Accessibility Skip to Top Navigation Skip to Main Content Home  |  Change Text Size  |  Contact IRS  |  About IRS  |  Site Map  |  Español  |  Help  

Part 3. Submission Processing

Chapter 12. Error Resolution

Section 263. Estate and Gift Tax Returns - Error Resolution System (ERS) Corrections (Cont. 15)

3.12.263  Estate and Gift Tax Returns - Error Resolution System (ERS) Corrections (Cont. 15)

3.12.263.15 
Math Consistency - Priority IV Errors (Form 709)

3.12.263.15.17 
Error Code 088

3.12.263.15.17.1  (01-01-2009)
Invalid Conditions

  1. The spouse amounts in Gifts Attributable to Spouse, Balance After Spouse Amount, Gifts Included from Spouse, and/or Total Gifts Amount are present, and the Tax Period is after 200212.

3.12.263.15.17.2  (01-01-2009)
Correction Procedures

  1. Correct any editing or transcription errors.

  2. Compare the Tax Period on the return against Field 01TXP the screen. If the Tax Period on the return is for a period ending 200212 (December 2002) or prior, correct Field 01TXP to release the return.

  3. If the Tax Period on the return confirms that the return is for a period after 200212 (December 2002), delete all of the entries in Fields 02A, 02B, 02C, and 02D.

3.12.263.15.18  (01-01-2009)
Error Code 400

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    01TXP Tax Period
    01CCC Computer Condition Code
    01RCD Received Date
    01DTH Death Indicator
    01DOD Date of Death

3.12.263.15.18.1  (01-01-2009)
Invalid Conditions

  1. The Death Indicator is blank, but Field 01CCC (CCC "F" ) is present.

  2. The Death Indicator is present, but the Date of Death is blank.

  3. The Death Indicator is blank, but the Date of Death is present.

  4. The Death Indicator is present, but Field 01CCC does not contain CCC "F" .

  5. The Date of Death is present, but 01CCC does not contain an "F" .

  6. The Date of Death is greater than the received date.

  7. The Death of Death year is not equal to the Tax Period year.

3.12.263.15.18.2  (01-01-2009)
Correction Procedures

  1. Compare the return against the screen and correct all editing and transcription errors.

  2. Enter CCC "F" in Field 01CCC, only if a "1" is present in Field 01DTH (Death Indicator) and the Date of Death (Field 01DOD) is during the year the gift was made. Enter the "F" in Field 01CCC for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, when the return will be the final return filed for a deceased donor.

    1. If the Death Indicator, Field 01DTH, is blank, and CCC "F" is present, check return and attachments (if necessary) for a Date of Death or a death certificate to confirm the donor died.

    2. If the date of death cannot be determined from the return, an attachment, or from researching INOLE, delete the "1" in Field 01DTH and the "F" in Field 01CCC.

  3. If the date of death is before or after the tax period of the return:

    1. Delete the entries in Fields 01DTH and 01DOD.

    2. Delete CCC "F" from 01CCC, if present.

3.12.263.15.19  (01-01-2009)
Error Code 404

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    01SSS Spouse's Social Security Number
    01TXP Tax Period
    01CSI Consent of Spouse Indicator
    01FSI Foreign Spouse Indicator
    0201 Total Gifts Current Amount
    02A Gifts Attributable to Spouse
    02B Balance After Spouse Amount
    02C Gifts Included from Spouse
    02D Total Gifts Amount

3.12.263.15.19.1  (01-01-2009)
Invalid Conditions

  1. Entries are present in Fields 02A (Gifts Attributable to Spouse), and 02C (Gifts Included from Spouse), but there is no entry in Field 01CSI (Consent of Spouse Indicator).

3.12.263.15.19.2  (01-01-2009)
Correction Procedures

  1. Check for coding and transcription errors and correct as needed.

    Note:

    For prior year returns filed on the 2002 revision, input Fields 02A, B, C and D if the taxpayer is splitting gifts. If the taxpayer is not splitting gifts, input the taxpayer's figures in Fields 0201, 0202, and 0203.

  2. For tax year 2002 and prior year returns Field 01SSS (Spouse's Social Security Number (SSS)) must contain an entry if Field 01CSI (Consent of Spouse Indicator Code) contains a Consent Code "1" .

    1. Check the return and attachments for the spouse's Social Security Number and correct Field 01SSS.

    2. If you are able to secure the name of the spouse, but unable to secure the Spouse's Social Security Number, perform research for the SSS and enter the information in Field 01SSS.

    3. If you are unable to find the Spouse's Social Security Number on the return or attachments, continue to process the return, using the information provided. Split-gift situations DO NOT permit the filing of a joint Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, but require that each spouse file a separate Form 709, and submit them together in the same envelope, indicating his/her wish to split gifts. It is possible the spouse's return was submitted, and may have been somehow separated during processing. It may have been already processed or is being processed in another batch of work.

