IRM 3.12.2 — Individual Master File Error Resolution General Instructions

# Part 3. Submission Processing

Chapter 12. Error Resolution Section 2. Individual Master File Error Resolution General Instructions 3.12.2 Individual Master File Error Resolution General Instructions Manual Transmittal October 27, 2025 Purpose (1) This transmits revised IRM 3.12.2, Error Resolution Individual Master File General Instructions. Material Changes (1) IRM 3.12.2.1.5(3) Identified the error codes processed using the FixERS tool. IPU 25U0152 issued 01-31-2025. (2) IRM 3.12.2.2(1) Updated the list of topics covered in this subsection. IPU 25U0005 issued 01-03-2025. (3) IRM 3.12.2.2.1 Added information on the use of Error Resolution System (ERS) in processing Form 1040. (4) IRM 3.12.2.2.4 Expanded and clarified the procedures in Correction Requirements. (5) IRM 3.12.2.2.9(5) Added a correction procedure when multiple error conditions display in an error code. IPU 25U0005 issued 01-03-2025 (6) IRM 3.12.2.2.12(4) Removed the reference to converting to Form 1040. IPU 25U3209 issued 04-24-2025. (7) IRM 3.12.2.2.12(7) Added a condition for Filing Status 2 returns when both taxpayers are deceased. IPU 25U0152 issued 01-31-2025. (8) IRM 3.12.2.2.12(7) Updated the Letter 12C paragraph for secure messaging from o to j, and the fax paragraphs from h - m to k - p. (9) IRM 3.12.2.2.12(9) Added the subsection title to the IRM 3.12.37 citation. IPU 25U3209 issued 04-24-2025. (10) IRM 3.12.2.2.12.1(3) Clarified procedures for Second Correspondence for specified error codes (11) IRM 3.12.2.2.12.2 Inserted a subsection with information on Form 5260, Quick Note. (12) IRM 3.12.2.3.3(3) Added a note regarding the reporting of income identified as nonqualified plans on Form W-2. IPU 25U0392 issued 03-18-2025. (13) IRM 3.12.2.3.4(2) Revised the instructions to clarify that Rejects will void the return and route for non-master file processing. IPU 25U3209 issued 04-24-2025. (14) IRM 3.12.2.3.7(2) Updated the list of forms and attachments that require processing as international returns, IPU 25U3323 issued 05-22-2025. (15) IRM 3.12.2.3.11 Expanded information on Natural Disaster and Emergency Relief Program. (16) IRM 3.12.2.3.12(2) Corrected the subsection in the IRM 3.12.37 citation, Transshipping Form 1040 for 1041 conversion. IPU 25U3209 issued 04-24-2025 (17) IRM 3.12.2.3.14(1) and (2) Updated procedures for processing prior-year returns. (18) IRM 3.12.2.3.17(7) Removed an incorrect identifying condition for scanned paper returns. IPU 25U0392 issued 03-18-2025. (19) IRM 3.12.2.3.18(1) c Added a clarification for signature on Form 1310 on paper returns only. IPU 25U3209 issued 04-24-2025. (20) IRM 3.12.2.4.1(1) Added new Field 01MUS, removed Field 01DSI and Field 01ABI (moved to Section 03), and dependent fields 01DN1 through 01CT4 (moved to Section 02). (21) IRM 3.12.2.4.3(1) Added instruction to correct coding and transcription errors here and in correction procedures subsections throughout this IRM. (22) IRM 3.12.2.4.3.2(2) Corrected an invalid condition for Field 01PS. IPU 25U0152 issued 01-31-2025. (23) IRM 3.12.2.4.3.4(1) and (5) Clarified procedures to correct secondary social security number (S-SSN). (24) IRM 3.12.2.4.3.5(5) Clarified procedures for name lines with suffixes like JR, SR, or Roman numerals. (25) IRM 3.12.2.4.3.6(4) Revised procedures to search for adequate documentary evidence before entering the second name line on decedent returns, IPU 25U3323 issued 05-22-2025. (26) IRM 3.12.2.4.3.10 Inserted a subsection for new Field 01MUS, Main Home in the United States Indicator. (27) IRM 3.12.2.4.3.12(2) and (3) Added Special Processing Code 6 and X, and revised procedures to correct Field 01SPC. (28) IRM 3.12.2.4.3.14 Expanded correction procedures for Field 01CCC. (29) IRM 3.12.2.4.3.16(1), (11) and (12) Updated received date information for TY25 returns. (30) IRM 3.12.2.4.3.17 Moved Field 01FPC subsection to reflect the order of fields on Section 01 screen display, added Forms Processing Code F, and expanded correction procedures for Field 01FPC. (31) IRM 3.12.2.4.3.18(3) and (4) Added Return Processing Codes O and W, and revised procedures to correct Field 01RPC. (32) IRM 3.12.2.4.3.19(2) Added Audit Codes M and N to the list of valid values for Field 01ACD. (33) IRM 3.12.2.4.3.20(1) Updated the location of Field 01PEF on TY25 returns. (34) IRM 3.12.2.4.3.21(1) Clarified the location of the Digital Asset Code for Field 01DAC. (35) IRM 3.12.2.5 Revised the title and contents of Section 02: Added new Fields 02MT4, 02RC1/2/3/4, 02US1/2/3/4, and 02SD1/2/3/4. Added dependent fields 02DN1/2/3/4, 02DS1/2/3/4, and 02CT1/2/3/4 (moved from Section 01). Removed Fields 02CD1 through 0208, 02W2A, and 02W2B (moved to Section 88). Added Field 02MFS (moved from Section 43). (36) IRM 3.12.2.5.3.4 Added a subsection for new Field 02MT4, More than 4 Dependents Indicator. (37) IRM 3.12.2.5.3.7 Added a subsection for new Fields 02RC1, 02RC2, 02RC3, and 02RC4, Dependent 1/2/3/4 Relationship Code. (38) IRM 3.12.2.5.3.8 Added a subsection for new Fields 02US1, 02US2, 02US3, and 02US4, Dependent 1/2/3/4 Residency Code. (39) IRM 3.12.2.5.3.9 Added a subsection for new Fields 02SD1, 02SD2, 02SD3, and 02SD4, Dependent 1/2/3/4 Student Disabled Code. (40) IRM 3.12.2.5.3.11 Added a subsection for Field 02MFS, Married Filing Separately HOH Qualifying Indicator (moved from Section 43). (41) IRM 3.12.2.5.3.13 Revised Field 02NC> information to reflect updated TY25 procedures. (42) IRM 3.12.2.6.1(1) Added Field 03DSI, Dependency Status Indicator (moved from Section 01), Field 03ABI, Age/Blind Indicators (moved from Section 01), Field 03OEI, ACTC Opt Out Election Indicator (moved from Section 47), and new Field 03RAC, Refundable Adoption Credit, and updated line numbers on TY25 Form 1040. (43) IRM 3.12.2.6.2(1) Added an exception for Fields 03TPN, 03PC and 03PT to the invalid conditions for Section 03 fields. (44) IRM 3.12.2.6.3.14(1) Updated the TY25 location of Field 03CGL, Schedule D Profit or Loss, to line 7a of Form 1040. (45) IRM 3.12.2.6.3.18(1) Updated the TY25 location of Field 03AGI, Adjusted Gross Income, to line 11a of Form 1040. (46) IRM 3.12.2.6.3.19 Added a subsection for Field 03DSI, Dependency Status Indicator (moved from Section 01). (47) IRM 3.12.2.6.3.20 Added a subsection for Field 03ABI, Age/Blind Indicators (moved from Section 01). (48) IRM 3.12.2.6.3.26(3) Updated the reference to Error Code (EC) 299 instead of EC 290, here and throughout this IRM. (49) IRM 3.12.2.6.3.32(1) Updated the TY25 location of Field 03EIC to line 27a of Form 1040. (50) IRM 3.12.2.6.3.33 Added a subsection for Field 03OEI, Additional Child Tax Credit (ACTC) Opt Out Election Indicator (moved from Section 47). (51) IRM 3.12.2.6.3.36 Moved the subsection for Field 03PSC to reflect the correct screen display order in Section 03. (52) IRM 3.12.2.6.3.37 Added a subsection for new Field 03RAC, Refundable Adoption Credit, for TY25 only. (53) IRM 3.12.2.6.3.46 Moved the subsection for Field 03PC to reflect the correct screen display order in Section 03. (54) IRM 3.12.2.6.3.47(2) Updated the format for a preparer TIN in Field 03PT. (55) IRM 3.12.2.7.1(1) Added the following new fields to Section 04 Error Record Format, transcribed from new Schedule 1-A: Field 04TQT, Total Qualified Tips Income Field 04DQT, Deduction for Qualified Tips Field 04QOT, Total Qualified Overtime Compensation Income Field 04DOT, Deduction for Qualified Overtime Compensation Field 04LIP, Total Car Loan Interest Paid Field 04LID, Car Loan Interest Deduction Field 04DFS, Deduction for Seniors (56) IRM 3.12.2.7.3.1(1) Added clarification that the amount in Field 04KAM is not included in the additional income total on Schedule 1, IPU 25U3323 issued 05-22-2025. (57) IRM 3.12.2.7.3.3(2) Updated the tax years that apply if the date on Schedule 1, line 2b is after December 31, 2018. IPU 25U3209 issued 04-24-2025. (58) IRM 3.12.2.7.3.20(2) Updated the tax years that apply if the date on Schedule 1, line 19c, is after December 31, 2018. IPU 25U3209 issued 04-24-2025. (59) IRM 3.12.2.7.3.26, Added a subsection for new Field 04TQT, Total Qualified Tips Income. (60) IRM 3.12.2.7.3.27, Added a subsection for new Field 04DQT, Deduction for Qualified Tips. (61) IRM 3.12.2.7.3.28, Added a subsection for new Field 04QOT, Total Qualified Overtime Compensation Income. (62) IRM 3.12.2.7.3.29, Added a subsection for new Field 04DOT, Deduction for Qualified Overtime Compensation. (63) IRM 3.12.2.7.3.30, Added a subsection for new Field 04LIP, Total Car Loan Interest Paid. (64) IRM 3.12.2.7.3.31, Added a subsection for new Field 04LID, Car Loan Interest Deduction. (65) IRM 3.12.2.7.3.32, Added a subsection for new Field 04DFS, Deduction for Seniors. (66) IRM 3.12.2.8.1(1) Removed Field 05AMC, Form 8910 Alternative Motor Vehicle Credit. (67) IRM 3.12.2.8.3.15(1) Revised the tax period for Field 05FHB as TY24 and prior. (68) IRM 3.12.2.8.3.23(1) Revised the tax period for Field 05EPR as TY24 and later. (69) IRM 3.12.2.8.3.32(2) Updated the reference to EC 292 instead of EC 291. (70) IRM 3.12.2.8.3.33(2) Updated the reference to EC 298 instead of EC 299, here and throughout this IRM. (71) IRM 3.12.2.8.3.37(2) Updated the reference to EC 297 instead of 298, here and throughout this IRM. (72) IRM 3.12.2.8.3.48 Revised the tax period for Field 05EPA as TY23 and later. (73) IRM 3.12.2.9(2) Updated the information that direct deposit is allowed for current year and two previous tax years. (74) IRM 3.12.2.9.2 Updated the correction procedures if the only entry in Section 06 is a mark in the checking or savings box. (75) IRM 3.12.2.9.2.3(2) Added procedures when to enter C in Field 06TDA when direct deposit is being requested. (76) IRM 3.12.2.10.3.21(2) Clarified the conditions when Code and Edit will X line 16 on TY17 - TY13 returns. (77) IRM 3.12.2.11.3.3 Corrected the title of Field 08DIV and clarified that Code and Edit will edit the amount when Nominee Distributions are present on line 5 of Schedule B. (78) IRM 3.12.2.12.1(1) Revised the field names of Fields 0927A and 0927B, and added new Field 09PAL to Section 09 Error Record Format. (79) IRM 3.12.2.12.3.12(1) Added a list of field designators, field names, and transcription locations in correction procedures for this section, and throughout this IRM. (80) IRM 3.12.2.12.3.16 Added a subsection for new Field 09PAL, Passive Activity Losses Entry Indicator. (81) IRM 3.12.2.15.1(1) Added new Fields 1408, 14PAL, and 1443 to Section 14 Error Record Format. (82) IRM 3.12.2.15.3.8 Added a subsection for new Field 14PAL, Passive Activity Losses Entry Indicator. (83) IRM 3.12.2.17.3.10(3) Revised the conditions to use Field 17SIV on prior year returns. IPU 25U0392 issued 03-18-2025. (84) IRM 3.12.2.17.3.12(3) Moved the table of procedures to code Field 17MCD from IRM 3.12.2.17.3.12.1, and deleted that subsection. (85) IRM 3.12.2.19.1(1) Corrected the field names of Fields 2008 through 2021. (86) IRM 3.12.2.20.3.12(3) Added a clarification on the correct paragraph and fill-in to use on Form 6001. (87) IRM 3.12.2.21.1(1) Added new Field 221LB, Form 8864 Elective Payment or Transfer Registration Number, and new Field 221LF, Form 8864 Credit Transfer Election Amount, and removed Field 22IND, Consolidated Part III Indicator, and Field 221RG, Alternative Motor Vehicle Credit. (88) IRM 3.12.2.21.3.1(2) Deleted note regarding the combined total if multiple Parts III are present, here and throughout this IRM. (89) IRM 3.12.2.21.3.10(1) Listed all field designators and field names for Field 221AG through 221TG, including new Field 221LB, Form 8864 Elective Payment or Transfer Registration Number, and Field 221LF, Form 8864 Credit Transfer Election Amount. (90) IRM 3.12.2.22.3.2(1) Clarified instructions when Code and Edit will edit an amount for Field 23CHS. (91) IRM 3.12.2.22.3.3 (1) and (3) Clarified instructions when Code and Edit will edit Field 23DPI and revised an instruction to correct Field 23DPI. (92) IRM 3.12.2.22.3.5(2) Clarified the column to use when correcting the amount in Field 23TOT. (93) IRM 3.12.2.22.3.6 Added correction procedures for Field 23EPC. (94) IRM 3.12.2.24.3.1(2) Corrected the range of acceptable disaster declaration numbers on Form 4684. (95) IRM 3.12.2.27 Added Fields 29ENE, 2902, 2942, 2943, and 2944 to Section 29, and added subsections for each field. (96) IRM 3.12.2.30(2) Updated the investment income minimum amount for TY25 to file Form 8615. (97) IRM 3.12.2.31 Added a subsection for Form 8283 transcribed as new Section 36. (98) IRM 3.12.2.33 Updated the line numbers on Form 8839, Adoption Credit, for TY25. (99) IRM 3.12.2.34(1) Revised the descriptions of information reported on Form 8853. (100) IRM 3.12.2.36.1(1) Removed Field 43MFS, EIC Married Filing Separate Indicator (moved to Section 02). (101) IRM 3.12.2.37 Added the TY25 wage maximum and minimums on Schedule H. (102) IRM 3.12.2.38 Removed Field 47OEI, Additional Child Tax Credit Opt Out Election Indicator (moved to Section 03). (103) IRM 3.12.2.41 Added correction procedures for Form 4952 entries in Section 51. (104) IRM 3.12.2.43 Added correction procedures for Form 8880 entries in Section 54. (105) IRM 3.12.2.45 Removed information on Fields 5604A through 56BD3 deleted because the bond purchase program has been discontinued, and removed references to paper check being issued. (106) IRM 3.12.2.45.3.5 Revised procedures for Field 5604 to remove the entry when it displays as a field error. (107) IRM 3.12.2.46.3.1 Moved correction procedures for Field 57YAC to a subsection under IRM 3.12.2.46.3 from IRM 3.12.2.46.4. (108) IRM 3.12.2.46.3.2 Added correction procedures for Fields 5714, 5716, and 5718. (109) IRM 3.12.2.47 Reorganized the correction procedures for Section 58, Form 5405. (110) IRM 3.12.2.49 Reorganized the correction procedures for Section 63, Form 8958. (111) IRM 3.12.2.51 Removed the Section 66 field designators from the subsection titles of Form 8941 correction procedures. (112) IRM 3.12.2.52.3 Added correction procedures for Fields 6707, 6721 and 6723, and revised correction procedures for Field 6719. (113) IRM 3.12.2.53 Removed Section 68 procedures for Form 8910, and moved Section 69 procedures for Form 8936 and Form 8936 Schedule A. (114) IRM 3.12.2.53.3.6(4) Added an instruction to remove an invalid entry in Field 69VN1 or 69VN2. IPU 25U0392 issued 03-18-2025. (115) IRM 3.12.2.56.3.5(2) Updated Form 7204A description to include the amount on Schedule 1, line 3, for TY22 and later. (116) IRM 3.12.2.59 Added new Fields 75QPC, 7519B, 75OD1, 75OD2, 75EW1 through 75EW4, 7522A, 75WH1, 75WH2, 7524A, 7525A, 7525B, 75PC1, 75PC2, 75MEP, 7529B, 75HPW, 7529B, 7529D, 75HPW, 75BSB, 7529F, and 7532B, and revised Fields 7519F, 7520C, 7522C, 7523C, 7524C, 7525C, 7529C, and 7529E. (117) IRM 3.12.2.60.3.6 Added procedures for Field 76TOT, Total Form 965-A from Part IV. (118) IRM 3.12.2.61.3 Reorganized the correction procedures for Section 77, Schedule LEP or Form 9000. (119) IRM 3.12.2.64 Added procedures for new Section 88, Form 3471, for the fields that were moved from Section 02. (120) IRM 3.12.2.64.3.2 Added instructions to not enter a date in Field 88RPD when the correspondence was issued for Paragraph D only. (121) IRM 3.12.2.65.1(1) Added new Field 94RAV, Refundable Adoption Credit Verified Amount, to Section 94 Error Record Format. (122) IRM 3.12.2.65.3.19 Added a subsection for new Field 94RAV, Refundable Adoption Credit Verified. (123) IRM 3.12.2.65.3.26 Added a reference to EC 292 along with EC 291. (124) Exhibit 3.12.2-3 Added Return Processing Code W and the code explanation, and revised the code explanation of Return Processing Code O. (125) Exhibit 3.12.2-4 Updated the explanation of Special Processing Code H. IPU 25U0005 issued 01-03-2025. (126) Exhibit 3.12.2-4 Removed the tax year for Special Processing Code V as it only applies to MeF returns. IPU 25U0152 issued 01-31-2025. (127) Exhibit 3.12.2-4 Added Special Processing Codes X and 6, and updated other code explanations. (128) Exhibit 3.12.2-5 Added Forms Processing Codes E and F. (129) Exhibit 3.12.2-7 Added Unallowable Code 56, and updated other code explanations. (130) Exhibit 3.12.2-8 Added the credit reduction states for 2024. IPU 25U0005 issued 01-03-2025. (131) Exhibit 3.12.2-9 Added fill-in paragraph number 44 for Schedule A, line 11. IPU 25U3225 issued 04-29-2025. (132) Exhibit 3.12.2-9 Removed fill-in paragraph number 43 for Form 8936 Schedule A and renumbered former paragraph 44 to 43. (133) Exhibit 3.12.2-10 Deleted the exception for federally declared disaster as no longer applicable, IPU 25U3323 issued 05-22-2025. (134) Editorial changes have been made throughout this IRM including spelling, punctuation, removal and update of field names, naming of form changes, annual updates, corrected typos, plain language, updated error code references to current year programming, and form and schedule line numbers for TY25. Effect on Other Documents IRM 3.12.2, Individual Master File Error Resolution General Instructions, dated November 01, 2024 (effective January 1, 2025) is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs): 25U0005 dated 01-03-2025, 25U0152 dated 01-31-2025, 25U0392 dated 03-18-2025, 25U3209 dated 04-24-2025, 25U3225 dated 04-29-2025, and 25U3323 dated 05-22-2025. Audience Individual Master File (IMF) Error Resolution Departments, Taxpayer Services (TS) Submission Processing Centers Effective Date (01-01-2026) Scott Wallace Director, Submission Processing Taxpayer Services Division

# Program Scope and Objectives

3.12.2.1 (01-01-2023) Program Scope and Objectives Purpose: Internal Revenue Manual (IRM) 3.12.2 provides instructions for correcting errors identified by the Error Resolution System (ERS) during processing of Individual Master File (IMF) tax returns. Audience: These procedures apply to the Internal Revenue Service (IRS) employees who correct errors on tax returns in ERS including: Lead ERS Tax Examining Technicians and ERS Tax Examining Technicians. Policy Owner: The Director of Submission Processing oversees the policies in this IRM. Program Owner: The Code and Edit/ERS Section of the Return Processing Branch of Submission Processing is the program owner of this IRM. Primary Stakeholders: Submission Processing (SP) and Modernized e-File (MeF). Program Goals: Correct all errors identified by the Error Resolution System (ERS).

# Background

3.12.2.1.1 (11-27-2020) Background The Error Resolution System (ERS) is an online computer application used by tax examiners to correct errors identified on tax returns during Generalized Mainline Framework (GMF) processing in compliance with USC Title 26.

# Authority

3.12.2.1.2 (01-01-2023) Authority USC Title 26 provides authority by defining tax law and requirements. Internal Revenue Code (IRC) 6213(b) provides the authority for resolution of mathematical and clerical errors identified during processing of tax returns. Policy Statements for Submission Processing are contained in IRM 1.2.1.4, Policy Statements for Submission Processing Activities.

# Roles and Responsibilities

3.12.2.1.3 (01-01-2023) Roles and Responsibilities The SP Director monitors operational performance for the Submission Processing campuses. The Operations Manager monitors operational performance for their operation. The team manager/lead monitors performance and ensures employees have the tools to perform their duties. The team employees follow the instructions contained in this IRM and maintaining updated IRM procedures. Control clerks monitor the control of error documents. Inventory control procedures are described in IRM 3.12.37, Error Resolution, IMF General Instructions.

# Program Management and Review

3.12.2.1.4 (01-01-2023) Program Management and Review Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the ERS reports following procedures in IRM 3.30.124, Work Planning and Control - Campus Monitoring Reports. Program Effectiveness: The program goals are measured by the following reviews: Embedded Quality Submission Processing (EQSP) (individual quality review) Computer Assisted Review of ERS (CARE) is an online review of Taxpayer Notice Codes (TPNC) assigned by the ERS tax examiner during processing Balanced Measures Managerial reviews Annual Review: This IRM is updated and reviewed annually to ensure accuracy and promote consistent tax administration. Review and concurrence is performed by affected offices according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving the Internal Revenue Manual (IRM), prior to publishing.

# Program Controls

3.12.2.1.5 (01-01-2026) Program Controls All tax examiners must submit a request via the Business Entitlement Access Request System (BEARS). This request must be approved by management before the employee gains access to the Error Resolution System. Tax returns in ERS are worked on a first in first out (FIFO) basis as they are received from input systems through the General Mainline Framework (GMF). FixERS tool is to be run each day. Returns suspended with Action Code 484 by the FixERS tool are to be worked within two business days. FixERS tool currently processes MeF returns with the following error codes: 017, 029, 034, 073, 075, 189, 195, 196, 197, 198, 199, 214, 248, 280, 287, 289, 291, 297, 299, 302, 328, 329, 336, 337, 338, 342, 344, 357, and 601.

# Terms and Acronyms

3.12.2.1.6 (01-01-2023) Terms and Acronyms The list of terms and/or abbreviations used throughout this IRM are located in Exhibit 3.12.2-15.

# Related Resources

3.12.2.1.7 (01-01-2025) Related Resources Use the following required websites, job aids, and tools to complete the work: Resource Title IRM 3.11.3 - Contains coding and editing procedures for IMF tax returns Returns and Documents Analysis, Individual Income Tax Returns IRM 3.12.3 - Contains instructions for ERS Error Codes 001-750, No Reply returns, and Taxpayer Notice Code exhibit Error Resolution, Individual Income Tax Returns IRM 3.12.37 - Contains general instructions for suspense records, document control, inventories and management reports. IMF General Instructions Job Aid Book 2515-014 Error Resolution System (ERS) for Individual Master File Documents - Prior Year Job Aid Job Aid Book 2515-015 Error Resolution System (ERS) for Individual Master File Documents - Current Year Job Aid Job Aid Book 2515-019 Error Resolution System (ERS) for Individual Master File Documents - Job Aid for ERS Managers Document 7071 Name Control Job Aid for Individual Master File (IMF) Taxpayers

# General Information

3.12.2.2 (01-03-2025) General Information The general information contained in this subsection of the manual are: General Guidelines Organization of Text Correction Requirements Perfecting the Tax Return and Error Screen Display Command Codes Error Resolution System (ERS) Action Codes Revalidating with OLE Taxpayer Notice Code (TPNC) Computer Assisted Review of Error Resolution System (CARE) Computer Assisted Pipeline Review (CAPR) Correspondence Procedures Types of Errors

# Introduction

3.12.2.2.1 (01-01-2026) Introduction This IRM section provides instructions for Individual Master File (IMF) Error Resolution System (ERS) processing. The instructions in this manual are for correcting the following: Errors made by taxpayers and tax preparers Errors made by other IRS employees or IRS programming during return processing ERS is a real-time computer system used to correct errors detected during Generalized Mainline Framework (GMF) processing. All errors for the Form 1040 series returns are corrected on the terminal using ERS. ERS will place error records into the error inventory. The ERS error inventory consists of records that have failed specific validity, consistency, or math checks. Records are accessed by block DLN and remain in the complete block while being worked. When the error record displays on the computer screen, the tax examiner will take one of the following actions: Correct the displayed section or field errors. Suspend the document for more information or removal from pipeline processing. The instructions in this manual are for Form 1040, U.S. Individual Income Tax Return; Form 1040(SP), Form 1040-SR, and Form 1040-SR (SP). Form 1040A and Form 1040EZ were made obsolete in Tax Year 2018 (TY18); all Forms 1040A or 1040EZ must be converted to Form 1040 before processing. Form 1040-SR was introduced in Tax Year 2019 (TY19). The fields and line numbers of Form 1040-SR are identical to Form 1040 with a larger font size and expanded form length. Form 1040(SP) and Form 1040-SR(SP) are Spanish-language versions of Form 1040/1040-SR with the same fields and line numbers as Form 1040. All instruction for Form 1040 applies equally to Form 1040-SR, 1040(SP) and Form 1040-SR(SP). Form 1040-SR will be processed with Document Code 05 or 06 in the document locator number. ERS section and error code screen displays for all returns have been realigned to follow the layout of TY25 Form 1040. Fields in Sections 01 through 05 are aligned as follows: Section 01 - Entity portion of Form 1040 Section 02 - Revalidation indicator, dependents, and ID number penalty. Section 03 - Form 1040, line 1a through line 38, third party designee, and paid preparer information. Section 04 - Form 1040, Schedule 1 Section 05 - Form 1040, Schedules 2 and 3 Note: Prior year Form 1040 will follow the same format with field designators realigned according to TY25 Form 1040 layout.

# General Guidelines

3.12.2.2.2 (01-01-2025) General Guidelines Instructions in this manual are for a typical return. Apply the instructions as far as possible when a unique situation exists. Refer any unusual situations and complex cases to the lead tax examiner. Lines in this manual marked with # are for official use only and must not be disclosed. This manual is the main source of information for correcting the error record on the computer screen and the related return. Refer to IRM 3.12.2.1.7, Related Resources. Note: Use the instructions in other IRMs only when specifically instructed in this IRM to do so. When a conflict between any reference, job aid, or training material and this manual occurs, the manual instructions take precedence. Deviations from procedures in this IRM may be granted only in accordance with the policy set forth in IRM 1.11.2.2.3, When Procedures Deviate from the IRM.

# Organization of Text

3.12.2.2.3 (05-04-2017) Organization of Text This manual is organized so that correction procedures can be located quickly. All related procedures are contained in a single location, whenever possible. The text is organized as follows: General Information Special Procedures Field Errors (Priority III) Exhibits

# Correction Requirements

3.12.2.2.4 (01-01-2026) Correction Requirements Records will be placed into the error inventory or the workable suspense inventory for correction. Note: If your site is helping the primary site with MeF ERS 100 work, TE's will first need to use CC CMODE to access and update taxpayer records on another campus' database. Refer to IRM 3.12.2.3.17, Electronic Returns. ERS tax examiners (TE) access error blocks using CC GTREC with the block DLN. The first error document within the block displays with the highest priority error first. When the correction is made and transmitted for that error, the document is validity checked. Each error record must be completed before the next error record in the block can generate. When the screen message indicates that the error block is completed, the tax examiner enters another block DLN. You must do one of the following when the error record displays on the screen: Correct the displayed field error or displayed invalid conditions. Suspend the document for more information, using a three digit action code to identify the reason the return was unprocessable. Reject the document from pipeline processing. Note: If your site is assisting the primary site with MeF ERS 100 work, the helping site is required to issue the correspondence and use the primary site's signature code. All Unpostables, Entity, Accounting Function, Review or Reject function issues are the responsibility of the primary site. If a record needs to be reworked, it can be retrieved at any time on the same day using CC GTRECW. ERS screen display corrections may also include correcting errors in editing and transcription on the return. All ERS functions: Use all appropriate control listings. Work older error cases first. Resolve or suspend all error records within five work days.

# Perfecting the Tax Return and Error Screen Display

3.12.2.2.5 (01-01-2017) Perfecting the Tax Return and Error Screen Display The following information will be shown in the header portion of each error record on the error screen display: Document locator number (DLN) Social security number (SSN), IRS individual taxpayer identification number (ITIN), or IRS number (IRSN) Name control or check digits, if present Previously assigned taxpayer notice code(s)

# Document Locator Number

3.12.2.2.5.1 (01-01-2023) Document Locator Number The document locator number (DLN) is a unique number assigned to every return processed by the Automatic Data Processing (ADP) Systems. The DLN is used to control, identify and locate a document. Always make certain that the DLN on the error screen matches the DLN of the document before making any corrections to the screen display. See IRM 3.12.2.2.5.1.4, Mixed Data on Paper Returns. If there is an additional document in your block of work (e.g., the document does not have a DLN, or the DLN does not match the block of work), take it to the manager of the Control/Clerical team for resolution.

# Julian Date

3.12.2.2.5.1.1 (01-01-2025) Julian Date A Julian date is the numeric day of the year. Example: April 18, 2026, is Julian Date 108, the 108th day of 2026. The sixth, seventh and eighth digits of a DLN make up the Julian date.

# Sequence Number

3.12.2.2.5.1.2 (01-01-2017) Sequence Number The twelfth and thirteenth digits of the DLN are the sequence number. Returns in a block are numbered from "00" to "99" . The maximum number of returns in a numbered block is 100. Numbered returns in a block must stay in sequence number order.

# Missing Blocks/Returns

3.12.2.2.5.1.3 (01-01-2023) Missing Blocks/Returns If a block of work is missing, notify the manager of the Control/Clerical team. The manager will coordinate with the Data Conversion Control team and/or Accounting Data Control team to locate the missing block. If a document is missing from a block of work, take the entire block to your manager. Your manager will notify the Control/Clerical team, who will coordinate with Data Conversion Control team and/or Accounting Data Control team to locate the missing document.

# Mixed Data on Paper Returns

3.12.2.2.5.1.4 (01-01-2017) Mixed Data on Paper Returns Before making any corrections to the error screen display, make certain that the DLN on the screen display matches the DLN on the document. Mixed data situations exist when either of the following are present: Information from two different tax returns display on the error record under one DLN. The information on the return for the DLN does not match the return on the screen display. Take the following actions on mixed data: Stop processing block of work. Give the entire block of work to your manager. Note: Management will decide if the mixed data situation can be corrected via the terminal, or if the individual returns must be deleted and re-input.

# Corrections

3.12.2.2.5.2 (01-01-2017) Corrections Correct coding and transcription errors and misplaced entries on displayed fields to ensure taxpayer's entries are in the appropriate fields of the tax return. Refer to all instructions for each field error.

# Internal Use Forms

3.12.2.2.5.2.1 (01-01-2025) Internal Use Forms Form 3471, Edit Sheet - This form is used to edit unallowable conditions. Generally edited by Code and Edit or Examination. Form 4227, Intra-SC Reject/Routing - This form is used when special conditions require more research, referral and/or action before document can be processed. Form 6001, Letter 12-C Correspondence Action Sheet is used to generate a Letter 12-C to the taxpayer asking for more information needed to continue processing their tax return.

# Working Trails

3.12.2.2.5.2.2 (01-01-2025) Working Trails A working trail is a written and legible statement placed on a document as a record of action taken. They are used when information may be needed for other campus functions to accurately process tax returns. Working trails can contain the following: TIN Information about detached documents (e.g., detached Form 1040-X, etc.) Write a working trail on any detached document. The following information must be indicated in the working trail of the detached document: The received date of the return. Tax period of return in YYYYMM format.

# Attachments to Returns

3.12.2.2.5.2.3 (04-05-2024) Attachments to Returns Take the action described in Exhibit 3.12.2-12, Attachment Guide, when you are led to and find taxpayer correspondence or attachment to a return. Note: You are not required to research for attachments or correspondence unless specifically instructed to do so in the section or error code; however, be conscientious in taking the appropriate action on any attachments or correspondence found. Particular attention must be paid to remittances in the form of checks, money orders, EIP prepaid debit cards, etc. If a check, money order, or other item of value is found, immediately inform your manager or lead tax examiner, and refer to IRM 3.8.46, Discovered Remittance.

# Signature Requirements

3.12.2.2.5.2.4 (01-01-2025) Signature Requirements An original signature made by the taxpayer is required below the jurat (perjury) statement and within the "Sign here" box. Without the taxpayer's signature [or the signature of both taxpayers if Filing Status Code 2 (FSC 2), married filing jointly], the return is not an official document and can't be processed. Inspect all returns for original signatures. If an original signature is present in the correct location, accept the taxpayer's signature and continue processing the return. If the taxpayer signed elsewhere but arrowed their signature to the correct location, accept the taxpayer's signature and continue processing. If the signature is faxed or scanned, see IRM 3.12.2.2.5.2.4 (3) below. If an FSC 2 return has only one signature, see IRM 3.12.2.2.5.2.4 (4) below. If the return is signed by someone other than the taxpayer or if only one signature is present on an FSC 2 return, review the return for indications of a Power of Attorney and see IRM 3.12.2.2.5.2.4 (5) below. If the taxpayer is a minor child, see IRM 3.12.2.2.5.2.4 (6) below. If you cannot determine whether the signature is original, SSPND 211 to correspond for an original signature. Review the additional exceptions listed in IRM 3.12.2.2.5.2.4 (7) below. If a return is unsigned and none of the above apply, SSPND 640 to send the return to Rejects. Faxed or scanned signatures: Accept as valid signatures only if: Signature was received as a Reject reply via fax. Received from Taxpayer Advocate Service (TAS). Received from an IRS area, such as Substitute for Return (SFR) returns, Collections (returns marked "59XXX" , excluding "59918" ) or Accounts Management (Correspondence Imaging Inventory (CII) returns). Returns are stamped by RIVO (including Handwritten "RIVO" or "RIVO reviewed" ). Return are edited with SPC "B" or "M" Copies with the remark "Process as Original (PAO)." Electronic return prints with an IRSN processed as an original, even when no copy of Form 8453 is attached, or when the electronically filed return was signed with a PIN. Joint returns: Joint returns require the original signature of both taxpayers. Accept the signature of one taxpayer on an FSC 2 return only if: One taxpayer is deceased and there is an indication that the signing taxpayer is filing as the surviving spouse There is an indication of "POW" (prisoner of war) or "MIA" (missing in action) A statement is attached that one spouse is unable to sign the return due to health reasons There is an indication that one spouse is in a combat zone or qualified hazardous duty area A POA is attached granting the signing spouse signature authority for the other taxpayer. A POA is required even if the taxpayer indicates their spouse is overseas (including military if there is no notation of combat zone/hazardous duty area) or the taxpayer states they received advance permission from IRS. Power of Attorney/Form 2848, Power of Attorney and Declaration of Representative: If a Power of Attorney (POA) or Form 2848 is attached, the designated individual may sign on behalf of the taxpayer. One original signature is acceptable on a joint return when the POA is valid for both taxpayers. Note: If a guardian, personal representative, executor, trustee, or fiduciary files the return, it must have an original signature. Supporting documentation that the appointee has the legal right to file on behalf of the taxpayer may also be required. See IRM 3.12.2.3.18, Deceased Taxpayer for related information. Minor Child: If the taxpayer is a minor child and the tax return is: Signed by a parent, it never requires documentary evidence such as birth certificate, but the parent must sign as "Parent for Minor Child" . Note: The notation must clearly identify the relationship to the minor. Signed by a guardian or other fiduciary designee, it requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.11.3.11.1, Documentary Evidence Requirements. Exceptions: Do not suspend for a missing original signature in the situations described below: "Substitute for Return Prepared by IRS" is noted, a signed Form 1040-X, Amended U.S. Individual Income Tax Return, is attached for the same period with an original signature, "See 1040-X" is noted, or "dummy" return. "Section 6020(b)" or "prompt assessment" is noted or Form 4810, Request for Prompt Assessment Under IR Code Section 6501(d), is attached. Form 8879, IRS e-file Signature Authorization, is attached with a valid signature, and there is any indication that an electronic filing was rejected, or the return is for a prior year. The return comes from Exam, Collection, or Accounts Management and "Process as Original" (PAO) is present on the return. An employee's Integrated Data Retrieval System (IDRS) number is present on the signature line. Taxpayer has signed an attached CP 59 or Letter 143-C on the "Sign Here" line. CSCO will note in the "Sign Here" area whether the taxpayer has signed under the jurat of the CP 59 or Letter 143-C. Automated Substitute for Return (ASFR) is written or stamped in the top margin, a pink Form 3531 is attached, or Letter 2566 (SC/CG) or Letter 3219 (SC/CG) is attached. See IRM 3.12.2.3.2. There is an indication of TRPRT (transcript of a return). Computer Condition Code (CCC) "3" is already present. The return is from the Correspondence Imaging Inventory (CII). Paper-printed MeF returns that are sent from TAS. Efile Graphic Print (includes when the notation is circled out or lined through.) Form 8453, Form 8878, Form 8879: Permit electronic and digital signatures on these forms per the Deviation from Handwritten Signature Requirement for Limited List of Tax Forms. Do not correspond for original signature on these forms if electronically or digitally signed and received on or after August 28, 2020.

# Fields Not Visible in Error Code

3.12.2.2.5.2.5 (01-01-2019) Fields Not Visible in Error Code Due to the complexity of calculating income, taxes, and credits, the number of required fields can surpass the capacity of the ERS screen. The ERS screens have the following capacity: Section screens have 3 columns and 18 rows for a total of 54 fields. Exception: Section 01 has 2 columns and 18 rows for a total of 36 fields. Error code screens have 3 columns and 19 rows for a total of 57 fields. The number of fields displayed for an error code cannot exceed 57 fields. Instructions have been added to use command code GTSEC to make corrections to a field that does not display on the error code screen that is necessary for the resolution of the error code.

# Missing Schedules

3.12.2.2.5.2.6 (01-01-2017) Missing Schedules If Code and Edit did not prepare a dummy schedule from the attachments, you are not required to prepare a Dummy schedule/form when missing from a paper return. GTSEC XX to call up the section and enter all appropriate fields.

# Money Fields

3.12.2.2.5.2.7 (11-27-2020) Money Fields Refer to each section for specific information on fields transcribed as dollars only or dollars and cents. Some of the fields transcribed in dollars only will display in ERS in dollars and cents, with two zeros to the right of the decimal point. Any correction to a field with ** must be entered in dollars only. Any correction to a money amount field without ** must be entered in dollars and cents. MeF returns are displayed as whole dollars only.

# Clear Code C and 000

3.12.2.2.5.2.8 (01-01-2017) Clear Code C and 000 A field labeled CL will be displayed for the entry of a clear code when there is a possibility that a change or correction may not be needed. This field is located on line 4 of the screen display, to the right of CRECT. These records are cleared by either of the following actions: Correcting the error condition and transmitting. Enter C in the Clear Field, when no correction is needed. Note: If a correction is made, you must transmit before entering the clear code C. Unfinished records from the previous day will not contain any of the C clear codes that were assigned to the record. All clear codes on unfinished records are removed by the system for the new day's inventory. Programming will erase all C clear codes when a record has been suspended with CC SSPND. Use the numeric 000 as a clear code to delete an invalid or erroneous action code when there is no reason to suspend the record. Clear Action Codes 410 and 700 before resolving other errors in a record. All other action codes, enter C in the Clear Field after corrections for the action code have been completed.

# Entity Information

3.12.2.2.5.2.9 (11-27-2020) Entity Information Input entity changes when any acceptable written notification, as defined in the following, is received from the taxpayer and you are led to the Entity area: Written notification signed by the taxpayer informing the IRS they want their address changed. Form 8822, Change of Address, is attached to the return. Enter as intermediate or long entity. When IRS correspondence is returned by the taxpayer with new address information, input changes according to the information received. No signature is required on the address change.

# State Income Tax Returns/Payments or Contributions to Reduce the Public Debt

3.12.2.2.5.2.10 (01-01-2022) State Income Tax Returns/Payments or Contributions to Reduce the Public Debt State Income Tax Return: If attached, detach the state income tax return and route to Receipt and Control. Receipt and Control will route the return to the appropriate state taxing agency. State Income Tax Payments: If the state income tax return is not attached, but the taxpayer is attempting to pay state income tax, assign TPNC 298. If a check made out to the Bureau of Public Debt is found attached to the return, route to Receipt and Control.

# Command Codes

3.12.2.2.6 (11-27-2020) Command Codes Use the appropriate command codes (CC) when correcting the error inventory and the workable suspense inventory or when more research is necessary. The ERS and IDRS command codes are as follows: ERS COMMAND CODE DESCRIPTION CMODE Used to access and update taxpayer records on another campus' database. CRECT Used to enter a correction. DLSEC Used to delete a section from the data record. ERINV Used to research a DLN or TIN on the ERS Control File. GTREC Used to access the first error in a block in the error inventory or a specific record in the workable suspense inventory. It can also be used to redisplay any uncorrected error. GTSEC Used to obtain the display of any section of a record in process. NWDLN Used to change (renumber) the DLN and MFT of the record and reject the record. QRSEL Used to select tax records to stay on ERS Database one additional day to allow for Quality Review or rework. Definer E is used to select MeF returns. Definer R is used to select returns for CARE Review. RJECT Used to reject a record from ERS. SSPND Used to enter an action code and place a record in suspense. TRDBV/TRERS Used to obtain the display of edited, transcribed, and corrected data from electronic and paper returns. IDRS COMMAND CODE DESCRIPTION ENMOD Used to request the entity module for a specific taxpayer identification number. ENREQ Used to input entity changes for all master files. ENREQR Used to input CC IRCHG. IMFOL Will display entity and tax module information online for query access. INCHG Response to CC ENREQ for IMF and IRAF accounts. This is a generated command code with a screen format. INOLE Used to access the most current entity data from the national (NAP) files. IRPOL Research Form 1095-A, Form 1095-B, and Form 1095-C. IRCHG Response to CC ENREQR. Used to add a name control to the valid name controls for a given TIN (make an account IRS valid). Initiates an account merge of the valid and invalid TINs for a given account. IRPTR Contains entity data, cross reference information, DOD/DOB, and income summary information. CC IRPTR is available for researching information (before or after correspondence), to determine items such as gross social security benefits, withholding, social security tax withheld, and Medicare tax withheld. Online research is available for ten years. IRPTR data will be available as information is processed and is continually updated, per IRM 2.3.35. NAMEB Name and address data is entered to research a missing EIN. NAMEE Name and address data is entered to research a missing EIN. NAMEI Name and address data is entered to research a missing SSN. NAMES Name and address data is entered to research a missing SSN. RTVUE Contains edited, transcribed, and corrected data from data entry lines of returns and related forms and schedules filed in the current processing year (including three prior tax years). TXMOD Used to research a specific tax period for a specific type of tax. Note: More information on command codes is contained in IRM 3.12.37, IMF General Instructions, IRM 2.3, IDRS Terminal Responses, IRM 2.4, IDRS Terminal Input, and Job Aid Book 2515-015. When research is required and IDRS is unavailable, SSPND 351.

# Error Resolution System (ERS) Action Code

3.12.2.2.7 (01-01-2025) Error Resolution System (ERS) Action Code An ERS action code indicates that the document is missing specific information, must be suspended, and/or must be removed from processing. The ERS action code definitions in Exhibit 3.12.2-1 indicate if correspondence, in-house research, or other action(s) are required. Code and Edit (C&E) tax examiners assign action codes which are edited to the lower center margin of the return when more information is needed or further actions are required. Correspondence Action Sheet (Form 6001) is attached by C&E when initiating correspondence, and a correspondence action code is edited to the lower center margin of the return. When routing within the campus for in-house research, it is not necessary to provide further explanation unless specific instructions exist. Any action code assigned by C&E is transcribed and will always display as a Priority 1 Error. Correction Procedures - Use CC SSPND, RJECT, or NWDLN to enter an action code on the record, correct an invalid code, resuspend, or delete a record from ERS. If the action code assigned by C&E or transcribed by ISRP is invalid or incomplete, use 000 as a Clear Code to delete the action code. Note: Only one action code can be assigned at a time . Enter a valid action code with CC SSPND to clear the record from the screen and place it in either workable or unworkable suspense. Enter CC RJECT to delete the ERS record from ERS Inventory and the Service Center Control File (SCCF). Only Action Codes 620, 630, 640, 651, 660 and 670 are valid with CC RJECT. Enter an action code with CC NWDLN to delete the record from ERS and the SCCF and establish a new DLN for input.

# Revalidating With OLE

3.12.2.2.8 (01-01-2017) Revalidating With OLE ERS allows for the online revalidation of the TIN and name control using the Online Entity System (OLE). Corrections made in ERS to TIN and name control will revalidate by accessing the National Account Profile (NAP). The error codes where this occurs for primary taxpayers are as follows: Error Code 003 Error Code 004 Error Code 005 Error Code 006 Error Code 007 Error Code 008 Error Code 009 Error Code 011 The error codes where NAP revalidation takes place for secondary SSN, dependents and Earned Income Credit (EIC) children are: Error Code 010 Error Code 011 Error Code 012 Error Code 013 The error codes where NAP revalidation takes place for Schedule H information [employer identification numbers (EINs) only] are: Error Code 164 Error Code 170 Error Code 172

# Taxpayer Notice Code (TPNC)

3.12.2.2.9 (01-03-2025) Taxpayer Notice Code (TPNC) Taxpayer Notice Codes (TPNC) are used when a math error is present involving the tax liability or refund/amount owed. TPNCs are entered on the ERS screen display following the literal NC. The TPNC entered will print on the notice sent to the taxpayer to explain the change(s) made to the return. Once a code is transmitted to the record, it cannot be changed unless a correction causes an error code with a higher priority or a correction erases an error code previously cleared with a TPNC. See IRM 3.12.2.2.13.4(4) and (5). A TPNC assigned on an error code will redisplay on subsequent displays of that record. When multiple error conditions display in an error code, assign all applicable TPNCs to address each error condition. ERS can automatically process up to five TPNCs. If more than five TPNCs are required, enter TPNC 100 in the fifth position. See paragraph (11) below. Converted returns: When correspondence is required to correct a converted return, assign TPNC 111 as the first TPNC. Assign the appropriate TPNC to describe the error condition. Note: TPNC 111 informs the taxpayer that the return was converted to a Form 1040. If the same math error code redisplays, the TPNC assigned may not be valid for that error code. See error code instructions in IRM 3.12.3 for a list of valid TPNCs. Note: If the appropriate TPNC is not listed as an allowable TPNC for the error code, SSPND 470 and take the return to your lead tax examiner. If the lead determines after review that the TPNC must be added to the error code, send a copy of the paper return or the MeF DLN to Planning and Analysis (P&A) analyst and Headquarters (HQ) analysts. If you need to change information on the screen and assign a TPNC; Correct the appropriate field(s) Transmit When the error code redisplays, assign the TPNC(s). Caution: Enter TPNCs only after you have determined no other corrections to the screen display are needed. Ripple Errors: An error may ripple through a return, changing the taxpayer's figures that were originally correct. These ripple errors, especially changes in AGI and taxable income, can cause error codes to display that would not otherwise have generated. If an error code is the direct result of a ripple error, assign any previously assigned TPNC. Example: If the taxpayer's AGI was incorrect, changing it may cause ripple errors to the taxpayer's taxable income, tax, or other calculated amounts. Caution: Use caution when entering any previously assigned TPNC. Taxpayers must be advised of all errors that are present on the return. Use TPNC 100 and take the appropriate action when the following apply: If using TPNC 100 Then A] As the fifth TPNC when more than five TPNCs apply, Indicate that there are more than five TPNCs. Complete a TPNC 100 slip, or equivalent form with all applicable TPNCs (including TPNC 100). Attach the form below the entity section on the front of the return. Note: Notice Review will retype the notice to include all applicable TPNCs B] On electronic returns, GTSEC 01 and print the entity screen display. Follow the appropriate instructions from A] above to complete a TPNC 100 slip or equivalent. Attach the completed form to the Section 01 screen print. Place the Section 01 screen print in t designated area for electronic returns with TPNC 100. Note: Fax all Section 01 prints with TPNC 100 to the primary center daily. Note: The list of allowable TPNCs shown at the end of each math error code displays only a short description of the actual literal. See Exhibit 3.12.3-1 for a complete list of TPNCs with the actual literals. If any of the following apply, indicate on Form 4227 the error condition and TPNCs that would be assigned and SSPND 640 to return to originator: Substitute for Return Prepared by IRS under authority of Section 6020(b). An assessment made from Form 2859, Request for Quick or Prompt Assessment. The return is an Examination adjustment case, identified as Secured by Examination. Form 3198, Special Handling Notice for Examination Case Processing, is attached. Note: If the originator has indicated that a TPNC can be sent, you may assign one.

# Computer Assisted Review of Error Resolution System (CARE)

3.12.2.2.10 (11-27-2020) Computer Assisted Review of Error Resolution System (CARE) Computer Assisted Review of Error Resolution System (CARE) is the online quality review of Taxpayer Notice Codes (TPNC) initiated by the Error Resolution System (ERS). CARE is used to identify incorrect or erroneous TPNCs. TPNCs corrected by CARE prevent delays in refunds or balance due notices issued, and prevent erroneous Computer Paragraph (CP) notices from being generated to the taxpayer CARE is a Computer Assisted Review. All statistical data regarding TPNCs and tax examiner accuracy is gathered by computer programs and downloaded to a database for analysis. CC QRSEL is used to select documents to stay in the ERS Database one additional day to allow for TPNC review and correction. The selection can be made using the following criteria: All of a tax examiner's work All Taxpayer Notice Codes Money amount Batch and Block Number Documents are reviewed and reworked using instructions for specific error conditions. IMF: IRM 3.12.2, Individual Master File Error Resolution General Instructions; IRM 3.12.3, Error Resolution, Individual Income Tax Returns; IRM 3.22.3, International Error Resolution, Individual Income Tax Returns; and IRM 3.12.37, IMF General Instructions. BMF - Refer to applicable ERS IRM. Corrected work is then released as usual to subsequent functions. With the CARE process, corrected TPNCs posted to the Master File match the notice received by the taxpayer.

# CARE Reports

3.12.2.2.10.1 (01-01-2017) CARE Reports The High Dollar Notice Listing reports (LC76440-BMF and LC76441-IMF), are found on Control-D and contain the data used to generate daily review sheets. This report is imported into CARE Reports Access Database program. Using the Reports menu, the following types of review sheets can be generated: Julian Date Notice Report Dollar Reports Employee Report Cart Report Custom Select Report The LC76301 report can be found on Control-D and contains data showing the before CARE and after CARE status of each return. This report is input into the CARE Access Database to generate accuracy reports for each return. The following accuracy reports can be generated: Section Accuracy Rates Individual Tax Examiner Report Summary Team Report Summary TPNC Review Report Summary TPNC Review accuracy by Team Notice Code Review Totals Notice Code Review by Team Notice Code Review by Program Quality Review Report The Utility Window is used to specify review begin and end dates. This will allow weekly, monthly, or yearly accuracy reports to be generated. Local management officials determine which local reports to generate and distribute. HQ CARE Analyst can request HQ reports to generate and distribute.

# Generating CARE Review/Pull Listing

3.12.2.2.10.2 (11-27-2020) Generating CARE Review/Pull Listing Each morning, a designated employee loads the applicable Control- D reports (LC76440-BMF and LC76441-IMF) into the CARE Access database. The daily review/pull listings are then generated and printed. Using these listings, the returns are then located and made available to the CARE reviewers. Note: If your site is working MeF via CMODE to assist another center, the helping sites, the CARE Analyst will work with campus P&A to fax TPNCs 100 to the primary site for CARE review.

# CARE Review Procedures

3.12.2.2.10.3 (01-01-2018) CARE Review Procedures In order to prepare the return for review, all previously assigned TPNCs must be removed. Take the following steps in the order shown: Enter the complete DLN (including the serial number of the return) from the review sheet using Command Code GTRECQ, transmit. Enter GTSEC 01, transmit. Enter G in Field 01CCC. Delete G from Field 01CCC when EC 048 displays. The steps above only remove the TPNCs assigned on the record. It won't take you back to the first error displayed on the return if verified fields or processing codes were entered. GTSEC 94 and check for entries in ERS verified fields, such as Field 94EXV or Field 94CEV. Get each applicable section and check for entries in ERS only input fields, such as Field 0717V or Field 17SEV. GTSEC 01 and check for processing codes, such as RPC O or CCC X. If found, delete the entries. The return is now ready to be reworked. Refer to the following IRMs for ERS correction procedures: IMF IRM Title 3.12.3 Error Resolution, Individual Income Tax Returns 3.12.37 IMF General Instructions 3.22.3 International Error Resolution, Individual Income Tax Returns

# Computer Assisted Pipeline Review (CAPR)

3.12.2.2.11 (01-01-2017) Computer Assisted Pipeline Review (CAPR) For 2002 and later, ERS tax examiners are not required to enter a CAPR Code. If an entry is made in the first position after the field designator, a CAPR error message will display with the valid CAPR codes (M, C, T, E, D, S, and Blank).

# Correspondence Procedures

3.12.2.2.12 (01-01-2026) Correspondence Procedures Do not correspond on returns TY15 and prior. Use No Reply procedures for missing information on TY15 and prior returns. Exception: Correspond for missing signature regardless of tax year. Determine if a valid signature is present. See IRM 3.12.2.2.5.2.4 for complete signature instructions. Caution: Do not process a return without a valid taxpayer signature unless specific instructions exist; both taxpayers must sign if FSC 2. Correspond if a return is incomplete or illegible and cannot be processed. Correspond for all missing information prior to referring the return to other IRS entities (e.g., Exam, Entity, etc.). Stop processing the return when you identify a correspondence issue and: Scan the tax return for additional correspondence issues: missing forms, unexplained tax liability, missing original signature, missing information about dependents or EIC children such as name, relationship, or TIN. Do not correspond for only the TINs of dependents or EIC children. Note: Tolerances and thresholds apply to some forms and affect correspondence. See the following exceptions when corresponding for: • Missing original signatures. See IRM 3.12.2.2.5.2.4. • Form 1116. Refer to EC 277. • Form 8283. Refer to EC 240. • Schedule 8812. Refer to EC 344. • Schedule EIC. Refer to EC 337. • Withholding is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ not supported by IRPTR research ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and no supporting documents (e.g., Form W-2 or Form 1099) are attached, correspond for support. Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Check the return for Form 2848, Power of Attorney and Declaration of Representative, or similar statement to ensure the correspondence is correctly addressed. When a return is for a minor taxpayer and the parent's name is known, ensure the parent's name is in Field 01NL2. Look for the parent's name on Form 8615 or the signature line of the return. When you correspond for Schedule C or F ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and no Schedule SE is present, also request that the taxpayer declare liability or non-liability for the self-employment tax. Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ A correspondence action sheet (CAS) is a form used to initiate a letter requesting information from a taxpayer. The following CAS forms are used: Form 6001 is used to generate Letter 12-C, Individual Return Incomplete for Processing: Form 1040. Form 3696-A is used to generate miscellaneous Correspondex (C) letters (e.g., Letter 2719-C used for non-pending returns). Refer to Form 3696-A for Second Correspondence and Non-Pending Letters. Prepare Form 6001 to initiate Letter 12-C using the following steps: If there is an indication on the return the taxpayer is deceased (FSC 2, if both taxpayers are deceased), check the box "Estate of" at the top of the form. Write legibly. Check all appropriate boxes. Complete all information required for each paragraph selected (e.g., forms, lines, amounts, etc.). Enter money amounts in dollars and cents. Bracket negative amounts. Use Exhibit 3.12.2-9, Letter 12C Fill-in Paragraphs, when paragraph g is selected. Note: Refer all other fill-in paragraphs to your manager for their text approval and initials next to paragraph g. When paragraphs I - N are not enough to request all missing forms and schedules, use paragraph g with fill-in paragraph "36" instead. All returns: Select paragraph j to include the secure messaging website as an option for taxpayers. Paper returns: Always select the applicable fax number paragraph (k - m) specific to your campus. Note: No entry is required in the fill-in fields of the fax number paragraph (k - p). MeF returns: Select the applicable fax number paragraph (n - p) specific to your campus. For paper returns, attach the CAS to Form 1040 below the caption area. Caution: When stapling the correspondence action sheet to the return, ensure you are attaching only one return. For MeF, correspondence will be input by tax examiners before suspending the document in IDRS. Input the letter using the IAT CAS Letter Tool. Before inputting letters, ensure the IAT Letter Tool Set-up is complete following the instructions in IRM 3.12.37.6.2, Letter Tool Set-up. Refer to the Letters Job Aid on the IAT website for additional information on using the IAT Letters Tool. Enter CC SSPND with the applicable action code below: 211 - first correspondence. Use 211 unless specified below. 212 - second correspondence, when directed. See IRM 3.12.2.2.12.1. 213 - Form 8885 (HCTC) (EC 358) 224 - ACA correspondence (EC 100, 101, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, and 352). If there are multiple reasons for corresponding and one is for ACA, use 224. Enter SSPND 640 to send the return to the originator if any of the following is present, or return is incomplete or unprocessable: Note: Do not correspond. Substitute for Return Prepared by IRS under the authority of Section 6020(b). An assessment made from Form 2859, Request for Quick or Prompt Assessment. An Examination Adjustment case identified as "Secured by Examination" . Form 3198 is attached.

# Second Correspondence

3.12.2.2.12.1 (01-01-2026) Second Correspondence When contact with the taxpayer has previously been made by any area of Submission Processing, including Form 3531, Request for Signature or Missing Information to Complete Return, treat missing information on a return as a No Reply, except in the situations in the following list. Correspond a second time when any of the following exceptions apply, if it had not been requested during first correspondence, and the taxpayer provided a complete reply: Error Code 268, Alternative Minimum Tax Liability Error Code 358, Health Coverage Tax Credit (HCTC) Form 4137 when you can't determine which taxpayer is liable. Form 5329 when you can't determine which taxpayer is liable. Form 8606 when you can't determine which taxpayer is liable. Form 8919 when you can't determine which taxpayer is liable. Schedule H when you can't determine which taxpayer is liable. Schedule SE when you can't determine which taxpayer is liable. If EC 028 or EC 029 displays after Code and Edit has corresponded or ERS has corresponded for "field errors only" . When second correspondence is issued based on the exceptions in (1) a) through i), enter SSPND 212 and prepare the applicable Form 3696-A for LTR 1263-C. Note: Refer to the Form 3696-A for Second Correspondence and Non-Pending Letters located under Job Aids in the SERP ERS/Rejects portal. If ACA Error Code 100, 101, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, or 352 displays after first correspondence and the taxpayer has provided a complete reply, follow all correction procedures for the error code that displayed to determine if second correspondence is necessary. If second correspondence is necessary, enter SSPND 212 and follow the procedures under the error code for the appropriate paragraph(s) to send using Form 6001. Also, include paragraph g with fill-in 23. Exception: If correspondence has been issued for ACA EC 190 through 199, EC 270, or EC 352, and another ACA error code displays for the return requesting more information, do not correspond. Follow No Reply procedures. Do not correspond a second time if the information was previously requested and the taxpayer did not furnish the information or furnished an incomplete response. Treat the return as a No Reply using the procedures in IRM 3.12.3.35.

# Form 5260, Quick Note

3.12.2.2.12.2 (01-01-2026) Form 5260, Quick Note A quick note may be used instead of an IDRS letter when directed by IRM instruction to return documents to the taxpayer. Retain a copy of each quick note with the return. Managerial approval is required before sending Form 5260, Quick Note. A quick note must contain all of the following: Original and 1 copy of the letter Employee's signature, title, and employee number Telephone number 800-829-1040 Note: Do not use your digital signature when using Form 5260. Quick Notes will be brief and concise, using the verbiage provided in IRM instructions.

# Types of Errors

3.12.2.2.13 (01-01-2017) Types of Errors The ERS system will identify errors according to type and priority as follows: Action Code Error (Priority I) Section Error (Priority II) - Includes terminus error and Integrated System Remittance Processing (ISRP) problem code Validity Error (Priority III) - Includes field errors Math/Consistency Error (Error Codes) (Priority IV), see IRM 3.12.3

# Priority I Errors, Action Code

3.12.2.2.13.1 (01-01-2017) Priority I Errors, Action Code Priority I Errors consist of the following: Invalid or valid action code assigned by Code and Edit. Valid action code assigned to suspense inventory. Use the following error correction for action codes: If the Then A] Action code requires a suspense action, SSPND with correct action code. Go to the bottom of the screen and transmit. B] Action code does not require a suspense action, Enter numeric 000 in the Clear Field (CL). Go to the bottom of the screen and transmit. C] Action code is 001, Enter CC GTSEC for each section that contains data. Add the required data. Enter C in the Clear Field. Go to the bottom of the screen and transmit. (Record will go through normal validity checks.) Note: Do not remove the document from the block unless the case is a Priority Statute or manual refund case.

# Priority II Errors, Section Errors

3.12.2.2.13.2 (01-01-2017) Priority II Errors, Section Errors Priority II Errors may be present if normal ISRP validity checks have been bypassed. These conditions are as follows: Split screen transmission (Edit Error Code 1). 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, or the Depositor Account Number (DAN) in Section 06 (that is input twice) was not entered the same both times. The second entry of the DAN is dropped by ISRP. ERS must determine if the entries in Section 06, especially Field 06DAN, have been transcribed correctly. Invalid section ending point (Edit Error Code 3). Invalid field length (Edit Error Code 4). Questionable Section - a section entered twice or entered out of sequence by ISRP. (Edit Error Code 5). Missing required section. Terminus errors (no error in record). The display will only show one section in error at a time for the transcribed fields (except ERS Action Code and Remittance). Display will be in columnar format with or without data. The error type will also be indicated for ISRP Problem Code errors. The content will have any individual section, excluding computer generated fields and the Action Code. The Action Code is an uncorrectable field except as defined for CC SSPND and RJECT. Use the following general guidelines when correcting a Priority II Error: ISRP Errors - All fields of the section must be examined when this condition exists. If Section 01 of a return is coded, examine the section (via CC GTSEC) for an error to ensure that the return is for the taxpayer whose name is in Section 01. Correct the section. Once the section is correct, transmit from the bottom of the screen. Missing Section Errors - If data is present for the missing section, enter all the data for the section and transmit. If no data is present for the missing section, refer to specific IRM procedures for initiating research (see IRM 3.12.2.2.6) or correspondence (see IRM 3.12.2.2.12). After initiating research or correspondence, SSPND the record with the appropriate action code. Terminus Errors - All fields of the section must be examined when this condition exists. Make the necessary corrections to the record. Once the section is correct, transmit from the bottom of the screen. Questionable Section - Verify and enter all the data for the displayed sections. When all of the data is correct, transmit from the bottom of the screen. Correct all displayed fields before transmitting. Move the cursor to the bottom of the screen and transmit when no corrections are necessary.

# Priority III Errors, Validity Errors, including Field Errors

3.12.2.2.13.3 (01-01-2017) Priority III Errors, Validity Errors, including Field Errors Priority III Errors generate when any field fails to meet the requirement(s) for that specific field. The following is a list of some conditions that may create a field error: 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. Priority III Errors will display in columnar format in the order encountered in the record. Overflow fields can be identified by all question marks (for money fields) or a single pound sign in the last position of a Name Line. Every field that displays is in error. Use the following general guidelines when correcting Priority III Errors: Correct coding and transcription errors. Enter the correct data for each field displayed. If no data is to be in a displayed field, blank the field. Follow section instructions for fields in error. Note: When "Unrecognizable Field Error" displays, SSPND 630.

# Priority IV Errors, Math and Consistency Errors (Error Codes)

3.12.2.2.13.4 (01-01-2017) Priority IV Errors, Math and Consistency Errors (Error Codes) Priority IV errors generate when any valid field is used in any computation in which the results are inconsistent with or contradictory to other valid field(s). EC 001-999 will be assigned by the computer. If the computer computation of an amount differs from the taxpayer's amount, the computation fields will be shown as a Priority IV Error. Error types will be one of the following: Consistency errors Validity errors Math errors The display will show the error code assigned and the fields needed to make the necessary correction(s). Resolve all errors by either eliminating the error, entering clear codes, or entering a TPNC. Note: All math error codes will require a correction to a field or the entry of a TPNC. When correction causes an error code with a higher priority than the previous error code to display, all clear codes and TPNCs already entered for lower priority error codes will be deleted. All lower priority error codes, still present in the record, will be re-displayed for resolution even when previously cleared with a TPNC or clear code. When 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. All TPNCs and clear codes assigned to all lower priority (higher numeric) error code(s) will also be deleted. Any remaining error codes, previously cleared (deleted because of a correction), will re-display. Use the following general guidelines when correcting a Priority IV Error: Compare the displayed fields with the return. Correct all fields edited or transcribed incorrectly. Enter correct taxpayer amounts for ERS input only fields (e.g., Other Statutory Credits). Follow the instructions for the displayed error code when correcting fields in error.

# Error Codes in Series 500 and 600, Changes in Statutory Credits

3.12.2.2.13.5 (04-05-2024) Error Codes in Series 500 and 600, Changes in Statutory Credits Error Codes in the 500 and 600 Series (except 601) provide the opportunity to inform the taxpayer(s) of adjustments made to their statutory credits when there is no change to the refund. This happens when the taxpayer has more statutory credits available than are needed to zero out the tax. These excess credits are not refundable but can be carried over to the following year. Sometimes the taxpayer will make a mathematical error on their return which makes it necessary to use more or less of the credits to offset the tax, but the error still results in no change to their anticipated refund. The taxpayer will be notified of the adjustment to the credit so they can have an accurate record of the carryover credits available to offset tax in the future year. The taxpayer is notified by means of the Letter 2719-C. See the following example: Before Correction After ERS Correction Line 16 Tax Amount is $1,000. Investment Credit is $1,500. Credit is limited to $1,000. Credit taxpayer will carry forward is $500. Line 16 Tax Amount is $1,400. Investment Credit is $1,500. Credit is limited to $1,400. Credit taxpayer will carry forward is $100. Prepare Form 3696-A to initiate the Letter 2719-C when the change to credits is $100 or more. Refer to Form 3696-A for Second Correspondence and Non-Pending Letters. Complete the following: Boxes 1 through 9 (as appropriate), on Form 3696-A. "Fill-ins" portion of Form 3696-A. "Fill-ins" 01 through 05 of Letter 2719-C (these are required). Note: If preparing Form 3696-A for Form 3800 (TY97 and later), and line 2 (Passive Activity Credits Included) or line 3 (Passive Activity Credits Allowed) of Form 3800 is present; do not reference on Form 3696-A the individual general business credit. Instead, reference all Form 3800 credits as "your general business credit" .

# Special Procedures

3.12.2.3 (01-01-2018) Special Procedures This subsection addresses the following special situations, return types and procedures: Secured/Photocopied/Second Returns Automated Substitute for Return (ASFR) Frivolous Filer Accounts Over 999 Million Dollars Injured Spouse Allocation Innocent Spouse Relief Request, Form 8857 International Returns KITA: Killed in Terrorist Action Military Spouse Residency Relief Combat Zone Returns Natural Disaster and Emergency Relief Program Conversion of Returns Misblocked Returns Prior-Year Returns Re-Entry (Reinput) Returns Taxpayer Advocate Service Electronic Returns Deceased Taxpayer Multiple Filers on the Same Return Multiple Tax Periods on the Same Return Tax Return for an ITIN, Income and Withholding Statements for SSN Manual Refund - Refer any return hand carried by a TS SP liaison for Taxpayer Advocate Service (TAS) as a manual refund to a lead tax examiner or designated tax examiner for processing. (See IRM 3.12.3.24.4.3, EC 260.)

# Secured/Photocopied/Second Returns

3.12.2.3.1 (11-27-2020) Secured/Photocopied/Second Returns Taxpayers sometimes file returns with Form 1040 to correct or change previous returns. Some taxpayers send copies of original returns with payments or correspondence. Process the return as an original if the phrase "No TC 150" , "Secured by Collection," or "TC-599" -XX is anywhere on the return. Process a photocopied return as an original when "Process as Original" (PAO) has been edited on the return, indicating that Exam has the original, delinquent return. Process any return with the phrase PAO in the upper left corner of the return as an original return so that it may be posted as a duplicate.

# Automated Substitute for Return (ASFR)

3.12.2.3.2 (01-01-2017) Automated Substitute for Return (ASFR) Most Substitute For Returns (SFRs) have been automated and are called ASFRs. Take the following action when an ASFR is received in ERS. ASFRs are usually Section 01 validity errors (e.g., a ZIP Code problem or an invalid character). You will not have the actual document: Research using CC INOLE. Re-enter the entity data into the field(s) in error.

# Frivolous Filer

3.12.2.3.3 (03-18-2025) Frivolous Filer SSPND 331 (Rejects AC 335) any return on which the taxpayer: Argues - for any reason - the filing of a tax return or the paying of tax. Makes use of a frivolous argument to reduce income or liability. Marks out or alters - in any manner - the penalty of perjury statement (jurat) above the signature. A Frivolous Return Process stamp in the upper left hand corner of the return indicates it has already been reviewed by the Exam FRP Coordinator. Do not SSPND 331, continue processing. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See Exhibit 3.12.2-14, Frivolous Filer Definitions, for more examples and complete descriptions. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Example: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental Section 457 plan is shown in box 11 of Form W-2. For TY22 and later, this income is included in Schedule 1, line 8t, rather than on Form 1040, line 1a. Do not SSPND 331 if the Form W-2 income is included as additional income on Schedule 1, line 8t. If you suspect a return is frivolous, refer to the following steps. Do not resuspend a return to the same office a second time. If a second referral is necessary, make sure it meets the criteria for referral to the second office. If the return is electronic, print Section 01 of the return. Suspend the return to: •≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ • SSPND 331 for frivolous arguments listed in IRM 3.12.2.3.3, Frivolous Filer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Accounts Over 999 Million Dollars

3.12.2.3.4 (04-24-2025) Accounts Over 999 Million Dollars ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If a return meets any of the conditions in (1), SSPND 620 (For MeF, print all forms, schedules, attachments, and Code and Edit Values). Rejects will void the return, and route it via overnight shipping to the following address: Kansas City Submission Processing Campus Accounting Control/Services Operation ANMF Team Stop 6263 P6 333 W. Pershing Rd. Kansas City, MO 64108 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Consistency errors in the range 5XX and 6XX may display because of the truncated AGI. Keep the effect of the truncated AGI in mind when you follow the procedures at those error codes.

# Injured Spouse Allocation

3.12.2.3.5 (01-01-2023) Injured Spouse Allocation An Injured Spouse allocation request can be filed by one spouse to protect their share of a joint overpayment. Injured Spouse returns can be identified by one of the following: "Injured Spouse" written on the return. Form 8379, Injured Spouse Claim Allocation, attached. Batched in Blocking Series 920-929 (Form 1040 or Form 1040-X). Use the following table to determine procedures for handling Injured Spouse claims: If the return DLN Then A] Has Blocking Series 920-929, Continue processing. Leave Form 8379 or Form 1040-X attached. B] Does not have Blocking Series 920-929 (found in regular block of work), SSPND 610 to have the return renumbered.

# Innocent Spouse Relief Request, Form 8857

3.12.2.3.6 (04-05-2024) Innocent Spouse Relief Request, Form 8857 Taxpayers file Form 8857 to request relief from a tax liability for which they believe only the spouse should be held responsible. Three types of relief from joint and several liability are available. Innocent Spouse Election. An election made by a person who filed a joint return or filed a return as "married filing separately" in a community property state and later said that the understatement of tax on the return stems from the erroneous reporting of an item that belongs to the spouse, of which the claimant had no knowledge or reason to know and taking into account all the facts and circumstances, it would be inequitable to hold that person liable. Separate Liability Election. An election made by a person who filed a joint return and later claimed separate liability from their spouse. The claimant must be legally separated, living apart for 12 months or more, or no longer married to the spouse with whom they filed the joint return at the time the claim was filed. Equitable Relief. Request made by a person who filed either a joint return or a return as "married filing separately" in a community property state, and later claimed that taking into account all of the facts and circumstances, it would be inequitable to hold that person liable. Note: IRM 25.15 provides technical and procedural guidance. Taxpayers are instructed to file Form 8857, Request for Innocent Spouse Relief, to request relief if they are making the preceding claims. When the taxpayer attaches correspondence to the return and indicates Innocent Spouse, Separate Liability Election, Equitable Relief, Joint and Several Liability, or Form 8857 is attached to the return, enter 3 in Field 01CCC. Note: When multiple CCCs are present, CCC 3 must be entered first. Innocent Spouse Relief requests are processed in Cincinnati only. When the taxpayer attaches correspondence to the return that identifies them as a claimant or when Form 8857 is attached to the return: Detach the correspondence and Form 8857 and all supporting documentation. Edit working trails on the return and the correspondence and Form 8857. Prepare Form 4227, noting "Innocent Spouse Request," and attach it to the detached items. Give Form 8857 and all documents related to it to your manager. Leave the return in the block and process as normal. Send all claims daily, via traceable mail, to the following address: Internal Revenue Service Cincinnati Centralized Innocent Spouse Operation Stop 840F 7940 Kentucky Drive Florence, KY 41042

# International Returns

3.12.2.3.7 (05-22-2025) International Returns Treat any return with an address outside the 50 United States and District of Columbia as an international return. Note: This does not include APO/DPO/FPO addresses. Caution: Taxpayers may report income earned in a foreign country or through a business located in a foreign country. As long as the tax return has a domestic address and does not meet international criteria, the foreign income does not make it an international return. International tax returns are identified by the presence of one of the following: An address outside the 50 United States and Washington, D.C. This does not include Army/Air Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) addresses. Form W-2 AS, American Samoa Wage and Tax Statement, is attached. Form W-2 CM, Wage and Tax Statement from Commonwealth of Northern Mariana Islands, is attached. Form W-2 GU, Guam Wage and Tax Statement, is attached. Form W-2 from Puerto Rico, Form 499R-2/W-2PR, Comprobante de Retencion - Withholding Statement, is attached. Form W-2 VI, U.S. Virgin Islands Wage and Tax Statement, is attached. Form 390, American Samoa Individual Income Tax Return, is attached. Form 482.0, Individual Income Tax Return / Formulario 482 (Puerto Rico), Planilla de Contribución Sobre Ingresos de Individuous, is attached. Form 1040CM (CNMI), Commonwealth of Northern Mariana Islands Territorial Individual Income Tax, is attached. Form 1040 GUAM, Guam Individual Income Tax Return, is attached. Form 1040-NR, U.S. Nonresident Alien Income Tax Return, is attached. Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, is attached. Form 1040-PR (TY22 and prior), Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico), is attached. Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico), is attached. Form 1040-SS (sp) (TY23 and later), Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico), is attached. Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, or letter signed by Competent Authority is attached. Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, is attached. Form SSA-1042S, Social Security Benefit Statement, is attached. Form 2555, Foreign Earned Income, is attached. Form 2555-EZ (TY18 and prior), Foreign Earned Income Exclusion, is attached. Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, is attached. Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI), is attached. Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons, is attached. Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands, is attached. Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), is attached. Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, is attached. Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446), is attached. Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached. Form 8854, Initial and Annual Expatriation Information Statement, is attached. Form 8891, U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans, is attached. Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession, is attached. Form 14653, Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures (Streamlined Foreign Offshore), is attached. Form 14654, Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures (Streamlined Domestic Offshore), is attached Dual Status - Form 1040 and Form 1040-NR filed together for the same tax year, "Dual Status" or "D/S" indicated on the return (taxpayer claims part year residence and part year non-residence). Always leave Form 1040 and Form 1040-NR for the same taxpayer together. Nonresident Alien (NRA) - notation that primary or both taxpayers are nonresident alien Exception: Do not treat as a nonresident alien if the primary taxpayer is a nonresident alien (NRA) without an SSN or ITIN, and the secondary taxpayer has an SSN/ITIN and is reporting income. International Tax Treaty noted - taxpayer indicating exemption or exclusion of tax and/or income due to an international tax treaty. Note: Do not treat as international if the taxpayer claims exemption due to an American Indian treaty and no other international condition exists; process as a domestic return. Treaty Trader noted. Fulbright Grantee noted. Notation of "Streamlined" on the return, or other indication of Streamlined Filing Compliance Procedures on the return. Other Streamlined certification similar to Form 14653 or Form 14654 is noted or attached. IRC 871, IRC 893, IRC 911, IRC 913, IRC 931, IRC 932, IRC 933, IRC 934 or IRC 935 of the Internal Revenue Code (IRC) is notated anywhere on the return. Exception: For electronically filed returns, if the amount of the exclusion is $0 and there are no other indications of international criteria, DO NOT send to Austin for processing as an international return. Caution: If none of the international conditions listed above are present, consider it a domestic return and process it accordingly. Except in AUSPC, use SSPND 651 to forward any international returns described in paragraph 1 or 2 to AUSPC for immediate processing. In AUSPC, use SSPND 610 to have such returns renumbered. Caution: Unless the return meets other international criteria, do not transship returns when the taxpayer has converted income paid in a foreign currency. The taxpayer may, for instance, earn income in Canadian dollars, convert it to U.S. dollars, and then report it on the return in U.S. dollars. Note: Foreign income (usually reported on line 1, Form 1040 or line 8z, Schedule 1 of Form 1040), FEC noted on line 1, Form 1040, or the presence of Form 1116 alone does not qualify for treatment as an international return.

