006 only)

24 (Rev. 4-2020)

19DEE

Deferred amount of the employee share of social security tax included on line 13b (valid for 202009 and 202012 only)

24 (Rev. 7-2020)

19QHE

Qualified health plan expenses allocable to wages reported on line 23 (valid 202106 and subsequent)

24

19HPM

Qualified health plan expenses on line 24 (valid for 202006 only)

25 (Rev. 4-2020)

19CBA

Amounts under collectively bargained agreements allocable to wages reported on line 23 (valid 202106 and subsequent)

25

19QFW

Qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (valid 202106 and subsequent)

26

19HE1

Qualified health plan expenses allocable to wages reported on line 26 (valid 202106 and subsequent)

§70605, 139 Stat. 70 was enacted on July 4, 2025. It amended parts of section 3134 of the Code applicable to the ERC for the third and fourth calendar quarters in 2021. Section 70605 prohibits the IRS from allowing ERC claims and making refunds for claims for the third and fourth quarter of 2021 (Form 941) and 202112 (Form 943, Form 944, and Form CT-1) after the date of the act, unless the claims were filed on or before January 31, 2024.

27

19HE2

Amounts under collectively bargained agreements allocable to wages reported on line 26 (valid 202106 and subsequent)

28

19SNR

Reserved for future use

n/a

19SRF

Reserved for future use

n/a

19SNP

Reserved for future use

n/a

19SRP

Reserved for future use

n/a

Invalid Condition: Section 19 field errors will display if:

any field contains a non-numeric entry.

any field that is not valid for the tax period in 01TXP contains an entry.

Correction Procedures:

Correct coding and transcription errors and misplaced entries.

If any field is invalid, delete the field.

This section provides procedures for correcting consistency and math errors (Priority IV) for Form 941.

For an explanation of these errors, see IRM 3.12.13.5.4.

Whenever an error occurs due to apparent misplaced entry by the taxpayer, correct the misplaced entry.

Fields Displayed:

Error Code 001 Screen Display

Field Designator

Field Name

Length

01TXP

Tax Period

6

01RCD

Received Date

8

01CCC

Computer Condition Code

10

Invalid Conditions: Error Code 001 will generate when any of the following conditions are present:

Computer Condition Code "G" is not present - The processing date is equal to or more than 2 years and 10 months after the Return Due Date or the Received Date (whichever is later) and CCC "W" is not present.

Computer Condition Code "G" is present - The processing date is equal to or more than 2 years and 10 months after the Return Due Date and CCC "W" is not present.

"G" Coded and Non - "G" Coded Returns - The processing date is less than two years after the Return Due Date and CCC "W" is present.

Correction Procedures:

Correct all misplaced entries, coding and transcription errors.

Do not send the returns in the following table to Statute Control for clearance. Instead, do the following:

Statute Control

If

Then

Return is prepared by Compliance (e.g., IRC 6020(b)),

Return is secured by Examination/Collections, including TE/GE or TE/GE Employee Plan (EP) Exam,

Return has a Transaction Code (TC) 59X,

Return has "ICS" (Integrated Collection System) notated on the face of the return,

Return is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133, Expedite Processing Cycle, attached,

Return has a stamp indicating a previous clearance by Statute Control within the last 90 days,

Return is a 2021 or prior year original. Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2021 or prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired.

Enter "W" in Field 01CCC and on the return and continue processing.

Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

Error Code 001 Correction Procedures

If

Then

Field 01RCD is blank,

Enter the Received Date in Field 01RCD. Use the earliest date if multiple Received Dates are present.

See IRM 3.12.13.25.4, Field 01RCD - Received Date, to determine the Received Date.

CCC "W" entered incorrectly,

Delete CCC "W" from Field 01CCC.

The return has a stamp that shows a previous clearance by Statute Control within the last 90 days

Enter CCC "W" in Field 01CCC and on the return.

Do not send the return to Statute Control.

The return is not stamped by Statute Control within the last 90 days

Suspend (SSPND) with Action Code 310.

Prepare Form 4227, Intra-SC Reject or Routing Slip, to route to Statute Control.

Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures for BMF 2021 and prior year original delinquent returns to bypass AM statute clearance and be processed. In addition, any 2021 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired.

Timely filed returns for all quarters of Form 941, Form 941(PR), or Form 941-SS have the same assessment expiration date.

Suspense/Rejects Procedures:

When Statute Control returns the cleared document, enter "W" in Field 01CCC and on the return. Continue processing.

Statute Control requests a voided record, SSPND with Action Code 640.

Fields Displayed:

Error Code 002 Screen Display

Field Designator

Field Name

Length

CL

Clear Code

1

01NC

Name Control/Check Digit

4

Name Control- Computer Generated

4

01EIN

Employer Identification Number

9

01TXP

Tax Period

6

04CON

"In Care of" Name

35

04FAD

Foreign Address

35

04ADD

Street Address

35

04CTY

City

22

04ST

State

2

04ZIP

Zip Code

12

Invalid Condition: EC 002 will generate when the name control mismatched against the National Account Profile (NAP) or Entity Index File (EIF).

Correction Procedures:

Before taking any more research steps to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This ensures any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the remainder of the correction procedures.

When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the On-Line Entity (OLE) indicators correctly upon transmitting the ERS screen.

Correct all misplaced entries, coding and transcription errors.

Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

Refer to all the following research instructions in this EC before taking any action.

If Field 01NC and the Name on the return or attachments are the same but differ from the underprint in Field 01NC, research IDRS using Command Code INOLES to determine the correct Name.

If

Then

The name on the return or attachment matches the name control on INOLES,

Bring up underprint.

The name control on INOLES is different from the Name on the return or attachment,

Research IDRS using Command Code NAMEE/NAMEB for a new EIN.

If a new EIN is found, verify the name control using IDRS Command Code (CC) INOLES.

If

Then

The name control on INOLES matches the Name on the return or attachment

1- Ensure the entity information matches the return. 2- Overlay Field 01EIN with the new EIN from NAMEE/NAMEB. Enter the new EIN on the return. When the EIN is changed from the one the taxpayer used, issue Letter 3875C Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return.

Do not send Letter 3875C when: • Three or less digits of the EIN are transposed, different or missing, or • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or • INOLES shows the account has been "merged to" or "merged from" , or • The TIN on the return is the taxpayer’s SSN (check CC INOLEG).

Multiple EINs are found,

SSPND 320 to Entity Control.

Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "MULTIPLE EINS" .

INOLES shows a "Merge To" (MT) EIN,

Research the "MT" EIN on Command Code INOLES

The "MT" EIN matches the entity on the return or attachment

Enter the "MT" EIN in Field 01EIN and on the return.

Do not send Letter 3875C on "merged to" or "merged from" cases.

The "MT" EIN does not match the entity on the return or attachment,

SSPND 320 to Entity Control.

If the Name on the return or attachment does not agree with the name control on INOLES or there is an indication of a name change on Form 941, Form 941(PR), or Form 941-SS, research IDRS using Command Code ENMOD for a new name.

If

Then

The name control on ENMOD matches the Name on the return or attachment,

Enter "C" in the Clear Code Field.

The name control on ENMOD or INOLES does not match the Name on the return or attachment,

SSPND 320 to route the return to Entity Control.

Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "NO RECORD" .

If the Name change has not been made, research ENMOD for a pending TC 013.

If

Then

A pending TC 013 is present,

Enter "C" in the Clear Code Field.

A pending TC 013 is not present,

SSPND 320 to route to Entity Control.

Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "REQUEST NAME CHANGE (TC 013)" .

Suspense/Rejects Procedures:

If there is an indication that Entity has assigned an EIN to the return, determine the Entity Assignment Date.

If

Then

The Entity Assignment Date is past the Return Due Date and received date,

1. GTSEC 01. 2. Enter the Entity Assignment Date in Field 01CRD.

The Entity Assignment Date is not past the Return Due Date

Continue Processing

Research IDRS using CC BMFOL to determine if payments posted incorrectly:

If

Then

The payment posted to the wrong EIN,

1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. 2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION RELEASE FREEZE" 3. Write, "FORM 3465 PREPARED" on return to the left of the Entity section. 4. Enter CCC "X" in Field 01CCC.

The payment posted correctly,

1. Enter the correct EIN in Field 01EIN and on the return. 2. Enter "C" in the Clear Code Field

Payment can't be found,

Enter "C" in the Clear Code Field

Fields Displayed

Error Code 003 Screen Display

Field Designator

Field Name

Length

01NC

Name Control

4

01EIN

Employer Identification Number

9

Invalid Condition -Error Code 003 will generate when any of the following conditions are present:

A check digit is present but is not valid for the EIN.

The letters "E" , "G" or "M" (in check digit only) are present in Field 01NC.

Correction Procedures:

Correct all misplaced entries, coding and transcription errors.

Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

If

Then

The check digit in Field 01NC does not match the return or is not legible,

Enter the Name Control from the return in Field 01NC.

The EIN on the return is not legible,

Research IDRS using CC NAMEB/NAMEE for correct EIN.

Compare the EIN from CC NAMEB/NAMEE to the EIN on the return.

If

Then

The EIN on the form matches the EIN on NAMEB/NAMEE,

Enter Name Control from NAMEB/NAMEE in Field 01NC.

Research shows a different EIN,

Verify the EIN and name on INOLES.

Name Control on INOLES matches the name on the return or attachment,

Overlay Field 01EIN with the EIN from INOLES. Enter the EIN from CC INOLES on the return.

Issue Letter 3875C Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return.

Do not send Letter 3875C when: • Three or less digits of the EIN are transposed, different or missing, or • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or • INOLES shows the account has been "merged to" or "merged from" , or • The TIN on the return is the taxpayer's SSN (check CC INOLEG).

Unable to find an EIN or more than one EIN is found,

SSPND 320 to Entity Control.

Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "No Record of EIN" .

Suspense Correction:

Research IDRS using CC BMFOL to determine if payments posted incorrectly:

If

Then

The payment posted to the wrong EIN,

Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.

Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .

Write "FORM 3465 PREPARED" on the return, to the left of the Entity section.

Enter CCC "X" in Field 01CCC.

The payment posted to the correct EIN,

Enter the correct EIN in Field 01EIN and on the return

Payment can't be found,

Enter "C" in the Clear Code field.

Fields Displayed:

Error Code 004 Screen Display

Field Designator

Field Name

Length

CL

Clear Code

1

01NC

Name Control

4

Name Control Underprint

4

01EIN

Employer Identification Number

9

Invalid Conditions: Error Code 004 will generate when any of the following conditions are present:

The EIN is not present on the Master File (MF).

The Entity Index File (EIF) and the National Account Profile (NAP) were not accessed or were not operational, causing a blank underprint in Field 01NC.

An underprint of "XXXX" shows that there is no account on the Master File, while a blank underprint shows that the NAP has not been accessed or was not operational.

Correction Procedures:

Before taking any more research steps to resolve Error Code 004, drop the cursor to the bottom of the screen and transmit. This ensures any prior changes to the Name Control/EIN have posted to the NAP. If Error Code 004 reappears, continue with the remainder of the correction procedures.

When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators correctly upon transmitting the ERS screen.

Correct all misplaced entries, coding and transcription errors.

Compare the displayed fields with the return and any attachment. If incorrect, overlay the screen with the correct information.

Refer to all the following research instructions in this error code before taking any action.

If Field 01NC and the Name on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct Name Control.

If

Then

The Name on the return or attachment matches the name control on INOLES

Bring up the underprint.

The name control on INOLES is different from the Name on the return or attachment,

Research NAMEE/NAMEB for a new EIN.

If a new EIN is located, verify the name control using CC INOLES.

If

Then

The name control on INOLES agrees with the Name on the return or attachment,

1. Ensure the Entity information matches the return. 2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. Enter the new EIN on the return. When the EIN is changed from the one the taxpayer used, issue Letter 3875C, Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return.

Do not send Letter 3875C when: • Three or less digits of the EIN are transposed, different or missing, or • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or • INOLES shows the account has been "merged to" or "merged from" , • The TIN on the return is the taxpayer’s SSN (check CC INOLEG).

Multiple EINs are found,

1- SSPND 320 to Entity Control. 2- Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "MULTIPLE EINs" .

INOLES shows a "Merge To" (MT) EIN,

Research the "MT" EIN on INOLES

The "MT" EIN matches the entity on the return or attachment,

Enter the "MT" EIN in Field 01EIN and on the return.

The "MT" EIN does not match the entity on the return or attachment

SSPND 320 to Entity Control.

If the Name on the return or attachment does not agree with the name control on INOLES or there is an indication of the name change on Form 941, Form 941(PR), or Form 941-SS, research IDRS using Command Code ENMOD for a new name.

If

Then

The name control on ENMOD agrees with the Name on the return or attachment,

Enter a "C" in the Clear Code Field.

The name control on ENMOD or INOLES does not agree with the Name on the return or attachment,

SSPND 320 to route the return to Entity Control.

Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation ""NO RECORD" " .

If the Name change has not been made, research ENMOD for a pending TC 013.

If

Then

A pending TC 013 is present,

Enter C in the Clear Code Field.

A pending TC 013 is not present

SSPND 320 to route to Entity Control.

Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation ""REQUEST NAME CHANGE" "

Suspense Correction:

If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date.

If

Then

The Entity Assignment Date is past the Return Due Date and received date.

1- GTSEC 01 2- Enter the Entity Assignment Date in Field 01CRD.

The Entity Assignment Date is not past the Return Due Date and received date.

Continue Processing.

Research IDRS using CC BMFOL to determine if payments posted incorrectly.

If

Then

The payment posted to the wrong EIN,

1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. 2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION RELEASE FREEZE" 3. Write, "FORM 3465 PREPARED" on the return, to the left of the entity section. 4. Enter CCC "X" in Field 01CCC.

The payment posted correctly,

1. Enter the correct EIN in Field 01EIN and on the return. 2. Enter "C" in the Clear Code Field

Payment can't be found,

Enter "C" in the Clear Code Field

Fields Displayed:

Error Code 005 Screen Display

Field Designator

Field Name

Length

CL

Clear Code

1

01TXP

Tax Period

6

01RCD

Received Date

8

Invalid Condition: Error Code 005 will generate when the year-month of the processing date is later than the Tax Period plus six months and the Received Date is not present.

