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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 22. Employee Plan Excise Tax Returns

3.12.22  Employee Plan Excise Tax Returns

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3.12.22.1  (01-01-2009)
Service Level Agreements (SLAs)

  1. National Service Level Agreements (SLAs) have been established between Operating Divisions. This section contains specifics regarding SLAs that pertain to activities performed by use of this IRM.

3.12.22.1.1  (01-01-2009)
Taxpayer Advocate Service (TAS) SLA

  1. The Taxpayer Advocate Service (TAS) SLA contains basic requirements for handling TAS-referred cases, and include specific actions to take on TAS referrals and specific time frames for completing those actions.

  2. The SLA can be found at http://tasnew.web.irs.gov/index.asp?pid=865 and procedures found in IRM 13, Taxpayer Advocate Service

3.12.22.1.1.1  (01-01-2009)
Operations Assistance Requests (OARs)

  1. The Taxpayer Advocate Service uses the Operation Assistance Request (OAR) process to refer cases when TAS lacks either the statutory or delegated authority to resolve a taxpayer's problem. The TAS utilizes Form 12412, Taxpayer Advocate Service Assistance Request to initiate the OAR process.

  2. In cases requiring an OAR, TAS will complete Form 12412 and forward the case to the Operating Division Liaison via Form 3210. The Operating Division Liaison will review the case, assign it to the appropriate area, and monitor the case through its conclusion.

  3. Every effort must be made to expedite completion of OAR cases. Time frames for the assigned area to complete the case will be indicated on Form 12412.

    1. If resolution of a taxpayer's case cannot be completed by the requested time frame or by a negotiated extension date, the employee will immediately notify his or her manager.

    2. The manager/employee will work with the Taxpayer Advocate contact listed on Form 12412 to arrive at agreed upon time frames for follow-up based on the facts and circumstances of the particular case.

    3. The manager/employee assigned the case will discuss the findings and recommendations on the final disposition of the case with the appropriate TAS contact. The TAS contact is responsible for communicating the final decision on the case to the taxpayer however this does not prohibit the manager/employee from also communicating that decision to the taxpayer.

    4. If the TAS contact and the manager/employee assigned the case cannot agree upon the resolution to the taxpayer's problem, the TAS employee will elevate this disagreement to the manager who will discuss it with the appropriate Operating Division manager. The manager/employee assigned the case will also elevate any disagreement to his or her manager.

    5. Upon resolution of the case, the BOD/Function employee assigned the OAR will complete section VI of Form 12412, Operations Assistance Request, and return it to the TAS Case Advocate assigned the case. The Form 12412 must be returned within three (3) workdays from the date that all actions have been completed and transactions posted.

  4. For more information, please refer to: IRM 13, Taxpayer Advocate Service and http://tasnew.web.irs.gov/index.asp

3.12.22.1.1.1.1  (01-01-2009)
Tax Exempt and Government Entities - Wage and Investment Service Level Agreement (SLA)

  1. The purpose of this SLA is to identify a set of processing and customer service targets which the Wage and Investment Operating Division (W&I) and the Tax Exempt and Government Entities Operating Division (TE/GE) agree are an acceptable level of service for the term of the agreement.

3.12.22.2  (01-01-2009)
General

  1. This Section provides correction procedures to be used by the Error Correction and Rejects Tax Examiners when processing Employee Plan (EP) returns.

  2. Common procedures may be found in IRM 3.12.38, BMF SC Error Resolution Systems General Instructions. IRM 3.11.22, Employee Plan Returns must be used in conjunction with IRM 3.12.22 for reference and corrective actions.

3.12.22.2.1  (01-01-2009)
Background and Purpose

  1. The instructions contained in this text are used for correcting errors made by taxpayers as well as those made by campus operations for Forms 5330.

