Internal Revenue Manual Part 3. Submission Processing

Official source: Internal Revenue Manual (https://www.irs.gov/irm/part3/irm_03-024-213), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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(1) This transmits revised IRM 3.24.213, ISRP System, Real Estate Mortgage Investment Conduit Income Tax Returns.

(1) IRM 3.24.213 Changed Wage and Investment to Taxpayer Services.

(2) Minor editorial changes have been made throughout this IRM (e.g., spelling, punctuation, formatting, etc.). Other significant changes to this IRM are shown above.

James L. Fish Director, Submission Processing Customer Account Services Taxpayer Services

Purpose: Daily processing of processable paper filed Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return on the Integrated Submission and Remittance Processing System (ISRP) are covered in this IRM. This processing will convert the taxpayer data reported to electronic data records for further validations to be applied to determine if the employers return is acceptable to fulfill the filing requirement.

Audience: The users of the IRM are Submission Processing General Clerks; Data Conversion Operation and their support staff which includes but is not limited to the following clerks, leads and supervisors. These instructions apply to all campuses.

Policy Owner: The Director of Submission Processing

Program Owner: Return Processing Branch, Mail Management/Data Conversion (an Organization within Submission Processing)

Primary Stakeholders: Affected by these procedures or have input to the procedures which may include a change in workflow, additional duties, change in established time frames, and similar issues are:

Accounts Management (AM)

Small Business/Self Employed (SB/SE)

Large Business and International (LB&I)

Chief Financial Officer (CFO)

Taxpayer Advocate (TAS)

Chief Counsel, Information Technology programmers

Statistics of Income (SOI)

Tax Exempt/Government Entities (TEGE)

Compliance Strategy and Policy and Operations Business Support

Office of Servicewide Penalties are affected by the completion of these data records to posting.

Program Goals: This information is used to provide instruction for accurate transcription of data into the ISRP system. The Integrated Submission and Remittance Processing (ISRP) is an application designed to capture, format, and forward information related to tax submissions and remittances in electronically readable formats to downstream IRS systems. Any remittances received with a tax document are forwarded and processed for deposit to the Remittance Processing function.

U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Returns are sent to the IRS by filers to fulfill their requirement to report the income, deductions, and gains and losses from the operation of a real estate mortgage investment conduit REMIC. In addition, the form is used by the REMIC to report and pay tax on net income from prohibited transactions. The returns must be converted to an electronic data record for use by the IRS. Input of data present and validation of the data records during conversion of these paper returns to electronic data records is required.

for these procedures is found in Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC). The IRC has been amended by acts, public laws, treasury determination.

All policy statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policies and Authorities, Policy Statements for Submission Processing Activities:

Code sections which provide the IRS with the authority to issue levies.

Congressional Acts which outline additional authorities and responsibilities like the Tax Act of 1986.

Policy Statements that provide authority for the work being done.

The Operations manager is responsible for securing, assigning and providing training for the staff needed to perform the task required throughout this instruction.

The Planning and Analysis Staff is responsible for providing feedback and support to local management to achieve and effectively monitor scheduled goals.

The team manager/lead is responsible for and assigning, monitoring and controlling the workflow to accomplish timely completion of the tasks required throughout this IRM.

The team employee is responsible for applying the instruction present to the assigned task on the ISRP system to accurately convert paper data to electronic data record for proper posting for use by the IRS.

Program Reports: Below is a list of reports to use to show receipts, production and inventory for the paper return to electronic data conversion process. These reports will be utilized to report and monitor daily and weekly status of the program to completeness.

PCC 2240, Daily Production Report - Program Sequence

PCC 6040, SC WP&C Performance and Cost Report

PCC 6240, SC WP&C Program Analysis Report

PCB 0440, Daily Workload and Staff hours Schedule

PCB 0540, Weekly Workload and Staffing Schedule

Program Effectiveness: Goals will be measured utilizing standard managerial reports by documents processed per hour and completion of each function compared to the established schedule for completion each week. Each functionality is expected to retain or exceed schedule prior to the program completion date stated in IRM 3.30.123, Work Planning and Control Processing Timeliness: Cycles, Criteria, and Critical Dates.

Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under responsibilities for a manager.

Local reports may be utilized to establish additional information for maintaining daily program control. Local reports do not replace the established official reports and required production reports.

The following is a list of the acronyms that are used in this IRM section, this IRM uses prompts for data entry and are defined in the charts.

Acronyms

Definition

ABC

Alphanumeric Block Control

BMF

Business Master File

CCC

Computer Condition Code

DLN

Document Locator Number

EIN

Employer Identification Number

EOP

Entry Operator

IRM

Internal Revenue Manual

ISRP

Integrated Submission and Remittance Processing System

KV

Key Verification

OE

Original Entry

PTIN

Preparer Taxpayer Identification Numbers

REMIC

Real Estate Mortgage Investment Conduit

RPS

Remittance Processing System

TEFRA

Tax Equity and Fiscal Responsibility Act

The following table lists the IRM primary sources of guidance on the processing of paper filed Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return.