# KITA: Killed in Terrorist Action

3.12.2.3.8 (01-01-2019) KITA: Killed in Terrorist Action Route all returns identified as KITA/KIA, KITA-Oklahoma City, KITA-9/11, or KITA-Anthrax to the KITA coordinator in Accounts Management for processing. Note: A list of current KITA/KIA coordinators can be found at the SERP home page under the tab Who/Where. If the taxpayer writes Sec 692(d)(2) on the Other Payments line of Form 1040 with a money amount to the right, Code and Edit is instructed to route to the KITA/KIA coordinators. If the KITA/KIA coordinator determines that the return does not qualify for KITA/KIA, the coordinator will attach a Form 4227 notating Not eligible for KITA/KIA to the front of the tax return. The Form 1040 will be returned to Code and Edit to complete processing. If the KITA/KIA coordinator determines that the return is not eligible under Sec 692(d)(2), Code and Edit will X any amount on the return where the taxpayer has written Section 692(d)(2). If the KITA/KIA coordinator determines that the return is not eligible under Sec 692(d)(2), enter the computer's amount for tax in Field 94TTV and assign TPNC 650. Note: Delete any amount claimed on the return for tax forgiveness under Section 692(d)2. If Code and Edit failed to identify a return as KITA/KIA, take the following action: Prepare Form 4227 stating KITA/KIA. SSPND 360 (other in-house research) and route the return to the KITA Coordinator. If the KITA Coordinator determines the taxpayer qualifies for KITA, the Coordinator will ship the return to the Kansas City KITA Coordinator. The KITA Coordinator will notify ERS Suspense when the return is routed to the Kansas City KITA Coordinator for processing. ERS Suspense tax examiner must RJECT 640 to remove the document from ERS inventory.

# Military Spouse Residency Relief

3.12.2.3.9 (01-01-2018) Military Spouse Residency Relief For TY09 and later, the IRS offers tax relief for civilian spouses of active-duty members of the uniformed services. The Military Spouse Residency Relief Act of 2009 granted an extension of time to pay the income tax until October 15, 2010, without penalty. For subsequent years, civilian spouses may be eligible for an extension of time to pay their income tax to October 15, without penalty. To elect the extension, the taxpayers filing a joint return (FSC 2) write the phrase MSRRA on the top of their tax return. Taxpayers who file under the filing status married filing separately (FSC 3) must attach the declaration below in addition to writing the phrase MSRRA on their return: I am claiming _________________ as my residence or domicile under the Military Spouses Residency Relief Act (MSRRA). Under penalties of perjury, I declare that I am qualified for relief under MSRRA because I am present in ______________ solely to accompany my spouse who is a service member serving in compliance with military orders, and my claimed residence or domicile is the same as my spouse's residence or domicile. The declaration must be signed and dated by the taxpayer. Neither a stamped signature nor a faxed signature is permitted. Enter M and P in Field 01CCC when the taxpayers request an extension under MSRRA and satisfy the requirements.

# Combat Zone Returns

3.12.2.3.10 (01-01-2023) Combat Zone Returns Members of the U.S. armed forces paid by the U.S. armed forces and serving in a combat zone or in a qualified hazardous duty area are entitled to an exclusion of wages earned in that zone and certain extensions of time for filing and paying. To identify that they are entitled to certain extensions of time, these taxpayers write the location or operation of the military endeavor on the top of their tax return. Note: Do not enter CCC "M" if the return is a Combat Zone return. Do not allow write-ins of income exclusions for combat zone pay. If the taxpayer excludes income earned in a combat zone, enter Y in Field 01CCC. Delete the exclusion on line 8z of Schedule 1 of Form 1040 or restore in full the wages on line 1 of Form 1040. Assign TPNC 165. For additional information, see EC 260. Members of the U.S. armed forces serving in a defined combat zone or in direct support of one are entitled to an exclusion of all or a portion of their compensation received for active service in the armed forces of the United States. The Department of Defense excludes the eligible combat pay from the wages reported on Form W-2, box 1. The taxpayer may not further reduce the wages. This benefit is available only to members of the U.S. armed forces. Employees of firms under contract by the Defense Department may not exclude income earned in a combat zone. Take the following appropriate action when one of the military operations listed is noted on the return: If the taxpayer notes And Then A] Operation Enduring Freedom Operation Noble Eagle Operation Iraqi Freedom Egypt Sinai Peninsula-Egypt Jordan Operation New Dawn Combat Zone or similar statement 09/19/2001 and later 03/19/03 to 04/20/03 (Egypt) 03/19/03 and later (Jordan) Enter K in Field 01CCC. B] Bosnia Croatia Former Yugoslavia Herzegovina Joint Guard Macedonia Operations Allied Force Operation Joint Endeavor TY97 and later, Enter R in Field 01RPC. C] Former Yugoslavia TY94 - TY93, Enter D in Field 01CCC. D] Desert Storm (Persian Gulf area) Joint Forge Joint Guard Northern Forge Northern Watch TY90, Enter Z in Field 01CCC. E] Haiti Operational Uphold Democracy Operation GTMO TY94 - TY93, Enter D in Field 01CCC. F] UN Operation TY92 and later, Enter D in Field 01CCC. G] Somalia or Somalia Restore Hope TY93 - TY92, Enter D in Field 01CCC. H] Haiti or Operation Unified Response TY10 - TY09 Enter D in Field 01CCC. Enter Y in Field 01CCC if the taxpayer notes a combat zone or tax period not listed in the preceding table. Note: Several military operations are covered under UN Operation notation. Refer to your lead tax examiner, who will contact National Office. For further information about military returns, see EC 260.

# Natural Disaster and Emergency Relief Program

3.12.2.3.11 (01-01-2026) Natural Disaster and Emergency Relief Program When a disaster or emergency occurs, the President may sign a major disaster or emergency declaration of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. A list of regions (such as counties, parishes or other political subdivisions) impacted by a designated disaster is compiled and provided by the Federal Emergency Management Agency (FEMA). The IRS will provide systemic relief from late filing and/or late payment penalties for taxpayers in declared disaster or emergency areas. Taxpayers may identify the name of a disaster or emergency on the front of their return, on an attachment, or may notate "Federally Declared Disaster" . Taxpayers who reside outside the FEMA ZIP Code list may be able to self-identify that they were affected by the disaster if they meet certain criteria (e.g., taxpayers whose tax records are located in a covered disaster area). If the taxpayer notes Disaster on their tax return, correspond for any missing required signatures, forms and schedules using Form 6001. Exception: Do not correspond for withholding, excess social security tax, or source of earned income.

# Conversion of Returns

3.12.2.3.12 (04-24-2025) Conversion of Returns When working a converted return (e.g., TY17 or prior Form 1040A or Form 1040EZ converted to Form 1040) and a TPNC is required to resolve the error, assign TPNC 111 as the first notice code to inform the taxpayer the return has been converted to a Form 1040. When Form 1040 is filed for a deceased taxpayer and the return covers a tax period after the taxpayer died, refer to IRM 3.12.37.26.2, Transshipping Form 1040 for 1041 conversion.

# Misblocked Returns

3.12.2.3.13 (04-05-2024) Misblocked Returns Form 1040 identified as Injured Spouse returns must be batched together in DLN blocking series 920-929. See IRM 3.12.2.3.5 to process such returns. If information is missing, SSPND 211 to correspond before renumbering the return. Note: For further information on renumbering documents, refer to IRM 3.12.37, IMF General Instructions. Take the following actions for misblocked returns. If Then A] A prior year return is found in a current year block, Process the return using the prior year returns instructions at IRM 3.12.2.3.14, Prior-Year Returns. B] Form not in the 1040 series is found in a Form 1040 block, Refer the return to your lead.

# Prior-Year Returns

3.12.2.3.14 (01-01-2026) Prior-Year Returns The computer is programmed to perform calculations for the current year and the two prior years. Follow current-year procedures to resolve errors for these three years, unless there are specific IRM procedures for those two prior years. Returns for TY22 and prior may require a manual computation. Follow the applicable prior-year procedures. In processing year 2026, Code and Edit will edit TY25 line numbers on TY24 and prior forms and schedules when there is an entry to be transcribed. Validity errors and math errors are identified and corrected in the same manner as with current-year returns, with some exceptions or variations. These exceptions or variations are listed in the section descriptions or located at the end of the error code. Use the following general guidelines when processing prior-year returns: Correct coding errors, transcription errors and misplaced entries in displayed fields. Always ensure the tax period is entered correctly. Use the prior-year tax form to verify an amount manually and give the taxpayer the most beneficial allowable tax computation. Refer to Prior-Year Job Aid Book 2515-014.

# Re-Entry (Reinput) Returns

3.12.2.3.15 (02-26-2024) Re-Entry (Reinput) Returns Tax returns that are being put through the system again may have a Form 3893 attached indicating what, if any, actions were taken. These returns may have a notation below the jurat "Do not correspond for signature" or similar statement and/or TRDBV prints attached. The following are some of the reasons that documents will be re-entered or reinput: Withholding has been adjusted because of a prior refund. The period ending is being changed. An amended return is being changed to an original return. Filing Status is being changed. CP 29 or CP 36 is attached. Substitute for Return (SFR) or has previously corresponded with the taxpayer. SSN / TIN change TRPRT print of return - MeF return being reinput MFT 32 return being reinput to MFT 30 The following are general guidelines for working Re-entry returns. Do not change corrections shown in brown or red ink on the form/return. Do not correspond. Perfect the return using the originally filed return on EUP for MeF, or TRDBV if the originally filed return was paper. If Form 3893 identifies the originator on an unprocessable return, SSPND 640 and return document to the originator. Follow normal processing procedures when the originator states "process as an original return" . Do not correspond for signatures on TRPRT print of return (MeF).

# Taxpayer Advocate Service

3.12.2.3.16 (01-01-2023) Taxpayer Advocate Service The Taxpayer Advocate Service (TAS) is an independent organization within the IRS, led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they've tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico. The National Taxpayer Advocate has reached agreements with the Commissioner of Taxpayer Services (TS), Small Business and Self-Employed (SB/SE), Tax Exempt and Government Entities (TE/GE), Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) divisions. These Service Level Agreements (SLAs) outline the procedures and responsibilities for the processing of TAS casework when either the statutory or the delegated authority to complete a case transaction rests outside of TAS. Refer to IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for a complete list of TAS Case Criteria. A referral to a TAS office is not necessary even if TAS case criteria is met if an operating division or function can immediately resolve the issue within 24 hours. It is important that all IRS employees handle potential TAS cases with the taxpayer's best interest in mind. More information on 24-hour same-day resolution can be found in IRM 13.1.7.5, Same Day Resolution by Operations. If action can be taken within 24 hours to resolve the taxpayer's issue, but the taxpayer requests TAS assistance or is not satisfied with the service provided, refer the taxpayer to the NTA toll-free number, 877-777-4778 or TTY/TDD 800-829-4059. If the IRS employee receives taxpayer contact that meets TAS criteria, and the employee cannot initiate action to resolve the taxpayer's inquiry or provide the relief requested by the taxpayer within 24 hours, refer the case to TAS. A taxpayer does not have to request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer to support the requested relief, or when required by the IRM. Taxpayers, their representatives, or IRS employees may complete Form 911, Request For Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), when a taxpayer meets TAS criteria. Refer Form 911 to the Local TAS Office within 24 hours of receipt. See Exhibit 3.12.2-12, Attachment Guide, for procedures for routing Form 911 to the TAS Office. Do not refer the following types of cases to TAS as they are exceptions to TAS criteria: The taxpayer's complaint or inquiry only questions the constitutionality of the tax system. Cases where the focus of the taxpayer's inquiry is solely to employ frivolous tax strategies to avoid or delay filing or paying federal taxes.

# Electronic Returns

3.12.2.3.17 (03-18-2025) Electronic Returns Command code (CC) CMODE allows an IDRS user access to different IDRS databases. To change modes, enter CMODE and a two-digit abbreviation for another campus. Below are the two-digit codes for each site: Site Two-Digit Code Andover AN Austin AU Fresno FR Kansas City KC Ogden OG Philadelphia PH Refer to Job Aid Book 2515-015 for procedures for the MeF (Modernized e-File) Reference Guide. If you have to suspend an electronic return for routing out of ERS, create a paper trail by following these steps. GTSEC 01 of the return in question and print. Write or type the number of the action code used for suspension, the error code with the instruction for suspension, and the reason for the suspension on the Section 01 print. Example: AC 300, EC 358, Form 965 processing Complete Form 4227, Intra-SC Reject or Routing Slip, if necessary, and attach it to the print of Section 01. Place the print in the area designated for routing electronic return suspense. If the IRM instructs you to assign a TPNC 100, create a paper trail by following these steps. GTSEC 01 of the return in question and print. Complete a TPNC 100 slip or equivalent form when instructed to send more than five TPNC's. Attach the completed form to the print of Section 01. Place the print of Section 01 in the area designated for electronic returns TPNCs 100. If your site is helping the primary site work MeF ERS 100 work, the helping site is required to issue the correspondence and use the primary site's signature code. All Unpostable, Entity, Accounting Function, Review or Reject function issues are the responsibility of the primary site. If a center takes on some inventory from another center, the helping center's CARE analyst works with their campus P&A to establish communications, and arrange how and when the helping center is to transfer returns with TPNC 100 to the primary center. The transfer of returns with TPNC 100 must take place daily. Scanned Paper Returns can be identified in the Employee User Portal (EUP) by the following: The notation Converted from Paper will be present. The attached PDF scan of the original return, IRS Form 1040 Document, will be present. Note: Transcription errors will be present on Scanned Paper Returns. Some fields may contain invalid or incorrect data if the field is blank or illegible during the scanning process. Verify and perfect the fields in IDRS using the attached Form 1040 Scanned Document. Note: Only use the IRS Received Date to determine the Received Date. The Electronic Postmark Date is the date the return was scanned and not the date received.

# Deceased Taxpayer

3.12.2.3.18 (04-24-2025) Deceased Taxpayer If the return is filed by a spouse, personal representative (executor, administrator, fiduciary designee or trustee) or an individual other than the deceased taxpayer, you may have to request documentation to verify the legal right of the filer to submit the return on behalf of the deceased taxpayer. If the surviving spouse filed the return and the filing status code (FSC) is 2, no documentation is needed. Enter the surviving spouse's name in Field 01NL2. ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: To be considered complete, Form 1310 must meet the following requirements: • Signature must be present (paper returns only). • If box A is checked, the return must be FSC 2. • If box B is checked, a copy of the court appointment must be attached. If not attached, correspond for a court certificate. • If box C is checked, Question 2a and 2b in Part II must be answered with "no." If question 2a or 2b is answered with "yes" or left unanswered, correspond for a court certificate. • If box C is checked, Question 3 in Part II must be answered with "yes" unless a court certificate is provided. If Question 3 is answered with "no" or left blank and no court certificate is present, correspond for a court certificate that entitles the person to the refund. Enter or correct Field 01NL1 per IRM 3.12.2.4.3.5 and enter or correct Field 01NL2 if adequate documentation (Form 1310 and/or court certificate) is provided. See IRM 3.12.3.7.3.3 (1) through (8) for assignment of computer condition codes.

# Multiple Filers on the Same Return

3.12.2.3.19 (01-01-2023) Multiple Filers on the Same Return If filers report wages or other income or withholding that doesn't belong to the primary or secondary taxpayer, allow only the income and withholding for the primary or secondary taxpayer. Adjust the return and assign TPNC 112. Note: See IRM 3.12.2.3.21 before adjusting return. If the income and withholding you excluded belongs to a dependent claimed on the return, take the following actions: Detach income and withholding statements from the return. Edit in the left margin "Detached income/withholding document" as appropriate. Take detached documents to lead tax examiner. The lead will complete Form 5260, Quick Note, indicating the documents were removed from another taxpayer's return and if they have not filed a return, they need to do so. Mail the Quick Note and income and withholding statements to the individual listed on the documents. Note: Use the following verbiage on Form 5260, "We have detached the enclosed income and/or withholding statement(s) from your XXXX (XXXX = tax year) tax return. The name(s) on the statement(s) is that of your dependent(s). A separate tax return will need to be filed. If you need more assistance or have any questions, you may call 800-829-0922." If the income and withholding statements do not belong to the primary or secondary taxpayers or the dependents: Note: See IRM 3.12.2.3.21 before taking the following actions. Detach income and withholding statements from the return. Edit in the left margin "Detached income/withholding document" as appropriate. Take detached documents to lead tax examiner. The lead will complete Form 5260, Quick Note, indicating the attached documents were removed from another taxpayer's return and if they have not filed a return, they need to do so. Mail the Quick Note and income and withholding statements to the taxpayer shown on the documents. Note: Use the following verbiage on Form 5260, "We have detached the enclosed income and/or withholding statement(s) from another taxpayer's tax return. If you have not filed a tax return for this tax year, you will need to file your tax return. If you need more assistance or have any questions, you may call 800-829-0922." If a return is received without any income documentation (e.g., Form W-2, Form 1099, etc.) and page 1 and page 2 are two different taxpayers, research using CC ERINV to determine if there is another return currently being processed. If found, associate with return. If research shows no other return is currently being processed, SSPND 640.

# Multiple Tax Periods on the Same Return

3.12.2.3.20 (01-02-2024) Multiple Tax Periods on the Same Return If the taxpayer includes in the tax return income from a tax year different from that of the tax period of the return (e.g., Forms W-2 for more than one tax year, or income statements for another tax period, etc.), allow only the income and withholding for the year of the tax return in hand. Adjust the taxpayer's figures to include only income and withholding for that tax year. Assign TPNC 759. If the taxpayers' return includes page 1 and page 2 from two different tax periods take the following actions: Research and determine if the taxpayer had submitted return for either tax period. If tax period for page 2 is posted, correspond with the taxpayer using fill-in "1" If the tax period for page 2 has not posted and page 1 or page 2 has an original signature, verify all required schedules or forms with an amount present on page 2 are attached and take the following actions: Form 1040: For TY17 and prior, enter line 38 amount in Fields 04OTI, 03TOT, and 03AGI. For all tax years, enter amounts in the appropriate fields to reflect attached forms/schedules (for example Schedule C, Field 0403) if the tax period matches the tax period shown on page 2. Enter N in Field 01RPC (if EC 088 displays, enter C in the Clear Field). Assign all appropriate notice codes. If research indicates that neither tax period's return (page 1 or page 2) has posted, correspond with the taxpayer using fill-in "2" . For all other income and withholding statements that do not belong to that tax period, take the following actions: Detach income and withholding statements from the return. Edit in the left margin "Detached income/withholding document" as appropriate. Take detached documents to lead tax examiner. The lead will complete Form 5260, Quick Note, indicating the attached documents were removed from their return and must be filed on a separate return if they have not been filed for that tax period. Mail the Quick Note and income and withholding statements to the taxpayer shown on the documents. Note: Use the following verbiage on Form 5260, "We have detached the enclosed income and/or withholding statement(s) from your XXXX (XXXX=tax year) tax return. The statement(s) are for a different tax year(s). If you have not filed a tax return for this year, you will need to file your tax return. If the enclosed statements are for more than one year, you will need to file a return for each tax year. If you need more assistance, you may call 800-829-0922."

# Tax Return for an ITIN, Income and Withholding Statements for SSN

3.12.2.3.21 (01-01-2024) Tax Return for an ITIN, Income and Withholding Statements for SSN Some undocumented workers work under an SSN and receive income and withholding statements from employers in the name and SSN of the holder of the SSN, and they attach those documents to their tax return. They file their tax return under their name and ITIN. Accept these returns. Do not correspond because of the discrepancy between the name and SSN in the income and withholding statements and the name and ITIN in the return. Allow the income and withholding and process the return according to procedures. Pursue discrepancies between the income and withholding statements and the corresponding figures in the return according to normal procedures. Do not consider the returns suspect.

# Section 01, Entity And Miscellaneous Information

3.12.2.4 (01-01-2017) Section 01, Entity And Miscellaneous Information Section 01 includes the following information.

# Error Record Format, Section 01

3.12.2.4.1 (01-01-2026) Error Record Format, Section 01 Section 01 contains the following fields: Form 1040 Field Name Field Location 01PNC Primary Name Control Entity Area 01PS Primary SSN Entity Area 01SNC Secondary Name Control Entity Area 01SS Secondary SSN Entity Area 01NL1 Name Line 1 Entity Area 01NL2 Name Line 2 Entity Area 01ADD Street Address Entity Area 01C/S City/State Entity Area 01ZIP ZIP Code Entity Area 01MUS Main Home in U.S. Indicator TY25, below spouse's SSN 01TXP Tax Period Page 1 of tax return 01SPC Special Processing Code Page 1 of tax return 01FSC Filing Status Code Page 1 of tax return 01CCC Computer Condition Code Page 1 of tax return 01EXC Exemption Code Field Page 1 of tax return 01RCD Received Date Page 1 of tax return 01FPC Forms Processing Code Page 1, right of line 7 01RPC Return Processing Code Field Page 1, bottom left margin 01ACD Audit Code Page 1, bottom right margin 01PEF PECF-CD Page 1, right of entity 01DAC Digital Assets Code Page 1, below entity

# Entity Information

3.12.2.4.2 (06-23-2021) Entity Information The entity area consists of the taxpayer's name, address and SSN. The taxpayer's name, address and SSN (Fields 01PNC through 01ZIP) are transcribed as short entity, partial entity, intermediate entity, or long entity. The following table contains Entity types: Entity Type Field Used Description A] Short - 01PNC 01PS 01SS Return that agrees with EIF for name, address or primary SSN. B] Partial - 01PS 01SS 01NL1 01NL2 Return with changes in first or second name line. C] Intermediate - 01PNC 01PS 01SS 01ADD 01C/S 01ZIP Return with changes in any part of the street, address, city/state or first five digits of the ZIP Code. EIF indicates a change of address. D] Long - 01PNC 01PS 01SS 01NL1 01NL2 01ADD 01C/S 01ZIP Return with a change in the primary SSN. Return with a change in both the name and address. Return that does not agree with EIF for primary SSN, name or address. Return when ISRP cannot use EIF. Entity Control Function has changed the primary SSN or has assigned a temporary number. Note: Processing will enter the secondary SSN, if present, at the NAP file when FSC is 2 and the secondary SSN field is blank (i.e., short or intermediate entity). Prisoner Returns: If Code and Edit has underlined part of the entity information at the top of the return, that is an indication it is to be transcribed. If not present, search the return packet for indications that the taxpayer is incarcerated; if found, enter the Prisoner ID in Field 01NL2 to correct the error. Common indications of incarceration include (but are not limited to): A Prisoner ID number following the taxpayer's name A return address in a correctional facility A stamp on the envelope indicating prisoner correspondence A taxpayer statement

# Correction Procedures

3.12.2.4.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 01 fields follow.

# Field 01PNC, Check Digits/Name Control

3.12.2.4.3.1 (01-01-2017) Field 01PNC, Check Digits/Name Control Correction procedures for check digits and name control follow.

# Check Digits

3.12.2.4.3.1.1 (01-03-2017) Check Digits A check digit is a unique two-digit field that identifies the taxpayer from previous filings. The ERS screen will show the check digits as a four-position field, the first two positions being blank and the second two filled with alpha digits. The Check Digit Field is located in the entity portion of the paper return. This field will be invalid if any of the following exist: First two positions are not blank. Third and fourth positions are not alpha characters. Additional validity checks by the computer. Correction Procedures: Enter the name control in Field 01PNC when the check digits are invalid. Refer to Document 7071, Name Control Job Aid, or IMF ERS Job Aid Book 2515-015. If an ITIN is written in red on the return, use the name control entered in red ink. Caution: NEVER ENTER OR CORRECT CHECK DIGITS.

# Name Control

3.12.2.4.3.1.2 (02-08-2021) Name Control Name control is a four-position field located in the entity portion of the return and consists of the first four letters of the primary taxpayer's last name. This field will be invalid if any of the following exist: First position is not an alpha. The second, third, or fourth positions are not alphas or blank. Blanks are between characters. Correction Procedures: Compare the field with the return and overlay the correct name control. Blank the remaining positions when the primary taxpayer's last name is less than four characters. Refer to Document 7071, Name Control Job Aid. If an ITIN is written in red on the return, use the name control entered in red ink.

# Field 01PS, Primary Social Security Number

3.12.2.4.3.2 (01-31-2025) Field 01PS, Primary Social Security Number Every primary taxpayer must have a taxpayer identification number (TIN). That TIN may take several forms: a social security number (SSN), individual taxpayer identification number (ITIN), or IRS number (IRSN). In this IRM, SSN is often used in a collective sense and may refer to any one of the three kinds of TIN. The IRSN may be referred to as a temporary TIN. The IRS issues the ITIN and IRSN. The Social Security Administration issues the SSN. The SSN and ITIN may be valid or invalid. The IRSN is always invalid. Each of these TINs is nine digits long and has the same format: XXX-XX-XXXX. The ITIN and IRSN always begin with the number 9. The SSN does not begin with the number 9. The fourth and fifth digit of the ITIN and IRSN are restricted to certain values. The valid ranges for the fourth and fifth digit of the ITIN are 50 through 65, 70 through 88, 90 through 92, and 94 through 99. The ranges are listed below. 9XX-50-XXXX through 9XX-65-XXXX 9XX-70-XXXX through 9XX-88-XXXX 9XX-90-XXXX through 9XX-92-XXXX 9XX-94-XXXX through 9XX-99-XXXX The values for the fourth and fifth digit of the IRSN are listed below. The fourth and fifth digit of the IRSN identify the center that issued the IRSN. The Fresno Service Center would have issued an IRSN in the format 9XX-89-XXXX and Kansas City one in the format 9XX-09-XXXX, for instance. 08 and 38: Andover 07 and 37: Atlanta 18 and 06: Austin 19 and 01: Brookhaven 17 and 02: Cincinnati 89 and 10: Fresno 09 and 39: Kansas City 49 and 03: Memphis 29 and 04: Ogden 28 and 05: Philadelphia 66: Austin ONLY, IRSN for international returns Note: There is a fourth kind of TIN, the Adoption taxpayer identification number (ATIN). It is possible that a primary taxpayer would have an ATIN, but it's unlikely, and therefore isn't described above. Like the other TINs, it's nine digits long and divided into three groups of digits: XXX-XX-XXXX. Like the ITIN, it always begins with a 9, but unlike the ITIN, its fourth digit is always 9 and its fifth digit always 3: 9XX-93-XXXX. This entry in the field is invalid in any of these conditions: The entry has fewer than nine numeric characters. The entry contains other than numeric characters. The field is blank. Search the return, attachments, and Form(s) W-2 for a primary SSN (P-SSN) when the entry in Field 01PS is invalid as outlined in IRM 3.12.2.4.3.2 (2) above. If you cannot find the P-SSN in the return or attachments, research with CC NAMEI, NAMES, and INOLE for P-SSN. In AUSPC, research with RTS for the primary taxpayer's ITIN. Take the following action to correct the field: If after research, the P-SSN is Then A] Found, Enter in Field 01PS. B] Not Found, SSPND 211 to correspond. Exception: Conditions such as taxpayer having "Amish" , "Mennonite" , "none" , "SSN Applied For" , "NRA" , "SSA 205(c)" , or all nines or zeros entered indicates that the person may be eligible to obtain an ITIN. SSPND 320 to have an IRSN assigned by Entity. Note: Check for the presence of Form W-7. If present, see Exhibit 3.12.2-12 for routing. Note: When returns come back from Entity with an IRSN, enter O in Field 01RPC and 0 (zero) in the first position of Field 94EXV if applicable. If the taxpayer indicates that they are Amish or Mennonite, don't enter O in Field 01RPC or 0 (zero) in the first position of Field 94EXV. Do enter B in Field 01RPC though. SSPND 351 when IDRS is unavailable. FOR AUSPC ONLY- If the return has an ITIN, written in red ink and W-7 is stamped in the bottom left hand corner of the return, follow the instruction in the following table: Note: An ITIN begins with "9" and the fourth and fifth numbers range from 50-65, 70-88, 90-92, and 94-99; (9XX-50-XXXX through 9XX-65-XXXX), (9XX-70-XXXX through 9XX-88-XXXX), (9XX-90-XXXX through 9XX-92-XXXX), or (9XX-94-XXXX through 9XX-99-XXXX). When a TIN begins with "9" and the fourth and fifth digits are "66" (9XX-66-XXXX), it is used for international IRSN only. If Then A] The ITIN Operation stamped or wrote rejected for the primary taxpayer, SSPND 320 to Entity Control for a temporary number. If a red temporary number is already written (9XX-18-XXXX) on the return with a number that has 18 in the fourth and fifth position of the TIN Field, process using the IRSN. See Note below. B] No primary ITIN is written, but RTS research shows Form W-7 in status S or U (Suspended or Unworked), Print the RTS screen and attach the print to the front of the return. SSPND 640 to ITIN. Indicate the status on Form 4227. C] Original W-7 attached to return, SSPND 640 to ITIN. Write W-7 attached on Form 4227. Note: When returns come back from Entity with temporary numbers, enter O in Field 01RPC and 0 (zero) in the first position of Field 94EXV if applicable.

# Field 01SNC, Secondary Name Control

3.12.2.4.3.3 (06-28-2017) Field 01SNC, Secondary Name Control The secondary name control is a four-position field consisting of the first four letters of the secondary taxpayer's last name. If the last name contains fewer than four characters, the name control will be shorter than four characters. This field will be invalid if any of the following exist: First position is not an alpha. The second, third, and fourth positions are not alphas, hyphens, or blank. Blanks occur between characters. Correction Procedures - Compare the field with the return and overlay the correct name control. Blank the remaining positions when the secondary taxpayer's last name is less than four characters. If the FSC is 3, the secondary name control must not be present. Delete the secondary name control from Field 01SNC. Refer to Document 7071, Name Control Job Aid, or Job Aid Book 2515-015.

# Field 01SS, Secondary Social Security Number

3.12.2.4.3.4 (01-01-2026) Field 01SS, Secondary Social Security Number A secondary social security number (S-SSN), consisting of nine numbers, may be present on FSC 2, 3, and 6 returns, and must not be present on FSC 1, 4, or 5 returns. Note: Any reference to an SSN will also include the ITIN. The S-SSN is required when any of the following exist: Primary taxpayer is deceased and it is a joint return. Self-Employment (SE) Tax is being paid for the secondary taxpayer on Schedule SE. Schedule H is filed for the secondary taxpayer. Form 4137 tax is being paid for the secondary taxpayer. Form 5329, is filed for the secondary taxpayer. Form 8606 is filed for the secondary taxpayer. Form 8919 tax is being paid for the secondary taxpayer (TY07 and later). Form 8941 is being filed and unable to determine who is filing the form (TY14 and later). Note: See action to take in (4)C] when S-SSN is required and not found. This field will be invalid if fewer than 9 numeric characters are present. Search the return, attachments, and Forms W-2 for an S-SSN when the entry in Field 01SS is invalid. If you cannot find the S-SSN in the return or attachments, research with CC ENMOD and/or INOLE for a cross-reference with the P-SSN. Verify the cross-reference SSN with INOLE to ensure it is the same taxpayer. If a cross-reference is not found, research CC NAMEI and/or NAMES for the correct S-SSN. In AUSPC, research with RTS for the secondary taxpayer's ITIN. Take the following action to correct the field: If after research, an S-SSN is And Then A] Found, Enter in Field 01SS. B] Not found, Not required [see the preceding (2)], Delete any invalid data in Field 01SS. Note: Request the S-SSN if other correspondence is needed. C] Not found, Is required [see the preceding (2)], SSPND 211 to correspond. Exception: Conditions such as taxpayer having "Amish" , "Mennonite" , "none" , "SSN Applied For" , "NRA" , "SSA 205(c)" , or all nines or zeros entered indicates that the person may be eligible to obtain an ITIN. SSPND 320 to have an IRSN assigned by Entity. Note: Check for the presence of Form W-7. If present, see Exhibit 3.12.2-12. AUSPC only: If the ITIN Operation stamped or wrote rejected for the secondary taxpayer, SSPND 320 to Entity for a temporary number, if required as listed in IRM 3.12.2.4.3.4 (2). When IDRS is not available, SSPND 351. When return is a No Reply to an IRS request for a valid SSN or non-compliance because of religious beliefs and the S-SSN is required, SSPND 320 to have a temporary SSN assigned by Entity.

# Field 01NL1, First Name Line

3.12.2.4.3.5 (01-01-2026) Field 01NL1, First Name Line The first name line is thirty-five spaces long. If the name line exceeds 35 spaces, a pound sign, # (paper return only), will fill the final position. This field will be invalid if any of the following exist: Characters are not alpha, ampersand, hyphen, less-than sign (<), or blank. The less-than sign is not present. More than two less-than signs are present. The first character is a less-than sign, blank, or ampersand. The last character is a less-than sign. The character immediately following the first less-than sign is not an alpha. A blank immediately precedes a less-than sign. Two or more consecutive embedded blanks are present. An ampersand occurs between two less-than signs. Two or more ampersands are present. An ampersand is present in Field 01NL1 and the Document Code is 72 or 73. Compare the fields displayed with data on the return. Correct any editing and transcription errors. Note: Do not enter information beyond column 41 of the ERS screen display. Delete all titles such as Mr., Dr., Reverend, etc. Exception: Do not delete Mrs. when a woman is using her spouse's name such as "Mrs. John Brown" . Use the following chart as a guide to correct various error conditions in the First Name Line: Error Condition Correction A] Joint return, different last names. Less than sign before and after primary taxpayer's last name. Example: 01NL1 JOHN A<WHITE<& JANE B GREEN B] Joint return with JR, SR or Roman numeral suffix. Enter JR, SR, or Roman numeral suffix where shown or edited on the document. Example: 01NL1 JOHN A SR & JANE M<WHITE Example: 01NL1 RED G & OLIVE<BROWN<IV Example: 01NL1 AZURE J<GOLD<III & TAN F SILVER JR C] Joint return, one person deceased, same last name. Enter DECD after the first name and/or initial of the deceased taxpayer. Example: 01NL1 JOHN A & JANE B DECD<WHITE D] Joint return, one person deceased, different last names. Enter DECD after the last name of the deceased taxpayer. Example: 01NL1 JOHN A<WHITE<& JANE B GREEN DECD Example: 01NL1 JOHN A<WHITE<DECD & JANE B GREEN E] Joint return, both taxpayers deceased, same last name. Enter DECD after the first name and/or initial of each taxpayer. Example: 01NL1 JOHN A DECD & JANE B DECD<WHITE F] Joint return, both taxpayers deceased, different last names. Enter DECD after each last name. Example: 01NL1 JOHN A<WHITE<DECD & JANE B GREEN DECD G] Joint return and JR, SR or other suffix with deceased. Enter the suffix (e.g., JR, SR, or Roman numeral) before DECD or after the last name. Example: 01NL1 JOHN A JR DECD & JANE M<WHITE Example: 01NL1 RED G & OLIVE DECD<BROWN<IV Example: 01NL1 AZURE J III<GOLD<DECD & TAN F JR SILVER DECD H] Other than joint return and deceased. Enter DECD after the last name of the deceased taxpayer. Example: 01NL1 JOHN A<WHITE<DECD I] No first name or taxpayer with only one name. Enter a hyphen preceding the less-than (<) sign. Example: 01NL1 -<WHITE J] When in-care-of (%). Transcribe in second name line using C/O. Example: 01NL2 C/O GRAY B BLUE K] For Minor/Child Name Line. Enter MINOR after last name. L] For deceased Minor/Child Name Line. Enter DECD after last name. Note: Research IDRS when the first name line is not present or incomplete. Enter as Short Entity if not found. See IMF Job Aid 2515-015 for more information. When the name is longer than 35 spaces, abbreviate the entry in Field 01NL1 according to the priority below. When you complete the step that reduces the name to 35 or fewer spaces, stop editing the name. Shorten the secondary taxpayer's middle name to the initial. Shorten the primary taxpayer's middle name to the initial. Delete the secondary taxpayer's second initial. Delete the primary taxpayer's second initial. Shorten the secondary taxpayer's first name to the initial. Shorten the primary taxpayer's first name to the initial. Note: Use initials only for primary and secondary taxpayers' first name if the total characters will exceed the maximum of 35. Note: The computer will drop off anything after column 41.

# Field 01NL2, Second Name Line

3.12.2.4.3.6 (05-22-2025) Field 01NL2, Second Name Line The second name line is 35 spaces long. If the entry in Field 01NL2 exceeds 35 spaces or the second name line is missing on a decedent return, a pound sign, # (paper return only), will be present. Names preceded by the in-care-of sign, %, are transcribed in Field 01NL2. When the entity is Long or Partial and a second name line is present, the first name line must be present. When Field 01CCC contains an L or W, the second name line must be present if the entity is partial or long. CCC L or W is required only on refund or non-compute returns. If CCC L or W is not required, GTSEC 01, delete the code from Field 01CCC and delete the pound sign from Field 01NL2. If CCC L or W is required, follow the procedures below: Note: Second name line is not required if a balance due or zero balance return. Search return for a court certificate or a properly completed Form 1310 per requirements in IRM 3.12.2.3.18. If adequate documentation (Form 1310 and/or court certificate) is found, enter the second name line in Field 01NL2. Exception: If FSC 2 and the refund is being claimed by the surviving spouse, documentary evidence is not required. Enter the surviving spouse's name in Field 01NL2. If other than FSC 2 and the refund is being claimed by the surviving spouse, follow the procedures below. If adequate documentation is not found ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, SSPND 211. Prepare Form 6001 using paragraph D. If adequate documentation is not found ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, SSPND 211. Prepare Form 6001 using paragraph g with fill-in #3. If not a refund or non-compute return, delete the pound sign (#). This field will be invalid if any of the following exist: Characters are not alpha, numeric, ampersand, hyphen, percent, slash, or blanks. A pound sign fills the final position because the name is longer than 35 characters (paper return only). Examine the return and determine the type of entity when Field 01NL2 requires correction. See Job Aid Book 2515-015 for a list of acceptable abbreviations. Note: Do not enter information beyond column 41 of the ERS screen display. If you have to reduce the number of characters, refer to the steps for abbreviation in IRM 3.12.2.4.3.5 (6).

# Field 01ADD, Street Address

3.12.2.4.3.7 (01-01-2017) Field 01ADD, Street Address Street address in Field 01ADD contains 35 characters. If more than 35 characters (including spaces), the last position will display with a # sign (paper return only). This field will be invalid if any of the following exist: Characters are not alpha, numeric, hyphen, slash, or blanks. Pound (#) sign in last position (over 35 characters, paper return only). When Field 01ADD is present, the first position must be alpha or numeric, and there cannot be consecutive embedded blanks/spaces. Use the following rules when entering the street address in Field 01ADD from the return or attachments: If the address Then A] Has % or in-care of, Use C/O. B] Has One-half, Use 1/2. C] Has &, Use AND. D] Has a pound (#) sign, abbreviation No., or the word number as a prefix to a house, street, route, apt, or Post Office Box (PO Box), Omit the pound (#) sign, abbreviation No, or word number. E] Has an apartment number, Enter the abbreviation "APT" before the alpha or numeric. Enter both street address and apartment number in Field 01ADD. F] Includes both a street address and a PO Box number, Enter the street address in Field 01NL2. Enter the PO Box in Field 01ADD. G] More than 35 characters and all of the address is necessary, Correct as long entity. Start address in Field 01NL2. Separate the address in a comprehensible manner. H] Has consecutive embedded spaces, Delete the consecutive embedded blanks/spaces. Note: Do not enter information beyond column 41 of the ERS screen display.

# Field 01C/S, City and State

3.12.2.4.3.8 (04-29-2019) Field 01C/S, City and State City/State Field is 25 characters. Data may be the city-state or a major city code (MCC). APO/DPO/FPO will be used as the city name for military addresses and is only be used with state codes AA, AE, or AP in the following format: Field 01C/S Field 01ZIP APO/AE 090XX-099XX APO/AP 962XX-966XX APO/AA 340XX Note: DPO or FPO can be substituted for APO in the preceding chart. They use the same state and ZIP code ranges. APO/DPO/FPO filers are instructed to file at AUSPC; however, if received at a different center, process as normal. If the ZIP code is missing, enter the first three digits that apply to the state code and enter "01" as the last two digits. This field will be invalid when any of the following apply: Any character is other than alpha or blank (the slash is used only to separate the city and state for the computer). The slash is not preceded by at least three valid characters. The slash is followed by something other than two alpha characters. City/State or major city code is present and the first position is blank. The state is not contained in the following state code table: State Codes State Codes AA - APO/FPO Atlantic MS - Mississippi AE - APO/FPO Europe MO - Missouri AL - Alabama MT - Montana AK - Alaska NE - Nebraska AP - APO/FPO Pacific NV - Nevada AZ - Arizona NH - New Hampshire AR - Arkansas NJ - New Jersey CA - California NM - New Mexico CO - Colorado NY - New York CT - Connecticut NC - North Carolina DE - Delaware ND - North Dakota DC - District of Columbia OH - Ohio FL - Florida OK - Oklahoma GA - Georgia OR - Oregon HI - Hawaii PA - Pennsylvania ID - Idaho RI - Rhode Island IL - Illinois SC - South Carolina IN - Indiana SD - South Dakota IA - Iowa TN - Tennessee KS - Kansas TX - Texas KY - Kentucky UT - Utah LA - Louisiana VT - Vermont ME - Maine VA - Virginia MD - Maryland WA - Washington MA - Massachusetts WV - West Virginia MI - Michigan WI - Wisconsin MN - Minnesota WY - Wyoming Compare the screen display with the entry on the return. Correct the field display when a field was transcribed incorrectly. GTSEC 01 and correct all fields in the section when there is a slipped field (when transcription inputs an entry on the wrong line resulting in all subsequent entries for the section being input on wrong lines). See IRM 3.12.2.3.7 on international returns. Use the following table to correct a field error: If the City/State Then A] Exceeds 25 characters, Consult the lead tax examiner or manager. B] Is missing and is required, Enter data for short entity only. C] Has more than one address and one is a permanent address, Use the permanent address. D] Is a temporary foreign address, Consult your manager or lead tax examiner to determine if a manual refund is required per IRM 3.12.37. E] Contains numeric characters, Convert to alpha characters (e.g., 1000 Oaks to Thousand Oaks). F] Contains ampersand (&), Convert to AND.

# Field 01ZIP, ZIP Code

3.12.2.4.3.9 (01-01-2024) Field 01ZIP, ZIP Code The field for the ZIP Code is a numeric five-character field. An entry in the field is invalid in any of the circumstances below. It's not numeric; not 0 (zero) through 9. It's fewer than five digits long. It's blank. Its fourth and fifth character are 00. Correction Procedures. Search the return and attachments for the ZIP Code when it is incorrect or not present. Use the following table to correct the field error: If a ZIP Code is And Then A] Found, Is for that address, Enter the correct five-digit ZIP Code in Field 01ZIP. B] Found, Is not for that address, Determine the three-digit code for the address and enter it in Field 01ZIP. Refer to Exhibit 3.12.2-11, and enter the first three-digit code that applies to the state code. Enter 01 in the fourth and fifth position of Field 01ZIP. C] Not found, The address is an APO, DPO, or FPO, Enter the ZIP Code according to this table. AE: 09001 AP: 96201 AA: 34001 D] Not found, The address is not a APO, DPO, or FPO, Determine the three-digit code for the address and enter it in Field 01ZIP. Refer to Exhibit 3.12.2-11, and enter the first three-digit code that applies to the state code. Enter 01 in the fourth and fifth position of Field 01ZIP. Note: DO NOT USE a center ZIP Code or an APO/DPO/FPO ZIP Code for a non-APO/DPO/FPO address. Use only the first five digits of the ZIP Code.

# Field 01MUS, Main Home in United States Indicator

3.12.2.4.3.10 (01-01-2026) Field 01MUS, Main Home in United States Indicator For TY25, Field 01MUS will be entered from the checkbox on page 1 of Form 1040, below the Spouse's social security number, "Check here if your main home, and your spouse's if filing a joint return, was in the U.S. for more than half of 2025." Field 01MUS will be invalid if other than 0 or 1. The valid values are: 0: Default value 1: Box is checked indicating main home was in the U.S. for more than half of 2025. For TY24 and prior, delete any entry in Field 01MUS.

# Field 01TXP, Tax Period

3.12.2.4.3.11 (01-01-2025) Field 01TXP, Tax Period Field 01TXP, Tax Period, holds the tax year and the ending month of the period. The tax period is in the format YYYYMM. The current period is never transcribed for current-year returns. It is transcribed for prior- and fiscal-year returns. Process Form 1040 as current year when the tax period is not less than 202512 or more than the current year and month. Process Form 1040 as prior year when the tax period is 196212 - 202511. Field 01TXP will also be invalid when any of the following exist: Return is for a non-ADP tax period, before 196212. Return shows a future tax period later than the current year and month. Verify the tax period on the return or attachments and correct any coding or transcription errors. Use the following table to correct field errors: If the tax period is Then A] 202512 (current), Blank Field 01TXP; the programming generates 202512. B] Before 196212 SSPND 620. Attach Form 4227 and note Non-ADP tax year. C] Future period: later than current year and month Refer to lead tax examiner. See the exception below. Exception: Refer to EC 260 when the return is an early filed decedent return. (Also refer to EC 002, EC 042 and EC 046.)

# Field 01SPC, Special Processing Code

3.12.2.4.3.12 (01-01-2026) Field 01SPC, Special Processing Code A special processing code (SPC) is an alphabetic or numeric character that flags a condition or triggers a computation. The number of SPCs in a return may not exceed ten. SPCs are edited vertically in the right margin on Form 1040 between the secondary SSN and the Presidential Election Campaign boxes. These codes are used for center processing and are not posted to the Master File. These codes supplement the return processing codes. The valid characters for Field 01SPC on Form 1040 (Doc Code 05, 06, 11, 12, 21 or 22) are 0, 1, 2, 3, 4, 5, 6, 7, 9, A, B, C, D, E, F, G, H, J, K, L, M, N, P, Q, R, S, T, V, X, Y or Z. Any other entry will display as a field error. Note: SPC "M" is for RICS use only. Do not remove. Take the following actions to correct Field 01SPC: Correct coding and transcription errors. Determine and enter the correct SPC (if necessary). See Exhibit 3.12.2-4, Special Processing Code, for a list of explanations. Blank the field when the SPC is illegible and/or you cannot determine the correct SPC from the explanations in Exhibit 3.12.2-4. Exception: If SPC "M" is present, do not remove the code when edited by RICS. Exhibit 3.12.2-4 to determine the correct codes.

# Field 01FSC, Filing Status Code

3.12.2.4.3.13 (01-01-2023) Field 01FSC, Filing Status Code The filing status code (FSC) for Form 1040 is determined by the filing status checked by the taxpayer (FSC 1 through 5; or FSC 6 or 7 coded by Code and Edit). The meaning of the FSCs are as follows: Code 1: Single taxpayer Code 2: Married taxpayer filing a joint return Code 3: Married taxpayer filing a separate return and spouse is also filing a separate return Code 4: Head of Household, for a dependent/exemption claimed in position 3, 5, 6, or 7 of Field 01EXC Code 5: Widow(er) with or without dependent child, see EC 034. Code 6: Married taxpayer filing a separate return but claims a spouse as a dependent/exemption who has no income and who is not filing a return Code 7: Head of Household, for taxpayers who don't claim a dependent/exemption but write a child's name on Form 1040, or show a qualifying child on Form 2441, Form 8814, or Schedule EIC. Note: For TY18 and later, taxpayers write a qualifying child's name in the space provided in filing status area after Qualifying Surviving Spouse. For TY17 and prior, taxpayers write a qualifying child's name on line 4 of Form 1040. Note: Taxpayers who write a name in the space provided in filing status area don't have to provide a TIN for the qualifying child. The qualifying child on Form 2441, Form 8814 or Schedule EIC must have a valid TIN for the taxpayer to qualify for this variant of the filing status Head of Household or Widower. The entry in this field is invalid if it's not 1 through 7 for Form 1040. Use the following table to code Field 01FSC: If And Then A] The taxpayer checked no boxes, There is one name in caption, Enter 1 in Field 01FSC. B] The taxpayer checked no boxes There are two names in caption, Enter 2 in Field 01FSC. C] Multiple boxes are checked or the FSC is inconsistent with information on return, Use FSC that corresponds with taxpayer's taxable income and tax computation (see note). Note: Before determining the FSC, verify that taxpayer meets the qualifying criteria in the filing status chart. Refer to the Filing Status Chart located in the ERS Job Aid Book 2515-015. Research IDRS using CC INOLE/RTVUE to determine filing status in prior year(s), if necessary. When the correct FSC cannot be determined, SSPND 211 for Form 5129.

# Field 01CCC, Computer Condition Codes (CCC)

3.12.2.4.3.14 (01-01-2026) Field 01CCC, Computer Condition Codes (CCC) Computer Condition Codes (CCC) are alpha and/or numeric character(s) edited by Code and Edit to alert the computer and Master File to a special condition. Some CCCs are also generated by the computer. A CCC will post to the Master File. The number of CCCs may not exceed ten. On TY25 Form 1040, CCC is edited to the right of Head of household filing status check box. On TY24 - TY18, Form 1040, CCC is edited in the spouse standard deduction area next to "spouse itemizes" checkbox. The valid characters for Field 01CCC on Form 1040 (Doc Code 05, 06, 11, 12, 21 or 22) are 1, 2, 3, 4, 5, 6, 7, 8, 9, A, B, C, D, E, F, G, H, J, K, L, M, N, O, P, Q, R, U, V, W, X, Y, and Z. Any other entry will display as a field error. Take the following actions to correct Field 01CCC: Correct coding and transcription errors. Determine and enter the correct CCC (if necessary). See Exhibit 3.12.2-2, Computer Condition Codes, for a list of explanations. Blank the field when the CCC is illegible and/or you cannot determine the correct CCC from the explanations in Exhibit 3.12.2-2. . Note: When CCC 3 is required, it must be in the first position. SSPND 610 for renumbering when a Form 1040-X has a CCC 5 or 6 preceded by a CCC G and is not in blocking series 990-999 or vice versa. Note: CCC 5 or 6 must always be preceded by a CCC G.

# Field 01EXC, Exemption Codes, 8 positions

3.12.2.4.3.15 (04-05-2024) Field 01EXC, Exemption Codes, 8 positions TY18 and later, the exemption amount that can be claimed is $0. Exemption coding in Field 01EXC is retained for determining family size in certain calculations. Exemption code(s) support the exemption(s) claimed by the taxpayer. Refer to the exemption code chart located in the ERS Job Aid 2515-015. Exemption descriptions are as follows: Placement of the code within the field identifies the exemption(s). The exemption code is computer generated for positions 1 (primary taxpayer) and 2 (secondary taxpayer). Code and Edit determines exemption positions 3 through 8. Exemption positions 3 through 8 (TY17 and prior, positions 5 through 8) are edited in the margin to the right of the dependents section. Note: Make corrections to Field 01EXC for editing and transcription errors only. For MeF returns, do not make changes to Field 01EXC based on the description of exemption positions. The following are the descriptions of exemption positions used by Code and Edit: Position 3: Child, son, daughter, grandchild, grandson, granddaughter, adopted child, adopted son, adopted daughter, stepchild, stepson, stepdaughter. Position 4: Child who did not live with the taxpayer because of divorce or separation (TY17 and prior). Position 5: Parent, father, mother, grandparent, grandfather, grandmother, stepparent, parent-in-law, mother-in-law, father-in-law. Position 6: Qualifying child (e.g., foster child, sibling, brother, sister, sibling's child, niece, nephew, step-sibling, half-sibling, half-brother, half-sister, ward). Position 7: Other relationships not included in Position 3, 5, or 6, such as parent's sibling, uncle, aunt, cousin, son-in-law, daughter-in-law, friend, boyfriend, girlfriend, NRA spouse and FSC 4 with other exemptions, dependents who did not live in the U.S. except for parent relationships ("NRA" /"SSA 205c" , "Canada" , "Mexico" , "CN" , or "MX" ), or no relationship indicated. Position 8: Excess dependents (overflow). This field will be invalid when any of the following exist: The field is all blank. The field contains other than numerics. Position one is other than 1. The correction input does not have every position entered. Position two is other than 0 (zero) or 1. Take the following actions to correct the field error: Correct transcription and/or coding errors. Determine the correct exemption coding from the information on the return. Enter an entry in each position of the field. Only allow the exemptions that are supported by name if used in the tax computation.

# Field 01RCD, Received Date

3.12.2.4.3.16 (01-01-2026) Field 01RCD, Received Date The received date is the date that a return was received by the IRS. For TY25, the received date is edited by hand to the right of Head of Household filing status checkbox. For TY24 - TY18, received date is edited by hand in dependent's name area on Form 1040. For TY17 and prior, the received date is edited by hand to the right of line 6d Form 1040, or The received date is stamped near the center of Form 1040 by a center, area office, territory office. The city and functional area within the site (e.g., CSCO, Exam, ICT, CII, AM), must be in the date stamp too, or The received date is stamped in the lower left corner of the return by Lockbox. The received date must be entered in Field 01RCD in the format YYYYMMDD: YYYY = year, MM = calendar month, and DD = day of the month. Caution: The received date will not always appear in the location mentioned above. Accept the earliest received date as long as it is determined to be an IRS received date. Do not use a received date that has been circled, which indicates another function has determined that the date is not valid. Follow the instructions in IRM 3.12.2.4.3.16 (9) for determining the received date if the other function has not provided a corrected received date. The entry in Field 01RCD is invalid when it is: not numeric or blank or not in the format YYYYMMDD or earlier than 19630101 or later than the current processing date Field 01RCD will also be invalid if the date is not within the following valid month and day ranges: Month Day 01 (January) 01-31 02 (February) 01-28 (29 in leap year) 03 (March) 01-31 04 (April) 01-30 05 (May) 01-31 06 (June) 01-30 07 (July) 01-31 08 (August) 01-31 09 (September) 01-30 10 (October) 01-31 11 (November) 01-30 12 (December) 01-31 The received date cannot be any of the following: later than the date of the error record shown in the title line. earlier than the ending month and year of the tax period in Field 01TXP. Field 01RCD must hold a valid received date in YYYYMMDD format. Correct data in Field 01RCD using the procedures below when the transcribed date is invalid. Consider the return filed on time and enter the return due date in Field 01RCD when all of the following conditions exist: The return was originally received on time. Code and Edit or ITIN corresponded with the taxpayer. No received date is stamped or edited on the return. The current date is later than the return due date. Received Date not present: Determine the received date by the following priorities when a valid date is not stamped on the return or a valid handwritten received date is not present: Note: See IRM 3.12.2.4.3.16 (11) for exceptions. Latest postmark on the envelope (post office mark) or the latest date from a designated private delivery service (PDS) mark. When the envelope or label is not attached, use the postmark date stamped or handwritten on the return to determine the received date. Note: See IRM 3.12.2.4.3.16.1 for determining a valid post office mark or IRM 3.12.2.4.3.16.2 for determining a valid PDS mark. Caution: Some stamps and labels show the date of sale. Do not confuse the date of sale with the date of use. Use only the cancellation date of the stamp or label for the latest postmark. Service Center Automated Mail Processing System (SCAMPS) digital dates. Latest date by the taxpayer's signature(s). Note: For prior-year returns, use the signature date only if it is within the current year. Note: Do not use the date of the tax preparer's signature. Julian date in the DLN minus 10 days Note: Do not accept the date generated by the sending fax machine on an original return. Review the return for the words "Sent Back for Signature" or a similar statement with a date present in the lower left corner of the return. These are returns that were originally received without a signature and were mailed back to the taxpayer from Receipt and Control. If a date and the phrase "Sent Back for Signature" are present, follow the instructions below for determining the received date: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Use the following table for processing exceptions to correcting the received date: If the return Then A] Is a current year return which was filed on time, Correct the data in Field 01RCD per priority in (9) above. B] Has multiple received dates, Enter the earliest date in Field 01RCD. Exception: Use the latest date when the earliest date is before the end of the tax period. C] Is a renumbered non-remittance, Enter the calendar date of the Julian date in the original DLN minus 10 days. D] Is a renumbered remittance, Enter the calendar date of the Julian date in the original DLN. E] Is being filed after a timely filed MeF return was rejected (as noted by the taxpayer) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter 20260415 in Field 01RCD. If a return was mailed to a state taxing agency: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the received date in Field 01RCD.

# Post Office Marks

3.12.2.4.3.16.1 (01-01-2017) Post Office Marks Valid United States Postal Service (USPS), foreign country postmarks, USPS private meter marks, or private meter marks are: Postage Validation Imprinter (PVI) labels displaying the USPS eagle Killer bar strips or other cancellation marks with a date, city, and state USPS Metered postmarks Private Metered Marks (identified by the absence of "USPS" in the postmark).

# Private Delivery Service (PDS) Marks

3.12.2.4.3.16.2 (01-01-2018) Private Delivery Service (PDS) Marks Designated Private Delivery Services (PDS) are in the following list: United Parcel Service (UPS) UPS Next Day Air Early AM • UPS Next Day Air • UPS Next Day Air Saver • UPS Second Day Air • UPS Second Day Air A.M. • UPS Worldwide Express • UPS Worldwide Express Plus Federal Express (Fed Ex) • FedEx First Overnight • FedEx Priority Overnight • FedEx Standard Overnight • FedEx 2 Day • FedEx International First • FedEx International Next Flight Out • FedEx International Priority • FedEx International Economy Note: Do not use "Fed Ex Powership 3" labels for determining the mail date. DHL Express: • DHL Express 9:00 • DHL Express 10:30 • DHL Express 12:00 • DHL Express Worldwide • DHL Express Envelope • DHL Import Express 10:30 • DHL Import Express 12:00 • DHL Import Express Worldwide Do not use marks from a non-designated PDS to determine whether a return is timely filed. The timely mailing as timely filing rule applies only to the USPS and to designated PDSs.

# ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.2.4.3.16.3 (01-01-2017) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ By law, a timely-mailed return is a timely-filed return. This applies to both USPS and designated PDS mail. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 01FPC, Forms Processing Code

3.12.2.4.3.17 (01-01-2026) Field 01FPC, Forms Processing Code A Forms Processing Code (FPC) is an alpha and/or numeric character(s) edited by Code and Edit to alert the computer and Master File to a special condition. The number of FPC's may not exceed ten. A FPC will be edited on Form 1040 to the right of line 7. The valid characters for Field 01FPC on Form 1040 (Doc Code 05, 06, 11, 12, 21, or 22) are A, B, D, F, G, H, J, L, P, Q, R, W, X, 0, 5, 8, and 9. Any other entry will display as a field error. Take the following actions to correct Field 01FPC: Correct coding and transcription errors. Determine and enter the correct FPC (if necessary). Refer to the Forms Processing Code Exhibit 3.12.2-5 to determine the correct codes. Blank the field when the FPC is illegible and/or you cannot determine the correct FPC from the explanations in Exhibit 3.12.2-5.

# Field 01RPC, Return Processing Code

3.12.2.4.3.18 (01-01-2026) Field 01RPC, Return Processing Code A Return Processing Code (RPC) is an alpha or numeric character entered by a Code and Edit examiner to alert the computer to a special condition or computation. The field is ten spaces long, and the number of RPCs must not exceed ten. These codes are used for center processing and do not post to the Master File. RPCs are edited as follows: For TY18 and later, Form 1040: near the bottom-left margin of page 1 of the return For TY17 and prior, Form 1040: near the right of line 22. The valid characters for Field 01RPC on Form 1040 (Doc Code 05, 06, 11, 12, 21, or 22) are A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, Y, Z, 1, 2, 3, 4, 5, 6, 7, 8, and 9. Any other entry will display as a field error. Code and Edit edits RPC V on current year returns determined to be computer generated. A computer generated paper return is identified by a three-alpha character software code in the bottom margin of page 1 or 2, Form 1040. Take the following actions to correct Field 01RPC: Correct coding and transcription errors. Determine and enter the correct RPC (if necessary). See Exhibit 3.12.2-3 for a list of explanations. Blank the field when the RPC is illegible and/or you cannot determine the correct RPC from the explanations in Exhibit 3.12.2-3.

# Field 01ACD, Audit Codes

3.12.2.4.3.19 (01-01-2026) Field 01ACD, Audit Codes Audit codes are used to alert Examination to certain conditions in the return. Audit codes are edited by Code and Edit in the bottom-right margin of page 1 of the return. The valid values for Form 1040 (Doc Code 05, 06, 11, 12, 21, 22): A, B, C, D, H, I, J, K, L, M, N, P, Q, R, S, T, U, V, W, X, Z, 2 and 3. Any other values are invalid. Compare the entry in the field with the code in the lower right margin of page 1 of the return. Correct coding and transcription errors. If the audit code is illegible or incorrect, refer to Exhibit 3.12.2-6, Audit Codes, to determine the correct audit code. If you cannot determine the correct audit code, delete the code from Field 01ACD.

# Field 01PEF, Presidential Election Campaign Fund Code

3.12.2.4.3.20 (01-01-2026) Field 01PEF, Presidential Election Campaign Fund Code Presidential Election Campaign is found in the upper right corner of Form 1040, below the main home in the U.S. checkbox (TY24 - TY18, to the right of the address and apartment line; TY17 and prior, to the right of city, state and ZIP code line). Field 01PEF is a numeric one character in length field. An entry in Field 01PEF is invalid if other than blank, 1, or 2. Compare the field on the screen to the entry and correct screen display. Blank if no box marked. Enter "1" if one box is marked. Enter "2" if two boxes are marked. Note: For TY22 and prior, remove the entry in Field 01PEF.

# Field 01DAC, Digital Assets Code

3.12.2.4.3.21 (01-01-2026) Field 01DAC, Digital Assets Code Digital Assets Code is found below the Filing Status section of the Form 1040. Field 01DAC is a numeric one character in length field. An entry in Field 01DAC is invalid if other than 1, 2, 3, 0. Compare the field on the screen to the entry and correct screen display. 0 is default if no boxes are marked. 1 if the Yes box is checked. 2 if the No box is checked. 3 if both boxes are checked.

# Section 02, Revalidation Indicator, Dependents, and ID Number Penalty

3.12.2.5 (01-01-2026) Section 02, Revalidation Indicator, Dependents, and ID Number Penalty Section 02 contains the revalidation indicator, ACA resolution code, dependent information, and ID number penalty fields.

# Error Record Format, Section 02

3.12.2.5.1 (01-01-2026) Error Record Format, Section 02 Section 02 holds the following fields: Form 1040 Field Name Field Location 02RI Revalidation Indicator ERS input only 02DTR Dependent TIN Requirement ERS input only 02ARC ACA Resolution Code Field ERS input only 02MT4 More than 4 Dependents Indicator Checkbox on the left side of the dependents section of Form 1040 02DN1 Dependent 1 Name Control Page 1 of Form 1040 02DS1 Dependent 1 SSN Page 1 of Form 1040 02RC1 Dependent 1 Relationship Code Page 1 of Form 1040 02US1 Dependent 1 Residency Code Page 1 of Form 1040 02SD1 Dependent 1 Student Disabled Code Page 1 of Form 1040 02CT1 Dependent 1 Child Tax and Other Dependent Credit Code Page 1 of Form 1040 02DN2 Dependent 2 Name Control Page 1 of Form 1040 02DS2 Dependent 2 SSN Page 1 of Form 1040 02RC2 Dependent 2 Relationship Code Page 1 of Form 1040 02US2 Dependent 2 Residency Code Page 1 of Form 1040 02SD2 Dependent 2 Student Disabled Code Page 1 of Form 1040 02CT2 Dependent 2 Child Tax and Other Dependent Credit Code Page 1 of Form 1040 02DN3 Dependent 3 Name Control Page 1 of Form 1040 02DS3 Dependent 3 SSN Page 1 of Form 1040 02RC3 Dependent 3 Relationship Code Page 1 of Form 1040 02US3 Dependent 3 Residency Code Page 1 of Form 1040 02SD3 Dependent 3 Student Disabled Code Page 1 of Form 1040 02CT3 Dependent 3 Child Tax and Other Dependent Credit Code Page 1 of Form 1040 02DN4 Dependent 4 Name Control Page 1 of Form 1040 02DS4 Dependent 4 SSN Page 1 of Form 1040 02RC4 Dependent 4 Relationship Code Page 1 of Form 1040 02US4 Dependent 4 Residency Code Page 1 of Form 1040 02SD4 Dependent 4 Student Disabled Code Page 1 of Form 1040 02CT4 Dependent 4 Child Tax and Other Dependent Credit Code Page 1 of Form 1040 02MFS Married Filing Separately HOH Qualifying Indicator Checkbox below dependent information (formerly Schedule EIC) 0211 ID Number Penalty Form 3471, line 11 All fields are positive. Money amounts are entered in dollars only.

# Invalid Conditions

3.12.2.5.2 (01-01-2026) Invalid Conditions Fields in Section 02 will display as invalid if other than alpha, numeric, or blank. Additional invalid conditions for specific fields in Section 02 follow.

# Correction Procedures

3.12.2.5.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures for Section 02 fields follow.

# Field 02RI, Revalidation Indicator

3.12.2.5.3.1 (01-01-2026) Field 02RI, Revalidation Indicator Field 02RI is for ERS input only and is used to retrieve information from the NAP file for NAP validation in ERS. The field is one space long. Valid values: Blank (default value) R: to request NAP validation

# Field 02DTR, Dependent TIN Requirement

3.12.2.5.3.2 (01-01-2026) Field 02DTR, Dependent TIN Requirement Field 02DTR, Dependent TIN Requirement, is for ERS input only. It overrides the programming requirement for the presence of a dependent TIN. ERS examiners enter a value for the number of dependents, up to four, who do not have a TIN for an acceptable reason. See EC 010 for acceptable exceptions to the requirement for a valid dependent TIN. The field is one space long, and only numeric values are valid. Valid values for this field and their significance: 0: the default value 1: one dependent TIN missing for an acceptable reason 2: two dependent TINs missing for an acceptable reason 3: three dependent TINs missing for an acceptable reason 4: four dependent TINs missing for an acceptable reason

# Field 02ARC, Affordable Care Act (ACA) Resolution Codes

3.12.2.5.3.3 (01-01-2026) Field 02ARC, Affordable Care Act (ACA) Resolution Codes The ACA Resolution Code is an alphanumeric field and can have up to 10 codes. Enter a code in Field 02ARC only when instructed in the error codes listed in the table below when accepting the taxpayer entry. ACA Resolution Code Description ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 1 Bypasses AVS error checks for EC 191 2 Bypasses AVS error checks for EC 192 3 Bypasses AVS error checks for EC 195 4 Bypasses AVS error checks for EC 197 5 Bypasses AVS error checks for EC 198 6 Bypasses AVS error checks for EC 199 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 02MT4, More than 4 Dependents Indicator

3.12.2.5.3.4 (01-01-2026) Field 02MT4, More than 4 Dependents Indicator TY25, Field 02MT4 is transcribed from the checkbox on the left side of the dependents section of Form 1040, "If more than four dependents, see instructions and check here" . This field will be invalid if other than 0 or 1. If the checkbox on the left side of the dependents section is checked, enter 1 in Field 02MT4.

# Fields 02DN1, 02DN2, 02DN3, and 02DN4, Dependent 1/2/3/4 Name Control

3.12.2.5.3.5 (01-01-2026) Fields 02DN1, 02DN2, 02DN3, and 02DN4, Dependent 1/2/3/4 Name Control Dependent Name Control is a four-position field that consists of the first four letters of the dependent's last name and is located in the dependents area (TY17 and prior, exemption area) of the return. If missing, Code and Edit will edit the name control from Schedule EIC, attachments, or the primary taxpayer's name control. They will also X dependents without TINs. Note: Field 02DN1/2/3/4 is entered on 199612 and later returns. This field will be invalid when either of the following exist: The first position is not an alpha. The second, third, or fourth positions are not alpha, hyphen, or blank. Compare the field with the return and correct accordingly. Blank the field when the dependent's TIN is not present.

# Fields 02DS1, 02DS2, 02DS3, and 02DS4, Dependent 1/2/3/4 SSN

3.12.2.5.3.6 (01-01-2026) Fields 02DS1, 02DS2, 02DS3, and 02DS4, Dependent 1/2/3/4 SSN Dependent SSN fields are located in the dependents area (TY17 and prior, exemption area) of the return. A dependent's TIN could be an SSN, ITIN, IRSN, or ATIN, and will be referred to as an SSN throughout this subsection (See IRM 3.12.2.4.3.2 for the format of each type of TIN). Code and Edit will edit the missing SSN from the return and attachments when not present, if possible. Note: Field 02DS1/2/3/4 is entered on 199612 and later returns. This field will be invalid when fewer than nine numeric characters are present. When a correction is required to a TY96 or later return, search the return and attachments for the dependent SSN and take the following action: If Dependent SSN is Then A] Found, Enter in the appropriate field. B] Not found, Blank the field. Exception: See paragraphs (4) and (5) below. Enter a value of 1 to 4 (number of allowable dependents) in Field 02DTR when a dependent is listed as Amish, Mennonite, or if Form 4029 is indicated. Search the return and attachments for an official document such as a birth certificate when there is any indication that the dependent Died, or was born and died in the tax year. Note: There must be an indication that the child was born alive; an exemption cannot be claimed for a stillborn child. If there is an indication of Died on the return: If Then A] The information clearly shows that the child was born within the tax period of the tax return and died in the same or consecutive tax period. Note: The word "Died" in row 3 (TY24 and prior, column 2) of the dependent section of the tax return satisfies this requirement. Enter I in Field 01RPC. Enter the number of allowable dependents in Field 02DTR. (If 4 or more, enter 4 in Field 02DTR.) Note: If EIC is being claimed and EC 010 redisplays after an entry is made in Field 02DTR, enter C in the Clear Field. B] Data indicates child was not born and died within the tax period of the return, Treat as missing. Do not enter a value in Field 02DTR. C] Date of birth is not found, SSPND 211 to correspond for a copy of the child's birth certificate. Do not enter a value in the Field 02DTR when either of the following are noted (these are not valid reasons for a missing Dependent SSN): "U.S. Adoption Pending" "12/08" If a dependent SSN is missing and taxpayer notes "Pending Adoption" , and /or Form W-7A, Application for IRS Adoption TIN is attached or "Detached Form W-7A" is edited in the margin, then do the following: Research CC ATINQ to determine if an ATIN has been assigned (CC ATINQ with definer S followed by the SSN of the applicant and transmit). If Field STAT-CD> is "A" , then enter the ATIN present in Field ATIN> into the ERS SSN Field for the dependent the ATIN was issued. If Field STAT-CD> is "S" or "R" , SSPND 640 to Rejects and note on Form 4227 ATINQ STAT CD "S" or "R" . If Field STAT-CD> is "E" , "U" , or "H" , disallow the exemption for the dependent using Field 01EXC. If there is no response to CC ATINQ, when EC 010 displays, disallow exemption.

# Fields 02RC1, 02RC2, 02RC3, and 02RC4, Dependent 1/2/3/4 Relationship Code

3.12.2.5.3.7 (01-01-2026) Fields 02RC1, 02RC2, 02RC3, and 02RC4, Dependent 1/2/3/4 Relationship Code The relationship code is transcribed for each of the four dependents based on the entry in row 4 (TY24 and prior, column 3) of the dependents area of the return. These fields are one position long and numeric only. The valid values are 0 through 8. All other values are invalid. Valid values and their meanings: 0: relationship other than listed below, no relationship indicated, or determination cannot be made 1: daughter or son 2: stepchild 3: foster child 4: grandchild 5: nephew, niece, or sibling's child 6: brother, sister or sibling 7: half-brother, half-sister, or half sibling 8: stepbrother, stepsister, or step sibling

# Fields 02US1, 02US2, 02US3, and 02US4, Dependent 1/2/3/4 Residency Code

3.12.2.5.3.8 (01-01-2026) Fields 02US1, 02US2, 02US3, and 02US4, Dependent 1/2/3/4 Residency Code TY25, the residency code is transcribed for each of the four dependents based on the entries in row 5 of the dependents area of the return, "Check if lived with you more than half of 2025" . These fields are one position long and numeric only. The valid values are 0 through 3. All other values are invalid. Valid values and their meanings: 0: default 1: "Yes" box is checked 2: "And in the U.S." box is checked 3: both boxes are checked

# Fields 02SD1, 02SD2, 02SD3, and 02SD4, Dependent 1/2/3/4 Student Disabled Code

3.12.2.5.3.9 (01-01-2026) Fields 02SD1, 02SD2, 02SD3, and 02SD4, Dependent 1/2/3/4 Student Disabled Code These fields will display as invalid if other than 0 (zero), 1, or 2. Determine the correct code for each of the first four dependents according to the following table: If the taxpayer Then A] Does not check either box on row (6), Enter 0 (zero) in Field 02SD1, 02SD2, 02SD3, or 02SD4 according to the taxpayer's entry. B] Checks the "Full-time student" box on row (6), Enter 1 in Field 02SD1, 02SD2, 02SD3, or 02SD4 according to the taxpayer's entry. C] Checks the "Permanently and totally disabled" box on row (6), Enter 2 in Field 02SD1, 02SD2, 02SD3, or 02SD4 according to the taxpayer's entry. D] Checks both boxes on row (6), Enter 3 in Field 02SD1, 02SD2, 02SD3, or 02SD4 according to the taxpayer's entry.

# Fields 02CT1, 02CT2, 02CT3, and 02CT4, Dependent 1/2/3/4 Child Tax and Other Dependent Credit Code

3.12.2.5.3.10 (01-01-2026) Fields 02CT1, 02CT2, 02CT3, and 02CT4, Dependent 1/2/3/4 Child Tax and Other Dependent Credit Code The Dependent Child Tax and Other Dependent Credit Code is used for TY98 and later. The taxpayer checks the applicable box in the dependents area to indicate a dependent is eligible for Child Tax Credit or Credit for Other Dependents. An entry for the first four dependents will be transcribed as follows in Field 02CT1/2/3/4. 0 (zero) - default value 1 - taxpayer checks Child Tax Credit 1 - taxpayer checks both boxes 2 - taxpayer checks Credit for Other Dependents (TY18 and later) These fields will be invalid if they contain values other than 0 (zero), 1 or 2.

# Field 02MFS, Married Filing Separately HOH Qualifying Indicator

3.12.2.5.3.11 (01-01-2026) Field 02MFS, Married Filing Separately HOH Qualifying Indicator Taxpayers mark this checkbox to indicate that they meet the requirements for claiming EIC with Filing Status 3/6 or 4. TY25, the checkbox is in the Dependents section of Form 1040, below row (7) Compare the field on the screen to the entry and correct the screen display: 0 if the box is not checked. 1 if the box is checked.

# Field 0211, Identification Number Penalty

3.12.2.5.3.12 (01-01-2026) Field 0211, Identification Number Penalty Identification Number Penalty Field has a maximum of 2 characters and will be invalid if other than two zeros (00) or 50. Code and Edit will edit 50 when there is a notation on the return that this penalty is to be assessed and an amount is present. Enter the amount in Field 0211 as two digits (e.g., $50.00 will be entered as 50). Note: Examination or Collection will indicate when this penalty is to be assessed. Refer to EC 078.

