Section 26. Tax Exempt Bond Error Resolution Procedures

(1) This transmits a complete revision to IRM 3.12.26, Tax Exempt Bond Error Resolution Procedures.

The instructions in this IRM are used for correcting errors made by filers of Tax Exempt Bond (TEB) returns (Forms 8038, 8038-B, 8038-CP, 8038-G, 8038-GC, 8038-T, 8038-TC, 8328 and 8703) as well as those made by Submission Processing Center operations. TEB processing is centralized at the Ogden IRS Campus.

(1) IRM 3.12.26.1 - Moved (1) to (2) Purpose.

(2) IRM 3.12.26.1.1 - Added Background information.

(3) IRM 3.12.26.1.2 - Added Authority information.

(4) IRM 3.12.26.1.3 - Added Roles and Responsibilities information.

(5) IRM 3.12.26.1.4 - Added Program Management Review information.

(6) IRM 3.12.26.1.5 - Added Program Controls information.

(7) IRM 3.12.26.1.6 - Added Terms and Acronyms information.

(8) IRM 3.12.26.1.7 - Added Related Sources information.

(9) IRM 3.12.26.3 - Removed Back ground to IRM 3.12.26.1.1.

(10) IRM 3.12.26.3.3.3 IPU 25U3280 issued 05-14-2025 - Removed FAST.

(11) IRM 3.12.26.4.8 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(12) IRM 3.12.26.4.8 IPU 25U0012 issued 01-03-2025 - Removed 45-day information.

(13) IRM 3.12.26.4.9 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(14) IRM 3.12.26.4.9 IPU 25U3351 issued 06-02-2025 - Changed FAST to SPP&O.

(15) IRM 3.12.26.5.3.3.1 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(16) IRM 3.12.26.5.6.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(17) IRM 3.12.26.5.7.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(18) IRM 3.12.26.6.5.1 - Added invalid conditions

(19) IRM 3.12.26.6.6.1 - Added invalid conditions.

(20) IRM 3.12.26.6.7.1 - Added invalid conditions.

(21) IRM 3.12.26.6.8.1 - Added invalid conditions.

(22) IRM 3.12.26.6.9.1 - Added invalid conditions.

(23) IRM 3.12.26.6.10.1 - Added invalid conditions.

(24) IRM 3.12.26.6.11.1 - Added invalid conditions.

(25) IRM 3.12.26.6.12.1 - Added invalid conditions.

(26) IRM 3.12.26.6.13.1 - Added invalid conditions.

(27) IRM 3.12.26.6.14.1 - Added invalid conditions.

(28) IRM 3.12.26.6.15.1 - Added invalid conditions.

(29) IRM 3.12.26.6.16.1 - Added invalid conditions.

(30) IRM 3.12.26.6.17.1 - Added invalid conditions.

(31) IRM 3.12.26.6.18.1 - Added invalid conditions.

(32) IRM 3.12.26.6.19.1 - Added invalid conditions.

(33) IRM 3.12.26.6.20.1 - Added invalid conditions.

(34) IRM 3.12.26.6.29.1 - Added invalid conditions.

(35) IRM 3.12.26.6.30.1 - Added invalid conditions.

(36) IRM 3.12.26.6.31.1 - Added invalid conditions.

(37) IRM 3.12.26.6.32.1 - Added invalid conditions.

(38) IRM 3.12.26.7.2.1 - Added invalid conditions.

(39) IRM 3.12.26.7.3.1 - Added invalid conditions.

(40) IRM 3.12.26.7.4.1 - Added invalid conditions.

(41) IRM 3.12.26.7.5.1 - Added invalid conditions.

(42) IRM 3.12.26.7.6.1 - Added invalid conditions.

(43) IRM 3.12.26.7.8.1 - Added invalid conditions.

(44) IRM 3.12.26.7.9.1 - Added invalid conditions.

(45) IRM 3.12.26.7.10.1 - Added invalid conditions.

(46) IRM 3.12.26.7.12.1 - Added invalid conditions.

(47) IRM 3.12.26.7.14.1 - Added invalid conditions.

(48) IRM 3.12.26.7.15.1 - Added invalid conditions.

(49) IRM 3.12.26.7.16.1 - Added invalid conditions.

(50) IRM 3.12.26.7.17.1 - Added invalid conditions.

(51) IRM 3.12.26.7.18.1 - Added invalid conditions.

(52) IRM 3.12.26.7.19.1 - Added invalid conditions.

(53) IRM 3.12.26.7.20.1 - Added invalid conditions.

(54) IRM 3.12.26.7.21.1 - Added invalid conditions.

(55) IRM 3.12.26.7.23.1 - Added invalid conditions.

(56) IRM 3.12.26.7.24.1 - Added invalid conditions.

(57) IRM 3.12.26.7.26.1 - Added invalid conditions.

(58) IRM 3.12.26.8.1.1 - Added invalid conditions.

(59) IRM 3.12.26.8.2.1 - Added invalid conditions.

(60) IRM 3.12.26.8.3.1 - Added invalid conditions.

(61) IRM 3.12.26.8.6.1 - Added invalid conditions.

(62) IRM 3.12.26.8.7.1 - Added invalid conditions.

(63) IRM 3.12.26.8.8.1 - Added invalid conditions.

(64) IRM 3.12.26.8.9.1 - Added invalid conditions.

(65) IRM 3.12.26.8.10.1 - Added invalid conditions.

(66) IRM 3.12.26.8.11.1 - Added invalid conditions.

(67) IRM 3.12.26.8.12.1 - Added invalid conditions.

(68) IRM 3.12.26.8.13.1 - Added invalid conditions.

(69) IRM 3.12.26.8.14.1 - Added invalid conditions.

(70) IRM 3.12.26.8.15.1 - Added invalid conditions.

(71) IRM 3.12.26.8.16.1 - Added invalid conditions.

(72) IRM 3.12.26.8.17.1 - Added invalid conditions.

(73) IRM 3.12.26.8.18.1 - Added invalid conditions.

(74) IRM 3.12.26.8.19.1 - Added invalid conditions.

(75) IRM 3.12.26.8.20.1 - Added invalid conditions.

(76) IRM 3.12.26.8.21.1 - Added invalid conditions.

(77) IRM 3.12.26.8.22.1 - Added invalid conditions.

(78) IRM 3.12.26.9.1.1 - Added invalid conditions.

(79) IRM 3.12.26.9.2.1 - Added invalid conditions.

(80) IRM 3.12.26.9.3.1 - Added invalid conditions.

(81) IRM 3.12.26.9.4.1 - Added invalid conditions.

(82) IRM 3.12.26.9.5.1 - Added invalid conditions.

(83) IRM 3.12.26.9.6.1 - Added invalid conditions.

(84) IRM 3.12.26.9.7.1 - Added invalid conditions.

(85) IRM 3.12.26.9.8.1 - Added invalid conditions.

(86) IRM 3.12.26.9.9.1 - Added invalid conditions.

(87) IRM 3.12.26.9.10.1 - Added invalid conditions.

(88) IRM 3.12.26.9.11.1 - Added invalid conditions.

(89) IRM 3.12.26.9.12.1 - Added invalid conditions.

(90) IRM 3.12.26.9.13.1 - Added invalid conditions.

(91) IRM 3.12.26.9.14.1 - Added invalid conditions.

(92) IRM 3.12.26.9.15.1 - Added invalid conditions.

(93) IRM 3.12.26.9.16.1 - Added invalid conditions.

(94) IRM 3.12.26.9.21.1 - Added invalid conditions.

(95) IRM 3.12.26.9.22.2 - Added invalid conditions.

(96) IRM 3.12.26.10.21 - Added Action Code location.

(97) IRM 3.12.26.10.21.1 - Added invalid conditions.

(98) IRM 3.12.26.13.1.1 - Added invalid conditions.

(99) IRM 3.12.26.13.2.1 - Added invalid conditions.

(100) IRM 3.12.26.13.3.1 - Added invalid conditions.

(101) IRM 3.12.26.13.4.1 - Added invalid conditions.

(102) IRM 3.12.26.13.6.1 - Added invalid conditions.

(103) IRM 3.12.26.13.7.1 - Added invalid conditions.

(104) IRM 3.12.26.13.8.1 - Added invalid conditions.

(105) IRM 3.12.26.13.9.1 - Added invalid conditions.

(106) IRM 3.12.26.13.10.1 - Added invalid conditions.

(107) IRM 3.12.26.13.11.1 - Added invalid conditions.

(108) IRM 3.12.26.13.12.1 - Added invalid conditions.

(109) IRM 3.12.26.13.13.1 - Added invalid conditions.

(110) IRM 3.12.26.13.14.1 - Added invalid conditions.

(111) IRM 3.12.26.13.15.1 - Added invalid conditions.

(112) IRM 3.12.26.13.16.1 - Added invalid conditions.

(113) IRM 3.12.26.13.17.1 - Added invalid conditions.

(114) IRM 3.12.26.14.1.1 - Added invalid conditions.

(115) IRM 3.12.26.14.2.1 - Added invalid conditions.

(116) IRM 3.12.26.14.3.1 - Added invalid conditions.

(117) IRM 3.12.26.14.4.1 - Added invalid conditions.

(118) IRM 3.12.26.14.5.1 - Added invalid conditions.

(119) IRM 3.12.26.14.6.1 - Added invalid conditions.

(120) IRM 3.12.26.14.7.1 - Added invalid conditions.

(121) IRM 3.12.26.14.8.1 - Added invalid conditions.

(122) IRM 3.12.26.14.9.1 - Added invalid conditions.

(123) IRM 3.12.26.14.10.1 - Added invalid conditions.

(124) IRM 3.12.26.14.11.1 - Added invalid conditions.

(125) IRM 3.12.26.14.12.1 - Added invalid conditions.

(126) IRM 3.12.26.14.13.1 - Added invalid conditions.

(127) IRM 3.12.26.14.14.1 - Added invalid conditions.

(128) IRM 3.12.26.14.15.1 - Added invalid conditions.

(129) IRM 3.12.26.14.16.1 - Added invalid conditions.

(130) IRM 3.12.26.14.17.1 - Added invalid conditions.

(131) IRM 3.12.26.14.18.1 - Added invalid conditions.

(132) IRM 3.12.26.14.19.1 - Added invalid conditions.

(133) IRM 3.12.26.15.3.1 - Added invalid conditions.

(134) IRM 3.12.26.15.4.1 - Added invalid conditions.

(135) IRM 3.12.26.15.5.1 - Added invalid conditions.

(136) IRM 3.12.26.15.6.1 - Added invalid conditions.

(137) IRM 3.12.26.15.7.1 - Added invalid conditions.

(138) IRM 3.12.26.15.8.1 - Added invalid conditions.

(139) IRM 3.12.26.15.9.1 - Added invalid conditions.

(140) IRM 3.12.26.15.10.1 - Added invalid conditions.

(141) IRM 3.12.26.15.11.1 - Added invalid conditions.

(142) IRM 3.12.26.15.12.1 - Added invalid conditions.

(143) IRM 3.12.26.15.13.1 - Added invalid conditions.

(144) IRM 3.12.26.15.14.1 - Added invalid conditions.

(145) IRM 3.12.26.17.3.1 - Added invalid conditions.

(146) IRM 3.12.26.17.4.1 - Added invalid conditions.

(147) IRM 3.12.26.17.5.1 - Added invalid conditions.

(148) IRM 3.12.26.17.6.1 - Added invalid conditions.

(149) IRM 3.12.26.17.7.1 - Added invalid conditions.

(150) IRM 3.12.26.17.8.1 - Added invalid conditions.

(151) IRM 3.12.26.17.9.1 - Added invalid conditions.

(152) IRM 3.12.26.17.10.1 - Added invalid conditions.

(153) IRM 3.12.26.17.11.1 - Added invalid conditions.

(154) IRM 3.12.26.17.12.1 - Added invalid conditions.

(155) IRM 3.12.26.17.13.1 - Added invalid conditions.

(156) IRM 3.12.26.17.14.1 - Added invalid conditions.

(157) IRM 3.12.26.17.16.1 - Added invalid conditions.

(158) IRM 3.12.26.17.17.1 - Added invalid conditions.

(159) IRM 3.12.26.17.18.1 - Added invalid conditions.

(160) IRM 3.12.26.17.19.1 - Added invalid conditions.

(161) IRM 3.12.26.17.20.1 - Added invalid conditions.

(162) IRM 3.12.26.17.21.1 - Added invalid conditions.

(163) IRM 3.12.26.17.22.1 - Added invalid conditions.

(164) IRM 3.12.26.17.23.1 - Added invalid conditions.

(165) IRM 3.12.26.17.24.1 - Added invalid conditions.

(166) IRM 3.12.26.18.6.1 - Added invalid conditions.

(167) IRM 3.12.26.18.7.1 - Added invalid conditions.

(168) IRM 3.12.26.18.8.1 - Added invalid conditions.

(169) IRM 3.12.26.18.9.1 - Added invalid conditions.

(170) IRM 3.12.26.18.10.1 - Added invalid conditions.

(171) IRM 3.12.26.18.11.1 - Added invalid conditions.

(172) IRM 3.12.26.18.12.1 - Added invalid conditions.

(173) IRM 3.12.26.18.14.1 - Added invalid conditions.

(174) IRM 3.12.26.18.15.1 - Added invalid conditions.

(175) IRM 3.12.26.18.16.1 - Added invalid conditions.

(176) IRM 3.12.26.18.17.1 - Added invalid conditions.

(177) IRM 3.12.26.18.18.1 - Added invalid conditions.

(178) IRM 3.12.26.18.19.1 - Added invalid conditions.

(179) IRM 3.12.26.18.20.1 - Added invalid conditions.

(180) IRM 3.12.26.18.21.1 - Added invalid conditions.

(181) IRM 3.12.26.18.22.1 - Added invalid conditions.

(182) IRM 3.12.26.18.23.1 - Added invalid conditions.

(183) IRM 3.12.26.18.24.1 - Added invalid conditions.

(184) IRM 3.12.26.18.25.1 - Added invalid conditions.

(185) IRM 3.12.26.18.26.1 - Added invalid conditions.

(186) IRM 3.12.26.18.27.1 - Added invalid conditions.

(187) IRM 3.12.26.18.28.1 - Added invalid conditions.

(188) IRM 3.12.26.18.29.1 - Added invalid conditions.

(189) IRM 3.12.26.18.30.1 - Added invalid conditions.

(190) IRM 3.12.26.18.31.1 - Added invalid conditions.

(191) IRM 3.12.26.18.32.1 - Added invalid conditions.

(192) IRM 3.12.26.18.33.1 - Added invalid conditions.

(193) IRM 3.12.26.18.34.1 - Added invalid conditions.

(194) IRM 3.12.26.18.35.1 - Added invalid conditions.

(195) IRM 3.12.26.18.36.1 - Added invalid conditions.

(196) IRM 3.12.26.18.37.1 - Added invalid conditions.

(197) IRM 3.12.26.18.38.1 - Added invalid conditions.

(198) IRM 3.12.26.19.1.1 - Added invalid conditions.

(199) IRM 3.12.26.19.2.1 - Added invalid conditions.

(200) IRM 3.12.26.19.3.1 - Added invalid conditions.

(201) IRM 3.12.26.19.4.1 - Added invalid conditions.

(202) IRM 3.12.26.19.5.1 - Added invalid conditions.

(203) IRM 3.12.26.19.6.1 - Added invalid conditions.

(204) IRM 3.12.26.19.7.1 - Added invalid conditions.

(205) IRM 3.12.26.19.8.1 - Added invalid conditions.

(206) IRM 3.12.26.19.8.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(207) IRM 3.12.26.19.8.2 IPU 25U3351 issued 06-02-2025 - Changed GECU to SPP&O.

(208) IRM 3.12.26.19.9.1 - Added invalid conditions.

(209) IRM 3.12.26.19.10.1 - Added invalid conditions.

(210) IRM 3.12.26.19.11.1 - Added invalid conditions.

(211) IRM 3.12.26.19.12.1 - Added invalid conditions.

(212) IRM 3.12.26.19.17.1 - Added invalid conditions.

(213) IRM 3.12.26.20.2.1 - Added invalid conditions.

(214) IRM 3.12.26.20.3.1 - Added invalid conditions.

(215) IRM 3.12.26.20.4.1 - Added invalid conditions.

(216) IRM 3.12.26.20.5.1 - Added invalid conditions.

(217) IRM 3.12.26.20.6.1 - Added invalid conditions.

(218) IRM 3.12.26.20.7.1 - Added invalid conditions.

(219) IRM 3.12.26.20.8.1 - Added invalid conditions.

(220) IRM 3.12.26.20.9.1 - Added invalid conditions.

(221) IRM 3.12.26.20.10.1 - Added invalid conditions.

(222) IRM 3.12.26.20.11.1 - Added invalid conditions.

(223) IRM 3.12.26.20.12.1 - Added invalid conditions.

(224) IRM 3.12.26.20.13.1 - Added invalid conditions.

(225) IRM 3.12.26.20.14.1 - Added invalid conditions.

(226) IRM 3.12.26.20.15.1 - Added invalid conditions.

(227) IRM 3.12.26.20.16.1 - Added invalid conditions.

(228) IRM 3.12.26.20.17.1 - Added invalid conditions.

(229) IRM 3.12.26.20.18.1 - Added invalid conditions.

(230) IRM 3.12.26.20.19.1 - Added invalid conditions.

(231) IRM 3.12.26.20.20.1 - Added invalid conditions.

(232) IRM 3.12.26.20.21.1 - Added invalid conditions.

(233) IRM 3.12.26.21 IPU 25U0012 issued 01-03-2025 - Removed (5) regarding COVID procedures order.

(234) IRM 3.12.26.21 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(235) IRM 3.12.26.21 IPU 25U3351 issued 06-02-2025 - Changed FAST to SPP&O.

(236) IRM 3.12.26.21.1.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(237) IRM 3.12.26.21.2.1 - Added invalid conditions.

(238) IRM 3.12.26.21.3.1 - Added invalid conditions.

(239) IRM 3.12.26.21.3.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(240) IRM 3.12.26.21.4.1 - Added invalid conditions.

(241) IRM 3.12.26.21.4.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(242) IRM 3.12.26.21.5.1 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(243) IRM 3.12.26.21.5.1 - Added invalid conditions.

(244) IRM 3.12.26.21.6.1 - Added invalid conditions.

(245) IRM 3.12.26.21.6.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(246) IRM 3.12.26.21.7 IPU 25U3280 issued 05-14-2025- Changed FAST to SPP&O Analyst.

(247) IRM 3.12.26.21.7.1 - Added invalid conditions.

(248) IRM 3.12.26.21.8.1 - Added invalid conditions.

(249) IRM 3.12.26.21.9.1 - Added invalid conditions.

(250) IRM 3.12.26.21.10.1 - Added invalid conditions.

(251) IRM 3.12.26.21.11.1 - Added invalid conditions.

(252) IRM 3.12.26.21.12.1 - Added invalid conditions.

(253) IRM 3.12.26.21.13.1 - Added invalid conditions.

(254) IRM 3.12.26.21.14.1 - Added invalid conditions.

(255) IRM 3.12.26.21.15.1 - Added invalid conditions.

(256) IRM 3.12.26.21.16.1 - Added invalid conditions.