IRM

Title

Guidance on

IRM 3.10.5

Campus Mail and Work Control - Batch/Block Tracking System (BBTS)

utilizing BBTS to drop unit production cards for daily incoming receipts and production

IRM 3.10.72

Campus Mail and Work Control - Receiving, Extracting, and Sorting

receiving, extracting, sorting, and routing mail within the Submission Processing campuses

IRM 3.10.73

Campus Mail and Work Control - Batching and Numbering

batching and numbering with a document locator number (DLN) of documents

IRM 3.11.213

Returns and Documents Analysis, Form 1066, Real Estate Mortgage Investment Conduit Income Tax Return

document perfection to code and edit (perfect) returns and other documents for input to the Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP)

IRM 3.24.38

BMF General Instructions

workstation functions, workstation keyboard, windows environment and general instruction for entering data for tax returns and related data through ISRP

Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area

The IRS adopted the Taxpayer Bill of Rights in June 2014. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), and the following site for additional information about the Taxpayer Bill of Rights.

This IRM provides instructions for entering and verifying data from control documents and Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, using the Integrated Submission and Remittance Processing (ISRP) system.

General Clerks will also need to refer to IRM 3.24.38, ISRP System-BMF General Instructions, for general procedures.

IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

The control documents from which data may be transcribed are:

Form 813, Document Register

Form 1332, Block and Selection Record

Form 3893, Re-entry Document Control

The source document from which data may be transcribed is:

Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

The following table illustrates the form, program number, tax class and document code.

FORM

PROGRAM NUMBER

TAX CLASS & DOCUMENT CODE

Form 1066

12201

360

Section 01 will be entered and verified in all cases.

Sections 02, 03 and 07 will be entered and verified if data is present.

The following exhibits represent specific data entry procedures.

Elem. No.

Data Element Name

Prompt

Fld. Term.

Instructions

(1)

Service Center (SC) Block Control

ABC

No entry is required

The screen displays the Alphanumeric Block Control (ABC) that was entered in the Entry Operator (EOP) Dialog Window. It cannot be changed.

(2)

Block Document Locator Number (DLN)

DLN

Enter the first 11 digits from: (a) Form 813 — the "Block DLN" box. (b) Form 1332 — the "Document Locator No." box. (c) Form 3893 — box 2. The key verification (KV) EOP will verify the DLN from the first document of the block.

(3)

Batch Number

BATCH

Enter the batch number from: (a) Form 813 and Form 1332 — the "Batch Control Number" box. (b) Form 3893 — box 3. If not present, enter the number from the batch transmittal sheet.

(4)

Document Count

COUNT

Enter the document count from: (a) Form 813 and Form 1332— the circled serial number. If a full block (100 documents) or if a number is not circled, enter 100. (b) Form 3893 — box 4.

(5)

Prejournalized Credit Amount

CR

Enter the amount from: (a) Form 813 — shown as the "Total" or "Adjusted Total" . (b) Form 3893 — box 5. Enter in dollars and cents.

(6)

Filling s

Press 5 times.

(7)

Source Code

SOURCE

If the control document is Form 3893, enter from box 11 as follows: (a) R = "Reprocessable" box checked. (b) N = "Reinput of Unpostable" box checked. (c) 4 = "SC Reinput" box checked. If none of the boxes are checked, consult your supervisor who will determine if a source code is required. If any other control document, press .

(8)

Year Digit

YEAR

If the control document is Form 3893, enter the digit from the box 12; otherwise, press . This is a MUST ENTER field if the source code is "R" , "N" , or "4" .

(9)

Filling

No entry required. Press .

(10)

Remittance Processing System (RPS) Indicator

RPS

Enter a "2" if: (a) "RPS" is edited or stamped in the upper center margin of Form 813 or Form 1332 or "RRPS" is in the header of Form 1332. (b) box 13 is checked on Form 3893.

Elem. No.

Data Element Name

Prompt

Fld. Term.

Instructions

(1)

Section Number

SECT:

No entry is required.

Section "01" will always be generated. No entry is required.

(2)

DLN Serial Number

SER#

Enter the last two digits of the 13-digit DLN from the upper portion of the form. If the serial number has been generated by the system, verify that it matches the document being entered.

(3)

Check Digit

CD

Enter the check digit if present.

(4)

Name Control

NC

If the check digit is not present, enter the name control.

(5)

Employer Identification Number (EIN)

EIN

Enter the EIN from the preprinted label or from the "EIN" block.

(6)

Address Check

ADDRESS CHECK?

Enter "Y" or "N" as appropriate.

(7)

Street Key

STREET KEY

Enter the street key

(8)

ZIP Key

ZIP KEY

Enter the zip key.

(9)

Tax Period

TAXPR

Enter the edited or underlined tax period from the upper right corner of the return.

(10)

Received Date

RDATE

Enter the date as stamped or edited on the face of the return.