# Field 02NC>, Non-Compute Code

3.12.2.5.3.13 (01-01-2026) Field 02NC>, Non-Compute Code The Non-Compute Code 2 is computer-generated when the return is identified as a non-compute by the computer. For TY25, taxpayers who want the IRS to compute the tax will only complete Form 1040 data through taxable income on line 15, plus any applicable lines from Schedule 2 and 3. To be identified as a Non-Compute, the taxpayers must not compute the tax liability, balance due/refund, or have certain forms/schedules attached. Exception: Section 01-05, 08, 16, 19, 21, 22, 23, 27, 29, 30, 36, 37, 43, 44, 45, 50, 51, 54, 55, 57, 64, 67, 75, 76, 77, 78, 79, 88, and 94 may be present. Field 02NC> will display with a 2 (identifying the return as a non-compute), for the current year, when all of the following exist: Adjusted gross income is present and total tax, balance due/refund, estimated tax penalty and remittance amount are not present. Computer Condition Code B is not present. Computer Condition Code G is not present. Return Processing Code L is not present. Taxpayer does not exceed tax table limitations for income. Only Sections 01-05, 08, 16, 19, 21, 22, 23, 27, 29, 30, 36, 37, 43, 44, 45, 50, 51, 54, 55, 57, 64, 67, 75, 76, 77, 78, 79, 88, and 94 can be present. Sections 06, 07, 09-15, 17-18, 20, 24-26, 28, 31-35, 38-42, 46-49, 52-53, 56, 58, 59, 61-63, 65-66, 68-74 are not present. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Error codes in the 500 and 600 series will also be generated on all non-compute returns. A return processed as a non-compute return generates a CP 51 notice to the taxpayer. The CP 51 informs the taxpayer that the IRS figured their tax for them. Determine from the return if the tax and/or balance due/refund has been computed to zero by the taxpayer, or if the taxpayer is asking IRS to figure the tax. A dash (-), a 0 (zero), or "none" written on any of the lines for tax, total tax, overpayment, refund, or balance due is an indication the taxpayer computed their own return. When you can determine that the taxpayer has computed their return, enter B in Field 01CCC. Note: CCC B prevents the return from being identified as a non-compute. This practice is recommended to eliminate unnecessary CP 51 notices. If the taxpayer has computed the tax to zero, has entered withholding and has no subsequent entries (e.g., taxpayer is not asking IRS to figure EIC) and does not have an entry on line 33, Form 1040 (TY19, line 19; TY18, line 18; TY17, line 74), enter the withholding amount in Field 03BDR and don't enter CCC B. Correct all field errors when the return is identified as a true non-compute and the taxpayer has done all the following: Completed all applicable lines through taxable income. Entered any withholding. Entered any applicable lines thereafter (except the total lines). Wrote "CFE" , if applicable, on the dotted line next to the line for Credit for the elderly or disabled and attached Schedule R with the appropriate lines completed. Wrote "EIC" , if applicable, to the left of the Earned Income Credit line and attached Schedule EIC (if necessary) with the appropriate lines completed. Assign TPNC 218 when a return appears to be a non-compute, but does not meet the criteria (e.g., "prior-year return" , Schedule A present, Schedule C present, etc.). Field 02NC> will be blank. Verify the coding and transcription on all the fields in the following table. Take the appropriate action listed in the table below, when necessary, before transmitting the record. Verify transcription in And Then Field 01FSC The taxpayer failed to check or check multiple boxes for the filing status, SSPND 211. Field 01EXC You are unable to arrive at the taxpayer's total for dependents SSPND 211. Section 03 Verification of wages, from Forms W-2, shows the amount of wages is greater than the amount reported on the return by $10 or more, Increase the wages amount. (Continue processing if Form W-2 amount is less than what is reported on the return.) Section 03 The taxpayer used Social Security or Medicare wages instead of wages in box 1 of Form W-2, Change the amount to reflect the box 1 wages. Section 03 Gross social security is being claimed, Research CC IRPTR, if available. Verify and correct the amount, if applicable. Field 03DSI You are unable to determine if the taxpayer is limiting the standard deduction amount, Refer to EC 256. Field 03ABI You are unable to arrive at the taxpayer's amount for Age/Blind deduction(s), Refer to EC 256. Field 03WH Withholding is claimed, Supported by only a substitute, typed or handwritten Form W-2 The computer computes a refund, Enter 8 in Field 01CCC. Note: Always verify the withholding amount from Forms W-2 and ensure that the amount was transcribed correctly before transmitting the error record. Field 03EIC EIC is claimed based solely on wages that are not supported by a Form W-2 (or similar Form W-2 document or HSH notation), Research CC IRPTRL, if available. SSPND 211 for documentation if income is not found on IRPTR. Refer to EC 260 for information on joint non-compute returns. Computer Condition Code "Y" will be assigned when both of the following are present: The separate taxable incomes of the taxpayers are shown above the words "adjusted gross income" , on Form 1040. There are no exemptions in positions 3 through 8, or the taxpayer has indicated the allocation of the exemptions to the spouse.

# Section 03, Simplified Tax Return

3.12.2.6 (11-27-2020) Section 03, Simplified Tax Return Section 03 includes information transcribed from Form 1040

# Error Record Format, Section 03

3.12.2.6.1 (01-01-2026) Error Record Format, Section 03 Form 1040 Section 03 consists of the following fields: Form 1040 Field Name Field Location 03WG W-2 Wages Line 1a 03NCP Nontaxable Combat Pay Amount Line 1i 03TWG Total Wages Line 1z 03TEI Tax-Exempt Interest Line 2a 03INT Taxable Interest Line 2b 03QD Qualified Dividends Line 3a 03DIV Ordinary Dividends Line 3b 03GIR Gross IRA Distributions Line 4a 03TIR Taxable IRA Distributions Line 4b 03GPA Gross Pension and Annuity Line 5a 03TPA Taxable Pension and Annuity Line 5b 03GSS Gross Social Security Line 6a 03TSS Taxable Social Security Line 6b 03CGL Schedule D Profit/Loss Line 7a 03ADD Additional Income Line 8 03TOT Total Income Line 9 03TAJ Total Adjustments Line 10 03AGI Adjusted Gross Income Line 11a 03DSI Dependency Status Indicator Line 12a 03ABI Age/Blind Indicators Line 12d 03QBI Qualified Business Income Deduction Line 13a 03INC Taxable Income Line 15 03TTX Tentative Tax Line 16 03AF Additional Forms 8814 Attached ERS input only 03AT Additional Forms 8814 Tax ERS input only 03COD Child Tax or Other Dependent Credit Line 19 03NRC Total Statutory Credit Line 21 03OTX Other Taxes Line 23 03TAX Total Tax Line 24 03WH Withholding Line 25d 03ESP Estimated Tax Credit Line 26 03EIC Earned Income Credit Line 27a 03OEI ACTC Opt Out Election Indicator Line 28 checkbox 03ACT Additional Child Tax Credit Line 28 03AOC Refundable Education Credit Line 29 03PSC Form 1040C Credit ERS Input Only 03RAC Refundable Adoption Credit Line 30 03RCR Refundable Credits Line 32 03PAY Total Payments Line 33 03BDR Balance Due Refund Line 35a or 37 03CEL Credit Elect Line 36 03ETP Estimated Tax Penalty Line 38 03AI Third Party Designee Authorization Indicator Below line 38 03TPN Third Party Designee Name Below line 38 03TPI Third Party Designee ID Number Below line 38 03EMW E-File Mandate Waiver Code Edited to right of spouse IP PIN 03PC Preparer Code Edited to right of self-employed checkbox 03PT Preparer TIN PTIN in Paid Preparer area, page 2 03PE Preparer EIN Firm's EIN in Paid Preparer area, page 2 03PTN Preparer Telephone Number Preparer Telephone Number in Paid Preparer area, page 2

# Invalid Conditions

3.12.2.6.2 (01-01-2026) Invalid Conditions Fields in Section 03 are invalid if not all numeric. Exception: Field 03TPN, Field 03PC, and Field 03PT can contain alpha characters.

# Correction Procedures

3.12.2.6.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 03 fields follow.

# Field 03WG, W-2 Wages

3.12.2.6.3.1 (01-01-2023) Field 03WG, W-2 Wages Form W-2 wages are transcribed in Field 03WG from Form 1040, line 1a (TY21 - TY18, line 1; TY17, line 7). Refer to EC 218.

# Field 03NCP, Nontaxable Combat Pay

3.12.2.6.3.2 (01-01-2023) Field 03NCP, Nontaxable Combat Pay EIC nontaxable combat pay is transcribed in Field 03NCP from Form 1040, line 1i (TY21, Form 1040, line 27b; TY20, to the left of line 27; TY19, to the left of line 18a; TY18, to the left of line 17; TY17, line 66b)

# Field 03TWG, Total Wages

3.12.2.6.3.3 (01-01-2025) Field 03TWG, Total Wages Total wages is transcribed in Field 03TWG from Form 1040, line 1z (TY21 - TY18, line 1; TY17, line 7). Verify the wages with CC IRPTR if the information returns are available as instructed by the error code. SSPND 211 for Form W-2 when the taxpayer does not provide at least one Form W-2 or a similar statement of earnings as instructed by the error code. Refer to EC 118/201/218/337/338. If the taxpayer reports earnings from household employment "HSH" on Form 1040, line 1b (TY21 and prior, HSH noted on the wages line), enter E in Field 01SPC. Note: Household employees may not have Forms W-2 to support their entry for wages, line 1b. For TY21 and prior, they are instructed to write "HSH" and the amount of earnings to the left of the entry for wages. Consider this the equivalent of a Form W-2.

# Field 03TEI, Tax-Exempt Interest

3.12.2.6.3.4 (11-27-2020) Field 03TEI, Tax-Exempt Interest Tax-exempt interest is transcribed in Field 03TEI from Form 1040, line 2a (TY17, line 8b). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Refer to Error Code 218.

# Field 03INT, Taxable Interest

3.12.2.6.3.5 (11-27-2020) Field 03INT, Taxable Interest Taxable interest is transcribed in Field 03INT from Form 1040, line 2b (TY17, line 8a). TY97 and later, negative taxable interest amounts stemming from inflation-indexed bonds may be claimed in Field 03INT. Refer to EC 218.

# Field 03QD, Qualified Dividends

3.12.2.6.3.6 (11-27-2020) Field 03QD, Qualified Dividends Qualified dividends are transcribed in Field 03QD from Form 1040, line 3a (TY17, line 9b). Qualified dividends and distributions are reported to the taxpayer on Form 1099-DIV, box 1b. Taxpayers are not required to attach Form 1099-DIV to their return. Refer to EC 218.

# Field 03DIV, Ordinary Dividends

3.12.2.6.3.7 (11-27-2020) Field 03DIV, Ordinary Dividends Ordinary dividends are transcribed in Field 03DIV from Form 1040, line 3b (TY17, line 9a). Ordinary dividends and distributions are reported to the taxpayer on Form 1099-DIV, box 1a. Taxpayers are not required to attach Form 1099-DIV to their return. Refer to EC 218.

# Field 03GIR, Gross IRA Distributions

3.12.2.6.3.8 (11-27-2020) Field 03GIR, Gross IRA Distributions Gross IRA distributions are transcribed in Field 03GIR from Form 1040, line 4a (TY17, line 15a). Refer to EC 218.

# Field 03TIR, Taxable IRA Distributions

3.12.2.6.3.9 (11-27-2020) Field 03TIR, Taxable IRA Distributions Taxable IRA distributions are transcribed in Field 03TIR from Form 1040, line 4b (TY17, line 15b). Refer to EC 218.

# Field 03GPA, Gross Pensions and Annuities

3.12.2.6.3.10 (11-27-2020) Field 03GPA, Gross Pensions and Annuities Gross pensions and annuities are transcribed in Field 03GPA from Form 1040, line 5a (TY19, line 4c; TY17, line 16a). TY18, gross IRAs, pensions, and annuities are on Form 1040. line 4a. Refer to EC 218.

# Field 03TPA, Taxable Pensions and Annuities

3.12.2.6.3.11 (01-03-2023) Field 03TPA, Taxable Pensions and Annuities Taxable pensions and annuities are transcribed in Field 03TPA from Form 1040, line 5b (TY19, line 4d; TY17, line 16b). TY18, taxable IRAs, pensions, and annuities are on Form 1040, line 4b. Refer to EC 218.

# Field 03GSS, Gross Social Security Benefits

3.12.2.6.3.12 (01-01-2024) Field 03GSS, Gross Social Security Benefits Gross social security benefits are transcribed in Field 03GSS from Form 1040, line 6a (TY19 - TY18, line 5a; TY17, line 20a). Refer to EC 214.

# Field 03TSS, Taxable Social Security Benefits

3.12.2.6.3.13 (01-01-2024) Field 03TSS, Taxable Social Security Benefits Taxable social security benefits are transcribed in Field 03TSS from Form 1040, line 6b (TY19 - TY18 line 5b; TY17, line 20b). For TY94 and later, social security can be taxed up to 85 percent. For TY93 and prior, up to 50 percent was taxable. Refer to EC 214.

# Field 03CGL, Schedule D Profit or Loss

3.12.2.6.3.14 (01-01-2026) Field 03CGL, Schedule D Profit or Loss Capital gain or loss is transcribed in Field 03CGL from Form 1040, line 7a (TY24 - TY20, line 7; TY19, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13). Refer to EC 204.

# Field 03ADD, Additional Income

3.12.2.6.3.15 (01-01-2024) Field 03ADD, Additional Income Field 03ADD, Additional Income, is transcribed from Form 1040, line 8 (TY19, line 7a; TY18, Schedule 1, line 22). Refer to EC 218.

# Field 03TOT, Total Income

3.12.2.6.3.16 (01-03-2023) Field 03TOT, Total Income Total income is transcribed in Field 03TOT from Form 1040, line 9 (TY19, line 7b; TY18, line 6, Form 1040; TY17, line 22). Refer to EC 218.

# Field 03TAJ, Total Adjustments

3.12.2.6.3.17 (11-27-2020) Field 03TAJ, Total Adjustments Total adjustments amount is transcribed in Field 03TAJ from Form 1040, line 10 (TY20, line 10c; TY19, line 8a; TY18, Schedule 1, line 36; TY17, Form 1040, line 36). Refer to EC 229.

# Field 03AGI, Adjusted Gross Income

3.12.2.6.3.18 (01-01-2026) Field 03AGI, Adjusted Gross Income Adjusted gross income (AGI) is transcribed in Field 03AGI from Form 1040, line 11a (TY24 - TY20, line 11; TY19, line 8b; TY18, line 7, Form 1040; TY17, line 37). Refer to EC 230.

# Field 03DSI, Dependency Status Indicator

3.12.2.6.3.19 (01-01-2026) Field 03DSI, Dependency Status Indicator Field 03DSI, Dependency Status Indicator (DSI), is used when the primary taxpayer (or secondary taxpayer, if FS 2) can be claimed as a dependent on someone else's return For TY25, ISRP will transcribe the dependent status indicator from Form 1040, page 3, line 12a checkboxes, "someone can claim you as a dependent" and/or "someone can claim your spouse as a dependent" . For TY24 - TY18, ISRP will transcribe the dependent status indicator from page 1 of Form 1040 checkboxes, "someone can claim you as a dependent" and/or "someone can claim your spouse as a dependent" . For TY17 and prior, Code and Edit will code a 1 directly above line 6c, column (4) on Form 1040 when the taxpayer did not make an entry in the box on line 6a and did not enter an exemption for themselves on the line to the right of lines 6a and 6b in the right hand margin of Form 1040. When a 1 or 3 (FSC 2, when 1, 2, or 3) is present in Field 03DSI, Standard Deduction Computer will be limited. For TY25, the limitation is the larger of $1,350, or earned income plus $450 (maximum of $15,750). Note: On any return when DSI 1 is valid and Field 94EXV is being used, enter 0 (zero) in positions 1 and 3 through 8 of Field 94EXV. Valid values: 0: neither box is checked. 1: "You as a dependent" box is checked. 2: "Your spouse as a dependent" box is checked. 3: both boxes are checked. Refer to EC 256.

# Field 03ABI, Age/Blind Indicators

3.12.2.6.3.20 (01-01-2026) Field 03ABI, Age/Blind Indicators Age/Blind Indicators (ABI) are checked to indicate the primary or secondary qualifies for additional standard deduction amount when 65 or older, or blind. TY25, transcribed from Form 1040, page 2, line 12d TY24 - TY19, transcribed from page 1, Form 1040, above the Dependents line. TY18, transcribed from page 1, Form 1040, below the primary and secondary taxpayer's name lines. TY17, transcribed from the four boxes on line 39a, Form 1040. Field 03ABI will display with four generated zeros (0000) on the screen display and will be input as follows: Code Position Condition 1 1 (1000) Primary taxpayer 65 or over 1 2 (0100) Primary taxpayer blind 1 3 (0010) Secondary taxpayer 65 or over 1 4 (0001) Secondary taxpayer blind When the taxpayer did not check any ABI box, but is claiming an amount equal to a "combined amount" of standard deduction and additional standard deduction amount, check for the following conditions: An entry for Schedule R. The taxpayer indicates 65 or older near the ABI boxes. Certification of blindness is attached. For TY17 and prior, an entry is present in the Total box on Form 1040, line 39a. Refer to EC 256.

# Field 03QBI, Qualified Business Income Deduction

3.12.2.6.3.21 (01-01-2026) Field 03QBI, Qualified Business Income Deduction Qualified Business Income Deduction (QBID) is transcribed in Field 03QBI from Form 1040, line 13a (TY24 - TY20, line 13; TY19, line 10; TY18, line 9). Field 03QBI is valid for TY18 and later only. Refer to EC 248 and 249.

# Field 03INC, Taxable Income Amount

3.12.2.6.3.22 (01-01-2026) Field 03INC, Taxable Income Amount Taxable income is transcribed in Field 03INC from Form 1040, line 15 (TY19, line 11b; TY18, line 10; TY17, line 43). The transcribed taxable income field has a computer-generated underprint. Refer to EC 256 and 265.

# Field 03TTX, Tentative Tax

3.12.2.6.3.23 (11-27-2020) Field 03TTX, Tentative Tax Tentative tax is transcribed in Field 03TTX from Form 1040, line 16 (TY19, line 12a; TY18, line 11a; TY17, line 44). Refer to EC 265.

# Field 03AF, Additional Forms 8814 Attached

3.12.2.6.3.24 (01-01-2020) Field 03AF, Additional Forms 8814 Attached Field 03AF, Additional Forms 8814 Attached, is for ERS input only. This one-position field is valid for Form 1040 only, holds only a positive number and is for use only when more than three Forms 8814 are present. The largest allowable number in the field is 9. Three Forms 8814 may be transcribed with a return in Sections 40, 41, and 42. Field 03AF holds the number of Forms 8814 for which there is no transcribed section. For instance, if four Forms 8814 are attached, and the first three are transcribed as Section 40, 41, and 42, enter the number 1 in Field 03AF. If there are five Forms 8814, enter the number 2 in Field 03AF. Use Command Code GTSEC to verify that the first three Forms 8814 are transcribed in Section 40, 41, and 42. Subtract three from the number of Forms 8814 and enter the result in Field 03AF. If twelve or more Forms 8814 are present, enter the number 9 in Field 03AF. Refer to EC 265.

# Field 03AT, Additional Forms 8814 Tax

3.12.2.6.3.25 (01-01-2020) Field 03AT, Additional Forms 8814 Tax Field 03AT, Additional Forms 8814 Tax, is for ERS input only on Form 1040. Enter the additional tax amount in Field 03AT from the Form(s) 8814 not transcribed in Sections 40, 41, and 42. Refer to EC 265.

# Field 03COD, Child Tax and Other Dependent Credit Child Tax Credit

3.12.2.6.3.26 (01-01-2026) Field 03COD, Child Tax and Other Dependent Credit Child Tax Credit The amount claimed for Child Tax Credit (CTC) and Credit for Other Dependents (ODC) is transcribed in Field 03COD from Form 1040, line 19 (TY19, line 13a; TY18, line 12a; TY17, line 52). CTC is valid for TY98 and later. ODC is valid for TY18 and later. Refer to EC 287, 289, and 299.

# Field 03NRC, Total Statutory Credits

3.12.2.6.3.27 (06-10-2021) Field 03NRC, Total Statutory Credits Total statutory credits are transcribed in Field 03NRC from Form 1040, line 21 (TY19, line 13b; TY18, line 12; TY17, line 55). Refer to EC 310.

# Field 03OTX, Total Other Taxes

3.12.2.6.3.28 (11-27-2020) Field 03OTX, Total Other Taxes Total other taxes amount is transcribed in Field 03OTX from Form 1040, line 23 (TY19, line 15; TY18, line 14) and applies to TY18 and later returns only. Refer to EC 333.

# Field 03TAX, Total Tax

3.12.2.6.3.29 (11-27-2020) Field 03TAX, Total Tax Total tax is transcribed in Field 03TAX from Form 1040, line 24 (TY19, line 16; TY18, line 15; TY17, line 63).

# Field 03WH, Withholding

3.12.2.6.3.30 (11-27-2020) Field 03WH, Withholding Withholding is transcribed in Field 03WH from Form 1040, line 25d (TY19, line 17; TY18, line 16; TY17, line 64). Enter the amount from attachments, if applicable, when withholding is blank, dash (-), or 0 (zero). Refer to EC 118 and 366.

# Field 03ESP, Estimated Tax Credit

3.12.2.6.3.31 (11-27-2020) Field 03ESP, Estimated Tax Credit Estimated tax credits is transcribed in Field 03ESP from Form 1040, line 26 (TY19, line 8, Schedule 3; TY18, line 66, Schedule 5; TY17, Form 1040, line 65). Refer to EC 366 and EC 370.

# Field 03EIC, Earned Income Credit (EIC)

3.12.2.6.3.32 (01-01-2026) Field 03EIC, Earned Income Credit (EIC) Earned Income Credit (EIC) is transcribed in Field 03EIC from Form 1040, line 27a (TY24 - TY22, line 27; TY21, line 27a; TY20, line 27; TY19, line 18a; TY18, line 17a; TY17, line 66a). Refer to EC 336, 337, and 338. When taxpayers indicate they want the IRS to compute their EIC without qualified children (i.e., "EIC" written near the EIC line and no Schedule EIC attached), Code and Edit will edit "888" on the EIC line to generate ERS correction. Refer to EC 338.

# Field 03OEI, Additional Child Tax Credit (ACTC) Opt Out Election Indicator

3.12.2.6.3.33 (01-01-2026) Field 03OEI, Additional Child Tax Credit (ACTC) Opt Out Election Indicator Field 03OEI is transcribed from the checkbox to the left of the Additional Child Tax Credit (ACTC) amount on Form 1040, line 28, "If you do not want to claim the ACTC, check here" . TY24 - TY22, the checkbox was on line 15 of Schedule 8812. Valid values for Field 03OEI: 0 - box is not checked. 1 - box is checked.

# Field 03ACT, Additional Child Tax Credit

3.12.2.6.3.34 (01-01-2025) Field 03ACT, Additional Child Tax Credit Additional Child Tax Credit (ACTC) is transcribed in Field 03ACT from Form 1040, line 28 for TY20 and subsequent (TY19, line 18b; TY18, line 17b; TY17, line 67). TY21, the credit was also identified as Refundable Child Tax Credit (RCTC). This field is applicable for TY98 and later. Refer to EC 344.

# Field 03AOC, Form 8863 Refundable Education Credit

3.12.2.6.3.35 (11-27-2020) Field 03AOC, Form 8863 Refundable Education Credit American Opportunity Credit (AOC) or refundable education credit is transcribed in Field 03AOC from Form 1040, line 29 (TY19, line 18c; TY18, line 17c; TY17, line 68). Refundable education credit is valid for TY09 and later. Refer to EC 347.

# Field 03PSC, Form 1040C Credit

3.12.2.6.3.36 (01-01-2026) Field 03PSC, Form 1040C Credit This field is ERS input only. Enter the amount of credit in Field 03PSC if there is an indication that a taxpayer is claiming a credit from Form 1040C in the Payments area of Form 1040 or Schedule 3 (TY18, Schedule 5). Note: Form 1040C serves as a payment voucher for aliens leaving the country before the tax return is due.

# Field 03RAC, Refundable Adoption Credit

3.12.2.6.3.37 (01-01-2026) Field 03RAC, Refundable Adoption Credit TY25 only, refundable adoption credit is transcribed in Field 03RAC, from Form 1040, line 30. Refer to EC 351.

# Field 03RCR, Refundable Credits

3.12.2.6.3.38 (01-01-2024) Field 03RCR, Refundable Credits Refundable credits is transcribed in Field 03RCR from Form 1040, line 32 (TY19, line 18e; TY18, line 17), and applies to TY18 and later returns. Refer to EC 364.

# Field 03PAY, Total Payments

3.12.2.6.3.39 (11-27-2020) Field 03PAY, Total Payments Total payments is transcribed in Field 03PAY from Form 1040, line 33 (TY19, line 19; TY18, line 18; TY17, line 74). Refer to EC 366.

# Field 03BDR, Balance Due/Refund

3.12.2.6.3.40 (01-01-2025) Field 03BDR, Balance Due/Refund Field 03BDR can be either positive or negative depending on the taxpayer's entry. This field will be: Negative (meaning a refund due to taxpayer) amount if transcribed from Form 1040, line 35a (TY19, line 21a; TY18, line 20a; TY17, line 76a). Positive (meaning amount due to IRS) amount if transcribed from Form 1040, line 37 (TY19, line 23; TY18, line 22; TY17, line 78). Note: ISRP will enter the amount as a refund if the only entry by the taxpayer is on the Overpaid line, Form 1040, line 34 (TY19, line 20; TY18, line 19; TY17, line 75). Refer to EC 370.

# Field 03CEL, Estimated Tax Credit Elect

3.12.2.6.3.41 (01-01-2023) Field 03CEL, Estimated Tax Credit Elect Estimated Tax Credit Elect or estimated tax election is transcribed from Form 1040, line 36 (TY19, line 22; TY18, line 21; TY17, line 77). Field 03CEL is used to indicate the amount of overpayment the taxpayer wants applied to the next year's tax liability. Refer to EC 370.

# Field 03ETP, Pre-Determined Estimated Tax Penalty

3.12.2.6.3.42 (01-01-2024) Field 03ETP, Pre-Determined Estimated Tax Penalty Estimated tax penalty is transcribed from Form 1040, line 38 (TY19, line 24; TY18, line 23; TY17, line 79). Forms 2210 and 2210-F are worksheets used by the taxpayer to compute the Underpayment of Estimated Tax Penalty. Form 2210 is used by most filers; Form 2210-F is used by farmers and fishers. Refer to EC 368 and 370.

# Field 03AI, Third Party Designee Authorization Indicator

3.12.2.6.3.43 (01-01-2025) Field 03AI, Third Party Designee Authorization Indicator Field 03AI is transcribed from the third party designee area above the signature area on Form 1040, below line 38, page 2 (TY18, Schedule 6). Use the following procedures to correct Field 03AI: If the Third Party Designee Yes box is checked, enter 1. TY18, if the 3rd Party Designee box in the paid preparer area is checked on page 1, enter 1. If taxpayer checks the No box, enter 0 (zero). If taxpayer checks both boxes or does not check a box, enter 0 (zero).

# Field 03TPN, Third Party Designee Name

3.12.2.6.3.44 (01-01-2024) Field 03TPN, Third Party Designee Name Field 03TPN is transcribed from the third party designee area above the signature area on Form 1040, below line 38, page 2 (TY18, Schedule 6). The taxpayer is instructed to enter the name of the person designated to discuss their tax return. This field is 20 characters in length.

# Field 03TPI, Third Party Designee Identification Number

3.12.2.6.3.45 (01-01-2024) Field 03TPI, Third Party Designee Identification Number Field 03TPI is transcribed from the third party designee area above the signature area on Form 1040, below line 38, page 2 (TY18, Schedule 6). The taxpayer is instructed to enter five digits that the designee chooses as a personal identification number.

# Field 03EMW, E-File Mandate Waiver Indicator

3.12.2.6.3.46 (01-01-2025) Field 03EMW, E-File Mandate Waiver Indicator Paid preparers are required to e-file the tax returns they prepare. Exceptions to that general rule are listed on Form 8948, Preparer Explanation for Not Filing Electronically. When paid preparers submit a paper return, they must include Form 8948 and indicate the exception. Code and Edit will edit 1 through 6 in the lower-right margin of Form 1040, page 2 from the exception box checked by the preparer on Form 8948. Field 03EMW is invalid if other than blank, zero, or 1 through 6. Code 1 indicates box 1 is marked, code 2 is box 2, code 3 is box 3, code 4 is box 4, code 5 is box 5, and code 6 is box 6a-c. Compare the field on the screen with the box checked on Form 8948. If edited or transcribed incorrectly, correct the screen display. If multiple boxes are checked on Form 8948, enter the indicator according to this priority: 6a, 6b, 6c, 3, 2, 1, 4, or 5.

# Field 03PC, Preparer's Code

3.12.2.6.3.47 (01-01-2026) Field 03PC, Preparer's Code If the return has been prepared by VITA or IRS, Code and Edit will edit a code to the right of "Check if" box in the paid preparer area of page 2, Form 1040 (TY18, page 1, Form 1040). Field 03PC will be invalid if the Preparer's Code is other than P, or R. Compare the entry in Field 03PC with the entry on the return. When edited or transcribed incorrectly, correct the screen display with the correct code as follows: If return was prepared by Then A] IRS, Enter P in Field 03PC. B] Other than the IRS, but reviewed by IRS, Enter R in Field 03PC.

# Field 03PT, Preparer TIN

3.12.2.6.3.48 (01-01-2026) Field 03PT, Preparer TIN The Preparer TIN (PTIN) field is transcribed from the paid preparer's area at the bottom of Form 1040, page 2 (TY18, at the bottom of page 1). Field 03PT is a nine-character alphanumeric code. The first character can be P or S or a number. The remaining eight characters are numbers. Field 03PT is invalid if the entry meets any of these conditions: is all zeros: 000000000 is all nines: 999999999 has fewer than nine characters Compare the entry in the field with the entry on the return and correct any errors. Correct the field errors below according to the instructions in the table. If Then A] The PTIN/SSN is unavailable, incomplete, or illegible, Delete the entry from Field 03PT. B] The PTIN is all zeros or all nines, Delete the entry from Field 03PT.

# Field 03PE, Preparer EIN

3.12.2.6.3.49 (01-01-2020) Field 03PE, Preparer EIN Field 03PE, Preparer's EIN, is transcribed from the paid preparer area at the bottom of page 2, Form 1040 (TY18, at the bottom of page 1). This field is invalid if the Preparer's EIN is present and any of the following exist: All zeros (000000000) All nines (999999999) Fewer than nine digits Compare the field on the screen with the entry on the return and correct the screen display, if necessary. Delete the field when a valid Preparer's EIN is not available.

# Field 03PTN, Preparer Telephone Number

3.12.2.6.3.50 (01-01-2020) Field 03PTN, Preparer Telephone Number Field 03PTN is transcribed from the paid preparer area at the bottom of page 2, Form 1040 (TY18, page 1, Form 1040). Field 03PTN is a ten-digit field that can contain alpha, numeric and blank entries.

# Section 04, Additional Income and Adjustments to Income

3.12.2.7 (01-01-2024) Section 04, Additional Income and Adjustments to Income Section 04 includes additional income and adjustments to income from Form 1040, Schedule 1, and Schedule 1-A.

# Error Record Format, Section 04

3.12.2.7.1 (01-01-2026) Error Record Format, Section 04 Form 1040 Section 04 consists of the following fields: Schedule 1 and Schedule 1-A Field Name Field Location 04KAM Form 1099-K Amount Schedule 1, below Name(s) shown on Form 1040 0401 State Income Tax Refund Schedule 1, line 1 0402A Alimony Received Schedule 1, line 2a 0403 Combined Schedule C Profit/Loss Schedule 1, line 3 0404 Supplemental Gains and Losses Schedule 1, line 4 0405 Schedule E Profit/Loss Schedule 1, line 5 0406 Combined Schedule F Profit/Loss Schedule 1, line 6 0407 Taxable Unemployment Compensation Schedule 1, line 7 04SFG Scholarship and Fellowship Grants Schedule 1, line 8r 04OTI Other Income Schedule 1, line 9 04RTA Form 982 Indicator Edited in the left margin of line 11 04EDU Educator Expenses Schedule 1, line 11 04CBE Reservist and Other Business Expense Schedule 1, line 12 04HSA Combined Health Savings Account Deduction Schedule 1, line 13 04MOV Form 3903 Moving Expenses Schedule 1, line 14 04DSE Deduction for SE Tax Amount Schedule 1, line 15 04SEP SE Retirement Plans Deduction Schedule 1, line 16 04HID Self Employed Health Insurance Schedule 1, line 17 04PEW Penalty on Savings Withdrawal Schedule 1, line 18 04ALP Alimony Paid Schedule 1, line 19a 04SSN Alimony SSN Schedule 1, line 19b 04IRA IRA Payment Deduction Schedule 1, line 20 04SLI Student Loan Interest Deduction Schedule 1, line 21 04MSA Archer Medical Savings Account (MSA) Deduction Schedule 1, line 23 04ADJ Other Adjustments Schedule 1, line 25 04TQT Total Qualified Tips Income Schedule 1-A, line 6 04DQT Deduction for Qualified Tips Schedule 1-A, line 13 04QOT Total Qualified Overtime Compensation Income Schedule 1-A, line 14c 04DOT Deduction for Qualified Overtime Compensation Schedule 1-A, line 21 04LIP Total Car Loan Interest Paid Schedule 1-A, line 23 04LID Car Loan Interest Deduction Schedule 1-A, line 30 04DFS Deduction for Seniors Schedule 1-A, line 37

# Invalid Conditions

3.12.2.7.2 (01-01-2017) Invalid Conditions Fields in Section 04 are invalid if not all numeric.

# Correction Procedures

3.12.2.7.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 04 fields follow.

# Field 04KAM, Form 1099-K Amount

3.12.2.7.3.1 (05-22-2025) Field 04KAM, Form 1099-K Amount Amount reported on Form(s) 1099-K that was included in error or for personal items sold at a loss is transcribed in Field 04KAM from Schedule 1, below Names shown on Form and above Part I of Schedule 1. The amount in Field 04KAM is not included in the total additional income on line 10 of Schedule 1.

# Field 0401, State Income Tax Refund

3.12.2.7.3.2 (01-01-2020) Field 0401, State Income Tax Refund Taxable refunds, credits, or offsets of state and local income taxes are transcribed in Field 0401 from Schedule 1, line 1 (TY18, Schedule 1, line 10; TY17, Form 1040, line 10). Refer to EC 218.

# Field 0402A, Alimony Received

3.12.2.7.3.3 (04-24-2025) Field 0402A, Alimony Received Alimony received is transcribed in Field 0402A from Schedule 1, line 2a (TY18, Schedule 1, line 11; TY17, Form 1040, line 11). TY19 and later, if the date on Schedule 1, line 2b, is after December 31, 2018, do not enter the amount in Field 0402A. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ when the taxpayer changed alimony "received" to "recaptured" . Refer to EC 218.

# Field 0403, Combined Schedule C Profit or Loss

3.12.2.7.3.4 (01-01-2020) Field 0403, Combined Schedule C Profit or Loss Business income or loss is transcribed in Field 0403 from Schedule 1, line 3 (TY18, Schedule 1, line 12; TY17, Form 1040, line 12). Refer to EC 202.

# Field 0404, Other Gains or Losses

3.12.2.7.3.5 (01-01-2020) Field 0404, Other Gains or Losses Other gains or losses is transcribed in Field 0404 from Schedule 1, line 4 (TY18, Schedule 1, line 14: TY17, Form 1040, line 14).

# Field 0405, Schedule E Income or Loss

3.12.2.7.3.6 (01-01-2020) Field 0405, Schedule E Income or Loss Rental real estate, royalties, partnerships, S corporations, trusts, etc., are transcribed in Field 0405 from Schedule 1, line 5 (TY18, Schedule 1, line 17; TY17, Form 1040, line 17). Refer to EC 206.

# Field 0406, Combined Schedule F Profit or Loss

3.12.2.7.3.7 (01-01-2020) Field 0406, Combined Schedule F Profit or Loss Farm income or loss is transcribed in Field 0406 from Schedule 1, line 6 (TY18, Schedule 1, line 18; TY17, Form 1040, line 18). Refer to EC 208.

# Field 0407, Taxable Unemployment Compensation

3.12.2.7.3.8 (11-27-2020) Field 0407, Taxable Unemployment Compensation Unemployment compensation is transcribed in Field 0407 from Schedule 1, line 7 (TY18, Schedule 1, line 19; TY17, Form 1040, line 19). Taxpayers who received an overpayment of unemployment compensation during the year and repaid it during the tax year are instructed to notate Repaid. Refer to EC 218. Alaska Permanent Fund Dividend (APFD) recipients and taxpayers receiving "Income Tax Energy Rebates" from New Mexico and Oklahoma are instructed to report these amounts as taxable unemployment compensation. Taxpayers report Supplemental Unemployment Benefits (sub-pay) as wages for TY87 and later. Refer to EC 218.

# Field 04SFG, Scholarship and Fellowship Grants

3.12.2.7.3.9 (01-01-2025) Field 04SFG, Scholarship and Fellowship Grants Scholarship and Fellowship Grants is transcribed in Field 04SFG from Schedule 1, line 8r (TY22 and later). Refer to EC 218/337/338/344.

# Field 04OTI, Other Income

3.12.2.7.3.10 (01-01-2020) Field 04OTI, Other Income Other income is transcribed in Field 04OTI from Schedule 1, line 9 (TY20 - TY19, line 8; TY18, Schedule 1, line 21; TY17, Form 1040, line 21). Refer to EC 218.

# Field 04RTA, Form 982 Indicator

3.12.2.7.3.11 (01-01-2020) Field 04RTA, Form 982 Indicator Code and Edit edits "1" in the left margin of Schedule 1, line 11, (TY20 and prior, in the left margin of Schedule 1, line 10) when Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (And Section 1082 Basis Adjustment), is attached. Field 04RTA is transcribed when the Form 982 Indicator is edited. This is a one-digit numeric field. This field will be invalid if other than 0 or 1.

# Fields 04EDU, Educator Expenses

3.12.2.7.3.12 (11-27-2020) Fields 04EDU, Educator Expenses Educator expenses is transcribed in Field 04EDU from Schedule 1, line 11 (TY20 - TY19, Schedule 1, line 10; TY18, Schedule 1, line 23; TY17, Form 1040, line 23). Refer to EC 220.

# Field 04CBE, Reservist and Others Business Expenses

3.12.2.7.3.13 (01-01-2020) Field 04CBE, Reservist and Others Business Expenses Field 04CBE is transcribed from Schedule 1, line 12 (TY20 - TY19, Schedule 1, line 11; TY18, Schedule 1, line 24; TY17, Form 1040, line 24). Certain business expenses of reservists, performing artists, and fee-basis government officials are reported on Form 2106. This field will be invalid if other than numeric or blank. Refer to EC 229.

# Field 04HSA, Combined Health Savings Account Deduction

3.12.2.7.3.14 (01-01-2020) Field 04HSA, Combined Health Savings Account Deduction Health savings account deduction is transcribed in Field 04HSA from Schedule 1, line 13 (TY20 - TY19, Schedule 1, line 12; TY18, Schedule 1, line 25; TY17, Form 1040, line 25). Refer to EC 226.

# Field 04MOV, Form 3903 Moving Expenses

3.12.2.7.3.15 (01-01-2020) Field 04MOV, Form 3903 Moving Expenses Moving expenses is transcribed in Field 04MOV from Schedule 1, line 14 (TY20 - TY19, Schedule 1, line 13; TY18, Schedule 1, line 26; TY17, Form 1040, line 26). Refer to EC 229.

# Field 04DSE, Deduction for Self-Employment Tax

3.12.2.7.3.16 (01-01-2020) Field 04DSE, Deduction for Self-Employment Tax The deduction for self-employment (SE) tax is transcribed in Field 04DSE from Schedule 1, line 15 (TY20 - TY19, Schedule 1, line 14; TY18, Schedule 1, line 27; TY17, Form 1040, line 27). Refer to EC 211.

# Field 04SEP, Self Employed Retirement Plans Deduction

3.12.2.7.3.17 (01-01-2020) Field 04SEP, Self Employed Retirement Plans Deduction Self-employed SEP, SIMPLE, and qualified plans deduction is transcribed in Field 04SEP from Schedule 1, line 16 (TY20 - TY19, Schedule 1, line 15; TY18, Schedule 1, line 28; TY17, Form 1040, line 28). Refer to EC 222.

# Field 04HID, Self Employed Health Insurance Deduction

3.12.2.7.3.18 (01-01-2020) Field 04HID, Self Employed Health Insurance Deduction Self-employed health insurance deduction is transcribed in Field 04HID from Schedule 1, line 17 (TY20 - TY19, Schedule 1, line 16; TY18, Schedule 1, line 29; TY17, Form 1040, line 29). Refer to EC 229.

# Field 04PEW, Penalty on Savings Withdrawal

3.12.2.7.3.19 (01-01-2020) Field 04PEW, Penalty on Savings Withdrawal Penalty on early withdrawal of savings is transcribed in Field 04PEW from Schedule 1, line 18 (TY20 - TY19, Schedule 1, line 17; TY18, Schedule 1, line 30; TY17, Form 1040, line 30). Refer to EC 229.

# Field 04ALP, Alimony Paid

3.12.2.7.3.20 (04-24-2025) Field 04ALP, Alimony Paid Alimony paid is transcribed in Field 04ALP from Schedule 1, line 19a (TY20 - TY19, Schedule 1, line 18a; TY18, Schedule 1, line 31a; TY17, Form 1040, line 31a). TY19 and later, if the date on Schedule 1, line 19c (TY20 - TY19, line 18c), is after December 31, 2018, do not enter the amount in Field 04ALP. Refer to EC 078 and EC 229.

# Field 04SSN, Alimony SSN

3.12.2.7.3.21 (01-01-2025) Field 04SSN, Alimony SSN Alimony Recipient's SSN is transcribed in Field 04SSN from Schedule 1, line 19b (TY20 - TY19, Schedule 1, line 18b; TY18, Schedule 1, line 31b; TY17, Form 1040, line 31b). When a correction is made to the alimony recipient's SSN in Field 04SSN, GTSEC 02 and enter R in Field 02RI to revalidate. Refer to EC 078.

# Field 04IRA, IRA Deduction

3.12.2.7.3.22 (11-27-2020) Field 04IRA, IRA Deduction IRA deduction is transcribed in Field 04IRA from Schedule 1, line 20 (TY20 - TY19, Schedule 1, line 19; TY18, Schedule 1, line 32; TY17, Form 1040, line 32). Refer to EC 222.

# Field 04SLI, Student Loan Interest Deduction

3.12.2.7.3.23 (11-27-2020) Field 04SLI, Student Loan Interest Deduction Student loan interest deduction is transcribed in Field 04SLI from Schedule 1, line 21 (TY20 - TY19, Schedule 1, line 20; TY18, Schedule 1, line 33; TY17, Form 1040, line 33). Refer to EC 224.

# Field 04MSA, Archer Medical Savings Account (MSA) Deduction

3.12.2.7.3.24 (01-03-2023) Field 04MSA, Archer Medical Savings Account (MSA) Deduction Field 04MSA is transcribed from the dotted portion of Schedule 1, line 23 (TY21, Schedule 1, line 23; TY20 - TY19, the dotted portion of Schedule 1, line 22; TY18, Schedule 1, line 36). Refer to EC 227.

# Field 04ADJ, Other Adjustments

3.12.2.7.3.25 (01-03-2023) Field 04ADJ, Other Adjustments Field 04ADJ is transcribed from the dotted portion of Schedule 1, line 25 (TY21, Schedule 1, line 25; TY20 - TY19, the dotted portion of Schedule 1, line 22; TY18, Schedule 1, line 36). Refer to EC 229.

# Field 04TQT, Total Qualified Tips Income

3.12.2.7.3.26 (01-01-2026) Field 04TQT, Total Qualified Tips Income TY25, Field 04TQT is transcribed from Schedule 1-A, line 6. Refer to EC 251,

# Field 04DQT, Deduction for Qualified Tips

3.12.2.7.3.27 (01-01-2026) Field 04DQT, Deduction for Qualified Tips TY25, Field 04DQT is transcribed from Schedule 1-A, line 13. Refer to EC 251.

# Field 04QOT, Total Qualified Overtime Compensation Income

3.12.2.7.3.28 (01-01-2026) Field 04QOT, Total Qualified Overtime Compensation Income TY25, Field 04QOT is transcribed from Schedule 1-A, line 14c. Refer to EC 252.

# Field 04DOT, Deduction for Qualified Overtime Compensation

3.12.2.7.3.29 (01-01-2026) Field 04DOT, Deduction for Qualified Overtime Compensation TY25, Field 04DOT is transcribed from Schedule 1-A, line 21. Refer to EC 252.

# Field 04LIP, Total Car Loan Interest Paid

3.12.2.7.3.30 (01-01-2026) Field 04LIP, Total Car Loan Interest Paid TY25, Field 04LIP is transcribed from Schedule 1-A, line 23. Refer to EC 253.

# Field 04LID, Car Loan Interest Deduction

3.12.2.7.3.31 (01-01-2026) Field 04LID, Car Loan Interest Deduction TY25, Field 04LID is transcribed from Schedule 1-A, line 30. Refer to EC 253.

# Field 04DFS, Deduction for Seniors

3.12.2.7.3.32 (01-01-2026) Field 04DFS, Deduction for Seniors TY25, Field 04DFS is transcribed from Schedule 1-A, line 37. Refer to EC 254.

# Section 05, Additional Taxes, Additional Credits and Payments

3.12.2.8 (11-27-2020) Section 05, Additional Taxes, Additional Credits and Payments Section 05 includes additional taxes from Form 1040, Schedule 2, and additional credits and payments from Form 1040, Schedule 3.

# Error Record Format, Section 05

3.12.2.8.1 (01-01-2026) Error Record Format, Section 05 Form 1040 Section 05 consists of the following fields: Schedule 2 and Schedule 3 Field Name Field Location 0521A Excess Advance Premium Tax Credit Repayment Schedule 2, line 1a 0521B Repayment of Clean Vehicle Credit Schedule 2, line 1b 0521C Repayment of Previously Owned Clean Vehicle Credit Schedule 2, line 1c 0521D Schedule 2 Part I Form 4255 Recapture Amount Schedule 2, line 1d 0521E Form 4255 Excessive Payments Amount Schedule 2, line 1e 05PCK Form 4255 Excessive Payments Checkbox Schedule 2, checkboxes below line 1e 0521F Form 4255 Chapter 1 Tax Amount Schedule 2, line 1f 05TCK Form 4255 Chapter 1 Tax Checkbox Schedule 2, checkboxes below line 1f 0521Y Other Additions to Tax Schedule 2, line 1y 05202 Alternative Minimum Tax Schedule 2, line 2 05204 Combined Self-Employment Tax Schedule 2, line 4 05SSM Unreported Social Security and Medicare Tax from Forms 4137 and 8919 Schedule 2, line 7 05IRA Combined Tax on Retirement Plans Schedule 2, line 8 05HSH Combined Household Employment Tax Amount Schedule 2, line 9 05FHB First-Time Homebuyer Credit Repayment Schedule 2, line 10 (TY24 - TY10 only) 05AMT Form 8959 Additional Medicare Tax Schedule 2, line 11 05NIT Form 8960 Net Investment Income Tax Schedule 2, line 12 05USS Uncollected Social Security Tax on Tips Schedule 2, line 13 05III Interest Due on Installment Income (IRC 453 Tax; Code L) Schedule 2, line 14 05IDT Interest on Deferred Tax (IRC 453 Tax; Code A) Schedule 2, line 15 05LIR Form 8611 Recapture Tax Schedule 2, line 16 05TAT Total Additional Taxes Schedule 2, line 18 05EPR Schedule 2 Part II Form 4255 Recapture Amount Schedule 2, line 19 05965 Section 965 Tax Installment Schedule 2, line 20 05TL Section 965 Tax Liability ERS input only 05PYC Prior Year Advanced Credit ERS input only 05301 Foreign Tax Credit Schedule 3, line 1 05302 Credit for Child and Dependent Care Schedule 3, line 2 05303 Education Credit Schedule 3, line 3 05304 Retirement Savings Contribution Credit Schedule 3, line 4 0505A Residential Clean Energy Credit Schedule 3, line 5a 0505B Energy Efficient Home Improvement Credit Schedule 3, line 5b 05GBC General Business Credit Schedule 3, line 6a 05PYM Credit for Prior Year Minimum Tax Schedule 3, line 6b 05ADC Adoption Credit Schedule 3, line 6c 05ELD Credit for the Elderly Schedule 3, line 6d 05CVC Clean Vehicles Credit Schedule 3, line 6f 05MIC Mortgage Interest Credit Schedule 3, line 6g 05POC Previously Owned Clean Vehicles Credit Schedule 3, line 6m 05OSC Other Statutory Credits Schedule 3, line 6h through 6l (6z ERS only) 05ONC Total Other Nonrefundable Credits Schedule 3, line 7 05PTC Premium Tax Credit Amount Schedule 3, line 9 05EXT Form 4868 Payment with Request for Extension Schedule 3, line 10 05ESS Excess Social Security and RRTA Tax Schedule 3, line 11 05FUE Form 4136 Fuel Tax Credit Schedule 3, line 12 05RIC Form 2439 Regulated Investment Company and Real Estate Investment Trust Credit Schedule 3, line 13a 05EYR Credit for Earlier Year Income Repayment Schedule 3, line 13b 05EPA Net Elective Payment Election Amount Schedule 3, line 13c 05OTH Other Payment or Credit Amount ERS input only, Schedule 3, line 13d and 13z write-in 05TYP Other Payment or Credit Type Code ERS input only, left of line 13z 05OPR Total Other Payments and Refundable Credits Schedule 3, line 14

# Invalid Conditions

3.12.2.8.2 (01-01-2020) Invalid Conditions Fields in Section 05 will display as invalid if not all numeric.

# Correction Procedures

3.12.2.8.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 05 fields follow.

# Field 0521A, Excess Advance Premium Tax Credit Repayment

3.12.2.8.3.1 (01-01-2025) Field 0521A, Excess Advance Premium Tax Credit Repayment Excess advance premium tax credit (APTC) repayment is transcribed in Field 0521A from Schedule 2, line 1a (TY23 - TY19, Schedule 2, line 2; TY18, Schedule 2, line 46; TY17, Form 1040, line 46). The field must be numeric, positive, and dollars only. Refer to EC 190 and EC 270.

# Field 0521B, Repayment of Clean Vehicle Credit

3.12.2.8.3.2 (01-01-2025) Field 0521B, Repayment of Clean Vehicle Credit Repayment of new clean vehicle credit is transcribed in Field 0521B from Schedule 2, line 1b. Refer to EC 277.

# Field 0521C, Repayment of Previously Owned Clean Vehicle Credit

3.12.2.8.3.3 (01-01-2025) Field 0521C, Repayment of Previously Owned Clean Vehicle Credit Repayment of previously owned clean vehicle credit is transcribed in Field 0521C from Schedule 2, line 1c. Refer to EC 277.

# Field 0521D, Schedule 2 Part I Form 4255 Recapture Amount

3.12.2.8.3.4 (01-01-2025) Field 0521D, Schedule 2 Part I Form 4255 Recapture Amount Recapture of net elective payment election (EPE) from Form 4255, line 2a, column (l), is transcribed in Field 0521D from Schedule 2, line 1d. Refer to EC 277.

# Field 0521E, Form 4255 Excessive Payments Amount

3.12.2.8.3.5 (01-01-2025) Field 0521E, Form 4255 Excessive Payments Amount Excessive payments (EP) on gross elective payment election (EPE) from Form 4255 is transcribed in Field 0521E from Schedule 2, line 1e. Refer to EC 277.

# Field 05PCK, Form 4255 Excessive Payments Checkbox

3.12.2.8.3.6 (01-01-2025) Field 05PCK, Form 4255 Excessive Payments Checkbox Field 05PCK is a four-position numeric field transcribed from the checkboxes below Schedule 2, line 1e. Field 05PCK valid values are defined as follows: 0 in any position (box is not checked) 1 in position 1 of the field - Checkbox i is checked 2 in position 2 of the field - Checkbox ii is checked 3 in position 3 of the field - Checkbox iii is checked 4 in position 4 of the field - Checkbox iv is checked Refer to EC 277.

# Field 0521F, Form 4255 Chapter 1 Tax Amount

3.12.2.8.3.7 (01-01-2025) Field 0521F, Form 4255 Chapter 1 Tax Amount Increase in Chapter 1 tax, 20% EP from Form 4255, is transcribed in Field 0521F from Schedule 2, line 1f. Refer to EC 277.

# Field 05TCK, Form 4255 Chapter 1 Tax Checkbox

3.12.2.8.3.8 (01-01-2025) Field 05TCK, Form 4255 Chapter 1 Tax Checkbox Field 05TCK is a four-position numeric field transcribed from the checkboxes below Schedule 2, line 1f. Field 05TCK valid values are defined as follows: 0 in any position (box is not checked) 1 in position 1 of the field - Checkbox i is checked 2 in position 2 of the field - Checkbox ii is checked 3 in position 3 of the field - Checkbox iii is checked 4 in position 4 of the field - Checkbox iv is checked Refer to EC 277.

# Field 0521Y, Other Additions to Tax

3.12.2.8.3.9 (01-01-2025) Field 0521Y, Other Additions to Tax Other additions to tax is transcribed in Field 0521Y from Schedule 2, line 1y. Refer to EC 277.

# Field 05202, Alternative Minimum Tax, Form 6251

3.12.2.8.3.10 (01-01-2025) Field 05202, Alternative Minimum Tax, Form 6251 Alternative minimum tax (AMT) is transcribed in Field 05202 from Schedule 2, line 2 (TY23 - TY19, Schedule 2, line 1; TY18, Schedule 2, line 45; TY17, Form 1040, line 45). Refer to EC 267.

# Field 05204, Combined Self-Employment Tax

3.12.2.8.3.11 (01-01-2020) Field 05204, Combined Self-Employment Tax Combined self-employment tax is transcribed in Field 05204 from Schedule 2, line 4 (TY18, Schedule 4, line 57; TY17, Form 1040, line 57). Refer to EC 209.

# Field 05SSM, Combined Unreported Social Security and Medicare Tax, Forms 4137 and 8919

3.12.2.8.3.12 (01-01-2020) Field 05SSM, Combined Unreported Social Security and Medicare Tax, Forms 4137 and 8919 Combined unreported social security and Medicare tax from Form 4137 and Form 8919 is transcribed in Field 05SSM from Schedule 2, line 7 (TY20 - TY19, Schedule 2, line 5; TY18, Schedule 4, line 58; TY17, Form 1040, line 58). Refer to EC 314.

# Field 05IRA, Combined Tax on Retirement Plans

3.12.2.8.3.13 (01-01-2020) Field 05IRA, Combined Tax on Retirement Plans Additional tax on IRAs and other retirement plans is transcribed in Field 05IRA from Schedule 2, line 8 (TY20 - TY19, Schedule 2, line 6; TY18, Schedule 4, line 59; TY17, Form 1040, line 59). Refer to EC 318.

# Field 05HSH, Combined Household Employment Taxes, Schedule H

3.12.2.8.3.14 (01-01-2020) Field 05HSH, Combined Household Employment Taxes, Schedule H Combined household employment taxes is transcribed in Field 05HSH from Schedule 2, line 9 (TY20 - TY19, Schedule 2, line 7a; TY18, Schedule 4, line 60a; TY17, Form 1040, line 60a). Combined household employment taxes field is valid for TY95 and later. Refer to EC 322, EC 324 and EC 326.

# Field 05FHB, First-Time Homebuyer Credit Repayment

3.12.2.8.3.15 (01-01-2026) Field 05FHB, First-Time Homebuyer Credit Repayment TY24 - TY10, first-time homebuyer credit repayment is transcribed in Field 05FHB from Schedule 2, line 10 (TY20 - TY19, Schedule 2, line 7b; TY18, Schedule 4, line 60b; TY17, Form 1040, line 60b). Refer to EC 329.

# Field 05AMT, Form 8959 Additional Medicare Tax

3.12.2.8.3.16 (01-01-2024) Field 05AMT, Form 8959 Additional Medicare Tax Field 05AMT, Form 8959 Additional Medicare Tax, is transcribed from Schedule 2, line 11 (TY20 - TY19, Schedule 2, line 8a; TY18, Schedule 4, line 62a). Refer to EC 331 and 333.

# Field 05NIT, Form 8960 Net Investment Income Tax

3.12.2.8.3.17 (01-01-2024) Field 05NIT, Form 8960 Net Investment Income Tax Field 05NIT, Form 8960 Net Investment Income Tax is transcribed from Schedule 2, line 12 (TY20 - TY19, Schedule 2, line 8b; TY18, Schedule 4, line 62b). Refer to EC 332 and 333.

# Field 05USS, Uncollected Tax on Reported Tips

3.12.2.8.3.18 (01-01-2024) Field 05USS, Uncollected Tax on Reported Tips Field 05USS, uncollected tax on reported tips is transcribed in Field 05USS from Schedule 2, line 13 (TY20 - TY19, is a write-in on Schedule 2, line 8c; TY18, Schedule 4, line 62c; TY17, Form 1040, line 62c). Refer to Form W-2, box 12, Deferral Codes A, B, M and/or N. Enter the amount in Field 05USS. Refer to EC 333.

# Field 05III, Interest Due on Installment Income (IRC 453 Tax; Code L)

3.12.2.8.3.19 (01-01-2024) Field 05III, Interest Due on Installment Income (IRC 453 Tax; Code L) Field 05III, Interest Due on Installment Income (IRC 453 tax, code L) is transcribed from Schedule 2, line 14 [TY20 - TY19, line 8 with write-in "453(l)(3)" ]. Field 05III is valid for TY19 and later. Blank the field if input on TY18 or prior returns, Refer to EC 333 and 334.

# Field 05IDT, Interest on Deferred Tax (IRC 453 Tax; Code A)

3.12.2.8.3.20 (01-01-2024) Field 05IDT, Interest on Deferred Tax (IRC 453 Tax; Code A) Field 05IDT, Interest on Deferred Tax (IRC 453 tax; code A) is transcribed from Schedule 2, line 15. [TY20 - TY19, line 8 with write-in "IRC 453A(c)" ]. Field 05IDT is valid for TY19 and later. Blank the field if input on TY18 or prior returns, Refer to EC 333 and 334.

# Field 05LIR, Form 8611 Recapture

3.12.2.8.3.21 (01-01-2022) Field 05LIR, Form 8611 Recapture Field 05LIR, Form 8611 Recapture, is transcribed from Schedule 2, line 16 (TY20 - TY19, is a write-in "LIHCR" Schedule 2, line 8; TY18, Schedule 4, line 62; TY17, Form 1040, line 62). Refer to EC 333.

# Field 05TAT, Total Additional Taxes

3.12.2.8.3.22 (01-01-2022) Field 05TAT, Total Additional Taxes Field 05TAT, Total Additional Taxes, is transcribed from Schedule 2, line 18 (TY20 - TY19, is a write-in that includes "Other Taxes" Schedule 2, line 8; TY18, Schedule 4, line 62; TY17, Form 1040, line 62). Refer to EC 333.

# Field 05EPR, Schedule 2 Part II Form 4255 Recapture Amount

3.12.2.8.3.23 (01-01-2026) Field 05EPR, Schedule 2 Part II Form 4255 Recapture Amount TY24 and later, recapture of net EPE from Form 4255, line 1d, column (l) is transcribed in Field 05EPR from Schedule 2, line 19. Refer to EC 333.

# Field 05965, Section 965 Tax Installment

3.12.2.8.3.24 (01-01-2020) Field 05965, Section 965 Tax Installment Section 965 net tax liability installment applies to TY18 and later, and is transcribed in Field 05965 from Schedule 2, line 20 (TY20 - TY19, Schedule 2, line 9; TY18, Schedule 4, line 63; TY17, Form 1040, line 63). Refer to EC 188.

# Field 05TL, Section 965 Tax Liability

3.12.2.8.3.25 (01-01-2020) Field 05TL, Section 965 Tax Liability Section 965 Tax Liability applies to TY18 and later. Field 05TL is an ERS input only field from Part I, column (d), Form 965-A. Refer to EC 188.

# Field 05PYC, Prior Year Advanced Credit

3.12.2.8.3.26 (01-01-2025) Field 05PYC, Prior Year Advanced Credit Field 05PYC is an ERS input only field for additional tax from Schedule 8812 on Schedule 2, line 19 for TY21 only. Refer to EC 333.

# Field 05301, Foreign Tax Credit, Form 1116

3.12.2.8.3.27 (01-01-2024) Field 05301, Foreign Tax Credit, Form 1116 Foreign Tax Credit is transcribed in Field 05301 from Schedule 3, line 1 (TY18, Schedule 3, line 48; TY17, Form 1040, line 48). Refer to EC 277 and EC 310.

# Field 05302, Credit for Child and Dependent Care Expenses, Form 2441

3.12.2.8.3.28 (01-01-2024) Field 05302, Credit for Child and Dependent Care Expenses, Form 2441 Credit for child and dependent care expenses is transcribed in Field 05302 from Schedule 3, line 2 (TY18, Schedule 3, line 49; TY17, Form 1040, line 49). Refer to EC 279 and 280.

# Field 05303, Education Credit, Form 8863

3.12.2.8.3.29 (01-01-2024) Field 05303, Education Credit, Form 8863 Education Credit is transcribed in Field 05303 from Schedule 3, line 3 (TY18, Schedule 3, line 50; TY17, Form 1040, line 50). Refer to EC 283, 284, and 285.

# Field 05304, Retirement Savings Contribution Credit, Form 8880

3.12.2.8.3.30 (01-01-2024) Field 05304, Retirement Savings Contribution Credit, Form 8880 Retirement Savings Contribution Credit is transcribed in Field 05304 from Schedule 3, line 4 (TY18, Schedule 3, line 51; TY17, Form 1040, line 51). Refer to EC 286 and 310.

# Field 0505A, Residential Clean Energy Credit, Form 5695

3.12.2.8.3.31 (01-01-2024) Field 0505A, Residential Clean Energy Credit, Form 5695 Residential Energy Credit is transcribed in Field 0505A from Schedule 3, line 5a (TY22 - TY19, Schedule 3, line 5; TY18, Schedule 3, line 53; TY17, Form 1040, line 53). Refer to EC 291.

# Field 0505B, Energy Efficient Home Improvement Credit, Form 5695

3.12.2.8.3.32 (01-01-2026) Field 0505B, Energy Efficient Home Improvement Credit, Form 5695 Energy Efficient Home Improvement Credit is transcribed in Field 0505B from Schedule 3, line 5b for TY23 and later. Refer to EC 292.

# Field 05GBC, General Business Credit, Form 3800

3.12.2.8.3.33 (01-01-2026) Field 05GBC, General Business Credit, Form 3800 General Business Credit is transcribed in Field 05GBC from Schedule 3, line 6a (TY20 - TY19, box a on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 298, 302, 303, and 310.

# Field 05PYM, Credit for Prior Year Minimum Tax, Form 8801

3.12.2.8.3.34 (01-01-2024) Field 05PYM, Credit for Prior Year Minimum Tax, Form 8801 Credit for Prior Year Minimum Tax, Form 8801, is transcribed in Field 05PYM from Schedule 3, line 6b (TY20 - TY19, box b on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 303, 308, and 310.

# Field 05ADC, Adoption Credit, Form 8839

3.12.2.8.3.35 (01-01-2026) Field 05ADC, Adoption Credit, Form 8839 Adoption Credit is transcribed in Field 05ADC from Schedule 3, line 6c (TY20 - TY19, taxpayer checks box c on Form 1040, Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54, and writes "Form 8839" to the right of the box). The non-refundable adoption credit is in effect TY12 and later, and TY09 - TY97. For TY11 - TY10, Form 8839 credit is refundable only. Refer to EC 294 and 298.

# Fields 05ELD, Credit for the Elderly or Disabled, Schedule R

3.12.2.8.3.36 (01-01-2024) Fields 05ELD, Credit for the Elderly or Disabled, Schedule R Credit for the Elderly or Disabled, Schedule R, is transcribed in Field 05ELD from Schedule 3, line 6d (TY20 - TY19, taxpayer checks box c on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54, and writes "Sch R" ). Enter the credit amount from Schedule R in Field 05ELD. If "CFE" or "Sch R" is noted with an amount, and Schedule R is not attached, SSPND 211. Refer to EC 282.

# Field 05CVC, Clean Vehicle Credit, Form 8936

3.12.2.8.3.37 (01-01-2026) Field 05CVC, Clean Vehicle Credit, Form 8936 Clean Vehicle Credit, Form 8936 Part III, is transcribed in Field 05CVC from Schedule 3, line 6f (TY20 - TY19, taxpayer checks box c on Form 1040, Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 297, 298, 302, and 303.

# Field 05MIC, Mortgage Interest Credit, Form 8396

3.12.2.8.3.38 (01-01-2026) Field 05MIC, Mortgage Interest Credit, Form 8396 Mortgage Interest Credit, Form 8396, is transcribed in Field 05MIC from Schedule 3, line 6g (TY20 - TY19, taxpayer checks box c on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 293, 298, and 310.

# Field 05POC, Previously Owned Clean Vehicles Credit, Form 8936

3.12.2.8.3.39 (01-01-2026) Field 05POC, Previously Owned Clean Vehicles Credit, Form 8936 Previously Owned Clean Vehicles Credit, Form 8936 Part IV, is transcribed from Schedule 3, line 6m. Refer to EC 297, 298, and 310.

# Field 05OSC, Other Statutory Credits

3.12.2.8.3.40 (01-01-2024) Field 05OSC, Other Statutory Credits Other Statutory Credits is transcribed in Field 05OSC from Schedule 3, line 6h through 6l. Line 6z is ERS input only and must be added to the field total if present. TY20 - TY19, input if the taxpayer includes this amount on Schedule 3, line 6c (TY18, Schedule 3, line 55; TY17, Form 1040, line 55). Refer to EC 300, 302, 303, and 310.

# Field 05ONC, Total Other Nonrefundable Credits

3.12.2.8.3.41 (01-01-2026) Field 05ONC, Total Other Nonrefundable Credits Total Other Nonrefundable Credits is transcribed in Field 05ONC from Schedule 3, line 7 (TY20 - TY19, Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 298, 300, and 303.

# Field 05PTC, Premium Tax Credit

3.12.2.8.3.42 (01-01-2023) Field 05PTC, Premium Tax Credit Premium Tax Credit is transcribed in Field 05PTC from Schedule 3, line 9 (TY20, Schedule 3, line 8; TY19, Schedule 3, line 9; TY18, Schedule 5, line 70; TY17, Form 1040, line 69). Refer to EC 353 and 354.

# Field 05EXT, Form 4868 Payment

3.12.2.8.3.43 (11-27-2020) Field 05EXT, Form 4868 Payment The amount paid with Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, is transcribed in Field 05EXT from Schedule 3, line 10 (TY20, Schedule 3, line 9; TY19, line 10, Schedule 3; TY18, line 71, Schedule 5; TY17, Form 1040, line 70). Refer to EC 366.

# Field 05ESS, Excess Social Security/RRTA

3.12.2.8.3.44 (01-01-2025) Field 05ESS, Excess Social Security/RRTA Excess social security tax and tier 1 RRTA is transcribed in Field 05ESS from Schedule 3, line 11 (TY20, Schedule 3, line 10; TY19, line 11, Schedule 3; TY18, line 72, Schedule 5; TY17, Form 1040, line 71). Refer to EC 342.

# Field 05FUE, Form 4136, Fuel Tax Credit

3.12.2.8.3.45 (01-01-2024) Field 05FUE, Form 4136, Fuel Tax Credit Fuel tax credit from Form 4136, Credit for Federal Tax Paid on Fuels, is transcribed in Field 05FUE from Schedule 3, line 12 (TY20, Schedule 3, line 11; TY19, line 12, Schedule 3; TY18, line 73, Schedule 5; TY17, Form 1040, line 72). Refer to EC 356.

# Field 05RIC, Form 2439 Regulated Investment Company and Real Estate Investment Trust Credit

3.12.2.8.3.46 (01-01-2023) Field 05RIC, Form 2439 Regulated Investment Company and Real Estate Investment Trust Credit Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, may provide a taxpayer with a Regulated Investment Company and Real Estate Investment Trust Credit that is transcribed in Field 05RIC from Schedule 3, line 13a (TY20, line 12a; TY19, line 13; TY18, Schedule 5, line 74; TY17, Form 1040, line 73). The taxpayer is also instructed to attach Copy B of Form 2439 and to include the amount of credit from Form 2439, line 2, on Schedule 3, line 13a (TY20, Schedule 3, line 12 and check box a; TY18, Schedule 5, line 74; TY17, Form 1040, line 73). Refer to EC 358.

# Field 05EYR, Credit for Earlier Year Income Repayment

3.12.2.8.3.47 (01-01-2024) Field 05EYR, Credit for Earlier Year Income Repayment Section 1341 credit for repayment of amounts included in income from earlier years is transcribed in Field 05EYR from Schedule 3, line 13b. Refer to EC 358.

# Field 05EPA, Net Elective Payment Election Amount

3.12.2.8.3.48 (01-01-2026) Field 05EPA, Net Elective Payment Election Amount TY23 and later, net elective payment election amount from Form 3800 is transcribed from Schedule 3, line 13c. Refer to Error Code 358.

# Field 05OTH, Other Payment or Credit Amount

3.12.2.8.3.49 (01-01-2024) Field 05OTH, Other Payment or Credit Amount Field 05OTH is numeric only, must be a positive amount, and dollars and cents, is ERS input only and is found on Schedule 3, line 13z (TY23, Schedule 3, lines 13d and/or a write-in on 13z; TY22, Schedule 3, lines 13b, 13f, 13h, and/or a write-in on 13z; TY21, Schedule 3, lines 13b, 13c, 13d, 13f, 13g, 13h, and/or a write-in on 13z; TY20, Schedule 3, line 12c and/or 12d; TY19, Schedule 3, line 13; TY18, Schedule 5, line 74; TY17, Form 1040, line 73) or on prior year Form 1040. Field 05OTH and Field 05TYP are used for certain payment or credit amounts without a specific field designator. Refer to EC 366.

# Field 05TYP, Other Payment or Credit Type Code

3.12.2.8.3.50 (01-01-2024) Field 05TYP, Other Payment or Credit Type Code Field 05TYP identifies the payment or credit type code associated with the amount in Field 05OTH, is a one character alphanumeric field, and is ERS input only. Field 05OTH and Field 05TYP are used for certain payment or credit amounts without a specific field designator. Refer to EC 366.

# Field 05OPR, Total Other Payments and Refundable Credits

3.12.2.8.3.51 (01-01-2024) Field 05OPR, Total Other Payments and Refundable Credits Total other payments and refundable credits is transcribed in Field 05OPR from Schedule 3, line 14 (TY20, line 12f; TY19, line 13; TY18, Schedule 5, line 74; TY17, Form 1040, line 73 and checks the box to identify the credit). Refer to EC 358.

# Section 06, Direct Deposit

3.12.2.9 (01-01-2026) Section 06, Direct Deposit Section 06 contains taxpayer information for direct deposit. Refer to EC 137 and 138. Safeguards are in place after error correction to ensure the accuracy of the deposit. If entries in Section 06 do not meet the tests, or if direct deposit is requested on a return for other than the current or the two previous tax years , the IRS will send a notice CP 53 to the taxpayer to explain why we did not allow the direct deposit. The Depositor Account Number (Field 06DAN) is transcribed twice in ISRP. If the two transcriptions do not match, a Priority II Section Error will display.

# Error Record Format, Section 06

3.12.2.9.1 (01-01-2025) Error Record Format, Section 06 Section 06 consists of the following fields: Form 1040 Field Name TY25 - TY22 Field Location Prior Year Field Location 06RTN Routing and Transit Number (RTN) Form 1040, line 35b TY21 - TY20 Form 1040, line 35b TY19 Form 1040, line 21b TY18 Form 1040, line 20b TY17 Form 1040, line 76b 06DAN Depositor Account Number (DAN) Form 1040, line 35d TY21 - TY20 Form 1040, line 35d TY19 Form 1040, line 21d TY18 Form 1040, line 20d TY17 Form 1040, line 76d 06TDA Type Depositor Account Form 1040, line 35c TY21 - TY20 Form 1040, line 35c TY19 Form 1040, line 21c TY18 Form 1040, line 20c TY17 Form 1040, line 76c

# Correction Procedures

3.12.2.9.2 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in all displayed fields. If the only entry in Section 06 is a mark in either the Checking or Savings box, remove any entry in Field 06RTN and 06DAN, then drop to the bottom of the screen and transmit to resolve a section error for Section 06. If the Direct Deposit information section is filled with all X's, DLSEC 06. If it appears that the taxpayer is requesting a direct deposit, don't DLSEC 06 Verify Field 06DAN was input correctly. Caution: When a Section 06 Priority II Error occurs, it is likely the Depositor Account Number (Field 06DAN) has been incorrectly transcribed. On paper returns, if either or both of the entries have been altered on lines 35b or 35d of Form 1040 (TY19, lines 21b or 21d; TY18, lines 20b or 20d; TY17, lines 76b or 76d), delete the entries in Fields 06RTN and 06DAN. If a voided check is attached and the name matches the name on the return, allow direct deposit. Enter all applicable data for the section. Correction procedures for Section 06 fields follow.

# Field 06RTN, Routing and Transit Number

3.12.2.9.2.1 (01-01-2020) Field 06RTN, Routing and Transit Number Routing and Transit Number represents the taxpayer's bank. This field is invalid if it isn't exclusively numeric. Nine digits must be present; blanks aren't valid entries. If fewer than nine digits are present, the computer will generate a zero in each unfilled field. The resulting number isn't the taxpayer's entry and must be deleted as invalid. Verify and correct any transcription errors. Delete the data in Field 06RTN when non-numeric, illegible characters, or fewer than nine digits are present or the routing number has more than nine characters. If the entry has been altered on a paper return, delete the entries in Fields 06RTN and 06DAN. Enter C in the Clear Field when EC 137 displays.

# Field 06DAN, Depositor Account Number

3.12.2.9.2.2 (01-01-2020) Field 06DAN, Depositor Account Number Valid characters are alphanumeric characters and the hyphen. Blank spaces are not allowed within Field 06DAN. Delete the entry in Field 06DAN when any part of the depositor account number is illegible. If the entry has been altered on a paper return, delete the entries in Fields 06RTN and 06DAN. Enter C in the Clear Field when EC 138 displays.

# Field 06TDA, Type Depositor Account

3.12.2.9.2.3 (01-01-2026) Field 06TDA, Type Depositor Account Two alphanumeric characters are valid in Field 06TDA. C: checking account S: savings account Enter C if direct deposit is being requested, and: the checking box is checked both checking and savings boxes are checked neither checking nor savings box is checked Enter S if the savings box is checked.

# Section 07, Schedule A

3.12.2.10 (01-01-2020) Section 07, Schedule A Schedule A, Itemized Deductions, is used to list expenses paid during the year that are allowed as a deduction before taxable income is determined on Form 1040. There may be items on Schedule A that are unallowable by law. C&E tax examiners will edit unallowable codes, if necessary. ERS tax examiners are responsible for the code(s) when entering Section 07 to the error record. The unallowable codes are listed in IRM Exhibit 3.12.2-7.

# Error Record Format, Section 07

3.12.2.10.1 (01-01-2025) Error Record Format, Section 07 Fields in Section 07 must be positive entries. Section 07 comprises these fields: Schedule A Field Name Field Location 0701 Medical Expense Line 1 0703 Percentage of AGI Taxpayer Line 3 0704 Total Medical Deduction Line 4 0704V Total Medical Deduction Verified ERS input only 0705A State and Local Income or Sales Tax Line 5a 07STI State and Local Income or Sales Tax Code Line 5a checkbox 0705B Real Estate Tax Line 5b 0705C Personal Property Taxes Line 5c 0706 Other Taxes Line 6 0707 Total Tax Deduction Line 7 0708A Financial Home Mortgage Interest Line 8a 0708B Personal Seller Home Mortgage Interest Line 8b 0708C Deductible Points Line 8c 0709 Investment Interest Line 9 0710 Total Interest Deduction Line 10 0711 Cash Contributions Line 11 0712 Other Contributions Line 12 0713 Carryover Contributions Line 13 0714 Total Contributions Line 14 0715 Total Casualty/Theft Loss Line 15 0716 Other Itemized Deductions Line 16 0717 Total Itemized Deductions Line 17 0717V Total Itemized Deductions Verified ERS input only 07IEI Itemized Deduction Election Indicator Line 18

# Invalid Condition

3.12.2.10.2 (01-01-2017) Invalid Condition A Section 07 field is in error if not all numeric.

# Correction Procedures

3.12.2.10.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Combine related amounts when there is more than one Schedule A attached. Only one Schedule A can be processed per return. Additional correction procedures for Section 07 fields follow.

# Field 0701, Medical Expense

3.12.2.10.3.1 (01-01-2017) Field 0701, Medical Expense Field 0701 is transcribed from Schedule A, line 1, as the medical and dental expenses. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Refer to EC 232.

# Field 0703, Percentage of AGI Taxpayer

3.12.2.10.3.2 (01-01-2023) Field 0703, Percentage of AGI Taxpayer Field 0703 amount is transcribed from Schedule A, line 3. Refer to EC 232.

# Field 0704, Taxpayer's Total Medical Deduction

3.12.2.10.3.3 (01-01-2017) Field 0704, Taxpayer's Total Medical Deduction Field 0704 amount is transcribed from Schedule A, line 4. Refer to EC 232.

# Field 0704V, Total Medical Verified

3.12.2.10.3.4 (01-01-2017) Field 0704V, Total Medical Verified Field 0704V is ERS input only and is used whenever the computer cannot correctly compute Schedule A, Medical and Dental Expenses (e.g., certain prior year returns).

# Field 0705A, State and Local Income and Sales Tax

3.12.2.10.3.5 (01-01-2019) Field 0705A, State and Local Income and Sales Tax Field 0705A is transcribed from Schedule A, line 5a (TY17, line 5) as the state and local income taxes or general sales taxes. Refer to EC 236.

# Field 07STI, State and Local Income or Sales Tax Code

3.12.2.10.3.6 (02-08-2021) Field 07STI, State and Local Income or Sales Tax Code Field 07STI, state and local income or sales tax code, indicates when the taxpayer has opted to use the deduction for general sales tax by checking box 5a on Schedule A, TY18 and later. Refer to EC 236. The valid codes are as follows: 2: Taxpayer marked "general sales tax" checkbox on Schedule A, line 5a (TY17 and prior, checkbox on line 5b) 0 (Zero) or blank: Checkbox(es) not marked TY18 and later, correct Field 07STI as follows: Enter 2 if box 5a (general sales tax) is checked. Enter 0 if box 5a is not checked. TY17 and prior, correct Field 07STI as follows: Enter 2 if box 5b or both boxes are checked. Enter 0 if only box 5a is checked. Delete the entry if neither of the boxes are checked.