Correction Procedures:

Compare the displayed fields with the return and correct all misplaced entries, coding and transcription errors.

If displayed fields are correct and the return is timely filed, enter a "C" in the Clear Code field.

See IRM 3.12.38.35, Due Dates of Returns.

A Received Date must be in Field 01RCD if the return is not timely filed.

Use the earliest Received Date in Field 01RCD if there are multiple received dates on the return.

Do not use a Received Date in Field 01RCD that is before the beginning of the tax period.

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

Earliest legible Postmark Date (e.g., U.S. Postal Service, Foreign or Private Delivery Service).

Use the postmark date stamped on the face of the return, if envelope not attached.

Service Center Automated Mail Processing System (SCAMPS) digital date.

Revenue Officer's or other IRS official's signature date.

Signature date, if within the current year (unless other information shows signature date is invalid)

Julian Date of the Document Locator Number (DLN) minus 10 days.

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

Do not use the EEFax Date as the IRS Received Date.

Error Code 006 should no longer generate. If a case is received, please bring it to the attention of the HQ analyst through your P&A staff.

Fields Displayed:

Error Code 007 Screen Display

Field Designator

Field Name

Length

01TXP

Tax Period

6

01RCD

Received Date

8

01CCC

Computer Condition Code

10

Invalid Condition: Error Code 007 will generate when the received date is earlier than the first day of the tax period/year by two months or more.

Correction Procedures:

Correct all misplaced entries, coding, and transcription errors.

Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

If

Then

The Received Date is invalid and it appears that the incorrect year was used (e.g., 20250131 instead of 20260131), and other information (Julian date, postmark date, or signature date) shows that the received date should be a current year,

Change the Received Date year to the current year in Field 01RCD.

The return is an early filed "Final" return

1. Review the Tax Period on the return. If the day the examiner is resolving the error condition is at least the first day or later into the Tax Period quarter shown on the return and make sure CCC F is entered. 2. If the Received Date is prior to the quarter beginning SSPND 480 Early File.

Form 941 returns showing the December quarter can be processed beginning October 1. It is the first day of the October through December quarter.

The return is not an early filed "Final" return (e.g., transcription error in tax period or year of the received date, etc.),

The Tax Period ending is less than four months after the Received date, SSPND 480 Early Filed.

The Tax period ending is more than four months after the Received Date, initiate correspondence for clarification of tax period. SSPND 211.

Delete the "F" in Field 01CCC and circle it on the return.

It appears the return is timely filed,

Check the signature and Julian date and determine if they agree with the timely filing.

Change the received date to 00000000.

The return is for the current quarter, but not timely filed (e.g., Julian date supports a non-timely filing),

Follow received date procedures and input the Julian date minus 10 days.

There is no clear indication that the return is final,

Treat as unprocessable and initiate correspondence for clarification of the tax period. Suspend in Action Code 211.

Suspense Correction:

For responses to correspondence, follow the If/Then table.

If

Then

The taxpayer replies that the return is an early filed "Final" return,

Review the Tax Period on the return. If the day the examiner is resolving the error condition is at least the first day or later of the Tax Period shown on the return, delete the received date and make sure CCC "F" is entered. Continue to process.

Form 941 returns showing the December quarter can be processed beginning October 1. It is the first day of the October through December quarter.

The taxpayer replies that the return is not an early filed "Final" return (e.g., transcription error in tax period or year of the received date, etc.),

Delete the received date on the screen and circle the received date on the return. Also, delete the F in 01CCC. and circle it out on the return. Continue to process.

The taxpayer doesn't respond or the response is inadequate,

1. Enter "3" in Field 01CCC. 2. Continue to process.

Fields Displayed:

Field Designator

Field Name

Length

01CCC

Computer Condition Code

10

01SIC

Schedule Indicator Code

1

01ARN

Applied Refund Indicator

1

0101

Number of Employees

7

S02DP

Section 02 Present

S03NP

Section 03 Not Present

03D>

Monthly Liability Computer Generated

15

S04DP

Section 04 Present

S05NP

Section 05 Not Present

05A>

Monthly Liability Computer Generated

15

S06NP

Section 06 Not Present

06B>

Monthly Liability Computer Generated

15

S07NP

Section 07 Not Present

07C>

Monthly Liability Computer Generated

15

S60

Section 60 Present

Invalid Condition: - Error Code 010 will generate when Computer Condition Code (CCC) "G" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC, and 01CRD are present.

Correction Procedures:

Correct all misplaced entries, coding and transcription errors.

Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

Determine if CCC "G" was input correctly.

If

Then

Return shows amended, revised, supplemental, corrected or superseding,

Research the applicable Command Code(s) BRTVU, BMFOL, SUMRY, TRERS, and TXMOD to determine if information is the same as the posted return.

All information is not the same,

1. Process the return with CCC "G" . 2. DLSEC to delete all sections, except Section 01. 3. Delete the invalid entries that are present in Section 01. GTSEC 01, if necessary.

All information is the same,

SSPND 640 and route to Rejects

A return is not posted for the tax period and the return is an amended return,

Continue processing as an amended return.

A return is not posted for the tax period and the return is not amended; (i.e., "G" coded in error)

1 - Enter all data in Sections 02 through 07. 2 - Ensure Section 01 fields are correct. 3 - Delete the "G" in Field 01CCC.

When deleting CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.

Fields Displayed:

Field Designator

Field Name

Length

RMIT>

Remittance Amount Computer Generated

15

01CCC

Computer Condition Codes

10

01RCD

Received Date

8

01CCC

Computer Condition Codes

10

01ARN

Applied Refund Indicator

15

S02NP

Section 02 Not Present

Invalid Condition: An RPS amount or a remittance amount is present, and there is no data in Section 02 and a valid CCC "G" is not present.

Correction Procedures: Compare the screen display and the return.

If

Then

The record is to be edited with a CCC "G" ,

1 - Section 02 is not necessary. Enter the CCC "G" in Field 01CCC. 2 - Verify that the received date is present and enter it in Field 01RCD.

Data is present on the return for the fields in Section 02,

Use CC GTSEC 02 and enter the correct data in those fields on the screen.

There is no money amount in the RMIT> field, and an RPS/ISRP indicator is present,

1 - Use CC GTSEC to view Section 2. 2 - Enter $.01 in Field 02TT, Total Tax-Taxpayer. 3 - Continue processing.

No data is present and you are unable to determine from the return or attachments where to apply the remittance amount,

1 - Suspend the record with SSPND 355. The Rejects unit will research using IDRS to secure the data and transfer the credit to the correct tax class or module.

Rejects Correction Procedures:

If

Then

No data is present and you are unable to determine from the return or attachments where to apply the remittance amount,

Correspond with the taxpayer with an explanation, following normal correspondence procedures. Suspend the record with Action Code 21X.

If the taxpayer replies with the necessary information, transfer the credit to the correct tax class and tax period, per the reply.

If there is no reply and you are unable to determine where to apply the excess remittance,

Leave Field 01ARN blank. The excess remittance will be applied to the next tax period.

Fields Displayed:

Error Code 014 Screen Display

Field Designator

Field Name

Length

04CON

In Care of Name

35

04FAD

Foreign Address

35

04ADD

Street Address

35

04CTY

City

22

04ST

State

2

04ZIP

Zip Code

12

Invalid Conditions: - Error Code 014 will generate when any of the following conditions are present:

If the Street Address is present, Fields 04CTY and 04ST must be present, unless a Major City Code is used.

If a Major City Code is used, Field 04ADD must be present.

Field 04CTY must be present. If the city is not in the Major City format, Field 04ST must be present. Field 04ADD can be blank.

A Major City Code is used and Field 04ST is present.

Correction Procedures:

Correct all misplaced entries, coding and transcription errors.

Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.

Research any of the following for valid address information: Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries and/or INOLES, NAMEB, NAMEE or ENMOD.

If

And

Then

A Major City Code is present,

No street address is available,

Enter the City Name (spelled out, not in Major City format) in Field 04CTY.

Enter the State Code in Field 04ST.

The Major City Code is correct

The state is present,

Delete Field 04ST.

The ZIP Code or the address can't be corrected from the information on the return,

Use DLSEC to delete Section 04.

Fields Displayed:

Error Code 015 Screen Display

Field Designator

Field Name

Length

04FAD

Foreign Address

35

04ADD

Street Address

35

04CTY

City

22

04ST

State

2

04ZIP

Zip Code

12

Invalid Condition: Error Code 015 will generate when any of the following conditions are present:

Field 04ST has an entry other than "." (period/space) when Field 04FAD is present.

Field 04ZIP has an entry when the foreign address Field 04FAD is present.

Correction Procedures:

Correct all misplaced entries, coding, and transcription errors.

Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

If

Then

A foreign address is present in Field 04FAD

1 - Field 04ST must have "." (period/space) 2 - Delete any entry in Field 04ZIP, if present.

A foreign address is not present in Field 04FAD

Check return for foreign address.

A foreign address is present on the return

Enter the foreign address in Field 04FAD.

If more space is required, continue entering the address in Field 04ADD.

Field 04CTY must have the correct foreign country code. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

Use the country code based on the province in Field 04FAD if the foreign address is from Canada and the address has a province name or abbreviation. (See Exhibit 3.12.13-15, Province/Country Code - Canada Only)

Field 04ST must have "." (period/space).

Delete any entry in Field 04ZIP.

A foreign address is not present on the return

Verify the address on the return is not a foreign address.

SSPND 610.

Renumber return with domestic DLN.

Example of Entering a Foreign Address

If

Then

A foreign address appears as follows: Edward Price 1234 Cottage Lane London SW6 5NL United Kingdom

Enter as follows: 04FAD: 2489 COTTAGE LANE 04ADD: LONDON SW6 5NL 04CTY: UK ST:

Fields Displayed:

Error Code 016 Screen Display

Field Designator

Field Name

Length

04CON

In Care of Name

35

04FAD

Foreign Address

35

04CTY

City

22

04ST

State

2

04ZIP

Zip Code

12

Invalid Condition: Error Code 016 will generate when the ZIP Code is inconsistent with the Major City or State Code.

Correction Procedures:

Correct all misplaced entries, coding and transcription errors.

Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

Research Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries or INOLES, NAMEB/NAMEE, and/or ENMOD for valid Zip Code information.

If

And

Then

You are unable to determine a valid ZIP code from the return or an attachment,

A valid ZIP Code is found through IDRS research,

Enter the valid ZIP Code found in Field 04ZIP.

Only the first three digits of the ZIP Code can be determined,

Enter "01" in the (4th) and (5th) position.

A ZIP Code can't be determined,

Enter the 3 digits followed by "01" of the first ZIP Code for the applicable state found in Document 7475 (e.g., 99501 for Alaska).

The address is in a major city

A Major City Code can be determined, (See Document 7475)

Enter Major City Code in Field 04CTY.

The address is in a major city

A Major City Code can't be determined

1- Enter the name of the city in Field 04CTY. 2- Enter the State Code in Field 04ST.

The address is not in a major city,

Enter the correct state abbreviation in Field 04ST.

Enter ZIP Code in Field 04ZIP.

APO/DPO/FPO Addresses - An Army Post Office (APO), Diplomatic Post Office (DPO), or Fleet Post Office (FPO) is not a foreign address. The U.S. Postal Service set up new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new state code abbreviation based on the ZIP Code. For example, APO New York, NY 091XX would be, converted to "APO AE 091XX" . Refer to the APO/DPO/FPO conversion chart below:

Zip Code

State Code

340

AA

090 - 098

AE

962 - 966

AP

Fields Displayed:

Field Designator

Field Name

Length

01TXP

Tax Period

6

02ITW

Total Income Tax Withheld

15

02QW

Current Year's Income Tax Withheld

15

02SW

Special Additions to Federal Income Tax

15

02SS

Special Additions to SS and Medicare Tax

15

02TA

Total Adjustments

15

02TA>

Total Adjustments Computer

15

Invalid Condition: Field(s) 02QW or 02SW appear on a first quarter return for tax period 200812 or prior.

Correction Procedures:

Compare the screen display and the return.

Error Code 018 generates only if the tax period of the return began on or before December 31, 2008, and if the return being filed is a Form 941, Revision 2005 through 2008.

If

Then

The taxpayer entered an amount on line(s) 7d through 7f, and the return is for a period 200812 or prior,

Enter Action Code SSPND 640 to have the return voided.

Rejects Procedures:

Void the DLN using RJECT 640.

Route the return to AM with Form 4227.

We can no longer allow forms 941 with Form 941C attached to be processed. Send complete file to AM.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

0204

Exempt from SS and Medicare Tax Indicator

1

02SSW

Taxable SS Wages

15

19SCS

Qualified Sick Leave Wages

15

19SCF

Qualified Family Leave Wages

15

02SST

Taxable SS Tips

15

02MED

Taxable Medicare Compensation and Tips

15

02TSM

Total SS and Medicare Taxes

15

02TSM>

Total SS and Medicare Taxes

15

02XMT

Additional Taxable Medicare Compensation and Tips

15

02EW

Exempt wages paid to employees

15

02TW

Exempt wages paid to employees x .062

15

02TW>

Tax on Exempt Compensation/Tips Paid Qualified Employees Computer

15

02TT

Total Tax Taxpayer

15

Invalid Condition: The total amount of Fields 02SSW, 19SCS, 19SCF and 02SST is greater than the Field 02MED figure.

Correction Procedures:

Correct all misplaced entries, coding and transcription errors.

For 6020(b) procedures see below:

If

Then

The return was prepared under Section 6020(b) by a Revenue Officer.

Review the return to determine if it was signed by the Revenue Officer.

If the return is unsigned, SSPND AC640 to have the DLN cancelled. After the DLN is cancelled, route the return as instructed in IRM 3.12.13.21.

If the return is signed, check the return for any transcription errors and correct the return as needed. Do not correspond with the taxpayer.