(11)

Computer Condition Codes (CCC)

ES–1

Enter the edited code(s) from the dotted portion of Section 1, Line 1. If computer condition code "G" is present and the document is a non-remittance return, end the document after this element. If computer condition code "G" is present and the document is a remittance return, press to proceed to Section 03.

(12)

Date Real Estate Mortgage Investment Conduit (REMIC) Started

ES-2

Enter the date shown or edited in box B in YYMM format.

(13)

Number of Residual Holders

ES-3

<Enter.

Enter from the margin to the left of the Deductions section.

(14)

Tax Equity and Fiscal Responsibility Act (TEFRA) Indicator

ES-4

Enter from the margin to the left of the Deductions section.

(15)

Missing Schedule Code

ES-5

Enter from the margin to the left of the Deductions section.

(16)

Audit Code

ES-8

Enter from the margin to the left of the Deductions section.

(17)

Installment Sales Indicator

ES-9

Enter from the margin to the left of the Deductions section.

(18)

Error Resolution System (ERS) Action Code

ES-10

Enter the edited digits from the bottom left margin.

Data for prompts ES-3 through ES-10 will no longer appear on an attached edit sheet. Instead, this data will be edited in the margin to the left of the Deductions section. The data will be edited in X-Y format: where "X " represents the edit sheet line number and "Y" represents the data to be transcribed. ES-10 will not be preceded by "10" .

Edited Data…Enter on Screen 1-235…Enter "235" for prompt "ES-1" 9–1…Enter "1" for prompt "ES-9"

Elem. No.

Data Element Name

Prompt

Fld. Term.

Instructions

(1)

Section Number

SECT:

Press if already present on the screen; otherwise enter "02" .

(2)

In Care of Name Line

C/O NAME

Enter the in care of name exactly as shown.

(3)

Foreign Address

FGN ADD

Enter the foreign address information as shown or edited from the entity area.

(4)

Street Address

ADDR

Enter the street address information as shown or edited from the entity area.

If inputting a foreign address, enter the foreign city, province, and postal code in this field exactly as edited.

(5)

City

CITY

Enter the city from the entity area.

If inputting a foreign address, only enter the edited foreign country code in this field.

(6)

State

ST

Enter the standard state abbreviation from the entity area.

If inputting a foreign address, enter a period (.) in this field.

(7)

ZIP Code

ZIP

Enter the zip code from the entity area.

If inputting a foreign address, leave this field blank. Press to continue.

Elem. No.

Data Element Name

Prompt

Fld. Term.

Instructions

(1)

Section Number

SECT:

Press if already present on the screen; otherwise enter "03" .

(2)

Payment Received

RMT

Enter the green rockered amount from the balance due area of the return or an attached cash register receipt. If no amount is edited or the edited amount is illegible, check the control document for the correct amount. This is a MUST ENTER field if a Prejournalized Credit Amount (prompt "CR" ) was entered in the Block Header.

(3)

Total Assets

BOXC $

MINUS (−)

Enter the amount from Box C.

(4)

Net Short Term Capital Gain/Loss

ES11

MINUS (−)

Enter the edited digits from the bottom right margin.

(5)

Net Long Term Capital Gain/Loss

ES12

MINUS (−)

Enter the edited digits from the bottom right margin.

Data for prompts "ES-11" through "ES-12" will no longer appear on an attached edit sheet. Instead, this data will be edited in the margin to the left of the Deductions Section. The data will be edited in "X-Y" format: where "X" represents the edit sheet line number and "Y" represents the data to be transcribed.

Edited Data…Enter on Screen 11-100…Enter "100" for prompt "ES-11" 12–1500…Enter "1500" for prompt "ES-12"

Elem. No.

Data Element Name

Prompt

Fld. Term.

Instructions

(1)

Section Number

SECT:

Press if already present on the screen; otherwise enter "07" .

(2)

Total Tax

II1

Enter amount form Section II, Line 1.

(3)

Tax Paid on F7004

LN2

Enter amount from Section II, line 2.

(4)

Federal Telephone Excise Tax Paid

4...

For TY2006 returns, enter amount from Section II, line 2b; otherwise, press .

(5)

Discuss with Preparer Checkbox

CKBX

Enter "1" if only the "Yes" box is checked; otherwise, press .

(6)

Preparer's PTIN

PTIN

Enter the preparer's PTIN.

(7)

Preparer's EIN

PEIN

Enter the preparer's EIN.

(8)

Preparer's Telephone #

TEL#

Enter the preparer's telephone number.

Only transcribe this section for TY2006 returns.

Elem. No.

Data Element Name

Prompt

Fld. Term.

Instructions

(1)

Section Number

SECT:

Press if already present on screen; otherwise, enter "20" .

(2)

Tax Refund

15(D)

Enter the amount from line 15, column (d).

(3)

Interest on Tax Refund

15(E)

Enter the amount from line 15, column (e).

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