3.12.22.2.2  (01-01-2009)
IRM Acronyms

  1. The following acronyms are used throughout this IRM.

    Acronym Name
    ABC Alpha Block Control
    ADP Automated Data Processing
    AFD Alpha Field Designator
    BMF Business Master File
    BOY Beginning of Year
    CCC Computer Condition Code
    CFOL Corporate Files On Line
    DLN Document Locator Number
    DO District Office
    EIF Entity Index File
    EIN Employer Identification Number
    EOY End of Year
    EP Employee Plans
    EPMF Employee Plans Master File
    ERC Error Reason Code
    ERS Error Resolution System
    ESN Error Sequence Number
    ESOP Employee Stock Ownership Plan
    GMF Generalized Mainline Framework
    IDRS Integrated Data Retrieval System
    IRA Individual Retirement Account
    ISRP Integrated Submission and Remittance Processing System
    ITIN Individual Taxpayer Identification Number
    KV Key Verification
    MCC Martinsburg Computing Center
    MFT Master File Tax Code
    NAP National Account Profile
    OE Original Entry
    PBGC Pension Benefit Guarantee Corporation
    SCRS Service Center Replacement System
    SSA Social Security Administration
    SSN Social Security Number
    TIN Taxpayer Identification Number

3.12.22.2.3  (01-01-2009)
General Correction Procedures for Form 5330

  1. Records will be placed into Error Resolution or Rejects inventories for correction.

  2. Once a record is accessed and it displays on the screen the error must be resolved by either:

    1. Fully correcting the record, or

    2. placing the record in suspense until information is received, or

    3. rejecting the record from pipeline processing.

  3. Corrections will include correcting errors in editing, transcription or taxpayer errors.

  4. Before making corrections to the error screen displays, verify the DLN of the display matches the DLN of the document.

  5. Common procedures may be found in IRM 3.12.38, BMF SC Error Resolution Systems General Instructions. IRM 3.11.22, Employee Plan Returns, must be used in conjunction with IRM 3.12.22, Employee Plan Returns, for reference and corrective actions.

3.12.22.2.3.1  (01-01-2009)
Action Code 001

  1. Action Code 001 will be computer generated when the BOB resolution function has added a missing document by only inputting the TIN and the name control for the missing document.

    • All data must be entered.

    • GTSEC all sections and

    • enter all necessary data.

3.12.22.2.3.2  (01-01-2009)
Clear Fields "C" and "000"

  1. The letter "C" is used as a clear field for the Error Codes (consistency errors) when the invalid condition does not 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.

  2. Error Codes that need a Clear Field are cleared by either correcting the condition or entering a "C" to indicate no correction is needed.

  3. Clear Field "C" is also used for clearing the Action Code after corrections are completed.

  4. "000" is also used as a Clear Field when deleting Action Codes. It will only be used for erroneous Action Codes when it is determined there is no reason to suspend the record.

    Note:

    "000" cannot be used in Reject correction.

  5. Programming erases all "C" Clear Fields for Error Codes when a record is suspended with the Command Code SSPND.

  6. Programming erases all "C" Clear Fields for Error Codes and Action Codes for the new days error inventory and workable suspense inventory.

    Note:

    Unfinished records from the previous day will not contain the "C" Clear Fields assigned to a record that was not completed.

3.12.22.2.4  (01-01-2009)
Action Code Error

  1. All records assigned an incorrect Action Code will be displayed as a Priority 1 error. The correction procedures are:

    1. If the Action Code is valid (except 001), it will be placed in the Reject inventory.

    2. If the Action Code is invalid or is 001, it will be placed in the Error inventory.

3.12.22.2.5  (01-01-2009)
Section Errors

  1. There are two types of section errors: ISRP and TERMINUS Errors.

3.12.22.2.5.1  (01-01-2009)
ISRP Errors

  1. An ISRP error is an error detected by the ISRP system.

  2. The display for the ISRP error will include the code identifying the type of ISRP error:

    1. "1" - Split screen transmission, Key Verifier attempted to change Check Digit, 4 or more digits of a TIN, or the original entry operator entered required section as missing.

    2. "3" - Invalid section ending point.

    3. "4" - Invalid field length.

    4. "Questionable Section" -The ISRP operator input the same section more than once or entered out of sequence. The computer program will drop all duplicate sections and display the first one encountered.

  3. When displayed, ISRP errors will display all input fields of the section in error except for the remittance in Section 01. Transcribed data will be present. Computer generated data will not be present.