The Total Tax on the return can’t change. The Total Tax amount must be assessed as submitted by the Revenue Officer.

A CCC "4" is not present in 01CCC

Enter CCC "4" in Field 01CCC

An IRC 6020(b) return is incomplete or blank on lines 5a, 5b, or 5c,

Divide the amount in Field 02TSM by .153 (.133 for 2011 or 2012) and enter the results in Field 02SSW, and in Field 02MED.

Compare the screen entry to the return, and apply the procedures from the tables below:

If

And

Then

Fields 02SSW, 02SST, and 02MED are the same,

Fields 19SCS and 19SCF are blank,

Delete the Field 02SST on the ERS screen.

If EC 048 generates enter a "C" in the Clear Code Field.

If Error Code 080 generates, enter the underprint amount held in Field 02TSM> to Field 02TSM.

If Error Code 100 generates, send TPNC 07.

Fields 02SSW and 02SST are the same amount

Enter the total of column 1, lines 5a through 5b, to Field 02MED.

Apply the following procedures: - If Error Code 080 displays, enter Field 02TSM> underprint. - If Error Code 100 displays, enter TPNC 07.

Fields 02SSW and 02SST are the same amount

Fields 19SCS, 19SCF and 02MED are blank,

Delete the entry in 02SST and enter that amount in 02MED.

If Error Code 080 generates, enter the underprint amount of Field 02TSM.> to 02TSM.

If Error Code 100 generates, send TPNC 07.

Fields 02SSW, 19SCS, 19SCF and 02MED are all the same amount,

Enter the total of column 1, lines 5a through 5b, to Field 02MED.

Apply the following procedures: - If Error Code 080 displays, enter Field 02TSM> underprint. - If Error Code 100 displays, enter TPNC 07.

The taxpayer entered a positive entry in column 2 for any line(s) 5a, 5a(i), 5a(ii), 5b, and/or 5c,

Left line(s) 5a, 5a(i), 5a(ii), 5b, or 5c, column 1 blank,

Back-in to the correct wage amounts using the tax rates found on the form to determine if the taxpayer incorrectly transcribed or transposed figures. Then, as needed, change the amount(s) in Fields 02SSW, or 02SST, or 02MED.

Be sure you are using the correct rates for the tax period you are processing (see 3.12.13.30.33(3)2 in Error Code 100 for rate table).

The taxpayer entered a negative entry in column 1 for any line(s) 5a, 5a(i), 5a(ii), 5b, and/or 5c,

1 - Consider any negative entry in column 1 or 2 for any line(s) 5a, 5a(i), 5a(ii), 5b, and/or 5c as a positive entry. 2 - The change of the sign in 1 may result in another Error Condition(s) to display after input:

After performing the above action, continue to resolve the error by following the applicable procedures in the rows below.

The taxpayer entered an amount on lines 5a, 5a(i), 5a(ii), 5b, 5c and/or 5d, column 2,

Line 5e is blank, or is computed incorrectly,

1. Back into the wage amount(s) to determine if the TP omitted, incorrectly transcribed or transposed figures, or check the amounts to determine if TP may have edited the wrong amount in error.

Use the tax rate of .133 for 2011 and 2012 and .153 for all other periods when checking the amounts on line 5a, 5b and 5c.

If any of the above situations in step 1 are present, Change Field 02SSW, 19SCS, 19SCF, 02SST and/or 02MED accordingly.

Field 02XMT has an entry

Field 02MED is blank or zero and Field 02SSW and/or Field 02SST are the same or less than Field 02XMT

Remove entry in Field 02XMT and enter in Field 02MED.

The total of Fields 02SSW, 19SCS, 19SCF and 02SST is greater than the Field 02MED entry,

The amounts in Field(s) 02SSW, 02SST, and 02MED are not the same,

Review the return (including the box on line 4) and any attachments for a sufficient explanation, (such as):

Dependents under 18 years of age,

Social Security or Medicare Compensation exempt,

6020(b)

For 6020(b) returns, ensure a CCC "4" is present in Field 01CCC.

A sufficient explanation is given,

Divide the amount in Field 02TSM by .153 (.133 for 2011-2012) and enter the result in Field 02SSW, and in Field 02MED.

There is no explanation shown on the return or an attachment, or the explanation is not satisfactory,

There is a difference of less than ≡ ≡ ≡ ≡ ≡ ≡ between the total of Fields 02SSW, 19SCS, 19SCF, and 02SST compared to 02MED,

Enter the total of column 1, lines 5a, 5ai, 5aii and 5b to Field 02MED.

Apply the following procedures: - If Error Code 080 displays, enter Field 02TSM> underprint. - If Error Code 100 displays, enter TPNC 07.

There is no explanation shown on the return or an attachment, or the explanation is not satisfactory,

There is a difference ≡ ≡ ≡ ≡ ≡ or more between the total of Fields 02SSW, 19SCS, 19SCF and 02SST compared to 02MED and line 2 entry is equal to, or less than, the total of lines 5a through 5b

Enter the total of lines 5a, 5ai, 5aii and 5b to Field 02MED. See the instructions above if the error ripples to EC 080 and/or EC 100

There is no explanation shown on the return or an attachment, or the explanation is not satisfactory,

There is a difference ≡ ≡ ≡ ≡ ≡ ≡ or more between the total of Fields 02SSW, 19SCS, 19SCF and 02SST compared to 02MED and line 2 entry is greater than the total of lines 5a through 5b,

Correspond with the taxpayer using Letter 21C, paragraph X.

Suspense/Rejects Procedures:

If

Then

You receive a correct reply from the taxpayer,

Enter the amounts to the applicable Fields on the screen display. Process as needed.

You receive no reply, or there is an insufficient reply,

1 - Enter CCC 3 into Field 01CCC 2 - Enter the greater of Field 0202 or the total of Fields 02SSW, 19SCS, 19SCF and 02SST to 02MED.

If the total of Fields 02SSW, 19SCS, 19SCF and 02SST is greater than 0202, then also enter the computed total of Fields 02SSW, 19SCS, 19SCF and 02SST to Field 0202. 3 - If Error Code 080 generates, enter the Field 02TSM> underprint. 4 - If Error Code 100 displays, and the Total Tax-Computer is greater Total Tax-Taxpayer, send TPNC 27 and 07. However, if the Total Tax Computer is less than the Total Tax-Taxpayer, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Fields Displayed:

Field Designator

Field Name

Length

01RCD

Received Date

6

01CCC

Computer Condition Code

10

Invalid Condition: A CCC R, 7, or D is present and the Received Date is not present. CCC G is present and the received date is not present:

Correction Procedures:

Correct all misplaced entries, coding and transcription errors. Compare the screen entry to the return, and apply the procedures from the tables below:

If

Then

Transcribed incorrectly,

Enter the correct entry from the return.

CCC "R" , "7" , or "D" is present, and the received date is not present,

Enter the received date in Field 01RCD

CCC "R" , "7" , or "D" is not on the return,

Delete the CCC "R" , "7" , or "D" from Field 01CCC.

The return is not a "G" coded return, (i.e., no indication that the return is "Amended" , "Revised" , "Superseding" , "Duplicate" ), and nothing shows that this is other than the first return filed,

1 - Use GTSEC 02 and enter the data in the fields for Section 02 and transmit. 2 - When Error Code 010 generates, enter the correct field and delete Field 01CCC.

The return is correctly "G" coded,

Refer to Error Code 010.

Determine the received date following instructions in IRM 3.12.13.25.4.

Multiple dates are on the return,

Use the earliest date as the received date. Circle all other received dates on the return.

Fields Displayed:

Field Designator

Field Name

Field Length

01TXP

Tax Period

6

01RCD

Received Date

8

01CRD

Correspondence Received Date

8

Invalid Conditions:

One or both conditions are present:

Field 01CRD is equal to or earlier than Field 01RCD.

Field 01CRD is later than the processing date.

Correction Procedures:

Correct all misplaced entries, coding errors, and transcription errors.

Field 01CRD will be determined from the date the reply was received in the Submission Processing Campus.

Determine the correct Correspondence Received Date (CRD) from the date(s) stamped on the correspondence.

If

Then

The CRD is present and is earlier than or equal to the Received Date or is later than the Processing Date,

Delete CRD from Field 01CRD.

More than one CRD is present,

Enter the earliest CRD in Field 01CRD.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

CL

Clear Code

1

0202

Compensation Tips and Other Compensation

15

02ITW

Total Income Tax Withheld

15

02SSW

Taxable SS Wages

15

19SCS

Qualified Sick Leave Wages

15

19SCF

Qualified Family Leave Wages

15

02SST

Taxable SS Tips

15

02MED

Taxable Medicare Compensation and Tips

15

02XMT

Additional Taxable Medicare Compensation and Tips

15

02QTX

Section 3121 (q) Notice and Demand

15

02EW

Exempt wages paid to employees

15

02TW

Exempt wages paid to employees x .062

15

02TW>

Tax on Exempt Compensation/Tips Paid Qualified Employees Computer

15

02BA

Total Taxes Before Adjustments

15

02BA>

Total Taxes Before Adjustments Computer

15

Invalid Conditions: Wages, Tips and Other Compensation ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Correction Procedures:

Check transcription. Refer to the return to determine if line 2 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ This field must be shown as dollars and cents.

Expeditious processing of refund returns is critical if the 45-day period is about to expire. See IRM 3.12.13.13, Refund Returns - 45 Day Jeopardy and High Dollar Refunds.

If

Then

Transcription errors are found

Correct screen as necessary and transmit.

The entry in Field 0202 does not agree with line 2 (Wages, Tips and Other Compensation) on the return,

Correct the screen entry and transmit.

All transcription has been corrected and Error Code 044 is still displayed because Field 0202 exceeds $999,999.99,

Enter "C" in the Clear code Field (CL) and transmit.

Any corrections must be entered and transmitted prior to entering the "C" Clear code. The "C" Clear code does not permit any other corrections to the record.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

CL

Clear Code

1

01TXP

Tax Period

6

01CCC

Computer Condition Code

10

0202

Total Wages, Tips and other compensation

15

0204

Exempt from SS and Medicare Tax Indicator

1

02SSW

Taxable SS Wages

15

19SCS

Qualified Sick Leave Wages

15

19SCF

Qualified Family Leave Wages

15

02SST

Taxable SS Tips

15

02MED

Taxable Medicare Compensation and Tips

15

02XMT

Additional Taxable Compensation and Tips

15

02TSM

Total SS and Medicare Taxes

15

02TSM>

Total SS and Medicare Taxes Computer

15

02QTX

Section 3121 (Q) - Notice and Demand

15

02EW

Exempt wages paid to employees

15

02TW

Exempt wages paid to employees x .062

15

02TW>

Tax on Exempt Compensation/Tips Paid Qualified Employees Computer

15

02BA

Total Taxes Before Adjustments

15

02BA>

Total Taxes Before Adjustments Computer

15

Invalid Condition: The Error Condition will generate if Field 0202 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Field 02MED, Taxable Medicare Compensation and Tips is not present.

If CCC "4" or "B" is present, it will allow this error code to bypass.

Correction Procedures:

Compare the displayed field entries with the correct line on the return. Correct any coding or transcription errors. Make sure an old form format is not causing the error.

If the taxpayer entered an amount on line 5d and line 5c is blank, remove the entry in Field 02XMT and enter in Field 02MED.

If the fields are correct as transcribed, use the information below to correct the record.

If

And

Then

The return shows no entries or tax calculations on lines 5a through 5c (columns 1 and 2), but an entry shows on line 5e,

If an IRC 6020(b) return is incomplete on lines 5a, 5b, or 5c, use the IF/THEN procedure to process.

Divide the amount in Field 02TSM by .153 and enter the result in Field 02SSW, and in Field 02MED.

The return shows tax calculations on line 5a, through 5d, column 2

Fields 02SSW, 02SST, 02MED and/or 02XMT are blank,

Determine the Compensation amount by dividing the social security tax, Medicare tax or additional Medicare tax withholding by the correct rate, and continue to process.

There is no entry in Field 0204, on return line 4, or if Code & Edit has edited an asterisk (*) to the left of the box on Line 4 of the return,

You can determine the entry on line 2 represents non-wage items (e.g., pensions, annuities, third party sick pay, supplemental unemployment, gambling winnings, etc., or the taxpayer is indicating IRC 3121(l)),

Enter CCC B in Field 01CCC.

There is no entry in Field 0204, on return line 4, or if Code & Edit has edited an asterisk (*) to the left of the box on Line 4 of the return,

Field 0202 (line 2 on the return) has an entry representing wage items or is blank, zero, none, etc.,

Review the return and attachments to determine if the taxpayer is claiming an "Exemption" from social security and/or Medicare.

The taxpayer may indicate an exemption using phrases like, Mis-classified Employee"United Transportation Union," "railroad," "common paymaster," "minister," "Form 4361," "Form 4029 Exempt," "Form 4029 applicable," etc. Exception: If the taxpayer merely shows their profession on the signature line, it does not qualify as an explanation for claiming a social security and/or Medicare exemption.

The taxpayer has indicated an exemption on the return or attachments,

The taxpayer may indicate an exemption by using phrases like, Mis-classified Employee"United Transportation Union" , "common paymaster" , "minister" , "Form 4361" , "Form 4029 Exempt" , "Form 4029 applicable" , "child under the age of 18 years of age" , etc. Also, if the taxpayer merely shows their profession on the signature line, it does not qualify as an explanation for claiming a social security and/or Medicare exemption

Enter CCC B in Field 01CCC.

No entry in Field 0204 or line 4 on the return

Entity area clearly shows taxpayer is a Railroad or INOLES has a CT-1 filing requirement.

Enter CL code to allow return to post as is. If unsure, initiate research using CC INOLE or ENMOD to determine if TP has filing requirements for CT-1 (MFT 09). If so, enter C in CL code.

There is no indication from the taxpayer that they are exempt from social security and/or Medicare on the return or attachments,

Initiate research using CC INOLE and/or BMFOL to find the taxpayer's Employment Code. (Then follow the procedures below for the applicable Employment Code or situation).

