Part 3. Submission Processing

Chapter 12. Error Resolution

Section 38. BMF General Instructions (Cont. 4)

3.12.38  BMF General Instructions (Cont. 4)

3.12.38.33 
Types of Error Resolution System (ERS) Errors

3.12.38.33.5 
Priority II Errors—Section Errors

3.12.38.33.5.1  (01-01-2009)
Edit Error

  1. "Edit error" indicates a section with an error detected by the Distributed Input System.

    • Literal = DDES "1" —Split screen transmission. Key Verifier attempted to change the Check Digit, Key Verifier changed four or more digits of the Primary TIN, or the Original Entry Operator indicated that a required section was missing.

    • Literal = DDES "3" —Invalid section ending point

    • Literal = DDES "4" —Invalid field length

    • Literal = DDES "5" —"Questionable Section" (A section was entered twice or entered out of sequence by ISRP.)

  2. All fields of the section must be examined when this condition exists.

  3. If Section 01 of a return is coded, examine the tax base data section (via CC GTSEC) for an error to ensure that the return is for the taxpayer whose name is in Section 01.

  4. Correct the section.

  5. Once the section is correct or if no corrections are necessary, transmit.

3.12.38.33.5.2  (01-01-2009)
Missing Required Section and Questionable Section

  1. "Missing required section" indicates a missing section determined to be required, but missing.

  2. To correct the "missing required section" condition, enter the data for the missing section.

    1. If no data is present for the missing section, see appropriate IRM for initiating research or correspondence.

    2. After initiating research or correspondence, suspend (SSPND) the record with the appropriate Action Code.

    3. If data is present for the missing section, enter the data for the section. After entering all the data for the section, transmit.

  3. Take the following actions to correct a "questionable section" :

    1. Verify and enter all of the data for the displayed sections.

    2. Transmit when all the data is correct.

3.12.38.33.5.3  (01-01-2009)
Terminus Error

  1. "Terminus Error" indicates a section with variable length fields containing an erroneous size field or otherwise being of erroneous size.

  2. All fields of the section must be examined when this condition exists.

    1. Make the necessary corrections to the record.

    2. Once the section is correct, or if no corrections are necessary, transmit.

3.12.38.33.6  (01-01-2009)
Priority III Errors—Field Errors Screen

  1. Definition—Any field failing to meet the requirement(s) for that field (and that field only) will be shown as a Priority III Error.

  2. Consistency and/or relationships with other fields will not be a factor.

  3. Individual field validity errors to be bypassed after initial consideration will be shown as Priority IV Errors. Some reasons for field errors include:

    • Non-numeric character in a numeric field

    • Non-alphabetic character in an alpha field

    • Blank space in a number field

    • Blank in the first position of an alpha field

  4. Display—All fields with a Priority III Error will be displayed in the order encountered in the record.

  5. The Action Code and TPNCs will never be displayed as a Priority III Error.

  6. An overflow field is identified by all question marks for a money field or a single pound sign in the last position of a name line.

  7. Correction:

    1. Every field displayed is in error. See the appropriate section of IRM 3.12, Error Resolution, for the specific document.

    2. Check the information on the source document to determine if each displayed field has been correctly edited and transcribed.

    3. Enter the correct data for each field displayed.

    4. If no data is to be in a displayed field, blank the field.

    5. Correct each field displayed.

    6. Transmit.

    Note:

    If "Unrecognizable Field Error" SSPND 490.

3.12.38.33.7  (01-01-2009)
Priority IV Errors—Math/Consistency Errors Screen

  1. Any valid field used in any computation in which the result is inconsistent with or contradictory to any other valid field or fields will have Error Code 001–999 assigned to it by the computer shown as Priority IV Error.

  2. Using valid fields, if the result of the computer computation of an amount differs from that which is contained in the record, the computation fields will be shown as a Priority IV Error.

3.12.38.33.7.1  (01-01-2009)
Display

  1. Priority IV errors will be displayed with the Error Code for the specific error determined by each return program.

  2. The screen display will show the error code assigned and the fields needed to make the necessary correction.

  3. The first correction that must be made for each generated Error Code is to compare the displayed fields with the return.

