Section 07 Errors

This subsection gives instructions for correcting Section 07 error conditions.

Section 07 has money amounts from the tax and payment section of Form 1065.

Section 07 is transcribed in dollars only.

Listed below are fields in Section 07 from Form 1065.

The field designators, title and location where the data it obtained from is shown in the table below:

Field Designator

Field Length

Field Title

Positive/ Negative

Location

0724

15

Interest due under look-back method - completed long-term contracts (attach Form 8697)

(+)

Form 1065, Line 24.

0725

15

Interest due under look-back method - income forecast method (attach Form 8866)

(+)

Form 1065, Line 25.

0726

15

BBA AAR imputed underpayment

(+)

Form 1065, Line 26.

0727

15

Other taxes

(+)

Form 1065, Line 27.

0728

15

Total balance due. Add lines 24 through 27

(+)

Form 1065, Line 28.

07EPE

15

Elective payment election amount from Form 3800

(+)

Form 1065, Line 29.

07EPV

15

Elective Payment election amount verified

(+)

Form 1065, Line 29

0730

15

Payment

(+)

Form 1065, Line 30.

07B/R

15

Amount Owed/Overpayment

(+/-)

Form 1065, Lines 31/32a.

Field 0724 is transcribed from Line 24, Form 1065.

Field 0725 is transcribed from Line 25, Form 1065.

Invalid Conditions: Fields 0724 and 0725 are invalid if:

Tax period is before 202301.

Fields are other than all numeric or blank.

Field lengths are more than 15 characters.

Fields are negative.

Correction Procedures:

Correct coding and transcription errors.

If the tax period is before 202301, delete the field.

If

Then

A refund is claimed on Form 8697 or Form 8866

Disallow the credit,

Delete the credit amount from Form 1065 refund, if included

Detach and route Form 8697 or Form 8866 to Accounts Management,