Employment Code C,F or G is shown on the return or found during research,

Enter CCC "B" into Field 01CCC.

Employment Code T is shown on the return or found during research,

1 Enter the amount of Field 0202 to Fields 02SSW and 02MED, column 1. 2 When EC 048 generates enter "C" in Clear Code Field. 3 When EC 080 generates bring up the Field 025> underprint. 4 When Error Code 100 generates, enter TPNC 90- 91 with the statement, "You are liable for social security and Medicare tax under a Section 218 agreement (for state and local governmental agencies) with the Social Security Administration. "

Employment Code W is found during research,

1 Enter Field 0202 amount into Fields 02SSW and 02MED, column 1. 2 When EC 048 generates enter "C" in Clear Code Field. 3 When EC 080 generates bring up the Field 02TSM> underprint. 4 When Error Code 100 generates, send TPNC 08.

No Employment Code is shown on the return or found during research

There is no entry in column 1 or 2

1 Enter the Field 0202 amount into Fields 02SSW and 02MED, Column 1. 2 When EC 048 generates enter "C" in Clear Code Field. 3 When EC 080 generates bring up the Field 02TSM> underprint. 4 When Error Code 100 generates, send TPNC 07.

You can determine that the Compensation shown on line 2 belong to a working spouse and/or children over age 18,

Fields 02SSW and 02MED, column 1 are blank,

1 Enter the amount of Field 0202 to Fields 02SSW and/or 02MED, column 1. 2 When EC 048 generates enter "C" in Clear Code Field. 3 When EC 080 generates bring up the Field 025>underprint. 4 When Error Code 100 generates, send TPNC 07.

Taxpayer files a Form 941 with entries only on line 2 or lines 5a, column 1 and 5c, column 1,

The taxpayer shows the tax withheld was from pensions, annuities, third-party sick pay, supplemental unemployment, or gambling winnings, and ERS can't determine if it represents Compensation or non-Compensation,

Correspond with the taxpayer to determine their intent.

Tax on annuities, pensions, third-party sick pay, etc. should be reported on Form 945.

EMPLOYMENT CODE TABLE (with type of entity)

Code

Type of Entity

Liable for Social Security or Medicare?

C

Church or church-controlled organization exempt from social security tax.

Exempt from social security and/or Medicare unless taxpayer shows wage amount(s)

F

Federal government agency exempt from social security tax.

Exempt from social security and/or Medicare unless taxpayer shows wage amount(s)

G

State/local government agency not under a Section 218 agreement. Generally, the employees are liable only for Medicare tax.

Exempt from social security and/or Medicare unless taxpayer shows wage amount(s)

A

Fiscal Agent Under Section 3504

Subject to social security and/or Medicare

I

Indian Tribal Government or subsidiary

Subject to social security and/or Medicare

N

Non-profit organization subject to FICA

Subject to social security and/or Medicare

S

Form 2032 filed by foreign subsidiary. Employees subject to social security and Medicare.

Subject to social security and/or Medicare

T

State/local government agency under a Section 218 agreement.

Subject to social security and/or Medicare

W

Section 501(c)3 nonprofit organizations exempt from the Federal Unemployment Tax Act (FUTA) under Section 3306(c)8.

Subject to social security and/or Medicare

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

CL

Clear Code

1

02ITW

Total Income Tax Withheld

15

02SSW

Taxable SS Wages

15

19SCS

Qualified Sick Leave Wages (valid 202006 and subsequent)

15

19SCF

Qualified Family Leave Wages (valid 202006 and subsequent)

15

02SST

Taxable SS Tips

15

02MED

Taxable Medicare Compensation and Tips

15

02XMT

Additional Taxable Medicare Compensation and Tips

15

02TSM

Total SS and Medicare Taxes

15

02TSM>

Total SS and Medicare Taxes Computer

15

02QTX

Section 3121 (Q) - Notice and Demand

15

02EW

Exempt wages paid to employees (valid 201006 - 201012)

15

02TW

Exempt wages paid to employees x .062 (valid 201006 - 201012)

15

02TW>

Tax on Exempt Compensation/Tips Paid Qualified Employees Computer (valid 201006 - 201012)

15

02BA

Total Taxes Before Adjustments

15

02BA>

Total Taxes Before Adjustments Computer

15

02FC

Current Quarter's Fractions of Cents

15

02SP

Current Quarter's Sick Pay

15

02TG

Current Quarter's Adjustment for Tips and Group Life Insurance

15

02TA

Total adjustments (200512 - 201003)

15

Total adjustments - computer

15

02PTC

Form 8974 - Research Credit

15

19QCS

Nonrefundable credit for sick and family leave taken before April 1, 2021 (valid 202006 and subsequent)

15

19CER

Nonrefundable Credit for Employee Retention (202109 - 202112)

15

19QAS

Nonrefundable credit for sick and family leave taken after March 31, 2021, and before October 1, 2021 (valid 202106 and subsequent)

15

19CNA

Nonrefundable portion of COBRA credit (valid 202106 - 202203)

15

02SW

Special Additions to Federal Income Tax (prior years only)

15

02SS

Special Additions to SS and Medicare Tax (prior years only)

15

02TT

Total Tax Taxpayer

15

02TT>

Total Tax Taxpayer Computer

15

02EC

Advance EIC

15

Invalid Condition: Field 02TT (Total Tax -Taxpayer) is zero or blank, but at least one other displayed field has a dollar entry.

Correction Procedures:

Check the return for misplaced entries or the screen for transcription errors.

If

Then

Transcribed incorrectly,

Enter the correct entry from the return.

Field 02TT, Total Tax-Taxpayer, is blank or zero, but the Fields 02ITW through 02SS show tax entries,

Also use these procedures if the taxpayer shows that Compensation was paid to a family member(s) or spouse as "exempt Compensation" . PL 100-203 brought spouses and children, age 18 and older, under social security coverage.

Visually verify the entry on the total tax line from the prior line entries on the return. Make corrections, as needed. Then, compare the entry on the total tax line with Field 02TT. Enter corrected Field 02TT.

After comparing the Total Tax entry on Form 941 and Field 02TT from the screen display, if the total taxes are truly zero, blank or "None" ,

Enter "C" in the Clear Code Field to indicate all entries are correct. Note: A correction to any displayed field must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.

After comparing the Total Tax entry and Field 02TT on the screen display, if the total taxes should be other than zero, blank, "None" and EC 100 generates

Enter TPNC 03.

Fields Displayed:

Field Designator

Field Name

Length

01TXP

Tax Period

6

0202

Wages, Tips, and Other Compensation

15

02TT

Total Tax Taxpayer

15

02EC

Advance EIC

15

02DEP

FTD Credit Claimed

15

02STL

Total Payments

15

Invalid Conditions: The Advance Earned Income Credit (AEIC), Field 02EC is greater than the allocated percentage of the Wages, Tips, and Other Compensation, Field 0202. The allocated percentages are:

10 percent for tax periods 198412 and prior.

11 percent for tax periods 198503 through 198612.

14 percent for tax periods 198703 through 199012.

16.7 percent for tax periods 199103 through 199112.

17.6 percent for tax periods 199203 through 199212.

18.5 percent for tax periods 199303 through 199312.

15.78 percent for tax periods 199403 through 199412.

20.4 percent for tax periods 199503 through 201012.

Correction Procedures:

Compare the displayed screen entries with the return. Correct any fields to agree with the return.

First, review the tax period of the return. Advance Earned Income Credit (AEIC) is not allowable for any return with a tax period beginning on or after January 1, 2011. If an entry appears in Field 02EC for a return indicating a later tax period, delete the Field 02EC.

If

Then

Field 0202 (line 2) is blank and Field 02EC (line 9) has an entry,

1- Add Field 02SSW and 02SST together, (lines 5a, Column 1, and 5b, Column 1). 2- Enter in Field 0202, the "larger" of the total computed in 1 above, or the amount in Field 02MED (line 5c, column 1).

Fields 0202, 02SSW, and 02SST (lines 2, 5a, Column 1, and 5b, Column 1) are blank, but Field 02MED (line 5c, column 1) has an entry,

Enter the Field 02MED (line 5c, column 1) amount to Field 0202 (line 2) on the screen.

Fields 0202, 02SSW, 02SST, and 02MED (return lines 2, 5a, column 1, 5b, column 1, and 5c, column 1) are blank, but line 3 of the return has an entry,

Add a zero to the line 3 amount and enter the new amount to Field 0202 on the screen.

It appears the Field 02EC (line 9) amount may be the amount of the deposits,

Follow the applicable steps below in the order provided until the error has been resolved.

The same amount or within ≡ ≡ ≡ ≡ ≡ or less of the computed total deposit amount. Add all deposits (TC 650, 670, 716, etc.). Use CC GTSEC 02. Delete the entry in Field 02EC and enter the same amount to Fields 02DEP and 02STL on the screen display.

Not the same amount, or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ than the computed total deposit amount. Correspond for clarification of AEIC.

If Error Code 102 subsequently generates, enter TPNCs 23 and 27.

Fields Displayed

Field Designator

Field Name

Field Length

CL

Clear Code

1

RMIT>

Remittance Amount

15

01CCC

Computer Condition Code

10

02EC

Advance EIC

15

Invalid Condition: Advance Earned Income Credit (AEIC) equals or exceeds Remittance amount.

Correction Procedures:

Check for any transposition, transcription, or coding errors. Correct the applicable fields to agree with the return.

If

Then

The AEIC amount is a misplaced entry or if it appears that an obvious error has been made,

1- Initiate research (e.g., BMFOLT) to determine the total of the federal deposits (TC 650, 670, 716, etc.) applied to the applicable tax period. 2- If the total federal tax deposits equals the amount in Field 02EC, delete Field 02EC on the screen display. 3- If Field 02EC has been deleted, but was used by the taxpayer to compute the balance due or overpayment, Error Code 102 will be subsequently displayed. Correct Error Code 102 using the established procedures.

The displayed Fields are correct as transcribed, or corrected, and Error Code 052 is still present,

Allow the AEIC by entering a "C" in the Clear code Field. Note: The "C" in the Clear code prevents any other corrections to the record to accompany the "C" in the Clear code. If Field 02EC needs to be corrected, it must be entered and transmitted prior to entering and transmitting the "C" in the Clear Code field.

Fields Displayed:

Field Designator

Field Name

Length

CL

Clear Code

1

01TXP

Tax Period

6

02EC

Advance EIC

15

02DEP

FTD Credit

15

02CPM

COBRA payment amount

15

02TT

Total Tax Taxpayer

15

02TT>

Total Tax Taxpayer Computer

15

Invalid Condition: Error Code generates when the Advance Earned Income credit (AEIC) minus the Total Tax-Computer amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and the AEIC amount is greater than the Total Federal Tax Deposits by≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Correction Procedures:

Compare the entries on the screen display and the return. Correct any coding or transcription errors. Then, initiate research (BMFOL T) to determine the computed total of deposits and credit elect (TC 650, 670, 716, etc.) applied to the applicable tax period. (Follow the If/Then table in priority order:)

First, review the tax period of the return. Advance Earned Income Credit (AEIC) is not allowable for any return with a tax period beginning on or after January 1, 2011. If an entry appears in Field 02EC for a return indicating a later tax period, delete the Field 02EC.

If

Then

The Field 02EC amount is the same as the computed total of the deposits (TC 650, 670, 716, etc.) on the tax period module,

1- Delete Field 02EC. 2- Use GTSEC 02. Enter the same amount which was previously in Field 02EC to Field 02DEP and 02STL on the screen display. Then, continue processing.

The return line 11 is blank, research shows no deposits, "and" Field 02EC is "less" than $2,500,

Enter "C" in the Clear Code Field to resolve.

Field 02EC amount is not the same as the applied deposits, but the entry is greater than $2,500.

1- Correspond for clarification of AEIC entry.

Suspense/Rejects Procedures:

Process suspense correspondence as follows:

If

Then

You receive a reply from the taxpayer,

Compare the taxpayer's reply to the screen display. Correct any incorrect entries.

No reply is received, or an inadequate reply,

Enter CCC 3 in Field 01CCC, and "C" in the Clear Code Field to resolve.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

CL

Clear Code

1

01SIC

Schedule Indicator Code

1

01ARN

Applied Refund Indicator

1

02ITW

Total Income Tax Withheld

15

0204

Exempt SS and Medicare Compensation Indicator

1

02SSW

Taxable SS Wages

15

19SCS

Qualified Sick Leave Wages (valid 202006 and subsequent)

15

19SCF

Qualified Family Leave Wages (valid 202006 and subsequent)

15

02SST

Taxable SS Tips

15

02MED

Taxable Medicare Compensation and Tips

15

02TSM

Total SS and Medicare Taxes

15

02TSM>

Total SS and Medicare Taxes Computer

15

02QTX

Section 3121 (Q) - Notice and Demand

15

02XMT

Additional Taxable Medicare Compensation and Tips

15

02EW

Exempt wages paid to employees (valid 201006 - 201012)

15

02TW

Exempt wages paid x .062 (valid 201006 - 201012)

15

02TW>

Tax on Exempt Compensation/Tips Paid Qualified Employees Computer (valid 201006 - 201012)

15

02BA

Total Taxes Before Adjustments

15

02BA>

Total Taxes Before Adjustments computer

15

02FC

Current Quarter's Fractions of Cents

15

02SP

Current Quarter's Sick Pay

15

02TG

Current Quarter's Adjustments for Tips and Group Life Insurance

15

19QCS

Nonrefundable credit for sick and family leave taken before April 1, 2021 (valid 202006 and subsequent)

15

19CER

Nonrefundable Employee Retention Credit (202109 - 202112)

15

19QAS

Nonrefundable credit for sick and family leave taken after March 31, 2021, and before October 1, 2021 (valid 202106 and subsequent)

15

19CNA

Nonrefundable portion of ARP COBRA credit (valid 202106 - 202203)

15

02SW

Special Additions to Federal Income Tax (prior years only)

15

02SS

Special Additions to SS and Medicare Tax (prior years only)

15

02TA

Total Adjustments (200512 - 201003)

15

02TA>

Total Adjustments Computer (200512 - 201003)

15

02TT

Total Tax Taxpayer

15

02TT>

Total Tax Computer Generated

15

02EC

Advanced Earned Income Credit (201012 and prior)

15

02DEP

FTD Payments Claimed

15

02CPM

COBRA Premium Assistance Payments (200903 - 201312)

15

02STL

TOTAL-PAYMENTS-AMT

15

02B/R

Balance Due/Overpayment

15

02B/R>

Balance Due/Overpayment Computer Generated

15

Invalid Condition: The error code will generate if the FTD credit is present and Total Tax Computer is zero or negative.