  3. For tax year 2002 and prior year returns. Field 01SSS must be present if there are entries in Fields 02A (Gifts Attributable to Spouse) or 02C (Gifts Included from Spouse). Follow the steps in (1) above if Field 02A and 02C contain entries with a blank Field 01SSS.

  4. If no consent is required, see IRM 3.11.106.15.10, Estate and Gift Taxes, for consent information. Delete Fields 01SSS and 01CSI if consent information is not required.

3.12.263.15.20  (01-01-2009)
Error Code 408

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    01TXP Tax Period
    01CSI Consent of Spouse Indicator
    01TND Total Number of Donees
    01FSI Foreign Spouse Indicator
    0202 Annual Exclusions

3.12.263.15.20.1  (01-01-2009)
Invalid Conditions

  1. The Total Number of Donees is blank, but the Annual Exclusions is present.

  2. The Annual Exclusions is blank or zero, but the Total Number of Donees is present.

3.12.263.15.20.2  (01-01-2009)
Correction Procedures

  1. Check for coding and transcription errors and correct as needed.

  2. If Pages 2 or 3 are missing, correspond. If no reply is received, enter the amount from Field 0301 into Fields 0201, 0203, 0209, and 0211. If information is received from taxpayer, process accordingly.

  3. Field 0202 (Annual Exclusions) is transcribed from Line 2, Part 4, Page 3 (Schedule A) (or Line 6, Part 3, Page 2 on tax year 2002 and prior year returns). This field is computed by multiplying the number entered in Field 01TND by $12,000. If a gift is less than $12,000, limit the amount of Annual Exclusion for that gift to the amount of the gift.

    Exception:

    (1) The annual exclusion amount for gifts of a present interest was $11,000 for tax periods 200201 through 200512; $10,000 for tax periods 198201 through 200112 and $3,000 for tax periods prior to January 1, 1982. (2) The annual exclusion may also be affected by the Annual Exclusion amount for Foreign Spouses, which is currently $128,000. See (5) and (6) below for additional information regarding the impact of the Annual Exclusion for Foreign Spouses on the Annual Exclusion computation.

    1. Compare the screen against the return and correct all transcription errors.

    2. Verify the entry in Field 01TND and 0202.

    3. If the amount in annual exclusion (Field 0202) is blank or zero, delete entry in the number of donees (Field 01TND).

    4. If there is an amount in Field 0202 which the taxpayer did not use in his computation of tax, follow his intent and delete the amount in Field 0202.

  4. If the amount in Field 0202 is blank or zero and valid, delete any entry in Field 01TND.

  5. Annual Exclusion for Non-Citizen Spouses . The annual exclusion for non–citizen spouses for the year 2008 is $128,000. The annual exclusion for prior year returns is provided as follows: for 2007, $125,000; for 2006, $120,000; for 2005, $117,000; for 2004, $114,000; for 2003, $112,000; for 2002, $110,000; for 2001, $106,000; for 2000, $103,000; for 1999, $101,000; for July 13, 1988 through 1998 is $100,000, and for returns prior to July 13, 1988, $10,000.

    Note:

    For gifts made after July 13, 1988, for U.S. citizens giving gifts to their non-citizen spouse, the annual exclusion was increased from $10,000 to $100,000.

    1. If the taxpayer has claimed $128,000 for the Annual Exclusion (Field 0202), accept his entry only if the gift is to a non-citizen spouse.

    2. If the gift is indeed to a non-citizen spouse, verify that a "1" is present in Field 01FSI. See Exhibit 3.12.263-7.

    3. If the gift is not to a non-citizen spouse, delete the "1" , if present, in Field 01FSI and send a TPNC 90 to inform the taxpayer that he/she took more than the allowable annual exclusion.

  6. The annual exclusion for a non-citizen spouse as a donee cannot exceed $128,000. When a non-citizen spouse is a donee and there are additional donees, the annual exclusion will be computed as in the following example:

    1. If 01TND equals 4 (one of which is the non-citizen spouse donee) and "1" is in Field 01FSI then Field 0202 (Annual Exclusion) cannot exceed $164,000.