(257) IRM 3.12.26.21.17.1 - Added invalid conditions.

(258) IRM 3.12.26.21.17.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(259) IRM 3.12.26.21.18.1 - Added invalid conditions.

(260) IRM 3.12.26.21.19.1 - Added invalid conditions.

(261) IRM 3.12.26.21.20.1 - Added invalid conditions.

(262) IRM 3.12.26.21.21.1 - Added invalid conditions.

(263) IRM 3.12.26.21.23.1 - Added invalid conditions.

(264) IRM 3.12.26.21.24.1 - Added invalid conditions.

(265) IRM 3.12.26.21.25.1 - Added invalid conditions.

(266) IRM 3.12.26.22.1.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(267) IRM 3.12.26.22.2.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(268) IRM 3.12.26.22.10.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(269) IRM 3.12.26.22.11.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(270) IRM 3.12.26.22.13.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(271) IRM 3.12.26.22.14.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(272) IRM 3.12.26.22.15.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(273) IRM 3.12.26.22.16.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(274) IRM 3.12.26.22.17.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(275) IRM 3.12.26.22.18.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(276) IRM 3.12.26.22.19.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(277) IRM 3.12.26.22.30.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(278) IRM 3.12.26.24.2.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(279) IRM 3.12.26.24.3.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(280) IRM 3.12.26.24.4.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(281) IRM 3.12.26.24.18.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(282) IRM 3.12.26.24.54.2(4) IPU 25U3280 issued 05-14-2025 - Removed 45-day information.

(283) IRM 3.12.26.24.46.1 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(284) IRM 3.12.26.24.46.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(285) IRM 3.12.26.24.48.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(286) IRM 3.12.26.24.49.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(287) IRM 3.12.26.24.50.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(288) IRM 3.12.26.24.51.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(289) IRM 3.12.26.24.52.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(290) IRM 3.12.26.24.53.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(291) IRM 3.12.26.24.54.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(292) IRM 3.12.26.24.57.2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(293) IRM 3.12.26.27.1.1 - Added invalid conditions.

(294) IRM 3.12.26.27.2.1 - Added invalid conditions.

(295) IRM 3.12.26.27.3.1 - Added invalid conditions.

(296) IRM 3.12.26.27.4.1 - Added invalid conditions.

(297) IRM 3.12.26.27.5.1 - Added invalid conditions.

(298) IRM 3.12.26.28.1.1 - Added invalid conditions.

(299) IRM 3.12.26.28.2.1 - Added invalid conditions.

(300) IRM 3.12.26.28.3.1 - Added invalid conditions.

(301) IRM 3.12.26.28.4.1 - Added invalid conditions.

(302) IRM 3.12.26.28.5.1 - Added invalid conditions.

(303) IRM 3.12.26.28.6.1 - Added invalid conditions.

(304) IRM 3.12.26.28.7.1 - Added invalid conditions.

(305) IRM 3.12.26.28.8.1 - Added invalid conditions.

(306) IRM 3.12.26.28.9.1 - Added invalid conditions.

(307) IRM 3.12.26.28.10.1 - Added invalid conditions.

(308) IRM 3.12.26.28.11.1 - Added invalid conditions.

(309) IRM 3.12.26.28.12.1 - Added invalid conditions.

(310) IRM 3.12.26.28.13.1 - Added invalid conditions.

(311) IRM 3.12.26.28.14.1 - Added invalid conditions.

(312) IRM 3.12.26.28.15.1 - Added invalid conditions.

(313) IRM 3.12.26.28.16.1 - Added invalid conditions.

(314) IRM 3.12.26.28.17.1 - Added invalid conditions.

(315) Exhibit 3.12.26-1 IPU 25U0012 issued 01-03-2025 - Added leap year to title.

(316) Exhibit 3.12.26-2 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(317) Exhibit 3.12.26-4 IPU 25U3280 issued 05-14-2025 - Changed FAST to SPP&O Analyst.

(318) Moved sections to be in form number order.

(319) Minor editorial changes made throughout this IRM (e.g., line number updates, spelling, punctuation, links, formatting, etc.).

Virginia F. Puddister Acting Director, Shared Services Tax Exempt and Government Entities

Purpose: Provide instructions for Input Correction, Error Resolution System (ERS) with a means to resolve errors made by taxpayers and correct errors made during campus processing. The information in this Internal Revenue Manual (IRM) provides instructions for Taxpayer Services Error Resolution Tax Examiners to correct errors for the returns below:

Form 8038, Information Return for Tax Exempt Private Activity Bond Issues;

Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds;

Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds;

Form 8038-G, Information Return for Tax Exempt Government Bonds;

Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales;

Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate;

Form 8038-TC, Information Return for Tax Credit and Specified Tax Credit Bonds;

Form 8328, Carryforward Election of Unused Private Activity Bond Volume Cap;

Form 8703, Annual Certification of a Residential Rental Project

Audience: Taxpayer Services (TS), Submission Processing for the use of the following audience located at the Ogden Campus:

ERS Supervisory Tax Examining Assistant, Lead Tax Examining Technician, Tax Examining Technician.

Rejects Supervisory Tax Examining Technician, Lead Tax Examining Technician, Tax Examining Technician.

Policy Owner: Director, Government Entities/Shared Services, Business Systems Planning, Tax Exempt and Government Entities.

Program Owner: Tax Exempt and Government Entities (TE/GE) Submission Processing Programs and Oversight (SPP&O).

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

Accounts Management (AM)

Compliance

Statistics of Income (SOI)

Submission Processing (SP)

Taxpayer Advocate Service (TAS)

Tax Exempt and Government Entities (TE/GE)

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

Error Resolution Systems (ERS) examiners use the instructions in this subsection to correct errors made by:

Taxpayers

Their representatives

Tax Exempt Bond (TEB) Submission Processing Center operations, which is centralized at the Ogden Campus.

Follow these procedures for correcting tax exempt bond form errors on screen display. If there’s a conflict of instructions between general and specific instructions, follow specific procedures.

These forms are filed and processed only at the Ogden Submission Processing Campus (OSPC).

Records appear on ERS inventory because of validity, consistency, and math, and/or input error. There are no math error checks in this IRM.

To expedite resolution, you can call the filer to resolve problems with ERS inventory.

All Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements.

The Director, Tax Exempt Government Entities, Business Systems Planning (BSP), Submission Processing Program and Oversight (SPP&O) is responsible for monitoring operational performance for the Exempt Organization Submission Processing campus.

The Operations Manager monitors operational performance for their operation.

The Team Manager/Lead monitors performance monitoring and ensures employees have tools to perform their duties.

The Team Employees are responsible to follow the instructions contained in this IRM and keep updated IRM procedures.

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

Program Effectiveness: is measured using the following:

Embedded Quality Submission Processing (EQSP)

Balanced Measures

Managerial reviews

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

The section lists and defines some of the acronyms and terms used in this manual:

Abbreviation Acronyms

Explanation

AC

Action Code

ADP

Automated Data Processing

BMF

Business Master File

BSP

Business Systems Planning

CAF

Centralized Authorization File

CC

Command Code

CCC

Computer Condition Code

CI

Criminal Investigation

CUSIP

Committee on Uniform Securities Identification Procedures

DLN

Document Locator Number

Doc. Code

Document Code

EIN

Employer Identification Number

EQSP

Embedded Quality Submission Processing

ERS

Error Resolution System

IDRS

Integrated Data Retrieval System

IPD

Interest Payment Date

IRC

Internal Revenue Code

IRS

Internal Revenue Service

LB&I

Large Business and International

MCC

Mortgage Credit Certificate

MF

Master File

MFT

Master File Tax

M/S

Mail Stop

NAICS

North American Industry Classification System

NMF

Non-Master File

NYLZ

New York Liberty Zone

OAR

Operations Assistance Request

OSPC

Ogden Submission Processing Center

P&A

Planning and Analysis

POA

Power of Attorney

PTIN

Preparer’s Tax Identification Number

Rev. Proc.

Revenue Procedure

SB/SE

Small Business/Self Employed

SERP

Servicewide Electronic Research Program

SFR

Substitute for Return

SLA

Service Level Agreements

SSN

Social Security Number

SPP&O

Submission Processing Program & Oversight

SOL

Statute of Limitation

T-Line

Transaction Line

TAS

Taxpayer Advocate Service

TBOR

Taxpayer Bill of Rights

TC

Transaction Code

TEB

Tax Exempt Bond

TEGE

Tax Exempt Governmental Entities

TIA

Tax Information Authorization

TIN

Taxpayer Identification Number

TS

Taxpayer Services

WOTC

Work Opportunity Tax Credit

Use these definitions throughout this IRM:

TERM

DEFINITION

ARBITRAGE

The purchase and sale of the same or equivalent security in order to profit from price differences. The term arbitrage applies to all types of investments.

CUSIP

An acronym for Committee on Uniform Securities Identification Procedures. Issuers obtain CUSIP numbers for their Municipal Bonds.

Date of Issue

This is usually the date on which the Issuer physically exchanges the bonds that are part of the issue for the underwriter's (or other purchaser's) funds. It might also be the date the interest starts to accrue, if this obligation is for a lease or installment sale.

Issuer

The name of the entity issuing or selling the bonds, not necessarily the name of the entity receiving the benefit of the financing.

Maturity Date

The date on which the entire outstanding principal of the bond must be paid to the bondholder.

Report Number

A unique three digit number the IRS assigns to the bond issue to differentiate individual bond returns and to comply with programming requirements.

Willful Neglect

Conscious, intentional failure to comply with the provisions of the IRC, or reckless indifference to such provisions.

Debt Service Schedule

The debt service schedule provides various information such as interest amounts, subsidy payments, and dates. It’s a required attachment to Form 8038-B, Form 8038-CP and Form 8038-TC (when required).

The following is a list of related resources:

Servicewide Electronic Research Program (SERP).

Integrated Data Retrieval System (IDRS).

IRM 3.11.26 SC Returns and Document Analysis, Miscellaneous Tax Exempt Governmental Entities (TE/GE) Tax Returns.

IRM 3.24.26 Miscellaneous Tax Exempt and Government Entities (TE/GE) Returns.

The operating divisions established National Service Level Agreements (SLAs). This document contains specifics regarding SLAs that pertain to activities performed by use of this IRM.

The operating divisions established Service Level Agreements (SLAs). This document contains specific information on SLAs on activities that this IRM’s users do.

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, TAS Operations Assistance Request (OAR) Process.

Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps 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 Taxpayer Advocate reached agreements with the Commissioners or Chiefs of the Tax Exempt Government Entities (TE/GE), Taxpayer Services (TS), Small Business/Self Employed (SB/SE) Division, Criminal Investigation (CI), Independent Office of 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). SLAs contain basic requirements for handling TAS-referred cases, and includes specific actions to take on TAS referrals and specific time frames to complete those actions.

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

To use this IRM, you must also be familiar with:

IRM 3.11.26, Miscellaneous Tax Exempt and Government Entities (TE/GE) Returns, which provides document perfection (Code and Edit) procedures.

IRM 3.24.26, Miscellaneous Tax Exempt and Government Entities (TE/GE) Returns, for DIS input of the ISRP system, and

IRM 3.12.38, ERS General Instructions.

Records are placed into Error Resolution or Rejects inventories for correction.

Once a record is accessed and displayed on the screen, resolve it any of these ways:

Fully correct the record.

Place the record in suspense until additional information is received.

Reject the record from pipeline processing.

Corrections include correcting errors in editing, transcription or taxpayer errors. Perform any instruction for completing a correspondence action sheet and annotating the missing item(s) by checking the box next to the reason if present on the action sheet, or by writing out the reason in an open paragraph if the IRM states to use the open paragraph.

In the header portion of each record, the error screen displays will show:

Document Locator Number (DLN),

Employer Identification Number (EIN),

Name Control or Check Digit

Before you make corrections to the error screen displays, verify that the DLN of the display matches the DLN of the document.

If you determine that a "mixed data" situation exists, stop processing and give the block of work to your manager. Management will either:

Determine if the mixed data can be corrected via the terminal screen display.

Take action to have the block deleted and re-entered.

When making corrections to the screen display, be sure money amounts within a subsection have been transcribed in dollars only, or in dollars and cents according to the requirements shown in the instructions for each subsection.

You may use these procedures when the TE/GE Submission Processing Program & Oversight staff analyst with oversight approves them:

Any instructions written at the campus (i.e., desk procedures) to clarify the IRM 3.12.26, Tax Exempt Bond Error Resolution Procedures.

Paragraphs created at the campus when the IRM doesn't request an open paragraph be used.

Our goal is to achieve consistency in the Business Master File (BMF) ERS processing IRMs.

Cincinnati, Ogden, and Paper Processing Branch BMF Code & Edit/ERS Section coordinate the effort to identify topics for BMF Consistency.

BMF Consistency subsections in this IRM are identified by a "♦" (diamond) before and after the subsection title.

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

The Tax Reform Act of 1986 required:

Issuers of: tax exempt bonds, Build America Bonds, Recovery Zone Economic Zone Bonds and Specified Tax Credit Bonds, collectively with tax exempt bonds know as tax-advantaged bonds, to file information returns with the IRS after December 31,1986.

That municipal bonds meet certain rules for the interest received by the bondholders to be exempt from federal income tax.

The table below provides the specific form type, MFT, Document Code (Doc. Code) and valid Report Number range as they apply to each TEB return. The Tax Class for all TEB returns is "3" . The Doc. Code in the Document Locator Number (DLN) defines which form it specifically relates to.

Form

MFT

Doc. Code

Report Number

8038

46

61

100 - 199

8038-B

85

85

100-499

8038-CP

46

88

200 - 299

400 - 499

800 - 899,

8038-G

46

62

300 - 399

8038-GC

46

72

500 - 599

8038-T

46

74

700 - 799

8038-TC

86

86

100 - 499

8328

46

75

900-999

8703

84

01

100 - 999

Form 8038, Information Return for Tax Exempt Private Activity Bond Issues, is used by the issuers of tax exempt qualified private activity bonds to provide the IRS with the information required by Section 149(e) and to monitor the requirements of Section 141 through 150.

Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds, is used by issuers to report Build America Bonds and Recovery Zone Economic Development Bonds to provide the IRS with information required by Section 149(e).

Effective January 1, 2011, Build America Bonds and Recovery Zone Economic Development Bonds may no longer be issued and Form 8038-B may not be used for bonds issued after January 1. 2011.

Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, is used by issuers of bonds who elect to receive a direct payment pursuant to IRC 6431.

Form 8038-G,Information Return for Tax-Exempt Governmental Bonds, is used by issuers of tax exempt governmental bonds of $100,000 or more, to provide the IRS with information required by Section 149(e).

Form 8038-GC, Information Return for Small Tax Exempt Governmental Bond Issues, Leases, and Installment Sales, is used by issuers of tax exempt governmental bonds of less than $100,000, to provide the IRS with information required by Section 149(e).

Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, is used by issuers of tax exempt bonds when paying arbitrage rebate (or penalty in lieu of rebate) to the United States as required under Section 148(f), or the corresponding provisions of the 1954 Code; or to make a yield reduction payment in accordance with Section 1.148-5(c) of the Regulations. Payments may be made by a person acting on behalf of the Issuer for bonds subject to Section 103(c)(6)(D) of the 1954 Code. Under Section 148(f), interest on a state or local bond isn't Tax Exempt unless the Issuer of the bond rebates to the United States on Form 8038-T, arbitrage profits earned from investing proceeds of the bond in higher yield nonpurpose investments.

Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds, is used by the issuers of qualified tax credit bonds and specified tax credit bonds to provide the IRS with the information required by Section 149(e)

Form 8328, Carryforward Election of Unused Private Activity Bond Volume Cap, is used by the issuing authority of private activity bonds to elect to carry forward its unused volume cap for one or more carry forward purposes (see Section 146(f)). Form 8328 may also be used by a state to carryforward the unused volume cap under Section 142(k).

Form 8703, Annual Certification of a Residential Rental Project, is used by an operator of a residential rental project to provide annual information the IRS will use to determine whether a project continues to be a qualified residential rental project under Section 142(d). If so, and certain other requirements are met, bonds issued in connection with the project are considered "exempt facility bonds" and the interest paid on them isn't taxable to the recipient.

Municipal Bonds can be classified as tax exempt (government or qualified private activity bonds) or taxable (other private activity bonds).

Municipal bonds may be issued as governmental bonds or non-governmental bonds. Some non-governmental bonds are also called "qualified private activity bonds" . The following identifies a few bond categories:

Governmental Bonds are issued to finance governmental activities of a state or local government. That is, the government entity uses the bond proceeds for its own purposes. Certain lease arrangements may be treated as tax exempt bonds when the lease transaction is treated as a conditional sales contract.

Funds used to build and maintain highways, schools, government buildings (e.g., courthouses), or sewer and water facilities.

Qualified Private Activity Bonds are issued by state and local governments. The facilities financed with the bond proceeds can be owned and operated by non-governmental entities for limited purposes specified in IRC 142(a), 143, 144, and 145.

Code Section

Examples

IRC 142 exempt facility bonds

Airports

Spaceports

Docks and wharves

Mass commuting facilities

Facilities for the furnishings of water

Sewage facilities

Solid waste disposal facilities

Qualified residential rental projects

Facilities for the local furnishing of electric energy or gas

Local district heating or cooling facilities

Qualified hazardous waste facilities

High-speed intercity rail facilities

Environmental enhancements of hydroelectric generating facilities

Qualified public educational facilities

Qualified green building and sustainable design projects

Qualified highway or surface freight transfer facilities.

Qualified broadband projects

Qualified carbon dioxide capture facilities

IRC 143 bonds

Qualified Mortgage Bonds

Qualified Veterans Mortgage Bonds

IRC 144 bonds

Qualified Small Issue Bonds

Qualified Student Loan Bonds

Qualified Redevelopment Bonds

IRC 145 bonds

Qualified IRC 501(c)(3) bonds

A county needs a nursing home in its community. It loans bond proceeds to a Section 501(c)(3) corporation who will construct and operate the facility.

Pooled financing may involve proceeds of governmental bonds or certain types of private activity bonds. In a pooled financing, the issuer loans proceeds from the bonds to more than one borrower. The borrower of the proceeds may be tax exempt organizations or other state or local governments.

A county issues bonds for multiple school districts within its territory. One school district uses the proceeds to construct a new school building and buy computer equipment. Another school district uses the proceeds to construct administrative offices.

Registered Warrants are a short-term obligation (30 - 60 day bond) of a municipality.

Commercial Paper Bonds are a short term bond having a maturity date of 270 days or less. These bonds are issued pursuant to a commercial paper program that is treated as part of a single issue.

Commercial Paper Program is a program to issue commercial paper to finance or refinance the same governmental purpose pursuant to a master legal document.

The Liberty Bond was enacted in the wake of the September 11, 2001, terrorist attack. The IRS provided guidance (Notice 2002-42 2002–27 IRB 36) on the effects of various tax benefits that were enacted for areas of New York City. IRC 1400L(a) provides for a new targeted group for the Work Opportunity Tax Credit (WOTC): New York Liberty Zone business employees. The new targeted group includes individuals who perform substantially all of their services in the New York Liberty Zone (NYLZ), and may include individuals who perform substantially all of their services elsewhere in New York City for a business that relocated from the NYLZ due to the physical destruction or damage of its workplace within the NYLZ by the September 11, 2001 terrorist attack.

