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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 22. Employee Plan Excise Tax Returns (Cont. 4)

3.12.22  Employee Plan Excise Tax Returns (Cont. 4)

3.12.22.3 
Form 5330 Sections

3.12.22.3.8 
Section 04 and Section 05 Form 5330

3.12.22.3.8.11 
Field 05PCI Prohibitive Correction Indicator

3.12.22.3.8.11.1  (01-01-2009)
Field 05PCI Invalid Conditions

  1. Field 05PCI will error if entries are other than:

    • 1 - Yes box checked

    • 2 - No box checked

    • 3 - N/A

      Note:

      An entry of "3" is not currently being used.

  2. Field 05PCI is not present and Tax on 4975(a) (0503) contains an entry greater than zero.

3.12.22.3.8.11.2  (01-01-2009)
Field 05PCI Correction Procedures

  1. Correct coding and transcription for Fields 0503 and 05PCI.

  2. If no box is checked but the filer completed Schedule C, Line 5 giving an explanation of how each transaction listed in Schedule C, Line 2 was corrected, check the YES box and enter a 1 in 05PCI.

  3. If Schedule C, Line 5 is not completed for all transactions listed in Schedule C, Line 2, SSPND 211 and initiate correspondence for the missing information.

  4. If there is "no reply" to correspondence, enter a "2" in Field 05PCI.

    Note:

    If the amount in Field 033A is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ do not correspond. Enter a "2" in Field 05PCI.

3.12.22.3.8.12  (01-01-2009)
Field 0503V Verify

  1. This is a 13 digit numeric field that may be negative.

  2. This field is used:

    • when neither the tax per taxpayer nor the tax per computer is correct or

    • when the taxpayer has more than twelve prohibited transactions.

3.12.22.3.8.12.1  (01-01-2009)
Field 0503V Invalid Conditions

  1. Field 0503V is not numeric.

3.12.22.3.8.12.2  (01-01-2009)
Field 0503V Correction Procedures

  1. Correct coding and transcription errors.

  2. If your calculation matches the taxpayer's entry on Schedule C, Line 3, enter this amount in Field 0503V and delete all entries in Fields 04PD through 0512X. This will allow the computer to accept the entry in 0503V.

  3. If your calculation does not match the taxpayer's entry on Schedule C, Line 3 , delete all entries in Fields 04PD through 0512X. Enter your calculated amount in Field 0503V.

3.12.22.3.9  (01-01-2009)
Section 06 Form 5330

  1. Section 06 is located on Form 5330, Schedule D. This section must be present if there is an entry in Field 038A. If Section 06 generates as a missing section, determine if the filer has entered the tax amount on the wrong line on page 1. If the filer has not entered the tax amount on the wrong line, enter the amount from page 1, Line 8a into Field 06L2.

  2. The following fields are contained in Section 06:

    Field POS FIELD NAME FORM LINE 3
    06L1 13 Accumulated Funding Deficiency Schedule D Line 1
    06L2 13 Tax on 4971(a) Schedule D Line 2
    06L2V 13 4971 Verified Tax Amount None

  3. This section is invalid when CCC "G" is present.

    1. If this is a true amended return, delete Section 06.

    (4) This section is invalid when Section 04, Section 05, Section 09, Section 10, Section 11, Section 12 or Section 13 is present. Taxes for these sections cannot be reported on the same Form 5330 as the Section 4971(a) Tax.

    1. SSPND 351 and prepare Form 4227.

    2. Rejects will change the numbered Form 5330 to reflect the tax for only Section 4971(a) Tax and prepare a new Form 5330 for each of the remaining taxes.

    3. See IRM 3.12.22.2.7.1 for complete instructions on splitting taxes.

3.12.22.3.9.1  (01-01-2009)
Field 06L1 Accumulated Funding Deficiency

  1. Field 06L1 is located on Form 5330, Schedule D, Line 1.

  2. This field may be present.

3.12.22.3.9.1.1  (01-01-2009)
Field 06L1 Invalid Conditions

  1. Field 06L1 is not numeric.

  2. Entry is a negative amount.

3.12.22.3.9.1.2  (01-01-2009)
Field 06L1 Correction Procedures

  1. Correct coding and transcription errors.

3.12.22.3.9.2  (01-01-2009)
Field 06L2 Tax on 4971(a)