    2. The preceding $164,000 is calculated by allowing $128,000 for the non-citizen spouse and $12,000 for each donee (see table below). Total donees equals 4 (Field 01TND)

      1 = $128,000 (Non-citizen Spouse)

      3 × $12,000 = $36,000 (each additional donee)
      $164,000 (Total allowable annual exclusion Field 0202)

    3. If the amount in Annual Exclusion is less, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.21  (01-01-2009)
Error Code 412

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    0201 Total Gifts Current Amount
    02A Gifts Attributable to Spouse
    02B Balance After Spouse Amount
    >>>> Balance After Spouse Amount (Computer)

3.12.263.15.21.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.21.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

    Note:

    For prior year returns filed on the 2002 revision, input Fields 02A, B, C and D if the taxpayer is splitting gifts. If the taxpayer is not splitting gifts, input the taxpayer's figures in Fields 0201, 0202, and 0203.

  2. If the taxpayer made an error in computation, send TPNC 10.

3.12.263.15.21.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period"

    2. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    3. Any previously-assigned TPNCs.

3.12.263.15.22  (01-01-2009)
Error Code 414

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    02B Balance After Spouse Amount
    >>>> Balance After Spouse Amount (Computer)
    02C Gifts Included from Spouse
    02D Total Gifts Amount
    >>>> Total Gifts Amount (Computer)

3.12.263.15.22.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.22.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

    Note:

    For prior year returns filed on the 2002 revision, input Fields 02A, B, C and D if the taxpayer is splitting gifts. If the taxpayer is not splitting gifts, input the taxpayer's figures in Fields 0201, 0202, and 0203.

  2. Compare the displayed fields with the return. If the taxpayer filed a return for tax year 2008 on a prior year version of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, enter the amount from Line 5, Part 3, Page 2 (Schedule A) on the return into Field 0201.

  3. If the taxpayer's entries were incorrect, issue TPNC 90, informing the taxpayer that "We found an error in the computation of your total gifts amount (Line 5, Part 3, Page 2 (Schedule A)."

3.12.263.15.22.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period"

    2. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    3. Any previously-assigned TPNCs.

3.12.263.15.23  (01-01-2009)
Error Code 416

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    01TND Total Number of Donees
    01FSI Foreign Spouse Indicator
    0202 Annual Exclusions
    >>>> Annual Exclusions (Computer)

3.12.263.15.23.1  (01-01-2009)
Invalid Conditions

  1. Annual Exclusions is greater than Annual Exclusions (Computer).

3.12.263.15.23.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. This field is transcribed from Line 2, Part 4, Page 3 (Schedule A) (or Line 6, Part 3, Page 2 for tax year 2002 and prior year returns). This field is computed by multiplying the number entered in Field 01TND by $12,000. If a gift is less than $12,000, limit the amount of Annual Exclusion for that gift to the amount of the gift.

    Exception:

    For Tax Periods 200201 through 200512, the Annual Exclusion amount was $11,000. For Tax Periods 198212 through 200112, the Annual Exclusion amount was $10,000. For Tax Periods 198112 and prior, the Annual Exclusion amount was $3,000. See below for information regarding the Annual Exclusion for Non-Citizen Spouses.

    1. Compare the displayed fields with the return and correct all transcription errors.

      Note:

      See IRM 3.12.263.15.45, Section 529(c)(2)(B) Returns, if a taxpayer makes a Section 529(c) election or GST allocation. See IRM 3.12.263.15.45.3, GST Exemption Allocation, for error resolution procedures.

    2. Verify the entry in Field 01TND and 0202.

      Note:

      If a trust is named as a donee, allow the number of donees to the number of beneficiaries of the trust. If the number of beneficiaries is not available, allow the number of donees to offset the annual exclusion being taken.

    3. If you cannot determine the number of donees and the return is that of a taxpayer for which consent of spouse is required, permit the number of donees necessary to offset the Annual Exclusion being claimed. See IRM 3.12.263.14.2.11, Field 01CSI-Consent of Spouse Indicator.

    4. If the amount in annual exclusion (Field 0202) is blank or zero, delete entry in the number of donees (Field 01TND).

    5. If there is an amount in Field 0202 which the taxpayer did not use in his computation of tax, follow his intent and delete the amount in Field 0202.

    6. If the error in Field 0202 causes an underprint, send TPNC 90.

      Note:

      Field 01TND must be correct before TPNC 90 can be sent. Suggested wording: "An error was made in computing your annual exclusion. Your Unified Credit has been adjusted accordingly."

  3. The first $12,000 of gifts of present interest to each donee during the calendar year is subtracted in figuring the amount of taxable gifts. Verify the annual exclusion claimed against the number of donees box on Page 1, Part 1, Line 10. ( See IRM 3.12.263.14.2.16, Field 01TND-Total Number of Donees, to determine the correct number of donees.) An underprint will generate in Field 0202 if the taxpayer's figure is greater than the computer's computation (Field 01TND multiplied by $12,000). If Field 0202 is blank and valid, delete any entry in Field 01TND.