Lease Installment Sales are unconditional sales agreements under which a municipal government leases equipment that it acquires at the end of the lease period.

Promissory Notes are interest-bearing certificates of governments that come due in a shorter time than bonds. Municipal notes have maturities up to approximately one year.

Lines of Credit are pre-approved loans where the municipality draws down money as it's needed. The loans have specified dollar limits, terms and interest rates.

This is similar to a home equity loan of a homeowner.

Green bonds are issued to finance projects designated by the Secretary after consultation with the Environmental Protection Agency Administrator. Green building and sustainable design projects must meet certain eligibility requirements.

The Gulf Opportunity Zone Bond is due to the Hurricane Katrina disaster area determined by the President to warrant individual or individual and public assistance from the federal government. The IRS provided guidance (Notice 2006-41 2006–18 IRB 857), which authorizes the states of Alabama, Louisiana, and Mississippi to issue certain exempt facility bonds and qualified mortgage bonds pursuant to IRC 1400N(a). Gulf Opportunity Zone Bonds must be issued before January 1, 2011. Notice 2006-41 also provides guidance on Gulf Opportunity Zone Advance Refunding Bonds that are permitted to be issued under IRC 1400N(b).

Bonds are an "obligation" of any state or political subdivision thereof. Obligation means any valid evidence of indebtedness under general federal tax principles. Obligations are not limited to bonds or other securities but may also include written contracts such as installment sales contracts and loans to a municipality.

To be an obligation, money must be borrowed by a governmental entity, used for governmental or qualified purposes, and there must be an obligation to repay.

Income from certain obligations of states and their political subdivisions may likewise be excluded from gross income. Such obligations include:

Installment sales contracts

Equipment leases

Bank loans

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

This IRM gives procedures to use in resolving the displayed errors. However, there may be records where you find that programming hasn’t given a section or field needed to resolve an error. Report this to the Headquarter analyst for correction.

Enter the section using CC "GTSEC" , and the missing data.

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

Priority II (Section Errors): An error detected by the Service Center Recognition/ Image Process System (SCRIPS) or Integrated Submission and Remittance Processing System (ISRP) displays as a Section Error.

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 that 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.

All records assigned an incorrect action code are displayed as a Priority I error. Errors and correction procedures are explained in this subsection:

If the AC is valid (except 001), it’ll be placed in the reject inventory.

If the AC is invalid or is 001, it’ll be placed in the error inventory.

Definition: Any field that doesn’t meet the requirements for that field will be shown as a "Priority III" Error. Some reasons for this type of error include:

Non-alphabetical character in an alpha field

Blank space in a numeric field.

Blank in the first position of an alpha field.

Non-numeric character in a numeric field.

A required field is blank.

All fields with a Priority III error will be displayed in the order encountered in the record.

This chapter lists the fields, errors and correction procedures for Priority III errors for the following forms.

Form 8038

Form 8038-B

Form 8038-CP

Form 8038-G

Form 8038-GC

Form 8038-T

Form 8038-TC

Form 8328

Form 8703

Unless otherwise stated, the fields are valid for the above forms.

is computer generated when the BOB Resolution Function adds a missing document by inputting only the TIN and Name Control for the missing document:

All data must be entered.

GTSEC ALL sections and

Enter ALL necessary data.

The letter "C" is used as a "clear field" for error codes (consistency errors) when the invalid condition doesn't require a change or correction to the record as displayed. The display will include a clear field, labeled "CL" to indicate the possible need of a clear field.

Error codes that need a clear field are cleared by either correcting the condition or entering a "C" to indicate no correction is needed.

Clear field "C" is also used for clearing the action codes after corrections for the AC have been completed.

""000" " is also used as a clear field when deleting an action code. It will only be used for erroneous action codes when you have determined there is no reason to suspend the record ("000" can’t be used in Reject correction).

Programming erases all "C" clear fields for error codes when a record is suspended with the command code "SSPND" .

Programming erases all "C" clear fields for error codes and action codes for the new day's error and workable suspense inventories.

Unfinished records from the previous day won’t contain the "C" clear fields that were assigned to a record that wasn’t completely worked.

Error codes (including the ones which may require a "C" clear field) are numbered consecutively in order for correcting.

Perfect, if possible, through research or taxpayer contact, any document on which entries are erroneous, incomplete or missing, and continue processing.

If a correspondence letter is returned as undeliverable, compare the address on the letter with the address on the return.

If different, re-send the letter to the address on the return.

If the same, research INOLES for a different address.

If the address on INOLES is different or there is a location address, re-send the letter to the new address.

If the address on INOLES is the same as the return, and no better address can be found, treat as a no reply.

If the letter is undeliverable a second time using the new address, treat as a no reply.

If the taxpayer doesn't reply to a request for information, enter CCC "3" .

If perfection isn't possible, initiate action to void the DLN and the return "Canceled to Files" . If a remittance is involved, transfer to the "6400, Miscellaneous Revenue Collections" account.

A return that’s discovered to be unprocessable on initial input after being blocked or numbered and is subsequently believed to be processable is a re-entry document. The following describes the reasons for re-entry:

Document that was discovered to be unprocessable after it was blocked and numbered will be considered to be a re-entry document when It's input after the correction.

Document was unpostable on initial input, and the unpostable situation can only be corrected by re-input of document.

Document posted to wrong account or module, and the document must be re-entered to post to the proper account or module.

Each block of re-entry documents must have a Form 3893, Re-entry Document Control. If Form 3893 is missing information, return the document or block to the Receipt and Control area. Always leave the Form 3893 on the front of the return or block. It must remain as a permanent part of the document.

Form 3893 is used for re-input control of a document under its original DLN.

If a single document is being re-input, Form 3893 will be attached to the face of the document.

If more than one document from the same original block is being re-input, Form 3893 will be attached to the first document in the re-input block.

Pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, certain automatic reductions took place on March 1, 2013. These required reductions include a reduction to refundable credits under Internal Revenue Code Section 6431 applicable to certain qualified bonds. As a result, the refundable credit payment for FY 2023 is reduced by 5.7%. The sequestration reduction rate will be applied until the end of the fiscal year (September 30, 2030) or intervening Congressional action, at which time the sequestration rate is subject to change.

For FY 2024, the sequestration rate remains at 5.7%. No sequestration hold is required.

During annual implementation of the revised sequestration percentage rate, it will be necessary to hold all Form 8038-CP until the new rate is programmed. This normally occurs in September and October. SERP Alerts will be issued providing specific dates when the time approaches. Code and Edit will follow normal procedures in editing the returns. Upon completion, the C&E clerk will record all pertinent information onto an Excel spreadsheet and provide it to the SP P&A analyst who has oversight of Rejects. The P&A analyst will monitor the returns to ensure credit payments are refunded prior to the Interest Payment Date (IPD).

When a manual refund is required during the hold in order to meet an IPD or prevent payment credit interest, the applicable sequestration percentage rate must be determined. The applicable rate is based on the date the manual refund (Form 3753 or Form 5792) is signed.

The date the new percentage rate is effective varies annually based on the last day of the cycle the programming is completed (i.e., last day of cycle 202040 is 10/01/2020). As such, manual refunds dated prior to 10/01/2020 would be calculated at the FY 2020 sequestration rate of 5.9%. Manual refunds dated 10/01/2020 & subsequent would be computed at the FY 2021 revised 5.7% rate. For FY 2023, the sequestration rate did not change.

Due to the Campus shutdown resulting from the COVID-19 pandemic, all Form 8038-CP with a RRD prior to October 1, 2020, must have the sequestration rate computed at 5.9% regardless of when the manual refund is signed. If the credit payment amount is under ≡ ≡ ≡ ≡ ≡ ≡ ≡ and RRD is prior to October 1, 2020, allow refund to systemically generate. However, for Form 8038-CP if Line 22 is over ≡ ≡ ≡ ≡ ≡ ≡ ≡ it needs to be sent to SPP&O for review.

If it is determined that a manual refund is required, the originator must research IDRS to make certain a computer-generated refund will not be issued. In addition to the procedures outlined below, which are unique to Form 8038-CP, general manual refund information must be followed and can be found in IRM 3.12.38.5.4 and IRM 21.4.4.

If a manual refund is required due to:

the annual sequestration rate revision hold in order to meet a pending IPD,

the credit payment is over ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ dollars,

For Form 8038-CP if Line 22 is over ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ it needs to be sent to SPP&O for review.

then the credit payment must be manually computed to determine the correct reduced refundable amount. Offsets must be taken into consideration.

An excel spreadsheet with the sequestration computation formula is provided annually from the TE/GE HQ Program analyst to the Campus in order to determine the correct credit payment amount. This computation spreadsheet must be used when manually computing the sequestration amount. A copy of the sequestration excel computation, the ACT/DMI interest computation (if applicable) and the manual refund documents (Form 3753/Form 5792) must be attached to the Form 8038-CP.

The refundable credit amount is computed manually by:

Subtracting tax, penalties and interest from the original credit payment amount on line 22, if applicable. This is the recomputed line 22.

Reduce the original or recomputed line 22 (step a) above) by the applicable rate. Subtract the sequestered amount (line 22 multiplied by rate) from the original or recomputed credit payment.

Subtract all offsets or credit elects (if applicable) from the original or recomputed line 22 amount.

The results will be the correct credit amount to be refunded.

Prepare manual refund using applicable Form 5792 or Form 3753 (refer to IRM 3.12.38).

In the remarks section of the Form 5792, indicate "Credit payment amount is reduced by applicable sequestration rate" .

If the manual refund is due to the sequestration hold, edit CCC "O" on the return to prevent a duplicate erroneous refund from generating when the return is processed. Attach a copy of the sequestration computation and manual refund documentation (Form 3753 or Form 5792) to the return.

If credit interest is applicable, it must be calculated on the reduced credit payment amount and not on the original amount claimed by the filer.

Copies of both the sequestration rate Excel computation spreadsheet and Form 8038-CP with "Copy Do Not Process" annotated on the return must be attached to the manual refund documentation.

Additional research may be required to ensure a prior refund wasn’t issued for the same tax period and report number as shown on the Form 8038-CP. If it appears a return and refund has previously posted to the tax period and report number, contact SPP&O Analyst via e-mail to determine if a different report number should be assigned. Also alert the P&A ERS/Rejects analyst so feedback can be provided to the SPP&O Analyst. Prepare manual refund on sequestered amount.

During the normal processing and sequestration hold periods, manual refunds over ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ must not be refunded unless it is within three weeks of the Interest Payment Date (IPD).

For Form 8038-CP if Line 22 is over ≡ ≡ ≡ ≡ ≡ ≡ it needs to be sent to SPP&O for review.

Form 3753 is designed for non-IDRS input. This form can be used when refunds are:

≡ ≡ ≡ ≡ ≡ ≡ ≡ or more

For Form 8038-CP if Line 22 is over ≡ ≡ ≡ ≡ ≡ ≡ it needs to be sent to SPP&O for review.

Direct deposit is necessary

Manual refund is generated to a different address

Form 3753 will be prepared in triplicate. Two copies must be forwarded to the Manual Refund Function along with copies of the supporting documentation. Accounting will reject the Form 3753 if the document contains any alterations such as white out, strike through or correction tape.

The following are line-by-line instructions for completing Form 3753. The DLN block is completed by the Accounting Function. Complete the "From and Return to" box with the initiator’s information.

Section 1, Block 1, enter EIN of the account from which the refund will be issued (Part I, line of Form 8038-CP.

Block 2, enter the return period in YYYYMM format

Block 3, enter the MFT

Block 4, enter the Report number

Block 5 and 6, will be completed by Manual Refund Unit.

Block 7, enter name and address of entity as shown on Master File.

Block 8, enter the return form number (Form 8038-CP).

Block 9, enter "Not Processed"

Block 10b, enter amount of check. (TC 770 plus amount of overpayment).

Block 10d, enter TC 770 with amount of allowable interest.

Block 11, complete this block if the payee is other than the taxpayer or the refund is being issued to a different address. Difference must be explained in Section IV.

Block 12a and 12b, used only when completing Form 3753 for Credit Card Charge-back, by the Manual Refund Unit or by other IRS Offices/Agencies that require funds to be withdrawn from specific Treasury Accounts.

Block 13, enter amount of overpayment. The amount being refunded less allowable interest.

Block 14, ULC - leave blank for Form 8038-CP.

Block 15, enter line number 65. For complete list, refer to Exhibit 12 in IRM 2.4.20, Command Codes RFUND and REFAP.

Section II, Check all applicable boxes. Enter IRM reference 21.4.4 in Block 1 c and enter Form "8038-CP" in Block 1 d. Enter By Pass Indicator 0.

Section III, Enter interest computation and attach IDRS interest computation screen. See IRM 21.4.4.4(5) for requirements on interest computations on manual refunds of $1 million or more. Refer to IRM 20.2, Interest, for methods of computing interest.

Section IV, Enter additional information (e.g. Form 8038-CP, RPT #, cross reference EINs or RPTs).

Section V, Blocks 1 and 2, the Approving Official must sign and print their name and title. The Approving Official must be on the authorized list maintained by the Manual Refund Unit in the Accounting Function.

Blocks 3, 4 and 5, enter name, IDRS number, badge number, date, and phone number of the originator of the request

Both Form 5792 and Form 3753 must be reviewed to verify that the manual refund is appropriate, proper IDRS research was completed, and that the form was completed accurately. The Approving Official’s signature certifies to the Accounting Function that the form was reviewed and is correct.

When issuing a manual refund to a person or address other than that of the entity as shown on Master File, input a TC 971 with Action Code 037.

Place completed Form 5792 or Form 3753 in the designated basket for review and signature of approving official. Refer to IRM 21.4.

The Form 5792 is used with CC RFUND to request an IDRS refund. This form must be used when the credit payment is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Use the latest revision of the Form 5792. The Form 5792 will be prepared in triplicate. Two copies must be forwarded to the Manual Refund Function along with copies of the supporting documentation. The case file must be sent to the Accounting Function the same processing day the CC RFUND is input. Accounting will reject the Form 5792 if the document contains any alterations such as white out, strike through or correction tape. See IRM 21.4.4.5.1, Monitoring Manual Refunds, for controlling and monitoring requirements.

For Form 8038-CP if Line 22 is over ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ it needs to be sent to SPP&O for review.

The following are line-by- line instructions for completing Form 5792 when issuing a manual refund for a Form 8038-CP account.

Section I, Block 1 enter the Taxpayer Identification Number (TIN) and File Source of the account from which the refund will be issued

Block 2, enter the Master File Tax Code and Report Number (MFT 46/8XX)

Block 3, enter the tax period as YYYYMM

Block 4, enter the report number

Block 5, enter the name control

Block 6, enter the TC 840 amount (overpayment, plus allowable interest)

Block 7, enter the TC 770 amount (allowable interest). If no interest is being computed, enter 0.

Block 8, enter the overpayment amount. The amount being refunded, less allowable interest

Block 9, enter the appropriate line number. For Form 8038-CP use 65 (refer to Exhibit 12 in IRM 2.4.20, Command Codes RFUND and REFAP for complete list.).

Block 10, interest indicator must be entered. If interest is paid, an interest "from" date is required.

Use "0" (zero) for no interest

Use "N" for normal interest when interest is payable.

Use "R" for restricted interest.

Blocks 11, 12 and 13, leave blank

Blocks 14-19, enter the name and address of the entity as shown in Part I of Form 8038-CP. Print using capital, block letters.

If the address on Form 5792 does not match the address on Master File, an explanation must be provided in the "Remarks" section of the form. Annotate "Form 8038-CP - Refund issued to different address" .

Block 20, annotate reason for the refund in the remarks field. Be specific. Include all pertinent information (i.e., Form 8038-CP refund, credit payment amount, RPT #, refund issued to a different address, etc.)

Block 21, enter the initiating Business Operating Division (BOD)

Block 22, enter "Return not processed"

Block 23, check if the account has a bankruptcy indicator.

Block 24, check if the account contains a TC 130.

Section II, Check all applicable boxes and enter IRM reference 21.4.4 in Block 1 c.

Section lll, the preparer must compute all interest for the TC 770 amount. Be sure to attach a copy of the COMPA print to the Form 5792. Large dollar manual refunds of $1 million or more that contain credit interest, must be reviewed and approved by the Technical Unit. See IRM 21.4.4.4(4), Preparation of Manual Refund Forms.

Section IV Block 1, leave blank. This is completed by the employee inputting the CC RFUND.

Blocks 2 and 3, enter the name and employee IDRS #, or the Badge number, and phone number of the initiator of the request. The employee inputting CC RFUND may or may not be the person requesting the manual refund.

Blocks 4, 4a, and 5, the Approving Official who signs the refund must be on the Authorized Signature List maintained by the Manual Refund Unit in the Campus Accounting Function. The official will sign in Block 4, print their name in Block 4a, and enter the date in Block 5.

When issuing a manual refund to a person or address other than that of the entity as shown on Master File, input a TC 971 with Action Code 037.

Place completed Form 5792 or Form 3753 in the designated basket for review and signature of approving official. Refer to IRM 21.4.

The Form 8038-CP is the only TEB return that has a statute of limitation (SOL). If a return meets statute criteria, the SPP&O Analyst will edit "SOL" or annotate "Statute of Limitations" in green, in the top margin of the Form 8038-CP during their initial review of the return. Additionally, SPP&O Analyst must edit CCC "X" on all statute returns.

If SPP&O and/or Code and Edit fails to identify a statute return and you determine the Form 8038-CP meets statute criteria, edit CCC "X" on the return to hold the credit and follow normal statute guidelines.

Before you route the return to Statutes for review and clearance, send a scanned copy of the edited return to SPP&O Analyst via secured e-mail as outlined below.

The ERS/Reject lead (or back-up) sends a secure e-mail to SPP&O.

Attach a scanned copy of the Form 8038-CP to the secure e-mail indicating it’s an "SOL" return.

Copy (cc) these individuals on the e-mail: - ERS/Rejects OSPC P&A analyst - SPP&O Analyst

A statute of limitation exists when the Interest Payment Date is three years before the IRS stamped received date or postmark date.

The IPD is 01/01/2018 and the IRS received date is 05/16/2022. Since the IPD is three years prior to the IRS received date, the refund statute has expired.

If a return meets the above conditions and doesn’t have a "Statute Cleared" indication, complete and attach a Form 3210 and give to lead who will route it to Statutes for clearance.

Edit CCC "W" if the return has been cleared by Statute Control Unit. Statute will stamp or indicate clearance on the front of the return.

Do not correspond for missing/incomplete information on a statute return.

Effective January 01, 2022, STEX transcripts will generate to the Statute unit for resolution.

This subsection provides field descriptions and instructions for correcting error and reject conditions for:

Form 8038,

Form 8038-B,

Form 8038-G,

Form 8038-GC,

Form 8038-T,

Form 8038-TC and

Form 8328,

Form 8703

Field RMIT> is the amount of remittance submitted with the return. It's dollars and cents and is the blue/green edited money amount and is 11 positions. The field can't be changed by Error Resolution.

Field 01NC, Name Control, is edited (underlined) from Part I and is 4 positions.

This field must have 1 to 4 characters (alpha, numeric, ampersand, hyphen).

This field may have 1 to 3 blanks.

The name control is validity checked.

