Note:

The Section 41 data (i.e., Taxable 940 Wages, Total Amount C. R. (Credit Reduction), State Code and Credit Reduction may be found in the bottom part of the Form 3552.

If the MFT is other than 10, delete Section 41 with Action Code 4.

If Field 01-G is 150, and there is an entry in Field 41-A and 41-B, a valid Credit Reduction State and Credit Reduction Wages must be present. If missing:

Reject with Action Code 3 and enter the state code from entity in Field 41-C.

Notate on Form 4227, "Must have credit reduction state and/or wages amount."

Attach 4227 to document and route to originator for research and correction.