3.12.22.2.5.1.1  (01-01-2009)
ISRP Error Correction Procedures

  1. Check all fields of the section and verify that fields are entered as coded.

    1. If no correction is needed, or when the section is correct, drop to the bottom of the screen and transmit.

    2. If the section needs to be deleted, enter Command Code DLSEC with the section number.

3.12.22.2.5.2  (01-01-2009)
Terminus Error

  1. A Terminus Error occurs when a section with variable length input fields contains an erroneous sized field.

  2. When displayed, a Terminus Error will show all input fields of the terminus section.

    1. Transcribed data will be present.

    2. Computer generated fields or Remittance Field for Section 01 will not be present.

3.12.22.2.5.2.1  (01-01-2009)
Terminus Error Correction Procedures

  1. All fields present for the section must be examined and the necessary correction(s) made.

  2. If the section needs to be deleted, use Command Code DLSEC to delete the section.

  3. If no corrections are needed, drop cursor to the bottom of the screen and transmit.

3.12.22.2.6  (01-01-2009)
Field Errors

  1. Any date that does not meet the requirements for that field will be shown as a Field Error. Some reasons for this type of error are:

    1. Non-alphabetical character in an alpha field.

    2. Blank space in a numeric field.

    3. Blank in the first position of an alpha field.

    4. Non-numeric character in a numeric field.

    5. A required field is blank.

3.12.22.2.6.1  (01-01-2009)
Field Error Correction Procedures

  1. All Field Errors will be displayed in the order encountered in the record.

  2. Correct coding and transcription errors.

3.12.22.2.7  (01-01-2009)
Return Information

  1. The following is the return information used for processing the Form 5330.

    PROGRAM
    NUMBER    		 TAX
    CLASS    		 DOC.
    CODE    		 BLOCKING
    SERIES    		 MFT
    72860 4 35 000–999 76

3.12.22.2.7.1  (01-01-2009)
Form 5330 Splitting Taxes

  1. Error Resolution will SSPND 351 and send the document to Rejects for correction. The following instructions will be used by Rejects to split taxes.

  2. NON-Remittance (Field RMIT> is blank):

    1. Edit original return and register for only one type of tax for input.

    2. Remove other types of taxes claimed to dummy return(s) including the applicable Part II through XV for each tax.

    3. Route the dummy returns to Mail Stop 6052, Receipt and Control for processing.

  3. Remittance(Field RMIT> has money amount):

    1. Edit original return for only one type of tax.

    2. Remove other types of taxes claimed to dummy return(s) including applicable Part II through XV for each tax.

    3. Prepare Form 3893 for the original return, completing required entries, and input the credit money amount remaining on the original return.

  4. The Renumbering Technician will:

    1. Circle off the original green rocker amount in red pen and rocker the corrected tax amount in green pen on the original return and the dummy return(s).

    2. Assign DLNs to the dummy returns.

    3. Prepare Form 4028 for the original return DLN with 0-2 for the money amount being removed from that return (no document count) and 0-0 for the new dummy return DLNs, with money amount and count.

3.12.22.2.8  (01-01-2009)
Substitute Returns Prepared by EP Division

  1. Field Agents in TEGE's EP Division occasionally prepare returns for the taxpayer to use as a source document to complete an examination. The return will be identified by the note "Substitute for Return" , "SFR" , or "TC 599 CC 95 Input" . These returns should be processed as originals. The following items must be present:

    1. Filer's name or name control

    2. Filer's TIN

    3. Plan year ending

    4. Plan number

  2. If any of the above items are missing, SSPND 320 to EP Entity. Do NOT correspond.

  3. All substitute for returns must have CCC "C" .

  4. All substitute for returns will have ZERO tax liability.

3.12.22.2.9  (01-01-2009)
Secured Delinquent Returns

  1. Revenue Agents may submit delinquent returns for processing. These can be identified by the words by "Secured by TEGE," "Delinquent Return Secured," or "TC 599 CC 97 Input." The return may also have either a Form 13133 or a Form 3198-A attached.

  2. Enter CCC "R" in Field 01CCC if the attached Form 13133 or 3198–A indicates no late filing penalty should be assessed. The agent will highlight the remarks field of Form 3198-A.

  3. Edit CCC "D" in Field 01CCC if the attached Form 13133 or 3198–A indicates no late payment penalty should be assessed.

  4. Prior to issuing any correspondence on a Secured Delinquent Return for incomplete items, call EP Exam at 718–488–2330 for instructions on completing the form for processing. If no response is received from EP Exam prior to close of business, SSPND 211 and correspond for missing information.