  4. Annual Exclusion for Non-Citizen Spouses . The annual exclusion for non–citizen spouses for the year 2008 is $128,000. The annual exclusion for prior year returns is provided as follows: for 2007, $125,000; for 2006, $120,000; for 2005, $117,000; for 2004, $114,000; for 2003, $112,000; for 2002, $110,000; for 2001, $106,000; for 2000, $103,000; for 1999, $101,000; for July 13, 1988 through 1998, $100,000, and for returns prior to July 13, 1988, $10,000.

    Note:

    For gifts made after July 13, 1988, for U.S. citizens giving gifts to their non-citizen spouse, the annual exclusion was increased from $10,000 to $100,000.

    1. If the taxpayer has claimed $128,000 for the Annual Exclusion (Field 0202), accept his entry only if the gift is to a non-citizen spouse.

    2. If the gift is indeed to a non-citizen spouse, verify that a "1" is present in Field 01FSI. See Exhibit 3.12.263-7.

    3. If the gift is not to a non-citizen spouse, delete the "1" , if present, in Field 01FSI and send a TPNC 90 to inform the taxpayer that he/she took more than the allowable annual exclusion.

  5. All gifts made during the calendar year to a donee are fully excluded under the annual exclusion if all are gifts of present interest and if they total $12,000 or less.

    Note:

    If a gift is less than $12,000, limit the amount of Annual Exclusion for that gift to the amount of the gift.

  6. For the purpose of the exclusion, there are two kinds of gifts: gifts of a present interest and gifts of a future interest.

    1. Gifts of a present interest qualify for the exclusion. Gifts of a future interest do not.

    2. A gift is a gift of a present interest if the donee can do anything he or she wants with the gift or can do anything he or she wants with the income from the property (if only present interest is an income interest — exclusion would be limited to value of income interest). (Taxpayer is free to spend or to benefit from the gift when it is received.)

    3. A gift is a gift of a future interest if the donee cannot do so until sometime in the future.

      Exception:

      If a gift is given to a minor, the gift and income from the gift may be spent by, or for the benefit of the donee prior to attaining the age of 21, and any amounts remaining will pass to the donee once he or she has reached age 21, the gift is considered to be a gift of present interest.

    4. If the taxpayer indicates that a gift of a future interest has been given and does not claim an exclusion ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. If the taxpayer does not indicate that a gift of a future interest has been given but does not claim an exclusion ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    6. If the taxpayer indicates that a gift of a future interest has been given, and an exclusion has been taken for that gift, disallow the exclusion and notify the taxpayer with a Taxpayer Notice Code (TPNC) 90, stating as follows: "We disallowed the exclusion amount taken for the gift of future interest as indicated on your return because gifts of future interest do not qualify for the exclusion."

    7. For Tax Periods 198112 and prior the donee exclusion is $3,000. For Tax Periods 198201 through 200112 the donee exclusion is $10,000. For Tax Periods 200201 through 200512 the donee exclusion is $11,000.

  7. For tax year 2002 and prior year returns. If Field 0202 is twice the allowable amount and there is no entry in Field 02C, it has to be determined if the taxpayer is filing a joint return. See IRM 3.12.263.3.2, Community Property Information, for further information on community property. To determine if this is a joint return (which is not permissible):

    1. More than one name in the entity portion of the return

    2. Consent of spouse

    3. If Question 15, Page 1, Part 1, is answered "Yes" .

  8. If there is an indication that this is a "joint return" , the return is to be suspended for correspondence, using Form 3696, Correspondence Action Sheet, to tell the taxpayers that joint returns are not permissible when reporting gifts on Form 709, United States Gift (and Generation -Skipping Transfer) Tax Return. If no reply, establish as separate returns based on the information available. When in doubt, resolve in the government's favor.

  9. If there is only one name in the caption, there is a consent of spouse present, or if Question 15 is answered "No" , the return should be considered a separate filing and the exclusion should be reduced to $12,000 per donee.

  10. The consenting spouse must also file a Gift Tax Return, if the spouses elect gift splitting. See IRM 3.11.106.15.10, Estate and Gift Taxes, and See IRM 3.12.263.14.2.11, Field 01CSI-Consent of Spouse Indicator, for further information on split gifts. Both the donor spouse and the consenting spouse must each file separate gift tax returns unless all requirements of either Exception 1 or 2 below are met.

  11. Exception 1—During the calendar year:

    1. Only one spouse made any gifts.

    2. The total value of these gifts to each third party donee does not exceed $24,000 ($22,000 for tax years 200201 through 200512; $20,000 for Tax Years 198201 through 200112; and $6,000 for tax years 198112 and prior).