  1. Field 06L2 is located on Form 5330, Schedule D, Line 2.

  2. This field may be present.

  3. When present, must be numeric and may be negative.

3.12.22.3.9.2.1  (01-01-2009)
Field 06L2 Invalid Conditions

  1. Entry in Field 06L2 is not numeric.

  2. Field 06L2 does not equal the minimum deficiency amount (06L1) multiplied by 5% or 10% unless CCC "C" is present.

3.12.22.3.9.2.2  (01-01-2009)
Field 06L2 Correction Procedures

  1. Correct all coding and transcription errors in Section 06 fields.

  2. If the taxpayer made an error in transferring the total tax from Field 06L2 to 038A, or if the tax per taxpayer or computer is not correct, enter TPNC 17.

  3. If the taxpayer made an error in calculating the tax reported on Schedule D, enter TPNC 04.

3.12.22.3.9.3  (01-01-2009)
Field 06L2V Verify

  1. This is a 13 digit numeric field which may be negative.

  2. This field is used when neither the tax per taxpayer or tax per computer is correct.

3.12.22.3.9.3.1  (01-01-2009)
Field 06L2V Invalid Conditions

  1. Field 06L2V is not numeric.

3.12.22.3.9.3.2  (01-01-2009)
Field 06L2V Correction Procedures

  1. Before entering an amount in the verified field, verify all information is correct in Section 06. If information is missing correct from attachments. If fields cannot be corrected SSPND 211 and initiate correspondence. If no reply, delete all entries in Schedule D, calculate the amount for Schedule D, line 2 using 10% and enter in Field 06L2V.

  2. If your calculation matches the taxpayer's entry on Schedule D, Line 2, enter this amount in Field 06L2V and delete all entries in Fields 06L1 and 06L2. This will allow the computer to accept the entry in 06L2V.

3.12.22.3.10  (01-01-2009)
Section 07 Form 5330

  1. Section 07 is located on Form 5330, Schedule E. This section must be present if there is an entry in Field 039A unless CCC "C" is present. If Section 7 generates as a missing section, determine if the filer has entered the tax amount on the wrong line on page 1. If the filer has entered the tax amount on the correct line, enter the amount from page 1, Line 9A into Field 07TOT.

  2. The following fields are contained in Section 7:

    AFD POS FIELD NAME FORM LINE #
    071QS 13 1st Quarter Shortfall Line 1 1st Quarter
    072QS 13 2nd Quarter Shortfall Line 1 2nd Quarter
    073QS 13 3rd Quarter Shortfall Line 1 3rd Quarter
    074QS 13 4th Quarter Shortfall Line 1 4th Quarter
    071QC 13 1st Quarter Corrected Amount Line 2 1st Quarter
    072QC 13 2nd Quarter Corrected Amount Line 2 2nd Quarter
    073QC 13 3rd Quarter Corrected Amount Line 2 3rd Quarter
    074QC 13 4th Quarter Corrected Amount Line 2 4th Quarter
    071QN 13 1st Quarter Net Amount Line 3 1st Quarter
    072QN 13 2nd Quarter Net Amount Line 3 2nd Quarter
    073QN 13 3rd Quarter Net Amount Line 3 3rd Quarter
    074QN 13 4th Quarter Net Amount Line 3 4th Quarter
    07NET 13 Net Total Amount Line 3 Total
    07TOT 13 Tax on 4971(f)(1) Line 4

  3. This section is invalid when CCC "G" is present.

    1. If this is a true amended return, delete Section 7.

  4. This section is invalid when Sections 04, 05, 09, 10, 11, 12, or 13 is present. Taxes for these sections cannot be reported on the same Form 5330 as the Section 4971(f)(1) Tax.