3.12.22.3  (01-01-2009)
Form 5330 Sections

  1. Form 5330 is filed to report the tax on a funding deficiency, excess contribution, prohibited transaction, etc. related to an employee benefit plan.

  2. A separate Form 5330 is required for each plan number.

  3. Different Internal Revenue Code (IRC) Sections on the Form 5330 have different due dates. Tax on Sections 4972, 4973(a), 4975(a), 4975(b), 4976, 4978 and 4979A can all appear on the same form, but cannot appear with any other type of tax.

  4. Tax on Sections 4971(a), 4971(b), 4971(f)(1), 4971(f)(2), 4971(g)(2), 4971(g)(3), and 4971(g)(4), can all appear on the same form, but cannot appear with any other type of tax.

  5. Tax on sections 4977, 4979, 4980, 4980F and 4965 must all be reported on separate Forms 5330.

  6. The due date for Form 5330 is determined by the Internal Revenue Code (IRC) section for which the return is being filed. These due dates can be found in the following table and in Exhibit 22-1.

    IRC Section Due Date
    4972, 4973(a)(3), 4975(a), 4975(b), 4976, 4978/4978A, 4978B, 4979A Last day of the 7th month after the Tax Period Ending.
    4965 5 1/2 months after the end of the Tax Period Ending.
    4977 Last day of the 7th month after the end of the calendar year in which excess fringe benefits are paid.
    4971(a), 4971(b), 4971(f)(1), 4971(f)(2), 4971(g)(2), 4971(g)(3) and 4971(g)(4) 81/2 months after the end of the sponsor's plan year or the last day of the 7th month after the Tax Period Ending, whichever is later.
    4979 Last day of the 15th month after the end of the sponsor's plan year.
    4980 Last day of the month following the month in which the reversion occurred.
    4980F Last day of the month following the month in which the correction (amendment) occurred.

3.12.22.3.1  (01-01-2009)
General

  1. In January 2001, Forms 5330 began posting to the Business Master File (BMF) along with all associated transactions, including payments.

  2. A Taxpayer Notice Code (TPNC) will be used whenever a math error or missing item causes a change to the taxpayer's total tax. The TPNC will cause a math error explanation paragraph to be printed on a notice to the taxpayer that will be generated when the return posts to the master file.

    1. Enter the TPNC on the screen. Up to three two-digit codes are allowed.

    2. The instruction for correction of particular fields will include instructions to enter the correct TPNC.

  3. Code and Edit will edit CCC "C" on substitute for returns. This will bypass the calculation checks for most fields. If the Form 5330 or attachments indicate that this is a substitute for return, enter CCC "C" in Field 01CCC. Do not issue correspondence on substitute for returns.

  4. All money fields are dollars and cents. If the taxpayer rounds, follow his/her intent.

3.12.22.3.2  (01-01-2009)
Foreign Addresses

  1. Code and Edit perfects all foreign addresses on IDRS prior to ISRP input.

  2. ISRP will bypass the address section, therefore the displayed screen will not contain an address section.

  3. If a foreign address is input through ISRP and the return displays, research.

    1. If INOLES shows the same address as the document, delete Section 02.

    2. If INOLES shows a different address, access ENMOD and check for a pending address change.

      IF: THEN:
      pending address is present with the address on the document, delete Section 02.
      no pending address change is present, SSPND 320 and prepare Form 4227, reject the document for routing to EP Entity for "address change, foreign address" .

3.12.22.3.3  (01-01-2009)
Amended Returns

  1. If the amended box is checked, or there is other indication that the return is amended, revised, supplemental, corrected, or superseding, enter CCC "G" in Field 01CCC .

  2. If the return was identified as a duplicate or copy by unpostables, cancel the DLN and route to files for association with the original return.