  4. If edited or transcribed incorrectly, follow Form specific instructions in the 3.12 IRMs SC Error Resolution.

  5. For all math error codes, a field labeled "NC" followed by XX will generate.

    1. BMF can generate maximum of 5 TPNCs; the fifth TPNC must be TPNC 90.

    2. Each math error code will have limited TPNCs which will be valid.

    3. If an invalid TPNC is entered, the same math error code will re-display.

    4. The entry of a "TPNC" in the Taxpayer Notice Code Field will prevent any other correction on the same screen display.

  6. Previously assigned TPNCs will be displayed on line 3 preceded by literal "NC" .

  7. If determined that the generated math error code was the direct result of a previous error (resolved by a TPNC), "Any previously assigned TPNC" may be entered.

    1. Note:

      It is important that the taxpayer be advised of all errors that are present on the return. Precaution should be used when entering "Any Previously Assigned TPNC" .

  8. A field labeled "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed.

    1. This field is located on line 4 to the right of CRECT.

    2. All coding and transcription errors displayed must be corrected and IRM procedures for each field shown on the screen display MUST be applied before entering a "C" in the Clear Field.

    3. The entry of a "C" in the Clear Field will prevent any other correction on the same screen display.

3.12.38.33.7.2  (01-01-2009)
Correction

  1. All errors must be resolved by either eliminating the error, entering Clear Code, or entering a TPNC.

  2. If a correction causes an Error Code with a higher priority than the previous Error Code, all Clear Codes and TPNCs already entered for lower priority Error Codes will be deleted.

  3. All lower priority error codes still present in the record will be re-displayed for resolution, even if previously cleared with a TPNC or Clear Code.

  4. If a correction causes a cleared Error Code to no longer be in error, the TPNC or Clear Code for that Error Code will be deleted and all TPNCs and Clear Codes assigned to all lower priority (higher numeric) Error Codes will also be deleted.

  5. Any remaining Error Codes, previously cleared but now no longer cleared, will be re-displayed.

  6. Error or Suspense records from a previous day's workload that are unfinished or suspended will have all previously assigned TPNCs and Clear Code eliminated.

3.12.38.34  (01-01-2009)
Receiving Rejected and Suspended Documents

  1. This section of the manual lists the procedures that are to be followed when receiving rejected and suspended documents.

  2. Information in this section includes the following:

    • Timeliness of processing rejects

    • Sources of rejects

3.12.38.34.1  (01-01-2009)
Timeliness of Processing Rejects

  1. Rejected Documents—corrective action for items in the work inventory should be completed within ten work days (except Forms 1120, these will be processed in 5 work days).

  2. Correspondence should be within ten days for items requiring taxpayer contact.

  3. ERS Workable Suspense items should be worked or re-suspended within five work days.

  4. The above time frames do not apply while processing is unworkable for:

    • Taxpayer contact

    • Accounting or Adjustment action (except consolidated Forms 1120 in accounting. These will be processed in five work days)

    • Prescribed re-sequencing action

    • MCC Transcripts

    • Entity Control Suspense

    • Extensive research (includes ISRP / RRPS TC 610 cases)

    • Examination suspense

    • Review by Criminal Investigation

    • Documents not readily available in service center

    • Control by Technical

    • Bankruptcy Suspense

  5. TE/GE reject cases 45–59 days old should be reviewed to ensure timely resolution or re-suspension.

  6. Aged reject cases (over 60 days) should be worked as quickly as possible and should not exceed ten percent of the inventory.

  7. All cases should be completed within 120 days.

  8. Beginning with the sixth week of receipts (January thru February 15), combined IMF and BMF Rejects should not exceed the previous four weeks receipts (excluding current cycle's receipt).

3.12.38.34.2  (01-01-2009)
Sources of Rejects

  1. Records are identified and coded for rejects or ERS suspense from several different sources. These sources are:

    • Code & Edit

    • Error Correction

    • Unpostables

  2. Forms 941 and 940 magnetic tape returns will be controlled directly to Rejects when the computer determines that attachments must be reviewed. Action Code 550 is generated for ERS.