    3. All of these gifts constitute present interests.

  12. Exception 2—During the calendar year:

    1. Only one spouse (the donor spouse) made gifts of more than $12,000, but not more than $24,000 to any third party donee ($22,000 for Tax Years 200201 through 200512; $20,000 for Tax Years 198201 through 200112; and $6,000 for Tax Years 198112 and prior).

    2. The only gifts made by the other spouse (the consenting spouse) were gifts of not more than $12,000 to third-party donees other than those to whom the donor spouse made gifts.

    3. All of the gifts by both spouses constitute present interests.

  13. If either Exception 1 or 2 is met, only the donor spouse needs to file a return and the consenting spouse signifies consent on the return. See IRM 3.12.263.14.2.11, Field 01CSI-Consent of Spouse Indicator, for consent criteria. In these cases, only one-half of the total gift should be reported on Part 4, Page 3, Line 1 (Field 0201) and the number of donees and/or annual exclusion should NOT be doubled.

  14. If the taxpayer qualifies for one of the exceptions, edit Fields 0201 through 0203 to reflect the amounts appropriate to each field. (previously Lines 2 through 7 on tax year 2002 and prior year returns).

  15. If neither Exception 1 or 2 is met, correspond for separate gift tax returns. See IRM 3.12.263.14.2.11, Field 01CSI-Consent of Spouse Indicator.

  16. If the amount in Annual Exclusion (Field 0202) is blank or zero, blank the Total Number of Donees (Field 0TND).

  17. If the error in Field 0202 causes an underprint, send TPNC 90.

    1. If the change is due to a reduction in the gift amount because the incomplete gift was improperly included, state "While an incomplete gift should be reported on Form 709, it should not be included in the amount of this year's gifts. We have adjusted your return accordingly."

    2. If the change is due to lack of taxpayer response to the incomplete gift, state "Since you did not verify the nature of the gift you described as incomplete, we have included the gift and adjusted your return accordingly."

  18. SPECIAL TO TAX YEAR 1988 - The Annual Exclusion for non-citizen spouses prior to 198807 was $10,000, and was increased on July 13, 1988, to $100,000. If a return is received for this tax year, manually verify the tax calculation and enter the corrected total in Field 03MCT (Manually Corrected Tax). See Error Code 480 for details.

3.12.263.15.23.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period."

    2. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    3. Any previously-assigned TPNCs.

3.12.263.15.24  (01-01-2009)
Error Code 420

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    0201 Total Gifts Current Amount
    02A Gifts Attributable to Spouse
    02B Balance After Spouse Amount
    >>>> Balance After Spouse Amount (Computer)
    02C Gifts Included from Spouse
    02D Total Gifts Amount
    >>>> Total Gifts Amount (Computer)
    0202 Annual Exclusions
    >>>> Annual Exclusions (Computer)
    0203 Total Included Gifts Amount
    >>>> Total Included Gifts Amount (Computer)

3.12.263.15.24.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.24.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. Field 0203 is computed by subtracting Field 0202 (Line 2) from Field 0201 (Line 1). (On tax year 2002 and prior year returns, this field was transcribed from Line 7, Part 3, Page 2, Schedule A and was computed by subtracting Line 6 from Line 5.)

  3. Compare the screen against the return. Check for errors in Fields 0201, 0202, and 0203 and issue the appropriate TPNC if the errors were taxpayer errors.

    1. If the taxpayer filed a tax year 2008 return on a prior year version of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, enter the amounts from Lines 5 and 6 into Fields 0201 and 0202, respectively.

    2. If the taxpayer filed his tax year 2002 or prior year return on a prior year version of Form 709, GTSEC 02 and enter the amounts from Lines 2, 3, 4, and 5, into Fields 02A, 02B, 02C, and 02D, respectively. (These lines will total Field 0203.)

  4. If the error in Field 0203 causes an underprint, send TPNC 90.

    1. If the change is due to a reduction in the gift amount because the incomplete gift was improperly included, state "While an incomplete gift should be reported on Form 709, it should not be included in the amount of this year's gifts. We have adjusted your return accordingly."

    2. If the change is due to lack of taxpayer response to the incomplete gift, state "Since you did not verify the nature of the gift you described as incomplete, we have included the gift and adjusted your return accordingly."

3.12.263.15.24.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period"

    2. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    3. Any previously-assigned TPNCs.

3.12.263.15.25  (01-01-2009)
Error Code 424

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01FSI Foreign Spouse Indicator
    0204 Gifts of Interest Amount
    0205 Exclusion Attributable to Gifts
    0206 Marital Deduction
    >>>> Marital Deduction (Computer)

3.12.263.15.25.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.25.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. Field 0206 (Marital Deductions) is transcribed from Line 6, Part 4, Page 3 (OR Line 10, Part 3, Page 2 (Schedule A) on tax year 2002 and prior year returns). It is computed by subtracting Field 0205 from Field 0204 (OR, by subtracting Line 9 from Line 8 on tax year 2002 and prior year returns).