The name control is invalid if it has any of these:

The 1st position is other than a letter or number, or

The 2nd, 3rd and 4th positions contains characters other than letters, numbers, ampersands (&), hyphens (-), blanks,

Any character follows a blank.

To determine the correct name control, see IRM 3.13.2, BMF Account Numbers.

Line through the entry in Field 01NC and enter the correct name control above it. If the name control contains fewer than 4 characters, enter and circle the number of positions remaining.

The name control under print is designed to reduce the number of unpostables that occur when the transcribed name control doesn't match with the name control for the EIN on the Entity Index File (EIF).

The name control under print will be removed when name control under print and the entry in Field 01NC agree.

Compare the entries in Fields 01NC and 01EIN with the return to determine the correct action.

If

Then

the EIN on the return and EIN in Field 01EIN do not agree,

correct Field 01EIN to agree with the return.

the name control on the return and Field 01NC do not agree, and/or the name control was transcribed incorrectly,

change Field 01NC to agree with name control under print.

correction doesn't agree with the name control under print,

SSPND 320 to Entity.

the name control edited on return agrees with Name Control in Field 01NC, and the name is illegible or coded wrong,

change Field 01NC to agree with name control under print.

no obvious error,

research using INOLE, NAMEE, or NAMEB

another EIN is found for the entity on the return,

change Field 01EIN to the correct EIN.

For Form 8038-CP, contact SPP&O Analyst to validate the EIN.

taxpayer merely rearranged name on return,

change Field 01NC to agree with the name control on INOLES.

the EIN on the return is correct but name control on BMF isn't conforming to acceptable rules for name controls,

SSPND 320 to Entity Control for resolution.

the EIN on the return and Field 01EIN agree but do not agree with name on INOLES,

SSPND 320 to Entity Control for resolution.

Field 01EIN is the Employer Identification Number, located in Part I and is 9 positions.

This field is invalid if any of the following conditions are present:

The field isn't present or isn't all numeric.

The EIN is all zeros or all nines.

The first two digits are 00, 07 - 09, 17 - 19, 28, 29, 49, 78, 79 or 89.

Search the return and attachments for a valid EIN.

If

Then

a valid EIN is found,

correct Field 01EIN.

a valid EIN can’t be found on the return or attachments,

Research MF using NAMEE & NAMEB.

If a valid EIN is located, correct Field 01EIN.

research locates two EINs,

Research using CC INOLES for both EINs.

If both EINs are on INOLES, route to Entity using SSPND 320 and annotate "2 EINs" .

an EIN can’t be located through research,

route to Entity using SSPND 320.

Rejects will determine the correct EIN and name control from research.

If

Then

the EIN on the return is correct, but the name control on the Taxpayer Information File (TlF) doesn't meet the guidelines,

attach Form 4227 and SSPND 320 to Entity Control.

Entity Control has found the correct EIN,

enter it in Field 01EIN.

Entity Control has assigned an EIN,

enter it in Field 01EIN. Enter the entity assignment date in the CRD Field 01CRD. The date is found in the left hand margin with an edited "E" .

Field 01TXP is the Tax Period, is 6 positions and is edited:

In the upper right-hand corner of Form 8038-GC, Form 8328 (the calendar year preceding the year the return is filed).

In the upper right-hand corner of Form 8703.

The tax period isn't edited on Forms 8038, 8038-G, 8038-B, 8038-T and 8038-TC. Use the "Date of Issue" to determine the tax period for Forms 8038, 8038-G, 8038-GC, 8038-T, 8038-B, and 8038-TC.

The tax period isn't edited on Form 8038-CP. Use the "Interest Payment Date" to determine the tax period on Form 8038-CP.

This field is invalid if:

It’s all blank.

It’s not all numeric.

The year is after the current year.

The year is before 198501 on Form 8038, Form 8038-G, and Form 8038-GC.

The year is before 03-18-2010 for Form 8038-TC.

The year is before 02-17-2009 for Form 8038-B and Form 8038-CP.

The year is before 200712 for Form 8703.

The year is before 195401 on Form 8038-T.

It isn't equal to the Date of Issue (01DTI will also be invalid) on Form 8038, Form 8038-B, Form 8038-TC, Form 8038-G and Form 8038-GC.

Form 8038, Form 8038-G, Form 8038-GC, and Form 8038-T, correct any coding or transcription errors.

If

Then

the tax period hasn’t been edited,

enter the Date of Issue in YYYYMM format.

If Date of Issue is April 12, 2021, Field 01TXP is 202104.

the tax period is prior to 198501,

Change the tax period (Field 01TXP) to 198501, and for Forms 8038, 8038-G, and 8038-GC change the Date of Issue (Field 01DTI) to 19850101.

the tax period is prior to 195401,

Change the tax period (Field 01TXP) to 195401 for Form 8038-T, change the Date of Issuer (Field 01DTI) to 19540101.

Form 8038-B, correct any coding or transcription errors.

If

Then

the tax period hasn’t been edited,

enter the Date of Issue in YYYYMM format.

If Date of Issue is April 12, 2011, Field 01TXP is 201104.

the Date of Issue is prior to 02/17/2009,

Edit ERS AC 211.

After a reply is received enter the date in 01TXP and 01DTI, and enter the Correspondence Received date in 01CRD.

If no reply is received, enter CCC "3" in 01CCC, and enter the signature date in the Date of Issue and Tax period.

If the signature is missing and no reply is received, enter the IRS received date minus 10 days in 01TXP, and 01DTI (see example below).

Form 8038-TC correct any coding or transcription errors.

If

Then

the tax period hasn’t been edited,

enter the Date of Issue in YYYYMM format.

If Date of Issue is April 12, 2011, Field 01TXP is 201104.

the Date of Issue is prior to 12/31/2008,

Edit ERS AC 211.

After a reply is received enter the date in 01TXP and 01DTI, and enter the correspondence received date in 01CRD.

If no reply is received, enter CCC "3" in 01CCC, and enter the signature date in the Date of Issue and tax period.

If the signature is missing and no reply is received, enter the IRS received date minus 10 days in 01TXP, and 01DTI (see example below).

Tax Period: (blank) Date of Issue: (blank) Signature Date: (blank) IRS Received Date: Feb. 2, 2011 Minus Ten Days: Jan. 23, 2011 Date of Issue: 01/23/2011 Tax Period: 201101

Form 8328, correct any coding or transcription errors.

If

Then

the tax period hasn’t been edited,

enter the calendar year preceding the year the return is filed in YYYYMM format.

If return is received in May 2021, enter 202112 in Field 01TXP.

Form 8703, correct any coding or transcription errors.

If

Then

the tax period hasn’t been edited,

enter the date in YYYYMM format.

the tax period is prior to 200712,

change the tax period (Field 01TXP) to 200712.

Form 8038, Form 8038-B, Form 8038-TC, Form 8038-G, Form 8038-GC or Form 8703 is determined to be early filed:

If

Then

the tax period is less than 120 days after today's date,

SSPND 480.

the tax period is 120 days or more in the future,

SSPND 211.

Rejects will:

If

Then

the tax period is less than 120 days from today's date, hold the return until the month of the tax period on the return,

send the return through to be processed.

the tax period is 120 days or more in the future, and a reply is received,

perfect the return.

the tax period is 120 days or more in the future, and no reply is received,

enter the signature date as the tax period date.

the tax period is 120 days or more in the future, and the signature date is missing,

enter the IRS received date minus ten days.

Field 01RPT is the Report Number, located in Part I of each return and is 3 positions.

This entry is numeric only. Refer to the table below for valid ranges for each form:

Form

Valid Report Number Range

8038

100 - 199

8038-B

100 - 499

8038-CP

200 - 299

400 - 499

800 - 899

8038-G

300 - 399

8038-GC

500 - 599

8038-T

700 - 799

8038-TC

100 - 499

8328

900 - 999

8703

100 - 999

Effective January 2, 2022, Form 8038-CP report numbers are self assigned by the filer.

This field will be invalid if blank or not within the range identified above for each form.

Correct any coding or transcription errors.

If the report number is blank or other than identified in IRM 3.12.26.5.6 above, research IDRS to determine the next available report number for that tax period for that series return.

Form 8038 Edited report number is 001 (invalid range for this form) Tax Period: 202212 Report numbers already used for that tax period (per IDRS): 100, 105 and 111.

In this example, you would circle out report number 001 and enter the next available report number for that tax period for Form 8038. In this example it would be 101.

If Form 8328 has wording written across the top similar to "Carryforward of 2008 Housing Act Volume Cap" edit 999 as the report number no matter where the document is located in the batch.

If a Form 8038-CP report number(s) is not self assigned by the filer, contact SPP&O Analyst so they can assign a valid report number.

Field 01CCC is the Computer Condition Code, is 10 positions and is edited as per below. Refer to the table in IRM 3.12.26.5.7.2 (6) below for a description of the codes and their usage.

Form 8038: Part II, dotted portion of line 11a.

Form 8038-B: Part II, to the right of line 3 blank area.

Form 8038-CP: Part III, dotted portion of line 19a.

Form 8038-G: Part II, dotted portion of line 11.

Form 8038-GC: Part II, dotted portion of line 8a.

Form 8038-T: Part II, line 12 on the dotted portion (rev. prior to 1999, line 10).

Form 8038-TC: Part III, dotted portion of line 1.

Form 8328: Part II, dotted portion of line 1.

Form 8703: Part II, dotted portion of line 5.

Valid codes are "D" , "G" , "R" , "F" , "3" , and "7" for all forms above.

CCC "H" is valid for Form 8038-G only.

CCC "W" , "C" , "X" and "O" is valid for Form 8038-CP only.

This field is invalid if:

CCC "G" is present and any CCC other than "3" .

CCC "7" is present with both CCC "D" and "R" .

Correct any coding or transcription errors.

If the code(s) are entered incorrectly, refer to the return and the CCC table below to determine which code(s) is necessary.

If the return is an amended Form 8038, Form 8038-B, Form 8038-G, Form 8038-TC, Form 8038-GC, Form 8038-T, Form 8703, or Form 8038-CP, SSPND 640 to rejects and attach a Form 4227 stating "Cancel to EO Accounts" .

CCC "G" is valid, but currently not used.

If the return is an amended Form 8328 process as an original.

If CCC "7" , Reasonable Cause Denied, is present with both CCC "R" and "D" , determine if CCC "7" is correct. If correct, delete the other codes. If not, delete CCC "7" .

CCC "C" , O and "X" is only valid for Form 8038-CP..

≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Review reasonable cause statement to determine which CCC R or 7 are applicable. If the taxpayer indicates the failure to file or pay was due to willful neglect, reasonable cause may not be granted. Willful neglect is defined as: Conscious, intentional failure to comply with the provisions of the IRC, or reckless indifference to such provisions.

CCC "G" is valid, but currently not used on any TEB return.

CCC "R" is valid, but currently not used on Form 8038-T.

CCC "R" and "D" is valid but currently not used on Form 8328 or Form 8038-CP.

Computer Condition Codes:

CCC

DEFINITION

USE IF

FOR FORM(S)

D

Reasonable cause for failure to pay timely

Untimely paid return and reasonable cause is established in accordance with Revenue Procedure 90-11.

If prepaid penalty is included, DO NOT use Condition Code "D" .

8038-T

F

Final return

Return indicates it's a "Final" .

8038-T

8038-CP

G

Amended return

Amended returns. (Not applicable to TEB returns.)

8038

8038-G

8038-GC

8038-T

8328

8703

R

Reasonable cause for failure to file return timely

Untimely filed return and reasonable cause is established in accordance with Rev. Proc. 88-10 ; Rev. Proc. 2002-48, Rev. Proc. 90-11, or Rev. Proc. 2005-40.

8038

8038-G

8038-GC

8038-T

8703

3

No Reply

Input when issuer doesn't reply to IRS correspondence.

8038

8038-CP

8038-G

8038-GC

8038-T

8328

8703

7

Reasonable cause was considered and denied.

Return was "referred to TEB" or

Form 8038-T was secured by TEB and a late filing CP 142 notice shouldn’t be generated.

Reasonable cause was not granted.

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

Form 8038-T CP 142 late filing correspondence shouldn’t be issued because the return was secured by TEB.

8038

8038-B

8038-G

8038-GC

8038-T

8703

O

Input when a refund is over ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ which is the amount set for manual refunds to be issued; however, for Form 8038-CP if Line 22 is over ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ it needs to be sent to SPP&O for review.

Input when the SPP&O Analyst performing the initial review requests a refund be stopped (regardless of the amount).

CCC O freezes the affected tax module unless or until a TC 840 transaction is posted.

Used to stop a refund from generating so a manual refund can be done.

8038-CP

H

Form 8038-G, Line 18- other described as "Tribal Economic Development Bond"

The description on Form 8038-G, line 18 other reads "Tribal Economic Development Bond" .

8038-G

W

Prevents the validity check on returns which are filed two years and nine months after the due date. Indicates Statute Cleared.

Edit CCC "W" if the statute return is stamped "Cleared by Statute" .

Edit CCC "W" only when the return processing date is two years and nine months after the return due date or received date, whichever is later.

8038-CP

C

Indicates a Form 8038-CP is subject to the sequestration decrease.

CCC "C" isn't present on a Form 8038-CP.

8038-CP

X

Module freeze

Used to freeze module from refunding or offsetting credit.

8038-CP

Accept reasonable cause and edit CCC "R" or "D" if the taxpayer has filed the following:

Form

And

8038

8038-B

8038-G

8038-GC

8038-TC

Within 6 months after due date.

the taxpayer indicates they filed in accordance with Rev. Proc. 88-10 or Rev. Proc. 2002-48. A reason for the delay must also be addressed.

8038-T

reasonable cause isn't accepted on this form. All reasons need to be referred to TEB within 21 days, for consideration.

If the taxpayer indicates the failure to file or pay was due to willful neglect, reasonable cause may not be granted. Willful neglect is defined as Conscious, intentional failure to comply with the provisions of the IRC, or reckless indifference to such provisions

Reasonable cause or Rev. Proc. 88-10, 2002-48, or 90-11 doesn't apply to Form 8328 and Form 8038-CP.

Field 01RCD is the received date and is date-stamped by Receipt and Control or perfected by Code and Edit in the center portion of the return and is 8 positions. A received date is always required.

This field is invalid if:

Not in YYYYMMDD format.

Later than the current processing date.

Prior to 19850101 on Form 8038, Form 8038-G and Form 8038-GC.

Prior to 19540101 on Form 8038-T.

Prior to 20090101 on Form 8038-TC.

Prior to 20090217 on Form 8038-B and Form 8038-CP.

Prior to 19881101 on Form 8703.

Not all numeric.

It’s blank.

The Received Date 01RCD is equal to or prior to the Date of Issue, 01DTI (both Fields 01RCD and 01DTI will be invalid) for Form 8038, Form 8038-B, Form 8038-G, Form 8038-TC and Form 8038-GC.

Correct any coding and transcription errors.

If

Then

multiple dates are present,

use the earliest date.

there isn’t a received date or the date stamp is illegible on the return,

Determine the date in the following order:

U.S. Postal Service Postmark Date/Foreign Postmark/Designated Private Delivery Service (i.e., Federal Express).

If the U.S. Postal Service, Foreign Postmark and Private meter marks are present, honor the U.S. Postal Service date.

SCAMPS (service center automatic mail processing system) digital date.

Revenue Agent’s signature date.

Signature Date (only within current tax year).

Julian Date minus 10 days.

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

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

change Field 01RCD to agree with the postmark date.

the received date is equal to or prior to Field 01DTD (Date of Issue), both 01RCD and 01DTI will be invalid.

change 01RCD to one day later than Field 01DTI.

Use the signature date if it’s within the current processing year.

Field 01CRD is the Correspondence Received Date (CRD) and is edited below the address in the entity section and is 8 positions. When a return has been treated as not processed and the taxpayer has been contacted, the date the reply is received with the pertinent information is the Correspondence Received Date.

The CRD is determined from the date the reply is received at the service center.

This field is invalid if one of the following conditions exist:

Not all numeric.

The date is earlier than or equal to the Return Due Date (see Exhibit 3.12.26-2 for return due dates).

The date is equal to or earlier than the Received Date.

The date is later than the processing date.

CCC "3" is present.

Both the original Received Date and the CRD must be present

If

Then

the reply isn't date stamped,

Use the U.S. Postal Service postmark date on the envelope attached to the reply as the CRD.

faxed reply is received,

Determine the CRD in the following priority:

Correspondence received date stamp.

Date the reply was faxed.

Date entered on fax cover sheet by taxpayer.

Current date.

both the CRD and CCC "3" a present,

If no reply, delete the CRD.

If reply is received, delete CCC 3

Field 01NM1 is the Name of the Entity Issuing the Bonds (not the name of the entity receiving the benefit of the financing), located in Part I and is 35 positions.

Form 8703 - Field 01NM1 is the "Operator of Project" name and located in Part I.

The first position isn't alpha or numeric.

Any characters aren’t alpha, numeric, ampersand, hyphen, or blank.

There are two consecutive blanks followed by valid characters.

Blank.

Compare the screen display with the entry on the return.

If

Then

the field was transcribed incorrectly,

correct the field.

the issuer or operator name exceeds 35 characters,

continue the name in Field 01NM2.

Field 01NM2 is the second name line of the entity issuing the bond (not the name of the entity receiving the benefit of the financing), or the operator of project (Form 8703), located in Part I and is 35 positions. The field is also used as an overflow for the first name line.

The first position isn't alpha or numeric.

Any characters are not alpha, numeric, ampersand, hyphen, or blank.

There are two consecutive blanks followed by valid characters.

Compare the screen display with the entry on the return.

If the field is transcribed incorrectly, correct the field.

Field 01CON is the In Care of Name Line, located in Part I and is 35 positions.

The field may be alpha and numeric.

The field is valid if blank.

Correct any coding or transcription errors.

Field 01FAD is the Foreign Address, located in Part 1 and is 35 positions.

The field can be alpha, numeric, and special characters.

The field is valid if blank.

The field is invalid if any of the following conditions exist:

The first position is blank.

Any character follows two consecutive blanks.

There are more than 35 characters present in the field.

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

Foreign addresses shouldn’t be accepted on tax exempt bond forms. If a foreign address is present, refer to the Unprocessable procedures outlined below.

To be processable, a return must contain the following:

Employer Identification Number,

Legible name,

Legible address

Valid tax period

Report number

An "unprocessable" return may consist of one or more of the following:

The name is so illegible or incomplete that the name control can’t be determined.

The EIN is missing, illegible, or other than 9 digits.

Required tax data entered on the return is incomplete, illegible, or contradictory.

A foreign address is entered in the entity section or the address is missing or illegible.

If Form 8038-CP, Part I entity doesn't match the entity in Part II, a foreign address is valid. Continue to process with the foreign address.

Examine all attachments and schedules for information necessary to make the return processable. If the information is found on attachments or schedules, edit to the appropriate area on the return.

If required information isn't found on an attachment or schedule:

Perfect the return as much as possible.

SSPND 450.

Route unprocessable returns as follows:

Route

With

To

Perfected numbered or unnumbered returns

unresolved entity issues (i.e. missing/invalid EIN, address missing or illegible)

Entity and attach a completed Form 4227.