3.12.22.3.4  (01-01-2009)
Section 01 Form 5330

  1. Section 01 must be present.

  2. The following fields are contained in Section 01:

    AFD POS FIELD NAME FORM LINE #
    RMIT> 11 Total Tax Paid With Return GREEN MONEY on return
    01NC 4 Name Control Item A Name of Filer
    01TIN 9 TIN Item B Filers Identification Number
    01TNT 1 Primary TIN Type Item B Edited after Filers Identification Number
    01PL 3 Plan Number Item G
    01TXP 6 Tax Period Filer Tax Year Ending (YYYYMM)
    01RCD 8 Received Date Stamped or edited on return (YYYYMMDD)
    01CCC 10 Condition Codes Edited in the middle of Item H
    01PTN 9 Sponsor EIN Item E Plan sponsors EIN
    01PYD 6 Sponsor PYE Item F Plan year ending
    01PIC 1 P&I Code Edited to left of Item C
    01CAF 1 CAF Indicator Edited to right of Plan year ending box
    01ADC 2 Audit Code Edited top left of Item H
    01COR 1 Correspondence Indicator Edited left margin of Part I title
    01CRD 8 Correspondence Received Date Part I, Title Line
    N/A 3 ERS Action Code Edited in the bottom left margin of Form 5330
    TPNC 6 Taxpayer Notice Code none

3.12.22.3.4.1  (01-01-2009)
Field RMIT> Tax Paid With Return

  1. May be present and must be numeric.

3.12.22.3.4.1.1  (01-01-2009)
Field RMIT> Invalid Conditions

  1. Amount in Field RMIT> is not numeric.

  2. An amount is present in Field RMIT> but no significant entry is in Field 0317 and CCC "G" is not present in Field 01CCC.

3.12.22.3.4.1.2  (01-01-2009)
Field RMIT> Correction Procedures

  1. Review the entries in Fields RMIT>, 0317 and 0319.

  2. Field RMIT> amount is not correctable.

    1. If the wrong amount has been transcribed in RMIT>, SSPND 611.

    2. Prepare Form 4227 to explain the error.

    3. Rejects will prepare Form 3893, Re-entry Document Control, after corrective action has been taken.

  3. If RMIT> amount is correct, correct any coding and transcription for Field 0317.

3.12.22.3.4.2  (01-01-2009)
Field 01NC Name Control

  1. A Name Control - This is a four position alpha numeric field that must be present.

3.12.22.3.4.2.1  (01-01-2009)
Field 01NC Invalid Conditions

  1. The first position is other than A-Z or 0-9 and the other positions are other than A-Z or 0-9, &, -, or blank.

  2. A character follows a blank.

3.12.22.3.4.2.2  (01-01-2009)
Field 01NC Correction Procedures

  1. If the Name Control transcribed from the document does not match the Name Control on the BMF EIF for the TIN in Field 01TIN, this field will under print with the BMF EIF Name Control as pound signs (####).

  2. Correct the name control using the following table:

    IF: THEN:
    the Name Control has not been edited or transcribed correctly from Item A and the correct Name Control matches the under printed Name Control, edit the correct Name Control and bring up the under printed Name Control in 01NC.
    the Name Control was edited and transcribed correctly, determine if the filer has changed the order of his name but there was no name change input.
    the filer changed the order of the name but there was no name change, bring up the under print Name Control in 01NC.
    the TIN was transcribed incorrectly from Block B, correct the TIN in 01TIN.

3.12.22.3.4.3  (01-01-2009)
Field 01TIN TIN

  1. This is a nine position field that must contain an entry.

  2. If the TIN is a SSN, a zero must be in Field 01TNT. If the TIN is an EIN, a "2" must be in Field 01TNT.

3.12.22.3.4.3.1  (01-01-2009)
Field 01TIN Invalid Conditions

  1. Taxpayer identification number is all zeroes or all nines.

  2. Taxpayer identification number is illegible or incomplete.

3.12.22.3.4.3.2  (01-01-2009)
Field 01TIN Correction Procedures

  1. Correct coding and transcription. If the TIN is missing or invalid, correct the TIN using the following table:

    IF: THEN:
    a valid EIN is found, enter the EIN in 01TIN.
    no ein is found on the BMF, SSPND 320, attach Form 4227, and forward to the EP Entity function for assignment of an ein.
    the EP Entity function has found or assigned an EIN, enter the EIN in 01TIN.
    the TIN on the Form 5330 on Item B is a SSN, research for a pending TC 000 using the SSN with the suffix of "V" .
    there is a pending TC 000, transmit.
    there is no pending TC 000, SSPND 320, attach Form 4227, and forward to the EP Entity function to research or establish the SSN on the V-tape.
    the EP Entity function has found or established the SSN, enter the SSN in 01TIN.