  3. Records are automatically sent to ERS suspense because of a duplicate block DLN.

3.12.38.34.2.1  (01-01-2009)
Code & Edit Function

  1. A tax examiner has determined that research or correspondence is required on a numbered document.

  2. An Action Code is entered on the source document and transcribed as part of the record.

  3. If the Action Code is complete and valid, the record will be placed in the unworkable suspense inventory for a predetermined number of days or in the workable suspense inventory to be resolved immediately. (ERS only)

  4. Computer Condition Code (CCC) "U" is placed on the document and transcribed as part of the record. (SCRS only).

3.12.38.34.2.2  (01-01-2009)
Error Correction Function

  1. A tax examiner determines that additional information is needed for processing.

  2. The ERS examiner will enter CC SSPND with a valid Action Code.

  3. An error correction tax examiner will enter Action Code 3, on the SCRS register.

3.12.38.34.2.3  (01-01-2009)
Suspense Correction

  1. If a correction is required, enter CC GTREC with a complete DLN.

    Caution:

    If correspondence is received after the due date plus the ≡ ≡ ≡ ≡ ≡ day grace period of the return, enter the Correspondence Received Date. Refer to the appropriate IRM.

    1. Enter CC GTSEC with the appropriate section number and enter the data received.

    2. After all the data have been entered, enter C in the clear field and the record will be subjected to normal validity checks.

  2. If no correction is required, enter CC GTREC with a complete DLN and enter C in the clear field.

  3. If a correction is required to computer-generated Action Codes, refer to the appropriate IRM.

    1. Action Codes 700, 711–715, Duplicate DLNs, enter a "C" in the clear field and the record will be subjected to normal validity checks.

    2. Action Code 900, Unpostables, refer to IRM 3.12.38.35.4.

    3. When all the data has been entered, enter "C" in the clear field and the record will be subjected to normal validity checks.

3.12.38.34.2.4  (01-01-2009)
Unpostables Function

  1. Certain unpostable records, determined to be uncorrectable on the Generalized Unpostable File (GUF), are rejected and automatically established on a reject register or an ERS workable suspense record.

  2. A tax examiner nullifies an unpostable document with Unpostable Resolution Code (URC) "8" .

3.12.38.35  (01-01-2009)
Unpostables

  1. This section of the manual lists the procedures that are to be followed when receiving and correcting unpostables.

  2. Information in this section includes the following:

    • Receiving rejected unpostables

    • Types of rejected unpostables

    • Researching rejected unpostables

    • Receiving auto void unpostables

    • Applicable unpostables and their various correction procedures

  3. When Transaction Code 984 and 986, become unpostable, the correction procedures to be used are located in IRM 4.19.4.11.17CAWR Unpostable Procedures.

3.12.38.35.1  (01-01-2009)
Receiving Rejected Unpostables

  1. Unpostable records are received directly from the Generalized Unpostable Framework (GUF).

  2. Each reject unpostable (or batch of rejected unpostables) will include an explanation of the unpostable condition, the suggested action and the document or return.

  3. Normally this information is shown in an Unpostable Routing Slip (Form 8749).

  4. Any document or return received without a satisfactory or conflicting explanation will be checked on the GUF 55–47 (For the week of the 8 code).

  5. All nullified records are listed on the Nullified Distribution Listing (GUF–55–47) by the area that is to receive the documents.

  6. The Nullified Distribution Listing provides an audit trail for all nullified closures (URC "1" , "2" or "8" ).

  7. Items nullified with Unpostable Resolution Code "8" will appear on a listing titled "Nullified Distribution Listing-Rejects" .

  8. The Reject Clerical function will receive a copy of the listing for all URC "8" closures.

  9. Documents received from any Unpostable Function that do not appear on the Nullified Distribution Listing will be returned to originating function.

3.12.38.35.2  (01-01-2009)
Types of Rejected Unpostables

  1. Rejected Unpostables are divided into four categories:

    • Statute Cases

    • Batch Rejects

    • Missing Documents

    • Unpostable Resolution Code (URC) "8"

3.12.38.35.2.1  (01-01-2009)
Statute Cases

  1. Statute cases are assigned directly to the Statute Unit but will remain in the Unpostable inventory until the case is resolved by the Statute unit or URC 8 coded into Reject/Suspense inventory.