# Field 0705B, Real Estate Taxes

3.12.2.10.3.7 (01-01-2019) Field 0705B, Real Estate Taxes Field 0705B is transcribed from Schedule A, line 5b (TY17, line 6) as state and local real estate taxes. Refer to EC 236.

# Field 0705C, Personal Property Taxes

3.12.2.10.3.8 (01-01-2019) Field 0705C, Personal Property Taxes Field 0705C is transcribed from Schedule A, line 5c (TY17, line 7) as state and local personal property taxes. Refer to EC 236.

# Field 0706, Other Taxes

3.12.2.10.3.9 (01-01-2019) Field 0706, Other Taxes Field 0706 is transcribed from Schedule A, line 6 (TY17, line 8) as other taxes. Refer to EC 236.

# Field 0707, Total Tax Deduction

3.12.2.10.3.10 (01-01-2019) Field 0707, Total Tax Deduction Field 0707 is transcribed from Schedule A, line 7 (TY17, line 9) as total taxes claimed as itemized deductions. Refer to EC 236.

# Field 0708A, Home Mortgage Interest and Points

3.12.2.10.3.11 (01-01-2019) Field 0708A, Home Mortgage Interest and Points Field 0708A is transcribed from Schedule A, line 8a (TY17, line 10) and represents home mortgage interest and points paid to financial institutions. Refer to EC 238.

# Field 0708B, Home Mortgage Interest, Not on Form 1098

3.12.2.10.3.12 (01-01-2019) Field 0708B, Home Mortgage Interest, Not on Form 1098 Field 0705B is transcribed from Schedule A, line 8b (TY17, line 11) and represents mortgage interest paid to individuals. Refer to EC 238.

# Field 0708C, Deductible Points

3.12.2.10.3.13 (01-01-2019) Field 0708C, Deductible Points Field 0708C is transcribed from Schedule A, line 8c (TY17, line 12) and represents deductible points from the purchase of a home not reported on Form 1098. Refer to EC 238.

# Field 0709, Investment Interest

3.12.2.10.3.14 (01-01-2019) Field 0709, Investment Interest Field 0709 is transcribed from Schedule A, line 9 (TY17, line 14) and represents investment interest paid. Refer to EC 238.

# Field 0710, Total Interest Deduction

3.12.2.10.3.15 (01-01-2019) Field 0710, Total Interest Deduction Field 0710 is transcribed from Schedule A, line 10 (TY17, line 15) as total interest claimed as itemized deductions. Refer to EC 238.

# Field 0711, Cash Contributions

3.12.2.10.3.16 (01-01-2019) Field 0711, Cash Contributions Field 0711 is transcribed from Schedule A, line 11 (TY17, line 16) and represents cash contributions as gifts to charity. Refer to EC 240.

# Field 0712, Other Contributions, Not By Check or Cash

3.12.2.10.3.17 (01-01-2019) Field 0712, Other Contributions, Not By Check or Cash Field 0712 is transcribed from Schedule A, line 12 (TY17, line 17) and is for charity contributions not by check or cash. Refer to EC 240. Form 8283, Noncash Charitable Contributions, is required for any deduction ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

# Field 0713, Carryover Contributions

3.12.2.10.3.18 (01-01-2019) Field 0713, Carryover Contributions Field 0713 is transcribed from Schedule A, line 13 (TY17, line 18) as carryover charity contributions. Refer to EC 240.

# Field 0714, Total Contributions

3.12.2.10.3.19 (01-01-2019) Field 0714, Total Contributions Field 0714 is transcribed from Schedule A, line 14 (TY17, line 19) as total gifts to charity claimed as itemized deductions. Refer to EC 240.

# Field 0715, Total Casualty or Theft Loss

3.12.2.10.3.20 (01-01-2019) Field 0715, Total Casualty or Theft Loss Field 0715 is transcribed from Schedule A, line 15 (TY17, line 20) as casualty and theft loss from Form 4684. Refer to EC 242

# Field 0716, Other Itemized Deductions

3.12.2.10.3.21 (01-01-2026) Field 0716, Other Itemized Deductions TY18 and later, Field 0716 is transcribed from Schedule A, line 16 as other itemized deductions. TY17 - TY13, Code and Edit will X line 16 when the other miscellaneous deductions includes non-gambling deductions and the AGI exceeds the threshold for the filing status. Refer to EC 246.

# Field 0717, Total Itemized Deductions

3.12.2.10.3.22 (01-01-2025) Field 0717, Total Itemized Deductions Field 0717 is transcribed from Schedule A, line 17 (TY17, line 29) as total itemized deductions. This field is the total of Fields 0704, 0707, 0710, 0714, 0715, 0716, and 07OTG. Refer to EC 246. TY17 - TY13, total itemized deductions must be limited when the adjusted gross income exceeds the threshold for the filing status. See EC 246, Prior Year.

# Field 0717V, Total Itemized Deductions Verified

3.12.2.10.3.23 (01-01-2019) Field 0717V, Total Itemized Deductions Verified Field 0717V is for ERS input only. There are situations in which programming cannot accurately compute total itemized deductions on Schedule A. In these circumstances, compute Schedule A and enter the correct total itemized deduction in Field 0717V. TY17 - TY13, total itemized deductions must be limited when the adjusted gross income exceeds the threshold for the filing status. See EC 246, Prior Year. When the taxpayer has included amounts on line 16 of Schedule A that are other than gambling losses, and/or casualty and theft losses, see Error Code 246, IRM 3.12.3.23.7.5, and if prior year, see IRM 3.12.3.23.7.8.

# Field 07IEI, Itemized Election Indicator

3.12.2.10.3.24 (01-01-2026) Field 07IEI, Itemized Election Indicator Field 07IEI is transcribed from Schedule A, line 18 (TY17, line 30). The valid values for this field are 0 (zero) and 1. Enter 1 in Field 07IEI when the taxpayer has checked the box on Schedule A, line 18 (TY17, line 30) and used an amount for itemized deductions on Form 1040, line 12e (TY24 - TY22, line 12), that is less than the standard deduction for the filing status, but greater than zero. Refer to EC 256. Note: Certain states require taxpayers to itemize deductions on their federal returns if they itemize on their state returns. When electing this option, the taxpayer is instructed to check the box on Schedule A, line 18 (TY17, line 30). If Form 4563, Exclusion of Income For Bona Fide Residents in American Samoa, or Form 2555, Foreign Earned Income, is present, SSPND 651 (AUSPC only, SSPND 610). Refer to IRM 3.12.2.3.7, International Returns. TY04 and prior, taxpayers will write "IE" to the left of the entry for Itemized Deduction or Standard Deduction on Form 1040 when electing this option.

# Unallowables

3.12.2.10.3.25 (01-01-2020) Unallowables Unallowable Codes 33 through 46 affect itemized deductions. See Exhibit 3.12.2-7. Enter the two-digit code and the unallowable amount when any unallowable conditions are found on Schedule A. Enter in the appropriate fields in Section 02. Enter Unallowable Code 98, for the third code, with no amount and explain the additional codes and amounts in the memo portion of Form 3471 when more than 3 unallowables are identified. (Only three codes may be used.) Or, if applicable, follow local procedures for Unallowable Code 98.

# Section 08, Schedule B

3.12.2.11 (01-01-2017) Section 08, Schedule B Schedule B, Interest and Ordinary Dividends, is used to list interest income in Part I, dividend Income in Part II and to answer questions concerning foreign accounts and trusts in Part III.

# Error Record Format, Section 08

3.12.2.11.1 (01-01-2023) Error Record Format, Section 08 Section 08 consists of the following fields: Schedule B Field Name Field Location 08INT Schedule B Interest Line 2 0803 Excludable Savings Bond Interest Line 3 08DIV Schedule B Dividends Line 6 08FAQ Foreign Accounts Indicator Line 7a, question 1 08FIN FINCEN Required Code Line 7a, question 2 All money amount entries in this section must be positive.

# Invalid Conditions

3.12.2.11.2 (01-01-2020) Invalid Conditions Fields in Section 08 will display in error if not all numeric.

# Correction Procedures

3.12.2.11.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 08 fields follow.

# Field 08INT, Schedule B Gross Interest

3.12.2.11.3.1 (01-01-2017) Field 08INT, Schedule B Gross Interest Add any adjustments indicated in Part I (Schedule B) to the line 2 amount. Enter the result in Field 08INT. Allowable adjustments are "Nominee Distribution" "Accrued Interest" "Tax Exempt Interest"

# Field 0803, Excludable Savings Bond Interest

3.12.2.11.3.2 (01-01-2024) Field 0803, Excludable Savings Bond Interest The amount in Field 0803, transcribed from Schedule B, line 3, represents excluded interest from Series EE and Series I bonds, issued by the Bureau of Public Debt after 1989. This interest is excludable for education expenses incurred by the taxpayer for self, spouse, or dependent. Refer to EC 160. Taxpayers include the interest from the Series EE bonds in line 2 before deducting the excludable amount on line 3. When there is an inconsistency or Form 8815, Exclusion of Interest from Series EE and I U.S. Savings Bonds Issued After 1989, is not attached, SSPND 211.

# Field 08DIV, Schedule B Dividends

3.12.2.11.3.3 (01-01-2026) Field 08DIV, Schedule B Dividends The total dividend amount in Field 08DIV is edited on Schedule B, Part II, above line 6 when adjustments to dividends for "Nominee Distribution" are present on line 5, Schedule B.

# Field 08FAQ, Foreign Accounts Code

3.12.2.11.3.4 (01-01-2025) Field 08FAQ, Foreign Accounts Code Field 08FAQ is coded from the answer to the first question at line 7a of Schedule B: "At any time during 20XX, did you have a financial interest in or signature authority over a financial account..." The valid codes are 0, 1, 2, and 3. 0: default value 1: the Yes box is checked 2: the No box is checked, or both boxes are checked 3: neither box is checked, entered only by ERS

# Field 08FIN, FinCEN Required Code

3.12.2.11.3.5 (01-01-2025) Field 08FIN, FinCEN Required Code Field 08FIN is coded from the answer to the second question at line 7a of Schedule B: "If Yes, are you required to file FinCEN Form 114..." The valid codes are 0, 1, and 2. 0: neither box is checked (default value) 1: the Yes box is checked 2: the No box is checked, or both boxes are checked

# Sections 09, 10, and 11, Schedule C

3.12.2.12 (01-01-2023) Sections 09, 10, and 11, Schedule C Schedule C, Profit or Loss From Business, is used by taxpayers to report income and expenses from a business or profession. Refer to EC 202. TY18 and prior, Schedule C-EZ, Net Profit From Business, is used to report a profit from business when the taxpayer meets both the following conditions: Expenses are $5,000 or less. Cash method of accounting was used by the taxpayer. Three Schedules C may be processed with a return. The first Schedule C displays as Section 09, the second as Section 10 and the third as Section 11. If the taxpayer files more than three Schedules C, Code and Edit will merge the schedules and adjust all transcription fields. Note: For the remainder of this text, Schedule C will be referred to as Section 09; however, all correction procedures will apply equally to Sections 09, 10 and 11.

# Error Record Format, Section 09, 10, and 11

3.12.2.12.1 (01-01-2026) Error Record Format, Section 09, 10, and 11 Section 09 comprises the fields in the table below. Schedule C Field Name Field Location 09PBD Principal Business Item A 09SSN Social Security Number Upper Right Hand Corner 09NCS NAICS Code Item B 09BNM Business Name Item C 09EIN Employer Identification Number Item D 09AMC Accounting Method Code Item F 09FRS First Time Code Item H 09FRQ Schedule C Form 1099 Required Code Item I 09FFD Schedule C Form 1099 Filed Code Item J 09STI Statutory Employee Indicator ERS input only 0901 Gross Receipts Line 1 0902 Returns and Allowances Line 2 0903 Net Gross Receipts Line 3 0904 Cost of Goods Sold Line 4 0906 Other Income Line 6 0909 Car and Truck Expenses Line 9 0913 Depreciation Line 13 0915 Insurance Line 15 0916A Mortgage Interest Line 16a 0917 Legal and Professional Services Line 17 0918 Office Expenses Line 18 0921 Repairs and Maintenance Line 21 0924A Travel Line 24a 0924B Meals and Entertainment Line 24b 0925 Utilities Line 25 0926 Schedule C Wages Line 26 0927A Energy Efficient Building Deduction Amount Line 27a 0927B Other Expenses Line 27b 09EXP Total Expenses Line 28 0930 Expenses for Business Use of Home Line 30 09AR At Risk Code Line 32a/32b 09PAL Passive Activity Losses Entry Indicator To the left of line 31 0935 Inventory Beginning Year Line 35 0941 Inventory End Year Line 41 All fields must be positive with the exception of Field 0906, which can be either positive or negative.

# Invalid Conditions

3.12.2.12.2 (01-01-2017) Invalid Conditions Fields in Section 09 will display as invalid if not all alpha, numeric, or blank. Additional invalid conditions for specific fields in Section 09 follow.

# Correction Procedures

3.12.2.12.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. When the taxpayer has filed more than three Schedules C, consolidate according to the following priority. Priority Condition 1 Farming 2 Fisheries 3 Not farming or fisheries 4 Gains only or losses only, whenever possible 5 Schedules with lesser amounts of gross receipts, on line 1 Schedule C or line 1d of Schedule C for TY11 Caution: Do not combine any Schedules C that have been identified as "Statutory Employee" with "non-statutory" Schedules C. Note: Do not combine primary taxpayer Schedule C data with secondary taxpayer Schedule C data. Statutory Employees, who are not subject to Self-Employment Tax, receive a Form W-2 with the box checked for Statutory Employee. For TY12 and later, these taxpayers are instructed to identify themselves as Statutory employees by checking the box on line 1, Schedule C. Note: Statutory Employees are individuals in specified occupational groups who are not common law employees. These include: Industrial homeworkers, full-time life insurance salespersons, certain agent or commission drivers (engaged in the distribution of meat products, vegetable products, fruit products, bakery products, beverages (other than milk), or laundry or dry cleaning services) and traveling or city salespersons. Adjust all fields following the taxpayer's intent when the taxpayer is dividing the income under Community Property rules and the FSC is not 1, 3, or 4. Refer to EC 260 for instructions when the FSC is 1, 3, 4, or 7. Additional correction procedures for Section 09 fields follow.

# Field 09PBD, Principal Business Description

3.12.2.12.3.1 (01-01-2017) Field 09PBD, Principal Business Description Field 09PBD, Principal Business Description, is transcribed from Schedule C, Item A. Principal Business Description will be invalid if not all alpha or blank.

# Field 09SSN, Social Security Number

3.12.2.12.3.2 (01-01-2017) Field 09SSN, Social Security Number Field 09SSN, social security number, is transcribed from Schedule C, SSN box. Field 09SSN will be invalid if other than nine numeric characters.

# Field 09NCS, North American Industry Classification System (NAICS) Code

3.12.2.12.3.3 (01-01-2017) Field 09NCS, North American Industry Classification System (NAICS) Code Field 09NCS, NAICS Code, is transcribed from Schedule C, Item B. Field 09NCS will be invalid if other than six numeric characters or blanks. When correcting this field use the following guidelines: Enter the code entered by the taxpayer on Schedule C. Enter the first NAICS code, if more than one code is present. Delete the entry when more than six numeric entries are in the field. If fewer than six numbers are present, enter leading zeros until six numbers are present (e.g., if the return has an entry of 1234 in Item B, correct Field 09NCS to 001234).

# Field 09BNM, Business Name

3.12.2.12.3.4 (01-01-2017) Field 09BNM, Business Name Field 09BNM, Business Name, is transcribed from Schedule C, Item C. Business Name is invalid if other than 20 alphanumeric characters.

# Field 09EIN, Employer Identification Number

3.12.2.12.3.5 (01-01-2017) Field 09EIN, Employer Identification Number Field 09EIN, Employer Identification Number, is transcribed from Schedule C, Item D. Employer Identification Number (EIN) will be invalid if other than 9 numeric characters. Enter the EIN, entered by the taxpayer on Schedule C, when correcting or adding this field. The following exceptions will apply: Delete the entry if other than nine numeric characters are present. Do not enter a number that is equal to the primary or secondary SSN.

# Field 09AMC, Accounting Method Code

3.12.2.12.3.6 (01-01-2017) Field 09AMC, Accounting Method Code Field 09AMC, Accounting Method Code, is transcribed from Schedule C, Item F. Accounting Method Code Field will be invalid if other than one of the following: Blank: none of the boxes or multiple boxes are checked. 1: Cash box is checked. 2: Accrual box is checked. 3: Other box is checked.

# Field 09FRS, First-Time Code

3.12.2.12.3.7 (01-01-2017) Field 09FRS, First-Time Code Field 09FRS, First Time Code, is transcribed from Schedule C, Item H. First Time Code Field will be invalid if other than the following: Blank: box is not checked. 1: box is checked.

# Field 09STI, Statutory Employee Indicator

3.12.2.12.3.8 (01-01-2024) Field 09STI, Statutory Employee Indicator Field 09STI, is transcribed from Schedule C when the box is checked on line 1. The field is one space long. Valid values: blank: box is not checked 1: box is checked

# Field 09FRQ, Schedule C Form 1099 Required Code

3.12.2.12.3.9 (01-01-2023) Field 09FRQ, Schedule C Form 1099 Required Code Field 09FRQ is transcribed from Item I of Schedule C. The field is one space long, and only numeric values are valid in this field. Valid values: 0: neither box is checked 1: box Yes is checked 2: box No is checked, or both boxes are checked

# Field 09FFD, Schedule C Form 1099 Filed Code

3.12.2.12.3.10 (01-01-2023) Field 09FFD, Schedule C Form 1099 Filed Code Field 09FFD is transcribed from item J of Schedule C. The field is one space long, and only numeric values are valid in this field. Valid values: 0: neither box is checked 1: box Yes is checked 2: box No is checked, or both boxes are checked

# Field 0901, Gross Receipts Amount

3.12.2.12.3.11 (01-01-2023) Field 0901, Gross Receipts Amount Field 0901, Gross Receipts Amount, is transcribed from line 1 of Schedule C. The field can contain up to eleven numeric characters only.

# Field 0902 through 0906

3.12.2.12.3.12 (01-01-2026) Field 0902 through 0906 Each field is transcribed from its respective line in Schedule C. Field 0902, Returns and Allowances, from line 2. Field 0903, Net Gross Receipts, from line 3. Field 0904, Cost of Goods Sold, from line 4. Field 0906, Other Income, from line 6. Each field can contain up to eleven numeric characters only.

# Field 0909 through 0927B

3.12.2.12.3.13 (01-01-2026) Field 0909 through 0927B These fields are transcribed from Part II, Schedule C. Field 0909, Car and Truck Expenses, from line 9. Field 0913, Depreciation, from line 13. Field 0915, Insurance, from line 15. Field 0916A, Mortgage Interest, from line 16a. Field 0917, Legal and Professional Services, from line 17. Field 0918, Office Expenses, from line 18. Field 0921, Repairs and Maintenance, from line 21. Field 0924A, Travel, from line 24a. Field 0924B, Meals and Entertainment, from line 24b. Field 0925, Utilities, from line 25, Field 0926, Schedule C Wages, from line 26. Field 0927A, Other Expenses, from line 27a. Field 0927B, Energy Efficient Building Deduction, from line 27b. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as shown on the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as shown on the return. Line 26 represents the taxpayer's total salary and wages paid or incurred for the tax year. It does not include salaries and wages deducted elsewhere on the return or amounts paid to the taxpayer filing this Schedule C. The taxpayer will reduce this deduction by the current year credits claimed on Forms 5884, 8844, and 8845. If adding Section 09 from an attachment, GTSEC 09, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Each field can contain up to eleven numeric characters only.

# Field 09EXP, Total Expenses

3.12.2.12.3.14 (01-01-2023) Field 09EXP, Total Expenses Field 09EXP is transcribed from line 28, Schedule C. See EC 202.

# Field 0930, Expenses for Business Use of Home

3.12.2.12.3.15 (01-01-2017) Field 0930, Expenses for Business Use of Home Field 0930 is transcribed from line 30, Schedule C. The taxpayer transfers the amount from line 35 of Form 8829, Expenses for Business Use of Your Home. For TY13 and later, the taxpayer may use the simplified method in computing expense for business use of the home. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See Error Code 202.

# Field 09PAL, Passive Activity Losses Entry Indicator

3.12.2.12.3.16 (01-01-2026) Field 09PAL, Passive Activity Losses Entry Indicator Field 09PAL is transcribed based on a notation of "PAL" to the left of Schedule C, line 31. Valid values: 0: default. 1: "PAL" notation is present on or near line 31 of Schedule C.

# Field 09AR, At-Risk Code

3.12.2.12.3.17 (01-01-2023) Field 09AR, At-Risk Code The At-Risk Code is transcribed from checkboxes on line 32a and/or 32b of Schedule C. Field 09AR will be invalid if other than 1, 2, 3, or blank. When Schedule C is a loss, enter Field 09AR as follows: If Then A] The taxpayer checked only box 32a (all is at risk), Enter 1 in Field 09AR. B] The taxpayer checked box 32b or both boxes 32a and 32b (some is not at risk), Enter 2 in Field 09AR. C] The taxpayer did not check either box 32a or 32b, Enter 3 in Field 09AR. D] Multiple Schedules C were combined, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Enter 3 in Field 09AR. E] Schedule C is for TY85 or before, Enter 3 in Field 09AR. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Refer to EC 070 and 202.

# Fields 0935 and 0941 - Beginning and Ending Inventory

3.12.2.12.3.18 (01-01-2026) Fields 0935 and 0941 - Beginning and Ending Inventory These fields are transcribed from Part III of Schedule C. Field 0935, Inventory Beginning Year, from line 35. Field 0941, Inventory End Year, from line 41. Each field can contain up to eleven numeric characters only.

# Section 12, Schedule D and Form 8949

3.12.2.13 (01-01-2025) Section 12, Schedule D and Form 8949 Schedule D, Capital Gains and Losses, is used to report capital gains and losses, which includes the following: Capital Gain Distributions not reported directly on Form 1040, line 7 (TY19, Form 1040, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13). The sale or exchange of a capital asset not reported on another form or schedule. Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. Non-business bad debts. Refer to EC 204. TY11 and later, taxpayers use Form 8949, Sales and Other Dispositions of Capital Assets, to list short-term and long-term transactions. The totals on line 2, columns (e), (g), and (h), [TY11, columns (e), (f), and (g)] are transferred to the appropriate lines in Part I or II of Schedule D. TY18 and later, when Form 8949 is coded with a Z in column (f) of Part I and/or II, more information will be transcribed regarding investments in Qualified Opportunity Funds (QOF) in Fields 12ZSE through 12ZLF. TY19 and later, when Form 8949 is coded with a Y in column (f) of Part I and/or II, more information will be transcribed regarding investments in Qualified Opportunity Funds (QOF) in Fields 12YSE through 12YLF. Note: For TY10 and before, taxpayers used Schedule D-1 to list more transactions. The combined totals of all Schedules D-1 are brought forward to lines 2 and 9 of Schedule D. Part I of Schedule D is used to report short-term capital gains and losses from assets held one year or less as follows: Taxpayers complete a separate Form 8949 for each type of transaction and check box A, B, or C, Part l, to identify the type. Taxpayers report their short-term gains or losses in column (h). For TY10 and before, taxpayers may complete Schedule D-1 as a continuation sheet for short-term gains or losses reported in Part I (line 2). Part II of Schedule D is used to report long-term capital gains and losses from assets held more than one year as follows: Taxpayers complete a separate Form 8949 for each type of transaction and check box D, E, or F, Part ll, to identify the type. Taxpayers report their long-term gains or losses in column (h). For TY10 and before, taxpayers may complete Schedule D-1 as a continuation sheet for long-term gains reported in Part II (line 9) Part III of Schedule D is the total of Parts I and II and is used to figure the amount for Form 1040, line 7 (TY19, Form 1040, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13). It is also used to determine whether the computation using Capital Gains Tax Rates is applicable to the taxpayer. Part III directs the taxpayer to the Schedule D Tax Worksheet in the instructions to figure the tax on taxable income that is reported on line 15, Form 1040 (TY19, line 12a; TY18, line 11a; TY17, line 44).

# Error Record Format, Section 12

3.12.2.13.1 (01-01-2023) Error Record Format, Section 12 Section 12 consists of the following fields: Schedule D and Form 8949 Field Name Field Location 12QOF Qualified Opportunity Fund Checkbox TY19 and later, Schedule D checkbox above Part I 121AD Short-Term Basis No Adjustments Sales Amount Schedule D line 1a, column (d) 121AE Short-Term Basis No Adjustments Cost Amount Schedule D line 1a, column (e) 121BD Short-Term Basis Transaction Sales Price Schedule D line 1b, column (d) 121BE Short-Term Basis Transactions Cost Schedule D line 1b, column (e) 121BG Short-Term Basis Adjustments Amount Schedule D line 1b, column (g) 122D Short-Term No Basis Transactions Sales Schedule D line 2, column (d) 122E Short-Term No Basis Transaction Cost Amount Schedule D line 2, column (e) 122G Short-Term No Basis Adjustments Amount Schedule D line 2, column (g) 123D Short-Term No 1099B Transactions Sales Schedule D line 3, column (d) 123E Short-Term No 1099B Transaction Cost Amount Schedule D line 3, column (e) 123G Short-Term No 1099B Adjustments Amount Schedule D line 3, column (g) 1205 Short-Term Schedule K-1 Gain Loss Amount Schedule D line 5, column (h) 1207 Net Short-Term Gain or Loss Schedule D line 7 128AD Long-Term Basis No Adjustments Sales Amount Schedule D line 8a, column (d) 128AE Long-Term Basis No Adjustments Cost Amount Schedule D line 8a, column (e) 128BD Long-Term Basis Transactions Sales Schedule D line 8b, column (d) 128BE Long-Term Basis Transactions Cost Schedule D line 8b, column (e) 128BG Long-Term Basis Adjustments Amount Schedule D line 8b, column (g) 129D Long-Term No 1099B Transactions Sales Schedule D line 9, column (d) 129E Long-Term No Basis Transaction Cost Amount Schedule D line 9, column (e) 129G Long-Term No Basis Adjustments Amount Schedule D line 9, column (g) 1210D Long-Term No 1099B Transaction Sales Amount Schedule D line 10, column (d) 1210E Long-Term No 1099B Transaction Cost Amount Schedule D, line 10, column (e) 1210G Long-Term No 1099B Adjustments Amount Schedule D line 10, column (g) 1212 Long-Term Schedule K-1 Gain Loss Amount Schedule D line 12 1213 Capital Gain Distribution Schedule D line 13 1215 Net Long-Term Gain or Loss Schedule D line 15 1218 28 Percent Rate Gain or Loss Schedule D line 18 1219 Unrecaptured Section 1250 Gain Schedule D line 19 12ZSE Form 8949 Z Code QOF Short-Term Investment EIN Form 8949, Part I, column (a) 12ZSD Form 8949 Z Code QOF Short-Term Investment Date Acquired Form 8949, Part I, column (b) 12ZSA Form 8949 Z Code QOF Short-Term Investment Adjustment Amount Form 8949, Part I, column (g) 12ZSF Form 8949 Z Code QOF Short-Term Investment Additional Indicator Form 8949, Part I, edited to the right of column (h) 12YSE Form 8949 Y Code QOF Short-Term Investment EIN Form 8949, Part I, column (a) 12YSD Form 8949 Y Code QOF Short-Term Investment Date Sold or Disposed Form 8949, Part I, column (c) 12YSA Form 8949 Y Code QOF Short-Term Investment Recaptured Deferral Form 8949, Part I, column (g) 12YSF Form 8949 Y Code QOF Short-Term Investment Additional Indicator Form 8949, Part I, edited to right of column (h) 12ZLE Form 8949 Z Code QOF Long-Term Investment EIN Form 8949, Part II, column (a) 12ZLD Form 8949 Z Code QOF Long-Term Investment Date Acquired Form 8949, Part II, column (b) 12ZLA Form 8949 Z Code QOF Long-Term Investment Adjustment Amount Form 8949, Part II, column (g) 12ZLF Form 8949 Z Code QOF Long-Term Investment Additional Indicator Form 8949, Part II, edited to the right of column (h) 12YLE Form 8949 Y Code QOF Long-Term Investment EIN Form 8949, Part II, column (a) 12YLD Form 8949 Y Code QOF Long-Term Investment Date Sold or Disposed Form 8949, Part II, column (c) 12YLA Form 8949 Y Code QOF Long-Term Investment Recapture Deferral Form 8949, Part II, column (g) 12YLF Form 8949 Y Code QOF Long-Term Investment Additional Indicator Form 8949, Part II, edited to the right of column (h) 12DV Schedule D Profit/Loss Verified ERS input only Fields 1207, 1215, and 12DV may be either positive or negative. All other fields must be positive and can have up to eleven numeric characters only.

# Invalid Condition

3.12.2.13.2 (01-01-2017) Invalid Condition Section 12 fields will display as invalid if not all numeric.

# Correction Procedures

3.12.2.13.3 (11-27-2020) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Code and Edit will edit RPC T when all of the following conditions are met: A positive amount of more than $1 is present on Form 1040, line 7 (TY19, Form 1040, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13). Schedule D is not present. The box on Form 1040, line 7 (TY19, Form 1040, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13) is checked. Enter T in Field 01RPC if not edited by Code and Edit when the conditions in paragraph (2) above are met.

# Field 12QOF, Qualified Opportunity Fund Checkbox

3.12.2.13.3.1 (01-01-2024) Field 12QOF, Qualified Opportunity Fund Checkbox TY19 and later, Field 12QOF will be transcribed from the checkboxes on Schedule D, above Part I. This field is a one-position numeric field Valid values: 0: neither box is checked 1: box Yes is checked 2: box No is checked 3: both boxes are checked If Field 12QOF displays as a field error on a TY18 or prior return, enter 0.

# Fields 121AD, 121AE, 121BD, 121BE, 121BG, 122D, 122E, 122G, 123D, 123E, 123G, 1205, and 1207

3.12.2.13.3.2 (01-01-2026) Fields 121AD, 121AE, 121BD, 121BE, 121BG, 122D, 122E, 122G, 123D, 123E, 123G, 1205, and 1207 These fields are transcribed from Part I, Schedule D: Field 121AD, Short-Term Basis No Adjustments Sales Amount, from line 1a, column (d) Field 121AE, Short-Term Basis No Adjustments Cost Amount, from line 1a, column (e) Field 121BD, Short-Term Basis Transaction Sales Price, from line 1b, column (d) Field 121BE, Short-Term Basis Transaction Costs, from line 1b, column (e) Field 121BG, Short-Term Basis Adjustments Amount, from line 1b, column (g) Field 122D, Short-Term No Basis Transactions Sales, from line 2, column (d) Field 122E, Short-Term No Basis Transaction Cost Amount, from line 2, column (e) Field 122G, Short-Term No Basis Adjustments Amount, from line 2, column (g) Field 123D, Short-Term No 1099B Transactions Sales, from line 3, column (d) Field 123E, Short-Term No 1099B Transaction Cost Amount, from line 3, column (e) Field 123G, Short-Term No 1099B Adjustments Amount, from line 3, column (g) Field 1205, Short-Term Schedule K-1 Gain Loss Amount, from line 5, column (h) Field 1207, Net Short-Term Gain or Loss, from line 7 These fields can contain up to eleven numeric digits. If other than numeric digits or illegible, delete the entry.

# Fields 128AD, 128AE, 128BD, 128BE, 128BG, 129D, 129E, 129G, 1210D, 1210E, 1210G, 1212, 1213, and 1215

3.12.2.13.3.3 (01-01-2026) Fields 128AD, 128AE, 128BD, 128BE, 128BG, 129D, 129E, 129G, 1210D, 1210E, 1210G, 1212, 1213, and 1215 These fields are transcribed from Part II, Schedule D. Field 128AD, Long-Term Basis No Adjustments Sales Amount, from line 8a, column (d) Field 128AE, Long-Term Basis No Adjustments Cost Amount, from line 8a, column (e) Field 128BD, Long-Term Basis Transactions Sales, from line 8b, column (d) Field 128BE, Long-Term Basis Transactions Cost, from line 8b, column (e) Field 128BG, Long-Term Basis Adjustments Amount, from line 8b, column (g) Field 129D, Long-Term No 1099B Transactions Sales, from line 9, column (d) Field 129E, Long-Term No Basis Transactions Cost Amount, from line 9, column (e) Field 129G, Long-Term No Basis Adjustments Amount, from line 9, column (g) Field 1210D, Long-Term No 1099B Transaction Sales Amount, from line 10, column (d) Field 1210E, Long-Term No 1099B Transaction Cost Amount, from line 10, column (e) Field 1210G, Long-Term No 1099B Adjustments Amount, from line 10, column (g) Field 1212, Long-Term Schedule K-1 Gain Loss Amount, from line 12 Field 1213, Capital Gain Distribution, from line 13 Field 1215, Net Long-Term Gain or Loss, from line 15 These fields can contain up to eleven numeric digits. If other than numeric digits or illegible, delete the entry.

# Fields 1218 and 1219

3.12.2.13.3.4 (01-01-2026) Fields 1218 and 1219 These fields are transcribed from Part III, Schedule D. Field 1218, 28 Percent Rate Gain or Loss, from line 18 Field 1219, Unrecaptured Section 1250 Gain, from line 19 These fields can contain up to eleven numeric digits. If other than numeric digits or illegible, delete the entry.

# Fields 12ZSE, 12ZSD, 12ZSA, 12ZSF, 12ZLE, 12ZLD, 12ZLA, and 12ZLF

3.12.2.13.3.5 (01-01-2026) Fields 12ZSE, 12ZSD, 12ZSA, 12ZSF, 12ZLE, 12ZLD, 12ZLA, and 12ZLF TY18 and later, these fields are transcribed from Form 8949 when code Z is in column (f) of Form 8949, Part I or II, for certain Qualified Opportunity Fund (QOF) investments. Field 12ZSE, Form 8949 Z Code QOF Short-Term Investment EIN, from Form 8949, Part I, column (a) Field 12ZSD, Form 8949 Z Code QOF Short-Term Investment Date Acquired, from Form 8949, Part I, column (b) Field 12ZSA, Form 8949 Z Code QOF Short-Term Investment Adjustment Amount, from Form 8949, Part I, column (g) Field 12ZSF, Form 8949 Z Code QOF Short-Term Investment Additional Indicator, from Form 8949, Part I, edited to the right of column (h) Field 12ZLE, Form 8949 Z Code QOF Long-Term Investment EIN, from Form 8949, Part II, column (a) Field 12ZLD, Form 8949 Z Code QOF Long-Term Investment Date Acquired, from Form 8949, Part II, column (b) Field 12ZLA, Form 8949 Z Code QOF Long-Term Investment Adjustment Amount, from Form 8949, Part II, column (g) Field 12ZLF, Form 8949 Z Code QOF Long-Term Investment Additional Indicator, from Form 8949, Part II, edited to the right of column (h) Fields 12ZSE and 12ZLE will display as invalid if other than nine digits. If a field error displays and transcription is correct, overlay with nine zeros to delete the entry. Fields 12ZSD and 12ZLD will display as invalid if other than eight numeric digits. If a field error displays, verify transcription: If a valid date is not present in column (b) on Form 8949, overlay with eight zeros to delete the entry. If a valid date is present in column (b) on Form 8949, enter the date in YYYYMMDD format. Fields 12ZSA and 12ZLA are eleven digit numeric positive-only fields. If other than numeric digits in column (g) of Form 8949, delete the entry. Fields 12ZSF and 12ZLF will display as invalid if other than 1 or 0. If more QOF investment(s) are indicated on Form 8949, enter 1; otherwise, enter 0.

# Fields 12YSE, 12YSD, 12YSA, 12YSF, 12YLE, 12YLD, 12YLA, and 12YLF

3.12.2.13.3.6 (01-01-2026) Fields 12YSE, 12YSD, 12YSA, 12YSF, 12YLE, 12YLD, 12YLA, and 12YLF TY19 and later, these fields are transcribed from Form 8949 when code Y is in column f of Form 8949, Part I or II, for certain Qualified Opportunity Fund (QOF) investments. Field 12YSE, Form 8949 Y Code QOF Short-Term Investment EIN, from Form 8949, Part I, column (a) Field 12YSD, Form 8949 Y Code QOF Short-Term Investment Date Sold or Disposed, from Form 8949, Part I, column (c) Field 12YSA, Form 8949 Y Code QOF Short-Term Investment Recaptured Deferral, from Form 8949, Part I, column (g) Field 12YSF, Form 8949 Y Code QOF Short-Term Investment Additional Indicator, from Form 8949, Part I, edited to the right of column (h) Field 12YLE, Form 8949 Y Code QOF Long-Term Investment EIN, from Form 8949, Part II, column (a) Field 12YLD, Form 8949 Y Code QOF Long-Term Investment Date Sold or Disposed, from Form 8949, Part II, column (c) Field 12YLA, Form 8949 Y Code QOF Long-Term Investment Recapture Deferral, from Form 8949, Part II, column (g) Field 12YLF, Form 8949 Y Code QOF Long-Term Investment Additional Indicator, from Form 8949, Part II, edited to the right of column (h) Fields 12YSE and 12YLE will display as invalid if other than nine digits. If a field error displays and transcription is correct, overlay with nine zeros to delete the entry. Fields 12YSD and 12YLD will display as invalid if other than eight numeric digits. If a field error displays, verify transcription: If a valid date is not present in column (b) on Form 8949, overlay with eight zeros to delete the entry. If a valid date is present in column (b) on Form 8949, enter the date in YYYYMMDD format. . Fields 12YSA and 12YLA are eleven digit numeric positive-only fields. If other than numeric digits in column (g) of Form 8949, delete the entry. Fields 12YSF and 12YLF will display as invalid if other than 1 or 0. If more QOF investment(s) are indicated on Form 8949, enter 1; otherwise, enter 0

# Field 12DV, Schedule D Profit/Loss Verified

3.12.2.13.3.7 (01-01-2017) Field 12DV, Schedule D Profit/Loss Verified Field 12DV is for ERS input only.

# Section 13, Schedule E

3.12.2.14 (01-01-2023) Section 13, Schedule E Schedule E, Supplemental Income and Loss, is used to report income/loss from Rents and Royalties, Part I Partnership and S Corporations, Part II Estates and Trusts, Part III Real Estate Mortgage Investment Conduits, Part IV Summary (Farm Rental), Part V Refer to EC 206. The passive activity loss rules may limit the amount of losses the taxpayer can deduct in Parts I, II, and III, and on line 40 of Schedule E. A passive activity is any business activity in which the taxpayer did not materially participate, or any rental activity, regardless of material participation, except for material participation by a real estate professional.

# Error Record Format, Section 13

3.12.2.14.1 (01-01-2023) Error Record Format, Section 13 Section 13 consists of the following fields: Schedule E Field Name Field Location 13FRQ Schedule E Form 1099 Required Code Item A 13FFD Schedule E Form 1099 Filed Code Item B 1314A Repairs Amount, column A Line 14, column A 1314B Repairs Amount, column B Line 14, column B 1314C Repairs Amount, column C Line 14, column C 1323A Total Rental Payments Amount Line 23a 1323B Total Royalty Payments Amount Line 23b 1323C Total Mortgage Interest for All Properties Amount Line 23c 1323D Total Depreciation All Properties Amount Line 23d 1323E Total Expenses All Properties Amount Line 23e 1324 Rent/Royalty Income Line 24 1325 Rent/Royalty Loss Line 25 1327 Passive Income Indicator Line 27 1329H Partnership/S Corporation Passive Income Line 29a, column (h) TY17, line 29a, column (g) 1329K Partnership/S Corporation Nonpassive Income Line 29a, column (k) TY17, line 29a, column (j) 13PIG Partnership/S Corporation Passive Loss Line 29b, column (g) TY17, line 29b, column (f) 1329I Partnership/S Corporation Nonpassive Loss Line 29b, column (i) TY17 line 29b, column (h) 1330 Partnership/S Corporation Income Line 30 1331 Partnership/S Corporation Loss Line 31 1334D Estate and Trust Passive Income Line 34a, column (d) 13PET Estate and Trust Passive Loss Line 34b, column (c) 1335 Estate and Trust Income Line 35 1336 Estate and Trust Loss Line 36 13ES Schedule K-1 ES Payment Indicator Dotted portion of line 37 1339 Real Estate Mortgage Investment Conduits (REMIC) Line 39 1340 Farm Rental Income/Loss Line 40 1342 Farm and Fishing Income Line 42 1343 Real Estate Professionals Net Income or Loss Line 43 Fields 1339 and 1340 may be either positive or negative. All other fields must be entered as positive. All money amount fields are up to eleven numeric characters long.

# Invalid Conditions

3.12.2.14.2 (01-01-2020) Invalid Conditions Fields in Section 13 will display as invalid if not all numeric. Additional invalid conditions are also given for Fields 1327 and 13ES.

# Correction Procedures

3.12.2.14.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 13 fields follow.

# Field 13FRQ, Schedule E Form 1099 Required Code

3.12.2.14.3.1 (01-01-2025) Field 13FRQ, Schedule E Form 1099 Required Code Field 13FRQ, Schedule E Form 1099 Required Code, is transcribed from Item A of Schedule E. The field is one space long, and only the numeric value 0, 1, and 2 are valid. Valid values: 0: neither box is checked. 1: Yes box is checked. 2: No box is checked, or both boxes are checked.

# Field 13FFD, Schedule E Form 1099 Filed Code

3.12.2.14.3.2 (01-01-2025) Field 13FFD, Schedule E Form 1099 Filed Code Field 13FFD, Schedule E Form 1099 Filed Code, is transcribed from Item B of Schedule E. This field will be invalid if other than 0 (zero), 1, or 2. Correct Field 13FFD as follows: 0: neither box is checked. 1: Yes box is checked. 2: No box is checked, or both boxes are checked.

# Fields 1314A, 1314B, and 1314C, Repairs

3.12.2.14.3.3 (01-01-2017) Fields 1314A, 1314B, and 1314C, Repairs Field 1314A, 1314B, and 1314C are transcribed from their respective column on line 14 of Schedule E, as the amount of repairs for each property.

# Fields 1323A to 1323E

3.12.2.14.3.4 (01-01-2026) Fields 1323A to 1323E Field 1323A, Total Rental Payments Amount, is transcribed from line 23a of Schedule E as the total of all amounts reported on line 3 for all rental properties. Field 1323B, Total Royalty Payments Amount, is transcribed from line 23b of Schedule E as the total of all amounts reported on line 4 for all royalty properties. Field 1323C, Total Mortgage Interest for All Properties, is transcribed from line 23c of Schedule E as the total of all amounts reported on line 12 for all properties. Field 1323D, Total Depreciation All Properties, is transcribed from line 23d of Schedule E as the total of all amounts reported on line 18 for all properties. Field 1323E, Total Expenses All Properties, is transcribed from line 23e of Schedule E as the total of all amounts reported on line 20 for all properties.

# Field 1324, Income from Rental Real Estate and Royalties

3.12.2.14.3.5 (01-01-2017) Field 1324, Income from Rental Real Estate and Royalties Field 1324, Income from Rental Real Estate and Royalties, is transcribed from line 24 of Schedule E.

# Field 1325, Loss from Rental Real Estate and Royalties

3.12.2.14.3.6 (01-01-2017) Field 1325, Loss from Rental Real Estate and Royalties Field 1325, Loss from Rental Real Estate and Royalties, is transcribed from line 25 of Schedule E.

# Field 1327 Passive Income Indicator

3.12.2.14.3.7 (01-01-2017) Field 1327 Passive Income Indicator Field 1327, Passive Income Indicator, is transcribed from Schedule E, line 27. This field will be invalid if other than 0,1, or 2. Determine the correct code based on the taxpayer's answer to the question on line 27. Take the following action: If Then A] The taxpayer checked the Yes box, Enter 1 in Field 1327. B] The taxpayer checked the No box, Enter 2 in Field 1327. C] The taxpayer checked both boxes, Enter 1 in Field 1327. D] The taxpayer did not check either box, Enter 0 in Field 1327.

# Field 1329H, Partnership/S Corporation Passive Income

3.12.2.14.3.8 (01-01-2019) Field 1329H, Partnership/S Corporation Passive Income Field 1329H, Partnership/S Corporation Passive Income, is transcribed from Schedule E, line 29a, column (h) [TY17, line 29a, column (g)].

# Field 1329K, Partnership/S Corporation Nonpassive Income

3.12.2.14.3.9 (01-01-2019) Field 1329K, Partnership/S Corporation Nonpassive Income Field 1329K, Partnership/S Corporation Nonpassive Income, is transcribed from Schedule E, line 29a, column (k) [TY17, line 29a column (j)].

# Field 13PIG, Partnership/S Corporation Passive Loss

3.12.2.14.3.10 (01-01-2019) Field 13PIG, Partnership/S Corporation Passive Loss Field 13PIG, Partnership/S Corporation Passive Loss, is transcribed from Schedule E, line 29b, column (g) [TY17, line 29b, column (f)].

# Field 1329I, Partnership/S Corporation Nonpassive Loss

3.12.2.14.3.11 (01-01-2018) Field 1329I, Partnership/S Corporation Nonpassive Loss Field 1329I, Partnership/S Corporation Nonpassive Loss, is transcribed from Schedule E, line 29b, column (i) [TY17, line 29b, column (h)].

# Field 1330, Partnership/S Corporation Income

3.12.2.14.3.12 (01-01-2017) Field 1330, Partnership/S Corporation Income Field 1330, Partnership/S Corporation Income, is transcribed from Schedule E, line 30.

# Field 1331, Partnership/S Corporation Loss

3.12.2.14.3.13 (01-01-2017) Field 1331, Partnership/S Corporation Loss Field 1331, Partnership/S Corporation Loss, is transcribed from Schedule E, line 31.

# Field 1334D, Estate/Trust Passive Income

3.12.2.14.3.14 (01-01-2017) Field 1334D, Estate/Trust Passive Income Field 1334D, Estate/Trust Passive Income, is transcribed from Schedule E, line 34a column (d).

# Field 13PET, Passive Estate and Trust Loss

3.12.2.14.3.15 (01-01-2017) Field 13PET, Passive Estate and Trust Loss Field 13PET, Passive Estate and Trust Loss, is transcribed from Schedule E, line 34b, column (c).

# Field 1335, Estate/Trust Income

3.12.2.14.3.16 (01-01-2017) Field 1335, Estate/Trust Income Field 1335, Estate/Trust Income, is transcribed from Schedule E, line 35.

# Field 1336, Estate/Trust Loss

3.12.2.14.3.17 (01-01-2017) Field 1336, Estate/Trust Loss Field 1336< Estate/Trust Loss, is transcribed from Schedule E, line 36.

# Field 13ES, Schedule K-1 ES Payment

3.12.2.14.3.18 (01-01-2017) Field 13ES, Schedule K-1 ES Payment Field 13ES, Schedule K-1 ES Payment, is transcribed from the dotted portion of Schedule E, line 37. This field will be invalid if other than blank or 1. Check the dotted portion of line 37, and code Field 13ES as indicated in the following table: If Then A] The taxpayer indicates "ES Payment claimed" , Enter 1 in Field 13ES. B] No indication is present, Delete any entry in Field 13ES.

# Field 1339, Real Estate Mortgage Investment Conduits (REMIC)

3.12.2.14.3.19 (01-01-2023) Field 1339, Real Estate Mortgage Investment Conduits (REMIC) Field 1339, Real Estate Mortgage Investment Conduits (REMIC) is transcribed from Schedule E, line 39.

# Field 1340, Farm Rental Income or Loss

3.12.2.14.3.20 (01-01-2017) Field 1340, Farm Rental Income or Loss Field 1340, Farm Rental Income or Loss, is transcribed from Schedule E, line 40.

# Field 1342, Farm and Fishing Income

3.12.2.14.3.21 (01-01-2017) Field 1342, Farm and Fishing Income Field 1342, Farm and Fishing Income, is transcribed from Schedule E, line 42.

# Field 1343, Real Estate Professionals Net Income or Loss

3.12.2.14.3.22 (01-01-2017) Field 1343, Real Estate Professionals Net Income or Loss Field 1343, Real Estate Professionals Net Income or Loss, is transcribed from Schedule E, line 43.

# Sections 14 and 15, Schedule F

3.12.2.15 (01-01-2017) Sections 14 and 15, Schedule F Schedule F, Profit or Loss From Farming, is used to report farm income/expenses. Refer to EC 208. Two Schedules F may be processed with a return. The first Schedule F displays as Section 14 and the second as Section 15. Note: For the remainder of this text, Schedule F will be referred to as Section 14; however, all correction procedures will apply equally to Sections 14 and 15. If the taxpayer files more than two Schedules F, Code and Edit will merge the schedules and adjust all transcription fields according to the accounting method used. The taxpayer may choose either the cash or accrual accounting method to report farm income. Taxpayers are instructed to report gross income for both cash and accrual on line 9. Code and Edit is instructed to "X" line 9 when the taxpayer is using the accrual method. Fields 1401B through 1409 are used for the cash method. Fields 1438A through 1450 are used for the accrual method.

# Error Record Format, Sections 14 and 15

3.12.2.15.1 (01-01-2026) Error Record Format, Sections 14 and 15 Section 14 consists of the following fields: Schedule F Field Name Field Location 14NCS NAICS Code Item B 14EIN Employer Identification Number Item D 14FRQ Schedule F Form 1099 Required Code Item F 14FFD Schedule F Form 1099 Filed Code Item G 1401B Cost of Purchased Items Cash Line 1b 1402 Products Raised Sales Line 2 1403A Gross Cooperative Distributions Cash Line 3a 1403B Taxable Cooperative Distributions Cash Line 3b 1404A Gross Agricultural Program Payments Cash Line 4a 1404B Taxable Agricultural Program Payments Cash Line 4b 1405B CCC Loans Forfeited Cash Line 5b 1406A Gross Crop Insurance Cash Amount Line 6a 1406B Taxable Crop Insurance Amount Line 6b 1407 Custom Hire Cash Line 7 1408 Part I Other Income Amount Line 8 1409 Gross Income Cash Line 9 1413 Machine Hire Line 13 1419 Gas, Fuel, and Oil Deduction Line 19 1421A Mortgage Interest Line 21a 1425 Schedule F Repairs Maintenance Line 25 1428 Supplies Purchased Line 28 1433 Total Farm Expenses Line 33 14PAL Passive Activity Losses Entry Indicator To the left of line 34 14AR At Risk Code Line 36a/36b 1438A Gross Cooperative Distributions Accrual Line 38a 1438B Taxable Cooperative Distributions Accrual Line 38b 1439A Gross Agricultural Program Payments Accrual Line 39a 1440B CCC Loans Forfeited Accrual Line 40b 1443 Part III Other Income Line 43 1444 Total Income Accrual Line 44 1450 Gross Income Accrual Line 50 Field 1409 and 1450 may be either positive or negative. All other fields must be positive.

# Invalid Conditions

3.12.2.15.2 (01-01-2020) Invalid Conditions Fields in Section 14 will display as invalid if not all numeric. Additional invalid conditions are given for Fields 14NCS and 14EIN.

# Correction Procedures

3.12.2.15.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures for Section 14 fields follow.

# Field 14NCS, North American Industry Classification System (NAICS) Code

3.12.2.15.3.1 (01-01-2023) Field 14NCS, North American Industry Classification System (NAICS) Code Field 14NCS is transcribed from Item B of Schedule F. The NAICS Code Field will be invalid if other than six numeric characters or blanks. When correcting this field, use the following guidelines: Enter the code listed on Schedule F by the taxpayer. Enter the first NAICS code, if more than one code present. Delete the entry when more than six numeric entries in the field on the return. If fewer than six numbers are present, enter leading zeros until six numbers are present (e.g., if the return has an entry of 1234 in Item B, correct Field 14NCS to 001234).

# Field 14EIN, Employer Identification Number (EIN)

3.12.2.15.3.2 (01-01-2017) Field 14EIN, Employer Identification Number (EIN) Field 14EIN, employer identification number, is transcribed from item D of Schedule F. The field is nine spaces long; the entry in the field must be nine digits; and only numeric values are valid. Do not enter a number that is the same as the primary or secondary TIN. Delete the entry if the primary or secondary taxpayer's TIN displays in the field or the entry is fewer than nine digits, and you cannot locate the EIN in the return.

# Field 14FRQ, Schedule F Form 1099 Required Code

3.12.2.15.3.3 (01-01-2025) Field 14FRQ, Schedule F Form 1099 Required Code Field 14FRQ, Schedule F Form 1099 Required Code, is transcribed from item F of Schedule F. The field is one space long, and only numeric values are valid. Valid values: 0: neither box is checked. 1: box Yes is checked. 2: box No is checked, or both boxes are checked.

# Field 14FFD, Schedule F Form 1099 Filed Code

3.12.2.15.3.4 (01-01-2025) Field 14FFD, Schedule F Form 1099 Filed Code Field 14FFD, Schedule F Form 1099 Filed Code, is transcribed from item G of Schedule F. The field is one space long, and only numeric values are valid. Valid values: 0: neither box is checked. 1: box Yes is checked. 2: box No is checked, or both boxes are checked.

# Fields 1401B through 1409

3.12.2.15.3.5 (01-01-2026) Fields 1401B through 1409 These fields are transcribed from Part I Farm Income -Cash Method of Schedule F. Field 1401B, Cost of Purchased Items Cash, from line 1b. Field 1402, Products Raised Sales, from line 2. Field 1403A, Gross Cooperative Distributions Cash, from line 3a. Field 1403B, Taxable Cooperative Distributions Cash, from line 3b. Field 1404A, Gross Agricultural Program Payments Cash, from line 4a. Field 1404B, Taxable Agricultural Program Payments Cash, from line 4b. Field 1405B, CCC Loans Forfeited Cash, from line 5b. Field 1406A, Gross Crop Insurance Cash Amount, from line 6a. Field 1406B, Taxable Crop Insurance Amount, from line 6b. Field 1407, Custom Hire Cash, from line 7. Field 1409, Gross Income Cash, from line 9. Each of these fields can contain up to 11 numeric digits as dollars only.

# Fields 1413 through 1428

3.12.2.15.3.6 (01-01-2026) Fields 1413 through 1428 These fields are transcribed from Part II (Farm Expenses) of Schedule F. Field 1413, Machine Hire, is transcribed from Schedule F, line 13. Field 1419, Gas, Fuel, and Oil Deduction, is transcribed from Schedule F, line 19. Field 1421A, Mortgage Interest, is transcribed from Schedule F, line 21a. Field 1425, Schedule F Repairs Maintenance, is transcribed from Schedule F, line 25. Field 1428, Supplies, is transcribed from Schedule F, line 28. Each of these fields can contain up to 11 numeric digits as dollars only.

# Field 1433, Total Farm Expenses

3.12.2.15.3.7 (01-01-2017) Field 1433, Total Farm Expenses Field 1433 is transcribed from line 33 and is the total of all farm expenses in Part II, Schedule F. This field can contain up to 11 numeric digits as dollars only.

# Field 14PAL, Passive Activity Losses Entry Indicator

3.12.2.15.3.8 (01-01-2026) Field 14PAL, Passive Activity Losses Entry Indicator Field 14PAL is transcribed based on a notation of "PAL" to the left of Schedule F, line 34. Valid values: 0: default. 1: "PAL" notation is present on or near line 34 of Schedule F.

# Field 14AR, At-Risk Code

3.12.2.15.3.9 (01-01-2020) Field 14AR, At-Risk Code Field 14AR, At-Risk Code, is transcribed from line 36a or 36b of Schedule F. The field is one space long, and only numeric values and blank are valid. Valid values: blank: the default value, no box checked 1: box 36a checked 2: box 36b checked or both boxes 36a and 36b checked 3: box 36a and 36b unchecked or Schedules F combined≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ When Schedule F is a loss, enter Field 14AR as follows: If Then A] The taxpayer checked only box 36a, Enter 1 in Field 14AR. B] The taxpayer checked only box 36b, Enter 2 in Field 14AR. C] The taxpayer checked both box 36a and box 36b, Enter 2 in Field 14AR. D] The taxpayer did not check either box 36a or box 36b, Enter 3 in Field 14AR. E] Multiple Schedules F were combined ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Enter 3 in Field 14AR. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Fields 1438A through 1450

3.12.2.15.3.10 (01-01-2026) Fields 1438A through 1450 These fields are transcribed from Part III, Farm Income - Accrual Method of Schedule F: Field 1438A, Gross Cooperative Distributions Accrual, is transcribed from Schedule F, line 38a. Field 1438B, Taxable Cooperative Distributions Accrual, is transcribed from Schedule F, line 38b. Field 1439A, Gross Agricultural Program Payments Accrual, is transcribed from Schedule F, line 39a. Field 1440B, CCC Loans Forfeited Accrual, is transcribed from Schedule F, line 40b. Field 1444, Total Income Accrual, is transcribed from Schedule F, line 44. Field 1450, Gross Income Accrual, is transcribed from Schedule F, line 50. Each of these fields can contain up to 11 numeric digits as dollars only.

# Section 16, Schedule R

3.12.2.16 (01-01-2018) Section 16, Schedule R Schedule R, Credit for the Elderly or the Disabled, is used to compute the amount of credit for the elderly or disabled. Refer to ECs 086, 280, and 282. To qualify for the credit, the taxpayer must be age 65 years or older, or meet both of the following: Under the age of 65 and permanently and totally disabled. Receives a taxable disability income.

# Error Record Format, Section 16

3.12.2.16.1 (01-01-2023) Error Record Format, Section 16 For Section 16 consists of the following fields: Schedule R Field Name Field Location 16FSI Filing Status Age Indicator Code Part I Questions 1611 Taxable Disability Income Line 11 1613C Other Pensions and Annuities Line 13c 1620V Credit for the Elderly Verified ERS input only All fields in this section must be positive.

# Invalid Conditions

3.12.2.16.2 (01-01-2020) Invalid Conditions Section 16 fields will display as invalid if not all numeric. Additional invalid conditions are given for Field 16FSI.

# Correction Procedures

3.12.2.16.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 16 fields follow.

# Field 16FSI, Filing Status Age Indicator Code

3.12.2.16.3.1 (04-25-2022) Field 16FSI, Filing Status Age Indicator Code Field 16FSI is transcribed from Part I of Schedule R based on the box checked by the taxpayer. This field is transcribed as one digit. This field will be invalid if Section 16 is present and Field 16FSI is blank or other than 1 through 9. Use the Filing Status and/or Age Blind Indicator on the return to determine the correct FSI code. Use the following table to correct Field 16FSI: Example: If the taxpayer has checked the Age/Blind box for "65 or older" and is FSC 1, 4 or 5, enter a 1 in Field 16FSI. If And Then A] Any of the following: No FSI box is checked, Multiple FSI boxes are checked, FSI is inconsistent with filing status box checked, Enter FSI code based on determination. B] Proper Code cannot be determined, No tax liability, DLSEC 16. C] Proper Code cannot be determined, A tax liability exists, SSPND 211.

# Field 1611, Taxable Disability Income

3.12.2.16.3.2 (01-01-2018) Field 1611, Taxable Disability Income Field 1611 is transcribed from Part III line 11, Schedule R.

# Field 1613C, Other Pensions and Annuities

3.12.2.16.3.3 (01-01-2017) Field 1613C, Other Pensions and Annuities Field 1613C is transcribed from Part III line 13c, Schedule R.

# Field 1620V, Credit for the Elderly and Disabled Verified

3.12.2.16.3.4 (01-01-2017) Field 1620V, Credit for the Elderly and Disabled Verified Field 1620V is ERS input only. It is to be used whenever the computer cannot correctly compute the credit for the elderly or disabled on line 22, Schedule R. Refer to EC 282.

# Sections 17 and 18, Schedule SE

3.12.2.17 (01-01-2017) Sections 17 and 18, Schedule SE Schedule SE, Self-Employment Tax, is used to report social security and Medicare Tax on self-employment income for the primary and/or the secondary taxpayer. Refer to EC 209. Two Schedules SE may be processed with a return. Section 17 data is for the primary taxpayer. Section 18 data is for the secondary taxpayer. Note: For the remainder of this text, Schedule SE will be referred to as Section 17; however, all correction procedures will apply equally to Sections 17 and 18. Taxpayers may elect to compute SE Tax by using the regular method, the optional method, or both methods when they have more than one source of SE Income.

# Error Record Format, Sections 17 and 18

3.12.2.17.1 (01-01-2024) Error Record Format, Sections 17 and 18 Section 17 consists of the following fields: Schedule SE Field Name Field Location 17SSN SE SSN Header of Schedule SE 1701A Net Farm Profit/Loss Line 1a 1701B Conservation, Reserve Program Payments Line 1b 1702 Net Non Farm Profit/Loss Line 2 17TE Tentative Earnings Line 3 1704B Optional Method Income Amount ERS input only 17QC SE Quarters Covered Edited in right margin of line 4c 17CHW Tentative Church Wages Line 5a 17TSW Total Social Security Wages Covered Line 8d 17SIV Self-Employed Social Security Income Computer Verified ERS input only 17MCD SE Method Code Edited on bottom center margin 17SEV SE Tax Verified ERS input only Fields 1701A and 1702 may be either positive or negative. All other fields must be positive. Exception: Field 1701B is programmed as a negative field.

# Invalid Conditions

3.12.2.17.2 (01-01-2020) Invalid Conditions Section 17 fields will display as invalid if not all numeric. Additional invalid conditions are given for Fields 17SSN, 17MCD and 17QC.

# Correction Procedures

3.12.2.17.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Compute and enter accordingly when a transcribed line is blank and there are entries leading to an amount. Taxpayers may elect to compute SE Tax using both methods (regular and optional) if they have more than one source of SE Income. This will be indicated by an entry on both lines 3 and 4b of the long Schedule SE. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Additional correction procedures for Section 17/18 fields follow.

# Field 17SSN, Social Security Number (SSN)

3.12.2.17.3.1 (01-01-2020) Field 17SSN, Social Security Number (SSN) Field 17SSN is transcribed from the header of Schedule SE as follows: The SSN in Field 17SSN must be for the primary taxpayer. The SSN in Field 18SSN must be for the secondary taxpayer. This field will display as invalid if it contains fewer than nine digits or any non-numeric character(s). When Section(s) 17/18 is present, Field 17/18SSN cannot be all blanks. A valid S-SSN is required in Field 01SS if Section 18 is present.

# Field 1701A, Net Farm Profit/Loss

3.12.2.17.3.2 (01-01-2020) Field 1701A, Net Farm Profit/Loss Field 1701A is transcribed from Schedule SE line 1a and is the amount of farm income (Schedule F) and/or farm partnership income. When Field 1701A is blank, enter the total amount from line 34, Schedule F.

# Field 1701B, Conservation Reserve Program Payments Exclusions

3.12.2.17.3.3 (01-01-2020) Field 1701B, Conservation Reserve Program Payments Exclusions Field 1701B is transcribed from line 1b and is the amount of Conservation Reserve Program Payments claimed on line 4b, Schedule F. When Field 1701B is blank, enter the amount from line 4b, Schedule F.

# Field 1702, Net Non Farm Profit/Loss

3.12.2.17.3.4 (01-01-2024) Field 1702, Net Non Farm Profit/Loss Field 1702 is transcribed from Schedule SE, line 2, and is the amount of line 31, Schedule C income and/or other Non-Farm Self-Employment Income. When Field 1702 is blank, enter the amount from line 31, Schedule C.

# Field 17TE, Tentative Earnings

3.12.2.17.3.5 (01-01-2020) Field 17TE, Tentative Earnings Field 17TE is transcribed from Schedule SE, line 3, and represents the taxpayer's total of lines 1a, 1b, and 2 (1a - 1b + 2 = 3). Code and Edit edits line 3 when it is blank and amounts are present leading to it, or when an entry is present on line 4a or 4b and the lines leading to line 3 are all blank or negative.

# Field 1704B, Optional Method Income Amount

3.12.2.17.3.6 (01-01-2017) Field 1704B, Optional Method Income Amount Field 1704B is for ERS input only. It is used when the taxpayer is using one or both of the optional methods.

# Field 17QC, Self-Employment Quarters Covered

3.12.2.17.3.7 (01-01-2024) Field 17QC, Self-Employment Quarters Covered This code will be used on short year returns only. This code is edited by Code and Edit in the right margin of line 4c. Field 17QC will display as invalid if transcribed as other than 1, 2, or 3. Code 0 (zero) is also valid, but is computer-generated and cannot be transcribed. Compare the field on the screen to the entry on the return. Correct any editing or transcription error(s). Determine the number of quarters covered by the tax period when code is invalid and code as follows: If number of Then A] Quarters is 1 Enter 1 in Field 17QC. B] Quarters are 2 Enter 2 in Field 17QC. C] Quarters are 3 Enter 3 in Field 17QC. D] Quarters are more than 3 or cannot be determined, Blank the code to generate Code 0 (zero). Note: A fraction of a quarter counts as a full quarter. The quarters begin in January, April, July and October.

# Field 17CHW, Tentative Church Wages

3.12.2.17.3.8 (01-01-2024) Field 17CHW, Tentative Church Wages Field 17CHW is transcribed from line 5a.

# Field 17TSW, Total Social Security Wages Covered

3.12.2.17.3.9 (01-01-2024) Field 17TSW, Total Social Security Wages Covered Field 17TSW is transcribed from line 8d, and is the sum of lines 8a, 8b, and 8c.

# Field 17SIV, Self Employed Social Security Income Computer Verified

3.12.2.17.3.10 (03-18-2025) Field 17SIV, Self Employed Social Security Income Computer Verified Field 17SIV is for ERS input only. This field is eleven spaces long, and only numeric values are valid. For statute prior year returns, use this field when the computer's computation of SE income is not correct based on the social security maximum for the tax year. Enter the smaller of line 6 or 9 in Part I of Section B (page 2) of Schedule SE.

# Field 17SEV, Self-Employment Tax Verified

3.12.2.17.3.11 (01-01-2017) Field 17SEV, Self-Employment Tax Verified Field 17SEV is for ERS input only. It is used when the computer's computation is not correct for SE Tax.

# Field 17MCD, SE Method Code

3.12.2.17.3.12 (01-01-2026) Field 17MCD, SE Method Code Field 17MCD will display as invalid if transcribed as other than 1 or 2. Code 0 (zero) is also valid, but is computer generated and cannot be transcribed. Compare the field on the screen with the entry on the return. Correct any editing or transcription error(s). Enter 1 in Field 17MCD if income is from a business. Enter 2 in Field 17MCD if income is from a farm. If income is from a business and a farm, see the following instructions. Code Field 17MCD using the following table when invalid: If And Then A] Line 17 contains an entry, Line 17 is larger than line 15, Line 4b matches the total of lines 15 and 17, Line 15 is blank or zero, Enter 1 in Field 17MCD. B] Line 15 or 17 contains an entry, Not all of the preceding conditions for Code 1 are met, Enter 2 in Field 17MCD. C] You cannot determine the code, Blank Field 17MCD to generate Code 0 (zero).

# Section 19, Form 1116

3.12.2.18 (01-01-2019) Section 19, Form 1116 Form 1116, Foreign Tax Credit, is used to claim credit for income tax paid to a foreign country or U.S. possession. Refer to EC 277.

# Error Record Format, Section 19

3.12.2.18.1 (01-01-2024) Error Record Format, Section 19 Section 19 consists of the following fields from Form 1116: Form 1116 Field Name Field Location 19AF Additional Forms 1116 Attached Right Margin of Part I 1901A Gross Income from Foreign Source Line 1a 1906 Applicable Deduction and Losses Line 6 1907 Taxable Income from Foreign Source Line 7 1908 Total Foreign Taxes Paid Line 8 1914 Total Foreign Taxes Available for Credit Line 14 1916 Form 1116 Adjustments Line 16 1917 Net Taxable Income from Foreign Source Line 17 1921 Maximum Allowable Credit Line 21 1922 Excess Limitation Account Section 960C Line 22 1923 Total Limitation Line 23 1924 Gross Foreign Tax Credit Line 24 1934 International Boycott Operations Credit Reduction Line 34 1935 Form 1116 Foreign Tax Credit Line 35 All fields in this section must be positive, except Field 1916 can be either positive or negative.

# Invalid Conditions

3.12.2.18.2 (01-01-2017) Invalid Conditions Section 19 fields will display as invalid if not all numeric. Additional invalid conditions are given for Field 19AF.

# Correction Procedures

3.12.2.18.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. When more than one Form 1116 is attached, use the Form 1116 that has entries in Part IV. Additional correction procedures for Section 19 fields follow.

# Field 19AF, Additional Forms 1116 Attached

3.12.2.18.3.1 (01-01-2017) Field 19AF, Additional Forms 1116 Attached Code and Edit will code this field in the margin to the right of "Part I" . This field will display as invalid if present and not numeric. Correct Field 19AF based on the number of Forms 1116 attached to the return as follows: If Then A] Only one Form 1116 is attached and incorrect number is transcribed, Enter 0 (zero) in Field 19AF. B] Two through nine Forms 1116 are attached, Enter the number of additional forms in Field 19AF. C] More than nine Forms 1116 are attached, Enter 9 in Field 19AF.

# Fields 1914, 1916, 1917, 1921, 1922, 1923, and 1924 (Part III)

3.12.2.18.3.2 (01-01-2024) Fields 1914, 1916, 1917, 1921, 1922, 1923, and 1924 (Part III) These fields are transcribed from Part III (Figuring the Credit) of Form 1116. Field 1914, Total Foreign Taxes Available for Credit, is transcribed from line 14, Form 1116. Field 1916, Form 1116 Adjustments, is transcribed from line 16, Form 1116. Field 1917, Net Taxable Income from Foreign Source, is transcribed from line 17, Form 1116. Field 1921, Maximum Allowable Credit, is transcribed from line 21, Form 1116 (TY19 - TY17, line 21). Field 1922, Excess Limitation Account Section 960C, is transcribed from line 22, Form 1116 (TY20 and later). Field 1923, Total Limitation, is transcribed from line 23, Form 1116 (TY20 and later). Field 1924, Gross Foreign Tax Credit, is transcribed from line 24, Form 1116 (TY19 - TY17, line 22).

# Fields 1934 and 1935 (Part IV)

3.12.2.18.3.3 (01-01-2024) Fields 1934 and 1935 (Part IV) These fields are transcribed from Part IV, Summary of Credits of Form 1116. Field 1934, International Boycott Operations Credit Reduction, is transcribed from line 34, Form 1116 (TY19 - TY18, line 32; TY17, line 29). Field 1935 Form 1116 Foreign Tax Credit, is transcribed from line 35, Form 1116 (TY19 - TY18, line 33; TY17, line 30).

# Section 20, Schedule J

3.12.2.19 (01-01-2025) Section 20, Schedule J Schedule J, Income Averaging for Individuals with Income from Farming or Fishing, is used to reduce their tax by income averaging their farming or fishing income over the previous three years. Refer to EC 265. If the taxpayer owes alternative minimum tax (AMT) for the current tax period, Schedule J will not reduce the total tax.

# Error Record Format, Section 20

3.12.2.19.1 (01-01-2026) Error Record Format, Section 20 Section 20 consists of the following fields: Schedule J Field Name Field Location 2002A Elected Farm Income Line 2a 2002B Excess Net Long-Term Gain Line 2b 2008 Tax on Averaged Third Prior-Year Income Line 8 2012 Tax on Averaged Second Prior-Year Income Line 12 2016 Tax on Averaged First Prior-Year Income Line 16 2019 Actual Schedule J Tax from Third Prior Year Line 19 2020 Actual Schedule J Tax from Second Prior Year Line 20 2021 Actual Schedule J Tax from First Prior Year Line 21 All fields in this section must be positive except Field 2002A which may be positive or negative.

# Invalid Conditions

3.12.2.19.2 (01-01-2020) Invalid Conditions Section 20 fields will display as invalid if not all numeric.

# Correction Procedures

3.12.2.19.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries on displayed fields. Refer to EC 265.

# Field 2002A through 2021

3.12.2.19.3.1 (01-01-2026) Field 2002A through 2021 These fields are transcribed from Schedule J: Field 2002A, Elected Farm Income, from line 2a Field 2002B, Excess Net Long-Term Gain, from line 2b Field 2008, Tax on Averaged Third Prior-Year Income, from line 8 Field 2012, Tax on Averaged Second Prior-Year Income, from line 12 Field 2016, Tax on Averaged Firs Prior-Year Income, from line 16 Field 2019, Actual Schedule J Tax from Third Prior Year, from line 19 Field 2020, Actual Schedule J Tax from Second Prior Year, from line 20 Field 2021, Actual Schedule J Tax from First Prior Year, from line 21 .

# Section 21, Form 2441

3.12.2.20 (01-01-2025) Section 21, Form 2441 Form 2441, Child and Dependent Care Expenses, is used for the computation of a tax credit for expenses incurred and paid for employment related to child care, disabled dependent care or disabled spouse care. Refer to EC 279 and 280. TY96 and later, taxpayers must provide the TIN for care providers (See IRM 3.12.2.20.3.4 for exceptions) and the TIN for the child or dependent being cared for (See EC 010 for exceptions).

# Error Record Format, Section 21

3.12.2.20.1 (01-01-2025) Error Record Format, Section 21 Section 21 consists of the following fields: Form 2441 Field Name Field Location 21MFS Qualifying Married Filing Separate Indicator, Form 2441 Checkbox A 21DI Form 2441 Student or Disabled Indicator Checkbox B 21CPN Child Care Provider Name Control 1 Line 1a 21CPT Child Care Provider TIN Line 1c 21HEI Child Care Provider Household Employee Code Line 1d 21QI Qualifying Individual Number Transcribed based on the number of TINs on line 2 21CN1 Dependent 1 Child Care Name Control Line 2a, row 1 21DS1 Dependent 1 Child Care SSN Line 2b, row 1 211DI Child Care Credit Dependent 1 Disabled Indicator Line 2c, row 1 21CP1 Dependent 1 Child Care Payment Amount Line 2d, row 1 21CN2 Dependent 2 Child Care Name Control Line 2a, row 2 21DS2 Dependent 2 Child Care SSN Line 2b, row 2 212DI Child Care Credit Dependent 2 Disabled Indicator Line 2c, row 2 21CP2 Dependent 2 Child Care Payment Amount Line 2d, row 2 2103 Qualifying Expenses Incurred Amount Line 3 2104 Primary Earned Income Line 4 2105 Secondary Earned Income Line 5 21PYE Prior-Year Expenses Line 9b 2112 Dependent Care Employer Benefits Amount Line 12 2116 Qualified Expenses Incurred Amount (Employer) Line 16 2125 Dependent Care Exclusion Line 25 2126 Dependent Care Taxable Benefits Line 26 21CCV Child Care Credit Verified ERS input only 21CSR Child Care SSN Requirement ERS input only All money fields in this section are positive only.

# Invalid Conditions

3.12.2.20.2 (01-01-2020) Invalid Conditions Section 21 money amount fields will display as invalid if not all numeric. Additional invalid conditions are given for Field 21QI.

# Correction Procedures

3.12.2.20.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries on displayed fields. Additional correction procedures for Section 21 fields follow.

# Field 21MFS, Qualifying Married Filing Separate Indicator

3.12.2.20.3.1 (01-04-2021) Field 21MFS, Qualifying Married Filing Separate Indicator Field 21MFS is transcribed from check box A on Form 2441. This field is a one-digit numeric field. Enter 1 if the box is checked. Enter 0 if the box is not checked.

# Field 21DI, Student or Disabled Indicator

3.12.2.20.3.2 (01-01-2024) Field 21DI, Student or Disabled Indicator Field 21DI is valid for TY22 and later only. It is transcribed from check box B, Form 2441. This field is a one-digit numeric field. Enter 1 if the box is checked. Enter 0 if the box is not checked.

# Field 21CPN, Child Care Provider Name Control

3.12.2.20.3.3 (01-01-2017) Field 21CPN, Child Care Provider Name Control Field 21CPN is transcribed from line 1(a), Form 2441. It consists of the first four letters of the provider's name.

# Field 21CPT, Child Care Provider TIN

3.12.2.20.3.4 (01-01-2025) Field 21CPT, Child Care Provider TIN Field 21CPT is transcribed from line 1(c), Form 2441. A care provider TIN is not required when any of the following apply: The provider is a tax-exempt organization. The provider is a foreign citizen (LAFCP, Living Abroad Foreign Care Provider). Due diligence applies (see the following (3)). Note: If Field 21CPT is blank because there is a notation that the provider is a tax-exempt organization, a foreign citizen (LAFCP), or due diligence applies, GTSEC 01, enter D in Field 01SPC and transmit. The provider's TIN is not required when the taxpayer has exercised "due diligence" to comply with the requirement for a TIN. Due diligence applies only to notations that indicate either of the following: The provider has moved and the taxpayer is unable to find the provider to get the TIN. The provider has refused to give the TIN to the taxpayer. The following notations are not acceptable due diligence statements: "Unable" to get the TIN TIN is "not available" "Unknown" "Pending" "Applied for" Use the following table to correct Field 21CPT: If Then A] A care provider TIN is not present because the provider is tax-exempt, a foreign citizen (LAFCP), or due diligence applies, GTSEC 01, enter D in Field 01SPC and transmit. Blank Field 21CPT. B] More than one provider is listed; however, only one provider's TIN is listed, Allow the child and dependent care credit. C] Field 21CPT has periods (....) because provider's TIN has more or fewer than 9 digits, or Field 21CPT is blank and conditions in A] do not apply, GTSEC 21. Delete the entry in Field 21CPT, if present. Delete the entry in Field 2103. Assign TPNC 234 when EC 280 displays.