  2. If a good EIN is found, send 147C Letter to the taxpayer.

  3. If the TIN is a SSN and the taxpayer has not updated their name with SSA, SSPND 320, attach Form 4227, note in the remarks section "Establish on the BMF, TP has not updated SSA with new name" , and route to EP Entity.

3.12.22.3.4.4  (01-01-2009)
Field 01TNT Primary TIN Type

  1. Field 01TNT is used to define the primary taxpayer identification number.

  2. This is a one position field which must be present.

3.12.22.3.4.4.1  (01-01-2009)
Field 01TNT Invalid Conditions

  1. Field 01TNT is invalid if entry is other than a "0" or "2."

3.12.22.3.4.4.2  (01-01-2009)
Field 01TNT Correction Procedures

  1. If TIN type is a SSN, enter a "0" in Field 01TNT.

  2. If TIN type is an EIN, enter a "2" in Field 01TNT.

3.12.22.3.4.5  (01-01-2009)
Field 01PL Plan Number

  1. This is a three position numeric field that must be present.

3.12.22.3.4.5.1  (01-01-2009)
Field 01PL Invalid Conditions

  1. Field 01PL is invalid unless plan number is 000–999.

3.12.22.3.4.5.2  (01-01-2009)
Field 01PL Correction Procedures

  1. If Field 01TIN contains a SSN and no plan number is present on the return or attachments, SSPND 320, attach Form 4227, note "Plan Number" and route to EP Entity..

  2. If Field 01TIN contains an EIN, search attachments for a plan number. If none found, SSPND 320, attach Form 4227, note "Plan Number" and route to EP Entity.

  3. If the plan number is not in the valid range, SSPND 320, attach Form 4227, note "Plan Number" , and route to EP Entity.

  4. If there are multiple entries in Field 01PL, SSPND 211 and correspond with the taxpayer to ascertain how much tax is associated with each plan number.

    1. If a response is received and provides separate taxes for each plan number, refer to IRM 3.12.22.2.7.1 Form 5330 Splitting Taxes.

    2. If no reply is received, research EMFOLT and ERTVU on the Form 5500 filed for the same tax period as the Form 5330 and enter that plan number. If unable to determine the plan number, enter the smallest plan number shown on the Form 5330.

  5. If Field 01TIN contains a SSN and plan number "000" is present in Field 01PL, and no other correction is necessary, transmit.

  6. If Field 01TIN contains an EIN and plan number "000" is present in Field 01PL, refer to instructions 3.12.22.3.4.4(3)

    Note:

    If the account was previously reviewed by EP Entity or EP Accounts and the plan number is present and within the valid range, clear.

3.12.22.3.4.6  (01-01-2009)
Field 01TXP Tax Period Ending

  1. This field must contain an entry.

3.12.22.3.4.6.1  (01-01-2009)
Field 01TXP Invalid Conditions

  1. Field 01TXP not in YYYYMM format.

  2. Tax Period is earlier than 198412.

  3. Tax period is greater than 200812 plus 11 months.

3.12.22.3.4.6.2  (01-01-2009)
Field 01TXP Correction Procedures

  1. Correct coding and transcription

  2. Tax Period Ending cannot be earlier than 198412. If found:

    1. SSPND 620.

    2. Attach Form 4227 for routing to Non-Master File (NMF). Follow IRM 3.12.38 procedures to transfer to CSPC.

  3. If tax period is greater than process date (today's date) plus 11 months, process using current year, 200812.

  4. If Field 01TXP is blank:

    1. Use the Plan Year Ending from Item F.

    2. If Plan Year is blank, use current year (e.g. 200812 if processing year is 2009.)

  5. Enter the correct date in Field 01TXP.

3.12.22.3.4.7  (01-01-2009)
Field 01RCD Received Date

  1. This field must contain an entry.

3.12.22.3.4.7.1  (01-01-2009)
Field 01RCD Invalid Conditions

  1. Field 01RCD not in YYYYMMDD format.

  2. Received date is not greater than tax period ending.

3.12.22.3.4.7.2  (01-01-2009)
01RCD Correction Procedures

  1. Check the received date and tax period ending were correctly transcribed from the document. If transcribed correctly, and no other errors, transmit.

