SEC. 11. PROCESSING — Internal Revenue Bulletin 1998-37

.01 All data received at IRS/MCC for processing will be given the same protection as individual returns (Form 1040). IRS/MCC will process your magnetic/electronic files to ensure the records were formatted and coded according to this revenue procedure.

.02 If the data is formatted incorrectly, the file will be returned for replacement accompanied with a Media Tracking Slip (Form 9267). When media is returned, it is because IRS/MCC encountered errors (not limited to format) and was unable to process the media; therefore, requiring a replacement. Open all packages immediately.

.03 Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of the letter IRS/MCC included with the returned files. A penalty for failure to file correct information returns by the due date will be assessed if the files are not corrected and returned within the 45 days or if the incorrect files are returned by IRS/MCC for re- placement more than two times. A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received.

.04 Files will not be returned to you after successful processing. Therefore, if you want proof that IRS/MCC received your shipment, you may use a carrier that provides proof of delivery.

1998–37 I.R.B. 17 September 14, 1998

.05 To distinguish between a correction and a replacement, the following definitions have been provided:

(a) A correction is a record submitted by the employer/transmitter to correct a record that was successfully processed by IRS, but contained erroneous information.

(b) A replacement is media that IRS has returned because of format errors or data discrepancies encountered during processing. After necessary changes have been made, the media must be returned to IRS/MCC for processing.