# Field 21HEI, Child Care Provider Household Employee Code

3.12.2.20.3.5 (01-01-2023) Field 21HEI, Child Care Provider Household Employee Code Field 21HEI is transcribed from line 1d, Form 2441. This field will display as invalid if other than numeric. Correct Field 21HEI as follows: If Then enter A] Neither box is checked, Code 0. B] The "Yes" box is checked, Code 1. C] The "No" box is checked, Code 2. D] Both "Yes" and "No" boxes are checked, Code 3.

# Field 21QI, Qualifying Individual Number

3.12.2.20.3.6 (01-01-2023) Field 21QI, Qualifying Individual Number Field 21QI is transcribed based on the number of SSNs present on line 2, Form 2441. This field will display as invalid if other than blank or numeric. Determine the correct code, based on the number of qualifying child care dependents SSNs present, as follows: If the number of Qualifying Child Dependent SSNs are Then A] 1 through 9, Enter the appropriate number (e.g., Code 3 if 3 SSNs are present). B] 9 or more, Enter 9. C] None, Blank Field 21QI.

# Fields 21CN1 and 21CN2, Dependent Child Care Name Control 1 and 2

3.12.2.20.3.7 (01-01-2024) Fields 21CN1 and 21CN2, Dependent Child Care Name Control 1 and 2 Field 21CN1 and Field 21CN2 are transcribed from line 2(a), Form 2441, and consist of the first four letters of the qualifying person's last name. Use the following priority to correct Field(s) 21CN1/21CN2 when the child care dependent's last name is not present and has not been edited by Code and Edit: TY18 and later, from dependents section on page 1, Form 1040 (TY17 and prior, from line 6c of Form 1040) Schedule EIC Attachments The primary taxpayer's name control

# Fields 21DS1 and 21DS2, Dependent Child Care SSN 1 and 2

3.12.2.20.3.8 (01-01-2020) Fields 21DS1 and 21DS2, Dependent Child Care SSN 1 and 2 Fields 21DS1 and 21DS2 are transcribed from line 2(b), Form 2441. Use the following priority to correct Field 21DS1/21DS2 when the child care credit dependent's SSN is missing, incomplete or illegible and has not been edited by Code and Edit: TY18 and later, from dependents section on page 1, Form 1040 (TY17 and prior, from line 6c of Form 1040) Schedule EIC Attachments

# Fields 211DI and 212DI, Child Care Credit Dependent 1 and 2 Disabled Indicator

3.12.2.20.3.9 (01-01-2024) Fields 211DI and 212DI, Child Care Credit Dependent 1 and 2 Disabled Indicator Fields 211DI and 212DI are valid for TY22 and later only. This field is transcribed from line 2(c), Form 2441. This field is a one-digit numeric field. Enter 1 if the box is checked. Enter 0 if the box is not checked.

# Fields 21CP1 and 21CP2, Dependent Child Care Payment Amount 1 and 2

3.12.2.20.3.10 (01-03-2023) Fields 21CP1 and 21CP2, Dependent Child Care Payment Amount 1 and 2 Fields 21CP1 and 21CP2 are transcribed from line 2(d), Form 2441 [TY21 and prior, line 2(c)]. This column represents the amount of qualified expenses paid for each child care credit dependent.

# Field 2103, Qualifying Expenses Incurred Amount

3.12.2.20.3.11 (01-01-2024) Field 2103, Qualifying Expenses Incurred Amount Field 2103 is transcribed from line 3, Form 2441. Correct Field 2103 as follows: If Then A] Line 3 is blank, Compute by adding line 2, column (d) amount(s), up to $3,000 for one dependent, and $6,000 for two or more (TY21, $8,000 for one dependent, $16,000 for two or more). Enter in Field 2103. B] Line 3 has an amount greater than sum of line 2(c) columns, Compute by adding line 2, column (d) amount(s), up to $3,000 for one dependent, and $6,000 for two or more (TY21, $8,000 for one dependent, $16,000 for two or more). Enter in Field 2103, if different. C] The expenses claimed cannot be determined, SSPND 211 to correspond (see note). Note: If the taxpayer is claiming a credit on Schedule 3, line 2 (TY18, line 49; TY17, Form 1040, line 49), and they completed the employer-provided dependent care benefits portion of the schedule, they are entitled to the credit if expenses from line 16 are greater than employer-provided benefits from line 15. In this case, the taxpayer completed Part III to compute their allowable expenses and then entered the amount on line 1e, Form 1040 (TY21 - TY18, line 1, Form 1040; TY17, line 7, Form 1040, with a notation of "DCB" on dotted portion of line), and then completed the rest of the form. If applicable, use the "DCB" part of the form to back into the expenses and excluded benefits amounts before corresponding.

# Fields 2104 and 2105, Primary and Secondary Earned Income

3.12.2.20.3.12 (01-01-2026) Fields 2104 and 2105, Primary and Secondary Earned Income Fields 2104 and 2105 are transcribed from lines 4 and 5 of Form 2441. Determine and input the earned income amounts when lines 4 and/or 5 are blank, zero or dash from the following: Total wages, Form(s) W-2 Line 3 from Schedule SE (minus the deductible part of self-employed tax in adjustments to income on Schedule 1, line 15) Lines 18 (primary) and 19 (secondary), Form 2441 Amount in Field 04OTI identified as earned income Schedule C Schedule E (Part II) Schedule F Note: Do not enter the amount from line 4 in Field 2105, when FSC is 1, 3, 4, 5, 6 or 7, unless the taxpayer has an amount on line 5 of Form 2441. If Form 2441, lines 4 and/or 5, are blank and there is an indication that the spouse is a student, disabled, or looking for work and had no earned income, and the number of months is not indicated, SSPND 211. Complete Form 6001 using paragraph g and fill-in #8. Exception: Do not correspond if there is no tax liability.

# Field 21PYE, Prior-Year Expense

3.12.2.20.3.13 (01-01-2017) Field 21PYE, Prior-Year Expense Field 21PYE is transcribed from line 9b, Form 2441 (TY20 and prior, to the left of line 9, Form 2441, notated as "CPYE or PYE" ).

# Field 2112, Dependent Care Employer Benefit Amount

3.12.2.20.3.14 (01-01-2017) Field 2112, Dependent Care Employer Benefit Amount Field 2112 is transcribed from line 12, Form 2441. Determine and input the amount for Field 2112 from Form W-2, when there is an amount on line 13 and no entry on line 12, but the taxpayer attempted to complete this portion of the form.

# Field 2116, Qualified Expenses Incurred Amount (Employer)

3.12.2.20.3.15 (01-01-2017) Field 2116, Qualified Expenses Incurred Amount (Employer) Field 2116 is transcribed from line 16, Form 2441.

# Field 2125, Dependent Care Exclusion

3.12.2.20.3.16 (01-01-2017) Field 2125, Dependent Care Exclusion Field 2125 is transcribed from line 25, Form 2441.

# Field 2126, Dependent Care Taxable Benefits

3.12.2.20.3.17 (01-01-2023) Field 2126, Dependent Care Taxable Benefits Field 2126 is transcribed from line 26, Form 2441 Refer to EC 201.

# Field 21CCV, Child Care Credit Verified

3.12.2.20.3.18 (01-01-2017) Field 21CCV, Child Care Credit Verified Field 21CCV is for ERS input only. It is to be used when the computer cannot correctly compute Child and Dependent Care Credit.

# Field 21CSR, Child Care SSN Requirement

3.12.2.20.3.19 (01-01-2017) Field 21CSR, Child Care SSN Requirement This is a one-position field and is ERS input only. Child Care SSN Requirement Field will be invalid if other than 0 (zero), 1, 2, or 3. Take the following steps when it's indicated that the child was born in the tax period of the tax return and died in the same or consecutive tax period. A copy of the birth certificate, death certificate, or hospital record must support the assertion. Enter I in Field 01RPC. Enter 1, if SSN is not required for Field 21DS1. Enter 2, if SSN is not required for Field 21DS2. Enter 3, if both SSNs are not required. Enter 1, 2, or 3 in the Child Care SSN Requirement field if the TINs are missing because Amish, Mennonite, or Form 4029 is noted.

# Section 22, Form 3800

3.12.2.21 (01-01-2024) Section 22, Form 3800 Form 3800, General Business Credit, is used to compute the total General Business Credit when the taxpayer has any Business Credit to be claimed. Form 3800 is divided into two sections, Section 22 and Section 23. Refer to EC 303. Taxpayers are instructed to attach Form 3800 if there is an amount on Schedule 3, line 6a (The taxpayer will mark box "a" on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54).

# Error Record Format, Section 22

3.12.2.21.1 (01-01-2026) Error Record Format, Section 22 Section 22 consists of the following fields: Form 3800 Field Name Field Location 2201 Non Passive Activity Credit Part I, line 1 2202 Passive Activity Credit Included Part I, line 2 2203 Part I Passive Activity Credit Allowed Amount Part I, line 3 2204 Form 3800 Carryforward Credit Part I, line 4 2205 Form 3800 Carryback Credit Amount Part I, line 5 2224 Part 2 Passive Activity Credit Allowed Amount Part II, line 24 2225 Empowerment Zone Credit Included Part II, line 25 2226 Empowerment Zone Credit Allowed Part II, line 26 2236 Net Allowable General Business Credit Part II, line 36 221AG Statutory Investment Credit Part III, line 1a, column g (TY23, column j) 221BB Form 7207 Elective Payment or Transfer Registration Number Part III, line 1b, column b 221BF Form 7207 Credit Transfer Election Amount Part III, line 1b, column f (TY23, column g) 221BG Form 7207 Credit Amount Part III, line 1b, column g (TY23, column j) 221BH Form 7207 Gross Elective Payment Election Amount Part III, line 1b, column h 221BJ Form 7207 Net Elective Payment Election Amount Part III, line 1b, column j (TY23, column i) 221CG Increasing Research Activities Credit Part III, line 1c, column g (TY23, column j) 221DB Form 3468 Part III Elective Payment or Transfer Registration Number Part III, line 1d, column b 221DF Form 3468 Part III Credit Transfer Election Amount Part III, line 1d, column f (TY23, column g) 221DG Form 3468 Part III Credit Part III, line 1d, column g (TY23, column j) 221EG Disabled Access Credit Part III, line 1e, column g (TY23, column j) 221FB Form 8835 Elective Payment or Transfer Registration Number Part III, line 1f, column b 221FF Form 8835 Credit Transfer Election Amount Part III, line 1f, column f (TY23, column g) 221FG Form 8835 Credit Part III, line 1f, column g (TY23, column j) 221GB Form 7210 Elective Payment or Transfer Registration Number Part III, line 1g, column b 221GF Form 7210 Credit Transfer Election Amount Part III, line 1g, column f (TY23, column g) 221GG Form 7210 Credit Amount Part III, line 1g, column g (TY23, column j) 221GH Form 7210 Gross Elective Payment Election Amount Part III, line 1g, column h 221GJ Form 7210 Net Elective Payment Election Amount Part III, line 1g, column j (TY23, column i) 221HG Orphan Drug Credit Part III, line 1h, column g (TY23, column j) 221IG New Markets Credit Part III, line 1i, column g (TY23, column j) 221JG Small Employer Pension Plan Startup Costs and Auto-enrollment Credit Part III, line 1j, column g (TY23, column j) 221KG Employer-Provided Child Care Facilities Credit Part III, line 1k, column g (TY23, column j) 221LB Form 8864 Elective Payment or Transfer Registration Number Part III, line 1l, column b 221LF Form 8864 Credit Transfer Election Amount Part III, line 1l, column f 221LG Biodiesel Fuels Credit Part III, line 1l, column g (TY23 column j) 221MG Low Sulfur Diesel Fuel Credit Part III, line 1m, column g (TY23, column j) 221NG Distilled Spirits Credit Part III, line 1n, column g (TY23, column j) 221OB Form 3468 Part IV Elective Payment or Transfer Registration Number Part III, line 1o, column b 221OG Form 3468 Part IV Credit Part III, line 1o, column g (TY23, column j) 221OH Form 3468 Part IV Gross Elective Payment Election Amount Part III, line 1o, column h 221OJ Form 3468 Part IV Net Elective Payment Election Amount Part III, line 1o, column j (TY23, column i) 221PG Energy Efficient Home Credit Part III, line 1p, column g (TY23, column j) 221QB Form 7218 Elective Payment or Transfer Registration Number Part III, line 1q, column b 221QF Form 7218 Credit Transfer Election Amount Part III, line 1q, column f 221QG Form 7218 Credit Part III, line 1q, column g 221SB Form 8911 Elective Payment or Transfer Registration Number Part III, line 1s, column b 221SF Form 8911 Credit Transfer Election Amount Part III, line 1s, column f (TY23, column g) 221SG Form 8911 Credit Part III, line 1s, column g (TY23, column j) 221TG Enhanced Oil Recovery Credit Part III, line 1t, column g (TY23, column j) Section 22 fields are 11 characters in length. They must be a positive numeric amount and dollars only. Exception: Fields 221BB, 221DB, 221FB, 221GB, 221OB, 221QB, and 221SB are 12 characters in length.

# Invalid Conditions

3.12.2.21.2 (01-01-2017) Invalid Conditions Fields in Section 22 will display as invalid if not all numeric.

# Correction Procedures

3.12.2.21.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Follow correction procedures found for each field in Section 22.

# Field 2201, Non-Passive Activity Credit Amount

3.12.2.21.3.1 (01-01-2026) Field 2201, Non-Passive Activity Credit Amount Field 2201 is transcribed from line 1, Part I of Form 3800. To correct Field 2201: If an amount is present on Form 3800, Part I, line 1, enter this amount in Field 2201. If an amount is not present on line 1, enter the amount present on Part III, line 2 (column (e).

# Field 2202, Passive Activity Credit Included Amount

3.12.2.21.3.2 (01-01-2026) Field 2202, Passive Activity Credit Included Amount Field 2202 is transcribed from line 2, Part I of Form 3800. To correct Field 2202: If an amount is present on Form 3800, Part I, line 2, enter this amount in Field 2202. If an amount is not present on line 2, enter the total of the amounts present on Part III, line 2, column (d) and Part IV, line 6, column (d).

# Field 2203, Part I Passive Activity Credit Allowed Amount

3.12.2.21.3.3 (01-01-2018) Field 2203, Part I Passive Activity Credit Allowed Amount Field 2203 is transcribed from line 3, Part I of Form 3800. To correct Field 2203: If an amount is present on Form 3800, Part I, line 3, enter this amount in Field 2203. If an amount is not present on line 3, blank the field.

# Field 2204, Form 3800 Carryforward Credit Amount

3.12.2.21.3.4 (01-01-2026) Field 2204, Form 3800 Carryforward Credit Amount Field 2204 is transcribed from line 4, Part I of Form 3800. To correct Field 2204: If an amount is present on Form 3800, Part I, line 4, enter this amount in Field 2204. If an amount is not present on line 4, blank the field.

# Field 2205, Form 3800 Carryback Credit Amount

3.12.2.21.3.5 (01-01-2018) Field 2205, Form 3800 Carryback Credit Amount This field is transcribed from line 5, Part I of Form 3800. To correct Field 2205: If an amount is present on Form 3800, Part I, line 5, enter this amount in Field 2205. If an amount is not present on line 5, blank the field.

# Field 2224, Part 2 Passive Activity Credit Allowed Amount

3.12.2.21.3.6 (01-01-2018) Field 2224, Part 2 Passive Activity Credit Allowed Amount This field is transcribed from line 24, Part II of Form 3800. If an amount is present on line 24, enter this amount in Field 2224.

# Field 2225, Empowerment Zone Employment Credit Included

3.12.2.21.3.7 (01-01-2018) Field 2225, Empowerment Zone Employment Credit Included This field is transcribed from line 25, Part II of Form 3800. If an amount is present on line 25, enter this amount in Field 2225.

# Field 2226, Empowerment Zone Employment Credit Allowed

3.12.2.21.3.8 (01-01-2018) Field 2226, Empowerment Zone Employment Credit Allowed This field is transcribed from line 26, Part II of Form 3800. If an amount is present on line 26, enter this amount in Field 2226.

# Field 2236, Net Allowable General Business Credit Amount

3.12.2.21.3.9 (01-01-2018) Field 2236, Net Allowable General Business Credit Amount This field is transcribed from line 36, Part II of Form 3800. To correct Field 2236: If an amount is present on line 36, enter this amount in Field 2236. If an amount is not present on line 36, enter the combined amount from lines 30, 33, 34, and 35 of Form 3800 in Field 2236.

# Fields 221AG through 221TG

3.12.2.21.3.10 (01-01-2026) Fields 221AG through 221TG These fields are transcribed from lines 1a through 1t, Part III of Form 3800. Field 221AG, Statutory Investment Credit, from line 1a, column g (TY23, column j) Field 221BB, Form 7207 Elective Payment or Transfer Registration Number, from line 1b, column b Field 221BF, Form 7207 Credit Transfer Election Amount, from line 1b, column f (TY23, column g) Field 221BG, Form 7207 Credit, from line 1b, column g (TY23, column j) Field 221BH, Form 7207 Gross Elective Payment Election Amount, from line 1b, column h Field 221BJ, Form 7207 Net Elective Payment Election Amount, from line 1b, column j (TY23, column i) Field 221CG, Research Credit, from line 1c, column g (TY23, column j) Field 221DB, Form 3468 Part III Elective Payment or Transfer Registration Number, from line 1d, column b Field 221DF, Form 3468 Part III Credit Transfer Election Amount, from line 1d, column f Field 221DG, Form 3468 Part III Credit, from line 1d, column g (TY23, column j) Field 221EG, Disabled Access Credit, from line 1e, column g (TY23, column j) Field 221FB, Form 8835 Elective Payment or Transfer Registration Number, from line 1f, column b Field 221FF, Form 8835 Credit Transfer Election Amount, from line 1f, column f (TY23, column g) Field 221FG, Form 8835 Credit, from line 1f, column g (TY23, column j) Field 221GB, Form 7210 Elective Payment or Transfer Registration Number, from line 1g, column b Field 221GF, Form 7210 Credit Transfer Election Amount, from line 1g, column f (TY23, column g) Field 221GG, Form 7210 Credit, from line 1g, column g (TY23, column j) Field 221GH, Form 7210 Gross Elective Payment Election Amount, from line 1g, column h Field 221GJ, Form 7210 Net Elective Payment Election Amount, from line 1g, column j (TY23, column i) Field 221HG, Orphan Drug Credit Amount, from line 1h, column g (TY23, column j) Field 221IG, New Markets Credit Amount, from line 1i, column g (TY23, column j) Field 221JG, Small Employer Pension Plan Credit Amount, from line 1j, column g (TY23, column j) Field 221KG, Employer Provided Child Care Credit Amount, from line 1k, column g (TY23, column j) Field 221LB, Form 8864 Elective Payment or Transfer Registration Number Field 221LF, Form 8864 Credit Transfer Election Amount Field 221LG, Biodiesel Fuels Credit Amount, from line 1l, column g (TY23, column j) Field 221MG, Low Sulfur Diesel Fuel Credit Amount, from line 1m, column g (TY23, column j) Field 221NG, Distilled Spirits Credit Amount, from line 1n, column g (TY23, column j) Field 221OB, Form 3468 Part IV Elective Payment or Transfer Registration Number, from line 1o, column b Field 221OG, Form 3468 Part IV Credit, from line 1o, column g (TY23, column j) Field 221OH, Form 3468 Part IV Gross Elective Payment Election Amount, from line 1o, column h Field 221OJ, Form 3468 Part IV Net Elective Payment Election Amount, from line 1o, column j (TY23, column i) Field 221PG, Energy Efficient Home Credit Amount, from line 1p, column g (TY23, column j) Field 221QB, Form 7218 Elective Payment or Transfer Registration Number, from line 1q, column b Field 221QF, Form 7218 Credit Transfer Election Amount, from line 1q, column f Field 221QG, Form 7218 Credit Amount, from line 1q, column g Field 221SB, Form 8911 Elective Payment or Transfer Registration Number, from line 1s, column b Field 221SF, Form 8911 Credit Transfer Election Amount, from line 1s, column f (TY23, column j) Field 221SG, Form 8911 Credit Amount, from line 1s, column g (TY23, column j) Field 221TG, Enhanced Oil Recovery Credit, from line 1t, column g (TY23, column j) If an amount is present in a transcribed field/column of Form 3800, Part III, enter the amount in the appropriate field.

# Section 23, Form 3800 Part III

3.12.2.22 (01-01-2025) Section 23, Form 3800 Part III Form 3800, General Business Credit, continues in Section 23. Refer to EC 303. Taxpayers are instructed to attach Form 3800 if there is an amount on Schedule 3, line 6a (TY20 - TY19, the taxpayer will mark box "a" on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54).

# Error Record Format, Section 23

3.12.2.22.1 (01-01-2025) Error Record Format, Section 23 Section 23 consists of the following fields: Form 3800 Part III Field Name Field Location 231UB Form 7213 Part II Elective Payment or Transfer Registration Number Part III, line 1u, column b 231UF Form 7213 Part II Credit Transfer Election Amount Part III, line 1u, column f (TY23, column g) 231UG Form 7213 Part II Credit Part III, line 1u, column g (TY23, column j) 231VB Form 3468 Part V Elective Payment or Transfer Registration Number Part III, line 1v, column b 231VF Form 3468 Part V Credit Transfer Election Amount Part III, line 1v, column f 231VG Form 3468 Part V Credit Part III, line 1v, column g 231WG Employer Differential Wage Payments Credit Amount Part III, line 1w, column g (TY23, column j) 231XB Form 8933 Elective Payment or Transfer Registration Number Part III, line 1x, column b 231XF Form 8933 Credit Transfer Election Amount Part III, line 1x, column f (TY23, column g) 231XG Form 8933 Credit Part III, line 1x, column g (TY23, column j) 231XH Form 8933 Gross Elective Payment Election Part III, line 1x, column h 231XJ Form 8933 Net Elective Payment Election Amount Part III, line 1x, column j (TY23, column i) 231YG Form 8936 Part II Credit Part III, line 1y, column g (TY23, column j) 231AA Form 8936 Part V Credit Part III, line 1aa, column g (TY23, column j) 231BB Form 8904 Credit Part III, line 1bb, column g (TY23, column j) 231CC Form 7213 Part I Credit Part III, line 1cc, column g (TY23, column j) 231DD Form 8881 Part II Credit Part III, line 1dd, column g (TY23, column j) 231EE Form 8881 Part III Credit Part III, line 1ee, column g (TY23, column j) 231FF Form 8864 Credit Part III, line 1ff, column g (TY23, column j) 23GGB Form 7211 Elective Payment or Transfer Registration Number Part III, line 1gg, column b 23GGF Form 7211 Credit Transfer Election Amount Part III, line 1gg, column f 23GGG Form 7211 Credit Part III, line 1gg, column g 231ZZ Other Credits Amount Part III, line 1zz, column g (TY23, column j) 23CHS Certified Historic Structures Credit Coded in lower right margin, page 3 23DPI Form 3800 Part V Column B Data Present Indicator Coded in the center bottom margin, page 3 2303G Form 8844 Credit Part III, line 3, column g (TY23, column j) 234AB Form 3468 Part VI Elective Payment or Transfer Registration Number Part III, line 4a, column b 234AF Form 3468 Part VI Credit Transfer Election Amount Part III, line 4a, column f (TY23, column g) 234AG Form 3468 Part VI Credit Part III, line 4a, column g (TY23, column j) 234EB Form 8835 Section 6417 Elective Payment or Transfer Registration Number Part III, line 4e, column b 234EF Form 8835 Section 6417 Credit Transfer Election Amount Part III, line 4e, column f (TY23, column g) 234EG Form 8835 Section 6417 Credit Part III, line 4e, column g (TY23, column j) 234HG Small Employer Health Insurance Premiums Credit Part III, line 4h, column g (TY23, column j) 234JG Employer Credit for Paid Family and Medical Leave Amount Part III, line 4j, column g (TY23, column j) 234KG Form 3468 Part VII Credit Part III, line 4k, column g (TY23, column j) 23TOT Total Additional Business Credit Amount Part III, line 5, column g 23EPC Elective Payment Election Resolution Code ERS input only 23BCV General Business Credits Verified ERS input only Fields in Section 23 must be positive entries, and are 11 characters in length. Exception: Fields 23DPI and 23EPC are 1 character in length. Fields 231UB, 231VB, 231XB, 23GGB, 234AB, and 234EB are 12 characters in length.

# Invalid Conditions

3.12.2.22.2 (01-01-2020) Invalid Conditions Section 23 fields will display as invalid if other than numeric.

# Correction Procedures

3.12.2.22.3 (01-01-2024) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Follow correction procedures found for each field in Section 23.

# Fields 231UB Through 231ZZ

3.12.2.22.3.1 (01-01-2026) Fields 231UB Through 231ZZ These fields are transcribed from lines 1u through 1zz of Form 3800, Part III. Field 231UB, Form 7213 Part II Elective Payment or Transfer Registration Number, from line 1u, column b Field 231UF, Form 7213 Part II Credit Transfer Election Amount, from line 1u, column f (TY23, column g) Field 231UG, Form 7213 Part II Credit, from line 1u, column g (TY23, column j) Field 231VB, Form 3468 Part V Elective Payment or Transfer Registration Number, from line 1v, column b Field 231VF, Form 3468 Part V Credit Transfer election Amount, from line 1v, column f Field 231VG, Form 3468 Part V Credit, from line 1v, column g Field 231WG, Employer Differential Wage Payments Credit Amount, from line 1w, column g (TY23, column j) Field 231XB, Form 8933 Elective Payment or Transfer Registration Number, from line 1x, column b Field 231XF, Form 8933 Credit Transfer Election Amount, from line 1x, column f (TY23, column g) Field 231XG, Form 8933 Credit, from line 1x, column g (TY23, column j) Field 231XH, Form 8933 Gross Elective Payment Election, from line 1x, column h Field 231XJ, Form 8933 Net Elective Payment Election Amount, from line 1x, column j (TY23, column i) Field 231YG, Form 8936 Part II Credit, from line 1y, column g (TY23, column j) Field 231AA, Form 8936 Part V Credit, from line 1aa, column g (TY23, column j) Field 231BB, Form 8904 Credit, from line 1bb, column g (TY23, column j) Field 231CC, Form 7213 Part I Credit, from line 1cc, column g (TY23, column j) Field 231DD, Form 8881 Part II Credit, from line 1dd, column g (TY23, column j) Field 231EE, Form 8881 Part III Credit, from line 1ee, column g (TY23, column j) Field 231FF, Form 8864 Credit, from line 1ff, column g (TY23, column j) Field 23GGB, Form 7211 Elective Payment or Transfer Registration Number, from line 1gg, column b Field 23GGF, Form 7211 Credit Transfer Election Amount, from line 1gg, column f Field 23GGG, Form 7211 Credit, from line 1gg, column g Field 231ZZ, Other Credits Amount, from line 1zz, column g (TY23, column j) If an amount is present in a transcribed field/column of Form 3800, Part III, enter the amount in the appropriate field.

# Field 23CHS, Certified Historic Structures Credit

3.12.2.22.3.2 (01-01-2026) Field 23CHS, Certified Historic Structures Credit TY24 and prior, Code and Edit has instructions to edit an amount in the lower right margin of page 3, Form 3800, from Form 3468, Part VII, line 1i, (TY22 - TY16, Form 3468, Part III, line 11f) when an amount is present on Form 3800, Part III, line 4k, column g (TY22 - TY16, Form 3800, Part III, line 1a). If not edited, enter the amount from Form 3468, Part VII, line 1i (TY22 - TY16, Form 3468, Part III, line 11f) in Field 23CHS.

# Field 23DPI, Form 3800 Part V Column B Data Present Indicator

3.12.2.22.3.3 (01-01-2026) Field 23DPI, Form 3800 Part V Column B Data Present Indicator Code and Edit has instructions to edit a data indicator 1 in the center bottom margin of page 3, Form 3800, when an entry is present on Form 3800, Part V, column b. Field 23DPI is 1 character in length, and is used to identify if data is present in Part V, column b of Form 3800. Review Form 3800, Part V, to determine if data is present in column b, Elective payment or transfer registration number. Correct Field 23DPI screen display: Enter 0 if data is not present. Enter 1 if data is present.

# Fields 2303G Through 234KG

3.12.2.22.3.4 (01-01-2026) Fields 2303G Through 234KG These fields are transcribed from lines 3 through 4k of Form 3800, Part III. Field 2303G, Form 8844 Credit, from line 3, column g (TY23, column j) Field 234AB, Form 3468 Part IV Elective Payment or Transfer Registration Number, from line 4a, column b Field 234AF, Form 3468 Part VI Credit Transfer Election Amount, from line 4a, column f (TY23, column g) Field 234AG, Form 3468 Part IV Credit, from line 4a, column g (TY23, column j) Field 234EB, Form 8835 Section 6417 Elective Payment or Transfer Registration Number, from line 4e, column b Field 234EF, Form 8835 Section 6417 Credit Transfer Election Amount, from line 4e, column f (TY23, column g) Field 234EG, Form 8835 Section 6417 Credit, from line 4e, column g (TY23, column j) Field 234HG, Small Employer Health Insurance Premiums Credit, from line 4h, column g (TY23, column j) Field 234JG, Employer Credit for Paid Family and Medical Leave Amount, from line 4j, column g (TY23, column j) Field 234KG, Form 3468 Part VII Credit, from line 4k, column g (TY23, column j) If an amount is present in a transcribed field/column of Form 3800, Part III, enter the amount in the appropriate field.

# Field 23TOT, Total Additional Business Credit Amount

3.12.2.22.3.5 (01-01-2026) Field 23TOT, Total Additional Business Credit Amount This field is transcribed from Form 3800, Part III, line 5, column g, (TY23, column j). If an amount is not present on Part III, line 5, column (g), enter the total of column (g) amounts on lines 4a through 4z in Field 23TOT.

# Field 23EPC, Elective Payment Election Resolution Code

3.12.2.22.3.6 (01-01-2026) Field 23EPC, Elective Payment Election Resolution Code Field 23EPC is a one-digit field and is ERS input only. Valid values are blank and A. Refer to EC 357.

# Field 23BCV, General Business Credits Verified

3.12.2.22.3.7 (01-01-2024) Field 23BCV, General Business Credits Verified Field 23BCV is ERS input only and is used when the computer cannot compute General Business Credits correctly. Refer to EC 303.

# Sections 24 and 25, Form 4137

3.12.2.23 (01-01-2017) Sections 24 and 25, Form 4137 Form 4137, Social Security and Medicare Tax on Unreported Tip Income, is used to figure the Social Security and Medicare Tax owed on tips that they did not report to their employer, including any allocated tips shown on the Form W-2. Refer to EC 314. Two Forms 4137 may be processed with a return. Section 24 data is for the primary taxpayer. Section 25 data is for the secondary taxpayer. Note: For the remainder of this text, Form 4137 will be referred to as Section 24; however, all correction procedures will apply equally to Sections 24 and 25.

# Error Record Format, Section 24 and 25

3.12.2.23.1 (01-01-2023) Error Record Format, Section 24 and 25 Section 24 consists of the following fields: Form 4137 Field Name Field Location 24SSN Form 4137 SSN Header of Form 4137 24ANM Employer A Name Line A, column 1a 24AEN Employer A EIN Line A, column 1b 24ARC Employer A Tips Received Line A, column 1c 24ARP Employer A Tips Reported Line A, column 1d 24BNM Employer B Name Line B, column 1a 24BEN Employer B EIN Line B, column 1b 24BRC Employer B Tips Received Line B, column 1c 24BRP Employer B Tips Reported Line B, column 1d 24CNM Employer C Name Line C, column 1a 24CEN Employer C EIN Line C, column 1b 24CRC Employer C Tips Received Line C, column 1c 24CRP Employer C Tips Reported Line C, column 1d 24DNM Employer D Name Line D, column 1a 24DEN Employer D EIN Line D, column 1b 24DRC Employer D Tips Received Line D, column 1c 24DRP Employer D Tips Reported Line D, column 1d 24ENM Employer E Name Line E, column 1a 24EEN Employer E EIN Line E, column 1b 24ERC Employer E Tips Received Line E, column 1c 24ERP Employer E Tips Reported Line E, column 1d 2402 Total Cash and Tips Received Line 2 2403 Total Cash and Tips Reported Line 3 2405 Incidental Cash and Tips Line 5 2406 Unreported Tips Subject to Medicare Tax Line 6 2408 SS Wages and Tips Line 8 24GOV Government Employee Tips ERS input only 2413V Form 4137 Tax Verified ERS input only All money amount fields must be positive.

# Invalid Conditions

3.12.2.23.2 (01-01-2017) Invalid Conditions Section 24 fields will display as invalid if not all numeric, except for Employer Name A-E in Fields 24ANM - 24ENM. Employer Name is invalid if other than alphanumeric characters. Additional invalid conditions are given for Field 24SSN.

# Correction Procedures

3.12.2.23.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries on displayed fields. Compute and enter accordingly when a transcribed line is blank and there are entries leading to an amount. Check for an indication that the taxpayer has not already paid the tax when there is zero social security and Medicare tax on tips, or there is no Form 4137 attached, and either of the following exist: Has no unreported tips. Allocated tips on Form W-2. For TY07 and later, taxpayers are required to file Form 8919 to figure the social security and Medicare tax on wages instead of crossing out the word "Tips" on Form 4137. If the taxpayer attempts to report wages on Form 4137, SSPND 211 for Form 8919. For TY06 and before, take the following actions when the taxpayer writes in the word "Wages" in lieu of the word "Tips" on the Form 4137, or indicates an occupation other than waiter or waitress indicating that the income was not derived from tips: Complete and detach the Schedule U. Make sure to change the word "Tips" to "Wages" (SSA is looking for this notation so it can correctly adjust these taxpayers' accounts). Send the Schedule U to SSA, via the Receipt and Control Media Transport Unit, or follow local campus procedures for routing to SSA. Note: Ensure Section 24/25 data is input.

# Field 24SSN, Form 4137 SSN

3.12.2.23.3.1 (01-01-2020) Field 24SSN, Form 4137 SSN On a joint return, the following applies: The SSN in Field 24SSN must be the primary taxpayer's. The SSN in Field 25SSN must be the secondary taxpayer's. If Section 24 or 25 is present, Field 24SSN or 25SSN can't be blank in whole or in part. A valid SSN is required in Field 01SS if Section 25 is present. This field will display as invalid if it contains fewer than nine digits or any non-numeric character. For TY09 and later, the information on lines 1A to 1E will be transcribed. The information on these lines identifies the employers and describes the tips the employee received.

# Fields 24ANM to 24ENM

3.12.2.23.3.2 (01-01-2017) Fields 24ANM to 24ENM The name of the employer is transcribed from column (a) of line 1A to 1E. Up to 18 characters may be transcribed.

# Fields 24AEN to 24EEN

3.12.2.23.3.3 (01-01-2017) Fields 24AEN to 24EEN The EIN of the employer is transcribed from column (b) of line 1A to 1E and is nine spaces long. Non-numerical characters and an entry shorter than nine digits are invalid. If the taxpayer's entry is not entirely numerical or not nine digits long, delete it.

# Fields 24ARC to 24ERC

3.12.2.23.3.4 (01-01-2017) Fields 24ARC to 24ERC The total cash and charge tips the employee received is transcribed from column (c) of line 1A to 1E.

# Fields 24ARP to 24ERP

3.12.2.23.3.5 (01-01-2017) Fields 24ARP to 24ERP The total cash and charge tips the employee reported to the employer is transcribed from column (d) of line 1A to 1E.

# Field 2402, Total Cash and Tips Received

3.12.2.23.3.6 (01-01-2017) Field 2402, Total Cash and Tips Received Field 2402 is transcribed from line 2 and is the total amount of cash and credit card charged tips received by the taxpayer. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 2403, Total Cash and Tips Reported

3.12.2.23.3.7 (01-01-2023) Field 2403, Total Cash and Tips Reported Field 2403 is transcribed from line 3 and is the total amount of cash and credit card charged tips that the taxpayer reported to their employer. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 2405, Incidental Cash and Tips

3.12.2.23.3.8 (01-01-2023) Field 2405, Incidental Cash and Tips Field 2405 is transcribed from line 5 and is the amount of cash and credit card charged tips that the taxpayer did not report to their employer because the total was less than $20 in a calendar month. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 2406, Unreported Tips Subject to Medicare Tax

3.12.2.23.3.9 (01-01-2017) Field 2406, Unreported Tips Subject to Medicare Tax The Unreported Tips Subject to Medicare tax are transcribed from line 6 in Field 2406.

# Field 2408, SS Wages and Tips

3.12.2.23.3.10 (01-01-2017) Field 2408, SS Wages and Tips Field 2408 is transcribed from line 8 and is the total social security wages and social security tips shown on Form(s) W-2 for the taxpayer.

# Field 24GOV, Government Employee Tips

3.12.2.23.3.11 (01-01-2017) Field 24GOV, Government Employee Tips Field 24GOV is an ERS input only field. It is entered from the dotted portion of line 10.

# Field 2413V, Form 4137 Tax Verified

3.12.2.23.3.12 (01-01-2017) Field 2413V, Form 4137 Tax Verified Field 2413V is an ERS input only field. It is used when the computer cannot accurately compute the correct amount.

# Section 26, Form 4684

3.12.2.24 (01-01-2017) Section 26, Form 4684 Form 4684, Casualties and Thefts, page 1, Section A, is for figuring casualty or theft gains and losses to property that is not used in a trade or business or for income-producing purposes. Page 2, Section B is for figuring casualty or thefts gains and losses to property that is used in a trade or business or for income-producing purposes. Refer to EC 242. The taxpayer will use a separate column on Form 4684 for each property lost or damaged from one casualty or theft. If more than one Form 4684 is present, the taxpayer is instructed to use only one Form 4684 for lines 13 through 18.

# Error Record Format, Section 26

3.12.2.24.1 (01-01-2023) Error Record Format, Section 26 Section 26 consists of the following fields: Form 4684 Field Name Field Location 26DDN Disaster Declaration Number Above line 1 26ZIP Most Impacted Property ZIP Code Line 1, Property A 2613 Total Personal Use Property Gains Line 13 2614 Total Personal Use Property Losses Line 14 2616 Gross Casualties and Theft Line 16 All fields in this section must be positive.

# Invalid Conditions

3.12.2.24.2 (01-01-2020) Invalid Conditions Fields in Section 26 will display as invalid if not all numeric, except Field 26DDN, which is alpha-numeric.

# Correction Procedures

3.12.2.24.3 (04-25-2022) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Verify Form 4684 is attached when an amount is present on line 15, Schedule A (TY17, line 20, Schedule A). If Form 4684 is attached, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If Form 4684 is not attached, SSPND 211 to correspond for Form 4684. Additional correction procedures for Section 26 fields follow.

# Field 26DDN, Disaster Declaration Number

3.12.2.24.3.1 (01-01-2026) Field 26DDN, Disaster Declaration Number The disaster declaration number above line 1, Form 4684, is transcribed in Field 26DDN. Delete the entry in Field 26DDN as an invalid entry if the taxpayer has entered a FEMA number that: does not contain two alpha characters and four numeric digits, begins with letters other than DR or EM, is made up of consecutive or repeating numbers (e.g., DR-1234, DR-6543, EM-5555), is greater than 5900 for FEMA numbers beginning with DR, or is greater than 4700 for FEMA numbers beginning with EM.

# Field 26ZIP, Most Impacted Property ZIP Code

3.12.2.24.3.2 (01-01-2019) Field 26ZIP, Most Impacted Property ZIP Code The most impacted property ZIP code is transcribed in Field 26ZIP.

# Field 2613, Total Personal Use Property Gains

3.12.2.24.3.3 (01-01-2019) Field 2613, Total Personal Use Property Gains The total personal use property gains is transcribed in Field 2613.

# Field 2614, Total Personal Use Property Losses

3.12.2.24.3.4 (01-01-2019) Field 2614, Total Personal Use Property Losses The total personal use property losses is transcribed in Field 2614.

# Field 2616, Gross Casualties and Thefts

3.12.2.24.3.5 (01-01-2023) Field 2616, Gross Casualties and Thefts Field 2616 is transcribed from line 16, Form 4684. If the transcribed field is blank and there are entries leading to an amount, compute and enter accordingly. Exception: Do not compute line 16 of Form 4684 when the disaster loss is attributable to a federally declared disaster that occurred in 2016 or to Hurricane Harvey, Tropical Storm Harvey, Hurricane Irma, Hurricane Maria or the 2017 California wildfires. Ensure D is present in Field 01FPC.

# Section 27, Form 4797

3.12.2.25 (01-01-2017) Section 27, Form 4797 Form 4797, Sales of Business Property, is used to report gains and losses from sales or exchanges of assets used in a trade or business and involuntary conversions and/or ordinary gains and losses. Refer to ECs 204 and 218.

# Error Record Format, Section 27

3.12.2.25.1 (01-01-2023) Error Record Format, Section 27 Section 27 consists of the following fields: Form 4797 Field Name Field Location 2701A Gross Sales or Exchanges Amount Line 1a 2701B Total Gain Due to Partial Disposition of MACRS Assets Line 1b 2701C Total Loss Due to Partial Disposition of MACRS Assets Line 1c 2707 Section 1231 Gain/Loss Line 7 2708 Non-recaptured Net Section 1231 Loss Line 8 2709 Total Sales of Business Property Line 9 27LD Livestock Depreciation Bottom center of page 1 All fields in this section must be positive except Field 2707 which can be positive or negative.

# Invalid Conditions

3.12.2.25.2 (01-01-2017) Invalid Conditions Section 27 fields will display as invalid if other than numeric.

# Correction Procedures

3.12.2.25.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries on displayed fields. Compare the screen display with the entries on the return. If transcribed incorrectly, overlay the screen display with the correct amount(s).

# Field 2701A, Gross Sales or Exchanges Amount

3.12.2.25.3.1 (01-01-2017) Field 2701A, Gross Sales or Exchanges Amount Field 2701A represents the Gross Sales or Exchanges Amount, line 1a.

# Field 2701B, Total Gain Due to Partial Disposition of MACRS Assets

3.12.2.25.3.2 (01-01-2022) Field 2701B, Total Gain Due to Partial Disposition of MACRS Assets Field 2701B represents the Total Gain Due to Partial Disposition of MACRS Assets, line 1b.

# Field 2701C, Total Loss Due to Partial Disposition of MACRS Assets

3.12.2.25.3.3 (01-01-2022) Field 2701C, Total Loss Due to Partial Disposition of MACRS Assets Field 2701C represents the Total Loss Due to Partial Disposition of MACRS Assets, line 1c.

# Field 2707, Section 1231 Gain/Loss

3.12.2.25.3.4 (01-01-2017) Field 2707, Section 1231 Gain/Loss Field 2707 represents the current year Section 1231 gain/losses, Part I, line 7.

# Field 2708, Non-recaptured Net Section 1231 Loss

3.12.2.25.3.5 (01-01-2017) Field 2708, Non-recaptured Net Section 1231 Loss Field 2708 represents the total non-recaptured losses from earlier years, Part I, line 8.

# Field 2709, Total Sales of Business Property

3.12.2.25.3.6 (01-01-2017) Field 2709, Total Sales of Business Property Field 2709 represents the total of all sales of business property, Part I, line 9.

# Field 27LD, Livestock Depreciation

3.12.2.25.3.7 (01-01-2017) Field 27LD, Livestock Depreciation Field 27LD represents the total of livestock depreciation, bottom of page 1, center.

# Section 28, Form 4972

3.12.2.26 (11-27-2020) Section 28, Form 4972 Form 4972, Tax on Lump-Sum Distributions, is used to report "qualified lump-sum distributions" . Taxpayers pay the associated tax on line 16, Form 1040 (TY19, line 12a; TY18, line 11a; TY17, line 44), instead of including the qualified distribution as income. Refer to EC 084 and 264. To "qualify" to report their lump-sum distribution on Form 4972, the taxpayer must satisfactorily answer the questions in Part I. If the questions are not answered satisfactorily, then the Examination function will review the return and decide if Unallowable Codes 16 through 20 apply. The questions from Part I will only be coded for TY96 and later. Refer to EC 084. The 20 percent Capital Gain Election, Part II, and the 10 year option methods, Part III, are special formulas used to figure a separate tax on a qualified lump-sum distribution for the year that the distribution was received. The tax is paid only once; it is not paid over the next 10 years.

# Error Record Format, Section 28

3.12.2.26.1 (01-01-2023) Error Record Format, Section 28 Section 28 consists of the following fields: Form 4972 Field Name Field Location 2801 Qualifying Plan Indicator Line 1 2802 Rollover Indicator Line 2 2803 Employee Benefit Indicator Line 3 2804 Five Year Member Indicator Line 4 2805A Prior-Year Distribution Indicator Line 5a 2805B Death Beneficiary Indicator Line 5b 2806 Form 4972 Capital Gain Line 6 2811 Current Actuarial Value Amount Line 11 2812 Adjusted Taxable Amount Line 12 2818 Federal Estate Tax Amount Line 18 2830 Form 4972 Tax Taxpayer Line 30 28TDV Form 4972 Tax Verified ERS input only All fields in this section must be positive.

# Invalid Conditions

3.12.2.26.2 (01-01-2020) Invalid Conditions Section 28 fields will display as invalid if other than numeric. Additional invalid conditions are given for Fields 2801 through 2805B.

# Correction Procedures

3.12.2.26.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures for Section 28 fields follow.

# Fields 2801 through 2805B

3.12.2.26.3.1 (01-01-2026) Fields 2801 through 2805B Fields 2801 through 2805B are transcribed from Form 4972, Part I, lines 1 through 5b: Field 2801, Qualifying Plan Indicator, from line 1 Field 2802, Rollover Indicator, from line 2 Field 2803, Employee Benefit Indicator, from line 3 Field 2804, Five Year Member Indicator, from line 4 Field 2805A, Prior-Year Distribution Indicator, from line 5a Field 2805B, Death Beneficiary Indicator, from line 5b Fields 2801 through 2805B will display as invalid if other than blank, 0 (zero), 1, or 2. Determine the correct coding for Fields 2801 through 2805B from the following table: If taxpayer checked Then A] Yes box, Enter code 1. B] No box, Enter code 2. C] Both yes and no boxes, Enter code 2. D] Neither box Blank the field, except Field 2805B. Exception: If line 5b (Field 2805B) is not answered, enter code 0 (zero).

# Fields 2806 through 2830

3.12.2.26.3.2 (01-01-2026) Fields 2806 through 2830 Fields 2806 through 2830 are transcribed in dollars and cents and can contain up to eleven digits. Field 2806, Form 4972 Capital Gain, is transcribed from Part II of Form 4972, line 6. Fields 2811 through 2830 are transcribed from Part III of Form 4972: Field 2811, Current Actuarial Value Amount, from line 11 Field 2812, Adjusted Taxable Amount, from line 12 Field 2818, Federal Estate Tax Amount, from line 18 Field 2830, Form 4972 Tax Taxpayer, from line 30 Compare the screen display with the entries on the return. If transcribed incorrectly, overlay the screen display with the correct amount(s).

# Field 28TDV, Form 4972, Tax Distributions Verified

3.12.2.26.3.3 (01-01-2017) Field 28TDV, Form 4972, Tax Distributions Verified Field 28TDV is an ERS input only field. Field 28TDV is used when the taxpayer has used a special computation and the computer cannot arrive at the correct amount for Form 4972, Tax on Lump-Sum Distribution Tax.

# Sections 29 and 30, Form 5329

3.12.2.27 (01-01-2017) Sections 29 and 30, Form 5329 Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts, is used to report any additional income tax or excise tax owed in connection with any of the following: Qualified retirement plan (including IRAs) Modified endowment contract Annuity Coverdell Education Savings Account (formally Education IRA) Archer MSA Health Savings Accounts (HSAs) ABLE Accounts Refer to EC 318. Two Forms 5329 may be processed with a return. The first Form 5329 displays as Section 29 and the second Form 5329 as Section 30. One is for the primary and one for the secondary taxpayer. Note: For the remainder of this text, Form 5329 will be referred to as Section 29; however, all correction procedures will apply equally to Sections 29 and 30.

# Error Record Format, Section 29 and 30

3.12.2.27.1 (01-01-2026) Error Record Format, Section 29 and 30 Section 29 consists of the following fields: Form 5329 Field Name Field Location 29ISI IRA Spouse Indicator Upper left portion of the form 29ENE Exception Number for Early Distributions Not Subject to Tax To the left of line 2 2902 Early Distributions Not Subject to Tax Amount Line 2 2904 Additional Tax on Early Distributions Line 4 2908 Additional Tax on Distributions from Education Accounts Line 8 2917 Tax on Excess IRA Contributions Line 17 2925 Tax on Excess ROTH IRA Contributions Line 25 2933 Tax on Excess Coverdell Education Savings Account Contributions Line 33 2941 Tax on Excess Archer MSA Contributions Line 41 2942 Prior Year Excess HSA Contributions Amount Line 42 2943 HSA Contributions Line 43 2944 Form 8889 HSA Distributions Amount Line 44 2949 Tax on Excess Contributions to HSA Line 49 2951 Tax on Excess ABLE Contribution Amount Line 51 2955 Tax on Excess Accumulation Amount Line 55 29ICC IRA Condition Code Lower right margin of page 2 of the form All fields must be positive.

# Invalid Conditions

3.12.2.27.2 (01-01-2026) Invalid Conditions Fields in Section 29 will display as invalid if not all numeric. Additional invalid conditions are given for Fields 29ISI, 29ENE, and 29ICC.

# Correction Procedures

3.12.2.27.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Compare the screen display with the entries on the return. If transcribed incorrectly, overlay the screen display with the correct entry or entries.

# Field 29ISI, IRA Spouse Indicator

3.12.2.27.3.1 (04-25-2022) Field 29ISI, IRA Spouse Indicator Field 29ISI indicates to which taxpayer the Form 5329 belongs and is entered only on joint returns. This field is edited to the right of the literal "Form 5329" in the upper left portion on Form 5329. This field will display as invalid if transcribed as other than 1 or 2. Correct any editing or transcription error(s). If invalid, compare the name on Form 5329 to the names on Form 1040, and code as follows: If the code is invalid and And Form 5329 Then A] FSC is 2, Is for the primary taxpayer, Enter code 1. B] FSC is 2, Is for the secondary taxpayer, Enter code 2. C] FSC is 2, Taxpayer cannot be determined, SSPND 211. D] FSC is other than 2, Delete code from field.

# Field 29ENE, Exception Number for Early Distributions Not Subject to Tax

3.12.2.27.3.2 (01-01-2026) Field 29ENE, Exception Number for Early Distributions Not Subject to Tax Field 29ENE is a two-digit numeric field transcribed from the line to the left of Form 5329, line 2, "Enter the appropriate exception number from the instructions:" . Valid values: 01 - Qualified distributions received on or after 55 years of age or 25 years of service 02 - Periodic payment distributions 03 - Distributions due to total and permanent disability 04 - Distributions due to death 05 - Qualified distributions for unreimbursed medical expenses 06 - Qualified distributions made to an alternate payer 07 - IRA distributions to unemployed for health insurance premiums 08 - IRA distributions for qualified higher education expenses 09 - IRA distributions for first home purchase 10 - Qualified distributions due to IRS levy 11 - Qualified distributions to reservists serving in active duty 12 - Distributions incorrectly indicated on Form 1099-R 13 - Distributions from a section 457 plan 14 - Distributions from employer plan 15 - Dividends paid with respect to stock described in section 404(k) 16- Distributions from annuity contracts 17 - Phased retirement annuity payment distributions 18 - Permissible withdrawals under section 414(w) 19 - Qualified birth or adoption distributions 20 - Distributions due to terminal illness 21 - Corrective distributions 22 - Qualified distributions to victims of domestic abuse 23 - Distributions for eligible emergency expenses 24 - Distributions used to purchase long-term care contracts 99 - More than one exception applies If more than one code is present, enter "99" in Field 29ENE.

# Field 2902, Early Distributions Not Subject to Tax Amount

3.12.2.27.3.3 (01-01-2026) Field 2902, Early Distributions Not Subject to Tax Amount Field 2902 is transcribed from Form 5329, line 2. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2904, Additional Tax on Early Distributions

3.12.2.27.3.4 (01-01-2017) Field 2904, Additional Tax on Early Distributions Field 2904 is transcribed from line 4, Form 5329. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2908, Additional Tax on Certain Distributions From Education Accounts

3.12.2.27.3.5 (01-01-2017) Field 2908, Additional Tax on Certain Distributions From Education Accounts Field 2908 is transcribed from line 8, Form 5329. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2917, Tax on Excess IRA Contributions

3.12.2.27.3.6 (01-01-2017) Field 2917, Tax on Excess IRA Contributions Field 2917 is transcribed from line 17, Form 5329. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2925, Tax on Excess Roth IRA Contributions

3.12.2.27.3.7 (01-01-2017) Field 2925, Tax on Excess Roth IRA Contributions Field 2925 is transcribed from line 25, Form 5329. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2933, Tax on Excess Coverdell Education Savings Account Contributions

3.12.2.27.3.8 (01-01-2023) Field 2933, Tax on Excess Coverdell Education Savings Account Contributions Field 2933 is transcribed from line 33, Form 5329. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2941, Tax on Excess MSA Contributions

3.12.2.27.3.9 (01-01-2017) Field 2941, Tax on Excess MSA Contributions Field 2941 is transcribed from line 41, Form 5329. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2942, Prior Year Excess HSA Contributions Amount

3.12.2.27.3.10 (01-01-2026) Field 2942, Prior Year Excess HSA Contributions Amount Field 2942 is transcribed from Form 5329, line 42. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2943, HSA Contributions

3.12.2.27.3.11 (01-01-2026) Field 2943, HSA Contributions Field 2943 is transcribed from Form 5329, line 43. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2944, Form 8889 HSA Distributions Amount

3.12.2.27.3.12 (01-01-2026) Field 2944, Form 8889 HSA Distributions Amount Field 2944 is transcribed from Form 5329, line 44. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2949, Tax on Excess Contributions to HSA

3.12.2.27.3.13 (01-01-2017) Field 2949, Tax on Excess Contributions to HSA Field 2949 is transcribed from line 49, Form 5329. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2951, Tax on Excess ABLE Contribution Amount

3.12.2.27.3.14 (01-01-2017) Field 2951, Tax on Excess ABLE Contribution Amount Field 2951 is transcribed from line 51, Form 5329. This field can contain up to 11 numeric characters as dollars and cents.

# Field 2955 Tax on Excess Accumulation Amount

3.12.2.27.3.15 (01-01-2017) Field 2955 Tax on Excess Accumulation Amount Field 2955 is transcribed from line 55, Form 5329. Enter IRA Condition Code 35 in Field 29ICC, when a request for waiver of tax is attached. This field can contain up to 11 numeric characters as dollars and cents.

# Field 29ICC, IRA Condition Codes

3.12.2.27.3.16 (01-01-2017) Field 29ICC, IRA Condition Codes Field 29ICC codes are edited in the lower right margin of page 2 of Form 5329 and may contain up to 5 codes (10 characters). A field error will display when any of the following exist: Not all characters numeric. The first, third, fifth, seventh, and ninth characters are other than 3. The total number of characters is not an even number. Compare the field on the screen with the entry on the return, correcting any editing or transcription error(s). If invalid, code as follows: If the return And Then A] Indicates a reasonable cause for failure to pay penalty, CCC M is present in Field 01CCC, Enter 30 in Field 29ICC. Note: If the return is a Combat Zone Return and CCC "M" is present, then delete the CCC "M" . See IRM 3.12.2.3.10. B] Indicates a reasonable cause for failure to file Form 5329, CCC R is present in Field 01CCC, Enter 33 in Field 29ICC. C] Is a Dummy, An amended Form 5329 is attached, Enter 32 in Field 29ICC. D] Needs Manual Assessment or Abatement, Enter 35 in Field 29ICC. E] Is an Early Filed Decedent, Has a change of Accounting Period, Enter 36 in Field 29ICC. F] Is for a deceased taxpayer, Taxpayer filed a Form 5329, Enter 37 in Field 29ICC. G] Has none of the preceding conditions, Blank the field.

# Section 31, Form 6198

3.12.2.28 (01-01-2017) Section 31, Form 6198 Form 6198, At-Risk Limitations, is used to compute the amount of deductible loss, limited to the amount of loss or the amount at risk, whichever is less. Refer to EC 073.

# Error Record Format, Section 31

3.12.2.28.1 (01-01-2023) Error Record Format, Section 31 Section 31 consists of the following fields: Form 6198 Field Name Field Location 3105 Overall Profit/Loss Line 5 3120 Amount At Risk Line 20 3121 Deductible Loss Line 21 Field 3105 may be positive or negative. All other fields must be positive.

# Invalid Conditions

3.12.2.28.2 (01-01-2020) Invalid Conditions Fields in Section 31 will display as invalid if not all numeric.

# Correction Procedures

3.12.2.28.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries on displayed fields. Combine all related transcription lines when there are multiple Forms 6198. Additional correction procedures for Section 31 fields follow.

# Field 3105, Overall Profit/Loss

3.12.2.28.3.1 (04-25-2022) Field 3105, Overall Profit/Loss Field 3105 is transcribed from line 5, Part I of Form 6198. Correct Field 3105 as follows: If Then A] Line 5 shows a profit, There is no at-risk issue. B] Line 5 shows a loss, Verify an entry is present in line 21. C] Line 21 cannot be determined, SSPND 211.

# Field 3120, Amount at Risk

3.12.2.28.3.2 (01-01-2017) Field 3120, Amount at Risk Field 3120 is transcribed from line 20, Part IV of Form 6198. This field is invalid if a negative amount. Enter amount from line 10b or 19b, whichever is larger, when line 20 is blank.

# Field 3121, Deductible Loss

3.12.2.28.3.3 (01-01-2017) Field 3121, Deductible Loss Field 3121 is transcribed from line 21, Part IV of Form 6198. If the taxpayer's loss on Schedule C and/or F exceeds the deductible loss (line 21), EC 073 will generate.

# Section 32, Form 6251

3.12.2.29 (01-01-2023) Section 32, Form 6251 Form 6251, Alternative Minimum Tax-Individuals, is used to ensure that taxpayers do not avoid a significant tax liability. AMT sets a limit on the special benefits that can be used to reduce Total Tax. Refer to EC 268. TY18 and later, taxpayers are instructed to attach Form 6251 to their return if any of the following statements is true: Line 7 of Form 6251 is greater than line 10 of Form 6251. Form 3800, line 6 or line 25 is more than zero. Credit is claimed on Form 8834 or Form 8801. The total of lines 2c through 3 of Form 6251 is negative, and line 7 of Form 6251 would exceed line 10 without taking those lines into account. TY17, taxpayers are instructed to attach Form 6251 to their return if any of the following statements is true: Line 31 of Form 6251 is greater than line 34 of Form 6251. Form 3800, line 6, or line 25 is more than zero. Credit is claimed on Form 8834, Form 8801, or Form 8911, Part III. The total of Form 6251, lines 8 through 27, is negative, and Form 6251, line 31, would exceed line 34 without taking those lines into account. TY01 and later - Part III of Form 6251 is the Computation Using Maximum Capital Gains Rates. Taxpayers who must complete Form 6251 must also complete Part III of Form 6251 if they reported Capital Gain Distributions directly on Form 1040, line 7a (TY24 - TY20, line 7; TY19, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13), or had a gain on both lines 18 and 19 of Schedule D, or as refigured for AMT purposes.

# Error Record Format, Section 32

3.12.2.29.1 (01-01-2023) Error Record Format, Section 32 Section 32 consists of the following fields: Form 6251 Field Name Field Location 32HMI Certain Home Mortgage Interest ERS input only (from TY17, line 4) 3202C Investment Interest Expense Line 2c (TY17, line 8) 3202D Depletion Line 2d (TY17, line 9) 3202E Net Operating Loss Line 2e (TY17, line 10) 3202F Alternative Tax Net Operating Loss Line 2f (TY17, line 11) 3202G Tax Exempt Interest from Private Activity Bonds Line 2g (TY17, line 12) 3202H Qualified Small Business Stock - Exclusion Section 1202 Line 2h (TY17, line 13) 3202I Incentive Stock Options Line 2i (TY17, line 14) 3202J Beneficiaries of Estates and Trusts Line 2j (TY17, line 15) 3202K Disposition of Property Line 2k (TY17, line 17) 3202L Depreciation on Assets Line 2l (TY17, line 18) 3202M Passive Activity Line 2m (TY17, line 19) 3202N Loss Limitations Line 2n (TY17, line 20) 3202O Circulation Expenditures Line 2o (TY17, line 21) 3202P Long-Term Contracts Line 2p (TY17, line 22) 3202Q Mining Cost Line 2q (TY17, line 23) 3202R Research and Experimental Costs Line 2r (TY17, line 24) 3202S Income from Certain Installment Sales Line 2s (TY17, line 25) 3202T Intangible Drilling Costs Line 2t (TY17, line 26) 3203 Other Adjustments Line 3 (TY17, line 27) 3208 Form 6251 Foreign Tax Credit Line 8 (TY17, line 32) 3211V Alternative Minimum Tax Verified ERS input only Fields 32HMI, 3202E, 3202H, 3202T, and 3203 are positive fields only. Fields 3202F, and 3202S are negative fields only (entered as a positive). All other fields in this section may be either positive or negative. The maximum field length for each field is 11 characters.

# Invalid Conditions

3.12.2.29.2 (01-01-2020) Invalid Conditions Section 32 fields will display as invalid if not all numeric.

# Correction Procedures

3.12.2.29.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures for Section 32 fields follow.

# Field 32HMI, Certain Home Mortgage Interest

3.12.2.29.3.1 (01-01-2020) Field 32HMI, Certain Home Mortgage Interest Field 32HMI is an ERS input only field for TY17 and prior, Form 6251, Part I, line 4 amount of home mortgage interest adjustment.

# Fields 3202C through 3203

3.12.2.29.3.2 (01-01-2026) Fields 3202C through 3203 These fields are transcribed from Part I, Alternative Minimum Taxable Income, Form 6251: Field 3202C, Investment Interest Expense, from line 2c (TY17, line 8) Field 3202D, Depletion, from line 2d (TY17, line 9) Field 3202E, Net Operating Loss, from line 2e (TY17, line 10) Field 3202F, Alternative Tax Net Operating Loss, from line 2f (TY17, line 11) Field 3202G, Tax Exempt Interest from Private Activity Bonds, from line 2g (TY17, line 12) Field 3202H, Qualified Small Business Stock - Exclusion Section 1202, from line 2h (TY17, line 13) Field 3202I, Incentive Stock Options, from line 2i (TY17, line 14) Field 3202J, Beneficiaries of Estates and Trusts, from line 2j (TY17, line 15) Field 3202K, Disposition of Property, from line 2k (TY17, line 17) Field 3202L, Depreciation on Assets, from line 2l (TY17, line 18) Field 3202M, Passive Activity, from line 2m (TY17, line 19) Field 3202N, Loss Limitations, from line 2n (TY17, line 20) Field 3202O, Circulation Expenditures, from line 2o (TY17, line 21) Field 3202P, Long-Term Contracts, from line 2p (TY17, line 22) Field 3202Q, Mining Cost, from line 2q (TY17, line 23) Field 3202R, Research and Experimental Costs, from line 2r (TY17, line 24) Field 3202S, Income from Certain Installment Sales, from line 2s (TY17, line 25) Field 3202T, Intangible Drilling Costs, from line 2t (TY17, line 26) Field 3203, Other Adjustments, from line 3 (TY17, line 27)

# Field 3208, Form 6251 Foreign Tax Credit

3.12.2.29.3.3 (01-01-2019) Field 3208, Form 6251 Foreign Tax Credit This field is transcribed from Part II, line 8, Form 6251 (TY17, line 32). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 3211V, Alternative Minimum Tax Verified

3.12.2.29.3.4 (01-01-2018) Field 3211V, Alternative Minimum Tax Verified This field is for ERS input only. It is used when the computer cannot correctly calculate Form 6251 (e.g., when the taxpayer uses an alternate allowable computation).

# Section 33, Form 8615

3.12.2.30 (01-01-2026) Section 33, Form 8615 Form 8615, Tax for Certain Children Who Have Unearned Income, is used to determine the tax on unearned income of a taxpayer under the age of 18 (24 if the taxpayer is a full-time student). The unearned income is taxed at the tax rates for estates and trusts for tax years 2018 through 2019, and at the tax rate of the taxpayer's parent for all other tax years if the parent's rate is higher than the child's. Form 8615 is filed for certain children who have more than $2,700 (TY24, $2,600; TY23, $2,500; TY22, $2,300; TY21 - TY19, $2,200; TY18 - TY15, $2,100) of investment income. Refer to EC 257 and 258. Form 8615 is attached to the child's Form 1040.

# Error Record Format, Section 33

3.12.2.30.1 (01-01-2023) Error Record Format, Section 33 Section 33 consists of the following fields: Forms 8615 Field Name Field Location 33PNC Parent's Name Control Box A in the Header of the Form 33PSS Parent's SSN Box B in the Header of the Form 3301 Form 8615 Gross Investment Income Line 1 3302 Form 8615 Deductions Line 2 3318 Form 8615 Tax Line 18 TY19 - TY18, line 07 3318V Form 8615 Tax Verified ERS input only All money fields in this section must be positive.

# Invalid Conditions

3.12.2.30.2 (01-01-2017) Invalid Conditions With the exception of Field 33PNC, fields in Section 33 will display as invalid if not numeric. Field 33PNC will display as invalid if other than alphas or blank. Additional invalid conditions are given for specific fields in Section 33.

# Correction Procedures

3.12.2.30.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures for Section 33 fields follow.

# Field 33PNC, Parent's Name Control

3.12.2.30.3.1 (01-01-2023) Field 33PNC, Parent's Name Control The parent's name control is transcribed from the parent's name line on Form 8615, box A. Use the following table to correct Field 33PNC when an entry is not present: If the Parent(s) Name And Then A] Is found on the return, attachments, or through research of Command Code NAMEI, Enter the Name Control in Field 33PNC. B] Is not found on return, attachments, or through research of Command Code NAMEI, Field 33PNC is blank, SSPND 211

# Field 33PSS, Parent(s) Social Security Number

3.12.2.30.3.2 (01-01-2023) Field 33PSS, Parent(s) Social Security Number The parent's social security number is transcribed from the parent's social security number line on Form 8615, box B. Use the following table to correct the parental SSN when Field 33PSS is blank or has fewer than 9 digits: If Parent's SSN is And Then A] Found on the return or attachments, Enter the parent's SSN in Field 33PSS. B] Not found on return or attachments, Parental SSN is not present in Field 33PSS or less than 9 digits, SSPND 211.

# Field 3301, Form 8615 Gross Investment Income

3.12.2.30.3.3 (01-01-2018) Field 3301, Form 8615 Gross Investment Income Field 3301 is transcribed from line 1 of Form 8615.

# Field 3302, Form 8615 Deductions

3.12.2.30.3.4 (01-01-2018) Field 3302, Form 8615 Deductions Field 3302 is transcribed from line 2 of Form 8615.

# Field 3318, Form 8615 Tax

3.12.2.30.3.5 (11-27-2020) Field 3318, Form 8615 Tax Field 3318 is transcribed from line 18, Form 8615 (TY19 - TY18, line 7; TY17, line 18, Form 8615). TY98 and later, the computer's amount for Form 8615 Tax will be set equal to the taxpayer's figure for Form 8615 Tax.

# Field 3318V, Form 8615 Tax Verified

3.12.2.30.3.6 (11-27-2020) Field 3318V, Form 8615 Tax Verified Field 3318V is for ERS input only and is used when the computer cannot correctly compute the Form 8615 tax.

# Section 36, Form 8283

3.12.2.31 (01-01-2026) Section 36, Form 8283 Form 8283, Noncash Charitable Contributions, is used to claim a deduction for a charitable contribution of property.

# Error Record Format, Section 36

3.12.2.31.1 (01-01-2026) Error Record Format, Section 36 Section 36 consists of the following fields: Form 8283 Field Name Field Location 3602 Type of Property Donated Code Part I, line 2 checkboxes 3603C Appraised Market Value Part I, line 3A, column (c) 3603D Acquired by Donor Date Part I, line 3A, column (d) 3603F Cost or Adjusted Basis Amount Part I, line 3A, column (f) 3604A Part IV Appraiser Signature Indicator Part IV Signature area 3604B Appraiser Identifying Number Part IV Identifying Number 3605A Donated Property Received Date Part V Date 3605B Employer Identification Number Part V EIN 3605C Part V Authorized Signature Indicator Part V Signature area 36IND Additional Form 8283 Indicator Lower right margin

# Invalid Conditions

3.12.2.31.2 (01-01-2026) Invalid Conditions Except for Field 3602, all Section 36 fields will display as invalid if not all numeric. Field 3602 will display as invalid if other than an alpha or numeric character, or blank.

# Correction Procedures

3.12.2.31.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Compare the screen display with the entries on the return. If transcribed incorrectly, overlay the screen display with the correct entry or entries. Correction procedures for Section 36 fields follow.

# Field 3602, Type of Property Donated Code

3.12.2.31.3.1 (01-01-2026) Field 3602, Type of Property Donated Code Field 3602 is a one-digit alphanumeric field transcribed from Form 8283, Part I, line 2, based on the marked checkbox describing the type of property donated. Valid values: Blank: default A: Art contribution $20,000 or more B: Qualified conservation contribution 1: Certified historic structure C: Art contribution less than $20,000 D: Other real estate E: Equipment F: Securities G: Collectibles H: Intellectual property I: Vehicles J: Clothing and household items K: Digital assets L: Other

# Field 3603C, Appraised Market Value

3.12.2.31.3.2 (01-01-2026) Field 3603C, Appraised Market Value Field 3603C is transcribed from Form 8283, Part I, line 3A, column (c). The field can contain up to 11 numeric characters as a positive dollar amount.

# Field 3603D, Acquired by Donor Date

3.12.2.31.3.3 (01-01-2026) Field 3603D, Acquired by Donor Date Field 3603D is transcribed from Form 8283, Part I, line 3A, column (d). The field can contain a numeric date in MMYYYY format, or V when the taxpayer has noted "Various" instead of month and year.

# Field 3603F, Cost or Adjusted Basis Amount

3.12.2.31.3.4 (01-01-2026) Field 3603F, Cost or Adjusted Basis Amount Field 3603F is transcribed from Form 8283, Part I, line 3A, column (f). The field can contain up to 11 numeric characters as a positive dollar amount.

# Field 3604A, Part IV Appraiser Signature Indicator

3.12.2.31.3.5 (01-01-2026) Field 3604A, Part IV Appraiser Signature Indicator Field 3604A is input when a signature is present on the "Appraiser signature" line on Form 8283, Part IV, Declaration of Appraiser. Valid values: 0: Default 1: Signature present

# Field 3604B, Appraiser Identifying Number

3.12.2.31.3.6 (01-01-2026) Field 3604B, Appraiser Identifying Number Field 3604B is transcribed from the "Identifying number" area in Form 8283, Part IV, Declaration of Appraiser. The field is nine numeric characters.

# Field 3605A, Donated Property Received Date

3.12.2.31.3.7 (01-01-2026) Field 3605A, Donated Property Received Date Field 3605A is transcribed from Form 8283, Part V, Donee Acknowledgment, identifying the date that the charitable organization received the donated property. The field is eight numeric positions in YYYYMMDD format.

# Field 3605B, Employer Identification Number

3.12.2.31.3.8 (01-01-2026) Field 3605B, Employer Identification Number Field 3605B is transcribed from the "Employer identification number" line in Part V, Form 8283. The field is nine numeric characters.

# Field 3605C, Part V Authorized Signature Indicator

3.12.2.31.3.9 (01-01-2026) Field 3605C, Part V Authorized Signature Indicator Field 3605C is input when a signature is present on the "Authorized signature" line on Form 8283, Part V, Donee Acknowledgment. Valid values: 0: Default 1: Signature present

# Field 36IND, Additional Form 8283 Indicator

3.12.2.31.3.10 (01-01-2026) Field 36IND, Additional Form 8283 Indicator Field 36IND is transcribed from the lower right margin of Form 8283. Code and Edit will edit a 1 when more than one Form 8283 is present. Valid values: 0: Default 1: More than one Form 8283 is present

# Section 37, Form 4835

3.12.2.32 (01-01-2017) Section 37, Form 4835 Form 4835, Farm Rental Income and Expenses, is used by landlords to report Farm Rental Income. Income is based on crops or livestock produced by the tenant. The landlord may not materially participate in the operation of the farm.

# Error Record Format, Section 37

3.12.2.32.1 (01-01-2023) Error Record Format, Section 37 Section 37 consists of the following fields: Form 4835 Field Name Field Location 3701 Income from Livestock Line 1 3702A Total Cooperative Distributions Line 2a 3703A Agricultural Program Payments Line 3a 3704A CCC Loans Reported Under Election Line 4a 3704B CCC Loans Forfeited Repaid Line 4b 3705A Crop Insurance Proceeds Received Line 5a 3706 Form 4835 Other Income Line 6 All fields in this section are positive entries, up to 11 numeric characters in each field.

# Invalid Conditions

3.12.2.32.2 (01-01-2017) Invalid Conditions Section 37 fields will display as invalid if not all numeric.

# Correction Procedures

3.12.2.32.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If the entry on Form 4835 is not numeric or is illegible, delete the entry in the displayed field in Section 37.

# Fields 3701 to 3706

3.12.2.32.3.1 (01-01-2026) Fields 3701 to 3706 These fields are transcribed from Part I, Gross Farm Rental Income, Form 4835: Field 3701, Income from Livestock, from line 1 Field 3702A, Total Cooperative Distributions, from line 2a Field 3703A, Agricultural Program payments, from line 3a Field 3704A, CCC Loans Reported Under Election, from line 4a Field 3704B, CCC Loans Forfeited Repaid, from line 4b Field 3705A, Crop Insurance Proceeds Received, from line 5a Field 3706, Form 4835 Other Income, from line 6

# Section 38, Form 8839

3.12.2.33 (01-01-2025) Section 38, Form 8839 Form 8839, Qualified Adoption Expenses, is used to figure the adoption credit amount and any employer provided adoption benefits that can be excluded from income. Taxpayers can claim up to $17,280 (TY24, $16,810; TY23, $15,950; TY22, $14,890; TY21, $14,440; TY20, $14,300; TY19, $14,080; TY18, $13,810; TY17, $13,570) for qualifying expenses paid to adopt an eligible child. Refer to EC 294. The taxpayer may claim both a credit and an exclusion for expenses of adopting an eligible child, if the employer paid or incurred qualified adoption expenses, pursuant to an adoption assistance program. For example, for an eligible child, the taxpayer may be able to claim a credit of up to $17,280 (TY24, $16,810; TY23, $15,950; TY22, $14,890; TY21, $14,440; TY20, $14,300; TY19, $14,080; TY18, $13,810; TY17, $13,570) from their income. However, the taxpayer cannot claim both a credit and an exclusion for the same expense. If the taxpayer adopted or unsuccessfully attempted to adopt with employer-provided adoption benefits more than three eligible children, the taxpayer is instructed to provide as many Forms 8839 as necessary to account for all of the adoptions/attempted adoptions.

# Error Record Format, Section 38

3.12.2.33.1 (01-01-2026) Error Record Format, Section 38 Section 38 consists of the following fields: Form 8839 Field Name Field Location 38NC1 Form 8839 Child 1 Name Control Line 1a, Child 1 38YB1 Form 8839 Child 1 Year of Birth Line 1b, Child 1 38DI1 Form 8839 Child 1 Disabled Indicator Line 1c, Child 1 38SP1 Form 8839 Child 1 Special Needs Indicator Line 1d, Child 1 38FC1 Form 8839 Child 1 Foreign Indicator Line 1e, Child 1 38TN1 Form 8839 Child 1 SSN Line 1f, Child 1 38FA1 Form 8839 Child 1 Final Adoption Indicator Line 1g, Child 1 38NC2 Form 8839 Child 2 Name Control Line 1a, Child 2 38YB2 Form 8839 Child 2 Year of Birth Line 1b, Child 2 38DI2 Form 8839 Child 2 Disabled Indicator Line 1c, Child 2 38SP2 Form 8839 Child 2 Special Needs Indicator Line 1d, Child 2 38FC2 Form 8839 Child 2 Foreign Indicator Line 1e, Child 2 38TN2 Form 8839 Child 2 SSN Line 1f, Child 2 38FA2 Form 8839 Child 2 Final Adoption Indicator Line 1g, Child 2 38NC3 Form 8839 Child 3 Name Control Line 1a, Child 3 38YB3 Form 8839 Child 3 Year of Birth Line 1b, Child 3 38DI3 Form 8839 Child 3 Disabled Indicator Line 1c, Child 3 38SP3 Form 8839 Child 3 Special Needs Indicator Line 1d, Child 3 38FC3 Form 8839 Child 3 Foreign Indicator Line 1e, Child 3 38TN3 Form 8839 Child 3 SSN Line 1f, Child 3 38FA3 Form 8839 Child 3 Final Adoption Indicator Line 1g, Child 3 38SDI Supporting Documentation Indicator Edited below line 1g 38PY1 Form 8839 Child 1 Prior Year Adoption Amount Line 3, Child 1 38PY2 Form 8839 Child 2 Prior Year Adoption Amount Line 3, Child 2 38PY3 Form 8839 Child 3 Prior Year Adoption Amount Line 3, Child 3 38QE1 Form 8839 Child 1 Qualified Adoption Expenses Line 5, Child 1 38QE2 Form 8839 Child 2 Qualified Adoption Expenses Line 5, Child 2 38QE3 Form 8839 Child 3 Qualified Adoption Expenses Line 5, Child 3 38TA1 Form 8839 Child 1 Total Adoption Credit Amount Line 11a, Child 1 38TA2 Form 8839 Child 2 Total Adoption Credit Amount Line 11a, Child 2 38TA3 Form 8839 Child 3 Total Adoption Credit Amount Line 11a, Child 3 38CF Form 8839 Carryforward Amount Line 15 38TEB Form 8839 Total Employer-Provided Adoption Benefits Line 23 38EB1 Form 8839 Child 1 Excluded Benefits Line 29, Child 1 38EB2 Form 8839 Child 2 Excluded Benefits Line 29, Child 2 38EB3 Form 8839 Child 3 Excluded Benefits Line 29, Child 3 38EEB Form 8839 Employer-Provided Excluded Benefits Line 30 38ETB Form 8839 Employer-Provided Taxable Benefits Line 31 38AAI Form 8839 Multiple Forms Indicator ERS input only 38ACV Adoption Credit Verified Amount (PY) ERS input only All money fields in this section must be positive.