Correction Procedures:

Compare the screen display and the return.

If

Then

Transcribed incorrectly,

Enter the correct entry from the return.

The return is truly non-taxable and FTD Credits are present,

Clear the error by entering "C" in the Clear code (CL) Field.

A correction to any displayed field must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.

You are unable to determine if the return is taxable or non-taxable,

See IRM 3.11.13.10.3 for determination.

Correspond with the taxpayer. Suspend with CC SSPND and Action Code 211.

There is no reply from the taxpayer,

Enter "C" in the Clear code field.

Fields Displayed:

Field Designator

Field Name

Length

S02NP

Section 02 Not Present

S03NP

Section 03 Not Present

03D>

Monthly Liability Computer Generated

15

S05NP

Section 05 Not Present

05A>

Monthly Liability Computer Generated

15

S06NP

Section 06 Not Present

06B>

Monthly Liability Computer Generated

15

S07NP

Section 07 Not Present

07C>

3rd Month Liability Computer Generated

15

Invalid Condition: Error Code 058 will generate if Section 03, 05, 06, 07, or 19 is present, but Section 02 is not present.

Correction Procedures:

Check transcription. Refer to the return to determine if Sections 02, 03, 05, 06, 07, or 19 should be present.

If

Then

There are line entries on the return for Section 02 Fields,

Use CC GTSEC 02 to show the section format on the screen.

Enter the correct data to the fields on the screen.

There are no line entries on the return for Sections 03, 05, 06, 07, or 19,

Use CC DLSEC to delete the sections that do not have corresponding line entries on the return.

There are line entries present on the return for Sections 03, 05, 06, 07, or 19, but no line entries for Section 02,

Correspond with the taxpayer to secure the information concerning the tax liability for the quarter. Suspend the record with Action Code 21X.

Enter any applicable Sections prior to corresponding.

There is no reply from taxpayer,

Check IDRS to see if a TC 150 has posted for this period. If it has, send the document to have the DLN deleted and then send liability information to Accounts Management for resolution.

There is no reply from the taxpayer, and no return has posted to the period,

Enter CCC "3" in Field 01CCC.

Enter the amount from Field 03D>, or the total of Fields 05A>, 06B> and 07C> (whichever is greater), into Fields 02ITW and 02TT.

If Error Code 102 displays, use TP NC 27 to advise the taxpayer that we adjusted the tax because we did not receive a reply to our request for additional information.

Fields Displayed:

Field Designator

Field Name

Length

01TXP

Tax Period

6

02CPM

COBRA payment amount (valid 2009 - 2013) (not valid for CT-1)

15

02CEM

Number of Recipients Receiving COBRA (valid 2009 - 2013) (not valid for CT-1)

6

19CNA

Nonrefundable portion of ARP 2021 COBRA credit (valid 202106 - 202203)

15

19CRN

Number of individuals provided ARP 2021 COBRA premium assistance (valid 202106 - 202203)

7

19CRA

Refundable portion of ARP 2021 COBRA credit (valid 202106 - 202203)

15

Invalid Condition: Error Code 069 will generate if there is an entry in a COBRA money amount field, but no entry in the number of recipients field, or vice-versa.

See the "Fields Displayed" table above for valid tax periods of various COBRA fields.

Correction Procedures:

Correct any transcription errors or obvious misplaced entries.

For tax periods 200903 through 201312, use the following instructions:

If

And

Then

Field 02CEM contains an entry,

Field 02CPM is blank

Delete Field 02CEM.

Field 02CPM has an entry, and Field 02CEM is blank

Field 02DEP does not have an entry,

Enter the Field 02CPM amount to 02DEP. Delete Field 02CPM.

Field 02CPM has an entry, and Field 02CEM is blank

Field 02DEP and return line 11 has an entry

SSPND 211 to correspond using letter 21C, paragraph J (use letter 21SP for Form 941(PR))

For tax periods 202106 and subsequent, use the following instructions:

If

And

Then

Field 19CRN has an entry,

Fields 19CNA and 19CRA are both blank,

Delete Field 19CRN.

Field 19CNA and/or 19CRA have entries,

Field 19CRN is blank, dash, or zero,

SSPND 211 to correspond for the number of individuals provided COBRA assistance using letter 21-C, paragraph J. (use letter 21-SP for Form 941(PR))

Suspense/Rejects Procedures:

Process replies, inadequate replies and no replies as follows:

If

Then

A reply is received or attached to the return,

Enter the missing information.

The reply is incomplete, or there is no reply,

Enter "3" in Field 01CCC

Delete all entries in any COBRA field.

If Error Code 100 and/or 102 display as a result, send TPNC 27.

Fields Displayed:

Field Designator

Field Name

Length

02MRN

March Number of Qualified Employees Paid Exempt Compensation/Tips

6

02MRW

March exempt wages paid

15

Invalid Condition: This error condition will generate when:

Field 02MRN has an entry greater than zero, and Field 02MRW is blank or zero

Field 02MRW has an entry greater than zero, and Field 02MRN is blank or zero

Correction Procedures:

Review the screen display against the return. These fields are only valid for tax period 201006.

If

Then

Field 02MRN is greater than zero, and Field 02MRW is blank or zero.

Review the Form 941, Rev 2010, lines 12c and/or 12d to determine if there was a transcription error. If so, correct the incorrect entry from the return. If Field 02MRN has a figure, but the return shows no credit taken, delete Field 02MRN.

Field 02MRW is greater than zero, and Field 02MRN is blank or zero

If there are no transcription errors and Field 02MRN is blank, enter a "1" in Field 02MRN (only if Field 02MRW has a valid entry.

Fields Displayed:- Error Code 073 will display fields:

Field Designator

Field Title

01CCC

Computer Condition Code

01CRD

Correspondence Received Date

Invalid Condition: Error Code 073 will generate if Field 01CCC is "3" and a date has been entered in Field 01CRD.

Correction Procedures:

Correct coding and transcription errors and misplaced entries.

If

Then

Correspondence has been issued and "no reply" ,

Delete Field 01CRD.

No correspondence has been issued,

Delete CCC "3."

TP responded and provided requested information,

Delete CCC "3."

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

0202

Wages, Tips and Other Compensation

15

02SSW

Taxable SS Wages

15

19SCS

Qualified Sick Leave Wages

15

19SCF

Qualified Family Leave Wages

15

02SST

Taxable SS Tips

15

02MED

Taxable SS and Medicare Compensation

15

02XMT

Additional Taxable Medicare Compensation and Tips

15

02TSM

Total SS and Medicare Taxes

15

02TSM>

Total SS and Medicare Taxes Computer Generated

15

Invalid Condition: This error will generate if the difference between Fields 02TSM and 02TSM> ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Correction Procedures: For 6020(b) returns please use the procedures below:

If

Then

The return was prepared under section 6020(b) by a Revenue Officer

1. Review the return to determine if it was signed by the Revenue Officer. 2. If the return was unsigned, forward the return to Rejects to have the DLN cancelled. After the DLN is cancelled, route the return as instructed in IRM 3.12.13.21 3. If the return is signed, check the return for any transposition errors and correct the return, as needed. Do not correspond with the taxpayer.

The Total Tax on the return can't change. The Total Tax amount must be assessed as submitted by the Revenue Officer.

A CCC 4 is not present in 01CCC

Enter CCC 4 in Field 01CCC.

An IRC 6020(b) return is incomplete or blank on lines 5a, 5b, or 5c,

Divide the amount in Field 02TSM by .153 (.133 for 2011-2012).and enter the result in Field 02SSW and in Field 02MED.

Compare the displayed field entries with the return:

If the Form 941 is being filed as "IRC 6020(b)" follow the procedures in the IRC 6020(b) procedures table above.

Treat any negative amounts in Column 1 as positive.

Check for transposition, transcription or coding errors. Correct the applicable fields to agree with the return.

The taxpayer reports total Compensation of $108,000.00 on line 5a, column 1 and shows the tax on that is $22,320.00 on line 5a, column 2. In this case if you backed into the wage amount to figure where the taxpayer made his error you will find that the total Compensation reported should have been $180,000.00, not $108,000.00. This is an example of a transposition error made by the taxpayer and Field 02SSW needs to be corrected.

If

Then

The taxpayer used the incorrect rate to figure taxable SS Wages or tips)(see 3.12.13.30.33(3)2)

Research using BMFOLI for any indication the TP has already filed a return for the tax period on the return (the return must not indicate in any way that it is amended, corrected or supplemental).

If there is a return posted for the period on the return then GTSEC 01 and change the period to a current tax period. If the return that has posted is a Section 6020(b) return, please continue processing to quarter indicated on return. Do not "G" code the return. A Section 6020(b) return will have a CCC 4 and/or D on BMFOLR under Alpha Condition Codes.

If there is no return posted for the tax period on the return then continue processing using the procedures below.

The taxpayer entered an amount on line 5d and line 5c is blank,

Remove the entry in Field 02XMT and enter in Field 02MED.

The taxpayer entered an amount in lines 5a, 5a(i), 5a(ii), 5b 5c and/or 5d, column 2, but left line 5e blank, or computed it incorrectly,

1. Back into the wage amount(s) to determine if the TP omitted, incorrectly transcribed or transposed figures, or check the amounts to determine if TP may have edited the wrong amount in error. Use the tax rate of .133 for 2011 and 2012 and .153 for all other periods when checking the amounts on line 5a, 5b and 5c. a) If any of the above situations in step 1 are present, Change Field 02SSW, 19SCS, 19SCF, 02SST and/or 02MED accordingly. b) If none of the above situations in step 1 are present then enter the underprint amount in Field 02TSM. When the math error on line 5e becomes more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the math error may ripple and generate EC 100.

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

If TP made an additional error in the total tax field (Field 02TT) send TPNC 03 also.

Fields Displayed:

Field Designator

Field Name

Length

01CCC

Computer Condition Codes

10

02FP

Number of Qualified Employees First Paid Exempt Compensation/Tips this Quarter

15

02NP

Number of Qualified Employees Paid Exempt Compensation/Tips this Quarter

15

02EW

Qualified exempt wages paid

15

Invalid Conditions:

The tax period is 201006 through 201012.

This error condition will generate when: Field 02EW plus $100.00 is greater than Field 02SSW or Field 0SST.

Field 02FP is greater than zero or is blank, and the total of field 02SSW and field 02SST are equal to zero or blank.

Correction Procedures:

Compare the return and any attachments against the screen. Correct any transcription errors by entering the return or attachment entry to the applicable field on the screen.

If

Then

The entries on the screen display match the return

Initiate correspondence to correct return line(s) 5a through 5c, or line 6c (Form 941, Rev April 2010). Use Letter 21C, and SSPND using Action Code 211.

The taxpayer sends an adequate reply,

Correct the information on the screen display, as per the taxpayer’s reply. GTSEC01 and enter the Correspondence received date (CRD) into Field 01CRD.

The taxpayer sends an inadequate reply, or there is no reply from the taxpayer,

GTSEC 01 and enter "3" in Field 01CCC. Leave working trail on the Return,

Delete any entry to Field(s) 02FP, 02NP, and 02EW and transmit to update the display on the screen.

When Error Code 100 displays, enter TPNC 34 to advise the taxpayer that we have disallowed their social security tax adjustment for the exempt Compensation paid qualified employees. The total of the reported social security Wages and social security Tips must be equal to, or greater than, the exempt compensation paid qualified employees. Also send TPNC 27 in the case of a no reply or an inadequate reply to correspondence.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

02SSW

Taxable SS Wages

15

02SST

Taxable SS Tips

15

02MED

Taxable Medicare Compensation and Tips

15

02XMT

Additional Taxable Medicare Wages and Tips

15

02FP

Number of Qualified Employees First Paid Exempt Compensation/Tips this Quarter

15

02NP

Number of Qualified Employees Paid Exempt Compensation/Tips this Quarter

15

19SCS

Qualified Sick Leave Wages

15

19SCF

Qualified Family Leave Wages

15

02TW>

Tax on Exempt Compensation/Tips Paid Qualified Employees During this Quarter Computer Generated

15

Invalid Condition: This error condition will generate when:

Fields 02FP and 02NP have a value other than zero or blank, and Field 02EW is zero or blank.

Fields 02FP and 02NP are zero or blank and Field 02EW is not zero or blank.

Correction Procedures:

Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

If

Then

Form 941, line 6b (Revision 04/2010 or 10/2010) is blank, zero, none etc. and there is an entry on line 6c

Review Form 941, line 6a for an entry

If line 6a has an entry, enter the same number on line 6a to Field 02NP

If Field 02FP is blank, zero, none, etc. initiate correspondence to secure the missing information using Letter 21C, paragraph H and enter Action Code 211.

Form 941 (Revision 04/2010 or 10/2010) line 6b has an entry, and line 6c is blank, zero, none etc.

Delete Field 02NP and/or 02FP

An amount is shown in Field 02TW, but Field 02EW is blank, zero or none

Back into Field 02EW by dividing the amount in Field 02TW by .062.

Suspense/Rejects Procedures:

If you receive a reply, input the taxpayer’s entry to Field 02NP or Field 02EW. GTSEC 01 and enter the Correspondence received date (CRD) into 01CRD.

If you receive an inadequate reply, or no reply, enter 3 in Field 01CCC, edit the Return with CCC 3, delete any entry in Field(s) 02FP, 02NP, and/or 02EW. GTSEC 01 and enter "3" to Field 01CCC.