  3. Compare the displayed fields with the return and overlay the screen with the correct entries.

    1. If an entry is present in Field 0206, and no entry is present in Field 0204, enter Field 0206 amount in Field 0204.

    2. If there is no entry present in Field 0204, an amount is present in Field 0205, and zero, blank or negative is present in Field 0206, delete Field 0205.

    3. If Fields 0206 or 0208 underprint, check for transcription errors in Fields 0204, 0205, and 0206.

    4. If an error in Field 0206 causes an underprint, send TPNC 42.

  4. If an entry is present for a gift given to a spouse who was not a U.S. citizen at the time of the gift, delete the entry from Field 0204. See IRM 3.12.263.14.2.17, Field 01FSI-Foreign Spouse Indicator, to determine if the spouse was not a U.S. citizen. If the error in Field 0202 causes an underprint, send TPNC 42 and/or 90.

    Caution:

    Field 01TND must be correct before TPNC 90 can be sent. Suggested wording: "An error was made in computing your annual exclusion. Your Unified Credit has been adjusted accordingly."

3.12.263.15.25.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 42—"We found an error in the computation of the marital deduction on Schedule A."

    2. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    3. Any previously-assigned TPNCs.

3.12.263.15.26  (01-01-2009)
Error Code 428

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0206 Marital Deductions
    >>>> Marital Deductions (Computer)
    0207 Charitable Deductions
    0208 Total Deductions
    >>>> Total Deductions (Computer)

3.12.263.15.26.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.26.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. This field is transcribed from Line 8, Part 4, Page 3 (Schedule A) for 2008 (and on tax year 2002 and prior year Forms 709, United States Gift (and Generation-Skipping Transfer) Tax Returns, Line 12, Part 3, Page 2 (Schedule A)). Line 8 is computed by adding Line 6 (Field 0206) and Line 7 (Field 0207) (or, Lines 10 and 11 on tax year 2002 and prior year Forms 709).

  3. If an error in Field 0206 causes an underprint, send TPNC 42.

  4. If the error in Field 0208 causes an underprint, send TPNC 79.

3.12.263.15.26.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 42—"We found an error in the computation of the marital deduction on Schedule A."

    2. TPNC 79—"We found an error in the computation of the total deductions amount on Page 3, Part 4, Line 8."

    3. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    4. Any previously-assigned TPNCs.

3.12.263.15.27  (01-01-2009)
Error Code 432

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0203 Total Included Gifts Amount
    >>>> Total Included Gifts Amount (Computer)
    0208 Total Deductions
    >>>> Total Deductions (Computer)
    0209 Balance After Deductions
    >>>> Balance After Deductions (Computer)

3.12.263.15.27.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.27.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. Field 0209 is transcribed from Line 9, Part 4, Page 3 (Schedule A) (OR Line 13, Part 3, Page 2 (Schedule A) on tax year 2002 and prior year returns. It is computed by subtracting Field 0208 (Line 8) from Field 0203 (Line 3) (OR, on tax year 2002 and prior year returns, Line 12 from Line 7).

  3. If the error in Field 0209 causes an underprint, send TPNC 80.

    Note:

    If the taxpayer has figured Field 0209 to a negative amount, which will generate as a positive amount, delete the entry.

3.12.263.15.27.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period"

    2. TPNC 79—"We found an error in the computation of the total deductions amount on Page 3, Part 4, Line 8."

    3. TPNC 80—"We found an error in the computation of the amount on Page 3, Part 4, Line 9."

    4. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    5. Any previously-assigned TPNCs.

3.12.263.15.28  (01-01-2009)
Error Code 436

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0209 Balance After Deductions
    >>>> Balance After Deductions (Computer)
    0210 Generation-Skipping Transfer Taxes Payable
    0211 Taxable Gifts (Balance After GST Amount)
    >>>> Taxable Gifts (Balance After GST Amount) (Computer)

3.12.263.15.28.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.28.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. Field 0211 (Taxable Gifts (Balance After GST) Amount) is transcribed from Line 11, Page 3, Part 4 (Line 15, Part 3, Page 2 on tax year 2002 and prior year ( Form 709, United States Gift (and Generation-Skipping Transfer) Tax Returns. It is computed by adding Field 0209 (Line 9) and Field 0210 (Line 10) (OR, on tax year 2002 and prior year returns, by adding Lines 13 and 14). This amount is carried forward to Page 1, Part 2, Line 1 (Field 0301).

  3. Compare the screen against the return. Check for transcription errors in Fields 0209, 0210 and 0211 and correct as appropriate. Issue the appropriate TPNC as listed below.