Unnumbered returns

a foreign address

TE/GE SE:T:HQ:SS:BSP:SPP&O MS: 1110

Numbered returns

a foreign address

TE/GE SE:T:HQ:SS:BSP:SPP&O MS: 1110 and

SSPND 450.

Attach a completed Form 4227.

Annotate the unprocessable condition and include the mail stop.

Field 01ADD is the Street Address, located in Part I and is 35 positions.

The is field is invalid if:

The first position is blank.

Any characters are not alpha, numeric, blank, hyphen (-), and slash (/).

There are two consecutive blanks followed by valid characters.

A Major City Code (MCC) is present in Field 01CTY and a street address isn't present.

Refer to the street address on the return.

Correct any coding or transcription errors.

If

Then

the address on the return is illegible,

refer to the envelope and attachments to determine the taxpayer's correct address.

you can’t perfect the address,

delete Fields 01ADD, 01CTY, 01ST, and 01ZIP.

To verify the major city code (MCC), refer to Document 7475, State Abbreviations, Major City Codes and Address Abbreviations.

If

Then

the MCC is correct and valid, and the street address is present and legible on the return,

enter the street address in Field 01ADD.

a valid street address isn't available from the return or attachments,

enter the name of the city in Field 01CTY and state in Field 01ST.

Field 01CTY is the City ,located in Part I and is 22 positions.

The first, second and third positions a blank.

A character follows the first two adjoining blanks.

Any character isn't alpha or blank.

The MCC is invalid.

The foreign country code is present, incorrect, or contains XX.

Correct any coding or transcription errors.

If

Then

the city on the return is illegible,

refer to the envelope and attachments to determine the correct city.

you can’t perfect the city,

delete address fields 01ADD, 01CTY, 01ST, and 01ZIP.

The city field (01CTY) and state code field (Field 01ST) a invalid if a MCC and a state code is present in Field 01ST. To correct, refer to the return and Document 7475, to verify the MCC.

If

Then

the MCC is correct,

delete the state code entered in Field 01ST.

the MCC isn't correct,

enter the full name of the city in Field 01CTY.

Verify the state code entered in Field 01ST is correct.

This field and the ZIP code field are invalid if a MCC is present and the ZIP code isn't valid for the city.

To correct, refer to the return and Document 7475, to determine the correct MCC and ZIP code

If

Then

the ZIP code and MCC were transcribed correctly, and the ZIP code is invalid for the city,

Refer to the envelope and attachments to locate a valid ZIP code.

If one is located, enter in Field 01ZIP.

the correct ZIP code isn't available on the document or attachments,

Look up the ZIP code in Document 7475

Enter into Field 01ZIP.

Field 01ST is the State, located in Part I is 2 positions.

This field contains two alpha characters.

It’s blank and MCC isn't present in Field 01CTY.

It contains other than a valid state code.

Correct any coding or transcription errors.

Refer to the return and Document 7475 to determine the correct state code.

If

Then

the state code can’t be determined,

check the return and attachments.

you can’t perfect it,

delete entries in fields 01ADD, 01CTY, 01ST, and 01ZIP.

Both 01ST and 01ZIP is invalid if the ZIP code isn't valid for the state. To correct, refer to the return and Document 7475, to verify the state and ZIP code.

If

Then

the state code is incorrect,

determine the correct code and enter it in Field 01ST.

the ZIP code isn't valid for the state,

refer to the envelope and attachments to obtain a valid code.

a valid ZIP code can’t be found on the return or attachments,

refer to Document 7475.

Returns with address changes in the following American possessions can be input with the return the same as a domestic address:

American Samoa (AS)

Mariana Islands (MH)

Puerto Rico (PR)

Virgin Island (VI)

Guam (GU)

Field 01ZIP is the ZIP Code, located in Part I is 12 positions.

This position contains 5, 9, or 12 characters.

It isn't all numeric or blank.

There are not 5, 9, or 12 numeric characters.

Correct any coding or transcription errors.

Refer to the return and attachments to determine the correct ZIP code.

If a valid ZIP code can’t be found, refer to Document 7475 to determine the correct ZIP code.

Field 01NM3 is the Operator of Project, located in Part I is 35 positions.

The first position isn't alpha or numeric.

Any characters aren’t alpha, numeric, ampersand or hyphen.

There are two consecutive blanks, followed by valid characters.

Correct any coding or transcription errors.

If the name of issue exceeds 35 characters, enter only the first 35 characters.

Field 01NM4 is the second name line of the Operator of Project, located in Part I is 35 positions. The field is also used as an overflow for the first name line.

The first position isn't alpha or numeric.

Any characters are not alpha, numeric, ampersand, hyphen, or blank.

There are two consecutive blanks followed by valid characters.

Compare the screen display with the entry on the return.

If the field is transcribed incorrectly, correct the field.

Field 01AD2 is the Owner of Project Street Address, located in Part I is 35 positions.

The first position is blank.

Any characters are not alpha, numeric, blank, hyphen (-), and slash (/).

There are two consecutive blanks followed by valid characters.

A Major City Code (MCC) is present in Field 01CT2 and a street address isn't present.

Refer to the street address on the return.

Correct any coding or transcription errors.

If the address on the return is illegible or can’t be perfected, delete Fields 01AD2, 01CT2, 01ST2, and 01ZP2

To verify the major city code (MCC), refer to Document 7475, State Abbreviations, Major City Codes and Address Abbreviations.

If

Then

the MCC is correct and valid, and the street address is present and legible,

enter the street address in Field 01AD2.

a valid street address isn't available from the return or attachments,

enter the name of the city in Field 01CT2 and state in Field 01ST2.

Field 01CT2 is the City of the Owner of Project, located in Part I is 22 positions.

The first, second and third positions a blank.

A character follows the first two adjoining blanks.

Any character isn't alpha or blank.

The MCC is invalid.

The foreign country code is present, incorrect, or contains XX.

Correct any coding or transcription errors.

If

Then

the city on the return is illegible or can’t be perfected,

delete address fields 01AD2, 01CT2, 01ST2, and 01ZP2.

The city field (01CT2) and state code field (Field 01ST2) is invalid if a MCC and a state code is present in Field 01ST2. To correct, refer to the return and Document 7475 to verify the MCC.

If

Then

the MCC is correct,

delete the state code entered in Field 01ST2.

the MCC isn't correct,

enter the full name of the city in Field 01CT2.

Verify the state code entered in Field 01ST2 is correct.

This field and the ZIP code field is invalid if a MCC are present and the ZIP code isn't valid for the city.

To correct, refer to the return and Document 7475, to determine the correct MCC and ZIP code.

If

Then

the ZIP code and MCC were transcribed correctly, and the ZIP code is invalid for the city,

Refer to the envelope and attachments to locate a valid ZIP code.

If one is located, enter in Field 01ZP2.

the correct ZIP code isn't available on the document or attachments,

Look up the ZIP code in Document 7475.

Enter into Field 01ZP2.

Field 01ST2 is the Owner of Project State, located in Part I and is 2 positions.

If it isn’t alpha.

It’s blank and MCC isn't present in Field 01CT2.

It contains other than a valid state code.

Correct any coding or transcription errors.

Refer to the return and Document 7475 to determine the correct state code.

If

Then

the state code can’t be determined or perfected,

delete entries in fields 01AD2, 01CT2, 01ST2, and 01ZP2.

Both 01ST2 and 01ZP2 will be invalid if the ZIP code isn't valid for the state. To correct, refer to the return and Document 7475, to verify the state and ZIP code.

If

Then

the state code is incorrect,

determine the correct code and enter it in Field 01ST2.

the ZIP code isn't valid for the state or can’t be found on the return,

refer to Document 7475.

Returns with address changes in the following American possessions can be input with the return the same as a domestic address:

American Samoa (AS)

Puerto Rico (PR)

Virgin Islands (VI)

Guam (GU)

Field 01ZP2 is the Owner of Project ZIP Code, located in Part I and is 12 positions.

It isn't all numeric or blank.

There aren’t 5, 9, or 12 numeric characters.

Correct any coding or transcription errors.

Refer to the return and attachments to determine the correct ZIP code.

If a valid ZIP code can’t be found, refer to Document 7475 to determine the correct ZIP code.

Field 01BLD is the Building or Project Street Address, located in Part I and is 35 positions.

The first position is blank.

Any characters isn’t alpha, numeric, blank, hyphen (-), and slash (/).

There are two consecutive blanks followed by valid characters.

A Major City Code (MCC) is present in Field 01CT3 and a street address isn't present.

Refer to the building/project street address on the return.

Correct any coding or transcription errors.

If the address on the return is illegible or can’t be perfected, delete Fields 01BLD, 01CT3, 01ST3, and 01ZP3.

To verify the major city code (MCC), refer to Document 7475, State Abbreviations, Major City Codes and Address Abbreviations.

If

Then

the MCC is correct and valid, and the building/project street address is present and legible on the return,

enter the street address in Field 01BLD.

a valid street address isn't available from the return,

enter the name of the city in Field 01CT3 and state in Field 01ST3.

Field 01CT3 is the City of the Building or Project, located in Part I and is 22 positions.

The first, second and third position are blank.

A character follows the first two adjoining blanks.

Any character isn't alpha or blank.

The MCC is invalid.

The foreign country code is present, incorrect, or contains XX.

Refer to the city shown on the return.

Correct any coding or transcription errors.

If

Then

the city on the return is illegible or can’t be perfected,

delete address fields 01BLD, 01CT3, 01ST3, and 01ZP3.

The city field (01CT3) and state code field (Field 01ST3) a invalid if a MCC and a state code is present in Field 01ST3. To correct, refer to the return and Document 7475, to verify the MCC.

If

Then

the MCC is correct,

delete the state code entered in Field 01ST3.

the MCC isn't correct,

enter the full name of the city in Field 01CT3.

Verify the state code entered in Field 01ST3 is correct.

This field and the ZIP code field are invalid if a MCC is present and the ZIP code isn't valid for the city.

To correct, refer to the return and Document 7475, to determine the correct MCC and ZIP code. Enter the valid ZIP code in Field 01ZP3.

Field 01ST3 is the Building or Project State, located in Part I and is 2 positions.

It isn’t two alpha characters.

It’s blank and MCC isn't present in Field 01CT3.

It contains other than a valid state code.

Correct any coding or transcription errors.

Refer to the return and Document 7475 to determine the correct state code.

If

Then

the state code can’t be determined or perfected,

delete entries in fields 01BLD, 01CT3, 01ST3, and 01ZP3.

Both 01ST3 and 01ZP3 will be invalid if the ZIP code isn't valid for the state. To correct, refer to the return and Document 7475, to verify the state and ZIP code.

If

Then

the state code is incorrect,

determine the correct code and enter it in Field 01ST3.

the ZIP code isn't valid for the state or can’t be found on the return,

refer to Document 7475.

Returns with address changes in the following American possessions can be input with the return the same as a domestic address:

American Samoa (AS)

Puerto Rico (PR)

Virgin Islands (VI)

Guam (GU)

Field 01ZP3 is the Building or Project ZIP Code, located in Part I and is 12 positions.

It isn't all numeric or blank.

There are not 5, 9, or 12 numeric characters.

Correct any coding or transcription errors.

Refer to the return to determine the correct ZIP code.

If a valid ZIP code can't be found, refer to Document 7475 to determine the correct ZIP code.

Field 01INM is the Name of Issue, is 35 positions, and may be alpha and numeric. It's located as follows:

Form 8038, Form 8038-B, Form 8038-G, and Form 8038-TC - Part I, line 8.

Form 8038-GC, Form 8328 and Form 8703 - Not valid on these forms. If present, delete entry.

This field is valid if blank.

The first position isn't alpha or numeric.

Any character isn’t alpha, numeric, ampersand or hyphen.

There are two consecutive blanks, followed by valid characters.

To correct Form 8038, Form 8038-B, Form 8038-G, and Form 8038-TC:

Correct any coding or transcription errors.

If the name of issue exceeds 35 characters, enter only the first 35 characters.

Field 01DTI is the Date of Issue, is 8 positions and located as follows:

Form 8038: Part I, line 7

Form 8038-B: Part I, line 7

Form 8038-G: Part I, line 7

Form 8038-GC: Part II, line 8b

Form 8038-TC: Part I, line 7

Form 8328 and Form 8703: Not valid on these forms. If present, delete the entry.

The field isn't present or isn’t numeric.

It’s equal to or after the received date. Field 01RCD will also be invalid.

It isn't equal to the tax period Field 01TXP. Field 01TXP will also be invalid.

Compare the entry on Field 01DTI with the return and correct any coding or transcription errors.

Enter the date in YYYYMMDD format.

If

Then

the Date of Issue is equal to or after the received date,

change Field 01RCD (received date) to one day later than Field 01DTI (Date of Issue).

more than one date is present,

enter the earliest date.

One of the following apply:

Forms 8038, 8038-G, and 8038-GC Date of Issue is prior to 198501,

Form 8038-TC Date of Issue is prior to 03/18/2010,

Form 8038-B Date of Issue is prior to 02/17/2009,

the Date of Issue is missing,

SSPND 211.

Rejects will:

If

Then

the reply is incomplete or no reply is received,

Enter CCC "3" in 01CCC and enter the signature date in the Date of Issue and tax period.

If the signature is missing and no reply is received, enter the IRS received date minus 10 days in 01TXP, and 01DTI.

a reply is received,

Enter the date in 01TXP and 01DTI. and enter the correspondence received date in 01CRD.

Tax Period: (blank) Date of Issue: (blank) Signature Date: (blank) IRS Received Date: Feb. 2, 2019 Minus Ten Days: Jan. 23, 2019 Date of Issue: 01/23/2019 Tax Period: 201901

Field 01CUS is the CUSIP Number, is 12 positions and may be alpha, numeric or blank. It's located on the form as follows:

Form 8038: Part I, Line 9

Form 8038-B: Part I, Line 9

Form 8038-CP, Part II, Line 14

Form 8038-G: Part I, Line 9

Form 8038-TC: Part I, Line 9

Form 8038-GC, Form 8328 or Form 8703 - Not valid with this form. If present, delete the entry.

Correct any coding and transcription errors.

The CUSIP number is a combination of nine alpha and numeric characters.

If

Then

multiple CUSIP numbers are present,

enter the first number in Field 01CUS.

fewer than nine characters,

enter the number of characters present on line 9 in Field 01CUS.

the word "None" is present,

enter "None" in Field 01CUS.

blank,

leave blank.

Field 01CAF is the CAF Code Indicator and is 1 position.

The CAF indicator is no longer edited by Code & Edit

If the field has an entry, delete the entry.

Field 01SIG is the Signature Code and located in the right margin of the Signature line in Part III and is 1 position.

It’s not numeric.

The entry is other than 1 (signature present) or 3 (signature not present) after correspondence and no reply.

Correct any coding and transcription errors.

If

Then

a signature is present,

enter a "1" in the right margin next to the signature block.

a signature only is missing,

SSPND 225.

Rejects will:

If

Then

a valid reply is received,

Enter a "1" in Field 01SIG.

Enter the correspondence received date in Field 01CRD.

no reply or an incorrect reply is received,

Enter CCC "3" in Field 01SIG.

Enter a "3" in Field 01CCC.

Field 01PRE is the Preparation Code, located in the right margin of the preparer’s SSN or PTIN box and is 1 position.

It’s not numeric.

The entry is other than 1 or blank.

Edit a Preparation Code "1" in the right margin next to the preparer's SSN or PTIN box if both of the following apply:

The return is signed by a preparer.

The paid preparer’s section has information that’s different than the person signing the return.

Field 01PSN is the Preparer’s SSN or PTIN ,located in the paid preparer’s signature portion in Part II, in the preparer’s SSN or PTIN box and is 9 positions.

The preparer SSN must be a nine-digit number. A preparer’s Tax Identification Number (PTIN) is a valid entry in the preparer's Social Security Number or PTIN area at the bottom of Form 8703. The PTIN is nine digits beginning with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX).

The first position is other than numeric or a P.

The field is all zeros or all nines or the first position is P and the remaining positions are all zeros or all nines.

Other than the first position isn't numerics.

Delete. Don’t attempt to correct the field.

Field 01PEN, Preparer's EIN is located in the Paid Preparer's signature portion in the Firm's EIN box, in Part III and is 9 positions.

If present, the field may be any combination of numerics, except all zeros or all nines. The first character may be a "P" .

The first position is other than numeric.

The field is all zeros or all nines.

Delete. Don’t attempt to correct the field.

Field 01PTN, Preparer's Telephone Number is located in the paid preparer signature portion, in the Firm's Phone number box and is 10 positions.

If more than 10 digits are present, enter the first 10 digits only and continue processing.

If the paid preparer phone number is incomplete, illegible, or fewer than 10 digits, review the return and all attachments.

If

Then

a complete paid preparer phone number is located elsewhere on the return or attachments,

edit to the phone number line.

a complete paid preparer phone number isn’t located or the number is illegible,

Delete. Don’t attempt to correct the field.

Leave the entry in the location it appears.

No need to move the entry to the first code and amount positions if listed in the third code and amount positions.

an amount is present, but missing a corresponding code,

Perfect from attachments.

If it can't be perfected, edit a "1" in the amount.

Leave the entry in the location it appears.

No need to move the entry to the first code and amount positions if listed in the third code and amount positions.

you can’t correct it,

Delete entries in Field 0332A (line 32a code) and Field 0332B (line 32a $).

Field 0332B is the first NAICS Amount, located on Form 8038 in Part V, Line 32a $ and is 15 positions.

The field is dollars only.

Is not numeric.

There’s an entry in Field 0332A (line 32a code) and Field 0332B (line 32a $) is blank.

There’s an entry in Field 0332B (line 32a $) and Field 0332A (line 32a code) is blank.

Correct any coding or transcription errors.

Refer to the procedures outlined in IRM 3.12.26.6.21.2 to correct Part V, Line 32a - d, NAICS Code and NAICS Amount of Non-refunding Proceeds.

Field 0332C is the second NAICS Code, located on Form 8038 in Part V, Line 32b and is 6 positions.

The field may be alpha and numeric.

There’s an entry in Field 0332C (line 32b code) and Field 0332D (line 32b $) is blank.

There’s an entry in Field 0332D (line 32b $) and Field 0332C (line 32b code) is blank.

Correct any coding or transcription errors.

Refer to the procedures outlined in IRM 3.12.26.6.21.2 to correct Part V, Line 32a - d, NAICS Code and NAICS Amount of Non-refunding Proceeds.

Field 0332D is the second NAICS Amount, located on Form 8038 in Part V, Line 32b $ and is 15 positions.

The field i dollars only.

There’s an entry in Field 0332D (line 32b $) and Field 0332C (line 32b code) is blank.

There’s an entry in Field 0332C (line 32b code) and Field 0332D (line 32b $) is blank.

Correct any coding or transcription errors.

Refer to the procedures outlined in IRM 3.12.26.6.21.2 to correct Part V, Line 32a - d, NAICS Code and NAICS Amount of Non-refunding Proceeds.

Field 0332E is the third NAICS Code and has up to 6 positions. It's located on Form 8038 in Part V, Line 32c and is 6 positions.

The field may be alpha and numeric.

There’s an entry in Field 0332E (line 32c code) and Field 0332F (line 32c $) is blank.

There’s an entry in Field 0332F (line 32c $) and Field 0332E (line 32c code) is blank.

Correct any coding or transcription errors.