If the correction to Field 02EW ripples to Error Code 100 see IRM 3.12.13.32.38

Fields Displayed:

Field Designator

Field Name

Line Description

01TXP

Tax Period

Upper right of page 1

01SRI

Schedule R Indicator

Edited at the bottom of page 1, if Schedule R is present

19RSI

Recovery Startup Indicator (202109 - 202112)

If you're eligible for the employee retention credit solely because your business is a recovery start-up business, check here.

19CER

Nonrefundable Employee Retention Credit (202109 - 202112)

Nonrefundable portion of employee retention credit

19RER

Refundable Employee Retention Credit (202109 - 202112)

Refundable portion of employee retention credit

19ERC>

Combined ERC Computer Amount

Computer amount for the sum of the nonrefundable and refundable employee retention credits

Invalid Condition: Error Code 092 will generate under either of the following conditions:

The tax period is 202109 or 202112, field 19ERC> is greater than $50,000.00, field 01SRI is blank and field 19RSI is “1”.

The tax period is 202112, field 19ERC> is greater than zero, and field 19RSI is blank.

Correction Procedures:

Compare the return to the screen display. Correct any transcription errors or obvious misplaced entries.

If all transcription is correct and tax period is truly 202109 or 202112, then perform the following steps:

If

And

Then

Schedule R is attached,

Input “R” to field 01SRI.

The recovery startup check box on line 18b is not checked,

Delete “1” from field 19RSI.

Field 19RSI is “1”

Field 19ERC> is greater than $50,000.00,

Subtract 50,000.00 from the amount in field 19ERC> to compute the difference between the taxpayer’s claimed amount of employee retention credit for recovery startup businesses and the maximum allowable amount.

Do not attempt to change field 19ERC>, it is a computer-generated field.

Reduce field 19RER (if present) by the amount of the difference. Do not reduce below zero.

If 19RER is zero, or has been reduced to zero in step 2 above, use any remaining amount of the difference to reduce field 19CER.

If error codes 100 and/or 102 generate as a result, send TPNC 90 with literal 315. Edit "90-315" in the top left margin of page 1 of the return, following working trail procedures at IRM 3.12.13.23 Working Trails.

Field 19RSI is blank,

Field 19ERC> is greater than zero,

Reduce fields 19RER and 19CER to zero.

Do not attempt to change field 19ERC>, it is a computer-generated field.

If error codes 100 and/or 102 generate as a result, send TPNC 90 with literal 316. Edit "90-316" in the top left margin of page 1 of the return, following working trail procedures at IRM 3.12.13.23 Working Trails.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

02SSW

Taxable SS Wages

15

02SST

Taxable SS Tips

15

02MED

Taxable SS and Medicare Compensation

15

02XMT

Additional Taxable Medicare Wages and Tips

15

02FP

Number of Qualified Employees First Paid Exempt Compensation/Tips this Quarter

15

02NP

Number of Qualified Employees Paid Exempt Compensation/Tips this Quarter

15

19SCS

Qualified Sick Leave Wages

15

19SCF

Qualified Family Leave Wages

15

02TW>

Tax on Exempt Compensation/Tips Paid Qualified Employees During this Quarter Computer Generated

15

Invalid Condition: This error condition will generate when the difference between Fields 02TW and 02TW> is greater than the tolerance of ≡ ≡ ≡ ≡ ≡ ≡ ≡

Correction Procedures:

Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

If

Then

The entry in Field 02TW is correct per the return

Enter Field 02TW> underprint to Field 02TW.

Taxpayer made a true math error

Bring up the underprint Field 02TW> to Field 02TW. When EC 100 generates send TPNC 03

Fields Displayed:

Field Designator

Field Name

Length

01TXP

Tax Period

6

01CCC

Computer Condition Code

10

02PTC

Payroll Tax credit for increasing research

15

Invalid Condition: This error condition will generate when:

01CCC "Q" is present and no money amount on line 11a (Qualified small business payroll tax credit for increasing research activities), or

when 01CCC "Q" is not present but Line 11a has a money amount

Correction Procedures:

Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

If

Then

Form 941 Line 11a (Qualified small business payroll tax credit for increasing research activities) is blank and CCC Q is present

Delete CCC "Q" .

Remove F8974 and notate "Route to AM" . Route F8974 to AM via Campus ICT.

Continue processing the return.

The amount on Line 11a is a misplaced entry

Research (e.g., BMFOLT) to determine the correct field.

If research determines that the entry on field 02PTC belongs in another field (e.g., 02TT or 02DEP).

Delete field 02PTC amount and enter the amount into the correct field.

Continue processing the return.

Form 941 Line 11a has an amount but F8974 is not attached and there is no indication Code and Edit initiated correspondence

Correspond with the taxpayer with Letter 21C to request F8974.

Suspend with CC SSPND and Action Code 211.

The taxpayer sent F8974

Enter CCC "Q" and continue processing the return.

There is no reply from the taxpayer,

Enter "3" in Field 01CCC, Edit CCC "3" on the Return

Disallow the credit on line 11a and continue processing the return.

If Error Code 100 displays, send TPNC 38 to advise the taxpayer that we have disallowed their payroll tax credit research claim because we did not receive the F8974. If Error Code 102 displays, send TPNC 01.

Delinquent Returns- First Quarter 2017 There is an amount on Line 11, the return is a delinquent return and CCC "Q" is not present.

Disallow the credit on Line 11.

If EC 100 displays, send TPNC 90 stating, "We have disallowed your entry reported on Line 11 because the payroll tax credit is not valid for the first quarter 2017" .

Follow procedures below when an IRC 6020(b) return generates EC 095:

If

And

Then

The return was prepared under section 6020(b) by a Revenue Officer

There is an amount on Line 11a but Form 8974 is not attached

SSPND 640 using Form 4227 notating see Line 11a, and Form 8974

Route the return to: Internal Revenue Service 2970 Market St. Mail Stop 5- EO4.114 Philadelphia, PA 19104

Fields Displayed:

Field Designator

Field Name

Form Line

Length

01TXP

Tax Period

Top Right, page 1

6

02SSW

Taxable SS Wages

5a, Col 1

15

02SSW>

SS Wages Tax Computer

5a, Col 2

15

02SST

Taxable SS Tips

5b, Col 1

15

Taxable SS Tips Computer

5b, Col 2

15

19DA

Deferred Section 2302 (valid 202006 - 202012)

13b (Revisions 04-2020 and 07-2020 only)

15

19DA>

Half SS Wages and Tips Computer

n/a

15

19EMW

Qualified March wages paid (Valid for 202006 only)

24 (Revision 04-2020 only)

15

19DEE

Deferred employee SS tax (valid for 202009 and 202012 only)

24 (Revision 07-2020 only)

15

19DEE>

Deferred employee SS tax amount computer

n/a

15

Invalid Condition: This error condition will generate when the amount of deferred employer and/or employee social security tax exceeds the maximum deferral amounts.

For tax periods 202009 through 202012, Field 19DA> is not the "underprint" amount for 19DA. It is the maximum deferral amount of the employer share of social security tax. If 19DA is greater than 19DA>, that is not necessarily the source of the error, although it could be (see Correction Procedures below). When the computer compares the 19DA amount to 19DA>, it first subtracts the employee amount (19DEE) from the combined employer and employee amount (19DA).

Correction Procedures:

Check coding, transcription errors, and misplaced entries.

If

And

Then

The tax period is 202006

The entry in Field 19DA is greater than Field 19DA>

Enter the amount from Field 19DA> into Field 19DA.

If Error Code 102 generates as a result, send TPNC 40, in addition to any other applicable TPNCs.

The tax period is 202009 or 202012

The entry in Field 19DA is greater than Field 19DA>

Add the amount on line 24 (Field 19DEE) to the amount in field 19DA> and (if less than the amount on line 13b) enter into field 19DA.

If Error Code 102 generates as a result, send TPNC 41, in addition to any other applicable TPNCs.

The tax period is 202009 or 202012

The entry in Field 19DEE is greater than Field 19DEE>

Enter the amount from field 19DEE> into field 19DEE.

If Error Code 102 generates as a result, send TPNC 41, in addition to any other applicable TPNCs.

Fields Displayed:

Field Designator

Field Name

Length

02MRW

Exempt wages paid March

15

02MRT

Exempt wages paid March x .062

15

02MRT>

SS Tax Credit on March Exempt Compensation/Tips Computer Generated

15

Invalid Condition: This error condition will generate when Field 02MRT, Tax Credit on March Exempt Compensation/Tips Paid Qualified Employees- Taxpayer, is compared to Field 02MRT>, Tax Credit on March Exempt Compensation/Tips Paid Qualified Employees- Computer, and the difference is ≡ ≡ ≡ ≡ ≡ or greater.

Correction Procedures:

Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

If

Then

The entry in Field 02MRT is correct per the return, the return shows a dollar entry on line 12d, but the taxpayer left line 12e blank

Enter Field 02MRT> underprint to Field 02MRT.

After entering 02MRT> to Field 02MRT, EC 101 displays

Bring up Field 02STL> underprint and enter in Field 02STL.

If EC 102 generates due to the input for EC101, enter TPNC 01.

Fields Displayed:

Field Designator

Field Name

Length

01TXP

Tax Period

6

02FC

Current Quarter's Fraction of Cents

15

02SP

Current Quarter's Sick Pay

15

02TG

Current Quarter's Adjustments for Tips and Group Life Insurance

15

02QW

Current year’s income tax withholding

15

02QS

Prior quarter’s SS and Medicare taxes

15

02SW

Special Additions to Federal Income Tax

15

02SS

Special Additions to SS and Medicare Tax

15

02TA

Total Adjustments

15

02TA>

Total Adjustments Computer Generated

15

02TT

Total Tax

15

02TT>

Total Tax Computer Generated

15

Invalid Condition: This error condition will generate if there is a difference between the Fields 02TA and 02TA>, for tax periods beginning prior to January 1, 2010.

Correction Procedures:

Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

Procedures for year 2009 tax periods reported on Form 941, Rev 2009 or subsequent.

If

And

Then

Fields 02FC through 02TG are all blank, None, etc.

There is an entry in Field 02TA, (other than blank, zero, none, etc.)

1- Delete the Field 02TA. 2- If Error Code 100 generates, enter TPNC 16

Fields 02FC through 02TG have one or more entries

There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>.

1- Review return lines 7a through 7c to determine the reason for the Field 02TA> underprint mismatches (e.g., taxpayer transcription error, math error, Code and Edit error, etc.).

If you determine a correction is needed, such as, making a positive entry negative, make the correction. If the return goes away, disregard steps 2 and 3

Procedures for year 2009 tax periods reported on Form 941, Rev 2008 or prior.

If

And

Then

Fields 02FC through 02TG are all blank, None, etc.

There is an entry in Field 02TA, (other than blank, zero, none, etc.)

1- Delete the Field 02TA. 2- If Error Code 100 generates, enter TPNC 16

Fields 02FC through 02TG have one or more entries

There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>.

1- Review return lines 7a through 7g to determine if a taxpayer entry (or entries) appears on those lines. NOTE: Code and Edit was instructed to ALWAYS X any entry on lines 7d, 7e, 7f, or 7g when the Form 941, Rev 2008 or prior, was filed for any 2009 tax period. Code and Edit was also instructed to edit remarks on the front page margin to indicate whether (or not) a Form 941X was (or was not) attached. The assigned wording for these remarks is shown below. However, SCRIPS transcribers process perfect Form 941 returns (Rev 2008 and subsequent) first, bypassing Code and Edit. Thus, ERS may receive 941s, Rev 2008 and prior, with an entry on line(s) 7d, 7e, 7f, and/or 7g for a 2009 tax period which are X’d (or not X’d) and/or do not display on the screen display. This is due to SCRIPS not capturing the line(s) 7d, 7e, 7f, and 7g for a 2009 tax period. Thus, ERS examiners should not rely solely on the return editing of Code and Edit or the screen display since they may not match. Rather, before taking action, consider the return editing, screen display, and error condition together. 2- If the Form 941 Rev 2008 or prior, shows and entry on line 7d through 7g, use the Exception step procedures below rather than following procedures in #2. If there is one or more entries only on lines 7a, 7b and/or 7c, enter the underprint amount in Field 02TA> for the entry (or the total of the entries). This should resolve EC 098. If Error Code 100 generates, see #3 .•EXCEPTION:

Review the left margin on the return for an indication by Code and Edit that a Form 941X was attached to support the entry (or entries) on line(s) 7d through 7g of the return. Code and Edit was instructed to write 941X to AM (as applicable) if a Form 941X was attached, or CP102-941X if a Form 941X was not attached.

If the left margin shows Form 941X was attached, (or a copy of a Form 941X is attached), then enter the underprint amount in Field 02TA>. The underprint amount should be the entry (or the total of the entries) in Fields 02FC, 02SP, and/or 02TG, i.e., lines 7a, 7b and/or 7c of the return, to resolve EC 098. (See the applicable row below for Error Code 100 procedures.)

Due to EXCEPTION processing for an entry (or entries) on line(s) 7d through 7g, and Error Code 100 generated

The left margin of the return shows a Form 941X was attached (or a copy of the Form 941X is attached),

Enter TPNC 31. This will advise the taxpayer that their adjustment entry (or entries) is being processed in Accounts Management separately.

Due to EXCEPTION processing an entry (or entries) on line(s) 7d through 7g, and Error Code 100 generated

The left margin of the return indicated CP102-941X (or there was no indication on the left margin or copy of a Form 941X attached),

Enter TPNC32. This will advise the taxpayer that their adjustment entry (or entries) has been denied and that they should file a Form 941X to request the entry (or entries

Procedures for year 2008 or prior tax periods reported on Form 941, Rev 2008 or prior.

If

And

Then

Fields 02FC through 02SS are all blank, None, etc.

There is an entry in Field 02TA,

1- Delete the Field 02TA. 2- If Error Code 100 generates, enter TPNC 16

Fields 02FC through 02SS have one or more entries,

There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>.

1- Review return lines 7a through 7g to determine which lines have a taxpayer entry (or entries).