3.12.263.15.28.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period"

    2. TPNC 80—"We found an error in the computation of the amount on Page 3, Part 4, Line 9."

    3. TPNC 81—"We found an error in the computation of taxable gifts Page 3, Part 4, Line 11."

    4. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    5. Any previously-assigned TPNCs.

3.12.263.15.29  (01-01-2009)
Error Code 440

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0209 Balance After Deductions
    >>>> Balance After Deductions (Computer)
    0210 Generation-Skipping Transfer Taxes Payable
    0211 Taxable Gifts (Balance After GST Amount)
    >>>> Taxable Gifts (Balance After GST Amount) (Computer)
    0301 Current Taxable Gifts
    >>>> Current Taxable Gifts (Computer)

3.12.263.15.29.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.29.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. If Pages 2 or 3 are missing, correspond. If no reply is received, enter the amount from Field 0301 into Fields 0201, 0203, 0209, and 0211. If information is received from taxpayer, process accordingly.

  3. Field 0301 (Current Taxable Gifts) is carried over from Field 0211 (Taxable Gifts (Balance After GST) Amount), which is transcribed from Line 11, Part 4, Part 3 (Page 2, Part 3, Line 15 for tax year 2002 and prior year ( Form 709, United States Gift (and Generation-Skipping Transfer) Tax Returns). Both fields are computed by adding Field 0209 and Field 0210.

  4. If an error in Field 0301 causes an underprint, send TPNC 10 and/or 81. TPNC 41 should also be sent.

3.12.263.15.29.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period"

    2. TPNC 41—"We found an error in the computation of the Unified Credit amount."

    3. TPNC 80—"We found an error in the computation of the amount on Page 3, Part 4, Line 9."

    4. TPNC 81—"We found an error in the computation of taxable gifts Page 3, Part 4, Line 11."

    5. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    6. Any previously-assigned TPNCs.

3.12.263.15.30  (01-01-2009)
Error Code 444

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0301 Current Taxable Gifts
    >>>> Current Taxable Gifts (Computer)
    0302 Prior Taxable Gifts
    0303 Total Taxable Gifts
    >>>> Total Taxable Gifts (Computer)

3.12.263.15.30.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.30.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. Field 0303 (Total Taxable Gifts) is transcribed from Line 3, Page 1, Part 2, and is computed by adding Field 0301 and Field 0302.

  3. Be certain the correct tax period is entered in Field 01TXP before making any correction or sending any TPNC. Issue the appropriate TPNC as listed below.

  4. If the error in Field 0303 causes an underprint, send either TPNC 10 or 81, as appropriate.

3.12.263.15.30.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period"

    2. TPNC 11—"We found an error in the computation of your total taxable gifts Page 1, Part 2, Line 3."

    3. TPNC 69—"We found an error in the total gift tax computation on Page 1, Part 2, Line 6, Balance."

    4. TPNC 81—"We found an error in the computation of taxable gifts Page 3, Part 4, Line 11."

    5. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    6. Any previously-assigned TPNCs.

3.12.263.15.31  (01-01-2009)
Error Code 446

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    CL Clear Code
    01TXP Tax Period
    01CCC Computer Condition Code
    0303 Total Taxable Gifts
    >>>> Total Taxable Gifts (Computer)
    0304 Total Tax Taxpayer (Current)
    >>>> Total Tax Taxpayer (Current) (Computer)
    0305 Total Tax Taxpayer (Prior)
    >>>> Total Tax Taxpayer (Prior) (Computer)
    0306 Balance of Gift Tax
    >>>> Balance of Gift Tax (Computer)
    03BTV Balance of Tax Verified

3.12.263.15.31.1  (01-01-2009)
Invalid Conditions

  1. The Tax Period is 197612 or prior, or

  2. Computer Condition Code "Y" is present.

3.12.263.15.31.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. Error Code 446 is intended for reviewing, verifying, and correcting of returns involving special tax rate computations or returns from prior tax periods which may require manual computations by ERS examiners. Field 01TXP is used to identify Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, received for specific prior years and the Computer Condition Code "Y" identifies Forms 709 taxpayers receiving a particular type of tax treatment or are eligible for special Gift Tax rates.

    Caution:

    Make sure the correct tax period was entered in Field 01TXP before issuing any TPNCs or making any corrections. For Tax Periods prior to 197712, see correction instructions in (8), below.

  3. Compare the return against Fields 0303, 0304, 0305, and 0306.

    1. Field 0303 (Total Taxable Gifts) is transcribed from Line 3, Page 1, Part 2, and is computed by adding Field 0301 and Field 0302. Compare the lines on the return against the screen display.