    1. SSPND 351 and prepare Form 4227.

    2. Rejects will change the numbered Form 5330 to reflect the tax for only Section 4971(f)(1) Tax.

    3. Rejects will prepare a new Form 5330 for the remaining tax.

    4. See IRM 3.12.22.2.7.1 for complete instructions on splitting taxes.

3.12.22.3.10.1  (01-01-2009)
Field 071QS 1st Quarter Shortfall Through 074QS 4th Quarter Shortfall

  1. Field 071QS through 074QS is located on Form 5330, Schedule E, Line 1.

  2. These fields may be present and may be negative.

3.12.22.3.10.1.1  (01-01-2009)
Field 071QS Through 074QS Invalid Conditions

  1. Entry in Fields 071QS through 074QS are not numeric.

3.12.22.3.10.1.2  (01-01-2009)
Field 071QS Through 074QS Correction Procedures

  1. Correct coding and transcription errors.

3.12.22.3.10.2  (01-01-2009)
Field 071QC 1st Quarter Corrected Amount Through 074QC 4th Quarter Corrected Amount

  1. Field 071QC is located on Form 5330, Schedule E, Line 2.

  2. These fields may be present and may be negative.

3.12.22.3.10.2.1  (01-01-2009)
Field 071QC Through 074QC Invalid Conditions

  1. Entry in Fields 071QC through 074QC are not numeric.

3.12.22.3.10.2.2  (01-01-2009)
Field 071QC Through 074QC Correction Procedures

  1. Correct coding and transcription errors.

3.12.22.3.10.3  (01-01-2009)
Field 071QN 1st Quarter Net Amount Through 074QN 4th Quarter Net Amount

  1. Field 071QN through 074QN is located on Form 5330, Schedule E, Line 3.

  2. These fields may be present and may be negative.

3.12.22.3.10.3.1  (01-01-2009)
Field 071QN Through 074QN Invalid Conditions

  1. These fields may be present and may be negative.

3.12.22.3.10.3.2  (01-01-2009)
Field 071QN Through 074QN Correction Procedures

  1. Correct coding and transcription errors.

3.12.22.3.10.4  (01-01-2009)
Field 07NET Total Net Amount

  1. Field 07NET is located on Form 5330, Schedule E, Line 3, column (e).

  2. When present, must be numeric and may be negative.

3.12.22.3.10.4.1  (01-01-2009)
Field 07NET Invalid Conditions

  1. Entry in Field 07NET is not numeric.

  2. Field 07NET is present and does not equal the sum of 1st Quarter Net Amt (071QN) plus 2nd Quarter Net Amt (072QN) plus 3rd Quarter Net Amt (073QN) plus 4th Quarter Net Amt (074QN).

3.12.22.3.10.4.2  (01-01-2009)
Field 07NET Correction Procedures

  1. Verify all information is correct in Section 07. If information is missing correct from attachments. If fields cannot be corrected, SSPND 211 and initiate correspondence. If no reply, enter the amount from 039A on 07TOT, then calculate 039A divided by 10% and enter the amount on 07NET.

  2. If the calculated amount of Fields 071QN, 072QN, 073QN and 074QN does not equal Field 07NET, enter TPNC 22.

3.12.22.3.10.5  (01-01-2009)
Field 07TOT Section 4971(f)(1) Total Tax

  1. Field 07TOT is located on Form 5330, Schedule E, Line 4.

  2. When present, must be numeric and may be negative.

3.12.22.3.10.5.1  (01-01-2009)
Field 07TOT Invalid Conditions

  1. Entry in Field 07TOT is not numeric.

  2. Field 07TOT is present and does not equal the TOTAL NET AMT (07NET) multiplied by 10% (.10) or 5% (.05) for multiemployer plans, unless CCC "C" is present.

3.12.22.3.10.5.2  (01-01-2009)
Field 07TOT Correction Procedures

  1. Multiply Field 07NET by 10% (.10) or 5% (.05) for multiemployer plans, and enter amount in Field 07TOT.

  2. If the taxpayer made an error in transferring the total tax from Field 07TOT to Field 039A. Enter TPNC 23.

3.12.22.3.11  (01-01-2009)
Section 08 Form 5330

  1. Section 08 is located on Form 5330, Schedule F. This section must be present if there is an entry in Field 0310B or 0310C. If Section 08 generates as a missing section, determine if the filer has entered the tax amount on the wrong line on page 1. If the filer has not entered the tax amount on the wrong line, enter the amount from page 1, Line 10b into Field 081C. If an amount is present on Line 10c enter into Field 082D.

  2. The following fields are contained in Section 08:

    AFD POS FIELD NAME FORM LINE
    081C 13 Section 4971(g)(3) Tax Schedule F Line 1c
    082D 13 Section 4971(g)(4) Tax Schedule F Line 2d

  3. This section is invalid when CCC "G" is present.

    1. If this is a true amended return, delete Section 08.

  4. This section is invalid when Sections 04, 05, 09,10, 11, 12 or 13 is present. Taxes for these sections cannot be reported on the same Form 5330 as the Section 4971(g)(3) and 4971(g)(4)7 Taxes.