If lines 7d, 7e, 7f, and/or 7g are blank, enter the 02TA> underprint amount for the total of Fields 02FC, 02SP, and/or 02TG. This resolves Error Code 098 and generates Error Code 100. Then, enter TPNC 16.

If line 7d, 7e, 7f and/or 7g have an entry, review any attachments, for a copy of the 941X, or review the left margin of the return for an indication by Code and Edit that a Form 941X was attached.

If a copy of the Form 941X is attached, enter the underprint Field 02TA> amount to resolve Error Code 098 (move to last bullet)

If a copy of a Form 941X is not attached, (and there is no indication by Code and Edit of a 941X being attached, "X" the line adjustment. Enter the re-calculated 02TA> underprint amount. When Error Code 100 generates, enter TPNC 32 to advise the taxpayer to file a Form 941X for the adjustment in the future.

If Error Code 100 generates, enter TPNC 31 to advise the taxpayer the adjustment will be processed separately by Accounts Management.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

01TXP

Tax Period

6

01CCC

Computer Condition Code

10

02SSW

Taxable SS Wages

15

02SSW>

SS Wages Tax Computer

15

19SCS

Qualified Sick Leave Wages

15

Qualified Sick Leave Wages Computer

15

19SCF

Qualified Family Leave Wages

15

Qualified Family Leave Wages Computer

15

02SST

Taxable Social Security Tips

14

Taxable Social Security Tips Computer

15

02QTX

Section 3121 (Q) - Notice and Demand

15

02PTC

Payroll Tax credit for increasing research

15

02PTC>

Payroll Tax credit for increasing research Computer

15

Invalid Conditions: This error condition will generate when Field 02PTC, Payroll Tax credit for increasing research (taxpayer entered amount) is compared to Field 02PTC>, Payroll Tax credit for increasing research (computer generated amount), and the difference is ≡ ≡ ≡ ≡ ≡ or greater.

Correction Procedures:

Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

If

Then

Transcribed incorrectly,

Enter the correct entry from the return.

There is a difference between Field 02PTC> (Payroll Tax credit -Computer amount) and Field 02PTC (Payroll Tax credit - taxpayer amount) which ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,

1- Enter the lesser amount in Field 02PTC. 2- Send TPNC 36 or TPNC 37 (Spanish version) to inform the taxpayer that an error was made in computing small business payroll tax credit.

Valid TPNCs for EC 099 are 36 and 37.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

01TXP

Tax Period

6

01CCC

Computer Condition Code

10

0202

Wages, Tips and Other Compensation

15

02ITW

Total Income Tax Withheld

15

0204

Exempt SS/Medicare Wage Indicator

1

02SSW

Taxable SS Wages

15

19SCS

Qualified Sick Leave Wages (valid 202006 and subsequent)

15

19SCF

Qualified Family Leave Wages (valid 202006 and subsequent)

15

02SST

Taxable SS Tips

15

02MED

Taxable Medicare Compensation and Tips

15

02XMT

Additional Taxable Medicare Compensation and Tips

15

02TSM

Total SS and Medicare Tax

15

02TSM>

Total SS and Medicare Tax Computer Generated

15

02QTX

Section 3121 (q) Notice and Demand

15

02TW>

Tax on Exempt Compensation/Tips Paid Computer

15

02BA

Total Taxes Before Adjustments

15

02BA>

Total Taxes Before Adjustments Computer Generated

15

02FC

Current Quarter's Fraction of Cents

15

02SP

Current Quarter's Sick Pay

15

02TG

Current Quarter's adjustments for Tips and Group Life Insurance

15

02QW

Current year’s income tax withholding (2005 - 2008)

15

02QS

Prior quarter’s SS and Medicare taxes (2005 - 2008)

15

02SW

Special Additions to Federal Income Tax (2005 - 2008)

15

02SS

Special Additions to SS and Medicare Tax (2005 - 2008)

15

02TA

Total Adjustments (2005 - 201003)

15

02TA>

Total Adjustments Computer (2005 - 201003)

15

02PTC

Payroll tax credit for increasing research

15

02PTC>

Payroll tax credit for increasing research Computer

15

19QCS

Nonrefundable credit for sick and family leave taken before April 1, 2021 (valid 202006 and subsequent)

15

19CER

Nonrefundable Employee Retention Credit (202109 - 202112)

15

19QAS

Nonrefundable credit for sick and family leave taken after March 31, 2021, and before October 1, 2021 (valid 202106 and subsequent)

15

19CNA

Nonrefundable portion of ARP COBRA credit (valid 202106 - 202203)

15

02TT

Total Tax Taxpayer

15

02TT>

Total Tax Computer Generated

15

Invalid Conditions: The Error Condition will generate if Total Tax-Taxpayer (Field 02TT) differs by more than a tolerance with the Total Tax- Computer (Field 02TT>).

For year 2011 and subsequent, a difference ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ generates the error condition.

Correction Procedures:

Compare the displayed field entries with the correct lines on the return. Correct any coding or transcription errors. You can correct TP inconsistencies such as obvious transposition errors, obvious misplaced entries and/or obvious typographical errors.

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

If

Then

The taxpayer used the correct figure, but entered it on the wrong line,

Make the correction on the display screen. Do not attempt to correct any computer generated fields.

TP used the incorrect revision of Form 941

GTSEC 01 and ensure the correct tax period is entered into 01TXP.

Using the line descriptions on the form, ensure the line amounts are transcribed into the correct fields in IDRS.

TP enters an amount on a line that is not valid for the tax period for which they are filing,

Remove the amount and send TPNC 03

Check the tax period and make sure it correlates with the tax rate for social security and Medicare taxes. If the tax period can't be determined, process as a current quarter.

Tax Year

Compensation SS Rate

Tips SS Rate

Medicare Tax Rate

Additional Medicare Tax Rate

1991 - 2010

.1240

.1240

.029

0

2011

.1040

.1040

.029

0

2012

.1040

.1040

.029

0

2013 and subsequent

.1240

.1240

.029

.009

Follow procedures below when a IRC 6020(b) return generates EC 100:

If

Then

The return was prepared under IRC 6020(b) by a Revenue Officer.

Review the return to determine if it was signed by the Revenue Officer.

If the return is unsigned, forward the return to Rejects to have the DLN cancelled. After the DLN is cancelled, route the return as instructed in IRM 3.12.13.21.

If the return is signed, check the return for any transcription errors and correct the return, as needed. Do not correspond with the taxpayer.

The Total Tax on the return can't change. The Total Tax amount must be assessed as submitted by the Revenue Officer.

A CCC 4 is not present in 01CCC,

Enter CCC 4 in Field 01CCC.

The return was prepared under IRC 6020(b) by a Revenue Officer and Field 02TT is under-printing,

If the under-print amount is less than 02TT, add the difference to 02ITW.

If the under-print amount is more than 02TT, subtract the difference from 02ITW.

Process errors to Fields 0202, 02ITW and 0204 as follows:

If

And

Then

Line 2 has the same entry as line 3 (but not a negative entry)

The entry on line 3 was included by the taxpayer in the Total Tax entry,

No action is needed.

Line 2 has the same entry as line 3

The entry on line 3 was not included by the taxpayer in the Total Tax entry.

Enter TPNC 03. If EC 102 generates ripple the TPNC 03

The TP checked the box on line 4

CCC B is not entered

Enter "B" in Field 01CCC

Process errors to Fields 02DA, 02SSW, 02SST, 02MED, 02XMT, 02TSM, 02PTC and 02TT as follows:

If

And

Then

On the return, lines 2, 5a, 5a(i), 5a(ii), 5b, or 5c, column 1 or 2, are negative entries, (e.g., followed by a minus sign),

Treat entries as positive.

Field 02ITW (Line 3) is blank or zero, and Field 02TSM> is correct,

Subtract the computer-generated amount for total tax (Field 02TT>) from the taxpayer's amount for Field 02TT and enter the difference in Field 02ITW.

All the following are true:

Field 02TSM> agrees with line 5e on the return, and

All transcription is correct,

Field 02TT> (Total Tax-Computer) is less than Field 02TT (Total Tax-Taxpayer) by ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more,

1- Correspond with the taxpayer for an explanation of the difference in the tax.

If reply is received, enter the amount verified by the taxpayer.

If no reply is received add the difference between Fields 02TT and 02TT> to Field 02ITW.

All transcription is correct,

There is a difference between Field 02TT (Total Tax-Taxpayer) and 02TT> (Total Tax-Computer) ≡ ≡ ≡ ≡ ≡ ≡ ≡ or less,

Assign TPNC 03.

All transcription is correct,

Field 02TT> (Total Tax-Computer) is greater than Field 02TT (Total Tax-Taxpayer),

Assign TPNC 03.

Field 02PTC is present

There is a difference between Field 02PTC> (Total Payroll Tax Credit-Computer) and Field 02PTC (Total Payroll Tax Credit (taxpayer amount) ≡ ≡ ≡ ≡ or more,

Enter the lesser amount in Field 02PTV.

Send TPNC 36.

If EC 102 generates with no additional math errors send TPNC 01.

The return shows an incorrect total of social security and Medicare taxes on line 5e, or if line 5e is blank,

The difference between Field 02TSM and 02TSM> is equal to, or less than, ≡ ≡ ≡ ≡ ≡ ≡ ≡ (i.e., below the Error Code 080 tolerance),

1- Enter the Field 02TSM> amount to Field 02TSM.

Send TPNC 21 if the incorrect tax rate (.124 vs. .104) was used and this is the only error. If EC 102 generates send TPNC 01. Otherwise continue with the procedures below.

Process corrections to Fields 02FP, 02NP, 02EW and/or 02BA) Hiring Incentives for Restoring Employment (HIRE)), as follows: Accept taxpayers’ figures unless a true math error exists. Bring up the underprint Field 02TW> and send TPNC 03 if necessary

Exceptions to Processing:IRC 3509, Misclassified Employees, and/or Employee Reclassification.

If

And

Then

The taxpayer uses a different tax rate and cites Internal Revenue Code Section 3509, "Employee Reclassification" , Or "Misclassified Employees" .

The 941 tax period is 200812 or prior,

Delete DLN and send return to AM for resolution.

The taxpayer uses a different tax rate and cites Internal Revenue Code Section 3509, Employee Reclassification, Or Misclassified Employees

The 941 tax period is 200903 and subsequent,

1- Delete the entries in Fields 02SSW, 02SST and 02MED. 2- Enter the total tax amount in Field 02ITW. 3- If Error Code 046 generates, enter C in the Clear Field 4- When Error Code 100 generates, enter the Field 02TT> underprint amount.

Return shows Apfel vs. Minnesota, CSX vs. United States, Medical/ Dental Residents, and/or IRC 3121(b) (10), Quality Stores vs. United States.

There is no indication this return was seen by AM

Delete DLN and send return to AM for resolution.

Valid TPNCs for EC 100 are 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, 16, 21, 22, 27, 31, 32, 34, 35, 36, 37, 38, 39, 40, 41, and/or 90. When an invalid TPNC is entered, the Math Error will continue to be displayed until a valid TPNC is entered. Once a valid TPNC is transmitted to the record, the Math Error will clear the screen. If more than one code is applicable, they must be entered with the same transmission. See Exhibit 3.12.13-37.

Suspense/Rejects Procedures:

If

Then

Reply received,

Take correct action to adjust the fields.

No reply/or insufficient reply is received and Field 02TT> is larger than Field 02TT,

Send TPNC 07 and 27.

No reply/or insufficient reply is received and Field 02TT> is less than Field 02TT,

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

Fields Displayed:

Field Designator

Field Name

Length

02DEP

FTD Credit Claimed

15

02EC

Advance EIC

15

02CPM

COBRA payment amount

15

02MRW

Exempt March wages

15

02MRT

Exempt March wages x .062

15

02CEM

Number of Recipients Receiving COBRA

15

02MRT>

Tax on Exempt Compensation Paid in March Computer Generated

15

02STL

Sub Total FTD and COBRA

15

02STL>

Sub Total FTD and COBRA Computer

15

02B/R

Balance Due/Overpayment Taxpayer

15

02B/R>

Balance Due/Overpayment Taxpayer Computer Generated

15

Invalid Condition: An error will generate if Field 02STL (total of Fields 02DEP, 02CPM, and/or Field 02MRT (Form 941, revision April 2010 for 2nd, 3rd, or 4th quarter in year 2010), does not match the underprint for Field 02STL>.

Correction Procedures: The Error Code is applicable to Form 941s, revision date January 2009 through December 2012, with the COBRA lines 12a, and 12b, or to prior revisions of Form 941 with an indication by the taxpayer of a COBRA payment (or similar phrase) written on a line for a year 2009 or subsequent tax period.

Compare the displayed field entries with the correct lines on the return. Correct any coding or transcription errors. You can correct TP inconsistencies such as obvious transposition errors and/or obvious typographical errors.

If

And

Then

Field 02CPM reflects a negative figure,

The TP has subtracted Field 02CPM from Field 02DEP

Delete Field 02CPM and send TPNC 90 stating We have disallowed your negative entry reported on line 12a. If you need to adjust your COBRA credits claimed from a previous period, you must file Form 941-X.

Field 02STL has an entry,

Field 02DEP has an entry and Field 02CPM and/or 02MRT is blank

Bring up the Field 02STL underprint

Field 02STL has an entry,

Field 02DEP has an entry and Field 02CPM and/or 02MRT has an entry

1. Enter TPNC 33. 2. If Error Code 102 generates, enter the underprint amount to Field 02B/R.

Field 02STL has and entry

Field 02DEP is blank and Field 02CPM and/or 02MRT has an entry

Conduct research (e.g., BMFOLT) to determine whether the entry in 02CPM is the total Federal Tax Deposits (TC 650, 670, 716, etc.).

If research determines there were Federal Tax Deposits and the difference between the computed total of those transactions and Field 02CPM is within the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then, move the entry in 02CPM to 02DEP.

If in the bullet above, the difference between the computed total of those transactions and Field 02CPM is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter the computed total of the deposit transactions to Field 02DEP, then bring up the Field 02STL> underprint.