  2. After reviewing the documents, the Statute Unit will make corrections to the files available to them on the GUF screen.

  3. The Statute Unit will URC 8 code the case to be worked by Rejects/Suspense and if they are unable to correct the case through GUF.

3.12.38.35.2.2  (01-01-2009)
Batch Rejects

  1. Certain unpostable conditions are identified and corrected for several documents at the same time.

  2. These may be received with a single Unpostable Routing Slip for the entire batch of unpostable documents.

3.12.38.35.2.3  (01-01-2009)
Missing Documents

  1. Unpostables is required to conduct the initial research for missing documents and three additional follow-up searches; one after the initial search and two at approximately fourteen day intervals.

    1. When a record is rejected (after the third search), all research documentation is routed to Rejects to await the outcome of the fourth search request initiated by Unpostables.

    2. Form 8749, Form 4251 or local routing slip is attached to indicate the reason for the unpostable and the corrective action (when appropriate) if the document is located, reconstructed or resubmitted.

3.12.38.35.2.4  (01-01-2009)
Unpostable Resolution Code (URC) "8"

  1. An Unpostable Tax Examiner has determined the document must be corrected by Rejects/Suspense Tax Examiner.

  2. A separate unpostable routing slip will be attached with an explanation of the unpostable condition and the proposed resolution (corrective action).

  3. The Reject Tax Examiner will be responsible for correct editing of documents, using the appropriate Code & Edit IRM (3.11.XXX), for cases released with URC 8. (Example: 8736 needing to be converted to Form 7004)

  4. If an unpostable condition is present on a Form 720 which can not be resolved, the responsible service center Submission Processing Planning and Analysis analyst should contact the Headquarters Form 720 processing analyst for assistance.

  5. Unpostable Resolution Code 8 documents may originate with instructions from Unpostables, Entity, Criminal Investigation or Statutes.

3.12.38.35.3  (01-01-2009)
Researching Rejected Unpostables

  1. Sources of information on unpostables activated and case status, in addition to IDRS CCs are:

    • GUF 11–40—New Unpostable Report (reports are separated by Master File)

    • GUF 57–40—Closed Unpostable Register

    • Unpostable Log Book or Listing

  2. GUF 11–40, New Unpostable Report, is generated each week for all unpostables printed in order by Master File, Category Code and DLN and contains the following information:

    • Sequence Number

    • Document Locator Number (DLN)

    • Repeat Indicator

    • Taxpayer Identification Number (TIN)

    • Name Control or Check Digits

    • MFT

    • Tax Period

    • Transaction Code (TC)

    • Cycle of Unpostable

    • Unpostable Code

    • Master File Name Control if applicable

  3. The Cumulative Closed Unpostable Register lists unpostables which have been closed during the current processing year.

    1. It is used as the audit trail for closed unpostables.

    2. A separate list is provided for each Master File, and cases for each list are sorted in unpostable TIN order.

3.12.38.35.4  (01-01-2009)
Receiving Auto-void Unpostables

  1. Rejects will be receiving certain unpostable returns directly from the GUF system.

  2. The ERS Priority I screen has been changed to display the Master File unpostable and reason code on all transactions with Action Code 900.

  3. For more detailed information on category codes reference IRM 3.12.32, General Unpostables.

3.12.38.35.5  (01-01-2009)
Unpostable Code 301 RC 4

  1. UPC 301 RC 4 — TC 150 for MFT 52 with entity information attempts to post.

3.12.38.35.5.1  (01-01-2009)
Invalid Condition — UPC 301 RC 4

  1. UPC 301 RC 4 —This unpostable occurs when a TC 150 form MFT 52 with entity attempts to post and:

    1. the Date of Death is zeros; or'

    2. the Date of Death is greater than the current 23C date.

3.12.38.35.5.2  (01-01-2009)
Correction Procedure — UPC 301 RC 4

  1. Correct the Date of Death.

3.12.38.35.6  (01-01-2009)
Unpostable Code 304 — Input Transaction Attempts to Establish a Tax Module with a Tax Period Prior to the Master File

  1. UPC 304 RC 0 and 7 — An input transaction attempts to establish a tax module on the Business Master File with an invalid tax period.