Refer to the procedures outlined in IRM 3.12.26.6.21.2 to correct Part V, Line 32a - d, NAICS Code and NAICS Amount of Non-refunding Proceeds.

Field 0332F is the third NAICS Amount, located on Form 8038 in Part V, Line 32c $ and is 15 positions.

The field is dollars only.

There’s an entry in Field 0332F (line 32c $) and Field 0332E (line 32c code)is blank.

There’s an entry in Field 0332E (line 32c code) and Field 0332F (line 32c $) is blank.

Correct any coding or transcription errors.

Refer to the procedures outlined in IRM 3.12.26.6.21.2 to correct Part V, Line 32a - d, NAICS Code and NAICS Amount of Non-refunding Proceeds.

Field 0332G is the fourth NAICS Code, located on Form 8038 in Part V, Line 32d and is 6 positions.

The field may be alpha and numeric.

There’s an entry in Field 0332G (line 32d code) and Field 0332H (line 32d $) is blank.

There’s an entry in Field 0332H (line 32d $) and Field 0332G (line 32d code) is blank.

Correct any coding or transcription errors.

Refer to procedures outlined in IRM 3.12.26.6.21.2 to correct Part V, Line 32a - d, NAICS Code and NAICS Amount of Non-refunding Proceeds.

Field 0332H is the fourth NAICS Amount, located on Form 8038 in Part V, Line 32d $ and is 15 positions.

The field is dollars only.

There’s an entry in Field 0332G (line 32d code) and Field 0332H (line 32d $) is blank.

There’s an entry in Field 0332H (line 32d $) and Field 0332G (line 32d code) is blank.

Correct any coding or transcription errors.

Refer to procedures outlined in IRM 3.12.26.6.21.2 to correct Part V, Line 32a - d, NAICS Code and NAICS Amount of Non-refunding Proceeds.

Field 0333 is the Weighted Average Maturity Currently Refunded Years, located on Form 8038 in Part VI, Line 33 and is 2 positions.

The field is valid if blank.

The field will be invalid if it isn’t numeric.

Correct any coding or transcription errors.

Field 0334 is the Weighted Average Maturity Advance Refunded Years, located on Form 8038 in Part VI, Line 34 and is 2 positions.

The field is valid if blank.

The field will be invalid if it isn’t numeric.

Correct any coding or transcription errors.

Field 0335 is the Refunded Bond Call Date, is in YYYYMMDD format, located on Form 8038 in Part VI, Line 35 and is 8 positions.

The field is valid if blank.

It is not numeric.

Is not in YYYYMMDD format.

Correct any coding or transcription errors.

If more than one date is present, enter the latest date shown.

Field 0336 is the Refunded Bond Issue Date, is in YYYYMMDD format, located on Form 8038 in part VI, Line 36 and is 8 positions.

The field is valid if blank.

It is not numeric.

Is not in YYYYMMDD format.

Correct any coding or transcription errors.

If more than one date is present, enter the earliest date shown.

1- Line entry is five and one half, you would enter 0550 in Field 0543. 2- Line entry is 10 3/4, you would enter 1075 in Field 0543. 3- Line entry is 5.26, you would enter 0526 in Field 0543.

Field 0544 is the Yield Percentage, located on Form 8038-B in Part IV, line 4 and is 6 positions.

The field is valid if it’s blank.

It’s not numeric.

It’s more or less than 6 positions.

Correct any coding or transcription errors.

The entry can be in decimals out to the 4th position as XX.XXXX and must be entered as such, filling in zeros before and after to equal 6 positions.

1- Line entry is five and one half, you would enter 055000 in Field 0544. 2- Line entry is 10 3/4, you would enter 107500 in Field 0544. 3- Line entry is 5.26, you would enter 052600 in field 0544.

Field 0545A is the Variable Rate Issue Check Box, located on Form 8038-B in Part IV, line 5a and is 1 position.

It’s not numeric.

The entry is other than "1" or blank.

Correct any coding or transcription errors.

If

Then

box 5a is checked,

enter a "1" .

the box isn't checked,

delete the entry in Field 0545A.

Field 0551 is the Sales Proceeds Amount, located on Form 8038-B in Part V, line 1 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 0552 is the Expected Investment Proceeds Amount, located on Form 8038-B in Part V, line 2 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 0553 is the Proceeds Used for Accrued Interest Amount, located on Form 8038-B in Part V, line 3 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 0554 is the Proceeds Used for bond Issuance Cost Amount, located on Form 8038-B in Part V, line 4 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 0555 is the Proceeds Used for Credit Enhancement Amount, located on Form 8038-B in Part V, line 5 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 0556 is the Proceeds Allocated to a Reasonably Required Reserve Fund Amount, located on Form 8038-B in Part V, line 6 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 0557 is the Proceeds Used for Capital Expenditures Amount, located on Form 8038-B in Part V, line 7 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 0558 is the Proceeds Used for Working Capital Expenditures Amount, located on Form 8038-B in Part V, line 8 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 0559 is the Proceeds Used to Currently Refund Prior Issues Amount, located on Form 8038-B in Part V, line 9 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

Field 05510 is the Proceeds Used to Advance Refund Prior Issues Amount, located on Form 8038-B in Part V, line 10 and is 15 positions.

Field is dollars only.

The field is valid if it’s blank.

Correct any coding or transcription errors.

If Interest Payment Date is April 12, 2019, Field 01TXP is 201904.

Early filed procedures don’t apply to the Form 8038-CP. If an early filed Form 8038-CP is identified, route the return to the SPP&O Analyst, MS: 1110.

Field 01RPT is the Report Number, located in Part II, line 10 and is 3 positions.

It isn't numeric.

It is other than blank or 200-299, 400-499 or 800-899.

Correct any coding or transcription errors.

If

Then

the report number is blank or other than 200-299, 400-499 or 800-899,

SSPND 490.

Contact SPP&O Analyst via secure e-mail for correction. See IRM 3.12.26.10 (3) above for routing procedures.

Field 01CCC is Computer Condition Code, is edited on the Part III title line in the middle and is 10 positions.

The valid codes for Form 8038-CP are "D" , "F" , "G" , "R" , "3" , "O" , "W" ,, "C" and "X" .

All Forms 8038-CP must have a CCC "C" edited on the return.

CCC "G" and any CCC other than "3" is present.

CCC "7" is present with both CCC "D" and "R" .

CCC "C" isn't present on Form 8038-CP.

Correct any coding or transcription errors.

If CCC "C" is not present on Form 8038-CP, edit CCC "C" on the return and enter "C" in Field 01CCC.

If the codes were entered incorrectly, refer to the return and the CCC table below to determine which codes are necessary.

Late filing and paying penalties do not apply to Form 8038-CP, so do not enter CCC "R" and "D" . Continue processing return.

If

Then

the return is an amended return,

Cancel the DLN.

Attach Form 4227 stating "Cancel to Accounts Management" (MS: 6276).

CCC "G" is valid, but currently not being used for paper processing.

CCC

DEFINITION

USE IF

FOR FORM(S)

D

Reasonable cause for failure to pay timely

Untimely paid return and reasonable cause is established in accordance with Revenue Procedure 90-11.

If prepaid penalty is included, DO NOT use Condition Code "D" .

8038-T

F

Final return

Return indicates It's a Final.

8038-T

8038-CP

G

Amended return

Amended returns. (Not applicable to TEB returns.)

8038

8038-G

8038-GC

8038-T

8328

8703

R

Reasonable cause for failure to file return timely

Untimely filed return and reasonable cause is established in accordance with Rev. Proc. 88-10 ; Rev. Proc. 2002-48, Rev. Proc. 90-11, or Rev. Proc. 2005-40.

8038

8038-G

8038-GC

8038-T

8703

3

No Reply

Input when issuer doesn't reply to IRS correspondence.

8038

8038-CP

8038-G

8038-GC

8038-T

8328

8703

7

Reasonable cause was considered and denied.

Return was "referred to TEB" or

Form 8038-T was secured by TEB and a late filing CP 142 notice won’t be generated.

Reasonable cause was not granted.

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

Form 8038-T CP 142 late filing correspondence won’t be issued because the return was secured by TEB.

8038

8038-B

8038-G

8038-GC

8038-T

8703

O

Input when a refund is over ≡ ≡ ≡ ≡ ≡ ≡ ≡ which is the amount set for manual refunds to be issued; however, for Form 8038-CP if Line 22 is over ≡ ≡ ≡ ≡ ≡ ≡ ≡ it needs to be sent to SPP&O for review.

Input when the SPP&O Analyst performing the initial review requests a refund be stopped (regardless of the amount).

CCC O freezes the affected tax module unless or until a TC 840 transaction is posted.

Used to stop a refund from generating so a manual refund can be done.

8038-CP

H

Form 8038-G, Line 18- other described as Tribal Economic Development Bond

The description on Form 8038-G, line 18 other reads Tribal Economic Development Bond.

8038-G

W

Prevents the validity check on returns which are filed two years and nine months after the due date. Indicates Statute Cleared.

Edit CCC W if the statute return is stamped Cleared by Statute.

Edit CCC "W" only when the return processing date is two years and nine months after the return due date or received date, whichever is later.

8038-CP

C

Indicates a Form 8038-CP is subject to the sequestration decrease.

CCC C isn't present on a Form 8038-CP.

8038-CP

X

Module freeze

Used to freeze module from refunding or offsetting credit.

8038-CP

Field 01RCD is the received date and date-stamped by Receipt and Control or perfected by SPP&O Analyst in the center portion of the return. A receive date is always required and is 8 positions.

It’s not in YYYYMMDD format.

Later than the current processing date.

Prior to 200901.

It’s not all numeric.

It’s blank.

The Received Date 01RCD is equal to or prior to the Interest payment Date, 0218. Both Fields 01RCD and 0218 are invalid.

Correct any coding or transcription errors.

If

Then

multiple dates are present,

use the earliest date.

there’s no received date or the date stamp is illegible on the return,

Determine the date in the following order and enter the date in the Field 01RCD:

U.S. Postal Service Postmark Date/Designated Private Delivery Service (i.e., Federal Express).

If both U.S. Postal Service and Private meter marks are present, honor the U.S. Postal Service date.

SCAMPS (service center automatic mail processing system) digital date

Revenue Officer's or other IRS officials’ signature date

Signature Date if within current year unless other information indicates signature date is invalid.

Julian Date minus 10 days

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

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

change Field 01RCD to agree with the postmark date.

Field 01CRD is the Correspondence Received Date (CRD) and is 8 positions.

Not all numeric.

The date is earlier than or equal to the return due date. See Exhibit 3.12.26-2 for return due dates.

The date is equal to or earlier than the received date.

The date is later than the processing date.

CCC "3" is present.

Correct any coding or transcription errors.

Both the original Received Date and the Correspondence Received Date must be present.

the reply isn't date stamped,

use the U.S. Postal Service postmark date on the envelope attached to the reply as the CRD.

a faxed reply is received,

Refer to IRM 3.12.38, ERS BMF General Instructions to determine the correct CRD.

both the CRD and CCC 3 are present,

If a "No Reply," delete the CRD.

If reply is received, delete CCC "3" .

Field 01NME is the Name of the Entity to Receive the Payment of Credit, located in Part I, line 1 and is 35 positions.

The first position isn't alpha or numeric.

Any character isn’t alpha, numeric, ampersand, hyphen, or blank.

There are two consecutive blanks followed by valid characters.

Compare Field 01NME entry with the entry on the return.

If

Then

the field was transcribed incorrectly,

correct Field 01NME.

the issuer name exceeds 35 characters,

continue the name in Field 01NM2.

Field 01NM2 is the second name line of the entity issuing the bonds, located in Part I. The field is also used as an overflow for the first name line and is 35 positions.

The first position isn't alpha or numeric.

Any character isn’t alpha, numeric, ampersand, hyphen, or blank.

There are two consecutive blanks followed by valid characters.

Compare Field 01NM2 with the name on the return.

If the field was transcribed incorrectly, correct Field 01NM2.

Field 01CON is the In Care of Name Line, located in Part I, Entity Section and is 35 positions.

The field is valid if it’s blank.

Any characters are not alpha or numeric.

Correct any coding or transcription errors.

Field 01FAD is the Foreign Address, located in Part 1, Entity Section and is 35 positions which can include alpha, numeric, and special characters.

The field is valid if it’s blank.

The first position is blank.

Any character follows two consecutive blanks.

There are more than 35 characters present in the field.

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

Normally, a foreign address is not acceptable on tax exempt bond forms. If a foreign address is present, contact the OSPC P&A analyst who will elevate the issue to the TE/GE HQ analyst with oversight of the TEB program.

If Form 8038-CP, Part I entity doesn't match the entity in Part II, a foreign address is valid. Continue to process with the foreign address.

If a foreign address isn't present on the return:

SSPND 610

Renumber return to domestic.

Field 01ADD is the Street characters, located in Part I, line 3 and is 35 positions.

The first position is blank.

Any character isn’t alpha, numeric, blank, hyphen (-), and slash (/).

There are two consecutive blanks followed by valid characters.

A Major City Code (MCC) is present in Field 01CTY and a street address isn't present.

Correct any coding or transcription errors.

Refer to the street address on the return.

If

Then

the address on the return is illegible,

refer to the envelope and/or attachments to determine the taxpayer’s correct address.

you can’t perfect it,

delete Fields 01ADD, 01CTY, 01ST and 01ZIP.

To verify the MCC, refer to Document 7475, State Abbreviations, Major City Codes and Address Abbreviations.

If

Then

the MCC is correct and valid, and the street address is present and legible on the return,

enter the street address to Field 01ADD.

a valid street address isn't available after research is conducted,

delete Fields 01ADD, 01CTY, 01ST and 01ZIP.

Field 01CTY is the City, located in Part I, line 4 and is 22 positions.

The first position is blank.

The second and third positions are blank.

A character follows the first two adjoining blanks.

Any character isn't alpha or blank.

The MCC is invalid.

Foreign country code isn't present, incorrect, or contains "XX" .

Correct any coding or transcription errors.

Refer to the city shown on the return.

If

Then

the city on the return is illegible,

refer to the envelope and attachments to determine the correct city.

you can’t perfect it,

delete address Fields 01ADD, 01CTY, 01ST and 01ZIP.

A MCC is present and A state code is also present in Field 01ST.

To correct, refer to the return and Document 7475, to verify the MCC.

If

Then

the MCC is correct,

delete the state code entered in Field 01ST.

the MCC isn't correct,

enter the full name of the city in Field 01CTY.

a foreign address is shown on the return,

contact the OSPC P&A analyst who will elevate the issue to the TE/GE HQ analyst with oversight of the TEB program.

Verify the state code entered in Field 01ST is correct.

This field and the ZIP code field a invalid if a MCC is present and the ZIP Code isn't valid for the city.

If

Then

the ZIP code and MCC were transcribed correctly, and the ZIP code is invalid for the city,

Refer to the envelope and attachments to locate a valid ZIP code.

One is located, enter in Field 01ZIP.

the correct ZIP code isn't available on the document or attachments,

look up the ZIP code in Document 7475 and enter into Field 01ZIP.

Field 01ST is the State, located in Part I, line 4 and is 2 positions.

The field contains two alpha characters.

It’s blank, and the MCC isn't present in Field 01CTY.

It contains other than a valid state code.

Correct any coding or transcription errors.

Refer to the return and Document 7475 to determine the correct state code.

Both 01ST and 01ZIP will be invalid if the ZIP code isn't valid for the state. To correct, refer to the return and Document 7475, to verify the state and ZIP code.

If

Then

the state code is incorrect,

determine the correct code and enter it in Field 01ST.

the ZIP code isn't valid for the state,

refer to the envelope and attachments to obtain a valid code.

a valid ZIP code can't be found on the return or attachments,

refer to Document 7475.

Returns with address changes in the following American possessions can be input with the return the same as a domestic address:

American Samoa (AS)

Mariana Islands (MH)

Puerto Rico (PR)

Virgin Islands (VI)

Guam (GU)

Field 01ZIP is the ZIP Code, located in Part I, line 4 and is 12 positions.

It isn't all numeric or blank.

There are not 5, 9 or 12 numeric characters.

Correct any coding or transcription errors.

Refer to the return and attachments to determine the correct ZIP code.

If a valid ZIP code can't be found, refer to Document 7475 to determine the correct ZIP code.

Field 01DTI is the Date of Issue, located in Part II, line 12 and is 8 positions.

The field isn't present or not numeric.

It’s equal to or after the received date (01RCD will also be invalid).

It’s blank.

It’s a future date (later than the IPD).

Correct any coding or transcription errors.

Enter the date in YYYYMMDD format.

If

Then

the Date of Issue is after the received date,

change Field 01DTI to 02172009.

more than one day is present,

enter the earliest date.

the Date of Issue is:

prior to 20090217,

blank, or

your can’t perfect it,

change Field 01DTI (Date of Issue) to 20090217.

the Date of Issue is a future date (later than the IPD),

SSPND 211.

Issue CRX 6436c letter (if correspondence hasn’t already been issued) requesting a valid issue date.

Rejects will:

If

Then

a reply is received,

Enter the correct "Date of Issue" in Field 01DTI.

Enter the correspondence received date in Field 01CRD.

no reply is received,

Reduce the credit by entering ≡ ≡ ≡ ≡ ≡ ≡ in Fields 0219A or 0219C (as applicable).

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220A - 0220F).

Enter the return received date in Field 01DTI.

Enter a "3" in Filed 01CCC.

Issue 5836c "No Consideration" letter to the Issuer (Part II entity).

Send a scanned copy of the return via secure e-mail to SPP&O Analyst. Annotate "No Consideration - 5836c sent" on the return.

Field 01INM is the Name of Issue, located in Part II, line 13 and is 35 positions.

The first position isn't alpha or numeric.

Any characters are not alpha, numeric, ampersand or hyphen.

There are two consecutive blanks, followed by valid characters.

Correct any coding or transcription errors.

If the name of issue exceeds 35 characters, enter only the first 35 characters.

If unable to correct, leave blank.

Field 01CUS is the CUSIP Number, located in Part II, line 14. It may be alpha, numeric and is 12 positions.

If the filer listed an entry of "NONE" , It's an acceptable entry.

Field 01CUS is invalid if it’s fewer than 9 characters or multiple CUSIP numbers are present.

Correct any coding or transcription errors.

The CUSIP number is a combination of nine alpha and numeric characters.

If

Then

multiple CUSIP numbers are present,

enter the first number in Field 01CUS.

fewer than nine characters,

enter the number of characters present on line 14 in Field 01CUS.

the word "None" is present,

enter "None" in Field 01CUS.

blank,

leave blank.

Field 01CAF is the CAF Code Indicator, located to the left of line 5 in the margin and 1 position.

Field is not numeric.

Entry is not 1 through 7.

If the field has an entry other than 1 - 7, delete field.

The CAF indicator is no longer edited by Code & Edit.

The Action Code is located in the bottom left margin if present and is 3 positions.

If the ERS AC is other than 001-999, see Exhibit 3.12.26-5 for a list of valid ERS AC.

TPNCs 01 through 07 must not be used on Form 8038-CP. If correspondence is necessary, use CRX letter 6436C or 5836C (as applicable).

Taxpayer Notice Code

Point of Error

Error message

01

Field 0222, Amount of Credit Payment

There was an error made on the amount reported for the amount of credit to be received in Part III line 22. Line 22 must equal the total of lines 20a, 20b, 20c, 20d, 20e, 20f, 21a and 21b.