      Caution:

      Do not change the amount in Field 0303 (Line 3), if incorrect. If Line 3 is incorrect, leave working trail on document by placing an "X" to the left of the taxpayer's entry on the return.

    2. Field 0304 is transcribed from Line 4, Page 1, Part 2, and is the amount of tax on Line 3.

      1. See Exhibit 3.12.263-5 to determine whether the tax rate used was the correct one.

      2. If the Field 0304 was computed using the wrong tax, check the tax on the amount for Line 4 for the appropriate period. See Exhibit 3.12.263-5.

      3. Consult the tax tables for the appropriate tax period for the tax rate imposed on Line 3.

        Caution:

        Do not change the amount in Field 0304 (Line 4), if incorrect. If Line 4 is incorrect, leave working trail on document by placing an "X" to the left of the taxpayer's entry on the return.

    3. Field 0305 is transcribed from Line 5, Page 1, Part 2. It is computed by using the tax rates in effect for the tax period to calculate the tax on Line 2 (Field 0302). See Exhibit 3.12.263-5 to determine whether the tax rate used was the correct one.

      1. If the figure was computed using the wrong tax, check the tax on the amount for Line 2 for the appropriate period. See Exhibit 3.12.263-5.

      2. Consult the tax tables for the appropriate tax period for the tax rate on Line 2 and correct Field 0305.

        Note:

        Do not change the amount in Field 0305 (Line 5), if incorrect. If Line 5 is incorrect, leave working trail on document by placing an "X" to the left of the taxpayer's entry on the return.

  4. Field 0306 is transcribed from Line 6, Page 1, Part 2. It is computed by subtracting Field 0305 from Field 0304.

  5. If Field 0306 is correct, enter the manually computed amount in Field 03BTV.

  6. If there is an error in Field 0306, enter the manually computed amount in Field 03BTV.

    Note:

    If the taxpayer's figure was incorrect, when the math error code comes up, send TPNC to inform the taxpayer that "You incorrectly figured the tax on Line XX (enter corrected Line number) incorrectly. We figured the amount and have adjusted your return accordingly."

  7. IMPORTANT: If there is no tax on the return (i.e., either containing no line entries or tax data present on Lines 1 through 6), enter the Clear Code (CL).

    Note:

    The Clear Code was set up as a safeguard for working with non-taxable returns.

  8. Prior Year Returns (197612 and prior):

    1. Math verify the Schedule A to ensure the figures were computed correctly.

      Note:

      The taxpayer's Specific Exemption amount claimed is located on Line (h)(3), Schedule A. This exemption was used prior to the Unified Credit.

    2. Manually compute Lines 1 and 2, Page 1, (Field 0301 and Field 0302), to equal Line 3 (Field 0303).

    3. Manually compute tax amount on Line 3, Page 1, and Line 1, Page 1

    4. Manually compute the tax amount on Line 4, Page 1.

    5. Subtract Line 5 from Line 4 to equal the amount on Line 6 but enter the amount in Field 03BTV.

    6. If a quarterly tax return is received with a Tax Period 197012 to 198012, suspend, using Action Code 630. Attach routing slip and note "Return to originator" . For quarterly returns that have been combined onto a single return by Compliance Services, Estate and Gift Tax Campus Operation, verify that the total tax on the cumulative return is equal to the sum of the taxes on all of the quarterly returns. If the dollar amount of tax shown on the cumulative return is the same as the sum of the taxes on the quarterly returns, accept figures.

  9. Once the manual computations are completed and the entry was made into Field 03BTV, delete the "Y" from Field 01CCC.

3.12.263.15.32  (01-01-2009)
Error Code 448

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    0303 Total Taxable Gifts
    >>>> Total Taxable Gifts (Computer)
    0304 Total Tax Taxpayer (Current)
    >>>> Total Tax Taxpayer (Current) (Computer)

3.12.263.15.32.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.32.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. Field 0304 is transcribed from Line 4, Page 1, Part 2. Field 0304 (Line 4) is computed by using the tax rates in effect for the appropriate tax period to calculate the tax on Line 3 (Field 0303).

    1. If this figure was computed using the wrong tax, check the tax on the amount for Line 3 for the appropriate period. See Exhibit 3.12.263-5. Issue the appropriate TPNC if the taxpayer's entry on Line 4 was incorrect.

      Caution:

      Do not issue any TPNCs without first checking the Tax Period.

    2. If either or both Field 0303 or Field 0304 underprinted, verify the amounts against the return and the tax amount on Line 3. Line 3 is the total of Lines 1 and 2 (Fields 0301 and 0302). Issue the appropriate TPNC if either of the taxpayer's entries was incorrect.

  3. If the error in Field 0304 caused an underprint, send TPNC 12 and TPNC 41.


More Internal Revenue Manual