    1. SSPND 351 and prepare Form 4227.

    2. Rejects will change the numbered Form 5330 to reflect the tax for only Section 4971(g)(3) and 4971(g)(4)7 Taxes.

    3. Rejects will prepare a new Form 5330 for the remaining tax.

    4. See IRM 3.12.22.2.7.1 for complete instructions on splitting taxes.

3.12.22.3.11.1  (01-01-2009)
Field 081C Section 4971(g)(3)

  1. Field 081C is located on Form 5330, Schedule F, Line 1c.

  2. When present must be numeric and may be negative.

3.12.22.3.11.1.1  (01-01-2009)
Field 081C Invalid Conditions

  1. Entry in Field 081C is not numeric.

  2. Field 0310B is present and Field 081C is blank

3.12.22.3.11.1.2  (01-01-2009)
Field 081C Correction Procedures

  1. Correct coding and transcription errors.

  2. If an amount is present in Field 0310B, and Field 081C is blank, enter amount from Field 0310B to Field 081C.

3.12.22.3.11.2  (01-01-2009)
Field 082D 4971(g)(4) Tax

  1. Field 082D is located on Form 5330, Schedule F, Line 2d

  2. When present must be numeric and may be negative.

3.12.22.3.11.2.1  (01-01-2009)
Field 082D Invalid Conditions

  1. Entry in Field 082D is not numeric.

  2. Field 0310C is present and Field 082D is blank.

3.12.22.3.11.2.2  (01-01-2009)
Field 082D Correction Procedures

  1. Correct coding and transcription errors.

  2. If an amount is present in Field 0310C, and Field 082D is blank, enter amount from Field 0310C to Field 082D.

3.12.22.3.12  (01-01-2009)
Section 09 Form 5330

  1. Section 09 is located on Form 5330, Schedule G.

  2. This section must be present if there is an entry in Field 0311. If Section 09 generates as a missing section, determine if the filer has entered the tax amount on the wrong line on page 1. If the filer has not entered the tax amount on the wrong line, enter the amount from page 1, Line 11 into Field 09L4.

  3. The following fields are contained in Section 09:

    AFD POS FIELD NAME FORM LINE #
    09L2 4 Year When Excess Fringe Paid Schedule G Line 2
    09L3 13 Excess Fringe Benefits Schedule G Line 3
    09L4 13 Tax on 4977 Schedule G Line 4

  4. This section is invalid when CCC "G" is present.

    1. If this is a true amended return, delete Section 09.

  5. This section is invalid when Sections 04, 05, 06, 07, 08, 10, 11, 12 or 13 is present. Taxes for these sections cannot be reported on the same Form 5330 as the Section 4977 Tax.