02

Field 022A, Build America Bonds

There was an error made in your calculation for Build America bonds on Part III line 20a. The amount reported on Part III line 20a must equal 35% of line 19.

03

Field 022B, Recovery Zone Economic Development Bonds

There was an error made in your calculation for recovery zone economic development bonds on Part III line 20b. The amount reported on Part III line 20b must equal 45% of line 19.

04

Field 022C, New Clean Renewable Energy Bond

There was an error made in your calculation for the New Clean Renewable Energy Bonds on Part III, line 20c. The amount reported on Part III, line 20c must be the lesser of line 19a or line 19c.

05

Field 022D, Qualified Energy Conservation Bonds

There was an error made in your calculation for Qualified Energy Conservation Bonds on Part III, line 20d. The amount reported on Part III line 20d must equal the lesser of line 19a or line 19c

06

Field 022E, Qualified Zone Academy Bonds

There was an error made in your calculation for Qualified Zone Academy Bonds on Part III, line 20e. The amount reported on Part III, line 20e must equal the lesser of lines 19a or 19c.

07

Field 022F, Qualified School Construction Bonds

There was an error made in your calculation for Qualified School Construction Bonds on Part III, line 20f. The amount reported on Part III, line 20f must equal the lesser of lines 19a or 19c.

It’s other than numeric.

More than one TPNC is present.

It’s other than the above valid TPNCs.

Correct any coding or transcription errors.

If correspondence is necessary in order to resolve the issue, send CRX 6436C letter.

To verify the MCC, refer to Document 7475, State Abbreviations, Major City Codes and Address Abbreviations.

enter the street address to Field 02ADD.

a valid street address isn't available from the return or attachments,

enter the full name of the city in Field 02CTY and the state in Field 02ST.

Field 01CTY is the City, located in Part II, line 11 and is 22 positions.

A zero, N/A, dash, or none are NOT acceptable entries.

It’s blank.

The first position is blank.

The second and third positions are blank.

A character follows the first two adjoining blanks.

Any character isn't alpha or blank.

The MCC is invalid.

Foreign country code isn't present, incorrect, or contains "XX" .

Correct any coding or transcription errors

Refer to the city shown on the return. If the city on the return is illegible, refer to the envelope and attachments to determine the correct city.

If

Then

Field 02NMI, issuer's name (Part II, line 7) contains "SAME" ,

enter the city in Field 01CTY (Part I, line 4) to Field 02CTY (Part II, line 11).

blank, and Field 02NM1 (Part II, line 7) matches Field 01NME (Part I, line 1) and/or Field 02EIN (Part II, line 8) matches Field 02EIN (Part I, line 2),

enter the city in Field 01CTY (Part I, line 4) to Field 02CTY (Part II, line 11).

you can’t perfect it,

delete address Fields 02ADD, 02CTY, 02ST & 02ZIP.

Field 02CTY and Field 02ST is invalid if a MCC is present and a state code is also present in Field 01ST. To correct, refer to the return and Document 7475, to verify the MCC.

If the MCC is correct, delete the state code entered in Field 01ST. If the MCC isn't correct, enter the full name of the city in Field 01CTY.

If a foreign address is shown on the return, enter the appropriate foreign country code in Field 02CTY (see IRM 3.13.2 for foreign country codes). Verify the state code entered in Field 02ST is correct. This field and the ZIP code field is invalid if a MCC is present and the ZIP Code isn't valid for the city.

If the ZIP code and MCC were transcribed correctly, and the ZIP code is invalid for the city, refer to the envelope and attachments to locate a valid ZIP code. If one is located, enter in Field 02ZIP.

If the correct ZIP code isn't available on the document or attachments, then look up the ZIP code in Document 7475 & enter into Field 02ZIP.

Field 02ST is the State, located in Part II, line 11 and is 2 positions.

The field contains two alpha characters.

A zero, N/A, dash, or none aren’t acceptable entries.

It’s blank, and the MCC isn't present in Field 02CTY.

It contains other than a valid state code.

Correct any coding or transcription errors.

Both 02ST and 02ZIP is invalid if the ZIP code isn't valid for the state. To correct, refer to the return and Document 7475, to verify the state and ZIP code.

Refer to the return, envelope and attachments to determine the correct state code.

If

Then

Field 02NMI (Part II, line 7) contains "SAME" ,

enter the state in Field 01ST (Part I, line 4) to Field 02ST, (Part II, line 11).

blank, and Field 02NM1 (Part II, line 7) matches Field 01NME (Part I, line 1), and/or Field 02EIN (Part II, line 8) matches Field 01EIN (Part I, line 2),

enter the state in Field 01ST (Part I, line 4) to Field 02ST (Part II, line 11).

the state code is incorrect,

Refer to the return, envelope, attachments or Document 7475 to determine the correct state code.

Enter it in Field 02ST.

you can’t perfect it,

delete entries in Fields 02ADD, 02CTY, 02ST and 02ZIP.

Returns with address changes in the following American possessions can be input with the return the same as a domestic address:

American Samoa (AS)

Mariana Islands (MI)

Puerto Rico (PR)

Virgin Islands (VI)

Guam (GU)

Field 02ZIP is the ZIP Code, located in Part II line 11 and is 12 positions

This is a 12 positions field which can contain 5, 9 or 12 characters.

A zero, N/A, dash, or none aren’t acceptable entries.

It isn't all numeric or blank.

There are not 5, 9 or 12 numeric characters.

Correct any coding or transcription errors.

Refer to the return and attachments to determine the correct ZIP code.

If

Then

a valid ZIP code can't be found,

refer to Document 7475 to determine the correct ZIP code.

Field 02NM1, issuer's name (Part II, line 7) contains "SAME" ,

enter the ZIP code in Field 01ZIP (Part I, line 4) to Field 02ZIP (Part II, line 11).

blank, and Field 02NM1 (Part II, line 7) matches Field 01NME (Part I, line 1), and/or Field 02EIN (Part II, line 8) matches Field 01EIN (Part I, line 2),

enter the ZIP code in Field 01ZIP (Part I, line 4) to Field 02ZIP (Part II, line 11).

Field 17A is the Variable or Fixed Check Box, located in Part II, line 17a and is 1 position.

The field is numeric.

Correct any coding or transcription errors.

Form revision prior to 2010 didn’t contain this line entry. Code and Edit will edit this field in red in the right margin next to line 17b as "17a" with a value of "1" or "2" .

If

Then

the variable rate check box is marked,

enter a "1" in Field 0217A (Part II, line 17a).

the fixed rate check box is marked,

enter a "2" in Field 0217A (Part II, line 17a).

blank,

enter a "2" in Field 0217A (Part II, line 17a).

Field 17B is the Issue Price, located in Part II, line 17b and is 15 positions.

The field is dollars and cents.

If it’s blank.

It’s zero, N/A, dash or none.

Correct any coding or transcription errors.

If

Then

Field 0217B (Part III, line 17b) is blank,

enter a "1" in Field 0217B.

The field is the Type of Bond code, located in Part II, line 17c and is 3 positions.

Valid codes are 102, 103, 104, 105, 109, 110 and 000 (zero) only.

It’s blank.

Other than valid range of 102, 103, 104, 105, 109, 110 or 000 (zero).

Correct any coding or transcription errors.

If

Then

Type of Issue code is other than 102, 103, 104, 105, 109 or 110,

enter 000 (zero).

The field is the Interest Payment Date, located in Part III, line 18 and is 8 positions.

If it’s blank.

Isn’t in YYYYMMDD format.

The Interest Payment Date isn’t equal to or less than the processing date plus 4 months.

The date is prior to 20090217.

It’s zero, N/A, dash or none.

Correct any coding or transcription errors.

If

Then

blank, or the interest payment date is prior to 20090217,

SSPND 490.

Contact SPP&O Analyst via secure e-mail. Refer to IRM 3.12.26.10(3) above for routing procedures.

Rejects will:

Enter the valid date provided by SPP&O Analyst in Field 0218.

Enter the correspondence received date in Field 01CRD.

Field 0219A is the Interest Payable to Bond Holders, located in Part III, line 19a and is 15 positions.

A zero, N/A, dash or none are not acceptable entries.

The field is edited in dollars and cents.

Correct any coding or transcription errors.

Determine (if possible) from the return or attachments if the bond is a "Build America Bond" (BAB) or a "Recovery Zone Economic Development Bond" (RZEDB).

If

Then

you determine the bond is a BAB, and there’s an amount on line 20a (Field 0220A),

compute the following by:

Adding the amount on line 20a, plus line 21a or minus line 21b (if applicable).

If the result equals the amount on line 22, then divide line 20a by 35% (.35).

Enter the result in Field 0219A (line 19a).

you determine the bond is a RZEDB, and there’s an amount on line 20b (Field 0220B),

compute the following by:

Adding the amount on line 20b (Field 0220B), plus line 21a or minus line 21b (if applicable).

If the result equals the amount on line 22, then divide line 20b by 45% (.45).

Enter the result in Field 0219A (line 19a).

line 19a is blank and line 20a or 20b, plus line 21a or minus line 21b (if applicable) does not equal line 22,

SSPND 211.

Issue 6436c letter if correspondence hasn’t already been issued.

line 19a is blank and there’s an amount on line 20c - 20f,

SSPND 211.

Issue 6436c letter requesting line 19a amount.

line 19a and/or line 19c is blank and there’s no entries on line 20a through 22,

SSPND 211.

Issue 6436c letter requesting line 19a/19c amount and line(s) 20a through 22).

Rejects will:

If

Then

a reply is received,

Enter the amount provided in Field 0219A (line 19a).

Enter the correspondence received date in Field 01CRD.

no reply,

Reduce the credit by entering ≡ ≡ ≡ ≡ ≡ in Fields 0219A.

Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220A - 0220F).

Enter CCC "3" in Field 02CCC.

Issue 5836c "No Consideration" letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured email to SPP&O Analyst . Annotate "No Consideration / 5836c sent" on the return.

Field 0219b is the Applicable Credit Rate, located in Part III, line 19b and is 4 positions.

The field can be blank or numeric only.

Correct any coding or transcription errors.

If

Then

Field 0219B (Part III, line 19b) is blank and there's an entry in Field 0220C - 0220F (Part III, line 20c - 20f),

enter 00.01 in Field 0219B (Part III, line 19b).

Field 0219B (line 19b) is blank and Field 0220A (Part III, line 20a) or Field 0220B (Part III, line 20b) has an entry,

blank is acceptable.

Field 0219C is the Interest Payable to Bond Holders on Applicable Credit Rate, located in Part III, line 19c and is 15 positions.

Line 19c (Field 0219C) can not be blank or zero. If line 19b (Field 0219B) has an entry greater than zero, then line 19c must have an entry.

The field is edited in dollars and cents.

Correct any coding or transcription errors.

If

And

Field 0219C and Field 0221A or 0220B has an entry,

delete Field 0219C

Field 0219C (line 19c) is blank, and there’s an entry in Fields 0220C - 0220F (line 20c-20f),

SSPND 211.

Issue 6436c letter requesting an entry for line 19c.

Rejects will:

If

Then

a reply is received,

Enter the valid amount in Field 0219C (Part III, line 19c).

Enter the correspondence received date in Field 01CRD.

no reply,

Reduce the credit by entering ≡ ≡ ≡ ≡ ≡ ≡ in Fields 0219C.

Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220C - 0220F).

Enter CCC "3" in Field 02CCC.

Issue 5836c "No Consideration" letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured e-mail to TE/GE Analyst . Annotate "No Consideration / 5836c sent" on the return.

The field is the Build America Bonds, located in Part III, line 20a and is 15 positions.

The field is numeric and edited in dollars and cents.

The field will under print if the transcribed and generated amounts differ by more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

There’s also an amount on Field 0220B (line 20b), Field 0220C (line 20c), Field 0220D (line 20d), Field 0220E (line 20e), or Field 0220F (line 20f).

Field 0220A (line 20a) doesn't equal 35% of Field 0219A (line 19a).

Correct any coding or transcription errors.

Compute by multiplying Field 0219A (Part III, line 19a) by 35%.

If

Then

the filer made an error in calculating the amount reported on line 20a, or you can't perfect it,

SSPND 211.

Issue 6436c letter requesting the correct amount for line 20a.

Rejects will:

If

Then

a reply is received,

Enter the correct amount in Field 0220A (Part III, line 20a).

Enter the correspondence received date in Field 01CRD.

no reply,

Reduce the credit by entering ≡ ≡ ≡ ≡ ≡ in Fields 0219A. Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220A or 0220B).

Enter CCC 3 in Field 02CCC.

Issue 5836c No Consideration letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured e-mail to SPP&O Analyst. Annotate "No Consideration / 5836c sent" on the return.

The field is the Recovery Zone Economic Development Bonds, located in Part III, line 20b and is 15 positions.

The field is edited in dollars and cents.

The field will under print if the transcribed and generated amounts differ by more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

There’s also an amount in Field 0220A (line 20a), Field 0220C (line 20c), Field 0220D (line 20d), Field 0220E (line 20e), or Field 0220F (line 20f).

Field 0220B (line 20b) doesn't equal 45% of Field 0219A (line 19a).

Correct any coding or transcription errors.

Compute by multiplying Field 0219A (line 19a) by 45%.

If

Then

the filer made an error in calculating the amount reported on Field 0220B (line 20b), or you can't perfect it,

SSPND 211.

Issue 6436c letter requesting the correct amount for line 20b.

Rejects will:

If

Then

a reply is received,

Enter the correct amount in Field 0220B (Part III, line 20b).

Enter the correspondence received date in Field 01CRD.

no reply,

Reduce the credit by entering ≡ ≡ ≡ ≡ ≡ in Fields 0219A.

Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220A or 0220B).

Enter CCC "3" in Field 02CCC.

Issue 5836c "No Consideration" letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured e-mail to SPP&O Analyst. Annotate "No Consideration / 5836c sent" on the return.

Field 0220C is the New Clean Renewable Energy Amount, located in Part III, line 20c and is 15 positions.

The field is edited in dollars and cents.

The field will under print if the transcribed and generated amounts differ by more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

There’s also an amount in Field 0220A (line 20a), Field 0220B (line 20b), Field 0220D (line 20d), Field 0220E (line 20e), or Field 0220F (line 20f).

Field 0220C doesn't equal the lesser of Field 0219A (line 19a) or Field 0219C (line 19c).

Correct any coding or transcription errors.

Verify the math to ensure line 20c is the lesser of line 19a or line 19c.

If

Then

the filer made an error in calculating the amount reported in Field 0220C (line 20c) or you can’t perfect it,

SSPND 211.

Issue 6436c letter requesting the correct amount for line 20c.

Rejects will:

If

Then

a reply is received,

Enter the correct amount in Field 0220C (line 20c).

Enter correspondence received date in Field 02CRD.

no reply,

Reduce the credit by entering ≡ ≡ ≡ ≡ in Fields 0219A or 0219C (as applicable).

Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220C - 0220F).

Enter CCC "3" in Field 02CCC.

Issue 5836c "No Consideration" letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured e-mail to SPP&O Analyst. Annotate "No Consideration / 5836c sent" on the return.

Field 0220D is the Qualified Energy Conservation Bond Amount, located in Part III, line 20d and is 15 positions.

The field is edited in dollars and cents.

The field will under print if the transcribed and generated amounts differ by more than ≡ ≡ ≡ ≡ ≡ ≡ ≡.

There’s also an amount in Field 0220A (line 20a), Field 0220B (line 20b), Field 0220C (line 20c), Field 0220E (line 20e), or Field 0220F (line 20f).

Field 0220D doesn't equal the lesser of Field 0219A (line 19a) or Field 0219C (line 19c).

Correct any coding or transcription errors.

Verify the math to ensure Field 0220D (line 20d) is the lesser of line 19a or line 19c.

If

Then

the filer made an error in calculating the amount reported in Field 0220D (line 20d) or you can’t perfect it,

SSPND 211.

Issue 6436c requesting the correct amount for line 20d.

Rejects will:

If

Then

a reply is received,

Enter the correct amount in Field 0220D (line 20d).

Enter correspondence received date in Field 02CRD.

no reply,

Reduce the credit by entering ≡ ≡ ≡ ≡ ≡ ≡ in Fields 0219A or 0219C (as applicable).

Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220A - 0220F).

Enter CCC "3" in Field 02CCC.

Issue 5836c "No Consideration" letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured e-mail to TE/GE Analyst . Annotate "No Consideration / 5836c sent" on the return.

Field 0220E is the Qualified Zone Academy Bond Amount, located in Part III, line 20e and is 15 positions.

The field is edited in dollars and cents.

The field will under print if the transcribed and generated amounts differ by more than ≡ ≡ ≡ ≡ ≡ ≡ ≡.

There’s also an amount in Field 0220A (line 20a), Field 0220B (line 20b), Field 0220C (line 20c), Field 0220D (line 20d), or Field 0220F (line 20f).

Field 0220E doesn't equal the lesser of Field 0219A (line 19a) or Field 0219C (line 19c).

Correct any coding or transcription errors.

Verify the math to ensure Field 0220E (line 20e) is the lesser of line 19a or line 19c.

If

Then

the filer made an error in calculating the amount reported in Field 0220E (line 20e) or you can’t perfect it,

SSPND 211.

Issue 6436c letter requesting the correct amount for line 20e.

Rejects will:

If

Then

a reply is received,

Enter the correct amount in Field 0220E (line 20e).

Enter correspondence received date in Field 02CRD.

no reply,

Reduce the credit by entering ≡ ≡ ≡ ≡ ≡ ≡ in Fields 0219A or 0219C (as applicable).

Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220A or 0220B).

Enter CCC "3" in Field 02CCC.

Issue 5836c "No Consideration" letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured e-mail to SPP&O Analyst. Annotate "No Consideration / 5836c sent" on the return.

Field 0220F is the Qualified School Construction Bond Amount, located in Part III, line 20f and is 15 positions.

The field is numeric and edited in dollars and cents.

The field will under print if the transcribed and generated amounts differ by more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

There’s also an amount in Field 0220A (line 20a), Field 0220B (line 20b), Field 0220C (line 20c), Field 0220D (line 20d), or Field 0220E (line 20e).

Field 0220F doesn't equal the lesser of Field 0219A (line 19a) or Field 0219C (line 19c).

Correct any coding or transcription errors.

Verify the math to ensure line 20e is the lesser of line 19a or line 19c.

If

Then

the filer made an error in calculating the amount reported in Field 0220F (line 20f) or you can’t perfect it,

SSPND 211.

Issue 6436c letter requesting the correct amount for line 20f.

Rejects will:

If

Then

a reply is received,

Enter the correct amount in Field 0220F (line 20f).

Enter correspondence received date in Field 02CRD.

no reply,

Reduce the credit by entering ≡ ≡ ≡ ≡ ≡ in Fields 0219A or 0219C (as applicable).

Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220A - 0220F).

Enter CCC "3" in Field 02CCC.

Issue 5836c "No Consideration" letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured e-mail to SPP&O Analyst. Annotate "No Consideration / 5836c sent" on the return.

Field 0221A is the Net Increase line, located in Part III, line 21A and is 15 positions.

The field is edited in dollars and cents.

This field is valid if blank.