# Invalid Conditions

3.12.2.33.2 (01-01-2020) Invalid Conditions Section 38 fields will display as invalid if not all numeric, except Fields 38NC1/38NC2/38NC3. Additional invalid conditions are given for specific fields in Section 38.

# Correction Procedures

3.12.2.33.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Additional correction procedures are provided for each field in Section 38.

# Fields 38SDI, Supporting Documentation Indicator (TY10 and later only)

3.12.2.33.3.1 (01-01-2018) Fields 38SDI, Supporting Documentation Indicator (TY10 and later only) Field 38SDI is a one-position field edited by Code and Edit or Exam below line 1g, Part I, Form 8839. This field will be invalid if other than 0 (zero), 1, or 2. If no code is present, use the following table: Note: Attached documentation must contain the word "adoption" . If And Then A] There is one or more child(ren) listed in column (a) and the adoption is reported as a final adoption (box in column (g) is checked), The adoption documentation is present, SSPND 460 to Rejects to be placed in the classification bin. Notate "F8839 Class" on Form 4227. B] There is one or more child(ren) listed in column (a) and the adoption is reported as a final adoption (box in column (g) is checked), The adoption documentation for any child is missing, Enter 0 (zero) in Field 38SDI. C] There is one or more child(ren) listed in column (a) and the adoption is in-process (box in column (g) is not checked), The adoption documentation is present that includes the name of each child listed in column (a) AND the documentation also includes the name of at least one of the taxpayers as the adoptive parent, Enter 1 in Field 38SDI. Exception: If any documentation is missing for any child, enter 0 (zero) in Field 38SDI. D] There is one or more child(ren) listed in column (a) and the adoption is in-process (box in column (g) is not checked), The adoption documentation for any child is missing, Enter 0 (zero) in Field 38SDI. E] There is one or more child(ren) listed in column (a) and the adoption is in-process (box in column (g) is not checked), The name(s) of any adopted child(ren) or of the taxpayer does not match the name on the adoption documentation, Enter 2 in Field 38SDI. Exception: If any documentation is missing for any child, enter 0 (zero) in Field 38SDI. Note: For FSC 2 returns, it is not required that both taxpayers' names are on the Form 8839 and the associated documentation. For returns that have been reviewed by Exam Classification, enter the edited code in Field 38SDI.

# Field 38NC1, 38NC2, and 38NC3, Form 8839 Adoptee Name Control

3.12.2.33.3.2 (01-01-2017) Field 38NC1, 38NC2, and 38NC3, Form 8839 Adoptee Name Control Fields 38NC1, 38NC2, and 38NC3 consist of the first four letters of the eligible child's last name transcribed from Form 8839, line 1, column (a) for child 1, child 2, and child 3. Field 38NC1, 38NC2, and 38NC3 will be invalid if present and one of the following exist: The first position is not an alpha. The second, third, or fourth positions are not alpha, hyphen, or blank. Compare the field with Form 8839 and correct accordingly. Blank the remaining positions when the child's last name is fewer than four characters.

# Fields 38YB1, 38YB2, and 38YB3, Form 8839 Adoptee Year of Birth

3.12.2.33.3.3 (01-01-2017) Fields 38YB1, 38YB2, and 38YB3, Form 8839 Adoptee Year of Birth Field 38YB1, 38YB2, and 38YB3 are each four spaces long and hold the child's year of birth transcribed from Form 8839, line 1, column (b) for child 1, child 2, and child 3.

# Field 38DI1, 38DI2, and 38DI3, Form 8839 Adoptee Disabled Indicator

3.12.2.33.3.4 (01-01-2017) Field 38DI1, 38DI2, and 38DI3, Form 8839 Adoptee Disabled Indicator Fields 38DI1, 38DI2, and 38DI3 are one-position fields transcribed from Form 8839, line 1, column (c) for child 1, child 2, and child 3. These fields will display as invalid if other than blank or 1. Determine the correct code as shown in the following table: If the taxpayer Then A] Has no entries on line 1, column (c) for Field 38DI1, 38DI2, or 38DI3, Blank the field. B] Checks a box(es) in column (c) of line 1, Enter code 1.

# Fields 38SP1, 38SP2, and 38SP3, Special Needs Indicator

3.12.2.33.3.5 (01-01-2017) Fields 38SP1, 38SP2, and 38SP3, Special Needs Indicator Fields 38SP1, 38SP2, and 38SP3 are one-position fields transcribed from Form 8839 , line 1, column (d), for child 1, child 2, and child 3, and will be invalid if other than 1 or 0 (zero). If the box on line 1, column (d) is checked, enter 1 in Field 38SP1/2/3.

# Fields 38FC1, 38FC2, and 38FC3, Foreign Child Indicator

3.12.2.33.3.6 (01-01-2017) Fields 38FC1, 38FC2, and 38FC3, Foreign Child Indicator Fields 38FC1, 38FC2, and 38FC3 are one-position fields transcribed from Form 8839 , line 1, column (e), for child 1, child 2, and child 3, and will be invalid if other than 1 or 0 (zero). If the box on line 1, column (e) is checked, enter 1 in Field 38FC1/2/3.

# Fields 38TN1, 38TN2, and 38TN3, Form 8839 Adoptee TIN

3.12.2.33.3.7 (01-01-2017) Fields 38TN1, 38TN2, and 38TN3, Form 8839 Adoptee TIN Fields 38TN1, 38TN2, and 38TN3 are transcribed from Form 8839 , line 1, column (f), for child 1, child 2, and child 3, and will be invalid if any of the following exists: Other than nine blanks or nine numeric characters. All zeros or all nines. The first three digits are 691-699. The first three digits are 729-899. Digits other than 000-00-0001 that are less than 001-01-0000. The first three digits are 900 through 999, and the fourth and fifth digits are not 07, 08, 09, 17, 18, 19, 28, 29, 49, 70-80, 89, or 93. Note: Refer to EC 013 and 296. Examine the return and attachments for correct SSN/ITIN/ATIN and take the following action: If SSN/ITIN/ATIN is Then A] Found, Enter in the appropriate field. B] Not found, Blank the field.

# Fields 38FA1, 38FA2, and 38FA3, Form 8839 Final Adoption Indicator

3.12.2.33.3.8 (01-01-2020) Fields 38FA1, 38FA2, and 38FA3, Form 8839 Final Adoption Indicator Fields 38FA1, 38FA2, and 38FA3 are one-position fields transcribed from Form 8839 , line 1, column (g), for child 1, child 2, and child 3, and will be invalid if other than 1 or 0 (zero). If the box on Form 8839, line 1, column (g) is checked, enter 1 in Field 38FA1/2/3.

# Fields 38PY1, 38PY2, and 38PY3, Form 8839 Prior-Year Adoption Amount

3.12.2.33.3.9 (01-01-2017) Fields 38PY1, 38PY2, and 38PY3, Form 8839 Prior-Year Adoption Amount Fields 38PY1, 38PY2, and 38PY3 are money entries transcribed from Form 8839 , line 3, child 1, child 2, and/or child 3 column.

# Fields 38QE1, 38QE2, and 38QE3, Form 8839 Qualified Adoption Expenses Amount

3.12.2.33.3.10 (01-01-2017) Fields 38QE1, 38QE2, and 38QE3, Form 8839 Qualified Adoption Expenses Amount Fields 38QE1, 38QE2, and 38QE3 are money entries transcribed from Form 8839, line 5, child 1, child 2, and/or child 3 column.

# Fields 38TA1, 38TA2, and 38TA3, Form 8839 Total Adoption Credit Amount

3.12.2.33.3.11 (01-01-2026) Fields 38TA1, 38TA2, and 38TA3, Form 8839 Total Adoption Credit Amount Fields 38TA1, 38TA2, and 38TA3 are money entries transcribed from Form 8839, line 11a, child 1, child 2, and/or child 3 column (TY24 and prior, line 11)-.

# Field 38CF, Form 8839 Carryforward Amount

3.12.2.33.3.12 (01-01-2026) Field 38CF, Form 8839 Carryforward Amount Field 38CF is transcribed from Form 8839, line 15 (TY24 and prior, line 13).

# Field 38TEB Form 8839 Total Employer Benefits Amount

3.12.2.33.3.13 (01-01-2026) Field 38TEB Form 8839 Total Employer Benefits Amount Field 38TEB is transcribed from Form 8839, line 23 (TY24 and prior, line 21).

# Fields 38EB1, 38EB2, and 38EB3, Form 8839 Excluded Benefits

3.12.2.33.3.14 (01-01-2017) Fields 38EB1, 38EB2, and 38EB3, Form 8839 Excluded Benefits Fields 38EB1, 38EB2. and 38EB3 are money entries transcribed from Form 8839 , line 29, Child 1, Child 2, and/or Child 3 column (TY24 and prior, line 27).

# Field 38EEB, Form 8839 Employer Excluded Benefits Amount

3.12.2.33.3.15 (01-01-2017) Field 38EEB, Form 8839 Employer Excluded Benefits Amount Field 38EEB is transcribed from Form 8839, line 30 (TY24 and prior, line 28).

# Field 38ETB, Form 8839 Employer Taxable Benefits Amount

3.12.2.33.3.16 (01-01-2017) Field 38ETB, Form 8839 Employer Taxable Benefits Amount Field 38ETB is transcribed from Form 8839, line 31 (TY24 and prior, line 29).

# Field 38AAI, Form 8839 Additional Adoptee Indicator

3.12.2.33.3.17 (01-01-2017) Field 38AAI, Form 8839 Additional Adoptee Indicator Field 38AAI is for ERS input only. Enter the number of additional adoptee children in Field 38AAI (e.g., If four children are claimed on Form(s) 8839, enter 1. If five children are claimed, enter 2, and so on). Refer to EC 294.

# Field 38ACV, Form 8839 Adoption Credit Verified Amount (PY)

3.12.2.33.3.18 (01-01-2017) Field 38ACV, Form 8839 Adoption Credit Verified Amount (PY) Field 38ACV is for ERS input only. It is used when the computer cannot correctly compute Adoption Credit. Refer to EC 294.

# Section 39, Form 8853

3.12.2.34 (01-01-2026) Section 39, Form 8853 TY97 and later, Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, will be attached to Form 1040 to report any of the following: Archer medical savings accounts (MSAs) contributions (including employer contributions). Archer MSA deduction. Distributions from Archer MSAs or Medicare Advantage MSAs. Taxable payments from Long-Term Care (LTC) contracts. Taxable accelerated death benefits from a life insurance policy. Form 8853 must be attached to the tax return if an Archer MSA or LTC amount is reported. Refer to EC 227.

# Error Record Format, Section 39

3.12.2.34.1 (01-01-2023) Error Record Format, Section 39 Section 39 consists of the following fields: Form 8853 Field Name Field Location 39MSS MSA SSN Upper right corner of page 1 3901 Total Employer MSA Contributions Amount Line 1 3902 MSA Contributions Amount Line 2 3903 MSA Limitation Amount Line 3 3904 Maintaining Employer Compensation Amount Line 4 All money fields in this section are positive entries.

# Invalid Conditions

3.12.2.34.2 (01-01-2020) Invalid Conditions Section 39 fields will display as invalid if other than numeric or blank.

# Correction Procedures

3.12.2.34.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Additional correction procedures are provided for each field in Section 39.

# Field 39MSS, MSA SSN

3.12.2.34.3.1 (01-01-2018) Field 39MSS, MSA SSN Field 39MSS is transcribed from the top right corner of page 1 of Form 8853. Field 39MSS is the social security number of the MSA account holder. For a joint return, if both spouses had separate MSAs, only the primary SSN is entered on this line. Refer to ECs 158 and 159. The validity check for the Form 8853 MSA SSN is the same as the validity check for the Form 8814 SSN. ATINs (9XX-93-XXXX) are not valid for Field 39MSS. Search the return and attachments for correct SSN and take the following action: If SSN is Then A] Found, Enter in appropriate field. B] Not Found, Enter the primary SSN.

# Field 3901, Total Employer MSA Contributions Amount

3.12.2.34.3.2 (01-01-2017) Field 3901, Total Employer MSA Contributions Amount Field 3901 is transcribed from line 1, Form 8853.

# Field 3902, MSA Contributions Amount

3.12.2.34.3.3 (01-01-2017) Field 3902, MSA Contributions Amount Field 3902 is transcribed from line 2, Form 8853.

# Field 3903, MSA Limitations Amount

3.12.2.34.3.4 (01-01-2017) Field 3903, MSA Limitations Amount Field 3903 is transcribed from line 3, Form 8853.

# Field 3904, Maintaining Employer Compensation Amount

3.12.2.34.3.5 (01-01-2017) Field 3904, Maintaining Employer Compensation Amount Field 3904 is transcribed from line 4, Form 8853.

# Sections 40, 41 and 42, Form 8814

3.12.2.35 (01-01-2019) Sections 40, 41 and 42, Form 8814 Form 8814, Parents' Election to Report Child's Interest and Dividends, is used to report the child's interest and dividends on the parents' return instead of filing a separate return for the child. This is not to be confused with Form 8615, Tax for Certain Children Who Have Unearned Income, which is used to compute the tax for the child's return. Three Forms 8814 may be processed with a return. The first Form 8814 displays as Section 40, the second as Section 41 and the third as Section 42. Refer to EC 261/262/263.

# Error Record Format, Sections 40, 41, and 42

3.12.2.35.1 (01-01-2023) Error Record Format, Sections 40, 41, and 42 Section 40, 41, and 42 consists of the following fields: Form 8814 Field Name Field Location 40CN1 / 41CN2 / 42CN3 Child's Name Control Entity Section 40CT1 / 41CT2 / 42CT3 Child's SSN Entity Section 4001A / 4101A / 4201A Taxable Interest Line 1a 4001B / 4101B / 4201B Tax-Exempt Interest Line 1b 4002A / 4102A / 4202A Ordinary Dividends Line 2a 4003 / 4103 / 4203 Capital Gains Distributions Line 3 4015 / 4115 / 4215 Tax Line 15 All money amount fields are positive entries.

# Invalid Conditions

3.12.2.35.2 (01-01-2020) Invalid Conditions Section 40/41/42 fields, except Fields 40CN1, 41CN2 and 42CN3, will display as invalid if not all numeric. The same validity checks apply to the Child's Name Control as Dependent Name Control. The validity check for the Form 8814 child's SSN is the same as the validity check for the Spouse SSN, except the child's SSN (Field 40CT1) can be an ATIN (9XX-93-XXXX).

# Correction Procedures

3.12.2.35.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 40/41/42 fields follow.

# Fields 40CN1, 41CN2, and 42CN3, Form 8814 Child's Name Control

3.12.2.35.3.1 (01-01-2020) Fields 40CN1, 41CN2, and 42CN3, Form 8814 Child's Name Control Fields 40CN1, 41CN2, and 42CN3 are transcribed from the child's name line in the entity portion of Form 8814.

# Fields 40CT1, 41CT2, and 42CT3, Form 8814 Child's SSN

3.12.2.35.3.2 (04-25-2022) Fields 40CT1, 41CT2, and 42CT3, Form 8814 Child's SSN Fields 40CT1, 41CT2, and 42CT3 are transcribed from the child's social security number section in the entity portion of Form 8814. SSPND 211 when the SSN cannot be determined.

# Fields 4001A, 4101A, and 4201A, Form 8814 Taxable Interest

3.12.2.35.3.3 (01-01-2020) Fields 4001A, 4101A, and 4201A, Form 8814 Taxable Interest Fields 4001A, 4101A, and 4201A are transcribed from line 1a, Form 8814.

# Fields 4001B, 4101B, and 4201B, Form 8814 Tax-Exempt Interest

3.12.2.35.3.4 (01-01-2020) Fields 4001B, 4101B, and 4201B, Form 8814 Tax-Exempt Interest Fields 4001B, 4101B, and 4201B are transcribed from line 1b, Form 8814.

# Fields 4002A, 4102A, and 4202A, Form 8814 Ordinary Dividends

3.12.2.35.3.5 (01-01-2020) Fields 4002A, 4102A, and 4202A, Form 8814 Ordinary Dividends Fields 4002A, 4102A, and 4202 are transcribed from line 2a, Form 8814.

# Fields 4003, 4103, and 4203, Form 8814 Capital Gains Distributions

3.12.2.35.3.6 (01-01-2020) Fields 4003, 4103, and 4203, Form 8814 Capital Gains Distributions Fields 4003, 4103, and 4203 are transcribed from line 3, Form 8814.

# Fields 4015, 4115, and 4215, Form 8814 Tax

3.12.2.35.3.7 (01-01-2020) Fields 4015, 4115, and 4215, Form 8814 Tax Fields 4015, 4115, and 4215 are transcribed from line 15, Form 8814.

# Section 43, Schedule EIC

3.12.2.36 (11-27-2020) Section 43, Schedule EIC Schedule EIC, Earned Income Credit, is used for the computation of a special credit that can be taken by certain taxpayers who have earned income. Refer to ECs 335 through 338. The following applies to taxpayers claiming EIC: Condition Action Claims EIC for a qualifying child. Must attach Schedule EIC. Wants IRS to figure EIC credit. Must complete page 1 of Schedule EIC and/or write EIC on the EIC Line. The primary (and/or secondary, if FSC 2) has an ITIN or IRSN. EIC will not be allowed. A qualifying EIC child has an ATIN, ITIN or IRSN. EIC is not allowed on that child (see note). Note: Taxpayer may still qualify with another qualifying child. The child must meet the age and relationship test. TY94 and later, taxpayers who do not have a qualifying child may be eligible for a smaller amount of EIC. Schedule EIC is not required to claim this credit and it can be claimed on Form 1040. Refer to EC 338.

# Error Record Format, Section 43

3.12.2.36.1 (01-01-2026) Error Record Format, Section 43 Section 43 consists of the following fields: Schedule EIC Field Name Field Location 43NC1 EIC Child 1 Name Control Line 1, Child 1 43IN1 EIC Child 1 Student/Disabled Indicator Line 4a and b, Child 1, yes or no box 43SS1 EIC Child 1 SSN Line 2, Child 1 43YB1 EIC Child 1 Year of Birth Line 3, Child 1 43RC1 EIC Child 1 Relationship Code Line 5, Child 1 43MO1 EIC Child 1 Number of Months Line 6, Child 1 43NC2 EIC Child 2 Name Control Line 1, Child 2 43IN2 EIC Child 2 Student/Disabled Indicator Line 4a and b, Child 2, yes or no box 43SS2 EIC Child 2 SSN Line 2, Child 2 43YB2 EIC Child 2 Year of Birth Line 3, Child 2 43RC2 EIC Child 2 Relationship Code Line 5, Child 2 43MO2 EIC Child 2 Number of Months Line 6, Child 2 43NC3 EIC Child 3 Name Control Line 1, Child 3 43IN3 EIC Child 3 Student/Disabled Indicator Line 4a and b, Child 3, yes or no box 43SS3 EIC Child 3 SSN Line 2, Child 3 43YB3 EIC Child 3 Year of Birth Line 3, Child 3 43RC3 EIC Child 3 Relationship Code Line 5, Child 3 43MO3 EIC Child 3 Number of Months Line 6, Child 3 43ESR EIC Child SSN Not Required ERS input only 43A1V EIC Child 1 Age Verified ERS input only 43A2V EIC Child 2 Age Verified ERS input only 43A3V EIC Child 3 Age Verified ERS input only

# Invalid Conditions

3.12.2.36.2 (01-01-2020) Invalid Conditions Section 43 fields will display as invalid if not all numeric, except EIC Name Control, Fields 43NC1, 43NC2, and 43NC3. Additional invalid conditions are given for specific fields in Section 43.

# Correction Procedures

3.12.2.36.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Additional correction procedures are provided for specific fields in Section 43.

# Fields 43NC1, 43NC2, and 43NC3, EIC Name Control Child 1, 2, and 3

3.12.2.36.3.1 (01-01-2017) Fields 43NC1, 43NC2, and 43NC3, EIC Name Control Child 1, 2, and 3 Fields 43NC1, 43NC2, and 43NC3 consist of the first four letters of the child's last name. Search the return and attachments for the name control (e.g., dependents, Form 2441). The EIC Name Control will be invalid if either of the following exist: The first position is not an alpha. The second, third, or fourth position is not an alphabetical character, hyphen, or blank. Edit the name control according to the table below. If Name Control is And Then A] Not found, Enter the primary name control in Field 43NC1, 43NC2, or 43NC3. B] Found, Has fewer than four characters, Enter the name control in Field 43NC1, 43NC2, or 43NC3 and blank the remaining positions. C] Found, Has four characters, Enter the name control in Field 43NC1, 43NC2, or 43NC3.

# Fields 43IN1, 43IN2, and 43IN3, EIC Student or Disabled Indicator Child 1, 2, and 3

3.12.2.36.3.2 (01-01-2019) Fields 43IN1, 43IN2, and 43IN3, EIC Student or Disabled Indicator Child 1, 2, and 3 Fields 43IN1, 43IN2, and 43IN3 will display as invalid if other than 0 (zero), 1 or 2. Determine the correct code according to the table. If the taxpayer Then A] checks no box on line 4a and 4b, Enter 0 (zero). B] checks the Yes box in line 4a, Enter 1 in Field 43IN1, 43IN2, or 43IN3 according to the taxpayer's entry. C] checks the Yes box in line 4b alone or 4a and 4b both, Enter 2 in Field 43IN1, 43IN2, or 43IN3 according to the taxpayer's entry.

# Fields 43SS1, 43SS2, and 43SS3, EIC SSN Child 1, 2, and 3

3.12.2.36.3.3 (01-01-2020) Fields 43SS1, 43SS2, and 43SS3, EIC SSN Child 1, 2, and 3 Fields 43SS1, 43SS2, and 43SS3 are transcribed from line 2. These fields will display as invalid if entries are other than nine numerics or blank. Search the return and attachments for a correct SSN. If an SSN is found, enter in the appropriate field.

# Fields 43YB1, 43YB2, and 43YB3, EIC Year of Birth Child 1, 2, and 3

3.12.2.36.3.4 (01-01-2017) Fields 43YB1, 43YB2, and 43YB3, EIC Year of Birth Child 1, 2, and 3 Fields 43YB1, 43YB2, and 43YB3 are transcribed from line 3. An entry must be present in Field 43YB1 to figure EIC. An entry in Field 43YB2 will allow the computation of the basic credit for two children. An entry in Field 43YB3 will allow the computation of the basic credit for three children. Take the following action to correct year of birth fields: If the Year of Birth is And Then A] Present or not present, Child does not meet the EIC age, number of months in home, or relationship test, Delete the data in the EIC Child's field, as appropriate. Note: Move the data from EIC Child 2/3 fields into EIC Child 1 fields. This is necessary because Field 43YB1 must have an entry if Section 43 is present or a field error will occur in Field 43YB1. B] Present, Meets EIC test for age, number of months in home, and relationship, Enter year of birth in appropriate field. C] Not present, The child's SSN is present, Enter 1970 for the year of birth.

# Fields 43RC1, 43RC2, and 43RC3, EIC Child 1, 2, and 3 Relationship Code

3.12.2.36.3.5 (01-01-2026) Fields 43RC1, 43RC2, and 43RC3, EIC Child 1, 2, and 3 Relationship Code Fields 43RC1, 43RC2, and 43RC3 are transcribed from line 5 for Child 1, 2, and 3. These fields are one position long and numeric only. The valid values are 0 through 8. All other values are invalid. Valid values and their meaning: 0: No relationship is indicated or cannot be determined. 1: daughter or son 2: stepchild 3: foster child 4: grandchild 5: niece, nephew, or sibling's child 6: brother, sister, or sibling 7: half brother, half sister, or half sibling 8: stepbrother, stepsister, or step sibling

# Fields 43MO1, 43MO2, and 43MO3, EIC Child 1, 2, and 3 Number of Months

3.12.2.36.3.6 (01-01-2019) Fields 43MO1, 43MO2, and 43MO3, EIC Child 1, 2, and 3 Number of Months Fields 43MO1, 43MO2, and 43MO3 are transcribed from line 6 for Child 1, 2, and 3. These fields are two positions long and alphanumeric. The valid values are "KC" , and 01 through 12. Taxpayers may note partial months: 6 1/2, 6.5, 6+, "more than 6," for example. Round those numbers down. The numbers in the example would all become 06 in Field 43MO1, 43MO2, or 43MO3. Note: If taxpayers note the phrase "kidnapped child" or similar statement on line 6 for Child 1, 2 and 3, enter the letters KC in Field 43MO1, 43MO2, or 43MO3 to indicate the kidnapped child. If a single digit displays in the field and the number of months on Schedule EIC is less than ten, enter 0 (zero) in position one of the field (e.g., change 6 to 06). If the taxpayer's number is greater than 12, enter 12 in the field.

# Field 43ESR, EIC Child SSNs Not Required

3.12.2.36.3.7 (01-01-2017) Field 43ESR, EIC Child SSNs Not Required Field 43ESR is a one-position field and is for ERS input only. The only valid characters in this field are 0 (zero), 1, 2, 3, 4, 5, 6, or 7. All others are invalid. Enter I in Field 01RPC and the appropriate code from the table below when the SSN of any qualifying child for the EIC is missing because the child was born in the tax period of the tax return and died in the same or consecutive tax period. A copy of the birth certificate, death certificate, or hospital record must support the assertion. If Then A] EIC Child 1 died, Enter 1 in Field 43ESR. B] EIC Child 2 died, Enter 2 in Field 43ESR. C] EIC Child 3 died, Enter 3 in Field 43ESR. D] EIC Child 1 and 2 died, Enter 4 in Field 43ESR. E] EIC Child 1 and 3 died, Enter 5 in Field 43ESR. F] EIC Child 2 and 3 died, Enter 6 in Field 43ESR. G] EIC Child 1, 2, and 3 died, Enter 7 in Field 43ESR.

# Fields 43A1V, 43A2V, and 43A3V, EIC Age Verified Child 1, 2, and 3

3.12.2.36.3.8 (04-20-2022) Fields 43A1V, 43A2V, and 43A3V, EIC Age Verified Child 1, 2, and 3 Fields 43A1V, 43A2V, and 43A3V are three-digit fields to enter the age of a child and are for ERS input only when the computer cannot determine the child's age. To calculate the age of the child when the computer cannot, subtract the year of birth in INOLE from the tax year of the return and enter the difference in the appropriate field. Note: The computer will not recognize a child who was born in and died in the tax period when it computes the EIC. If the required documents in support of the live birth of the child are present and an entry is required in Field 43ESR, then GTSEC 43 and enter 001 in Field 43A1V, 43A2V, or 43A3V. Refer to EC 337, IRM 3.12.3.28.14.4, TIN Requirements for EIC, for the necessary documents.

# Sections 44 and 45, Schedule H

3.12.2.37 (01-01-2026) Sections 44 and 45, Schedule H Schedule H, Household Employment Taxes, is used to report federal employment taxes on wages paid to household employees. Refer to ECs 161 through 187 and 322 through 327. Federal employment taxes are: Social Security/Medicare Tax Federal Income Tax Withheld Federal Unemployment Tax (FUTA) The maximum amount of wages subject to social security tax is as follows: TY25: $176,100 TY24: $168,600 TY23: $160,200 TY22: $147,000 TY21: $142,800 TY20: $137,700 TY19: $132,900 TY18: $128,400 TY17: $127,200 TY16: $118,500 Note: This maximum amount of wages applies separately to each employee. Therefore, for TY25 if the employer paid any household employee cash wages of more than $176,100, the employer reports only the first $176,100 of cash wages on line 1 and total cash wages on line 3. It is possible for the employer to be liable for only page 1 social security, Medicare and federal income taxes or only page 2 (FUTA) of Schedule H tax. Two Schedules H may be processed with a return. Section 44 is for the primary taxpayer. Section 45 is for the secondary taxpayer. Note: For the remainder of this text, Schedule H will be referred to as Section 44; however, all correction procedures will apply equally to Sections 44 and 45. When taxpayers are not required to file Form 1040, but are liable for Schedule H taxes, they are instructed to file the Schedule H by itself (loose) by April 15th. Code and Edit is instructed to prepare a "dummy" Form 1040 for any "loose" Schedule H. Verify the entries for RPC Y, Household Employment Tax, and Balance Due/Refund. Correspond for missing signature.

# Error Record Format, Sections 44 and 45

3.12.2.37.1 (01-01-2025) Error Record Format, Sections 44 and 45 Money amount fields in Section 44 are positive. Section 44 consists of the following fields for Schedule H: Schedule H Field Name Field Location 44NC Schedule H Name Control Header of Schedule H 44SSN Schedule H SSN Header of Schedule H 44EIN Schedule H EIN Header of Schedule H 4401 Total Social Security Wages Line 1 4403 Total Medicare Wages Line 3 4405 Schedule H Total Cash Wages/Additional Medicare Tax Amount Line 5 4406 Schedule H Additional Medicare Tax Amount Line 6 4407 Federal Withholding Line 7 4408 Total Social Security/ Medicare/Federal Taxes Line 8 44NFV Total Non-FUTA Tax Verified ERS input only 44FIN FUTA Indicator Coded under Boxes, lines 10, 11, and 12 44SC1 FUTA State Code 1 Line 13, Section A or line 17(a), Section B 44SC2 FUTA State Code 2 Line 17(a) 44SC3 FUTA State Code 3 ERS input only 44SC4 FUTA State Code 4 ERS input only 44SC5 FUTA State Code 5 ERS input only 44FCP FUTA Contributions Paid Line 14, Section A or line 18(h), Section B. 44TFW Total FUTA Wages Line 15, Section A or line 20, Section B 44FTX FUTA Tax Line 16, Section A, or line 24 Section B 44FTV FUTA Tax Verified ERS input only 44TTC FUTA Total Tentative Credit Line 19, Section B 44ASI Additional States Indicator Written in the lower left of page 2 44TCR Total Credit Reduction Line 23, Section B 44CW1 Credit Reduction Wages 1 ERS input only 44CW2 Credit Reduction Wages 2 ERS input only 44CW3 Credit Reduction Wages 3 ERS input only 44CW4 Credit Reduction Wages 4 ERS input only 44CW5 Credit Reduction Wages 5 ERS input only All money amount fields in Section 44 are positive entries.

# Invalid Conditions

3.12.2.37.2 (01-01-2017) Invalid Conditions Invalid conditions are given for specific fields in Section 44.

# Correction Procedures

3.12.2.37.3 (01-01-2026) Correction Procedures Correct coding and transcription and misplaced entries in displayed fields. When taxpayers indicate they have already filed a Form 940 for their household employees, delete the Part II information and adjust the fields in Sections 03 and 05 to "back out" the FUTA amount. Do not assign a TPNC for this issue. Note: Some taxpayers may erroneously report FICA and/or FUTA twice to the IRS. This "double taxation" issue usually exists for FUTA and occurs when the taxpayer has already filed Form 940 for household employees, but also files Schedule H reporting the same FUTA information. Usually, this condition can be identified by "write-in" notations on Schedule H or in the "Other Taxes" or "Payments" areas of Schedules or Form 1040. Combine data from page 2, Part II, and enter in Section B when the primary or secondary taxpayer has filed more than one Schedule H, and Code and Edit did not combine. When Schedule H is attached to a Fiscal Year Return with a tax period ending 199511 or earlier, refer to EC 161.

# Field 44NC, Schedule H Name Control

3.12.2.37.3.1 (01-01-2017) Field 44NC, Schedule H Name Control Field 44NC consists of the first four characters of the employer's last name. The field will be invalid if any of the following exist: Schedule H Name Control is blank. The first position of the Schedule H Name Control is blank or is not alpha and not numeric. The second, third, or fourth positions are not alpha, numeric, ampersand, hyphen, or blank. Any character follows a blank. Enter the primary name control from the front of the return in Field 44NC when the name control is missing or illegible on Schedule H.

# Field 44SSN, Schedule H SSN

3.12.2.37.3.2 (04-25-2022) Field 44SSN, Schedule H SSN Field 44SSN will be invalid if fewer than nine numeric characters are present. When the Schedule H SSN is missing, illegible or other than nine digits, enter the SSN in Field 44SSN using one of the following: Page 1 of the tax return. Forms W-2, schedules, or attachments. Research of CC NAMES, NAMEI, ENMOD and/or RTVUE. SSPND 211 to correspond for missing SSN when not found.

# Field 44EIN, Schedule H EIN

3.12.2.37.3.3 (01-01-2018) Field 44EIN, Schedule H EIN Field 44EIN will be invalid if any of the following exist: The Schedule H EIN is not all numeric. The EIN is blank, all zeros, or all nines. The first two positions are not contained in the following EIN Prefix Codes: 01-06, 10-16, 20-27, 30-48, 50-68, 71-77, 80-88, 90-95, and 99. Search the return and/or attachments for the correct EIN when missing, illegible, or other than nine digits. If not found or if "Applied For" is noted, research CCs NAMEB, NAMEE, INOLE, and/or RTVUE. Take the following action to correct errors in Field 44EIN: If the EIN is Then A] Found, Verify EIN using CC INOLET. If valid, enter in Field 44EIN. B] Not found, SSPND 320 to Entity (see note). Note: On a joint return, if both of the following conditions exist, enter established EIN and, if necessary, GTSEC 44/45 and adjust the Schedule H Name Control and Schedule H SSN: 1. NAMEB/NAMEE/INOLE indicates the spouse, not listed on Schedule H, is the established "EIN owner" . 2. The taxpayer listed on Schedule H does not have an established EIN.

# Field 4401, Total Social Security Wages

3.12.2.37.3.4 (01-01-2026) Field 4401, Total Social Security Wages Field 4401 is transcribed from line 1, Schedule H (TY23 - TY20, line 1a). Social security tax is figured at a rate of 12.4 percent for TY13 and later. Delete the entry in Field 4401 when line 1 is less than $2,800 (TY24, $2,700; TY23, $2,600; TY22, $2,400; TY21, $2,300; TY20, $2,200; TY19 - TY18, $2,100; $2,000 for TY17 - TY16; $1,900 TY15 - TY14). Refer to EC 162.

# Field 4403, Total Medicare Wages

3.12.2.37.3.5 (01-01-2026) Field 4403, Total Medicare Wages Field 4403 is transcribed from line 3, Schedule H. Medicare tax is figured at a rate of 2.9 percent. Delete the entry in Field 4403 when line 3 is less than $2,800 (TY24, $2,700; TY23, $2,600; TY22, $2,400; TY21, $2,300; TY20, $2,200; TY19 - TY18, $2,100; $2,000 for TY17 - TY16; $1,900 for TY15 - TY14). Refer to EC 162.

# Field 4405, Schedule H Total Cash Wages Additional Medicare Tax

3.12.2.37.3.6 (01-01-2026) Field 4405, Schedule H Total Cash Wages Additional Medicare Tax Field 4405 is transcribed from line 5, Schedule H. Additional Medicare tax is figured at the rate of 0.9 percent. Delete the entry in Field 4405 when line 5 is less than $2,800 (TY24, $2,700; TY23, $2,600; TY22, $2,300; TY21, $2,300; TY20, $2,200; TY19 - TY18, $2,100; $2,000 for TY17 - TY16; $1,900 for TY15 - TY14).

# Field 4406, Schedule H Additional Medicare Tax

3.12.2.37.3.7 (01-01-2017) Field 4406, Schedule H Additional Medicare Tax Field 4406 is transcribed from line 6, Schedule H.

# Field 4407, Federal Withholding

3.12.2.37.3.8 (01-01-2017) Field 4407, Federal Withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 4408, Total Social Security/Medicare/Income Taxes

3.12.2.37.3.9 (01-01-2023) Field 4408, Total Social Security/Medicare/Income Taxes Field 4408 is transcribed from line 8, Schedule H (TY23 - TY22, line 8d). TY24 and later, the amount for line 8 is the sum of lines 2, 4, 6, and 7. TY23 - TY21, the amount for line 8d is derived by subtracting line 8b and 8c from line 8a. TY20, the amount for line 8c is derived by subtracting line 8b from line 8a. For TY19 - TY13, the amount for line 8 is the sum of lines 2, 4, 6, and 7. Refer to EC 322.

# Field 44NFV, Total Non-FUTA Tax Verified

3.12.2.37.3.10 (01-01-2017) Field 44NFV, Total Non-FUTA Tax Verified Field 44NFV is for ERS input only and is used when the computer cannot correctly compute Total SS/Medicare/Income Taxes.

# Field 44FIN, FUTA Indicator

3.12.2.37.3.11 (01-01-2020) Field 44FIN, FUTA Indicator The coding of the FUTA Indicator Field indicates whether the employer is a single-state filer who timely paid state unemployment contributions that were also fully taxable for that particular state. Field 44FIN will be invalid if not blank, 1 or 2. Use the following table to determine the correct code: If Then A] The taxpayer answered "Yes" to all boxes on lines 10, 11 and 12 for TY13 and later. Leave Field 44FIN blank or delete the entry in Field 44FIN. B] The taxpayer answered "No" to any box on line 10, 11, or 12 for TY13 and later (see exception), Enter 1 in Field 44FIN. C] Is from a single-state Credit Reduction Filer (see Exhibit 3.12.2-8), Enter 2 in Field 44FIN. (ERS input only, not valid for TY08 - TY06) Note: If there are no Credit Reduction States on Schedule H, do not enter Code 2. Exception: Do not code if Part II has no money entries (e.g., one of the answers for lines 10 through 12 for TY13 and later was "No" , but the taxpayer left the remainder of Part II blank). Refer to Sections A and B, Part II, Schedule H when the conditions in the preceding (3) are not met. Use the following table to code Field 44FIN: If Part II of Schedule H Then A] Has entries in only Section A, Leave Field 44FIN blank or delete the entry in Field 44FIN. B] Has entries in only Section B, Enter 1 in Field 44FIN. C] Has entries in both Sections A and B, Enter 1 in Field 44FIN. Correct the entries in Fields 44SC1, 44FCP, 44TFW, and 44FTX to the amounts in Section B, if different than Section A. D] Neither Section A or B has entries, Leave Field 44FIN blank or delete the entry in Field 44FIN.

# Fields 44SC1 and 44SC2, FUTA State Code 1 and 2

3.12.2.37.3.12 (01-01-2024) Fields 44SC1 and 44SC2, FUTA State Code 1 and 2 Fields 44SC1 and 44SC2 contain the two-digit abbreviation for the name of the states [including the District of Columbia (DC), Puerto Rico (PR), and the U.S. Virgin Islands (VI)] to which the employer has to pay unemployment contributions. The employer is instructed to complete either Section A or B, not both. For TY13 and later, the FUTA State Code must be present when any of the following apply: An entry is present on line 15 or 16, Section A. Monetary entries are present below line 19, Section B. For TY13 and later, Code and Edit will "X" all state codes when: More than one state is present on line 13. More than two states are present on line 17, on the return attachments, or "see attached" is noted and there are more than two state codes to be edited. These fields will be invalid if they are present and not one of the existing 50 state codes (plus DC, PR, or VI). Note: State Code value of ZZ is also valid. It is for ERS input only and is used when the FUTA Section of Schedule H is nontaxable and the state involved is a Credit Reduction State (not valid TY08 - TY06). For TY13 and later, enter the FUTA State Code Fields as follows: Enter the two-alpha character state code if present on line 13 or 17(a) in Field 44SC1. Enter the proper two-alpha character state code if the state name was spelled out and not abbreviated. Enter the state code that corresponds with the taxpayer's address listed in the Entity portion of the return when there are entries in Sections A and/or B and there are no state codes or state names present. If more than one state is present on line 13, enter the first code listed. If more than two states are present on line 17, enter up to the first five codes in Fields 44SC1 through 44SC5. TY09 - TY07, enter the same state code in Fields 44SC1 and 44SC2 when there are two state reporting numbers present and only one state code is present. Note: For TY09 and before, Code and Edit will "X" the duplicate state code that does not have a corresponding state reporting number when multiple listings of the same state code are present. Below is a list with the abbreviation for each state, the District of Columbia, Puerto Rico, and the Virgin Islands. State Codes State Codes State Codes AL: Alabama AK: Alaska AZ: Arizona AR: Arkansas CA: California CO: Colorado CT: Connecticut DC: District of Columbia DE: Delaware FL: Florida GA: Georgia HI: Hawaii ID: Idaho IL: Illinois IN: Indiana IA: Iowa KS: Kansas KY: Kentucky LA: Louisiana ME: Maine MD: Maryland MA: Massachusetts MI: Michigan MN: Minnesota MS: Mississippi MO: Missouri MT: Montana NE: Nebraska NV: Nevada NH: New Hampshire NJ: New Jersey NM: New Mexico NY: New York NC: North Carolina ND: North Dakota OH: Ohio OK: Oklahoma OR: Oregon PA: Pennsylvania PR: Puerto Rico RI: Rhode Island SC: South Carolina SD: South Dakota TN: Tennessee TX: Texas UT: Utah VT: Vermont VA: Virginia VI: Virgin Islands WA: Washington WV: West Virginia WI: Wisconsin WY: Wyoming

# Fields 44SC3 through 44SC5, FUTA State Code 3 through 5

3.12.2.37.3.13 (01-01-2018) Fields 44SC3 through 44SC5, FUTA State Code 3 through 5 Fields 44SC3, 44SC4, and 44SC5 are ERS input only fields for Section B. For TY13 and later, Code and Edit will "X" all state codes when more than two states are present on line 17(a), on the return attachments, or "see attached" is noted and there are more than two state codes to be edited. Note: This action will force the return to ERS for input of all state codes.

# Field 44FCP, FUTA Contributions Paid

3.12.2.37.3.14 (01-01-2017) Field 44FCP, FUTA Contributions Paid Field 44FCP is transcribed from line 14 or 18(h) for TY13 and later. It represents the employer's total contributions paid to the state(s) unemployment fund for the year. Blank the field when the taxpayer has entered either of the following notations: "0% rate" "zero percent rate" Do not ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

# Field 44TFW, Total FUTA Wages

3.12.2.37.3.15 (01-01-2017) Field 44TFW, Total FUTA Wages Field 44TFW is transcribed from line 15 or 20 for TY13 and later. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 44FTX, FUTA Tax

3.12.2.37.3.16 (01-01-2017) Field 44FTX, FUTA Tax Field 44FTX is transcribed from line 16 or 24 for TY13 and later. Refer to EC 324.

# Field 44FTV, FUTA Tax Verified

3.12.2.37.3.17 (01-01-2017) Field 44FTV, FUTA Tax Verified Field 44FTV is for ERS input only and is used when the computer cannot correctly compute FUTA Tax.

# Field 44TTC, FUTA Total Tentative Credit

3.12.2.37.3.18 (01-01-2018) Field 44TTC, FUTA Total Tentative Credit Field 44TTC is transcribed from line 19 for TY13 and later. Refer to EC 176. Use the following table to correct Field 44TTC: If Then A] Line 19 is blank, Compute by adding lines 18g and 18h and enter the result in Field 44TTC. B] Lines 18g and 18h are blank, Compute by adding lines 17g and 17h and enter result in Field 44TTC. C] Lines 17g and 17h are blank, Enter 1 in Field 44TTC. Note: Column (g) can be determined if columns (b) and (d) have entries. To arrive at line 19, the employer must complete all the applicable columns on line 17.

# Field 44ASI, Additional States Indicator

3.12.2.37.3.19 (01-04-2021) Field 44ASI, Additional States Indicator Field 44ASI is transcribed from editing at the lower left of page 2, Schedule H. The valid entries are blank or 1. Refer to EC 187. Enter 1 in Field 44ASI when more than five state codes are present. Note: The FUTA certification program uses this indicator.

# Field 44TCR, Total Credit Reduction

3.12.2.37.3.20 (01-01-2017) Field 44TCR, Total Credit Reduction Field 44TCR is transcribed from line 23, Schedule H. Refer to Exhibit 3.12.2-8 for a complete list of credit-reduction states and credit-reduction territory.

# Fields 44CW1 to 44CW5, Credit-Reduction Wages 1 to 5

3.12.2.37.3.21 (01-01-2020) Fields 44CW1 to 44CW5, Credit-Reduction Wages 1 to 5 Fields 44CW1 to 44CW5 are for ERS input only. The amount for these fields is on line 17, column (b).

# Section 47, Schedule 8812,

3.12.2.38 (01-01-2024) Section 47, Schedule 8812, Schedule 8812, Credits for Qualifying Children and Other Dependents, is used to claim Additional Child Tax Credit or when the taxpayer qualifies for the refundable portion of Child Tax Credit. In TY21, it is also used by the taxpayer to reconcile any Advance Child Tax Credit received, and repay any overpayment. Refer to ECs 287, 289, 299, and 344. For TY21, tax forms refer to the refundable portion as the Refundable Child Tax Credit. For TY18 and later, taxpayers can claim additional child tax credit only for qualifying children with a valid social security number. For TY17 - TY12, Schedule 8812, Child Tax Credit, Part I is used by taxpayers who take the Child Tax or Additional Child Tax Credit for qualifying children with an ITIN. In Part I, taxpayers declare whether their children meet the physical presence test for the credits. For TY01 and later, the Additional Child Tax Credit can be claimed by taxpayers with one or more qualifying children for the Child Tax Credit.

# Error Record Format, Section 47

3.12.2.38.1 (01-01-2026) Error Record Format, Section 47 If other than blank, entries in Section 47 fields must be numeric and positive. Section 47 consists of the following fields from Schedule 8812: Schedule 8812 Field Name Field Location 47EI Schedule 8812 Earned Income Line 18a 47NCP Non-Taxable Combat Pay Line 18b 47SSM Total Social Security and Medicare Taxes Line 21

# Invalid Conditions

3.12.2.38.2 (01-01-2020) Invalid Conditions Section 47 fields will display as invalid if not numeric.

# Correction Procedures

3.12.2.38.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. TY12 and later, if the old Form 8812 is present, correspond for Schedule 8812. Schedule 8812 instructions can be found in EC 299 and 344.

# Field 47EI, Schedule 8812 Earned Income

3.12.2.38.3.1 (01-01-2023) Field 47EI, Schedule 8812 Earned Income Field 47EI is transcribed from line 18a (TY21, line 18a; TY20 - TY19, line 6a) of Schedule 8812.

# Fields 47NCP, Nontaxable Combat Pay

3.12.2.38.3.2 (01-01-2019) Fields 47NCP, Nontaxable Combat Pay Field 47NCP is transcribed from line 18b of Schedule 8812 (TY20 and prior, line 6b).

# Fields 47SSM, Total Social Security and Medicare Taxes

3.12.2.38.3.3 (01-01-2019) Fields 47SSM, Total Social Security and Medicare Taxes Field 47SSM is transcribed from line 21 of Schedule 8812 (TY20 and prior, line 9). Take the following actions when Schedule 8812 is attached and line 21 is blank or there is an indication that the taxpayer used amounts other than social security or Medicare taxes: Total the social security and Medicare taxes using the attached Forms W-2 and other relevant attachments. Enter the amount in Field 47SSM. Note: If Schedule 8812 is not attached, never enter the amount for the total of social security and Medicare taxes from the attached Forms W-2.

# Sections 48 and 49, Form 8606

3.12.2.39 (01-01-2017) Sections 48 and 49, Form 8606 Form 8606, Nondeductible IRAs, is used to report various types of IRA-related information. Only identifying information and entries in Part II will be transcribed for TY99 and later. When a taxpayer has converted a traditional IRA, the taxpayer must claim the amount converted as taxable income. Two Forms 8606 may be processed with a return. The first Form 8606 displays as Section 48 and the second Form 8606 displays as Section 49. One is filed for the primary taxpayer and one for the secondary taxpayer. Note: For the remainder of this text, Form 8606 will be referred to as Section 48; however, all correction procedures will apply equally to Sections 48 and 49.

# Error Record Format, Sections 48 and 49

3.12.2.39.1 (01-01-2023) Error Record Format, Sections 48 and 49 Section 48 consists of the following fields from Form 8606: Form 8606 Field Name Field Location 48SI Spouse Indicator Coded in the top left of form 4807 Traditional, SEP, and SIMPLE IRA Distributions Line 7 4815C Taxable Nondeductible Contribution Amount Line 15c 4816 Total IRA Conversion Amount Line 16 4817 IRA Basis Line 17 4818 Taxable IRA Conversion Amount Line 18 4822 Roth IRA Contributions Line 22 Money amount fields in Section 48 and/or 49 must be positive.

# Invalid Conditions

3.12.2.39.2 (01-01-2020) Invalid Conditions Fields in Section 48 will display as invalid if not all numeric.

# Correction Procedures

3.12.2.39.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures are provided for specific fields.

# Field 48SI, Form 8606 Spouse Indicator

3.12.2.39.3.1 (04-25-2022) Field 48SI, Form 8606 Spouse Indicator Field 48SI is a one-digit numeric field that will display as invalid if not 0 (zero), 1 or 2. Use the following table to correct Field 48SI: If the return is for And Form 8606 is for the Then A] FSC other than 2, Enter 0 (zero) in Field 48SI. B] FSC is 2, Primary taxpayer, Enter 1 in Field 48SI. C] FSC is 2, Secondary taxpayer, Enter 2 in Field 48SI. When you can't determine from the return or attachments which taxpayer is filing Form 8606, SSPND 211.

# Field 4807, Traditional, SEP, and SIMPLE IRA Distributions

3.12.2.39.3.2 (01-03-2017) Field 4807, Traditional, SEP, and SIMPLE IRA Distributions Field 4807 is transcribed from Part I line 7 of Form 8606. The field can contain up to 11 numeric characters as dollars and cents.

# Field 4815C, Taxable Nondeductible Contribution

3.12.2.39.3.3 (01-19-2018) Field 4815C, Taxable Nondeductible Contribution Field 4815C is transcribed from line 15c of Part I, Form 8606. This field can contain up to 11 numeric characters as dollars and cents.

# Fields 4816 through 4818

3.12.2.39.3.4 (01-01-2017) Fields 4816 through 4818 Fields 4816 through 4818 are transcribed from their respective lines of Part II, Form 8606. Field 4816, Total IRA Conversion Amount, from line 16 Field 4817, IRA Basis, from line 17 Field 4818, Taxable IRA Conversion Amount, from line 18 These fields can contain up to 11 numeric characters as dollars and cents. Attempt to determine the taxpayer's intent from Part II, Form 8606, when these fields display as invalid because of non-numeric data. Back into amounts if necessary. Consult the lead tax examiner if you require assistance. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 4822, Roth IRA Contributions

3.12.2.39.3.5 (01-01-2017) Field 4822, Roth IRA Contributions Field 4822 is transcribed from line 22 of Part III, Form 8606. This field can contain up to 11 numeric characters as dollars and cents.

# Section 50, Form 8863

3.12.2.40 (01-01-2017) Section 50, Form 8863 Form 8863, Education Credits, is used to figure and claim a credit for taxpayers that pay for a student enrolled in a school of higher education. Education Credits are the refundable "American Opportunity Credit" and the nonrefundable "Lifetime Learning Credit" . Refer to EC 284. Taxpayers must attach Form 8863 to claim the credit for students eligible for the education credits.

# Error Record Format, Section 50

3.12.2.40.1 (01-01-2023) Error Record Format, Section 50 Section 50 consists of the following fields from Form 8863: Form 8863 Field Name Field Location 5001 Tentative American Opportunity Credit Amount Line 1 5010 Lifetime Learning Credit Qualified Expenses Amount Line 10 50NC1 Education Credit Student 1 Name Control Line 20 50SS1 Education Credit Student 1 SSN Line 21 50FN1 Education Institution Federal ID Number Student 1 Line 22a (4) 50SN1 Second Education Institution Federal ID Number Student 1 Line 22b (4) 50PY1 Prior-Year Hope Scholarship or AOT Credit Claimed Student 1 Code Line 23 50AE1 Academic Eligibility Student 1 Code Line 24 50PS1 Post-Secondary Education Student 1 Code Line 25 50FE1 Felony Conviction Student 1 Code Line 26 50NC2 Education Credit Student 2 Name Control Line 20 of the second page 2 50SS2 Education Credit Student 2 SSN Line 21 of the second page 2 50FN2 Education Institution Federal ID Number Student 2 Line 22a of the second page 2 50SN2 Second Education Institution Federal ID Number Student 2 Line 22b of the second page 2 50PY2 Prior-Year Hope Scholarship or AOT Credit Claimed Student 2 Code Line 23 of the second page 2 50AE2 Academic Eligibility Student 2 Code Line 24 of the second page 2 50PS2 Post-Secondary Education Student 2 Code Line 25 of the second page 2 50FE2 Felony Conviction Student 2 Code Line 26 of the second page 2 50NC3 Education Credit Student 3 Name Control Line 20 of the third page 2 50SS3 Education Credit Student 3 SSN Line 21 of the third page 2 50FN3 Education Institution Federal ID Number Student 3 Line 22a of the third page 2 50SN3 Second Education Institution Federal ID Number Student 3 Line 22b of the third page 2 50PY3 Prior-Year Hope Scholarship or AOT Credit Claimed Student 3 Code Line 23 of the third page 2 50AE3 Academic Eligibility Student 3 Code Line 24 of the third page 2 50PS3 Post-Secondary Education Student 3 Code Line 25 of the third page 2 50FE3 Felony Conviction Student 3 Code Line 26 of the third page 2 50ASV American Opportunity Eligible Student Verified Number (ERS input only) ERS input only All money fields in this section must be positive and cannot exceed eleven characters in length. Fields 50NC1, 50NC2, and 50NC3 are alpha only.

# Invalid Conditions

3.12.2.40.2 (04-29-2019) Invalid Conditions Fields in Section 50 will display as invalid if other than numeric except Fields 50NC1, 50NC2 and 50NC3, student name control. In name control Fields 50NC1, 50NC2 and 50NC3, alphanumeric values are valid.

# Correction Procedures

3.12.2.40.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. For TY12 and later, if Form 8863 is not present when education credit is claimed, correspond for Form 8863. Additional correction procedures for Section 50 fields follow.

# Field 5001, Tentative American Opportunity Credit Amount

3.12.2.40.3.1 (01-01-2017) Field 5001, Tentative American Opportunity Credit Amount Field 5001 is transcribed from line 1.

# Field 5010, Lifetime Learning Credit Qualified Expenses Amount

3.12.2.40.3.2 (01-01-2017) Field 5010, Lifetime Learning Credit Qualified Expenses Amount Field 5010 is transcribed from line 10.

# Fields 50NC1, 50NC2, and 50NC3, Education Credit Student 1, 2, and 3 Name Control

3.12.2.40.3.3 (01-01-2017) Fields 50NC1, 50NC2, and 50NC3, Education Credit Student 1, 2, and 3 Name Control Fields 50NC1, 50NC2, and 50NC3 are transcribed from line 20 as the first four characters of the student's last name. Each field is four spaces long, and only alpha characters are valid.

# Fields 50SS1, 50SS2, and 50SS3, Education Credit Student 1, 2, and 3 SSN

3.12.2.40.3.4 (01-01-2017) Fields 50SS1, 50SS2, and 50SS3, Education Credit Student 1, 2, and 3 SSN Fields 50SS1, 50SS2, and 50SS3 are transcribed from line 21. Each field is nine spaces long, and only positive numeric values are valid.

# Fields 50FN1, 50FN2, and 50FN3, Education Institution Federal ID Number Student 1, 2, and 3

3.12.2.40.3.5 (01-22-2018) Fields 50FN1, 50FN2, and 50FN3, Education Institution Federal ID Number Student 1, 2, and 3 Fields 50FN1, 50FN2, and 50FN3 are transcribed from the first column at line 22(4) of Form 8863. Each field is nine spaces long, and only positive numeric values are valid with a default of all zeros. Exception: If all nine numbers are the same or equal to "123456789" , the number is invalid. If a field error generates and transcription is correct, overlay EIN with nine zeros to delete the number. If Form 1098-T is present, verify taxpayer entered the number correctly on Form 8863. If incorrect, transcribe the number from Form 1098-T. If the taxpayer provided an invalid EIN or fewer than nine digits on line 4, Form 8863, overlay EIN with nine zeros to delete the number.

# Fields 50SN1, 50SN2, and 50SN3, Second Education Institution Federal ID Number Student 1, 2, and 3

3.12.2.40.3.6 (01-22-2018) Fields 50SN1, 50SN2, and 50SN3, Second Education Institution Federal ID Number Student 1, 2, and 3 Fields 50SN1, 50SN2, and 50SN3 are transcribed from the second column at line 22(4) of Form 8863. Each field is nine spaces long, and only positive numeric values are valid with a default of all zeros. Exception: If all nine numbers are the same or equal to "123456789" , the number is invalid. If a field error generates and transcription is correct, overlay EIN with nine zeros to delete the number. If Form 1098-T is present, verify taxpayer entered the number correctly on Form 8863. If incorrect, transcribe the number from Form 1098-T. If the taxpayer provided an invalid EIN or fewer than nine digits on line 4, Form 8863, overlay EIN with nine zeros to delete the number.

# Fields 50PY1, 50PY2, and 50PY3, Prior-Year Hope Scholarship or AOT Credit Claimed Student 1, 2, and 3 Code

3.12.2.40.3.7 (01-01-2018) Fields 50PY1, 50PY2, and 50PY3, Prior-Year Hope Scholarship or AOT Credit Claimed Student 1, 2, and 3 Code Fields 50PY1, 50PY2, and 50PY3 are transcribed from line 23 of Form 8863. Each field allows one numeric character. Valid values: 0: neither box is checked 1: box Yes is checked 2: box No is checked, or both boxes are checked If the taxpayer doesn't answer question 23, 24, 25, or 26, but enters the tentative AOC on line 1 or figures qualified expenses from line 27 to 30, correspond for the missing entries. For TY12 and later, enter 0, 1, or 2 in Field 50PY1/2/3. For TY11 and prior, enter 2 in Field 50PY1/2/3.

# Fields 50AE1, 50AE2, and 50AE3, Academic Eligibility Student 1, 2, and 3 Code

3.12.2.40.3.8 (01-01-2018) Fields 50AE1, 50AE2, and 50AE3, Academic Eligibility Student 1, 2, and 3 Code Fields 50AE1, 50AE2, and 50AE3 are transcribed from line 24 of Form 8863. Note: If the taxpayer has filed more than one Form 8863 for the same student (different Education Institutions) use only "one Form 8863" for that student. Each field allows one numeric character. Valid values: 0: neither box is checked 1: box Yes is checked 2: box No checked, or both boxes are checked If the taxpayer doesn't answer question 23, 24, 25, or 26, but enters the tentative AOC on line 1 or figures qualified expenses from line 27 to 30, correspond for the missing entries. For TY12 and later, enter 0, 1, or 2 in Field 50AE1/2/3. For TY11 and prior, enter 2 in Field 50AE1/2/3.

# Fields 50PS1, 50PS2, and 50PS3, Post-Secondary Education Student 1, 2, and 3 Code

3.12.2.40.3.9 (01-01-2018) Fields 50PS1, 50PS2, and 50PS3, Post-Secondary Education Student 1, 2, and 3 Code Fields 50PS1, 50PS2, and 50PS3 are transcribed from line 25 of Form 8863. Each field allows one numeric character. Valid values: 0: neither box is checked 1: box Yes is checked 2: box No checked, or both boxes are checked If the taxpayer doesn't answer question 23, 24, 25, or 26, but enters the tentative AOC on line 1 or figures qualified expenses from line 27 to 30, correspond for the missing entries. For TY12 and later, enter 0, 1, or 2 in Field 50PS1/2/3. For TY11 and prior, enter 2 in Field 50PS1/2/3.

# Fields 50FE1, 50FE2, and 50FE3, Felony Conviction Student 1, 2, and 3 Code

3.12.2.40.3.10 (01-01-2018) Fields 50FE1, 50FE2, and 50FE3, Felony Conviction Student 1, 2, and 3 Code Fields 50FE1, 50FE2, and 50FE3 are transcribed from line 26 of Form 8863. Each field allows one numeric character. Valid values: 0: neither box is checked 1: box Yes is checked 2: box No checked, or both boxes are checked If the taxpayer doesn't answer question 23, 24, 25, or 26, but enters the tentative AOC on line 1 or figures qualified expenses from line 27 to 30, correspond for the missing entries. For TY12 and later, enter 0, 1, or 2 in Field 50FE1/2/3. For TY11 and prior, enter 2 in Field 50FE1/2/3.

# Fields 50ASV, American Opportunity Eligible Student Verified Number

3.12.2.40.3.11 (01-01-2020) Fields 50ASV, American Opportunity Eligible Student Verified Number Field 50ASV is ERS input only. Enter the number of students eligible for the American Opportunity Credit when eligible students' information can't be transcribed. This field is two spaces long, and only positive numeric values are valid.

# Section 51, Form 4952

3.12.2.41 (01-01-2017) Section 51, Form 4952 Form 4952, Investment Interest Expense Deduction, is used to report expenses related to investment interest.

# Error Record Format, Section 51

3.12.2.41.1 (01-01-2023) Error Record Format, Section 51 Section 51 consists of the following fields: Form 4952 Field Name Field Location 514E Disposition of Investment Property Line 4e 514G Investment Income Elect Line 4g Field entries in Section 51 must be positive.

# Invalid Conditions

3.12.2.41.2 (01-01-2020) Invalid Conditions Only numeric values are valid in Section 51 fields.

# Correction Procedures

3.12.2.41.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures are provided for specific fields.

# Field 514E, Disposition of Investment Property

3.12.2.41.3.1 (01-01-2026) Field 514E, Disposition of Investment Property Field 514E is transcribed from line 4e of Form 4952. If a write-in is present to the left of line 4e, enter it in Field 514E. If the entry on line 4e of Form 4952 is not numeric or is illegible, delete the entry in Field 514E.

# Field 514G, Investment Income Elect

3.12.2.41.3.2 (01-01-2026) Field 514G, Investment Income Elect Field 514G is transcribed from line 4g of Form 4952. If the entry on line 4g of Form 4952 is not numeric or is illegible, delete the entry in Field 514G.

# Sections 52 and 53, Form 8889

3.12.2.42 (01-01-2017) Sections 52 and 53, Form 8889 Form 8889, Health Savings Accounts, is used to report contributions and distributions for a Health Savings Account (HSA). Refer to EC 226. Two Forms 8889 may be processed with a return. Section 52 data is for the primary taxpayer, Section 53 for the secondary taxpayer. Note: For the remainder of this text, Form 8889 will be referred to as Section 52; however, all correction procedures will apply equally to Sections 52 and 53.

# Error Record Format, Sections 52 and 53

3.12.2.42.1 (01-01-2023) Error Record Format, Sections 52 and 53 Section 52 consists of the following fields: Form 8889 Field Name Field Location 5201 High-Deductible Health Plan Check Box Line 1 5202 HSA Contributions Line 2 5203 HSA Coverage Deductible Line 3 5204 Total Archer MSA Contributions Line 4 5205 Limited HSA Contributions Line 5 5206 One-Half Adjusted HSA Deductible Line 6 5207 Additional HSA Contributions Line 7 5208 Total HSA Contributions High Deductible Coverage Line 8 5209 Employer HSA Contributions Line 9 5210 Qualified HSA Funding Distributions Line 10 5211 Total Qualified Distributions Line 11 5212 Total Additional HSA Contributions Line 12 5213 Total HSA Deduction Line 13 52HSV HSA Deduction Verified ERS input only 5214A Total HSA Distributions Line 14a 5214B HSA Rollover Amount Line 14b 5214C Allowable HSA Distributions Line 14c 5215 Unreimbursed Qualified Medical Expenses Line 15 5216 Taxable HSA Distributions Line 16 5217A Additional Percentage Tax Exception Indicator Line 17a 5217B Total Additional 20 Percent Tax Line 17b 5218 Part-Year Coverage Line 18 5219 Qualified HSA Funding Line 19 5220 Total Income HDHP Coverage Line 20 5221 Additional Tax HDHP Coverage Line 21 The money amount fields in the section must be positive and dollars only.

# Invalid Conditions

3.12.2.42.2 (01-01-2017) Invalid Conditions Fields 5202 through 5222 are eleven spaces long and will display as invalid if not all numeric. Exception: Field 5217A is a one character field. Field 5201 will display as invalid if other than 1 or 2.

# Correction Procedures

3.12.2.42.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures are provided for specific fields.

# Field 5201, High-Deductible Health Plan Check Box

3.12.2.42.3.1 (01-03-2017) Field 5201, High-Deductible Health Plan Check Box Field 5201 is transcribed from line 1, Form 8889. The field allows one numeric character. Valid values: 1: box Self-only checked 2: box Family checked

# Field 5202, HSA Contributions

3.12.2.42.3.2 (01-03-2017) Field 5202, HSA Contributions Field 5202 is transcribed from line 2, Form 8889.

# Field 5203, HSA Coverage Deductible

3.12.2.42.3.3 (01-03-2017) Field 5203, HSA Coverage Deductible Field 5203 is transcribed from line 3, Form 8889.

# Field 5204, Total Archer MSA Contributions

3.12.2.42.3.4 (01-01-2018) Field 5204, Total Archer MSA Contributions Field 5204 is transcribed from line 4, Form 8889.

# Field 5205, Limited HSA Contributions

3.12.2.42.3.5 (01-03-2017) Field 5205, Limited HSA Contributions Field 5205 is transcribed from line 5, Form 8889. Line 5 is the result of line 4 minus line 3.

# Field 5206, One-Half Adjusted HSA Deductible

3.12.2.42.3.6 (01-03-2017) Field 5206, One-Half Adjusted HSA Deductible Field 5206 is transcribed from line 6, Form 8889.

# Field 5207, Additional HSA Contributions

3.12.2.42.3.7 (01-03-2017) Field 5207, Additional HSA Contributions Field 5207 is transcribed from line 7, Form 8889.

# Field 5208, Total HSA Contributions High-Deductible Coverage

3.12.2.42.3.8 (01-03-2017) Field 5208, Total HSA Contributions High-Deductible Coverage Field 5208 is transcribed from line 8, Form 8889. Line 8 is the sum of lines 6 and 7.

# Field 5209, Employer HSA Contributions

3.12.2.42.3.9 (01-03-2017) Field 5209, Employer HSA Contributions Field 5209 is transcribed from line 9, Form 8889.

# Field 5210, Qualified HSA Funding Distributions

3.12.2.42.3.10 (01-03-2017) Field 5210, Qualified HSA Funding Distributions Field 5210 is transcribed from line 10, Form 8889.

# Field 5211, Total Qualified Distributions

3.12.2.42.3.11 (01-03-2017) Field 5211, Total Qualified Distributions Field 5211 is transcribed from line 11, Form 8889. Line 11 is the sum of lines 9 and 10.

# Field 5212, Total Additional HSA Contributions

3.12.2.42.3.12 (01-03-2017) Field 5212, Total Additional HSA Contributions Field 5212 is transcribed from line 12, Form 8889. Line 12 is the result of line 8 minus line 11.

# Field 5213, Total HSA Deduction

3.12.2.42.3.13 (01-03-2019) Field 5213, Total HSA Deduction Field 5213 is transcribed from line 13, Form 8889. Line 13 is the smaller of line 2 or 12. The taxpayer transfers this amount to line 25, Form 1040. Refer to EC 226.

# Field 52HSV, HSA Deduction Verified

3.12.2.42.3.14 (01-01-2017) Field 52HSV, HSA Deduction Verified Field 52HSV is an ERS input only field. ERS tax examiners use this field to verify the entry for Field 5213, from line 13 of Form 8889, when instructed in correction procedures.

# Field 5214A, Total HSA Distributions

3.12.2.42.3.15 (01-03-2017) Field 5214A, Total HSA Distributions Field 5214A is transcribed from line 14a, Form 8889.

# Field 5214B, HSA Rollover Amount

3.12.2.42.3.16 (01-03-2017) Field 5214B, HSA Rollover Amount Field 5214B is transcribed from line 14b, Form 8889.

# Field 5214C, Allowable HSA Distributions

3.12.2.42.3.17 (01-03-2017) Field 5214C, Allowable HSA Distributions Field 5214C is transcribed from line 14c, Form 8889. Line 14c is the result of line 14a minus 14b.

# Field 5215, Unreimbursed Qualified Medical Expenses

3.12.2.42.3.18 (01-03-2017) Field 5215, Unreimbursed Qualified Medical Expenses Field 5215 is transcribed from line 15, Form 8889.

# Field 5216, Taxable HSA Distributions

3.12.2.42.3.19 (01-03-2017) Field 5216, Taxable HSA Distributions Field 5216 is transcribed from line 16, Form 8889. Line 16 is the result of line 14c minus line 15.

# Field 5217A, 20 Percent Exception Check Box

3.12.2.42.3.20 (01-03-2017) Field 5217A, 20 Percent Exception Check Box Field 5217A is transcribed from the check box on line 17a, Form 8889. The field allows one numeric character. Valid value: 1: box on line 17a checked

# Field 5217B, Total Additional 20 Percent Tax

3.12.2.42.3.21 (01-01-2023) Field 5217B, Total Additional 20 Percent Tax Field 5217B is transcribed from line 17b, Form 8889. If the box on line 17a is checked, the taxpayer is instructed to enter 20 percent of the amount on line 16 on line 17b. If the box on line 17a is not checked, the taxpayer is instructed to enter 20 percent of the amount on line 16 that doesn't meet the exceptions, on line 17b.

# Field 5218, Part-Year Coverage

3.12.2.42.3.22 (01-03-2017) Field 5218, Part-Year Coverage Field 5218 is transcribed from line 18, Form 8889.

# Field 5219, Qualified HSA Funding

3.12.2.42.3.23 (01-03-2017) Field 5219, Qualified HSA Funding Field 5219 is transcribed from line 19, Form 8889.

# Field 5220, Total Income HDHP Coverage

3.12.2.42.3.24 (01-03-2017) Field 5220, Total Income HDHP Coverage Field 5220 is transcribed from line 20, Form 8889. Line 20 is the sum of lines 18 and 19.

# Field 5221, Additional Tax HDHP Coverage

3.12.2.42.3.25 (01-03-2017) Field 5221, Additional Tax HDHP Coverage Field 5221 is transcribed from line 21, Form 8889.

# Section 54, Form 8880

3.12.2.43 (05-24-2022) Section 54, Form 8880 Form 8880, Credit for Qualified Retirement Savings Contributions, is used to report contributions to a qualified retirement savings plan. Refer to EC 286.

# Error Record Format, Section 54

3.12.2.43.1 (01-01-2023) Error Record Format, Section 54 Section 54 consists of the following fields transcribed from Form 8880: Form 8880 Field Name Field Location 5406A Primary Contributions Line 6a 5406B Secondary Contributions Line 6b All fields in Section 54 must be positive.

# Invalid Conditions

3.12.2.43.2 (01-01-2020) Invalid Conditions Fields 5406A and 5406B are eleven spaces long and will display as invalid if not all numeric.

# Correction Procedures

3.12.2.43.3 (01-01-2026) Correction Procedures Correct coding and transcription and misplaced entries in displayed fields. Additional correction procedures are provided for specific fields.

# Field 5406A, Primary Contributions

3.12.2.43.3.1 (01-01-2026) Field 5406A, Primary Contributions Field 5406A is transcribed from line 6, column a, of Form 8880. If the entry on Form 8880, line 6, column a, is not numeric or is illegible, delete the entry in Field 5406A.

# Field 5406B, Secondary Contributions

3.12.2.43.3.2 (01-01-2026) Field 5406B, Secondary Contributions Field 5406B is transcribed from line 6, column b, of Form 8880. If the entry on Form 8880, line 6, column b, is not numeric or is illegible, delete the entry in Field 5406A

# Section 55, Form 8995 or Form 8995-A

3.12.2.44 (01-01-2023) Section 55, Form 8995 or Form 8995-A Form 8995, Qualified Business Income Deduction Simplified Computation, or Form 8995-A, Qualified Business Income Deduction, is used for TY19 and later to calculate the amount of Qualified Business Income Deduction (QBID) reported on Form 1040, line 13.

# Error Record Format, Section 55

3.12.2.44.1 (01-01-2024) Error Record Format, Section 55 Section 55 consist of the following fields transcribed from Form 8995/8995-A: Form 8995/8995-A Field Name Field Location Form 8995 Field Location Form 8995-A 55TIL Total Qualified Business Income or Loss Line 2 N/A 55QBC Qualified Business Net Loss Carryforward Line 3 Schedule C, Line 2 55BIC Qualified Business Income Component Line 5 Line 27 55RIL Qualified REIT Dividends and PTP Income or Loss Line 6 Line 28 55RDC Qualified REIT Dividends and PTP Loss Carryforward Line 7 Line 29 55REI REIT and PTP Component Line 9 Line 31 55NCG Form 8995 Net Capital Gain Line 12 Line 34 55TQC Total Qualified Business Loss Carryforward Line 16 Schedule C, Line 6 55DPA Form 8995-A Domestic Production Activities Deduction N/A Line 38 55TRC Total Qualified REIT Dividend and PTP Loss Carryforward Line 17 Line 40 Fields 55TIL and 55RIL are transcribed as positive or negative in dollars and cents. All other money amounts are transcribed as positive in dollars and cents.

# Invalid Conditions

3.12.2.44.2 (01-01-2020) Invalid Conditions Fields in Section 55 will display as invalid if not all numeric.

# Correction Procedures

3.12.2.44.3 (01-01-2020) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Refer to EC 249.

# Field 55TIL, Total Qualified Business Income or Loss

3.12.2.44.3.1 (01-01-2023) Field 55TIL, Total Qualified Business Income or Loss If the taxpayer files Form 8995, Field 55TIL is transcribed from Line 2. Field 55TIL is not valid for Form 8995-A.

# Field 55QBC, Qualified Business Net Loss Carryforward

3.12.2.44.3.2 (11-27-2020) Field 55QBC, Qualified Business Net Loss Carryforward If the taxpayer files Form 8995, Field 55QBC is transcribed from Line 3. If the taxpayer files Form 8995-A, Field 55QBC is transcribed from Schedule C, Line 2.

# Field 55BIC, Qualified Business Income Component

3.12.2.44.3.3 (11-27-2020) Field 55BIC, Qualified Business Income Component Field 55BIC is transcribed from Form 8995, Line 5 or from Form 8995-A, Line 27.

# Field 55RIL, Qualified REIT Dividends and PTP Income or Loss

3.12.2.44.3.4 (01-01-2023) Field 55RIL, Qualified REIT Dividends and PTP Income or Loss If the taxpayer files Form 8995, Field 55RIL is transcribed from Line 6. If the taxpayer files Form 8995-A, Field 55RIL is transcribed from Line 28.

# Field 55RDC, Qualified REIT Dividends and PTP Loss Carryforward

3.12.2.44.3.5 (11-27-2020) Field 55RDC, Qualified REIT Dividends and PTP Loss Carryforward Field 55RDC is transcribed from Form 8995, Line 7 or from From 8995-A, line 29.

# Field 55REI, REIT and PTP Component

3.12.2.44.3.6 (11-27-2020) Field 55REI, REIT and PTP Component Field 55REI is transcribed from Form 8995, Line 9 or from Form 8995-A, line 31.

# Field 55NCG, Net Capital Gains

3.12.2.44.3.7 (11-27-2020) Field 55NCG, Net Capital Gains Field 55NCG is transcribed from Form 8995, Line 12 or from Form 8995-A, Line 34.

# Field 55TQC, Total Qualified Business Loss Carryforward

3.12.2.44.3.8 (11-27-2020) Field 55TQC, Total Qualified Business Loss Carryforward If the taxpayer files Form 8995, Field 55TQC is transcribed from Form 8995, Line 16. If the taxpayer files Form 8995-A, Field 55TQC is transcribed from Schedule C, Line 6.

# Field 55DPA, Form 8995 Domestic Production Activities Deduction Amount

3.12.2.44.3.9 (11-27-2020) Field 55DPA, Form 8995 Domestic Production Activities Deduction Amount Field 55DPA is filed on Form 8995-A only and is transcribed from Form 8995-A, Line 38.

# Field 55TRC, Total Qualified REIT Dividend and PTP Loss Carryforward

3.12.2.44.3.10 (06-10-2021) Field 55TRC, Total Qualified REIT Dividend and PTP Loss Carryforward Field 55TRC is transcribed from Form 8995, Line 17 or from Form 8995-A, Line 40.