    1. SSPND 351 and prepare Form 4227.

    2. Rejects will change the numbered Form 5330 to reflect the tax for only Section 4977 Tax.

    3. Rejects will prepare a new Form 5330 for the remaining tax.

    4. See IRM 3.12.22.2.7.1 for complete instructions on splitting taxes.

3.12.22.3.12.1  (01-01-2009)
Field 09L2 Year When Excess Fringe Paid

  1. Field 09L2 is located on Form 5330, Schedule G. Line 2.

  2. May be present.

3.12.22.3.12.1.1  (01-01-2009)
Field 09L2 Invalid Conditions

  1. Entry is not in YYYY format.

  2. Date is earlier than 1969 or later than current year.

  3. Field 09L2 is not present and Field 09L4 contains an entry greater than zero.

3.12.22.3.12.1.2  (01-01-2009)
Field 09L2 Correction Procedures

  1. Correct coding and transcription errors using attachments if needed.

  2. If more than one date is present, edit and input earliest date.

3.12.22.3.12.2  (01-01-2009)
Field 09L3 Excess Fringe Benefits

  1. Field 09L3 is located on Form 5330, Schedule G, Line 3.

  2. This field may be present.

  3. When present, must be numeric.

3.12.22.3.12.2.1  (01-01-2009)
Field 09L3 Invalid Conditions

  1. Field 09L3 is not numeric.

3.12.22.3.12.2.2  (01-01-2009)
Field 09L3 Correction Procedures

  1. Correct coding and transcription errors.

3.12.22.3.12.3  (01-01-2009)
Field 09L4 Tax on 4977

  1. Field 09L4 is located on Form 5330, Schedule G, Line 4.

  2. This field may be present.

  3. This is a numeric field that may be negative.

3.12.22.3.12.3.1  (01-01-2009)
Field 09L4 Invalid Conditions

  1. Field 09L4 is not numeric.

  2. Field 09L4 does not equal the Excess Fringe Benefits amount (09L3) multiplied by 30% (.30) unless CCC "C" is present.

3.12.22.3.12.3.2  (01-01-2009)
Field 09L4 Correction Procedures

  1. Correct coding and transcription errors for Field 0311 and Schedule G.

  2. If the taxpayer made an error in transferring the total tax from Field 09L4 to 0311, enter TPNC 18.

  3. If the filer made an error calculating tax on Schedule G (Section 09), enter TPNC 05.

  4. If all fields were transcribed correctly, SSPND 211 and initiate correspondence for the missing information. If no reply, enter the tax year of the filer in 09L2.

    Note:

    If Field 01CCC contains "C" or tax in Field 09L4 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ do not correspond. Enter the tax year of the filer.

3.12.22.3.13  (01-01-2009)
Section 10 Form 5330

  1. Section 10, 4979 Tax is located on Form 5330, Schedule H. This section must be present if there is an entry in Field 0313. If Section 10 generates as a missing section, determine if the filer has entered the tax amount on the wrong line on page 1. If the filer has entered the tax amount on the wrong line, enter the amount from page 1, Line 13 into Field 10L2 and compute Field 10L1 by dividing 10L2 by 10%.

  2. The following fields are contained in Section 10:

    AFD POS FIELD NAME FORM LINE #
    10L1 13 Excess Contributions Schedule H Line 1
    10L2 13 Tax on 4979 Schedule H Line 2

  3. This section is invalid when CCC "G" is present.

    1. If this is a true amended return delete Section 10.

  4. This section is invalid when Sections 04, 05, 06, 07, 08, 09, 11 12, or 13 is present. Taxes for these sections cannot be reported on the same Form 5330 as the Section 4979 Tax.

    1. SSPND 351 and prepare Form 4227.

    2. Rejects will change the numbered Form 5330 to reflect the tax for only Section 4979 Tax.

    3. Rejects will prepare a new Form 5330 for the remaining tax.

    4. See IRM 3.12.22.2.7.1 for complete instructions on splitting taxes.

3.12.22.3.13.1  (01-01-2009)
Field 10L1 Excess Contributions

  1. Field 10L1 is located on Form 5330, Schedule H, Line 1.

  2. This field may be present.

  3. This is a numeric field that may be negative.

3.12.22.3.13.1.1  (01-01-2009)
Field 10L1 Invalid Conditions

  1. Entry in Field 10L1 is not numeric.

3.12.22.3.13.1.2  (01-01-2009)
Field 10L1 Correction Procedures

  1. Correct coding and transcription errors.

3.12.22.3.13.2  (01-01-2009)
Field 10L2 Tax On 4979

  1. Field 10L2 is located on Form 5330, Schedule H, Line 2.

  2. This is a numeric field that may be negative.

  3. This field may be present.

3.12.22.3.13.2.1  (01-01-2009)
Field 10L2 Invalid Conditions

  1. Entry in Field 10L2 is not numeric.

  2. Field 10L2 does not equal the Excess Contributions amount (10L1) multiplied by 10% (.10) unless CCC "C" is present.

3.12.22.3.13.2.2  (01-01-2009)
Field 10L2 Correction Procedures

  1. Correct coding and transcription errors.

  2. If the taxpayer made an error in transferring the total tax from Field 10L2 to 0313, enter TPNC 19.

  3. If the taxpayer made an error in calculating tax on Schedule H (Section 10), enter TPNC 06.

  4. Verify all information is correct in Section 10. If information is missing correct from attachments. If fields cannot be corrected SSPND 211 and initiate correspondence. If no reply, enter the amount on 0313 on 10L2, then calculate 0313 divided by 10% and enter that amount on 10L1.


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