3.12.38.35.6.1  (01-01-2009)
Invalid Condition — UPC 304 RC 0 through 7

  1. UPC 304 RC 0 through 7—The unpostable occurs when an input transaction attempts to establish a tax module with a tax period prior to those shown below:

    1. MFT 68 — — — — — — — — tax period 199701

    2. MFT 42 — — — — — — — — tax period 200012

    3. MFT 14 — — — — — — — — tax period 200612

    4. MFT 17 — — — — — — — — tax period 200601

3.12.38.35.6.2  (01-01-2009)
Correction Procedures — UPC 304 RC 0 through 7

  1. If other than an original return or payment, cancel the DLN and route the document to the originator explaining the reason it was canceled.

  2. If unpostable is a payment, research to determine if payment was processed to the wrong MFT or Tax Period and correct accordingly.

    1. Payment amount agrees with a balance due module

    2. Payment is in alignment with other payments posting to a balance due module.

    3. Payment is in alignment with payments posting to a future module.

    4. For MFT 17, if payment is intended for a period prior to 200601, take the necessary action to process the payment to NMF.

  3. If unable to determine where payment should post or if original return, correspond with the taxpayer.

    1. Post according to taxpayer information when reply is received.

    2. If incomplete reply or no reply, take the necessary action to route the payment to Unidentified.

    3. If incomplete reply or no reply, take the necessary action to cancel the DLN, if original return, and send to Files to be filed in original block.

3.12.38.35.7  (01-01-2009)
Unpostable Code 307 RC 1

  1. UPC 307 RC 1 – Change in accounting period.

3.12.38.35.7.1  (01-01-2009)
Invalid Condition — UPC 307 RC 1

  1. Occurs when the fiscal month of a Form 1120, 1041, or 1065 input transaction is attempting to establish a tax module, but did not match the fiscal month of the account entity, and it was not a transaction TC 150 trying to establish the first 1120, 1041, or 1065 tax module , or was not a TC 150 containing CCs F or Y.

3.12.38.35.7.2  (01-01-2009)
Correction Procedures - UPC 307 RC 1

  1. UPC 307 RC 1— When the return received from the Unpostable function is a:

    1. Form 1041 which indicates it was filed as an Application for Benefits Under IRC Section 443(b)(2)— Cancel the DLN and route to Accounts Management to be processed as a claim.

3.12.38.35.8  (01-01-2009)
Unpostable Code 307 RC 2

  1. UPC 307 RC 2 - Future tax period.

3.12.38.35.8.1  (01-01-2009)
Invalid Condition - UPC 307 RC 2

  1. UPC 307 RC 2 - Occurs when any transaction except TC 421 and TC 424 with SPC 039, Source Code 60 and Employee Group Code 1000/2000 attempts to open a module with a period ending greater than the 23C date plus 12 months.

3.12.38.35.8.2  (01-01-2009)
Correction Procedures - UPC 307 RC 2

  1. If the document is a payment:

    1. Research CC BMFOL for debit module and if found, correct the tax period on the screen to allow the payment to post.

    2. If no debit module, correct the payment to the current year.

  2. If the document is a return:

    1. Research return and attachments to determine correct period ending and make the correction to the screen.

    2. If the return was early filed, suspend with Action Code 480.

  3. All others, route to the originator.

3.12.38.35.9  (01-01-2009)
Unpostable Code 307 RC 9 — Form 3520 Fiscal Month mis-match

  1. MFT 68 TC 150(Form 3520)

3.12.38.35.9.1  (01-01-2009)
Invalid Condition - UPC 307 RC 9

  1. UPC 307 RC 9 - This unpostable occurs when the input fiscal month of TC 150 for MFT 68 does not match the entity fiscal year month and the TIN is an EIN

3.12.38.35.9.2  (01-01-2009)
Correction Procedure — UPC 307 RC 9

  1. Change the tax period to agree with the FYM on Master File.

3.12.38.35.10  (01-01-2009)
Unpostable Code 308 RC 6 — Magnetic Tape 940 Filing Requirement Discrepancy

  1. UPC 308 RC 6 - MFT 10 TC150 (Form 940 Series).

3.12.38.35.10.1  (01-01-2009)
Invalid Condition – UPC 308 RC 6

  1. UPC 308 RC 6 -occurs when MFT 10, TC 150 attempts to post to a module containing 2 previously posted DP Adjustments in blocking series 400–439 that do not net to zero.