# Section 56, Form 8888

3.12.2.45 (01-01-2017) Section 56, Form 8888 Form 8888, Allocation of Refund, is used to allocate the taxpayer's refund for direct deposit into one or more bank accounts.

# Error Record Format, Section 56

3.12.2.45.1 (01-01-2026) Error Record Format, Section 56 Section 56 consists of the following fields transcribed from Form 8888: Form 8888 Field Name Field Location 5601A Account 1 Deposit Amount Line 1a 5601B Account 1 Routing Number Line 1b 5601C Account 1 Type Deposit Code Line 1c 5601D Account 1 Account Number Line 1d 5602A Account 2 Deposit Amount Line 2a 5602B Account 2 Routing Number Line 2b 5602C Account 2 Type Deposit Code Line 2c 5602D Account 2 Account Number Line 2d 5603A Account 3 Deposit Amount Line 3a 5603B Account 3 Routing Number Line 3b 5603C Account 3 Type Deposit Code Line 3c 5603D Account 3 Account Number Line 3d 5604 Paper Check Refund Amount Line 4 (Delete entry)

# Invalid Conditions

3.12.2.45.2 (01-01-2020) Invalid Conditions With the exceptions of Fields 5601C, 5602C, and 5603C, fields in Section 56 will display as invalid if other than numeric entries. Fields 5601C, 5602C, and 5603 will display as invalid if other than alpha. Money amounts are transcribed as positive in dollars and cents.

# Correction Procedures

3.12.2.45.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. The taxpayer has the option of using Section 06 or Section 56, Form 8888, but not both. If the taxpayer tries to use both, Error Code 142 will display. Injured Spouse filers do not have the option of using Form 8888. Total Direct Deposit amounts of less than $100 will not be allowed using Form 8888. See Section 06 Correction Procedures for Fields RTN, DAN, and TDA. Additional correction procedures are provided for specific fields.

# Fields 5601A, 5602A, and 5603A, Account 1/2/3 Deposit Amount

3.12.2.45.3.1 (01-01-2017) Fields 5601A, 5602A, and 5603A, Account 1/2/3 Deposit Amount The Deposit Amount is transcribed in Fields 5601A, 5602A, and 5603A from line 1a/2a/3a, Form 8888.

# Fields 5601B, 5602B, and 5603B, Account 1/2/3 Routing Number

3.12.2.45.3.2 (01-01-2017) Fields 5601B, 5602B, and 5603B, Account 1/2/3 Routing Number The Routing Number is transcribed in Fields 5601B, 5602B, and 5603B from line 1b/2b/3b, Form 8888.

# Fields 5601C, 5602C, and 5603C, Account 1/2/3 Type Deposit Code

3.12.2.45.3.3 (01-01-2017) Fields 5601C, 5602C, and 5603C, Account 1/2/3 Type Deposit Code The Account Type Deposit Code is transcribed in Fields 5601C, 5602C, and 5603C from line 1c/2c/3c, Form 8888. Enter the account type deposit code in Field 5601C/5602C/5603C as follows: If the Checking box is checked, enter C. If the Savings box is checked, enter S.

# Fields 5601D, 5602D, 5603D, Account 1/2/3 Account Number

3.12.2.45.3.4 (01-01-2017) Fields 5601D, 5602D, 5603D, Account 1/2/3 Account Number The Account Number is transcribed in Fields 5601D, 5602D and 5603D from line 1d/2d/3d, Form 8888.

# Field 5604, Paper Check Refund Amount

3.12.2.45.3.5 (01-01-2026) Field 5604, Paper Check Refund Amount TY24 and prior, Field 5604 was transcribed from line 4, Form 8888 (TY23 and prior, line 7) as the portion of the refund that the taxpayer requested as a paper check. In compliance with Executive Order 14247, which requires all payments from the federal government, including the IRS, to be handled electronically, the paper check option was removed from Form 8888 in 2025 for all tax years. If there is an amount on Form 8888, line 4 (TY23 and prior, line 7) and Field 5604 displays as a field error, delete the entry in Field 5604.

# Section 57, Form 8978

3.12.2.46 (02-26-2020) Section 57, Form 8978 Form 8978, Partner's Additional Reporting Year Tax, is used by partners of audited partnerships when the partnership pushed out underpayment to its partners.

# Error Record Format, Section 57

3.12.2.46.1 (01-01-2023) Error Record Format, Section 57 Section 57 consists of the following fields transcribed from Form 8978: Form 8978 Field Name Field Location 57YAC Source of Review Year Adjustment Code Checkbox below entity 5714 Total Additional Reporting Year Tax Line 14 5716 Total Penalties Line 16 5718 Total Interest Line 18 Amounts are transcribed as dollars and cents. Fields are positive only, except Field 5714, which can be positive or negative.

# Invalid Conditions

3.12.2.46.2 (01-01-2020) Invalid Conditions Section 57 fields will display as invalid if not all numeric.

# Correction Procedures

3.12.2.46.3 (01-01-2020) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Field 57YAC, Source of Review Year Adjustments Code

3.12.2.46.3.1 (01-01-2026) Field 57YAC, Source of Review Year Adjustments Code Field 57YAC is transcribed from the checkbox below the entity on Form 8978. Coding for the checkbox is: 0: neither box is checked 1: BBA box is checked 2: AAR box is checked 3: both boxes are checked

# Fields 5714, 5716, and 5718

3.12.2.46.3.2 (01-01-2026) Fields 5714, 5716, and 5718 Field 5714, Total Additional Reporting Year Tax, is transcribed from Form 8978, line 14. Field 5714 can be positive or negative. Field 5716, Total Penalties, is transcribed from Form 8978, line 16. Field 5718, Total Interest, is transcribed from Form 8978, line 18. Amounts in these fields are transcribed as dollars and cents, and can contain up to eleven digits. If the entry is not numeric or is illegible, delete the entry.

# Sections 58 and 59, Form 5405

3.12.2.47 (01-01-2017) Sections 58 and 59, Form 5405 Form 5405, Repayment of the First-Time Homebuyer Credit, is used to claim the First-Time Homebuyer Credit (TY08 through TY11) and to repay it (TY10 through TY24). In TY11, the credit expired, and for TY12 through TY24, Form 5405 is for the repayment of the First-Time Homebuyer Credit only. Two Forms 5405 may be processed with a return. Section 58 data is for the primary taxpayer. Section 59 data is for the secondary taxpayer. Note: For the remainder of this text, Form 5405 will be referred to as Section 58; however, all correction procedures will apply equally to Sections 58 and 59. The following description of these sections refers to Section 58 but applies to both sections.

# Error Record Format, Sections 58 and 59

3.12.2.47.1 (01-01-2024) Error Record Format, Sections 58 and 59 Section 58 consists of the following fields: Form 5405 Field Name Field Location 58SSN Social Security Number Upper right corner of Form 5405 5801 Date of Disposition of Home or Change in Status of Home Line 1 5803 Disposition Code Line 3a to 3h 5804 Prior Year Credit Claimed Line 4 5805 Repayment of Home Purchased in 2008 Line 5 5807 Gain on Sale of Main Home Line 7 5808 Repayment of Homebuyer Credit Line 8 5808V Repayment of Homebuyer Credit Verified ERS only

# Invalid Conditions

3.12.2.47.2 (01-01-2026) Invalid Conditions With the exception of Field 5803, fields in Section 58 will display as invalid if not all numeric. Field 5803 will display as invalid if other than alpha characters.

# Correction Procedures

3.12.2.47.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Section 58 data is for the primary taxpayer, and Section 59 data is for the secondary taxpayer. Additional correction procedures for Section 58/59 fields follow. Refer to EC 328 and EC 329.

# Field 58SSN, Social Security Number

3.12.2.47.3.1 (01-01-2026) Field 58SSN, Social Security Number Field 58SSN is transcribed from the block for the taxpayer's TIN in the upper right corner of Form 5405.

# Field 5801, Date of Disposition or Change in Status

3.12.2.47.3.2 (01-01-2026) Field 5801, Date of Disposition or Change in Status Field 5801 is transcribed from Part I, line 1 of Form 5405 for TY12 - TY24. The date format is YYYYMMDD.

# Field 5803, Form 5405 Disposition Code

3.12.2.47.3.3 (01-01-2026) Field 5803, Form 5405 Disposition Code Field 5803 is transcribed from Part I, line 3 of Form 5405 for TY12 - TY24. The field is one space long, and only alpha values are valid. Field values are as follows: A: box a checked B: box b checked C: box c checked D: box d checked E: box e checked F: box f checked G: box g checked H: box h checked I: no corresponding disposition and the taxpayer has submitted an annual payment

# Field 5804, Credit Claimed in Prior Year Amount

3.12.2.47.3.4 (01-01-2026) Field 5804, Credit Claimed in Prior Year Amount Field 5804 is transcribed from Part II, line 4 of Form 5405 for TY12 - TY24.

# Field 5805, Credit Repaid Home Purchased 2008 Amount

3.12.2.47.3.5 (01-01-2026) Field 5805, Credit Repaid Home Purchased 2008 Amount Field 5805 is transcribed from Part II, line 5 of Form 5405 for TY12 - TY24.

# Field 5807, Gain on Sale of Main Home Amount

3.12.2.47.3.6 (01-01-2026) Field 5807, Gain on Sale of Main Home Amount Field 5807 is transcribed from Part II, line 7 of Form 5405 for TY12 - TY24.

# Field 5808, Repayment of Homebuyer Credit Amount

3.12.2.47.3.7 (01-01-2026) Field 5808, Repayment of Homebuyer Credit Amount Field 5808 is transcribed from Part II, line 8 of Form 5405 for TY12 - TY24.

# Field 5808V, Repayment of Homebuyer Credit Verified Amount

3.12.2.47.3.8 (01-01-2026) Field 5808V, Repayment of Homebuyer Credit Verified Amount Field 5808V is for ERS input only when an instruction in EC 329 describes its use.

# Sections 61 and 62, Form 8919

3.12.2.48 (01-01-2017) Sections 61 and 62, Form 8919 Form 8919, Uncollected Social Security and Medicare Tax on Wages, is used to report social security and Medicare tax on wages (TY07 and later). Refer to ECs 314 and 316. Two Forms 8919 may be processed with a return. Section 61 data is for the primary taxpayer. Section 62 data is for the secondary taxpayer. Note: For the remainder of this text, Form 8919 will be referred to as Section 61; however, all correction procedures will apply equally to Sections 61 and 62.

# Error Record Format, Sections 61 and 62

3.12.2.48.1 (01-01-2023) Error Record Format, Sections 61 and 62 Section 61 consists of the following fields: Form 8919 Field Name Field Location 61SSN Social Security Number Upper right portion of Form 8919 61F1N Firm 1 Name Line 1a 61F1E Firm 1 EIN Line 1b 61F1R Firm 1 Reason Code Line 1c 61F1D Firm 1 IRS Determination/ Correspondence Date Line 1d 61F1I Firm 1 1099-MISC Received Indicator Line 1e 61F1W Firm 1 Non-reported Wages Received With no SS/Medicare Tax Withheld Line 1f 61F2N Firm 2 Name Line 2a 61F2E Firm 2 EIN Line 2b 61F2R Firm 2 Reason Code Line 2c 61F2D Firm 2 IRS Determination/ Correspondence Date Line 2d 61F2I Firm 2 1099-MISC Received Indicator Line 2e 61F2W Firm 2 Non-reported Wages Received With no SS/Medicare Tax Withheld Line 2f 61F3N Firm 3 Name Line 3a 61F3E Firm 3 EIN Line 3b 61F3R Firm 3 Reason Code Line 3c 61F3D Firm 3 IRS Determination/ Correspondence Date Line 3d 61F3I Firm 3 1099-MISC Received Indicator Line 3e 61F3W Firm 3 Non-reported Wages Received With no SS/Medicare Tax Withheld Line 3f 6106 Form 8919 Total Wages Amount Line 6 6108 Total Social Security Wages and Tips Line 8 6113 Total Uncollected Social Security and Medicare Tax on Wages Line 13 6113V Total Uncollected Social Security and Medicare Tax on Wages Verified ERS input only Money amount fields must be numeric and positive.

# Invalid Conditions

3.12.2.48.2 (01-01-2020) Invalid Conditions Section 61 fields will display as invalid if other than numeric and positive, other than Firm name and Reason Code, which are alpha fields.

# Correction Procedures

3.12.2.48.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures are provided for specific fields. If Form 8919 has an entry on lines 1a through 5a, then columns b-f must also have entries for the corresponding line number. If any of the lines in columns b-f do not have an entry, enter Z in Field 01ACD.

# Field 61SSN, Social Security Number

3.12.2.48.3.1 (01-01-2017) Field 61SSN, Social Security Number Field 61SSN is transcribed from the upper right hand portion of Form 8919. It is the SSN of the taxpayer who is liable for uncollected social security and Medicare tax on wages.

# Fields 61F1N, 61F2N, and 61F3N, Firm Name

3.12.2.48.3.2 (01-01-2017) Fields 61F1N, 61F2N, and 61F3N, Firm Name The firm name is transcribed in Fields 61F1N, 61F2N, and 61F3N from lines 1-3, column a of Form 8919. This field is 18 characters long.

# Fields 61F1E, 61F2E, and 61F3E, Firm EIN

3.12.2.48.3.3 (01-01-2018) Fields 61F1E, 61F2E, and 61F3E, Firm EIN The firm EIN is transcribed in Fields 61F1E, 61F2E, and 61F3E from lines 1-3, column b of Form 8919. An entry of non-numerical characters or less than nine characters long is invalid. If the taxpayer's entry is not numerical or less than nine characters, enter nine zeros.

# Fields 61F1R, 61F2R, and 61F3R, Reason Code

3.12.2.48.3.4 (01-01-2017) Fields 61F1R, 61F2R, and 61F3R, Reason Code The reason code is transcribed in Fields 61F1R, 61F2R, and 61F3R from lines 1-3, column c of Form 8919. If reason code A, B, C, D, E, F, G, or H is present, enter the first reason code present in Field 61F1R/61F2R/61F3R for lines 1-3.

# Fields 61F1D, 61F2D, and 61F3D, IRS Determination/Correspondence Date

3.12.2.48.3.5 (01-01-2017) Fields 61F1D, 61F2D, and 61F3D, IRS Determination/Correspondence Date The IRS determination/correspondence date is transcribed in MMDDYYYY format in Fields 61F1D, 61F2D, and 61F3D from lines 1-3, column d of Form 8919. Reason code A, B (TY11 - TY07), or C in column (c) requires that an associated date be present in column (d). If no date is present, correspond for it. If the taxpayers note the name of a firm in column (a), fill the fields according to the instructions in the table below. The instructions refer to Section 61 but apply equally to Section 62. If And Then An entry is present in column (a), The reason code in column (c), on the same line, is A, B (TY11 - TY07), or C, Enter in Field 61F1D, 61F2D, or 61F3D the date provided by the taxpayer on that line. An entry is present in column (a), The reason code in column (c), on the same line, is not A, B, or C, Enter 00000000 (eight zeros) in Field 61F1D, 61F2D, or 61F3D for that line.

# Fields 61F1I, 61F2I, and 61F3I, 1099-MISC Received Indicator

3.12.2.48.3.6 (01-01-2017) Fields 61F1I, 61F2I, and 61F3I, 1099-MISC Received Indicator The 1099-MISC received indicator is transcribed in Fields 61F1I, 61F2I and 61F3I as 1 (one) if a box is checked on lines 1-3, column e of Form 8919.

# Fields 61F1W, 61F2W, and 61F3W, Non-reported Wages Received with No SS/Medicare Tax Withheld

3.12.2.48.3.7 (01-01-2017) Fields 61F1W, 61F2W, and 61F3W, Non-reported Wages Received with No SS/Medicare Tax Withheld The non-reported wages received with no SS/Medicare tax withheld is transcribed in Fields 61F1W, 61F2W, and 61F3W from lines 1-3, column f of Form 8919.

# Field 6106, Form 8919 Total Wages Amount

3.12.2.48.3.8 (01-01-2023) Field 6106, Form 8919 Total Wages Amount Form 8919 Total Wages Amount is transcribed in Field 6106 from line 6 of Form 8919. It is the total of lines 1 through 5, column f.

# Field 6108, Total Social Security Wages and Tips

3.12.2.48.3.9 (01-01-2017) Field 6108, Total Social Security Wages and Tips Total social security wages and tips is transcribed in Field 6108 from line 8 of Form 8919.

# Field 6113, Total Uncollected Social Security and Medicare Tax on Wages

3.12.2.48.3.10 (01-01-2017) Field 6113, Total Uncollected Social Security and Medicare Tax on Wages Total uncollected social security and Medicare tax on wages is transcribed in Field 6113 from line 13 of Form 8919. It is the sum of the amount on lines 11 and 12.

# Field 6113V, Total Uncollected Social Security and Medicare Tax on Wages Verified

3.12.2.48.3.11 (01-01-2017) Field 6113V, Total Uncollected Social Security and Medicare Tax on Wages Verified Field 6113V is ERS input only. This field is used only when the computer cannot accurately compute Form 8919.

# Section 63, Form 8958

3.12.2.49 (05-30-2024) Section 63, Form 8958 Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, is entered as Section 63. Refer to IRM 3.12.3.24.4.14, Community Property Returns (EC 260). When Form 8958 is attached with a spouse or RDP SSN listed in column B or C, Code and Edit has instructions to edit Action Code 430 (See IRM 3.12.37.16.3, Action Code 430 Correction Procedures).

# Error Record Format, Section 63

3.12.2.49.1 (01-01-2023) Error Record Format, Section 63 Section 63 consists of the following fields: Form 8958 Field Name Field Location 63SPF Form 8958 Spouse or Partner First Name First box in the second line of Form 8958 63SPL Form 8958 Spouse or Partner Last Name Second box in the second line of Form 8958 63SPN Form 8958 Spouse or Partner SSN Third box in the second line of Form 8958

# Invalid Conditions

3.12.2.49.2 (01-01-2026) Invalid Conditions Fields 63SPF and 63SPL are seventeen spaces long, and only alphanumeric values and blank are valid. Field 63SPN is nine characters long and only numeric values are valid.

# Correction Procedures

3.12.2.49.3 (01-01-2026) Correction Procedures Correct coding and transcription and misplaced entries on displayed fields. Additional correction procedures are provided for specific Section 63 fields.

# Field 63SPF, Spouse or Partner First Name

3.12.2.49.3.1 (01-01-2026) Field 63SPF, Spouse or Partner First Name Field 63SPF is transcribed from the first box in line 2 of Form 8958, and the field can contain up to seventeen characters. If missing, SSPND 211 to correspond for missing first name.

# Field 63SPL, Spouse or Partner Last Name

3.12.2.49.3.2 (01-01-2026) Field 63SPL, Spouse or Partner Last Name Field 63SPL is transcribed from the second box in line 2 of Form 8958, and the field can contain up to seventeen characters. If missing, SSPND 211 to correspond for missing last name.

# Field 63SPN, Spouse or Partner SSN

3.12.2.49.3.3 (01-01-2026) Field 63SPN, Spouse or Partner SSN Field 63SPN is transcribed from the third box in line 2 of Form 8958. If "NRA, none, N/A, Applied for, or ITIN Reject" is notated in place of the SSN, enter nine 9s. If Spouse or Partner name is present on the return, research using INOLE, NAMES or NAMEI for missing SSN. If unable to find, follow (5) below. If missing, SSPND 211 and correspond using fill-in "12" .

# Section 64, Form 461

3.12.2.50 (01-01-2020) Section 64, Form 461 Form 461, Limitation on Business Losses, is used to calculate the limitation on trade or business losses as defined by IRC 461(I).

# Error Record Format, Section 64

3.12.2.50.1 (01-01-2023) Error Record Format, Section 64 Section 64 consists of the following fields from Form 461: Form 461 Field Name Field Location 6408 Form 461 Other Income or Loss Not Reported Line 8 6409 Form 461 Gross Income or Loss Line 9 6410 Non-Attributable Income or Gain Line 10 6411 Non-Attributable Loss or Deductions Line 11 6412 Net Income and Gain Less Loss and Deduction Line 12 6416 Form 461 Excess Business Losses Line 16

# Invalid Conditions

3.12.2.50.2 (01-01-2020) Invalid Conditions Fields in Section 64 will display as invalid if not all numeric. Fields 6410 and 6411 will be transcribed as positive and dollars only, up to eleven digits. The other fields in Section 64 can be positive or negative.

# Correction Procedures

3.12.2.50.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. The following fields are transcribed from Form 461 in Section 64: Field 6408, Form 461 Other Income or Loss Not Reported, from line 8 Field 6409, Form 461 Gross Income or Loss, from line 9 Field 6410, Non-Attributable Income or Gain, from line 10 Field 6411, Non-Attributable Loss or Deductions, from line 11 Field 6412, Net Income and Gain Less Loss and Deduction, from line 12 Field 6416, Form 461 Excess Business Losses, from line 16 If the entry on Form 461 is not numeric or is illegible, delete the entry in the displayed field in Section 64.

# Sections 65 and 66, Form 8941

3.12.2.51 (01-01-2017) Sections 65 and 66, Form 8941 Form 8941, Credit for Small Employer Health Insurance Premiums, is used to figure the credit for small employer health insurance premiums. Two Forms 8941 may be processed with a return. The first Form 8941 displays as Section 65 and the second Form 8941 as Section 66. Section 65 is for the primary and Section 66 for the secondary taxpayer. Note: For the remainder of this text, Form 8941 will be referred to as Section 65; however, all correction procedures will apply equally to Sections 65 and 66.

# Error Record Format, Sections 65 and 66

3.12.2.51.1 (01-01-2023) Error Record Format, Sections 65 and 66 Section 65 consists of the following fields transcribed from Form 8941: Form 8941 Field Name Field Location 65SSN F8941 ID Number Upper right of form, immediately below the attachment number 65SHP SHOP Checkbox Line A 65EIN F8941 Employment Taxes EIN Number Line B 652YR F8941 Two Year Declaration Checkbox Line C 6501 F8941 Total Employees Number Line 1 6502 F8941 Full Time Employees Number Line 2 6503 F8941 Average Annual Wage Amount Line 3 6504 F8941 Health Insurance Premium Paid Amount Line 4 6505 F8941 Potential Total Premiums Amount Line 5 6510 State Tax Credit and Premium Subsidy Amount Line 10 6513 F8941 Employees with Premiums Paid Number Line 13 6514 F8941 Full Time Employees Premiums Paid Number Line 14 6515 F8941 Premium Credit Other Sources Amount Line 15 6516 F8941 Health Insurance Premiums Credit Line 16 6516V F8941 Health Insurance Premiums Verified ERS input only

# Invalid Conditions

3.12.2.51.2 (01-01-2020) Invalid Conditions Sections 65 and 66 fields will display as invalid if other than numeric and positive.

# Correction Procedures

3.12.2.51.3 (01-01-2020) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Additional correction procedures are provided for specific fields. A field error may display for missing or incomplete entries on Form 8941. Research return for Form 3800 and if Part III, line 4h, column c (TY23, column d; TY22 and prior, column b), has an EIN, do not correspond for missing information. Delete Section 65 or 66 as appropriate.

# Field 65SSN, Form 8941 ID Number

3.12.2.51.3.1 (01-01-2026) Field 65SSN, Form 8941 ID Number Field 65SSN is transcribed from the upper right hand portion of Form 8941.

# Fields 65SHP, Form 8941, SHOP Checkbox

3.12.2.51.3.2 (01-01-2026) Fields 65SHP, Form 8941, SHOP Checkbox Field 65SHP is transcribed from line A of Form 8941. This field is numeric only and one character in length. This code will be edited in the left margin of line A. The values are as follows: 0 - Neither box is checked (default). 1 - "Yes" box is checked. 2 - "No" box is checked. 3 - Both "Yes" and "No" boxes are checked.

# Field 65EIN, Form 8941 Employment Taxes EIN Number

3.12.2.51.3.3 (01-01-2026) Field 65EIN, Form 8941 Employment Taxes EIN Number Field 65EIN is transcribed from line B of Form 8941. The field is nine numeric characters only. Correspond for the EIN if missing. Exception: If the Employment Taxes Employer Identification Number, line B is blank and an EIN is on Form 3800, Part III, line 4h, column b or Form 8941, line 15, is present and matches line 16, do not correspond for missing information. Delete Section 65 and/or 66 as appropriate.

# Field 652YR, Two Year Declaration Checkbox

3.12.2.51.3.4 (01-01-2026) Field 652YR, Two Year Declaration Checkbox For TY16 and later, Field 652YR is transcribed from line C of Form 8941. Valid values: 0 - Neither box is checked (default). 1 - "Yes" box is checked. 2 - "No" box is checked. 3 - Both "Yes" and "No" boxes are checked.

# Field 6501, Form 8941 Total Employees Number

3.12.2.51.3.5 (01-01-2026) Field 6501, Form 8941 Total Employees Number Field 6501 is transcribed from line 1, Form 8941, for TY14 and later. The field is four spaces long, and only numeric values are valid. Correspond for the number of employees if it's missing. Exception: If the Number of Employees, line 1 is blank and an EIN is on Form 3800, Part III, line 4h, column b or Form 8941, line 15, is present and matches line 16, do not correspond for missing information. Delete Section 65 or 66 as appropriate.

# Field 6502, Form 8941 Full-Time Employees Number

3.12.2.51.3.6 (01-01-2026) Field 6502, Form 8941 Full-Time Employees Number Field 6502 is transcribed from line 2, Form 8941. Correspond for the number of full-time-equivalent employees if it's missing.

# Field 6503, Form 8941 Average Annual Wages Amount

3.12.2.51.3.7 (01-01-2026) Field 6503, Form 8941 Average Annual Wages Amount Field 6503 is transcribed from line 3, Form 8941.

# Field 6504, Form 8941 Health Insurance Premiums Paid Amount

3.12.2.51.3.8 (01-01-2026) Field 6504, Form 8941 Health Insurance Premiums Paid Amount Field 6504 is transcribed from line 4, Form 8941.

# Field 6505, Form 8941 Potential Total Premiums Amount

3.12.2.51.3.9 (01-01-2026) Field 6505, Form 8941 Potential Total Premiums Amount Field 6505 is transcribed from line 5, Form 8941.

# Field 6510, Form 8941, State Tax Credit and Premium Subsidy Amount

3.12.2.51.3.10 (01-01-2026) Field 6510, Form 8941, State Tax Credit and Premium Subsidy Amount Field 6510 is transcribed from line 10, Form 8941.

# Field 6513, Form 8941 Employees with Premiums Paid Amount

3.12.2.51.3.11 (01-01-2026) Field 6513, Form 8941 Employees with Premiums Paid Amount Field 6513 is transcribed from line 13, Form 8941.

# Field 6514, Form 8941 Full Time Employees Premiums Paid Number

3.12.2.51.3.12 (01-01-2026) Field 6514, Form 8941 Full Time Employees Premiums Paid Number Field 6514 is transcribed from line 14, Form 8941.

# Field 6515, Form 8941 Premium Credit Other Sources Amount

3.12.2.51.3.13 (01-01-2026) Field 6515, Form 8941 Premium Credit Other Sources Amount Field 6515 is transcribed from line 15, Form 8941.

# Field 6516, Form 8941 Health Insurance Premiums Credit

3.12.2.51.3.14 (01-01-2026) Field 6516, Form 8941 Health Insurance Premiums Credit Field 6516 is transcribed from line 16, Form 8941.

# Field 6516V, Form 8941 Health Insurance Premiums Verified

3.12.2.51.3.15 (01-01-2026) Field 6516V, Form 8941 Health Insurance Premiums Verified Field 6516V is ERS input only.

# Section 67, Form 6252

3.12.2.52 (01-01-2020) Section 67, Form 6252 Form 6252, Installment Sale Income, is used to report income from the sale of real property

# Error Record Format, Section 67

3.12.2.52.1 (01-01-2023) Error Record Format, Section 67 Section 67 consists of the following fields from Form 6252: Form 6252 Field Name Field Location 6701 Description of Property Line 1 672A Date Property Acquired Line 2a 672B Date Property Sold Line 2b 6707 Selling Price Less Mortgage and Debts Line 7 6719 Gross Profit Percentage Line 19 6721 Payments Received During Year Line 21 6723 Payments Received in Prior Years Line 23

# Invalid Conditions

3.12.2.52.2 (01-01-2026) Invalid Conditions Field 6701 will display as invalid if other than alphanumeric. Field 672A and 672B will display as invalid if other than numeric (YYYYMMDD date format). Fields 6707 through 6723 will display as invalid if other than numeric.

# Correction Procedures

3.12.2.52.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. The following fields are transcribed from Form 6252: Field 6701, Description of Property, from line 1 Field 672A, Date Property Acquired, from line 2a Field 672B, Date Property Sold, from line 2b Field 6707, Selling Price Less Mortgage and Debts, from line 7 Field 6719, Gross Profit Percentage, from line 19 Field 6721, Payments Received During Year, from line 21 Field 6723, Payments Received in Prior Years, from line 23 Field 6701 will display as invalid if other than: 0: no description (default) 1: Timeshare or residential lots 2: Sale by an individual of personal use property 3: Sale of any property used or produced in the trade or business of farming 4: Other If the taxpayer's entry on Form 6252, line 2a is blank or incomplete, overlay Field 672A with eight zeros to delete the entry. If the taxpayer's entry on Form 6252, line 2b is blank or incomplete, overlay Field 672B with eight zeros to delete the entry. Field 6707 will display as invalid if other than numeric. If the taxpayer's entry on line 7 is illegible or other than numeric, delete the entry. Field 6719 cannot contain a value greater than 100 percent, expressed as a decimal as 1.0000. If the entry on Form 6252, line 19, is more than 100 percent, remove the entry in Field 6719. If line 19 is less than or equal to 100 percent (1.0000 or less), enter Field 6719 as a five digit number, with one whole number (zero or one) and four decimal digits. Add subsequent zeros if needed to reach five digits. See the table below for examples: Entry on Line 19: Enter in Field 6719: 1.00 10000 0.91 (or .91) 09100 0.0258 (or .0258) 00258 0.54321 (or .54321) 05432 85% 08500 54% 05400 Field 6721 and Field 6723 will display as invalid if other than numeric. If the taxpayer's entry on line 21 and/or 23 is illegible or other than numeric, delete the entry.

# Section 69, Form 8936 and Form 8936 Schedule A

3.12.2.53 (01-01-2024) Section 69, Form 8936 and Form 8936 Schedule A Form 8936, Clean Vehicle Credits, and Form 8936 Schedule A, Clean Vehicle Credit Amount, are transcribed in Section 69.

# Error Record Format, Section 69

3.12.2.53.1 (01-01-2025) Error Record Format, Section 69 Section 69 consists of the following fields from Form 8936 and Form 8936 Schedule A: Form 8936 and Form 8936 Schedule A Field Name Field Location 69ADJ Form 8936 Prior Year Modified Adjusted Gross Income Amount Form 8936, Line 4 (TY25 - TY23) 69PYF Form 8936 Prior Year Filing Status Form 8936, line 5 (TY25 - TY24) 69CVP Form 8936 New Clean Vehicle Partnership or S Corp Credit Amount Form 8936, Line 7 (TY25 - TY23) 69QVP Form 8936 Qualified Commercial Vehicle Partnership or S Corp Credit Amount Form 8936, Line 20 (TY25 - TY23) 69AFI Additional Form 8936 Schedule A Indicator Edited on 1st Form 8936, Schedule A in right margin beside VIN (TY25 - TY23) 69VN1 Form 8936 Schedule A Vehicle 1 Identification Number 1st Form 8936, Schedule A, Line 2 (TY25 and prior) 69SD1 Form 8936 Schedule A Vehicle 1 Placed In Service Date 1st Form 8936, Schedule A, Line 3 (TY25 - TY23) 69SR1 Form 8936 Schedule A Vehicle 1 Sellers Report Transferred Amount 1st Form 8936, Schedule A, line 4a (TY25 - TY24) 69RI1 Form 8936 Schedule A Vehicle 1 Repayment Indicator 1st Form 8936, Schedule A, line 4b (TY25 - TY24) 69TC1 Form 8936 Schedule A Vehicle 1 Tentative Credit 1st Form 8936, Schedule A, Line 9 (TY25 - TY23) 69BP1 Form 8936 Schedule A Vehicle 1 Business Use Percentage 1st Form 8936, Schedule A, Line 10 (TY25 - TY23) 69PO1 Form 8936 Schedule A Previously Owned Clean Vehicle 1 Credit 1st Form 8936, Schedule A, Line 17 (TY25 - TY23) 69QC1 Form 8936 Schedule A Qualified Commercial Clean Vehicle 1 Credit 1st Form 8936, Schedule A, Line 26 (TY25 - TY23) 69VN2 Form 8936 Schedule A Vehicle 2 Identification Number 2nd Form 8936, Schedule A, Line 2 (TY25 and prior) 69SD2 Form 8936 Schedule A Vehicle 2 Placed In Service Date 2nd Form 8936, Schedule A, Line 3 (TY25 - TY23) 69SR2 Form 8936 Schedule A Vehicle 2 Sellers Report Transferred Amount 2nd Form 8936, Schedule A, line 4a (TY25 - TY24) 69RI2 Form 8936 Schedule A Vehicle 2 Repayment Indicator 2nd Form 8936, Schedule A, line 4b (TY25 - TY24) 69TC2 Form 8936 Schedule A Vehicle 2 Tentative Credit 2nd Form 8936, Schedule A, Line 9 (TY25 - TY23) 69BP2 Form 8936 Schedule A Vehicle 2 Business Use Percentage 2nd Form 8936, Schedule A, Line 10 (TY25 - TY23) 69PO2 Form 8936 Schedule A Previously Owned Clean Vehicle 2 Credit 2nd Form 8936, Schedule A, Line 17 (TY25 - TY23) 69QC2 Form 8936 Schedule A Qualified Commercial Clean Vehicle 2 Credit 2nd Form 8936, Schedule A, Line 26 (TY25 - TY23)

# Invalid Conditions

3.12.2.53.2 (01-01-2020) Invalid Conditions Section 69 fields will display as invalid if other than alpha or numeric.

# Correction Procedures

3.12.2.53.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Refer to Error Codes 297, 298, and 302.

# Field 69ADJ, Form 8936 Prior Year Modified Adjusted Gross Income Amount

3.12.2.53.3.1 (01-01-2024) Field 69ADJ, Form 8936 Prior Year Modified Adjusted Gross Income Amount TY25 - TY23, Form 8936 Prior Year Modified Adjusted Gross Income Amount is transcribed from Form 8936, line 4. Field 69ADJ can be positive or negative and up to 11 characters in length.

# Field 69PYF, Form 8936 Prior Year Filing Status

3.12.2.53.3.2 (01-01-2025) Field 69PYF, Form 8936 Prior Year Filing Status TY25 - TY24, Field 69PYF is transcribed from Form 8936, line 5, and is a one digit numeric field. The valid values are: 0 - Default 1 - Single taxpayer 2 - Married filing a joint return 3 - Married taxpayer filing a separate return 4 - Head of Household 5 - Qualifying surviving spouse

# Field 69CVP, Form 8936 New Clean Vehicle Partnership or S Corp Credit Amount

3.12.2.53.3.3 (01-01-2024) Field 69CVP, Form 8936 New Clean Vehicle Partnership or S Corp Credit Amount TY25 - TY23, Field 69CVP is transcribed from Form 8936, line 7.

# Field 69QVP, Form 8936 Qualified Commercial Vehicle Partnership or S Corp Credit Amount

3.12.2.53.3.4 (01-01-2024) Field 69QVP, Form 8936 Qualified Commercial Vehicle Partnership or S Corp Credit Amount TY25 - TY23, Field 69QVP is transcribed from Form 8936, line 20.

# Field 69AFI, Additional Form 8936 Schedule A Indicator

3.12.2.53.3.5 (01-01-2026) Field 69AFI, Additional Form 8936 Schedule A Indicator TY25 - TY23, Field 69AFI is a numeric only field, 1 position in length. When more than two Form 8936 Schedules A are attached, the additional Form 8936 Schedule A indicator will be edited on the first Form 8936 Schedule A, in the right margin beside the VIN. Valid values for Field 69AFI include: 0 if additional Forms 8936 Schedule A are not present. 1 if more than two Forms 8936 Schedules A are present.

# Fields 69VN1 and 69VN2, Form 8936 Schedule A Vehicle 1 and 2 Identification Number

3.12.2.53.3.6 (03-18-2025) Fields 69VN1 and 69VN2, Form 8936 Schedule A Vehicle 1 and 2 Identification Number TY25 and prior, Field 69VN1, Form 8936 Schedule A Vehicle 1 Identification Number, is transcribed from the first Form 8936 Schedule A, line 2 (TY22 and prior, Form 8936, line 2, column a). Field 69VN2, Form 8936 Schedule A Vehicle 2 Identification Number, is transcribed from the second Form 8936 Schedule A, line 2 (TY22 and prior, Form 8936, line 2, column b). Field 69VN1/69VN2 must be 17 alphanumeric positions. Field 69VN1/69VN2 cannot contain invalid characters of I, O, Q, signs, or spaces. If Field 69VN1/69VN2 displays as a field error based on the conditions above and is transcribed accurately, remove the entry.

# Fields 69SD1 and 69SD2, Form 8936 Schedule A Vehicle 1 and 2 Placed in Service Date

3.12.2.53.3.7 (01-01-2024) Fields 69SD1 and 69SD2, Form 8936 Schedule A Vehicle 1 and 2 Placed in Service Date TY25 - TY23, Field 69SD1, Form 8936 Schedule A Vehicle 1 Placed in Service Date, is transcribed from the first Form 8936 Schedule A, line 3. Field 69SD2, Form 8936 Schedule A Vehicle 2 Placed in Service Date, is transcribed from the second Form 8936 Schedule A, line 3. These fields are 8 numeric characters in length, and will display in YYYYMMDD format.

# Fields 69SR1 and 69SR2, Form 8936 Schedule A Vehicle 1 and 2 Sellers Report Transferred Amount

3.12.2.53.3.8 (01-01-2025) Fields 69SR1 and 69SR2, Form 8936 Schedule A Vehicle 1 and 2 Sellers Report Transferred Amount TY25 - TY24, Field 69SR1, Form 8936 Schedule A Vehicle 1 Sellers Report Transferred Amount is transcribed from the first Form 8936 Schedule A, line 4a. Field 69SR2, Form 8936 Schedule A Vehicle 2 Sellers Report Transferred Amount is transcribed from the second Form 8936 Schedule A, line 4a. Field 69SR1/69SR2 is positive, and up to 11 characters in length.

# Fields 69RI1 and 69RI2, Form 8936 Schedule A Vehicle 1 and Vehicle 2 Repayment Indicator

3.12.2.53.3.9 (01-01-2025) Fields 69RI1 and 69RI2, Form 8936 Schedule A Vehicle 1 and Vehicle 2 Repayment Indicator TY25 - TY24, Field 69RI1, Form 8936 Schedule A Vehicle 1 Repayment Indicator, is transcribed from the first Form 8936 Schedule A, line 4b. Field 69RI2, Form 8936 Schedule A Vehicle 2 Repayment Indicator, is transcribed from the second Form 8936 Schedule A, line 4b. Field 69RI1/69RI2 is one numeric character, and the valid values are: 0 - Default 1 - Box is checked

# Fields 69TC1 and 69TC2, Form 8936 Schedule A Vehicle 1 and 2 Tentative Credit Amount

3.12.2.53.3.10 (01-01-2024) Fields 69TC1 and 69TC2, Form 8936 Schedule A Vehicle 1 and 2 Tentative Credit Amount TY25 - TY23, Field 69TC1, Form 8936 Schedule A Vehicle 1 Tentative Credit Amount, is transcribed from the first Form 8936 Schedule A, line 9. Field 69TC2, Form 8936 Schedule A Vehicle 2 Tentative Credit Amount, is transcribed from the second Form 8936 Schedule A, line 9. Field 69TC1/69TC2 is positive and up to 11 characters in length.

# Fields 69BP1 and 69BP2, Form 8936 Schedule A Vehicle 1 and 2 Business Use Percentage

3.12.2.53.3.11 (01-01-2024) Fields 69BP1 and 69BP2, Form 8936 Schedule A Vehicle 1 and 2 Business Use Percentage TY25 - TY23, Field 69BP1, Form 8936 Schedule A Vehicle 1 Business Use Percentage, is transcribed from the first Form 8936 Schedule A, line 10. Field 69BP2, Form 8936 Schedule A Vehicle 2 Business Use Percentage, is transcribed from the second Form 8936 Schedule A, line 10. Field 69BP1/69BP2 is 3 numerical characters in length that includes one whole number with two decimal digits. Code and Edit will convert the percentage to a three-digit format. Add leading and/or subsequent zeros if needed to reach three digits. Example: 9% = 009, 25% = 025, 50% = 050, or 100% = 100.

# Fields 69PO1 and 69PO2, Form 8936 Schedule A Previously Owned Clean Vehicle 1 and 2 Credit

3.12.2.53.3.12 (01-01-2024) Fields 69PO1 and 69PO2, Form 8936 Schedule A Previously Owned Clean Vehicle 1 and 2 Credit TY25 - TY23, Field 69PO1, Form 8936 Schedule A Previously Owned Clean Vehicle 1 Credit, is transcribed from the first Form 8936 Schedule A, line 17. Field 69PO2, Form 8936 Schedule A Previously Owned Clean Vehicle 2 Credit, is transcribed from the second Form 8936 Schedule A, line 17. Field 69PO1/69PO2 is positive and up to 11 characters in length.

# Fields 69QC1 and 69QC2, Form 8936 Schedule A Qualified Commercial Clean Vehicle 1 and 2 Credit

3.12.2.53.3.13 (01-01-2024) Fields 69QC1 and 69QC2, Form 8936 Schedule A Qualified Commercial Clean Vehicle 1 and 2 Credit TY25 - TY23, Field 69QC1, Form 8936 Schedule A Qualified Commercial Clean Vehicle 1 Credit, is transcribed from the first Form 8936 Schedule A, line 26. Field 69QC2, Form 8936 Schedule A Qualified Commercial Clean Vehicle 2 Credit, is transcribed from the second Form 8936 Schedule A, line 26. Field 69QC1/69QC2 is positive and up to 11 characters in length.

# Section 70, Form 8867

3.12.2.54 (01-01-2017) Section 70, Form 8867 Form 8867, Paid Preparer's Due Diligence Checklist, is transcribed in Section 70.

# Error Record Format, Section 70

3.12.2.54.1 (01-01-2023) Error Record Format, Section 70 Section 70 consists of the following fields from Form 8867: Form 8867 Field Name Field Location 70EIC EIC Checkbox EIC column checkbox 70COD CTC-ACTC-ODC Checkbox CTC-ACTC-ODC column checkbox 70AOC AOTC Checkbox AOTC column checkbox 70HOH Head of Household Checkbox HOH column checkbox 7015 Form 8867 Answers Certification Code Line 15 Each Section 70 field contains one numeric digit.

# Invalid Conditions

3.12.2.54.2 (01-01-2020) Invalid Conditions Each field in Section 70 allows one numeric character.

# Correction Procedures

3.12.2.54.3 (01-01-2018) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. For TY11 and prior, delete Section 70. If a self-filer submits Form 8867 and an error or omission in the form causes a field or section error, DLSEC 70. Caution: Before deleting Section 70, make sure that the return is from a self-filer. Confirm that the section of the return called "Paid Preparer Use Only" shows no evidence of use by a paid preparer. In paper returns, self-filers may use the section for notes to the IRS or other purposes. Do not consider such use of the section by taxpayers evidence of use by a preparer.

# Field 70EIC, EIC Checkbox

3.12.2.54.3.1 (01-01-2018) Field 70EIC, EIC Checkbox Field 70EIC is transcribed from the checkboxes above line 1 of Form 8867. Enter 1 when EIC box is marked.

# Field 70COD, CTC-ACTC-ODC Checkbox

3.12.2.54.3.2 (01-01-2019) Field 70COD, CTC-ACTC-ODC Checkbox Field 70COD is transcribed from the checkboxes above line 1 of Form 8867. Enter 1 when CTC-ACTC-ODC box is marked.

# Field 70AOC, AOTC Checkbox

3.12.2.54.3.3 (01-01-2018) Field 70AOC, AOTC Checkbox Field 70AOC is transcribed from the checkboxes above line 1 of Form 8867. Enter 1 when AOTC box is marked.

# Field 70HOH, HOH Checkbox

3.12.2.54.3.4 (01-01-2020) Field 70HOH, HOH Checkbox TY18 and later returns, Field 70HOH is transcribed from the checkboxes above line 1 of Form 8867. Enter 1 when HOH box is marked.

# Field 7015, Form 8867 Answers Certification Code

3.12.2.54.3.5 (01-01-2020) Field 7015, Form 8867 Answers Certification Code Field 7015 is transcribed from line 15, Form 8867. Valid values for Field 7015 are as follows: 0 - Neither checkbox is checked (default). 1 - "Yes" checkbox is checked. 2 - "No" checkbox is checked or both "Yes" and "No" checkboxes are checked.

# Section 71, Form 8959

3.12.2.55 (01-01-2017) Section 71, Form 8959 Form 8959, Additional Medicare Tax, is transcribed in Section 71.

# Error Record Format, Section 71

3.12.2.55.1 (01-01-2023) Error Record Format, Section 71 Section 71 consists of the following fields from Form 8959: Form 8959 Field Name Field Location 7101 Medicare Wages Line 1 7102 Unreported Tips Form 4137 Line 2 7103 Wages from Form 8919 Line 3 7107 Additional Medicare Tax on Wages Line 7 7108 Self Employment Income Line 8 7113 Additional Medicare Tax on SE Income Line 13 7114 Railroad Retirement Compensation Line 14 7117 Additional Medicare Tax on Railroad Retirement (RRTA) Compensation Line 17 7118 Additional Medicare Tax Taxpayer Amount Line 18 7118V Additional Medicare Tax Verified ERS input only 7119 Medicare Tax Withheld Line 19 7123 Additional Medicare Tax Box 14 W-2 Line 23 7124 Total Additional Medicare Tax Withholding Line 24 All fields are numeric only.

# Invalid Conditions

3.12.2.55.2 (01-01-2020) Invalid Conditions All fields in Section 71 are numeric values only.

# Correction Procedures

3.12.2.55.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields.

# Field 7101, Medicare Wages

3.12.2.55.3.1 (01-01-2017) Field 7101, Medicare Wages Field 7101 is transcribed from line 1, Form 8959. The amount comes from the total of all Forms W-2, box 5.

# Field 7102, Unreported Tips Form 4137

3.12.2.55.3.2 (01-01-2017) Field 7102, Unreported Tips Form 4137 Field 7102 is transcribed from line 2, Form 8959. The amount comes from line 6, Form 4137.

# Field 7103, Wages from Form 8919

3.12.2.55.3.3 (01-01-2019) Field 7103, Wages from Form 8919 Field 7103 is transcribed from line 3, Form 8959. The amount comes from line 6, Form 8919.

# Field 7107, Additional Medicare Tax on Wages

3.12.2.55.3.4 (01-01-2017) Field 7107, Additional Medicare Tax on Wages Field 7107 is transcribed from line 7, Form 8959.

# Field 7108, Self Employment Income

3.12.2.55.3.5 (01-01-2023) Field 7108, Self Employment Income Field 7108 is transcribed from line 8, Form 8959. The amount comes from Schedule SE Part I, line 6.

# Field 7113, Additional Medicare Tax on SE Income

3.12.2.55.3.6 (01-01-2017) Field 7113, Additional Medicare Tax on SE Income Field 7113 is transcribed from line 13, Form 8959.

# Field 7114, Railroad Retirement Compensation

3.12.2.55.3.7 (01-01-2017) Field 7114, Railroad Retirement Compensation Field 7114 is transcribed from line 14, Form 8959. The amount comes from Form W-2, box 14.

# Field 7117, Additional Medicare Tax on Railroad Retirement (RRTA) Compensation

3.12.2.55.3.8 (01-01-2023) Field 7117, Additional Medicare Tax on Railroad Retirement (RRTA) Compensation Field 7117 is transcribed from line 17, Form 8959.

# Field 7118, Additional Medicare Tax Taxpayer Amount

3.12.2.55.3.9 (01-01-2017) Field 7118, Additional Medicare Tax Taxpayer Amount Field 7118 is transcribed from line 18, Form 8959.

# Field 7118V, Additional Medicare Tax Verified

3.12.2.55.3.10 (01-01-2017) Field 7118V, Additional Medicare Tax Verified Field 7118V is ERS input only. This field is only used when the computer cannot accurately compute Total Additional Medicare Tax (line 18).

# Field 7119, Medicare Tax Withheld

3.12.2.55.3.11 (01-01-2017) Field 7119, Medicare Tax Withheld Field 7119 is transcribed from line 19, Form 8959. The amount comes from Form W-2, box 6.

# Field 7123, Additional Medicare Tax Box 14 W-2

3.12.2.55.3.12 (01-01-2023) Field 7123, Additional Medicare Tax Box 14 W-2 Field 7123 is transcribed from line 23, Form 8959. The amount comes from Form W-2, box 14.

# Field 7124, Total Additional Medicare Tax Withholding

3.12.2.55.3.13 (01-01-2017) Field 7124, Total Additional Medicare Tax Withholding Field 7124 is transcribed from line 24, Form 8959.

# Section 72, Form 8960

3.12.2.56 (01-01-2017) Section 72, Form 8960 Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, is transcribed in Section 72.

# Error Record Format, Section 72

3.12.2.56.1 (01-01-2023) Error Record Format, Section 72 Section 72 consists of the following fields from Form 8960: Form 8960 Field Name Field Location 72IND Investment Income Indicator (check boxes) Part I, above line 1 7201 Taxable Interest Line 1 7202 Ordinary Dividends Line 2 7203 Annuities Line 3 7204A Rents, Royalties, and Partnerships Line 4a 7204B Adjustment for Net Income or Loss Line 4b 7205A Net Gains from Disposition of Property Line 5a 7205B Net Gain or Loss Line 5b 7205C Adjustment from disposition of Partnership Interest S Corp Line 5c 7206 Changes to CFCs and PFICs Line 6 7207 Other Modifications to Investment Income Line 7 7208 Total Investment Income Line 8 7209A Investment Interest Expense Line 9a 7209B State Income Tax Line 9b 7209C Miscellaneous Investment Expenses Line 9c 7210 Additional Modifications Line 10 7211 Total Deductions and Modifications Line 11 7213 Modified Adjusted Gross Income Line 13 7216 Form 8960 Taxable Investment Income Line 16 7217 Net Investment Income Tax Line 17 7217V Net Investment Income Tax Verified ERS input only All fields are numeric only.

# Invalid Conditions

3.12.2.56.2 (01-01-2020) Invalid Conditions Section 72 fields will display as invalid if other than numeric. Fields 7201 through 7217V are numeric and dollars only.

# Correction Procedures

3.12.2.56.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries on displayed fields. Additional correction procedures for Section 72 fields follow.

# Field 72IND, Investment Income Indicator

3.12.2.56.3.1 (01-01-2020) Field 72IND, Investment Income Indicator Field 72IND is transcribed from the boxes in Part I above line 1. Field 72IND is a one-character position and is coded as follows: 0 (zero) - No boxes checked 1 - Section 6013(g) election and no other box checked 2 - Reg. Section 1.1411-10g and no other box checked 3 - Both Section 6013(g) and Reg. Section 1.1411-10g election boxes checked 4 - Section 6013(h) election and no other box checked 5 - Both Section 6013(h) and Reg. Section 1.1411-10g election boxes checked

# Field 7201, Taxable Interest

3.12.2.56.3.2 (01-01-2019) Field 7201, Taxable Interest Field 7201 is transcribed from line 1, Form 8960. Field 7201 is dollars only and positive only. This amount comes from Form 1040, line 2b (TY17, line 8a).

# Field 7202, Ordinary Dividends

3.12.2.56.3.3 (01-01-2019) Field 7202, Ordinary Dividends Field 7202 is transcribed from line 2, Form 8960. Field 7202 is dollars only and positive only. This amount comes from Form 1040, line 3b (TY17, line 9a).

# Field 7203, Annuities

3.12.2.56.3.4 (01-01-2017) Field 7203, Annuities Field 7203 is transcribed from line 3, Form 8960. Field 7203 is dollars only and positive only.

# Field 7204A, Rents, Royalties, Partnerships

3.12.2.56.3.5 (01-01-2026) Field 7204A, Rents, Royalties, Partnerships Field 7204A is transcribed from line 4a, Form 8960, the field is dollars only and may be positive or negative. TY22 and later, this amount is the total of the amounts on Schedule 1, line 3, and Schedule 1, line 5. TY21 - TY13, this amount comes from Schedule 1, line 5 (TY18, Schedule 1, line 17; TY17, Form 1040, line 17).

# Field 7204B, Adjustment for Net Income or Loss

3.12.2.56.3.6 (01-01-2019) Field 7204B, Adjustment for Net Income or Loss Field 7204B is transcribed from line 4b, Form 8960. Field 7204B is dollars only and may be positive or negative.

# Field 7205A, Net Gains from Disposition of Property

3.12.2.56.3.7 (01-01-2020) Field 7205A, Net Gains from Disposition of Property Field 7205A is transcribed from line 5a, Form 8960. Field 7205A is dollars only and may be positive or negative. This amount is a combination of Form 1040, line 6 and Schedule 1, line 4 (TY18, lines 13 and 14, Schedule 1; TY17, lines 13 and 14, Form 1040).

# Field 7205B, Net Gain or Loss

3.12.2.56.3.8 (01-01-2017) Field 7205B, Net Gain or Loss Field 7205B is transcribed from line 5b, Form 8960. Field 7205B is dollars only and may be positive or negative.

# Field 7205C, Adjustment from Disposition of Partnership Interest S Corp

3.12.2.56.3.9 (01-01-2017) Field 7205C, Adjustment from Disposition of Partnership Interest S Corp Field 7205C is transcribed from line 5c, Form 8960. Field 7205C is dollars only and may be positive or negative.

# Field 7206, Changes for CFCs and PFICs

3.12.2.56.3.10 (01-01-2017) Field 7206, Changes for CFCs and PFICs Field 7206 is transcribed from line 6, Form 8960. Field 7206 is dollars only and may be positive or negative.

# Field 7207, Other Modification

3.12.2.56.3.11 (01-01-2017) Field 7207, Other Modification Field 7207 is transcribed from line 7, Form 8960.

# Field 7208, Total Investment Income

3.12.2.56.3.12 (01-01-2017) Field 7208, Total Investment Income Field 7208 is transcribed from line 8, Form 8960.

# Field 7209A, Investment Interest Expense

3.12.2.56.3.13 (01-01-2017) Field 7209A, Investment Interest Expense Field 7209A is transcribed from line 9a, Form 8960.

# Field 7209B, State Income Tax

3.12.2.56.3.14 (01-01-2017) Field 7209B, State Income Tax Field 7209B is transcribed from line 9b, Form 8960.

# Field 7209C, Miscellaneous Investment Expenses

3.12.2.56.3.15 (01-01-2017) Field 7209C, Miscellaneous Investment Expenses Field 7209C is transcribed from line 9c, Form 8960.

# Field 7210, Additional Modifications

3.12.2.56.3.16 (01-01-2017) Field 7210, Additional Modifications Field 7210 is transcribed from line 10, Form 8960.

# Field 7211, Total Deductions and Modifications

3.12.2.56.3.17 (01-01-2017) Field 7211, Total Deductions and Modifications Field 7211 is transcribed from line 11, Form 8960.

# Field 7213, Modified Adjusted Gross Income

3.12.2.56.3.18 (01-01-2017) Field 7213, Modified Adjusted Gross Income Field 7213 is transcribed from line 13, Form 8960.

# Field 7216, Form 8960 Taxable Investment Income

3.12.2.56.3.19 (01-01-2017) Field 7216, Form 8960 Taxable Investment Income Field 7216 is transcribed from line 16, Form 8960.

# Field 7217, Net Investment Income Tax

3.12.2.56.3.20 (01-01-2017) Field 7217, Net Investment Income Tax Field 7217 is transcribed from line 17, Form 8960.

# Field 7217V, Net Investment Income Tax Verified

3.12.2.56.3.21 (01-01-2017) Field 7217V, Net Investment Income Tax Verified Field 7217V is ERS input only. This field is used only when the computer cannot accurately compute Form 8960.

# Section 73, Form 8962, page 1 of 2 (ACA)

3.12.2.57 (01-01-2017) Section 73, Form 8962, page 1 of 2 (ACA) Form 8962, Premium Tax Credit (PTC), is used to figure the amount of any premium tax credit the taxpayer may be able to take and to reconcile any advance payment of the premium tax credit received by the taxpayer for TY14 and later. This form contains two sections. Page 1 is Section 73 and Page 2 is Section 74.

# Error Record Format, Section 73

3.12.2.57.1 (01-01-2023) Error Record Format, Section 73 Section 73 consists of the following fields from Form 8962, page 1: Form 8962, page 1 Field Name Field Location 73MFS Married Filing Separate PTC Exception Checkbox Indicator Below SSN box 7302B Dependents Modified AGI Line 2b 73SOR Federal Poverty Level State of Residence Checkbox Line 4 7308B Monthly Contribution for Health Care Line 8b 7311A Annual Premium Amount Line 11, column A 7311B Annual Premium of SLCSP Amount Line 11, column B 7311F Annual Advance PTC Line 11, column F 7312A January Monthly Premium Amount Line 12, column A 7312B January Monthly Premium of SLCSP Amount Line 12, column B 7312F January Monthly Advance PTC Line 12, column F 7313A February Monthly Premium Amount Line 13, column A 7313B February Monthly Premium of SLCSP Amount Line 13, column B 7313F February Monthly Advance PTC Line 13, column F 7314A March Monthly Premium Amount Line 14, column A 7314B March Monthly Premium of SLCSP Amount Line 14, column B 7314F March Monthly Advance PTC Line 14, column F 7315A April Monthly Premium Amount Line 15, column A 7315B April Monthly Premium of SLCSP Amount Line 15, column B 7315F April Monthly Advance PTC Line 15, column F 7316A May Monthly Premium Amount Line 16, column A 7316B May Monthly Premium of SLCSP Amount Line 16, column B 7316F May Monthly Advance PTC Line 16, column F 7317A June Monthly Premium Amount Line 17, column A 7317B June Monthly Premium of SLCSP Amount Line 17, column B 7317F June Monthly Advance PTC Line 17, column F 7318A July Monthly Premium Amount Line 18, column A 7318B July Monthly Premium of SLCSP Amount Line 18, column B 7318F July Monthly Advance PTC Line 18, column F 7319A August Monthly Premium Amount Line 19, column A 7319B August Monthly Premium of SLCSP Amount Line 19, column B 7319F August Monthly Advance PTC Line 19, column F 7320A September Monthly Premium Amount Line 20, column A 7320B September Monthly Premium of SLCSP Amount Line 20, column B 7320F September Monthly Advance PTC Line 20, column F 7321A October Monthly Premium Amount Line 21, column A 7321B October Monthly Premium of SLCSP Amount Line 21, column B 7321F October Monthly Advance PTC Line 21, column F 7322A November Monthly Premium Amount Line 22, column A 7322B November Monthly Premium of SLCSP Amount Line 22, column B 7322F November Monthly Advance PTC Line 22, column F 7323A December Monthly Premium Amount Line 23, column A 7323B December Monthly Premium of SLCSP Amount Line 23, column B 7323F December Monthly Advance PTC Line 23, column F 7324 Total Premium Tax Credit Line 24 7325 Advance Premium Tax Credit Line 25 All fields will be positive and dollars only. Exception: Fields 73MFS and 73SOR, see instructions for the field.

# Invalid Conditions

3.12.2.57.2 (01-01-2020) Invalid Conditions Fields in Section 73 will display as invalid if other than numeric, except Field 73SOR, Follow instructions for each field.

# Correction Procedures

3.12.2.57.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries on displayed fields. If the taxpayer provides more than one Form 8962, combine the forms onto one Form 8962.

# Field 73MFS, Married Filing Separate PTC Exception Checkbox Indicator

3.12.2.57.3.1 (01-01-2017) Field 73MFS, Married Filing Separate PTC Exception Checkbox Indicator Field 73MFS is transcribed from the checkbox regarding qualifying for an exception below the box titled "Your SSN" at the top of Form 8962. It is a one character field in length, and will be edited with the following values: "1" - box is checked. "blank" - box is not checked.

# Field 7302B, Dependents Modified AGI

3.12.2.57.3.2 (01-01-2017) Field 7302B, Dependents Modified AGI Field 7302B is transcribed from line 2b, Form 8962.

# Field 73SOR, Federal Poverty Level State of Residence Checkbox

3.12.2.57.3.3 (01-01-2017) Field 73SOR, Federal Poverty Level State of Residence Checkbox Field 73SOR is transcribed from the edit to the right of line 4, Form 8962. Code and Edit will edit one of the following values: A - Alaska box checked. B - Hawaii box checked. C - Other 48 states/DC, no box checked, or multiple boxes checked. If the checkbox has not been edited, enter the appropriate value from (1).

# Field 7308B, Monthly Contribution for Health Care

3.12.2.57.3.4 (01-01-2017) Field 7308B, Monthly Contribution for Health Care Field 7308B is transcribed from line 8b, Form 8962.

# Field 7311A, Annual Premium Amount

3.12.2.57.3.5 (01-01-2017) Field 7311A, Annual Premium Amount Field 7311A is transcribed from line 11, column a, Form 8962.

# Field 7311B, Annual Premium of SLCSP Amount

3.12.2.57.3.6 (01-01-2017) Field 7311B, Annual Premium of SLCSP Amount Field 7311B is transcribed from line 11, column b, Form 8962.

# Field 7311F, Annual Advance PTC

3.12.2.57.3.7 (01-01-2017) Field 7311F, Annual Advance PTC Field 7311F is transcribed from line 11, column f, Form 8962.

# Fields 7312A, 7313A, 7314A, 7315A, 7316A, 7317A, 7318A, 7319A, 7320A, 7321A, 7322A, and 7323A, Monthly Premium Amount

3.12.2.57.3.8 (01-01-2017) Fields 7312A, 7313A, 7314A, 7315A, 7316A, 7317A, 7318A, 7319A, 7320A, 7321A, 7322A, and 7323A, Monthly Premium Amount Fields 7312A through 7323A are transcribed from column a, lines 12 through 23 of Form 8962, for each month (January - December).

# Fields 7312B, 7313B, 7314B, 7315B, 7316B, 7317B, 7318B, 7319B, 7320B, 7321B, 7322B, and 7323B, Monthly Premium of SLCSP Amount

3.12.2.57.3.9 (01-01-2017) Fields 7312B, 7313B, 7314B, 7315B, 7316B, 7317B, 7318B, 7319B, 7320B, 7321B, 7322B, and 7323B, Monthly Premium of SLCSP Amount Fields 7312B through 7323B are transcribed from column b, lines 12 through 23 of Form 8962, for each month (January - December).

# Fields 7312F, 7313F, 7314F, 7315F, 7316F, 7317F, 7318F, 7319F, 7320F, 7321F, 7322F, and 7323F, Monthly Advance PTC

3.12.2.57.3.10 (01-01-2017) Fields 7312F, 7313F, 7314F, 7315F, 7316F, 7317F, 7318F, 7319F, 7320F, 7321F, 7322F, and 7323F, Monthly Advance PTC Fields 7312F through 7323F are transcribed from column f, lines 12 through 23 of Form 8962, for each month (January - December).

# Field 7324, Total Premium Tax Credit

3.12.2.57.3.11 (01-01-2017) Field 7324, Total Premium Tax Credit Field 7324 is transcribed from line 24, Form 8962.

# Field 7325, Advance Premium Tax Credit

3.12.2.57.3.12 (01-01-2017) Field 7325, Advance Premium Tax Credit Field 7325 is transcribed from line 25, Form 8962.

# Section 74, Form 8962, page 2 of 2 (ACA)

3.12.2.58 (01-01-2017) Section 74, Form 8962, page 2 of 2 (ACA) Form 8962, Premium Tax Credit (PTC), is used to figure the amount of any premium tax credit the taxpayer may be able to take and to reconcile any advance payment of the premium tax credit received by the taxpayer for TY14 and later. This form contains two sections. Page 1 is Section 73, and Page 2 is Section 74.

# Error Record Format, Section 74

3.12.2.58.1 (01-01-2023) Error Record Format, Section 74 Section 74 consists of the following fields from Form 8962, page 2: Form 8962, page 2 Field Name Field Location 7430A Policy Number 1 Line 30a 7430B SSN of Filer Sharing Allocation 1 Line 30b 7430C Allocation Start Month 1 Line 30c 7430D Allocation Stop Month 1 Line 30d 7430E Premium Percentage 1 Line 30e 7430F SLCSP Percentage 1 Line 30f 7430G Advance PTC Percentage 1 Line 30g 7431A Policy Number 2 Line 31a 7431B SSN of Filer Sharing Allocation 2 Line 31b 7431C Allocation Start Month 2 Line 31c 7431D Allocation Stop Month 2 Line 31d 7431E Premium Percentage 2 Line 31e 7431F SLCSP Percentage 2 Line 31f 7431G Advance PTC Percentage 2 Line 31g 7432A Policy Number 3 Line 32a 7432B SSN of Filer Sharing Allocation 3 Line 32b 7432C Allocation Start Month 3 Line 32c 7432D Allocation Stop Month 3 Line 32d 7432E Premium Percentage 3 Line 32e 7432F SLCSP Percentage 3 Line 32f 7432G Advance PTC Percentage 3 Line 32g 7433A Policy Number 4 Line 33a 7433B SSN of Filer Sharing Allocation 4 Line 33b 7433C Allocation Start Month 4 Line 33c 7433D Allocation Stop Month 4 Line 33d 7433E Premium Percentage 4 Line 33e 7433F SLCSP Percentage 4 Line 33f 7433G Advance PTC Percentage 4 Line 33g 7435A Primary Alternative Family Size Line 35a 7435B Primary Monthly Contribution Line 35b 7435C Primary Alternative Start Month Line 35c 7435D Primary Alternative Stop Month Line 35d 7436A Spouse Alternative Family Size Line 36a 7436B Spouse Monthly Contribution Line 36b 7436C Spouse Alternative Start Month Line 36c 7436D Spouse Alternative Stop Month Line 36d

# Invalid Conditions

3.12.2.58.2 (01-01-2017) Invalid Conditions Follow instructions for each field.

# Correction Procedures

3.12.2.58.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries on displayed fields.

# Fields 7430A, 7431A, 7432A, and 7433A, Policy Number 1/2/3/4

3.12.2.58.3.1 (01-01-2017) Fields 7430A, 7431A, 7432A, and 7433A, Policy Number 1/2/3/4 Fields 7430A, 7431A, 7432A and 7433A are transcribed from lines 30a, 31a, 32a, and 33a, Form 8962. Each field is 15 characters in length and can contain alpha, numeric, special characters, and spaces. Exchanges are reporting policy numbers with more than 15 characters on Form 1095-A. MeF will record the "right-most" 15 characters from lines 30a, 31a, 32a, or 33a. Caution: The Policy Number field must contain an entry in "all" fifteen spaces of the field. If the policy number is less than fifteen characters, left fill the number with zeros "0" . For example: 000000123456789. Fields 7430A and 7431A, the last position of the fifteen characters is column "21" . Fields 7432A and 7433A, the last position of the fifteen characters is column "49" . If all 15 characters are not filled, EC 194 will redisplay. If the policy number has more than 15 characters, Code and Edit will edit a straight line to the left of the first character to be transcribed. Note: A space is considered a character. If a space is shown as part of the policy number, it must be shown on the computer screen.

# Fields 7430B, 7431B, 7432B, and 7433B, SSN of Filer Sharing Allocation 1/2/3/4

3.12.2.58.3.2 (01-01-2017) Fields 7430B, 7431B, 7432B, and 7433B, SSN of Filer Sharing Allocation 1/2/3/4 Fields 7430B, 7431B, 7432B, and 7433B are transcribed from lines 30b, 31b, 32b, and 33b, Form 8962. Each field is numeric only and 9 characters in length.

# Fields 7430C, 7431C 7432C, and 7433C, Allocation Start Month 1/2/3/4

3.12.2.58.3.3 (01-01-2024) Fields 7430C, 7431C 7432C, and 7433C, Allocation Start Month 1/2/3/4 Fields 7430C, 7431C, 7432C, and 7433C are transcribed from lines 30c, 31c, 32c, and 33c, Form 8962. If start month is missing, use Part 2 to determine the start month, and enter in the appropriate field. See IRM 3.12.2.58.3.16 for Month values. The field is numeric only and 2 characters in length.

# Fields 7430D, 7431D, 7432D, and 7433D, Allocation Stop Month 1/2/3/4

3.12.2.58.3.4 (01-01-2024) Fields 7430D, 7431D, 7432D, and 7433D, Allocation Stop Month 1/2/3/4 Fields 7430D, 7431D, 7432D, and 7433D are transcribed from lines 30d, 31d, 32d, and 33d, Form 8962. If stop month is missing, use Part 2 to determine the stop month, and enter in the appropriate field. See IRM 3.12.2.58.3.16 for Month values. The field is numeric only and 2 characters in length.

# Fields 7430E, 7431E, 7432E, and 7433E, Premium Percentage 1/2/3/4

3.12.2.58.3.5 (03-22-2017) Fields 7430E, 7431E, 7432E, and 7433E, Premium Percentage 1/2/3/4 Fields 7430E, 7431E, 7432E, and 7433E are transcribed from lines 30e, 31e, 32e, and 33e, Form 8962. The field is numeric only and 3 characters in length. Code and Edit will convert the percentage to a three-digit format - no decimal. Add leading and/or subsequent zeros if needed to reach three digits. Example: 9% = 009, 25% = 025, 50% = 050, or 100% = 100

# Fields 7430F, 7431F, 7432F, and 7433F, SLCSP Percentage 1/2/3/4

3.12.2.58.3.6 (03-22-2017) Fields 7430F, 7431F, 7432F, and 7433F, SLCSP Percentage 1/2/3/4 Fields 7430F, 7431F, 7432F, and 7433F are transcribed from lines 30f, 31f, 32f, and 33f, Form 8962. The field is numeric only and 3 characters in length. Code and Edit will convert the percentage to a three-digit format - no decimal. Add leading and/or subsequent zeros if needed to reach three digits. Example: 9% = 009, 25% = 025, 50% = 050, or 100% = 100

# Fields 7430G, 7431G, 7432G, and 7433G, Advance PTC Percentage 1/2/3/4

3.12.2.58.3.7 (03-22-2017) Fields 7430G, 7431G, 7432G, and 7433G, Advance PTC Percentage 1/2/3/4 Fields 7430G, 7431G, 7432G, and 7433G are transcribed from lines 30g, 31g, 32g, and 33g, Form 8962. The field is numeric only and 3 characters in length. Code and Edit will convert the percentage to a three-digit format - no decimal. Add leading and/or subsequent zeros if needed to reach three digits. Example: 9% = 009, 25% = 025, 50% = 050, or 100% = 100

# Field 7435A, Primary Alternative Family Size

3.12.2.58.3.8 (01-01-2024) Field 7435A, Primary Alternative Family Size Field 7435A is transcribed from line 35a, Form 8962. The field is numeric only and 2 characters in length. If family size is 1, 2, 3, 4, 5, 6, 7, 8, or 9, place a leading "0" (zero) before the number. Example: If "4" has been entered on line 35a, enter "04" in Field 7435A.

# Field 7435B, Primary Monthly Contribution

3.12.2.58.3.9 (01-01-2017) Field 7435B, Primary Monthly Contribution Field 7435B is transcribed from line 35b. The field is numeric and dollars only.

# Field 7435C, Primary Alternative Start Month

3.12.2.58.3.10 (01-01-2024) Field 7435C, Primary Alternative Start Month Field 7435C is transcribed from line 35c. If start month is missing, use Part 2 to determine the start month, and enter in the appropriate field. See IRM 3.12.2.58.3.16 for Month values. The field is numeric only and 2 characters in length.

# Field 7435D, Primary Alternative Stop Month

3.12.2.58.3.11 (01-01-2024) Field 7435D, Primary Alternative Stop Month Field 7435D is transcribed from line 35d. If stop month is missing, use Part 2 to determine the stop month, and enter in the appropriate field. See IRM 3.12.2.58.3.16 for Month values. The field is numeric only and 2 characters in length.

# Field 7436A, Spouse Alternative Family Size

3.12.2.58.3.12 (01-01-2024) Field 7436A, Spouse Alternative Family Size Field 7436A is transcribed from line 36a. The field is numeric only and 2 characters in length. If family size is shown as 1, 2, 3, 4, 5, 6, 7, 8, or 9, place a leading "0" (zero) before the number. Example: If "4" has been entered on line 36a, enter "04" in Field 7436A.

# Field 7436B, Spouse Monthly Contribution

3.12.2.58.3.13 (01-01-2017) Field 7436B, Spouse Monthly Contribution Field 7436B is transcribed from line 36b. The field is numeric and dollars only.

# Field 7436C, Spouse Alternative Start Month

3.12.2.58.3.14 (01-01-2024) Field 7436C, Spouse Alternative Start Month Field 7436C is transcribed from line 36c. If start month is missing, use Part 2 to determine the start month, and enter in the appropriate field. See IRM 3.12.2.58.3.16 for Month values. The field is numeric only and 2 characters in length.

# Field 7436D, Spouse Alternative Stop Month

3.12.2.58.3.15 (01-01-2024) Field 7436D, Spouse Alternative Stop Month This field is transcribed from line 36d. If stop month is missing, use Part 2 to determine the stop month, and enter in the appropriate field. See IRM 3.12.2.58.3.16 for Month values. The field is numeric only and 2 characters in length.

# Values of Fields 7430C, 7430D, 7431C, 7431D, 7432C, 7432D, 7433C, 7433D, 7435C, 7435D, 7436C, and 7436D

3.12.2.58.3.16 (01-01-2017) Values of Fields 7430C, 7430D, 7431C, 7431D, 7432C, 7432D, 7433C, 7433D, 7435C, 7435D, 7436C, and 7436D The start/stop month values are: Value Month Value Month Value Month 01 January 05 May 09 September 02 February 06 June 10 October 03 March 07 July 11 November 04 April 08 August 12 December

# Section 75, Form 5695

3.12.2.59 (01-01-2026) Section 75, Form 5695 Form 5695, Residential Energy Credits, is used to claim the Residential Clean Energy Credit or the Energy Efficient Home Improvement Credit. Part I, Residential Clean Energy Credits, is claimed on Schedule 3, line 5a (Field 0505A). Part II, Energy Efficient Home Improvement Credit, is claimed on Schedule 3, line 5b (Field 0505B). Refer to EC 291 and 292. Taxpayers attach Form 5695 if an amount is present on Schedule 3, line 5a and/or line 5b.

# Error Record Format, Section 75

3.12.2.59.1 (01-01-2026) Error Record Format, Section 75 Section 75 consists of the following fields from Form 5695, Residential Energy Credits: Form 5695 Field Name Field Location 75001 Qualified Solar Electric Property Costs Line 1 75002 Qualified Solar Water Heating Property Costs Line 2 75003 Qualified Small Wind Energy Property Costs Line 3 75004 Qualified Geothermal Heat Pump Property Costs Line 4 7505A Qualified Battery Storage Technology Indicator Checkbox, line 5a 7505B Qualified Battery Technology Costs Line 5b 7507A Qualified Fuel Cell Property Indicator Checkbox, line 7a 7507C Part I Joint Occupancy Indicator Checkbox, line 7c 75008 Qualified Fuel Cell Property Costs Line 8 75010 Kilowatt Capacity Left of line 10 75012 Credit Carryforward From Prior Year Line 12 75016 Credit Carryforward To Next Year Line 16 75QPC Qualified Manufacturer Identification Number (QMID) Processing Codes ERS Input only 7517A Qualified Energy Efficiency Improvements Indicator Checkbox, line 17a 7517B Original User Indicator Checkbox, line 17b 7517C Components Expected To Remain In Use Indicator Checkbox, line 17c 7518A Insulation Material Costs Line 18a 7519A Most Expensive Door Costs Line 19a 7519B Most Expensive Door QMID Line 19b 75OD1 Other Exterior Door QMID 1 Line 19d(i) 75OD2 Other Exterior Door QMID 2 Line 19d(ii) 7519F Other Exterior Doors Costs Line 19f 75EW1 Exterior Windows QMID 1 Line 20a(i) 75EW2 Exterior Windows QMID 2 Line 20a(ii) 75EW3 Exterior Windows QMID 3 Line 20a(iii) 75EW4 Exterior Windows QMID 4 Line 20a(iv) 7520C Exterior Windows Costs Line 20c 7521A Qualified Property Installation Indicator Checkbox, line 21a 7521B Original Service Indicator Checkbox, line 21b 7522A Central Air Conditioner QMID Line 22a 7522C Central Air Conditioner Costs Line 22c 75WH1 Gas Propane Oil Water Heater QMID 1 Line 23a(i) 75WH2 Gas Propane Oil Water Heater QMID 2 Line 23a(ii) 7523C Gas Propane Oil Water Heater Costs Line 23c 7524A Gas Propane Oil Furnace or Boiler QMID Line 24a 7524C Gas Propane Oil Furnace or Boiler Costs Line 24c 7525A Panelboards or Circuits Enabling Code Line 25a 7525B Panelboards or Circuits Enabled Type Codes Line 25b 7525C Panelboards or Circuits Costs Line 25c 75PC1 Panelboards or Circuits QMID 1 Line 25d(i) 75PC2 Panelboards or Circuits QMID 2 Line 25d(ii) 7526A Home Energy Audit Indicator Checkbox, line 26a 7526B Home Energy Audit Costs Line 26b 7529A Most Expensive Heat Pump Costs Line 29a 75MEP Most Expensive Heat Pump QMID Below line 29a 7529B Other Heat Pump Costs Line 29b 7529C Most Expensive Heat Pump Water Heater Costs Line 29c 75HPW Most Expensive Heat Pump Water Heater QMID Below line 29c 7529D Other Heat Pump Water Heater Costs Line 29d 7529E Most Expensive Biomass Stove and Boiler Costs Line 29e 75BSB Most Expensive Biomass Stove or Boiler QMID Below line 29e 7529F Other Biomass Stove and Boiler Costs Line 29f 7532A Part II Joint Occupancy Indicator Checkbox, line 32a 7532B Condominium or Cooperative Indicator Line 32b All money amount fields must be positive.