  2. If the Received Date Field is blank or invalid, refer to the return and attachments to determine the correct received date in the following order:

    1. Earliest IRS stamped received date.

    2. U.S. Post Office postmark date or designated Private Delivery Service (PDS) mail date. Also accept a postmark date stamped in the margin by Receipt and Control. Refer to "Postmarks" below for information on determining valid postmark dates.

    3. Revenue Agent's signature date.

    4. Signature date (unless other information indicates that the signature date is invalid).

    5. DLN Julian date minus 10 days.

    6. Today's date minus 10 days.

  3. Statute check:

    1. If the Received Date is 2 years and 10 months earlier than the PROCESS DATE, this document must be cleared by the Statute Control Unit.

    2. If the return has not been cleared by Statute Control, SSPND 310, attach Form 4227, and route to Statute Control.

    3. If the return has been cleared by Statute Control, enter W in Field 01CCC.

3.12.22.3.4.7.3  (01-01-2009)
Postmarks

  1. Postmarks are used to determine the timeliness of IRS returns.

  2. Only official postmark dates, Killer Bar Strips, or Postage Validation Imprinter (PVI) Labels are accepted as proof of filing timely.

  3. Use the following guidelines to determine whether postmarks are affixed by a U.S. Postal facility or are privately metered.

    1. Official metered postmarks have arrows that indicate official markings.

    2. Killer Bar Strips are a series of solid or broken lines containing a date, city, and state that is used to cancel the postage stamp. It is not valid if the date, city, and state are not all present.

    3. Valid PVI Labels are affixed to First and Third Class letters, and to Certified and Registered mail. They are also used on small parcels, rolls, and ordinary parcels. They may be affixed to flats mailed at the single piece rate; both Priority and Third Class.

  4. Mail dates stamps from designated Private Delivery Service (PDS) are also acceptable. The only designated PDS are:

    1. Federal Express - FedEx Priority Overnight, FedEx Standard Overnight, FedEx Two Day

    2. United Parcel Service - UPS Next Day Air, UPS Next Day Air Saver, UPS Second Day Air, UPS Second Day Air A.M.

    3. DHL Worldwide Express - DHL Same Day Service, DHL USA Overnight

    4. Airborne Express - Overnight Air Express Service, Next Afternoon Service, Second Day Service

3.12.22.3.4.8  (01-01-2009)
Field 01CCC Condition Codes

  1. The following is a list of the valid condition codes and their meanings.

    1. C - Substitute for return. When this code is present, calculation checks will be bypassed on some sections and fields as described beginning in IRM 3.12.22.3.4. Never correspond if a return was filed as a substitute for return. See IRM 3.12.22.2.8.

    2. D - Reasonable cause for waiver of Failure to Pay penalty

    3. F- Early filed return

    4. G - Amended return.

    5. O - Manual refund

    6. R - Reasonable cause for late filing

    7. W - Cleared by Statute Control Group

    8. X - Return settlement freeze

    9. Z - Return with amounts not identified with an abstract number. Assigns temporary abstract number 204

    10. 3 - Incomplete return

    11. 7 - Reasonable cause for waiver of penalties has been considered and denied

  2. Each Condition Code can only appear once.

3.12.22.3.4.8.1  (01-01-2009)
Field 01CCC Invalid Conditions

  1. Duplicate condition codes.

  2. Condition Codes D or R and 7 present.

3.12.22.3.4.9  (01-01-2009)
Field 01PTN Sponsor EIN

  1. This is a 9 character numeric field that must be present during processing.

3.12.22.3.4.9.1  (01-01-2009)
Field 01PTN Invalid Conditions

  1. Field 01PTN is not present.

  2. Field 01PTN is less than 9 characters.

  3. Information is illegible.

3.12.22.3.4.9.2  (01-01-2009)
Field 01PTN Correction Procedures

  1. Correct any transcription errors.

  2. Search attachments for a complete and accurate Plan Sponsor's EIN.

  3. If unable to determine, SSPND 320, attach Form 4227, note "Plan Sponsor's EIN" and route to EP Entity.

3.12.22.3.4.10  (01-01-2009)
Field 01PYD Sponsors Plan Year Ending Date

  1. When present must be numeric.


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