3.12.38.35.10.2  (01-01-2009)
Correction Procedure – UPC 308 RC 6

  1. UPC 308 RC 6 —Cancel the DLN and route the document to Accounts Management .

3.12.38.35.11  (01-01-2009)
Unpostable Code 311 RC 1 — Non Master File Account (Cincinnati Submission Processing Center (CSPC) Only)

  1. UPC 311 RC 1 —A Transaction Code other than a TC 370 attempts to posts to a tax module not on the Master File.

3.12.38.35.11.1  (01-01-2009)
Invalid Condition – UPC 311 RC 1

  1. UPC 311 RC 1 —occurs on Non-Master File Accounts.

  2. UPC 311 RC 1 —occurs when an input transaction coded other than TC 370 (document code 51) with secondary TC 402 attempts to post to a tax module whose status is 29 (Account Transferred Out of MF).

3.12.38.35.11.2  (01-01-2009)
Correction Procedures – UPC 311 RC 1

  1. UPC 311 RC 1 —Renumber original returns using procedures outlined in IRM 38.24.5 Non-Master File items.

    1. "REMEMBER" — a Form 4338 is NOT needed.

  2. UPC 311 RC 1 —Renumber payment items using procedures outlined in IRM 38.24.5 Non-Master File items

    1. "REMEMBER" — A Form 4338 MUST be prepared for these items.

3.12.38.35.12  (01-01-2009)
Unpostable Code – 311 RC 2 — Non-Master File Accounts (Cincinnati Submission Processing Center (CSPC) Only)

  1. UPC 311 RC 2 —TC 370 (Account Transfer In) with Doc Code 51.

3.12.38.35.12.1  (01-01-2009)
Invalid Condition — UPC 311 RC 2

  1. UPC 311 RC 2 —An input TC 370 (document code 51) with secondary TC 400 attempts to post to a tax module whose status is 29.

3.12.38.35.12.2  (01-01-2009)
Correction Procedures — UPC 311 RC 2

  1. UPC 311 RC 2 —cancel the DLN and route to the Accounting.

3.12.38.35.13  (01-01-2009)
Unpostable Code 313 RC 8 — No Related Transactions

  1. UPC 313 RC 8 —TC 240 (Miscellaneous Penalty) (reference Number 689).

3.12.38.35.13.1  (01-01-2009)
Invalid Condition — UPC 313 RC 8

  1. UPC 313 RC 8 —occurs when a TC 240 (reference Number 689) transaction is input to a module and there is no previously posted TC 690 for the same amount.

3.12.38.35.13.2  (01-01-2009)
Correction Procedures — UPC 313 RC 8

  1. UPC 313 RC 8 —Contact Compliance (Examination) for resolution of case.

3.12.38.35.14  (01-01-2009)
Unpostable Code 318 RC 1 — BMF Credit Transfer Invalid

  1. UPC 318 RC 1 — TC 790 (Manual Overpayment Applied from IMF).

3.12.38.35.14.1  (01-01-2009)
Invalid Condition – UPC 318 RC 1

  1. UPC 318 RC 1 — occurs when TC 790 input to an account liable for any of the following:

    • Forms 1120

    • Forms 1041

    • Forms 990

    • Forms 990C

    • Forms 990T

    • Forms 990EZ

    • Forms 990PF

    • Forms 1041A

    • Forms 5227

    • Forms 4720

    • Forms 709

    • Forms 706

    • Forms 1065

3.12.38.35.14.2  (01-01-2009)
Correction Procedures – UPC 318 RC 1 - BMF Credit Transfer Invalid

  1. UPC 318 RC 1 —If Unpostable 318-1 generates, Rejects will revert to the Cross-Reference Data: TIN, Name Control, MFT, Plan Number or Tax Period.

    1. The CCA/42/43 report is automatically generated to the originator for notification of the reversal.


More Internal Revenue Manual