If research does not locate Federal Tax Deposits, enter TPNC 33. If Error Code 102 generates, enter the underprint amount to Field 02B/R.

Field 02STL has an entry

Fields 02DEP, 02CPM, 02MRT and 02B/R are blank, zero, dash or none

Delete the amount in Field 02STL and enter in Field 02B/R.

Field 02STL is blank

Field 02DEP has an entry and Field 02CPM and/or 02MRT is blank or has an entry

Bring up Field 02STL> underprint.

Valid TPNCs for EC 101 are 27, 33 and/or 90. See Exhibit 3.12.13-37.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Length

01CCC

Computer Condition Codes

10

01ARN

Applied Refund Indicator

1

02TT

Total Tax Taxpayer

15

02TT>

Total Tax Computer

15

02DEP

FTD Credit Claimed

15

19DA

Deferred Section 2302

15

19RCS

Refundable Credit for Sick and Family Leave taken before April 1, 2021

15

19RER

Refundable Credit for Employee Retention (202109 - 202112)

15

19RAS

Refundable Credit for Sick and Family Leave taken after March 31, 2021, and before October 1, 2021

15

19CRA

Refundable ARP COBRA credit

15

19APA

Form 2700 Advance Payments

15

02STL

Sub Total

15

02B/R

Balance Due/Refund

15

02B/R>

Balance Due/Refund Computer Generated

15

02MRT>

Tax Credit for March Exempt Compensation Paid Computer Generated

15

Invalid Conditions: Error Code 102 will generate if these conditions are met in the following priority order:

There is a difference between Total Tax-Computer and Total Tax-Taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and

There is a difference between Balance Due/Overpayment-Computer and Balance Due/Overpayment-Taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and

The computed differences in a. and b. above result in difference amounts, and the values are calculated without regard for a sign (i.e., plus or minus).

Correction Procedures:

If the return has IRC 6020(b) implications, process per the table below.

If

Then

A return is prepared under IRC 6020(b),

1- Review the return to determine if it was signed by the Revenue Officer.

If the return is not signed, forward the return to Rejects to have the DLN cancelled. After the DLN is cancelled, route the return as instructed in IRM 3.12.13.21.

If the return is signed, check the return for transcription errors, and correct the return as needed. Do not correspond with the taxpayer or enter a TPNC.

Enter CCC 4 for any return prepared under Internal Revenue Code Section 6020(b). Do not correspond with the taxpayer for any un-processable condition. See your supervisor if the document is un-processable.

Compare the displayed field entries with the correct lines on the return. Correct any coding or transcription errors. You can correct TP inconsistencies such as obvious transposition errors, obvious misplaced entries, and/or obvious typographical errors.

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

If

Then

Error Code 102 generates due to a ripple error caused by a previous math error,

Ripple previous TPNC. Enter TPNC 03, 07, 08, 40 or 41 as needed. Do not bring up the underprint.

There is a difference between Field 02TT> (Total Tax-Computer) and Field 02TT (Total Tax-Taxpayer) that is less than Error Code 100 tolerance (≡ ≡ ≡ ≡ ≡), but greater than Error Code 102 tolerance (≡ ≡ ≡ ≡ ≡),

Enter TPNC 03 to inform the taxpayer of the error.

(prior year scenario) Field 02DEP, Field 02STL (2013 - 2009 only) and Field 02B/R are the same dollar amount,

Delete the amount in Field 02DEP and Field 02STL (2013 - 2009 only).

Fields 02TT, 02DEP and 02B/R are the same dollar amount,

Delete Field 02DEP.

(prior year scenario) Field 02EC is negative

Leave the Field 02EC as a positive amount and send TPNC 19

(prior year scenario) AEIC is reported on ROFT (line 17, Form 941 or Schedule B) but is not entered on Line 9

Enter the amount in Field 02EC if needed, then recalculate Field 02DEP amount by subtracting the amount of AEIC. Enter the new amount in Field 02DEP and send TPNC 90 stating "We found the amount of the Federal Tax Deposits for the quarter differs from the amount we have credited to your account"

Field 02EC is no longer valid for tax periods 201103 and subsequent. If taxpayer is using older version Form 941 and has an entry for Field 02EC, delete the field entry and send TPNC 90. Inform taxpayer AEIC is not valid for current (2011 and subsequent) periods.

If

And

Then

The taxpayer states an overpayment from a previous quarter that is not already included in Field 02DEP,

Increase Field 02DEP by the overpayment amount from the previous quarter.

On the return, all lines between line 12 (02TT) and 14/15 (02B/R) are blank, zero, dash or "none" .

Field 02B/R differs from 02TT.

Enter the Field 02TT amount to Field 02B/R.

Lines 13a through 13f on the return are blank,

There is an amount on line 13g (Total deposits and refundable credits),

Research BMFOLT for the tax period of the return.

Add the TC 650 amounts (tax deposits).

If the total of the TC 650 amounts equals the amount on line 13g, enter that amount into field 02DEP.

If the sum of the TC 650 amounts do not equal the amount on line 13g, do not enter into field 02DEP.

There is an amount in any of the refundable credit fields (19DA, 19RCS, 19RER,19RAS OR 19CRA),

02TT is equal to 02B/R, (i.e., the taxpayer is not using them in the computation of Balance Due/Overpayment),

delete the credit field(s).

The return shows any of the refundable credit fields (19DA, 19RCS, 19RER,19RAS OR 19CRA), as a negative,

the taxpayer adds the credit(s) to the balance due (or subtracts it from the overpayment),

delete the credit field(s).

Fields 02TT, 02DEP and 19RAS are all the same amount,

line 13g (Total deposits and refundable credits) is also the same amount

delete field 19RAS.

You may also correct taxpayer inconsistencies, such as obvious transposition of figures, obvious typographical errors, or erroneously changed digits.

If

Then

Error Code 102 generates as a ripple error due to a difference between return line 5e and Field 02TSM> which is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,

Enter TPNC 07 to advise the taxpayer that there was an error in the social security/Medicare taxes computation.

The taxpayer entered figures on both the Balance due and Overpayment lines,

Delete the incorrect entry on the screen display. Verify that the correct entry has been transcribed in Field 02B/R.

Field 02B/R> is present due to the taxpayer sending a remittance larger than the amount due on the return and the return shows the overpayment should be credited to a prior or subsequent quarter or to another account,

Use CCC "X" . • If there is no other error on the return, the overpayment will be the underprint for Field 02B/R. Correct Field 02B/R (Balance Due/Overpayment) to reflect the "Balance Due" line on the return. • If zero, enter one cent ($.01) in Field 02B/R to prevent the remittance from generating into the Field and delete CCC "E" from Field 01CCC. SSPND with Action Code 351 to the Rejects unit. Rejects will transfer the payment to a prior or subsequent quarter or to another account.

All Fields are transcribed with the correct entry, but the taxpayer made an error computing the Balance Due/Overpayment (Field 02B/R>)

Assign TPNC 01.

Do not assign TPNC 01 if Error Code 102 only fell out due to a ripple of a previous error. In that case, resend the previously sent TPNC. Exception: If TPNC 21 was previously sent, send TPNC 01.

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

Valid TPNCs for EC 102 are 01, 03, 04, 05, 07, 08, 09, 10, 11, 16, 17, 18, 19, 20, 23, 27, 31, 32, 34, 35, 40, 41 and 90. When a tax examiner enters an invalid TPNC, the Math Error will continue to be displayed until a valid TPNC is entered. Once a valid TPNC is transmitted to the record, the Math Error will clear the screen. Therefore, if more than one code is applicable, they must be entered with the same transmission. See Exhibit 3.12.13-38.

Fields Displayed:

Field Designator

Field Name

Field Length

NC

Notice Codes

6

RMIT>

Remittance

15

01RCD

Received Date

8

01CCC

Computer Condition Code

10

02NP

Section 02 Not Present

02TT

Total Tax

15

Invalid Condition: This error condition will generate if an RPS Indicator or a Remittance Amount is present, CCC "G" is not present, and Total Tax is zero.

Correction Procedures:

If

Then

The return shows "Amended" , "Revised" , "Superseding" , "Duplicate" , or any other positive indication that the return is not the first one filed for the same tax period,

Enter CCC "G" in Field 01CCC and the received date in Field 01RCD.

The return is not to be "G" coded, and it is a taxable return,

Enter the Total Tax amount in Field 02TT (Total Tax-Taxpayer).

The taxpayer intended money for this quarter, Field 02TT (Total Tax) is zero, Field 01CCC does not have a "G" and a TPNC is present on the screen from a prior error,

Reassign any TPNC to clear Error Code 103. The money will refund to the taxpayer if no money is due on this account.

The taxpayer intended money for this quarter, Field 02TT (Total Tax) is zero, Field 01CCC does not have a "G" and no previously assigned TPNC is present on the screen,

Clear Error Code 103 by entering $.01 in Field 02TT (Total Tax-Taxpayer).

Both the document and the payment are numbered in error,

SSPND with Action Code 610 to Rejects to renumber the document.

You are unable to determine from the return where to apply the remittance amount,

1- Perform research to determine where the remittance should be applied. 2- If there is no information via research, correspond with the taxpayer following normal procedures and suspend the record with Action Code 21X

Valid TPNCs for EC 103 are 08, 27 and 90. When a tax examiner enters an invalid TPNC, the Math Error will continue to be displayed until a valid TPNC is entered. Once a valid TPNC is transmitted to the record, the Math Error will clear the screen. If more than one code is applicable, they must be entered with the same transmission. See Exhibit 3.12.13-38.

Suspense/Rejects Procedures:

If

Then

The taxpayer provides an adequate reply,

Rejects should transfer the credit to the correct tax class or module per reply.

Part or all of the payment is for another document tax class or module,

Suspend the record with SSPND 351 to the Reject Unit. Rejects Unit will research and follow procedures in IRM 3.12.38, for Split Remittance or Total Remittance items.

No reply or an inadequate reply is received,

1- Enter CCC"X" in Field 01CCC. ("X" will freeze the tax module from refunding or offsetting by generating a TC 570.) 2- Prepare Form 3893 to reinput the record as a non-remittance. CC SSPND 630. 3- Prepare Form 3465, Adjustment Request, to indicate the amount to be moved to the Unidentified File (URF).

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Field Length

CL

Clear Code

1

02TT

Total Tax

15

02DEP

FTD Payments Claimed

15

19DA

Deferred Section 2302

15

19RCS

Refundable Credit for Sick and Family Leave taken before April 1, 2021

15

19RER

Refundable Credit for Employee Retention (202109 - 202112)

15

19RAS

Refundable Credit for Sick and Family Leave taken after March 31, 2021, and before October 1, 2021

15

19CRA

Refundable ARP COBRA credit

15

19APA

Form 7200 Advance Payments

15

02STL

Sub Total

15

02B/R

Balance Due/Overpayment

15

02B/R>

Balance Due/Overpayment Computer Generated

15

02MRT>

Tax on March 2010 Exempt Compensation Computer Generated

15

Invalid Condition: This error condition will generate if:

Field 02B/R (Balance Due/Overpayment) is not zero,

Fields 02B/R> (Balance Due/ Overpayment-Computer) and 02B/R (Balance Due/Overpayment-Taxpayer) are not equal but, have the digits in the same sequence, plus or minus, and

The difference between Fields (02B/R> and 02B/R) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Correction Procedures:

Examine the return to determine if Field 02B/R on the return is correctly edited and transcribed, based upon the taxpayer's Total Tax figure and the Federal Tax Deposit, Advanced Earned Income Credit, and COBRA Premium Assisted Payments amounts.

If

Then

There is a positive indication that the taxpayer entered the amount on an incorrect line,

Change the sign of the field.

The Field 02B/R (Balance Due/Overpayment) is equal to zero,

Use CC GTSEC 01 and delete CCC "E" from Field 01CCC.

The amount in Field 02B/R agrees with the taxpayer's overpayment or balance due, and Error Code 104 is still present,

Enter "C" in the Clear Code Field.

The "C" in the Clear Code Field does not permit any other corrections to the record.

Section 19 field designators will not display if there are no entries in any Section 19 field.

Field Designator

Field Name

Field Length

CL

Clear Code

1

02DEP

FTD Payments Claimed

15

19DA

Deferred Section 2302

15

19RCS

Refundable Credit for Sick and Family Leave taken before April 1, 2021

15

19RER

Refundable Credit for Employee Retention (202109 - 202112)

15

19RAS

Refundable Credit for Sick and Family Leave taken after March 31, 2021, and before October 1, 2021

15

19CRA

Refundable ARP COBRA credit

15

19APA

Form 7200 Advance Payments

15

02STL

Sub Total

15

02B/R

Balance Due/Overpayment

15

02B/R>

Balance Due/Overpayment Computer Generated

15

02MRT>

Tax on Exempt March 2010 Compensation Computer Generated

15

Invalid Condition: Error Code 106 will generate if:

Field 02B/R (Balance Due/Overpayment) is not zero,

The signs of Fields 02B/R> (Balance Due/Overpayment-Computer) and 02B/R (Balance Due/Overpayment-Taxpayer) are not the same, and

The amount for Field 02B/R (Balance Due/Overpayment-Taxpayer) equals the amount for Field 02DEP (FTD credit).

Correction Procedures:

Examine the return to determine if the FTD Credits and Balance Due/Overpayment are correctly edited and transcribed, based upon the taxpayer's Total Tax figure, and the Federal Tax Deposit, Advance Earned Income credit, and COBRA Premium Assistance Payments amounts.

If

Then

The taxpayer's entry is misplaced,

Delete the entry. Note: If an FTD Penalty is present, it must be included in Field 02B/R (Balance Due/Overpayment).

The taxpayer has the FTD credit and sent a remittance for the same amount,

Adjust Field 02DEP by the amount of the remittance.

Amount of remittance is not reflected in Field 02B/R,

1- Adjust Field 02B/R by the remittance amount. 2- If the Field 02B/R is equal to zero, use CC GTSEC 01 and delete CCC "E" from Field 01CCC