An explanation isn't attached to the return regarding line 21a.

There’s an amount in Field 0221B (line 21b).

There’s an amount in both Field 0221A (line 21a) and Field 0221B (line 21b).

Correct any coding or transcription errors.

If both lines 21a and 21b have entries, compute the total to be entered on only one line.

If

Then

the total computed amount Field 0221A (line 21a) minus Field 0221B (line 21b) results in a positive amount,

Enter the amount in Field 0221A (line 21a).

Delete Field 0221B (Part III, line 21b).

the computed amount is a negative amount,

Enter the amount in Field 0221B (line 21b).

Delete the amount on Field 0221A (Part III, line 21a).

Field 0221b is the Net Decrease line, located in Part III, line 21b and is 15 positions.

The field is edited in dollars and cents.

This field is valid if blank.

An explanation isn't attached to the return regarding line 21b.

There’s an amount in both Field 0221A (line 21a) and Field 0221B (line 21b).

Correct any coding or transcription errors.

If both Fields 0221A and 0221B (lines 21a and 21b) have entries, compute the total to be entered on only one line.

If

Then

the total computed amount Field 0221B (Part III, line 21b) minus Field 0221A (Part III, line 21a) results in a negative amount,

Enter the amount in Field 0221B (line 21b).

Delete the amount on Field 0221A (Part III, line 21a).

the computed amount is a positive amount,

Enter the amount in Field 0221A (line 21a).

Delete the amount on Field 0221B (Part III, line 21b).

Field length -3 positions

Field 0221c is the Net Increase or Net Decrease Explanation Code, located in Part III, line 21c and is 3 positions.

Valid codes are 211, 212, 213, 214, 215, 216, 217, 218, 219 or 000 (zero) only.

It’s blank.

Other than valid range of 211, 212, 213, 214, 215, 216, 217, 218, 219 or 000 (zero).

Correct any coding or transcription errors.

If

Then

Net increase/decrease code is other than 211, 212, 213, 214, 215, 216, 217, 218, 219 or 000 (zero),

enter 000 (zero) in Field 0221C.

Field 0222 is the Amount of Credit Payment to be Received, located in Part II line 22 and is 15 positions.

The field is edited in dollars and cents and only be a positive amount.

The field is valid if zero.

The field will under print if the transcribed and generated amounts differ by more than ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Correct any coding or transcription errors.

If

Then

blank, and there’s an entry in Field 0220A through 0220F (line 20a - 20f),

Calculate the correct amount by adding the amount entered on Field 0220A through 0220F (only one amount can be present), and line 21a (plus) or 21b (minus) (if present).

Enter the result in Field 0222 (line 22).

The field is the Has There Been a Change to the Debt Service Schedule Check Boxes, located in Part III, line 23a and is 1 position.

A box isn't checked.

The entry is other than "1" (for yes) and "2" (for no).

If the "Yes" check box is marked, a revised Debt Service Schedule (DSS) isn’t attached.

It’s Blank, zero, N/A, dash, or none

Correct any coding or transcription errors.

If Form 8038-CP revision is 2012 or prior, refer to procedures below for Field 0223.

If

And

Then

the "Yes" check box is marked,

a debt service schedule is attached,

Enter a "1" in Field 0223 (line 23a).

Continue processing the return.

the "Yes" check box is marked,

no DSS is attached or line 23b is blank,

SSPND 211.

Issue 6436c letter requesting the missing debt service schedule and an explanation code.

both, neither or the "No" check box(es) is/are marked,

and a DSS is attached,

Enter a "1" in Field 0223 (line 23a).

Continue processing the return.

both or neither check box(es) are marked,

no DSS is attached, and line 23b is blank,

SSPND 211.

Issue 6436c letter requesting the missing debt service schedule and an explanation code.

form revision is 2012 or prior,

Enter a "2" in Field 0223 (line 23a) to indicate no change to the Debt Service Schedule.

Rejects will:

If

Then

a reply is received,

Enter the applicable "1" or "2" in Field 0223 (line 23a).

Enter the correspondence received date in Field 01CRD.

Continue processing the return.

no reply,

Enter a 2 in Field 0223.

Enter 3 in Field 01CCC.

Continue processing the return.

Field 0223A is the Debt Service Schedule Explanation Code, located in Part III, line 23b and is 3 positions.

It’s blank.

Other than valid range of 231, 232, 233, 234, 235, 236, 237, 238, 239 or 000 (zero).

Correct any coding or transcription errors.

If

Then

DDS explanation code is other than 231, 232, 233, 234, 235, 236, 237, 238, 239 or 000 (zero),

enter 000 (zero) in Field 0223A.

The field is the Are You Current on Your Interest Payments Check Boxes, located in Part III, line 24a and is 1 position.

It’s not numeric.

Valid entry is "1" , "2" or "blank" .

Correct any coding or transcription errors.

If

Then

the "Yes" check box is marked,

enter "1" in Field 0224 (line 24a).

the "No" check box is marked,

enter a "2" in Field 0224 (line 24a).

neither check box is marked,

leave blank.

Field 0224A is the Explanation Code, located in Part III, line 24b and is 3 positions

It’s blank.

Other than valid range of 241, 242, 243, 244, 245, 246, 247, 248, 249 or 000 (zero).

Correct any coding or transcription errors.

If

Then

the explanation code is other than 241, 242, 243, 244, 245, 246, 247, 248, 249 or 000 (zero),

enter 000 (zero) in Field 0224A.

The field is the Final Interest Payment date Check Box, located in Part III, line 25 and is 1 position.

A box isn't checked.

The entry is other than "1" (for yes) and "2" (for no).

If "Yes" is marked, enter computer condition code "F" in Field 01CCC.

It is zero, N/A, dash, or none.

Correct any coding or transcription errors.

If

Then

the "Yes" box is checked,

Enter "1" in Field 0225.

Enter CCC "F" in Field 01CCC.

the "No" box is checked,

enter "2" in Field 0225.

neither box is checked, and attachments indicate it is a final return,

Enter a "1" in Field 0225 (line 25).

Enter CCC "F" in Field 01CCC.

blank and you can’t perfect it,

Enter a "2" in Field 0225.

Enter CCC "3" in Field 01CCC.

Field 0226 is Schedule A, line 3 amount, located in Schedule A, line 3 and is 15 positions.

The field is edited in dollars and cents and is only a positive amount.

The field is valid if blank or zero.

It’s not numeric.

Field 0226 (Sch. A, line 3) is blank or doesn’t equal the amount entered in Field 0219C (Form 8038-CP, line 19c).

The field will error out if the transcribed and generated amounts differ by more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Correct any coding or transcription errors.

Verify the amount on Schedule A, line 3 (if present) equals the amount on Form 8038-CP, line 19c.

If

Then

the amount reported in Field 0226 (Sch. A, line 3) is blank or differs from the amount in Field 0219C (Form 8038-CP, line 19c),

SSPND 211.

Issue 6436c letter requesting the correct amount for Schedule A, line 3 and/or Form 8038-CP, line 19c.

Rejects will:

If

Then

a reply is received,

Enter the valid amount in Field 0226 (Sch. A, line 3) and/or Field 0219C (Part III, line 19c).

Enter the correspondence received date in Field 01CRD.

no reply,

Enter the amount shown in Field 0219C in Field 0226.

Enter CCC "3" in Field 02CCC.

02SIG is the Signature Code, located in the right margin of the signature line and is 1 position.

It’s not numeric.

The entry is other than "1" (signature present) or "3" (signature not present) after correspondence and no reply.

Correct any coding or transcription errors.

If

Then

a signature is present,

enter a "1" in Field 02SIG.

a signature is missing,

SSPND 225.

Issue 6436c letter requesting a valid signature.

Rejects will:

If

Then

a reply is received,

Enter a "1" in Field 02SIG.

Enter the correspondence received date in Field 01CRD.

Attach signature to return.

no reply is received,

Reduce the credit by entering ≡ ≡ ≡ ≡ in Fields 0219A or 0219C (as applicable).

Bring up the under print for the applicable EC.

Recompute the credit payment amount based on the type of bond reported on Form 8038-CP (Field 0220A - 0220F).

Enter "3" in Fields 02SIG and Field 01CCC.

Issue 5836c No consideration letter to the Issuer (Part II entity).

Send a scanned copy of the return via secured e-mail to SPP&O Analyst. Annotate "No Consideration - 5836c sent" on the return.

Field 02PRE is the Preparation Code, located in the right margin of the preparer's SSN or PTIN box and is 1 position.

It’s not numeric.

The entry is other than "1" or "blank" .

Edit a Preparation code "1" in the right margin next to the preparer SSN or PTIN box if both of the following apply:

The return is signed by a preparer.

The paid preparer section has information that is different than the person signing the return.

Field 02PSN is the Preparer PTIN, located in the Paid Preparer signature portion on page 1, in the Preparer PTIN box and is 9 positions.

The first position is other than numeric or a "P" .

The field is all zeros or all nines or the first position is "P" and the remaining positions are all zeros or all nines.

Other than the first position isn't numeric.

Is not 9 positions.

Delete. Don’t attempt to correct the field.

Field 02PEN is the Preparer's EIN, located in the Paid Preparer's signature portion in the Firm's EIN box and is 9 positions.

It is not numeric.

The field is all zeros or all nines.

Delete. Don’t attempt to correct the field.

Field 02CBT is the Preparer's Telephone Number, located in the Paid Preparer's signature portion, in the Firm's Phone no. box and is 10 positions.

The field can be blank.

If more than 10 digits are present continue processing. Input the first 10 digits only.

If

Then

the paid preparer phone number is incomplete, illegible, or fewer than 10 digits,

review the return and all attachments for valid phone number.

a complete paid preparer phone number is located elsewhere on the return or attachments,

enter in Field 02CBT.

a complete paid preparer phone number isn't located or the number is illegible,

Delete. Don’t attempt to correct the field.

It's imperative to follow these instructions as the due date on Form 8038-GC is computed based on the box that’s checked.

If

Then

the "Single Issue" box is checked,

enter a "1" .

the "Consolidated" box is checked,

enter a "2" .

no box is checked,

refer to the procedures outlined below.

the filers' original entry on Part II, line 8b prior to editing has a specific date other than 01/01/YYYY,

03/15/2011 or 03/2011

enter a "X" in the single issue box.

the filer's original entry on Part II, line 8b prior to editing has the specific date of 01/01/YYYY,

01/01/2011

enter a "X" in the consolidated basis box.

the filers' original entry on Part II, line 8b prior to editing has only a year,

2011

enter a "X" in the consolidated basis box.

there’s no entry in Part II, line 8b,

enter SSPND 211.

Rejects will:

If

Then

a reply is received,

perfect the return.

no reply,

enter CCC "3" and enter "1" in Field 07BX.

Field 078A is the Entire Issue Price, located on Form 8038-GC in Part II, line 8a and is 15 positions.

The field is dollars only.

Correct any coding or transcription errors.

If

Then

Field 078A (line 8a) is blank,

enter the total of Fields 079A through 079K (lines 9a-9k) in Field 078A.

you’re unable to perfect it,

SSPND 211.

Rejects will:

If

Then

a reply is received,

perfect the return.

no reply,

enter CCC "3" and enter "1" in Field 078A.

Field 079A is the For Leases for Vehicles Amount, located on Form 8038-GC in Part II, line 9a and is 15 positions.

The field is valid if blank.

The field is dollars only.

Correct any coding or transcription errors.

Field 079B is the For Leases for Office Equipment Amount, located on Form 8038-GC in Part II, line 9b and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Correct any coding or transcription errors.

Field 079C is the For Leases for Real Property Amount, located on Form 8038-GC in Part II, line 9c and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Correct any coding or transcription errors.

Field 079D is the For Other Leases Amount, located on Form 8038-GC in Part II, line 9d and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Correct any coding or transcription errors.

Field 079E is the For Bank Loans for Vehicles Amount, located on Form 8038-GC in Part II, line 9e and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Correct any coding or transcription errors.

Field 079F is the For Bank Loans for Office Equipment Amount, located on Form 8038-GC in Part II, line 9f and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Correct any coding or transcription errors.

Field 079G is the For Bank Loans for Real Property Amount, located on Form 8038-GC in Part II, line 9g and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Correct any coding or transcription errors.

Field 079H is the For Bank Loans for Other Amount, located on Form 8038-GC in Part II, line 9h and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Correct any coding or transcription errors.

Field length - 15 positions

Field 079J is Proceeds from Another Tax Exempt Amount, located on Form 8038-GC in Part II, line 9j and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Correct any coding or transcription errors.

Field 079K is Other Amount, located on Form 8038-GC in Part II, line 9k and is 15 positions.

The field is valid if it’s blank.

The field is dollars only.

Field 0710 is the Designated Issue Section 265 Check Box, located on Form 8038-GC in Part II, line 10 and is 1 position.

It’s not numeric.

The entry is other than "1" or "blank" .

Correct any coding or transcription errors.

If

Then

the box is checked,

enter a "1" .

the box isn't checked,

delete the entry in Field 0710.

Field 0711 is the penalty Payment Election Indicator Check Box, located in Part II, line 11 and is 1 position.

If not numeric.

The entry is other than "1" or "blank" .

Correct any coding or transcription errors.

If

Then

the box is checked,

enter a "1" .

the box isn't checked,

delete the entry in Field 0711.

Field 0713 is the Vendor's or Bank's EIN, located in Part II, line 13 and is 9 positions.

Correct any coding or transcription errors.

If unable to perfect it, delete the entry in Field 0713.

Field 07SIG is the Signature Code, located in the right margin of the signature line and is 1 position.

If not numeric.

The entry is other than 1 (signature present) or 3 (signature not present) after correspondence and no reply.

Correct any coding or transcription errors.

If

Then

a signature is present,

enter a "1" in the right margin next to the signature block.

only a signature is missing,

SSPND 225.

Rejects will:

If

Then

a valid reply is received,

perfect the return by entering a "1" in Field 07SIG and enter the Correspondence Received Date, Field 01CRD.

no reply or an incomplete reply is received,

enter CCC "3" in Field 07SIG and enter a "3" in Field 01CCC.

Field 07PRE is the Preparation Code, located in the right margin of the Preparer's PTIN line and is 1 position.

Field is not numeric.

The entry is other than 1 or blank.

Enter a "1" in the right margin next to the "Preparer's PTIN" box if both of the following apply:

The return is signed by a Preparer.

The paid preparer's section has information that is different than the person signing the return.

Field 07PSN is the Preparer's PTIN, located in the Paid Preparer's signature block, in the Preparer's PTIN box and is 9 positions.

The preparer's SSN must be a nine-digit number. A preparer's Tax Identification Number (PTIN) is a valid entry in the preparer's Social Security Number or PTIN area at the bottom of Form 8038-GC. The PTIN is nine digits beginning with the alpha "P" , followed by an eight-digit number (e.g., PXXXXXXXX).

The first position is other than numeric or a P.

The field is all zeros or all nines or the first position is P and the remaining positions are all zeros or all nines.

Other than the first position isn't numerics.

Delete. Don’t attempt to correct the field.

Field 07PEN, is the Preparer's EIN, located in the Paid Preparer's signature portion in the Firm's EIN box and is 9 positions.

The first character may be a "P" .

The first position is other than numeric or a P.

Is all zeros or all nines.

Delete. Don’t attempt to correct the field.

Field 07PTN is the Preparer's Telephone Number, located in the Paid Preparer's signature portion, in the Firm's Phone no. box and is 10 positions.

: Correct any coding or transcription errors.

If

Then

more than 10 digits are present,

Continue processing, entering the first 10 digits only.

the paid preparer's phone number is incomplete, illegible, or fewer than 10 digits,

Review the return and all attachments.

If a complete paid preparer phone number is located elsewhere on the return or attachments, edit to the "Phone No." line.

a complete paid preparer's phone number isn’t located or the number is illegible,

Delete. Don’t attempt to correct the field.

This subsection provides field descriptions and instructions for correcting error and reject conditions for Form 8038-T Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate.

Field RMIT> is the amount of remittance submitted with the return and is 11 positions. It's dollars and cents and is the blue/green edited money amount. The field can't be changed by Error Resolution.

Field 01NC, Name Control, is underlined from Part I, line 1 and is 4 positions.

The field must have 1 to 4 characters (alpha, numeric, ampersand, hyphen).

The field may have 1 to 3 blanks.

The 1st position is other than a letter or number.

The 2nd, 3rd, and 4th positions contain characters other than letters, numbers, ampersand (&), hyphens (-), blanks.

Any character follows a blank.

To determine the correct name control see IRM 3.13.2, BMF Account Numbers.

Line through the entry in Field 01NC and enter the correct name control above it. If the name control contains fewer than 4 characters, enter and circle the number of positions remaining.

The name control under print is designed to reduce the number of unpostables that occur when the transcribed name control doesn't match with the name control for the EIN on the Entity Index File (EIF).

The name control under print will be removed when the following occurs:

The name control under print and the entry Field 01NC agree.

Compare the entries in Field 01NC and 01EIN with the return to determine the correct action.

If

Then

the EIN on the return and EIN in Field 01EIN do not agree,

correct Field 01EIN to agree with the return.

the name control on the return and Field 01NC do not agree, and the name control was transcribed incorrectly,

change Field 01NC to agree with name control under print.

correction doesn't agree with the name control under print,

SSPND 320 to Entity.

the name control edited on return agrees with name control in Field 01NC, and the name is illegible or coded wrong,

change Field 01NC to agree with name control under print.

no obvious error,

research using INOLE, NAMEE, or NAMEB.

another EIN is found for the entity on the return,

change Field 01EIN to the correct EIN.

the EIN is correct and the taxpayer merely rearranged name on return,

change Field 01EIN to agree with the name control on INOLES.

the EIN on the return is correct but name control on BMF isn't conforming to acceptable rules for name controls,

SSPND 320 to Entity Control for resolution.

the EIN on the return and Field 01EIN agree, but don’t agree with name on INOLES,

SSPND 320 to Entity Control for resolution.

Field 01EIN is the Employer Identification Number, located in Part I, line 2 and is 9 positions.

Isn't present or not all numeric.

The EIN is all zeros or all nines.

The first two digits are 00, 07-09, 17-19, 28, 29, 49, 78, 79 or 89.

Search the return and attachments for a valid EIN.

If

Then

a valid EIN is found,

correct Field 01EIN.

a valid EIN can't be found on the return or attachments,

research using NAMEE and NAMEB.

research locates a number,

correct Field 01EIN.

research locates two EINs,

Research using Command Code INOLES for both EINs.

If both EINs are on INOLES, reject the Entity stating "2 EINs" .

an EIN can't be located through research,

reject to Entity using SSPND 320.

Rejects will determine the correct EIN and Name Control from research.

If

Then

the EIN on the return is correct, but the name control on the TIF doesn't meet guidelines,

attach Form 4227 and SSPND 320 to Entity Control.

Entity Control has found the correct EIN,

enter it in Field 01EIN.

Entity Control has assigned an EIN,

enter it in Field 01EIN and enter the entity assignment date in the CRD Field 01CRD.

The date is found in the left hand margin with an edited "E" .

Field length - 6 positions

Field 01TXP is the Tax Period and isn't edited in the upper right-hand corner of the return. It's generated by Part I, line 6 Date of Issue and is 6 positions. Use the Date of Issue to determine the tax period.