# Invalid Conditions

3.12.2.59.2 (01-01-2024) Invalid Conditions Fields in Section 75 will display as invalid if not all numeric.

# Correction Procedures

3.12.2.59.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Refer to Error Code 291 and 292.

# Fields 75001, 75002, 75003, and 75004

3.12.2.59.3.1 (01-01-2024) Fields 75001, 75002, 75003, and 75004 Field 75001, Qualified Solar Electric Property Costs, is transcribed from line 1, Form 5695. Field 75002, Qualified Solar Water Heating Property Costs, is transcribed from line 2, Form 5695. Field 75003, Qualified Small Wind Energy Property Costs, is transcribed from line 3, Form 5695. Field 75004, Qualified Geothermal heat Pump Property Costs, is transcribed from line 4, Form 5695. These fields are 11 numeric characters in length.

# Field 7505A, Qualified Battery Storage Technology Indicator

3.12.2.59.3.2 (01-01-2024) Field 7505A, Qualified Battery Storage Technology Indicator Field 7505A is transcribed from the checkbox on line 5a, Form 5695. Qualified Battery Storage Technology Indicator is one position in length, and the valid entries are as follows: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7505B, Qualified Battery Technology Costs

3.12.2.59.3.3 (01-01-2024) Field 7505B, Qualified Battery Technology Costs Field 7505B, Qualified Battery Technology Costs, is transcribed from line 5b, Form 5695. This field is 11 numeric characters in length, and positive only.

# Field 7507A, Qualified Fuel Cell Property Indicator

3.12.2.59.3.4 (02-26-2024) Field 7507A, Qualified Fuel Cell Property Indicator Field 7507A is transcribed from the checkbox on line 7a, Form 5695. Qualified Fuel Cell Property Indicator is one position in length, and the valid entries are as follows: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7507C, Part I Joint Occupancy Indicator

3.12.2.59.3.5 (01-01-2025) Field 7507C, Part I Joint Occupancy Indicator Field 7507C, Part I Joint Occupancy Indicator, is transcribed from the checkbox on line 7c, Form 5695. Field 7507C is one position in length, and the valid entries are as follows: 0: Box is not checked (default) 1: Box is checked

# Fields 75008, 75010, 75012, and 75016

3.12.2.59.3.6 (01-01-2026) Fields 75008, 75010, 75012, and 75016 Field 75008, Qualified Fuel Cell Property Costs, is transcribed from line 8, Form 5695. This field is 11 numeric characters in length, and positive only. Field 75010, Kilowatt Capacity, is transcribed from line 10, Form 5695. This field is 8 positive numerical characters in length, with two decimal positions to be transcribed as a whole number. Code and Edit will convert Kilowatt Capacity to a whole number not exceeding 8 numerical characters in length. The first 6 positions represent the characters before the decimal, and the last 2 positions represent the characters after the decimal. See the following table for examples. Note: If there are fewer than 6 digits to the left of the decimal or fewer than 2 digits to the right of the decimal, add enough leading or trailing zeros to meet the 8 character requirement. Do not enter the decimal point in Field 75010. Kilowatt Capacity Entered as Decimal Enter in Field 75010 .7 00000070 .98765 00000098 3.0 00000300 12.96 00001296 123 00012300 222.33 00022233 333.98765 00033398 1234567890 56789000 First 6 digits closest to the left of the decimal and first 2 digits to the right of the decimal. 1234567890.987654321987 56789098 First 6 digits closest to the left of the decimal and first 2 digits to the right of the decimal. Field 75012, Credit Carryforward From Prior Year amount, is transcribed from line 12, Form 5695. This field is 11 numeric characters in length, and positive only. Field 75016, Credit Carryforward To Next Year amount, is transcribed from line 16, Form 5695. This field is 11 numeric characters in length, and positive only.

# Field 75QPC, Qualified Manufacturer Identification Number (QMID) Processing Codes

3.12.2.59.3.7 (01-01-2026) Field 75QPC, Qualified Manufacturer Identification Number (QMID) Processing Codes Field 75QPC, QMID Processing Codes, is for ERS input only and can contain up to 10 alphanumeric characters. Valid values: A - QMIDs Processing Code for Most Expensive Doors B - QMIDs Processing Code for Other Exterior Doors C - QMIDs Processing Code for Exterior Windows D - QMIDs Processing Code for Central Air Conditioners E - QMIDs Processing Code for Gas Propane Oil Water Heaters F - QMIDs Processing Code for Gas Propane Oil Furnaces or Boilers G - QMIDs Processing Code for Panelboards or Circuits H - QMIDs Processing Code for Most Expensive Heat Pumps I - QMIDs Processing Code for Most Expensive Heat Pump Water Heaters J - QMIDs Processing Code for Most Expensive Biomass Stoves or Boilers

# Field 7517A, Qualified Energy Efficiency Improvements Indicator

3.12.2.59.3.8 (01-01-2024) Field 7517A, Qualified Energy Efficiency Improvements Indicator Field 7517A is transcribed from the checkbox on line 17a, Form 5695. Qualified Energy Efficiency Improvements Indicator is one position in length, and the valid entries are as follows: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7517B, Original User Indicator

3.12.2.59.3.9 (01-01-2024) Field 7517B, Original User Indicator Field 7517B is transcribed from the checkbox on line 17b, Form 5695. Original Use Indicator is one position in length, and the valid entries are as follows: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7517C, Components Expected To Remain In Use Indicator

3.12.2.59.3.10 (01-01-2024) Field 7517C, Components Expected To Remain In Use Indicator Field 7517C is transcribed from the checkbox on line 17c, Form 5695. Components Expected To Remain In Use Indicator is one position in length, and the valid entries are as follows: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7518A, Insulation Material Costs, and Field 7519A, Most Expensive Door Costs

3.12.2.59.3.11 (01-01-2026) Field 7518A, Insulation Material Costs, and Field 7519A, Most Expensive Door Costs Field 7518A, Insulation Material Costs, is transcribed from line 18a, Form 5695. Field 7519A, Most Expensive Door Costs, is transcribed from line 19a, Form 5695. These fields are 11 numeric characters in length, and positive only.

# Field 7519B, Most Expensive Door QMID, and Field 75OD1/75OD2, Other Exterior Door QMID 1/2

3.12.2.59.3.12 (01-01-2026) Field 7519B, Most Expensive Door QMID, and Field 75OD1/75OD2, Other Exterior Door QMID 1/2 Field 7519B, Most Expensive Door QMID, is transcribed from line 19b, Form 5695. Field 75OD1, Other Exterior Door QMID 1, is transcribed from line 19d(i), Form 5695. Field 75OD2, Other Exterior Door QMID 2, is transcribed from line 19d(ii), Form 5695. These fields are 17 positions in length, and alphanumeric.

# Field 7519F, Other Exterior Doors Costs

3.12.2.59.3.13 (01-01-2026) Field 7519F, Other Exterior Doors Costs Field 7519F, Other Exterior Doors Costs, is transcribed from line 19f, Form 5695 (TY24, line 19c). This field is 11 numeric characters in length, and positive only.

# Fields 75EW1 through 75EW4, Exterior Windows QMID 1/2/3/4

3.12.2.59.3.14 (01-01-2026) Fields 75EW1 through 75EW4, Exterior Windows QMID 1/2/3/4 Field 75EW1, Exterior Windows QMID 1, is transcribed from line 20a(i), Form 5695. Field 75EW2, Exterior Windows QMID 2, is transcribed from line 20a(ii), Form 5695. Field 75EW3, Exterior Windows QMID 3, is transcribed from line 20a(iii), Form 5695. Field 75EW4, Exterior Windows QMID 4, is transcribed from line 20a(iv), Form 5695. These fields are 17 positions in length and alphanumeric.

# Field 7520C, Exterior Windows Costs

3.12.2.59.3.15 (01-01-2026) Field 7520C, Exterior Windows Costs Field 7520C, Exterior Windows Costs, is transcribed from line 20c, Form 5695 (TY24, line 20a). This field is 11 numeric characters in length, and positive only.

# Field 7521A, Qualified Property Installation Indicator

3.12.2.59.3.16 (01-01-2024) Field 7521A, Qualified Property Installation Indicator Field 7521A is transcribed from the checkbox on line 21a, Form 5695. Qualified Property Installation Indicator is one position in length, and the valid entries are as follows: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7521B, Original Service Indicator

3.12.2.59.3.17 (01-01-2024) Field 7521B, Original Service Indicator Field 7521B is transcribed from the checkbox on line 21b, Form 5695. Original Service Indicator is one position in length, and the valid entries are as follows: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7522A, Central Air Conditioner QMID

3.12.2.59.3.18 (01-01-2026) Field 7522A, Central Air Conditioner QMID Field 7522A, Central Air Conditioner QMID, is transcribed from line 22a, Form 5695. This field is 17 positions in length and alphanumeric.

# Field 7522C, Central Air Conditioner Costs

3.12.2.59.3.19 (01-01-2026) Field 7522C, Central Air Conditioner Costs Field 7522C, Central Air Conditioner Costs, is transcribed from line 22c, Form 5695 (TY24, line 22a). This field is 11 numeric characters in length, and positive only.

# Fields 75WH1 and 75WH2, Gas Propane Oil Water Heater QMID 1/2

3.12.2.59.3.20 (01-01-2026) Fields 75WH1 and 75WH2, Gas Propane Oil Water Heater QMID 1/2 Field 75WH1, Gas Propane Oil Water Heater QMID 1, is transcribed from line 23a(i), Form 5695. Field 75WH2, Gas Propane Oil Water Heater QMID 2, is transcribed from line 23a(ii), Form 5695. These fields are 17 positions in length and alphanumeric.

# Field 7523C, Gas Propane Oil Water Heater Costs

3.12.2.59.3.21 (01-01-2026) Field 7523C, Gas Propane Oil Water Heater Costs Field 7523C, Gas Propane Oil Water Heater Costs, is transcribed from line 23c, Form 5695 (TY24, line 23a). This field is 11 numeric characters in length, and positive only.

# Field 7524A, Gas Propane Oil Furnace or Boiler QMID

3.12.2.59.3.22 (01-01-2026) Field 7524A, Gas Propane Oil Furnace or Boiler QMID Field 7524A, Gas Propane Oil Furnace or Boiler QMID, is transcribed from line 24a, Form 5695. This field is 17 positions in length and alphanumeric.

# Field 7524C, Gas Propane Oil Furnace or Boiler Costs

3.12.2.59.3.23 (01-01-2026) Field 7524C, Gas Propane Oil Furnace or Boiler Costs Field 7524A, Natural Gas Propane Oil Furnace or Boiler Costs, is transcribed from line 24c, Form 5695 (TY24, line 24a). This field is 11 numeric characters in length, and positive only.

# Field 7525A, Panelboards or Circuits Enabling Code

3.12.2.59.3.24 (01-01-2026) Field 7525A, Panelboards or Circuits Enabling Code Field 7525A, Panelboards or Circuits Enabling Code, is transcribed from line 25a, Form 5695. Field 7525A is one position in length, and the valid values are: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7525B, Panelboards or Circuits Enabled Type Codes

3.12.2.59.3.25 (01-01-2026) Field 7525B, Panelboards or Circuits Enabled Type Codes Field 7525B, Panelboards or Circuits Enabled Type Codes, is transcribed from the seven entry spaces on line 25b, Form 5695. Field 7525B is 7 alphanumeric positions in length, and the valid values are: Blank: Default A: Windows and skylights, line 20a B: Central air conditioners, line 22a C: Natural gas, propane, and oil water heaters, line 23a D: Natural gas, propane, and oil furnaces or hot water boilers, line 24a E: Electric or natural gas heat pumps, line 29a F: Electric or natural gas heat pump water heaters, line 29c G: Biomass stoves or boilers, line 29e

# Field 7525C, Panelboards or Circuits Costs

3.12.2.59.3.26 (01-01-2024) Field 7525C, Panelboards or Circuits Costs Field 7525C, Panelboards Circuits or Feeders Costs, is transcribed from line 25c, Form 5695 (TY24, line 25a). This field is 11 numeric characters in length, positive, and dollars only.

# Fields 75PC1 and 75PC2, Panelboards or Circuits QMID 1/2

3.12.2.59.3.27 (01-01-2026) Fields 75PC1 and 75PC2, Panelboards or Circuits QMID 1/2 Field 75PC1, Panelboards or Circuits QMID 1, is transcribed from line 25d(i), Form 5695. Field 75PC2, Panelboards or Circuits QMID 2, is transcribed from line 25d(ii), Form 5695. These fields are 17 positions in length and alphanumeric.

# Field 7526A, Home Energy Audit Indicator

3.12.2.59.3.28 (01-01-2024) Field 7526A, Home Energy Audit Indicator Field 7526A is transcribed from the checkbox on line 26a, Form 5695. Home Energy Audit Indicator is one position in length, and the valid entries are as follows: 0: Neither box is checked 1: Yes box is checked 2: No box is checked 3: Both boxes are checked

# Field 7526B, Home Energy Audit Costs

3.12.2.59.3.29 (01-01-2024) Field 7526B, Home Energy Audit Costs Field 7526B, Home Energy Audit Costs, is transcribed from line 26b, Form 5695. This field is 11 numeric characters in length, and positive only.

# Field 7529A, Most Expensive Heat Pump Costs

3.12.2.59.3.30 (01-01-2026) Field 7529A, Most Expensive Heat Pump Costs Field 7529A, Most Expensive Heat Pump Costs, is transcribed from line 29a, Form 5695. This field is 11 numeric characters in length, positive, and dollars only.

# Field 75MEP, Most Expensive Heat Pump QMID

3.12.2.59.3.31 (01-01-2026) Field 75MEP, Most Expensive Heat Pump QMID Field 75MEP, Most Expensive Heat Pump QMID, is transcribed from below line 29a, Form 5695. This field is 17 positions in length and alphanumeric.

# Field 7529B, Other Heat Pump Costs, and Field 7529C, Most Expensive Heat Pump Water Heater Costs

3.12.2.59.3.32 (01-01-2026) Field 7529B, Other Heat Pump Costs, and Field 7529C, Most Expensive Heat Pump Water Heater Costs Field 7529B, Other Heat Pump Costs, is transcribed from line 29b, Form 5695. Field 7529C, Most Expensive Heat Pump Water Heater Costs, is transcribed from line 29c, Form 5695 (TY24, line 29b) These fields are 11 numeric characters in length, positive, and dollars only.

# Field 75HPW, Most Expensive Heat Pump Water Heater QMID

3.12.2.59.3.33 (01-01-2026) Field 75HPW, Most Expensive Heat Pump Water Heater QMID Field 75HPW, Most Expensive Heat Pump Water Heater QMID, is transcribed from below line 29c, Form 5695. This field is 17 positions in length and alphanumeric.

# Field 7529D, Other Heat Pump Water Heater Costs, and Field 7529E, Most Expensive Biomass Stove or Boiler Costs

3.12.2.59.3.34 (01-01-2026) Field 7529D, Other Heat Pump Water Heater Costs, and Field 7529E, Most Expensive Biomass Stove or Boiler Costs Field 7529D, Other Heat Pump Water Heater Costs, is transcribed from line 29d, Form 5695. Field 7529E, Most Expensive Biomass Stove or Boiler Costs, is transcribed from line 29e, Form 5695. These fields are 11 numeric characters in length, and positive only.

# Field 75BSB, Most Expensive Biomass Stove or Boiler QMID

3.12.2.59.3.35 (01-01-2026) Field 75BSB, Most Expensive Biomass Stove or Boiler QMID Field 75BSB, Most Expensive Biomass Stove or Boiler QMID is transcribed from below line 29e, Form 5695. This field is 17 positions in length and alphanumeric.

# Field 7529F, Other Biomass Stove and Boiler Costs

3.12.2.59.3.36 (01-01-2026) Field 7529F, Other Biomass Stove and Boiler Costs Field 7529F, Other Biomass Stove and Boiler Costs, is transcribed from below line 29f, Form 5695. This field is 11 numeric characters in length, and positive only.

# Field 7532A, Part II Joint Occupancy Indicator

3.12.2.59.3.37 (01-01-2025) Field 7532A, Part II Joint Occupancy Indicator Field 7532A, Part II Joint Occupancy Indicator, is transcribed from the checkbox on line 32a, Form 5695. Field 7532A is one position in length, and the valid entries are as follows: 0: Box is not checked (default). 1: Box is checked.

# Field 7532B, Condominium or Cooperative Indicator

3.12.2.59.3.38 (01-01-2026) Field 7532B, Condominium or Cooperative Indicator Field 7532B, Condominium or Cooperative Indicator, is transcribed from line 32b, Form 5695. The valid entries for Field 7532B are: 0: Box is not checked (default). 1: Box is checked.

# Section 76, Form 965-A

3.12.2.60 (01-01-2020) Section 76, Form 965-A Form 965-A, Individual Report of Net 965 Tax Liability, is used to report an individual's net 965 tax liability.

# Error Record Format, Section 76

3.12.2.60.1 (01-01-2023) Error Record Format, Section 76 Section 76 consists of the following fields from Form 965-A: Form 965-A Field Name Field Location 76YE1 Election or Transfer Year 1 Part I, column a, 1st entry 76YE2 Election or Transfer Year 2 Part I, column a, 2nd entry 76YE3 Election or Transfer Year 3 Part I, column a, 3rd entry 76YE4 Election or Transfer Year 4 Part I, column a, 4th entry 76YE5 Election or Transfer Year 5 Part I, column a, 5th entry 76ADI Part I Form 965-A Additional Data Indicator Part I, to the right of column e (edited if more than 5 entries) 76TL1 Net Tax Liability Transferred Year 1 Part I, column j, 1st entry 76TL2 Net Tax Liability Transferred Year 2 Part I, column j, 2nd entry 76TL3 Net Tax Liability Transferred Year 3 Part I, column j, 3rd entry 76TL4 Net Tax Liability Transferred Year 4 Part I, column j, 4th entry 76TL5 Net Tax Liability Transferred Year 5 Part I, column j, 5th entry 76ID1 Tax Identification Number 1 Part I, column k, 1st entry 76ID2 Tax Identification Number 2 Part I, column k, 2nd entry 76ID3 Tax Identification Number 3 Part I, column k, 3rd entry 76ID4 Tax Identification Number 4 Part I, column k, 4th entry 76ID5 Tax Identification Number 5 Part I, column k, 5th entry 76TR1 Net 965 Tax Liability Triggered 1 Part IV, column f, 1st entry 76TR2 Net 965 Tax Liability Triggered 2 Part IV, column f, 2nd entry 76TR3 Net 965 Tax Liability Triggered 3 Part IV, column f, 3rd entry 76TR4 Net 965 Tax Liability Triggered 4 Part IV, column f, 4th entry 76TR5 Net 965 Tax Liability Triggered 5 Part IV, column f, 5th entry 76AD4 Part IV Form 965-A Additional Data Indicator Part IV, to the right of column i(edited if more than 5 entries) 76TOT Total Form 965-A from Part IV Part IV, total below column i

# Invalid Conditions

3.12.2.60.2 (01-01-2020) Invalid Conditions Fields in Section 76 will display as invalid if not all numeric.

# Correction Procedures

3.12.2.60.3 (01-01-2020) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields.

# Fields 76YE1, 76YE2, 76YE3, 76YE4, and 76YE5, Year of Election or Transfer 1/2/3/4/5

3.12.2.60.3.1 (01-01-2020) Fields 76YE1, 76YE2, 76YE3, 76YE4, and 76YE5, Year of Election or Transfer 1/2/3/4/5 These fields are transcribed from Form 965-A, Part I, column a as a four digit numeric year.

# Fields 76ADI and 76AD4, Additional Data Indicator

3.12.2.60.3.2 (01-02-2020) Fields 76ADI and 76AD4, Additional Data Indicator Field 76ADI is transcribed from the margin of Form 965-A, Part I, to the right of column e, when additional data is present beyond the fifth entry. Field 76AD4 is transcribed from the margin of Form 965-A, Part IV, to the right of column i, when additional data is present beyond the fifth entry. TY19 and later, this field will display as invalid if other than 0 (zero), or 1. If Form 965-A does not include more than 5 years in Part I, enter 0 in Field 76ADI. If Form 965-A does not include more than 5 years in Part IV, enter 0 in Field 76AD4.

# Fields 76TL1, 76TL2, 76TL3, 76TL4, and 76TL5, Net Tax Liability Transferred Year 1/2/3/4/5

3.12.2.60.3.3 (01-01-2020) Fields 76TL1, 76TL2, 76TL3, 76TL4, and 76TL5, Net Tax Liability Transferred Year 1/2/3/4/5 These fields are transcribed from Form 965-A, Part I, column j as numeric amounts.

# Fields 76ID1, 76ID2, 76ID3, 76ID4, and 76ID5, Tax Identification Number 1/2/3/4/5

3.12.2.60.3.4 (01-01-2020) Fields 76ID1, 76ID2, 76ID3, 76ID4, and 76ID5, Tax Identification Number 1/2/3/4/5 These fields are transcribed from Form 965-A, Part I, column k, as nine digit numbers.

# Fields 76TR1, 76TR2, 76TR3, 76TR4, and 76TR5, Net 965 Tax Liability Triggered 1/2/3/4/5

3.12.2.60.3.5 (01-01-2020) Fields 76TR1, 76TR2, 76TR3, 76TR4, and 76TR5, Net 965 Tax Liability Triggered 1/2/3/4/5 These fields are transcribed from Form 965-A, Part IV, column f, as numeric amounts.

# Field 76TOT, Total Form 965-A from Part IV

3.12.2.60.3.6 (01-01-2026) Field 76TOT, Total Form 965-A from Part IV Field 76TOT, Total Form 965-A from Part IV, is transcribed from Part IV total below column i as a numeric amount.

# Section 77, Schedule LEP or Form 9000

3.12.2.61 (01-01-2025) Section 77, Schedule LEP or Form 9000 Section 77 contains fields from Form 9000, Alternative Media Preference, and Schedule LEP, Request for Change in Language Preference Two Forms 9000 may be processed with a return. Field 77PAM is for the primary taxpayer's Form 9000. Field 77SAM is for the secondary taxpayer's Form 9000. Two Schedules LEP may be processed with a return. Field 77PAL is for the primary taxpayer's Schedule LEP. Field 77SAL ifs for the secondary taxpayer's Schedule LEP.

# Error Record Format, Section 77

3.12.2.61.1 (01-01-2023) Error Record Format, Section 77 Section 77 consists of the following input fields: Schedule LEP or Form 9000 Field Name Field Location 77PAM Primary Alternative Media Code Form 9000, line 1 77PAL Primary Alternative Language Code Schedule LEP, line 1 77SAM Secondary Alternative Media Code Form 9000, line 1 77SAL Secondary Alternative Language Code Schedule LEP, line 1

# Invalid Conditions

3.12.2.61.2 (11-27-2020) Invalid Conditions Section 77 fields will display as invalid if not all numeric or blank.

# Correction Procedures

3.12.2.61.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 77 fields follow.

# Field 77PAM, Primary Alternative Media Code

3.12.2.61.3.1 (01-01-2026) Field 77PAM, Primary Alternative Media Code Field 77PAM is a two digit numeric field that is valid when it contains a value between 00 and 05, or is left blank. Field 77PAM is transcribed from the primary taxpayer's Form 9000, line 1.

# Field 77PAL, Primary Alternative Language Code

3.12.2.61.3.2 (01-01-2026) Field 77PAL, Primary Alternative Language Code Field 77PAL is a three digit numeric field that is valid when it contains a value between 000 and 020, or is left blank. Field 77PAL is transcribed from the primary taxpayer's Schedule LEP, line 1.

# Field 77SAM, Secondary Alternative Media Code

3.12.2.61.3.3 (01-01-2026) Field 77SAM, Secondary Alternative Media Code Field 77SAM is a two digit numeric field that is valid when it contains a value between 00 and 05, or is left blank. Field 77SAM is transcribed from the secondary taxpayer's Form 9000, line 1.

# Field 77SAL, Secondary Alternative Language Code

3.12.2.61.3.4 (01-01-2026) Field 77SAL, Secondary Alternative Language Code Field 77SAL is a three digit numeric field that is valid when it contains a value between 000 and 020, or is left blank. Field 77SAL is transcribed from the secondary taxpayer's Schedule LEP, line 1.

# Section 78, Form 8997

3.12.2.62 (01-01-2022) Section 78, Form 8997 Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is used to report QOF investments and deferred gain held at the beginning and end of the tax year, as well as any capital gains deferred by investing in a QOF and QOF investments disposed of during the current tax year.

# Error Record Format Section 78

3.12.2.62.1 (01-01-2023) Error Record Format Section 78 Section 78 consists of the following fields: Form 8997 Field Name Field Location 781A Part I Qualified Opportunity Fund EIN Part I, column a, first line 781B Part I Date QOF Investment Acquired Part I, column b, first line 781D Part I Special Gain Code Part I, column d, first line 781E Part I Amount of Short-Term Deferred Gain Remaining Part I, column e, first line 781F Part I Amount of Long-Term Deferred Gain Remaining Part I, column f, first line 781AI Form 8997 Part I Additional Info Indicator Edited in the right margin of Part I, column f 781ST Part I Total Short-Term Deferred Gain Remaining Part I, line 2, column e 781LT Part I Total Long-Term Deferred Gain Remaining Part I, line 2, column f 782A Part II Qualified Opportunity Fund EIN Part II, column a, first line 782B Part II Date QOF Investment Acquired Part II, column b, first line 782D Part II Special Gain Code Part II, column d, first line 782E Part II Amount of Short-Term Deferred Gain Remaining Part II, column e, first line 782F Part II Amount of Long-Term Deferred Gain Remaining Part II, column f, first line 782AI Form 8997 Part II Additional Info Indicator Edited in the right margin of Part II, column f 782ST Part II Total Short-Term Deferred Gain Remaining Part II, line 2, column e 782LT Part II Total Long-Term Deferred Gain Remaining Part II, line 2, column f 783A Part III Qualified Opportunity Fund EIN Part III, column a, first line 783B Part III Date of Event Part III, column b, first line 783D Part III Special Gain Code Part III, column d, first line 783E Part III Amount of Short-Term Deferred Gain Included Part III, column e, first line 783F Part III Amount of Long-Term Deferred Gain Included Part III, column f, first line 783AI Form 8997 Part III Additional Info Indicator Edited in the right margin of Part III, column f 783ST Part III Total Short-Term Deferred Gain Remaining Part III, line 2, column e 783LT Part III Total Long-Term Deferred Gain Remaining Part III, line 2, column f 784A Part IV Qualified Opportunity Fund EIN Part IV, column a, first line 784B Part IV Date QOF Investment Acquired Part IV, column b, first line 784D Part IV Special Gain Code Part IV, column d, first line 784E Part IV Amount of Short-Term Deferred Gain Remaining Part IV, column e, first line 784F Part IV Amount of Long-Term Deferred Gain Remaining Part IV, column f, first line 784AI Form 8997 Part IV Additional Info Indicator Edited in the right margin of Part IV, column f 784ST Part IV Total Short-Term Deferred Gain Remaining Part IV, line 2, column e 784LT Part IV Total Long-Term Deferred Gain Remaining Part IV, line 2, column f See the specific field instructions for valid field formats.

# Invalid Conditions

3.12.2.62.2 (01-01-2022) Invalid Conditions Section 78 fields will display as invalid if format is incorrect. All fields in Section 78 are numeric, except Fields 781D, 782D, 783D, and 784D which are one character alpha fields.

# Correction Procedures

3.12.2.62.3 (01-01-2022) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields.

# Fields 781A, 782A, 783A, 784A

3.12.2.62.3.1 (01-01-2022) Fields 781A, 782A, 783A, 784A Field 781A represents the Part I Qualified Opportunity Fund EIN transcribed from Part I, column a, first line. Field 782A represents the Part II Qualified Opportunity Fund EIN transcribed from Part II, column a, first line. Field 783A represents the Part III Qualified Opportunity Fund EIN transcribed from Part III, column a, first line. Field 784A represents the Part IV Qualified Opportunity Fund EIN transcribed from Part IV, column a, first line. These fields are numeric only.

# Fields 781B, 782B, 783B, 784B

3.12.2.62.3.2 (01-01-2022) Fields 781B, 782B, 783B, 784B Field 781B represents the Part I Date QOF Investment Acquired transcribed from Part I, column b, first line. Field 782B represents the Part II Date QOF Investment Acquired transcribed from Part II, column b, first line. Field 783B represents the Part III Date of Event transcribed from Part III, column b, first line. Field 784B represents the Part IV Date QOF Investment Acquired transcribed from Part IV, column b, first line. These fields are numeric only.

# Fields 781D, 782D, 783D, 784D

3.12.2.62.3.3 (01-01-2025) Fields 781D, 782D, 783D, 784D Field 781D represents the Part I Special Gain Code (SGC) transcribed from Part I, column d, first line. Field 782D represents the Part II Special Gain Code transcribed from Part II, column d, first line. Field 783D represents the Part III Special Gain Code transcribed from Part III, column d, first line. Field 784D represents the Part IV Special Gain Code transcribed from Part IV, column d, first line. These fields are alpha only and are invalid if letter I is present. Code A, B, C, D, E, F, and G are defined on Form 8997 instructions. Code H, and J through Z are reserved.

# Fields 781E, 782E, 783E, 784E

3.12.2.62.3.4 (01-01-2022) Fields 781E, 782E, 783E, 784E Field 781E represents the Part I Amount of Short-Term Deferred Gain Remaining transcribed from Part I, column e, first line. Field 782E represents the Part II Amount of Short-Term Deferred Gain Remaining transcribed from Part II, column e, first line. Field 783E represents the Part III Amount of Short-Term Deferred Gain Remaining transcribed from Part III, column e, first line. Field 784E represents the Part IV Amount of Short-Term Deferred Gain Remaining transcribed from Part IV, column e, first line. These fields are positive only and dollars and cents.

# Fields 781F, 782F, 783F, 784F

3.12.2.62.3.5 (01-01-2022) Fields 781F, 782F, 783F, 784F Field 781F represents the Part I Amount of Long-Term Deferred Gain Remaining transcribed from Part I, column f, first line. Field 782F represents the Part II Amount of Long-Term Deferred Gain Remaining transcribed from Part II, column f, first line. Field 783F represents the Part III Amount of Long-Term Deferred Gain Remaining transcribed from Part III, column f, first line. Field 784F represents the Part IV Amount of Long-Term Deferred Gain Remaining transcribed from Part IV, column f, first line. These fields are positive only and dollars and cents.

# Fields 781AI, 782AI, 783AI, 784AI

3.12.2.62.3.6 (01-01-2022) Fields 781AI, 782AI, 783AI, 784AI Field 781AI represents the Part I Special Gain Code transcribed from the right margin of Part I, column f. Field 782AI represents the Part II Special Gain Code transcribed from the right margin of Part II, column f. Field 783AI represents the Part III Special Gain Code transcribed from the right margin of Part III, column f. Field 784AI represents the Part IV Special Gain Code transcribed from the right margin of Part IV, column f. These fields are numeric only. Code 1 if additional lines have taxpayer information. Code 0 if only the first line has taxpayer information.

# Fields 781ST, 782ST, 783ST, 784ST

3.12.2.62.3.7 (01-01-2022) Fields 781ST, 782ST, 783ST, 784ST Field 781ST represents the Part I Total Short-Term Deferred Gain Remaining transcribed from Part I, line 2, column e. Field 782ST represents the Part II Total Short-Term Deferred Gain Remaining transcribed from Part II, line 2, column e. Field 783ST represents the Part III Total Short-Term Deferred Gain Remaining transcribed from Part III, line 2, column e. Field 784ST represents the Part IV Total Short-Term Deferred Gain Remaining transcribed from Part IV, line 2, column e. These fields are positive only and dollars and cents.

# Fields 781LT, 782LT, 783LT, 784LT

3.12.2.62.3.8 (01-01-2022) Fields 781LT, 782LT, 783LT, 784LT Field 781LT represents the Part I Total Short-Term Deferred Gain Remaining transcribed from Part I, line 2, column f. Field 782LT represents the Part II Total Short-Term Deferred Gain Remaining transcribed from Part II, line 2, column f. Field 783LT represents the Part III Total Short-Term Deferred Gain Remaining transcribed from Part III, line 2, column f. Field 784LT represents the Part IV Total Short-Term Deferred Gain Remaining transcribed from Part IV, line 2, column f. These fields are positive only and dollars and cents.

# Section 79, Form 4136

3.12.2.63 (01-01-2024) Section 79, Form 4136 Form 4136, Credit for Federal Tax Paid on Fuels, is used by taxpayers to claim credit for federal excise tax paid on fuels. This is a refundable credit and is included in payments. Refer to EC 356.

# Error Record Format, Section 79

3.12.2.63.1 (01-01-2024) Error Record Format, Section 79 Section 79 consists of the following fields: Form 4136 Field Name Field Location 79A01 Amount for Credit Reference 1 Column (d) 79C01 Credit Reference Number 1 Column (e) 79A02 Amount for Credit Reference 2 Column (d) 79C02 Credit Reference Number 2 Column (e) 79A03 Amount for Credit Reference 3 Column (d) 79C03 Credit Reference Number 3 Column (e) 79A04 Amount for Credit Reference 4 Column (d) 79C04 Credit Reference Number 4 Column (e) 79A05 Amount for Credit Reference 5 Column (d) 79C05 Credit Reference Number 5 Column (e) 79A06 Amount for Credit Reference 6 Column (d) 79C06 Credit Reference Number 6 Column (e) 79A07 Amount for Credit Reference 7 Column (d) 79C07 Credit Reference Number 7 Column (e) 79A08 Amount for Credit Reference 8 Column (d) 79C08 Credit Reference Number 8 Column (e) 79A09 Amount for Credit Reference 9 Column (d) 79C09 Credit Reference Number 9 Column (e) 79A10 Amount for Credit Reference 10 Column (d) 79C10 Credit Reference Number 10 Column (e) 79A11 Amount for Credit Reference 11 Column (d) 79C11 Credit Reference Number 11 Column (e) 79A12 Amount for Credit Reference 12 Column (d) 79C12 Credit Reference Number 12 Column (e) 79A13 Amount for Credit Reference 13 Column (d) 79C13 Credit Reference Number 13 Column (e) 79A14 Amount for Credit Reference 14 Column (d) 79C14 Credit Reference Number 14 Column (e) 79A15 Amount for Credit Reference 15 Column (d) 79C15 Credit Reference Number 15 Column (e) 79A16 Amount for Credit Reference 16 Column (d) 79C16 Credit Reference Number 16 Column (e) 79A17 Amount for Credit Reference 17 Column (d) 79C17 Credit Reference Number 17 Column (e) 79A18 Amount for Credit Reference 18 Column (d) 79C18 Credit Reference Number 18 Column (e) 79A19 Amount for Credit Reference 19 Column (d) 79C19 Credit Reference Number 19 Column (e) 79A20 Amount for Credit Reference 20 Column (d) 79C20 Credit Reference Number 20 Column (e) Fields in Section 79 must be positive entries.

# Invalid Conditions

3.12.2.63.2 (01-01-2024) Invalid Conditions Section 79 fields will display as invalid if other than numeric.

# Correction Procedures

3.12.2.63.3 (01-01-2024) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields.

# Fields 79A01 through 79C20

3.12.2.63.3.1 (01-01-2024) Fields 79A01 through 79C20 All fields are transcribed from columns (d) and (e) in the order that the taxpayer enters them on Form 4136. If the taxpayer's first entry is on line 3, use Field 79A01 and 79C01, if the taxpayer's second entry is on line 7, use Fields 79A02 and 79C02, etc. When correcting any unused credit reference fields, ensure to input the default value of 000.

# Section 88, Form 3471

3.12.2.64 (01-01-2026) Section 88, Form 3471 Section 88 contains edited information from Form 3471, Edit Sheet, for certain unallowable (UA) conditions, and several ERS input only fields.

# Error Record Format Section 88

3.12.2.64.1 (01-01-2026) Error Record Format Section 88 Section 88 holds the following fields: Form 3471 Field Name Field Location 88CD1 Unallowable Code 1 Form 3471, line 1 88AM1 Unallowable Amount 1 Form 3471, line 1 88CD2 Unallowable Code 2 Form 3471, line 2 88AM2 Unallowable Amount 2 Form 3471, line 2 88CD3 Unallowable Code 3 Form 3471, line 3 88AM3 Unallowable Amount 3 Form 3471, line 3 88AGI Unallowable Adjusted Gross Income Form 3471, box labeled "Adjusted gross income (AGI)" 88ITM Unallowable Itemized Deductions Form 3471, box labeled "Itemized" 88NI Unallowable Net Income Form 3471, box labeled "Net Income" 88TXA Unallowable Tax Adjustment Form 3471, box labeled "Tax" 88RPD Return Processed Date Form 3471, line 4 8806 Late Filing Code Form 3471, line 6 88PDP Pre-Determined Delinquency Penalty Form 3471, line 7 8808 Form 4563 Indicator (International) Form 3471, line 8 (for AUSPC only) 88W2A ITIN Return First Form W-2 SSN ERS input only 88W2B ITIN Return Second Form W-2 SSN ERS input only

# Invalid Conditions

3.12.2.64.2 (01-01-2026) Invalid Conditions All fields in Section 88 are numeric or blank, and positive only. Money amounts are entered in dollars only.

# Correction Procedures

3.12.2.64.3 (01-01-2026) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Correction procedures for Section 88 fields follow.

# Unallowables

3.12.2.64.3.1 (01-01-2026) Unallowables There are certain conditions in a tax return that are unallowable by law and not merely questionable. These are identified by Unallowable (UA) Codes and edited by Code and Edit, as instructed in IRM 3.11.3, by Examination on Form 3471, Edit Sheet, or by ERS tax examiners, as instructed in IRM 3.12.3. An unallowable code allows the return to be processed as it was submitted. The fields for the amount of the unallowable display in dollars only. Note: Enter unallowable code and amount for items ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ These unallowable fields are edited by Code and Edit on Form 3471 for transcription: Field 88CD1/88AM1 Field 88CD2/88AM2 Field 88CD3/88AM3 These unallowable UA fields are for ERS input only: Field 88AGI, Unallowable Adjusted Gross Income Field 88ITM, Unallowable Itemized Deductions Field 88NI, Unallowable Net Income Field 88TXA, Unallowable Tax Adjustment Field 94UTV, Unallowable Tax Verified Refer to the Unallowable Codes, Exhibit 3.12.2-7, for a list and explanation of the unallowable codes. Corrections are not necessary unless the record contains EC 380, 702, 704, 706, 708, 712, 714, 716 or 718. Enter and correct unallowable codes according to the instructions below. Enter all codes as they are shown on Form 3471 or the return. If more than three unallowable items are in a return, enter Unallowable Code 98 as the third unallowable code, in Field 88CD3, and leave Field 88AM3 blank. Explain the additional codes and amounts in the "Processing memo" portion of Form 3471. Before correcting an unallowable code, determine if the unallowable amount is more than the tolerance, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Use the following table to correct the unallowable code(s): If the amount is And the UA is Then A] More than the tolerance, GTSEC 88. Enter the UA code(s). See Exhibit 3.12.2-7 Enter the UA amount(s). B] Less than the tolerance In a field that is creating an ERS error condition, Move the amount to a catch-all field. For example, move an itemized deduction amount to Field 0716. See the note below. Note: Do not adjust the return. Do not leave a working trail for the amount moved. Refer to EC 260 for CCC Y conditions.

# Field 88RPD, Return Processed Date

3.12.2.64.3.2 (01-01-2026) Field 88RPD, Return Processed Date The return processed date (RPD) is located on line 4 of Form 3471 or stamped on the correspondence reply. The return processed date is sometimes called the correspondence received date. Correct coding and transcriptions errors and misplaced entries on displayed fields. Correct invalid data using the date format of YYYYMMDD. Y=year, M=month, and D=day. The entry in Field 88RPD is invalid if any of the following conditions are present: The day (DD) of the month exceeds the number of days for the transcribed calendar month (MM). The first position of the field is blank and the rest of the field is filled. The entry has fewer than eight characters. The entry is not exclusively numeric. The entry is later than the current date. When a return has been held in suspense and a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter the return processed date in Field 88RPD using the following priority: IRS fax received date. Correspondence received date. Postmark date on reply envelope. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: If a reply is received for correspondence issued only for Paragraph D (Form 1310 and court certificate), don't enter the reply date in Field 88RPD. Process the return per IRM 3.12.2.3.18, Deceased Taxpayer. Don't enter a return processed date when: a complete reply is received before the due date of the return, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the correspondence was issued only for paragraph D (Form 1310 and court certificate), or the correspondence was issued in error. Austin only - If the return has an ITIN (9XX-50-XXXX through 9XX-65-XXXX, 9XX-70-XXXX through 9XX-88-XXXX, 9XX-90-XXXX through 9XX-92-XXXX, 9XX-94-XXXX through 9XX-99-XXXX) written in red ink and "W-7" is stamped in the bottom left hand corner of the return, resolve the error according to these instructions. If the received date is equal to the return processed date, ensure the correct received date is input. Refer to IRM 3.12.2.4.3.16 If EC 058 displays because the received date is equal to the return processed date, delete the entry in Field 88RPD.

# Field 8806, Late Filing Code

3.12.2.64.3.3 (01-01-2026) Field 8806, Late Filing Code ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for receiving certain tax returns. Code and Edit will edit the Late Filing Code 1 when the received date on ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the taxpayer has computed a delinquency penalty and/or interest. Field 8806 will be invalid when other than blank or 1. Use the following table to correct field errors in Field 8806: If the return is And Then A] Full Paid, Any of the following is present: Pre-computed delinquency penalty, Failure to pay penalty, Interest is added to the balance due, Enter 1 in Field 8806. Enter 20260415 in Field 01RCD if a timely received date is not stamped or edited. B] Partial Paid, An amount is indicated for delinquency (failure to file) penalty, Enter 1 in Field 8806.

# Field 88PDP, Pre-Determined Delinquency Penalty

3.12.2.64.3.4 (01-01-2026) Field 88PDP, Pre-Determined Delinquency Penalty Code and Edit will edit the amount on Form 3471 when there is a notation on the return that indicates this penalty. Refer to EC 064. Field 88PDP will be invalid of other than blank or all numerics. Correct any coding or transcription errors.

# Field 8808, Form 4563 Indicator (International)

3.12.2.64.3.5 (01-01-2026) Field 8808, Form 4563 Indicator (International) Field 8808 is used by AUSPC only. Delete the entry if present in Field 8808 on a return being processed at a center other than AUSPC.

# Fields 88W2A and 88W2B, ITIN Return First/Second Form W-2 SSN

3.12.2.64.3.6 (01-01-2026) Fields 88W2A and 88W2B, ITIN Return First/Second Form W-2 SSN Field 88W2A and Field 88W2B will be invalid if other than blank or numeric. These fields are ERS input only. See EC 030. If Field 88W2A or Field 88W2B is equal to the primary or secondary SSN, delete the entry.

# Section 94, Verified Fields

3.12.2.65 (01-01-2025) Section 94, Verified Fields Section 94 contains fields that are ERS input only.

# Error Record Format, Section 94

3.12.2.65.1 (01-01-2026) Error Record Format, Section 94 Section 94 consists of the following ERS input only fields: Form 1040 Field Name 94EXV Exemption Code Verified 94PAV Primary Age Verified 94SAV Secondary Age Verified 94CEV Child Tax Credit Number Eligible Verified 94DEV Credit for Other Dependent Number Eligible Verified 94UTV Unallowable Tax Verified 94TSV Taxable Social Security Verified 94SDV Limited Standard Deduction Verified 94QBV Qualified Business Income Deduction Verified 94INV Taxable Income Verified 94TTV Tentative Tax Verified 94CDV Child Tax and Other Dependent Credit Verified 94NRV Total Statutory Credits Verified 94TXV Total Tax Verified 94EIV EIC Earned Income Verified 94AIV ACTC Earned Income Verified 94ACV Additional Child Tax Credit Verified 94AOV Refundable Education Credit Verified 94RAV Refundable Adoption Credit Verified 94SEV Deduction for SE Tax Verified 94IRV IRA Payment Amount Verified 94SLV Student Loan Interest Deduction Verified 94ARV Advance Premium Tax Credit Repayment Verified 94EDV Education Credit Verified 94RTV Retirement Savings Contribution Credit Verified 94REV Residential Clean Energy Credit Verified 94EEV Energy Efficient Home Improvement Credit Verified 94CVV Clean Vehicle Credit Verified 94POV Previously Owned Clean Vehicles Credit Verified 94PTV Reconciled Premium Tax Credit Verified 94ESV Excess Social Security Tax Withheld Verified 94OPV Total Other Payments and Refundable Credits Verified 94P2V New Clean Vehicles Business Credit Verified 94P5V Commercial Clean Vehicle Credit Verified

# Invalid Conditions

3.12.2.65.2 (01-01-2020) Invalid Conditions Section 94 fields will display as invalid if other than numeric or blank.

# Correction Procedures

3.12.2.65.3 (01-01-2020) Correction Procedures The fields in Section 94 are for ERS input only. If non-numeric characters have been input, delete the entry.

# Field 94EXV, Exemption Verified, 8 positions

3.12.2.65.3.1 (01-01-2020) Field 94EXV, Exemption Verified, 8 positions TY18 and later, the exemption amount that can be claimed is $0. Exemption coding in Field 94EXV is retained for determining family size in certain calculations and allowable credits. Use Field 94EXV to make changes to exemptions claimed by the taxpayer. Field 94EXV will display as blank. When entering data in Field 94EXV, all 8 positions must be entered. Invalid Condition - This field will be invalid when positions 1 and 2 are other than 1 or 0 (zero).

# Field 94PAV, Primary Age Verified

3.12.2.65.3.2 (01-01-2020) Field 94PAV, Primary Age Verified Use Field 94PAV per error code instructions when the primary taxpayer's date of birth in Field 01PYB> is blank or all zeros. The field is three spaces long, and only numeric values are valid. Use of the field: Enter R in Field 02RI and transmit. If Field 01PYB> remains blank or filled with zeros, research with INOLES for the taxpayer's date of birth. Determine the taxpayer's age on the first day of the tax year and enter it in Field 94PAV.

# Field 94SAV, Secondary Age Verified

3.12.2.65.3.3 (01-01-2020) Field 94SAV, Secondary Age Verified Use Field 94SAV per error code instructions when the secondary taxpayer's date of birth in Field 01SYB> is blank or all zeros. The field is three spaces long, and only numeric values are valid. Use of the field: Enter R in Field 02RI and transmit. If Field 01SYB> remains blank or filled with zeros, research with INOLES for the taxpayer's date of birth. Determine the taxpayer's age on the first day of the tax year and enter it in Field 94SAV.

# Field 94CEV, Child Tax Credit Number Eligible Verified

3.12.2.65.3.4 (01-01-2026) Field 94CEV, Child Tax Credit Number Eligible Verified Use Field 94CEV when the programming cannot accurately figure the total number of children eligible for Child Tax Credit (for example, when there are more than 4 eligible children or eligible children beyond the fourth transcribed dependent). The field is two spaces long, and only numeric values are valid. The entry in the field must be two digits. Enter any number smaller than 10 with a leading zero: 01, 03, 06, 09, for example. Correct field errors according to the table below. If Then A] The number of children eligible for and claimed for the Child Tax Credit in Field 01TCE> is correct, Delete the number in Field 94CEV. B] The number of children eligible for and claimed for the Child Tax Credit in Field 01TCE> is incorrect, Determine the correct number of children eligible for the Child Tax Credit. Enter the number of children eligible for the Child Tax Credit in Field 94CEV. Refer to EC 287, 289 and 299.

# Field 94DEV, Credit for Other Dependents Number Eligible Verified

3.12.2.65.3.5 (01-01-2026) Field 94DEV, Credit for Other Dependents Number Eligible Verified The following instructions apply to TY18 and later only. Use Field 94DEV when the programming can't accurately figure the total number of dependents eligible for credit for other dependents because, for instance, there are more than 4 eligible persons or eligible persons beyond the fourth transcribed dependent. The field is two spaces long, and only numeric values are valid. The entry in the field must be two digits. Enter any number smaller than 10 with a leading zero: 01, 03, 06, 09, for example. Correct field errors according to the table below. If Then A] The number of dependents eligible for and claimed for the Credit for Other Dependents in Field 01TDE> is correct, Delete the number in Field 94DEV. B] The number of dependents eligible for and claimed for the Credit for Other Dependents in Field 01TDE> is incorrect, Determine the correct number of dependents eligible for the Credit for Other Dependents. Include the number of dependents claimed for CTC who were not eligible because of age or because CTC was claimed for a valid ITIN. Enter the number of dependents eligible for the Credit for Other Dependents in Field 94DEV. Refer to EC 287, 289, and 299.

# Field 94UTV, Unallowable Tax Verified

3.12.2.65.3.6 (01-01-2020) Field 94UTV, Unallowable Tax Verified Use Field 94UTV to enter the recomputed tax amount when a corrected return contains unallowable codes, and verified fields have been used for taxable income, tax, or itemized deductions. Refer to EC 706 and 712.

# Field 94TSV, Taxable Social Security Verified

3.12.2.65.3.7 (01-01-2020) Field 94TSV, Taxable Social Security Verified Use Field 94TSV, Taxable Social Security Verified, when the computer can't correctly compute taxable social security. Refer to EC 214.

# Field 94SDV, Standard Deduction Verified

3.12.2.65.3.8 (01-01-2026) Field 94SDV, Standard Deduction Verified Use Field 94SDV when all the following exist: DSI code is 1. Earned income is less than the Basic Standard Deduction (e.g., TY25 FSC 1, $15,750). Earned income is present on the "Other Income" line 8z, Schedule 1. Note: If the taxpayer has included partnership income from Schedule E in the computation of the standard deduction, enter the limited standard deduction amount in Field 94SDV. Refer to EC 256.

# Field 94QBV, Qualified Business Income Deduction Verified

3.12.2.65.3.9 (01-01-2020) Field 94QBV, Qualified Business Income Deduction Verified Use Field 94QBV when the computer can't calculate the correct Qualified Business Income Deduction. Refer to EC 249.

# Field 94INV, Taxable Income Verified

3.12.2.65.3.10 (01-01-2026) Field 94INV, Taxable Income Verified Use Field 94INV when the taxpayer has used a special computation or the computer can't calculate the correct taxable income. Refer to EC 256.

# Field 94TTV, Tentative Tax Verified

3.12.2.65.3.11 (01-01-2020) Field 94TTV, Tentative Tax Verified Use Field 94TTV when the taxpayer has used a special computation or the computer can't calculate the correct tax amount. Refer to EC 260 and 265.

# Field 94CDV, Child Tax Credit and Other Dependent Credit Verified

3.12.2.65.3.12 (01-01-2026) Field 94CDV, Child Tax Credit and Other Dependent Credit Verified Use Field 94CDV when the taxpayer has used a special computation or the computer can't calculate the correct amount for Child Tax Credit and Credit for Other Dependents. Refer to EC 299.

# Field 94NRV, Total Statutory Credits Verified

3.12.2.65.3.13 (01-01-2020) Field 94NRV, Total Statutory Credits Verified Use Field 94NRV when the taxpayer has used a special computation or the computer can't calculate the correct amount of total statutory credits. Refer to EC 310.

# Field 94TXV, Total Tax Verified

3.12.2.65.3.14 (01-01-2020) Field 94TXV, Total Tax Verified Use Field 94TXV when the computer cannot calculate the correct total tax. Refer to EC 260 and 334.

# Field 94EIV, Schedule EIC Earned Income Verified

3.12.2.65.3.15 (01-01-2023) Field 94EIV, Schedule EIC Earned Income Verified Use Field 94EIV to verify earned income for Earned Income Credit when the computer cannot calculate the correct amount. Refer to EC 337 and 338.

# Field 94AIV, ACTC Earned Income Verified

3.12.2.65.3.16 (01-01-2022) Field 94AIV, ACTC Earned Income Verified Use Field 94AIV to verify earned income for the Additional Child Tax Credit when the computer cannot calculate the correct amount. Refer to EC 344 and 380.

# Field 94ACV, Additional Child Tax Credit Verified

3.12.2.65.3.17 (01-01-2020) Field 94ACV, Additional Child Tax Credit Verified Use Field 94ACV when the computer can't calculate the correct amount for additional child tax credit. Refer to EC 344.

# Field 94AOV, Refundable Education Credit Verified

3.12.2.65.3.18 (01-01-2020) Field 94AOV, Refundable Education Credit Verified Field 94AOV is valid for TY09 and later and is used when the computer can't calculate the correct amount of American Opportunity Credit or refundable education credit. Refer to EC 347.

# Field 94RAV, Refundable Adoption Credit Verified

3.12.2.65.3.19 (01-01-2026) Field 94RAV, Refundable Adoption Credit Verified Field 94RAV is valid for TY25 only and is used when the computer can't calculate the correct amount of refundable adoption credit on Form 8839. Refer to EC 351.

# Field 94SEV, Deduction for Self-Employment Tax Verified

3.12.2.65.3.20 (01-01-2020) Field 94SEV, Deduction for Self-Employment Tax Verified Use Field 94SEV when the computer cannot correctly calculate the deduction for SE tax as an adjustment to income. Refer to EC 211.

# Field 94IRV, IRA Deduction Verified

3.12.2.65.3.21 (01-01-2020) Field 94IRV, IRA Deduction Verified Use Field 94IRV when the computer cannot correctly calculate the IRA deduction as an adjustment to income. Refer to EC 222.

# Field 94SLV, Student Loan Interest Deduction Verified

3.12.2.65.3.22 (01-01-2020) Field 94SLV, Student Loan Interest Deduction Verified Use Field 94SLV when the computer cannot correctly calculate student loan interest deduction as an adjustment to income. Refer to EC 224.

# Field 94ARV, Advance Premium Tax Credit Repayment Verified

3.12.2.65.3.23 (01-01-2020) Field 94ARV, Advance Premium Tax Credit Repayment Verified Use Field 94ARV when the computer cannot arrive at the correct advance premium tax credit (APTC) repayment. Refer to EC 190 and 270.

# Field 94EDV, Education Credits Verified

3.12.2.65.3.24 (01-01-2020) Field 94EDV, Education Credits Verified Use Field 94EDV when the taxpayer has used a special computation or when the computer cannot calculate the correct amount of education credit. Refer to EC 283, 284, and 285.

# Field 94RTV, Retirement Savings Contribution Credit Verified

3.12.2.65.3.25 (01-01-2020) Field 94RTV, Retirement Savings Contribution Credit Verified Use Field 94RTV to enter the allowable credit when the computer cannot calculate the correct amount for Retirement Savings Contribution Credit. Refer to EC 286.

# Field 94REV, Residential Clean Energy Credit Verified

3.12.2.65.3.26 (01-01-2026) Field 94REV, Residential Clean Energy Credit Verified Use Field 94REV to enter the allowable credit when the computer cannot calculate the correct amount for Residential Clean Energy Credit. Refer to EC 291 and 292.

# Field 94EEV, Energy Efficient Home Improvement Credit Verified

3.12.2.65.3.27 (01-01-2025) Field 94EEV, Energy Efficient Home Improvement Credit Verified Use Field 94EEV to enter the allowable credit when the computer cannot calculate the correct amount for Energy Efficient Home Improvement Credit Verified.

# Field 94CVV, Clean Vehicle Credit Verified

3.12.2.65.3.28 (01-01-2026) Field 94CVV, Clean Vehicle Credit Verified Use Field 94CVV to enter the allowable credit when the computer cannot calculate the correct amount for Clean Vehicle Credit Amount. Refer to EC 297.

# Field 94POV, Previously Owned Clean Vehicles Credit Verified

3.12.2.65.3.29 (01-01-2026) Field 94POV, Previously Owned Clean Vehicles Credit Verified Use Field 94POV to enter the allowable credit when the computer cannot calculate the correct amount for Previously Owned Clean Vehicles Credit for TY23 and later only. Refer to EC 297.

# Field 94PTV, Net Premium Tax Credit Amount Verified

3.12.2.65.3.30 (01-01-2020) Field 94PTV, Net Premium Tax Credit Amount Verified Use Field 94PTV when the computer cannot arrive at the correct amount for net premium tax credit. Refer to EC 354.

# Field 94ESV, Excess Social Security Tax Withheld Verified

3.12.2.65.3.31 (01-01-2024) Field 94ESV, Excess Social Security Tax Withheld Verified Use Field 94ESV, Excess Social Security Tax Withheld Verified, when the computer cannot correctly compute excess social security withheld amount. Refer to EC 342.

# Field 94OPV, Total Other Payments and Refundable Credits Verified

3.12.2.65.3.32 (01-01-2024) Field 94OPV, Total Other Payments and Refundable Credits Verified Use Field 94OPV to enter the allowable credit when the computer cannot calculate the correct amount for other payments and refundable credits. Refer to EC 358.

# Field 94P2V, New Clean Vehicles Business Credit Verified

3.12.2.65.3.33 (01-01-2026) Field 94P2V, New Clean Vehicles Business Credit Verified Use Field 94P2V to enter the allowable credit when the computer cannot calculate the correct amount for New Clean Vehicles Business Credit. Refer to EC 297 and 302.

# Field 94P5V, Commercial Clean Vehicle Credit Verified

3.12.2.65.3.34 (01-01-2024) Field 94P5V, Commercial Clean Vehicle Credit Verified Use Field 94P5V to enter the allowable credit when the computer cannot calculate the correct amount for Commercial Clean Vehicle Credit for TY23 and later only. Refer to EC 302.

# Action Codes

Exhibit 3.12.2-1 Action Codes The ERS Action Code indicates that specific information is missing, suspended, or removed from processing. Action Code 001 will be computer generated or entered from Error Resolution with Command Code SSPND when the BOB Resolution Function has added a missing document by only inputting the Name Control and SSN for the missing document. Follow corrective procedures in IRM 3.12.2.2.13.1 for Priority I Errors. Action Codes assigned by Code and Edit tax examiners are edited in the lower center margin on page 1 of the return. Instructions are provided throughout this text for the application of the appropriate Action Code. Correspondence Action sheets (Forms 6001 and 3696-A) used for initiating correspondence must be prepared and attached to the front of the return when using a taxpayer correspondence action code. Only one Action Code can be assigned at one time to a record. Note: The "Susp. Period Bus. Days" column does not include weekends and holidays. In-House to ERS Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 001 Input Document 00 no yes no no no 0 Taxpayer Correspondence Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 211 First Correspondence 40 yes yes yes no no 55-58 212 Second Correspondence 25 yes yes yes no no 34-37 213 EC 358, HCTC Correspondence 40 yes yes yes no no 55-58 215 International Correspondence 45 yes yes yes no no 62-65 216 Second Taxpayer Correspondence International 45 yes yes yes no no 62-65 217 International Correspondence 45 yes yes yes no no 62-65 224 ACA Correspondence 40 yes yes yes no no 55-58 225 SRP Correspondence 40 yes yes yes no no 55-58 ID Theft RIVO/RICS Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 230 ID Theft 60 yes yes yes no no 83-86 231 ID Theft Assistance (RICS) 80 yes yes yes no no 111-114 232 ID Theft (Research needed) 85 yes yes no no no 118-121 In-House Research Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 300 IRC 965 10 yes yes yes no no 13-16 310 Statute Control 10 yes yes yes no no 13-16 320 Entity Control 10 yes yes yes no no 13-16 EXAM/CI/RIVO Review Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 331 Frivolous Filer Review (Exam) 03 yes yes no no no 4-7 332 CI Review 03 yes yes no no no 4-7 333 Prompt Audit (Exam) 10 yes yes yes no no 13-16 334 Joint Committee (Exam) 10 yes yes yes no no 13-16 335 FRP Case (Exam) 10 yes yes yes no no 13-16 337 Other CID (Exam) 10 yes yes yes no no 13-16 370 Examination 10 yes yes yes no no 13-16 383 1040EZ Audit Code 00 yes no no no no 0 Accounting Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 341 Manual Refund -Accounting 10 yes yes yes no no 13-16 342 Verification of Credits 10 yes yes yes no no 13-16 343 Other Accounting 10 yes yes yes no no 13-16 344 Manual Refund ERS 00 no yes no no no 0 TIN/Entity Research Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 351 TIN Research 00 no yes yes no no 0 352 Name Research 03 yes yes yes no no 4-7 353 Address Research 03 yes yes yes no no 4-7 354 Filing Requirements Research 03 yes yes yes no no 4-7 355 Other Research 05 yes yes yes no no 8-11 360 Other In-House Research 10 yes yes yes no no 13-16 Management Suspense Action Code Definition Susp. Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 410 Assistance Needed 00 no yes no no no 0 420 Management Suspense A 05 yes yes yes no no 8-11 430 Management Suspense B - Form 8958 / Community Property/Payment Allocation 10 yes yes yes no no 13-16 440 Management Suspense C 15 yes yes yes no no 20-23 450 Management Suspense D, HCTC - EC 358 20 yes yes yes no no 27-30 460 Management Suspense E 25 yes yes yes no no 34-37 470 Complex Error Codes 00 no yes yes no no 0 471 Misc. Suspense (C&E By-Pass) 02 no yes yes no no 5-8 480 Early Filed Suspense 150 yes yes yes no no 211-218 FixERS IAT Tool Suspense Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 481 ERS Bypass 01 yes yes yes no yes 1-3 484 Bypass Reject 01 yes yes yes no yes 1-3 Note: Returns eligible for processing via the FixERS IAT tool are automatically suspended to Action Code 481 upon receipt. When processed through the tool, any return the tool is unable to fully resolve will be suspended to Action Code 484 for review by a tax examiner. HQ Requested Suspense Only Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 490 System Problem 05 no yes yes no no 8-11 491 System Problem 10 no yes yes no no 13-16 492 System Problems, ACA, EC 011 and EC 750 15 no yes yes no no 20-23 493 Systemic Issue, ACA, EC 067 20 no yes yes no no 27-30 494 Complex Systemic Issue, EC 029, Credit Transfers 25 no yes yes no no 34-37 495 Complex Systemic Issue 30 no yes yes no no 41-45 496 Complex Systemic Issue, EC 231 35 no yes yes no no 48-51 497 Complex Systemic Issue 40 no yes yes no no 55-58 498 Complex Systemic Issue 45 no yes yes no no 62-65 499 Complex Systemic Issue 50 no yes yes no no 69-72 Missing Document Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 510 Missing Document 00 yes no no no no 0 511 Missing Document - 1st Suspense 25 no yes yes no no 34-37 512 Missing Document - 2nd Suspense 20 no no yes no no 27-30 513 Missing Document - 3rd Suspense 20 no no yes no no 27-30 515 Missing Document - Short Term 05 no yes yes no no 8-11 550 Magnetic Tape Return 00 yes no no no no 0 551 Magnetic Tape Return 00 yes no no no no 0 Rejects Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 610 Renumber 00 yes yes no yes no 0 611 Remittance Renumber 00 yes yes no yes no 0 620 NMF/Non-ADP 00 yes yes yes yes yes 0 630 Reentry 00 no yes yes no yes 0 640 Void 00 yes yes yes yes yes 0 651 International Document (AUSPC) 00 yes yes yes yes no 0 660 Data Control Delete (TEP Delete) 00 no no no no yes 0 670 Rejected Missing Document 00 no no no no yes 0 Duplicate DLN (Computer Generated Codes) Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 700 Dup Block DLN 00 no no no no no 0 711 Dup Doc DLN from Code and Edit NA no no no no no NA 712 Dup Doc DLN from Error Resolution NA no no no no no NA 713 Dup Doc DLN from Unpostable Resolution NA no no no no no NA 714 Dup Doc DLN from Unworkable Suspense NA no no no no no NA 715 Dup Doc DLN from Workable Suspense NA no no no no no NA 800 NAP Outage 02 no yes no no no 5-8 Unpostable Records (Computer Generated Codes) Action Code Definition Susp.Period Bus. Days Valid for C&E Valid for Error Corr. Valid for Susp. Corr. Valid for NWDLN Valid for RJECT Calendar Days 900 Unpostable Record 00 no no no no no 0

# Computer Condition Codes

Exhibit 3.12.2-2 Computer Condition Codes The number of Computer Condition Codes may not exceed ten (10). Computer Condition Code "3" must be entered in the first position. All other codes may be entered as they are encountered. Listed here are the codes and their meanings. Code Explanation A Both primary and secondary taxpayers are deceased during the tax period of the return. B Return appears to be Non-Compute return but taxpayer has actually computed tax liability to "ZERO" . C Form 1040-NR with IRC 6114. D "UN Operation" , "Haiti" , "Former Yugoslavia (TY94 - TY93 only)" , or "Somalia (TY93 - TY92 only)" return. Note: Do not enter CCC "M" if the return is a Combat Zone Return: See IRM 3.12.2.3.10. E Delete Filing Requirements for taxpayers who are not deceased. F Primary taxpayer is deceased during the tax period of the return. G Form 1040-X which amends Presidential Election Campaign Fund (PECF) selection. H Lump Sum Election is present. J Filing Status Code 2, 3 or 6 with secondary SSN missing and Amish/Mennonite or Form 4029 noted, or Form W-7 attached for the secondary taxpayer. K Operation Enduring Freedom (Afghanistan) Combat Zone Operation Iraqi Freedom Combat Zone L Refund on an overpaid decedent return is to be issued to the Second Name Line (e.g., executor). M Reasonable cause established by taxpayer for not paying the tax balance due. N Generates TC 460, 60 day extension of time to file for taxpayers who are out of the country on the due date of the return. O Indicates a manual refund was issued before the return was processed; also freezes amount from refunding when return posts at ECC-MTB. P Reasonable cause established by taxpayer to suppress Computer Generation of Estimated Tax Underpayment Penalty. Q Qualifying Non-Dependent is listed in filing status section of the return. R Reasonable cause for delinquent filing; this code suppresses the generation of delinquency penalty at ECC-MTB. See IRM 20.1.2, Failure To File/Failure To Pay Penalties, for more information on reasonable cause for delinquency. U Suppresses credit interest on a No Reply return. V Indicates self-employment income has been reduced at least $100 or net earnings reduced below the minimum of $434. W Refund on overpaid return is to be issued to the Second Name Line (e.g., surviving spouse) of a deceased person or to the state-side spouse of a person serving overseas. X Indicates no account is present at the Master File or mismatch name control at Master File or no match on DM-1 file and either the NAP was inoperational or the EIF was inoperational and the NAP was accessed. Y For any circumstances or conditions which may cause the computer determined TOTAL TAX to be different from the taxpayer determined tax despite no taxpayer error; or it can alert Master File to a change in the accounting period. Z Generates Transaction Code 340 which restricts the computation of interest and Transaction Code 270 which restricts Failure to Pay Penalty. It also identifies certain Combat Zone taxpayers entitled to an automatic statutory extension of time for filing a return. 1 Edited by RICS to generate systemic freeze conditions on selected IMF returns. 2 Tax Shelter Detection Team non-selected return. 3 Freezes release of overpayment of account at the Master File and generates Transaction Code 570. 4 Edited by Exam on an original return secured after a Substitute For Return (SFR) has been filed in place of the return. 5 Taxpayer amends Political Checkoff by checking one box on Political Checkoff line, Form 1040-X. This code must be preceded by Computer Condition Code G and is valid on Form 1040-X only. Blocking Series must be 990 through 999. 6 Taxpayer amends Political Checkoff by checking both boxes on Political Checkoff line, Form 1040-X. This code must be preceded by Computer Condition Code G and is valid on Form 1040-X only. Blocking Series must be 990 through 999. 7 Entered by Code and Edit when a denial of reasonable cause for late filing or late payment is established. 8 Refund return and only one Form W-2, that is a substitute, altered, handwritten or typed Form W-2 is attached. 9 Secondary Taxpayer is deceased during the tax period of the return.

# Return Processing Codes

Exhibit 3.12.2-3 Return Processing Codes The number of Return Processing Codes may not exceed ten. These codes are used for center processing and will not post to Master File. Listed here are the codes and their meanings. Code Explanation A Forces computer to accept EIC amount. B Forces computer to compute EIC to zero. Also edited when taxpayer indicates they don't want or qualify for EIC. C Identifies "Community Property" taxpayer who doesn't report any individual income items but reports a prorated share of community property income as Adjusted Gross Income. The community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. D Form 8962 with QSEHRA notated. (TY17 and later) E A taxpayer with a potentially invalid SSN/Name Control combination has provided documentation that indicates they are the individual listed on the return. F Taxpayer has included IRC 965 claims or payments on the return. (TY17 and later) G Forces computer to bypass Error Code 118 check. H Other Contributions equal to or greater than $500 are present on Schedule A, and Form 8283. (Forms 1040 and 1040-NR ONLY) I Taxpayer enters "Died" in the SSN area for a dependent or EIC child and a supporting birth certificate (or death certificate with a date of birth) is present. J Total Tax exceeds 50 percent of Adjusted Gross Income. K Indicates the return has been cleared by Statute Control. Valid on prior year returns only. L Tax return is blank other than Entity or contains all zeros or insignificant entries. M Unemployment Compensation box is checked on Form 8962 for TY21. N Identifies non-employee compensation. O Primary taxpayer TIN invalid (not the same taxpayer as the person on the valid TIN) - Dependent on NAP EIF Response Indicator and NAP Access Indicators. P Form 1040-NR, Schedule P with entry for total proceeds/amount realized from the transfer of partnership interests Q Primary taxpayer TIN invalid, but is the same taxpayer that exists on the valid TIN (name changed without notifying SSA). CC IRCHG done to make taxpayer "IRS valid" and merge valid and invalid accounts. R Authenticated by Electronic Filing PIN (eFP). MeF ONLY - DO NOT ENTER OR DELETE. S Taxpayer is not liable for self-employment tax. (includes ministers who have filed a waiver and Statutory Employees) T Forces the computer to accept Capital Gains distribution without Schedule D. U Form 8949, Sales and Other Dispositions of Capital Assets, attached with code Y or Z in column (f). V Form 1040 determined to be a computer-generated paper return. W TY25 and later, Clergy filing Schedule SE. Y "Loose" Schedule H filed. Z Taxpayer states "not liable" for alternative minimum tax. 1 Dual status taxpayer 3 Form 5329 not required. 4 Other Contributions equal to or greater than $500,000 are present on Schedule A, and appraisal for donated property is present on Form 8283. (Form 1040 and 1040-NR ONLY) 5 TY22 Return with Deemed Payment Election or Credit Transfer under IRA 6 1/2 SE Deduction bypass (1/2 SE Deduction is not valid for TY97 and prior). 7 Indicates IRC 965(i) elections. 8 MeF Form 1040 Additional Child Tax Credit claimed with Puerto Rico address or all Forms W-2 with PR employee address. 9 Prevailing Wage and Apprenticeship Penalties (PWA) for Elective Payment Election amounts included on Schedule 2, line 17z.

# Special Processing Codes

Exhibit 3.12.2-4 Special Processing Codes A Special Processing Code (SPC) is an alphabetic or numeric character used to alert the computer to a special condition or computation. The number of SPCs may not exceed ten. These codes are used for center processing and do not post to Master File. This field was created as an overflow for Return Processing Codes. Code Valid TYs Explanation A all Non Passive Activity Loss (NPA). B TY10 and later Edited by the RIVO, ITVA, AM or CSCO ASFR Function to bypass TC 971 AC 506 identity theft criteria. C TY23 and later FSC 2 lived apart is claiming Energy Efficient Home Credit for two primary residences. D all Form 2441 indicates Tax Exempt Child Care Provider or LAFCP or Due Diligence Statement is attached in lieu of Provider TIN. E all Taxpayer notated "HSH" indicating wages reported includes household employee wages received. F all ERS bypass computation of Child Tax Credit. G all FSC 3 taxpayer who lived apart from spouse, entitled to calculate the IRA deduction by using the same method as FSC 1 or 4 taxpayer. H No Form 1095-A pdf attached with the MeF return (MeF only) J all Taxpayer notes wages earned in a penal institution. K TY09 and later Taxpayer checks the box on Form 8863, line 7 (TY11 - TY10, line 13; TY09, line 15), to declare ineligibility for the refundable American Opportunity Credit. L all More than two dependents claimed on Form 2441 and/or attachments. M TY13 and later RICS ONLY. Do not remove. N Reserved. P Streamlined Returns (International ONLY) Q Schedule SE is not attached, Schedule C and/or F are attached, and taxpayer(s) are not liable for additional SE Tax (MeF only) R all Form 8936, one or two VINs is invalid and taxpayer value reduced below zero due to reduction of claimed credit. (Systemically applied). S all Statutory Credit was limited by tax liability. (Systemically applied). T Current year only Identify theft returns which will post to MFT 32. V Validation required for excess social security tax withholding (MeF only). X TY25 and later Form 461 not attached when required to file. Y Free File Initiative Code FFF present Z TY09 and later Form 5405, First-Time Homebuyer Credit, primary taxpayer: is a member of the uniformed services or Foreign Service or and employee of the intelligence community and sold the house for which they claimed the First-Time Homebuyer Credit in consequence of government orders for qualified official extended duty. They do not have to repay the credit. 0 TY22 and later Return received by FixERS tool. (Systemically generated by FixERS tool). 1 TY22 and later FixERS tool unable to resolve error, suspended for tax examiner review. (Systemically generated by FixERS tool). 2 TY14 and later AVS failure at recompute processing (GMF 15/25). 3 Qualified Charitable Distribution (QCD) election to Split-Interest Entity (SIE) 4 TY19 and later Alimony Received and/or Alimony Paid date is after 12-31-2018. 5 TY23 and later Edited by Code and Edit when East Palestine Train Derailment Relief is notated. 6 TY25 and later PDF statement attached to MeF returns for missing and invalid QMID. (MeF only) 7 TY09 and later Form 5405, First-Time Homebuyer Credit, FSC 2, the secondary taxpayer: is a member of the uniformed services or Foreign Service, or an employee of the intelligence community and sold the house for which they claimed the First-Time Homebuyer Credit in consequence of government orders for qualified official extended duty. They do not have to repay the credit. 9 Fraudulent return (identify theft). Results in UPC 147 RC 4 for auto archiving and issuance of CP Notice.

# Forms Processing Codes

Exhibit 3.12.2-5 Forms Processing Codes The number of Forms Processing Codes may not exceed ten. Listed here are the codes and their meanings. Code Explanation A Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents, Form 2120, Multiple Support Declaration, or a copy of the divorce decree stating their entitlement to claim an exemption for a child who did not live with them because of divorce or separation is attached to the return. B CPYE Statement attached to support Form 2441 (MeF Only). D TY16 and later. A federally-declared disaster loss is claimed on Form 4684, and Schedule A. E Form 8582 or Form 8582-CR is attached (MeF Only) F Form 1062 is attached or notation of 1062I on Schedule 2, line 17z, or 1062NL on Schedule 3, line 13z G Form 8938 is attached. H Form 8995-A, Schedule A, Schedule B, Schedule C, and/or Schedule D is attached to the tax return. J Form 8886 is attached. L Form 8824, Like-Kind Exchanges, is attached to the tax return. P Form 2106 is attached. Q Form 8939 is attached. R Form 8990, 8992, 8993, or 8994 is attached. W Form 5471 or a schedule supporting Form 5471 such as Schedule G-1 is attached to the tax return. X Form 8865 is attached. 0 Scanned paper return forced to ERS for special action. See attachment in EUP. 2 Form 7204 is attached. 3 Form 7205 is attached. 5 Form 6251 is attached. 8 Taxpayers assert they are a victim of ID Theft by attaching Form 14039 or a police report to the return by asserting so in response to correspondence, without Form 14039 or a police report. Do not detach the documents from the return. 9 Taxpayer has attached a Spanish language version of the Identity Theft Affidavit, Form 14039(SP), to any type of form within the 1040 family. A Spanish version of the CP01S notice will be issued.

# Audit Codes

Exhibit 3.12.2-6 Audit Codes Audit Codes are used for center processing to identify certain conditions and trends for the Compliance function within the IRS. Listed here are the codes and their meaning. Code Explanation A Reserved B Identifies a missing or incomplete Schedule C, D, E, F or Form 4797, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ An amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule C, line 30, and Form 8829 is not attached. C Form 8283, Noncash Charitable Contributions, Part I: Any of the following are true: Checkbox 2b, Qualified Conservation Contribution, is marked or, Checkbox 2b1, Certified Historic Structures, is marked or, Line 3, column h, Qualified Conservation Contribution Relevant Basis, contains values other than zero. D High-income non-filer return identified by Collection. E Allows a credit for an "invalid VIN" due to a transcription error. H A form in the list below is present: Form 926, Foreign Trust Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations Form 5472, Information Return of a Foreign Owned Corporation OR Schedule B, line 8, is marked "yes" I The Yes box on line C of Form 5405 is checked, for a house bought after 4/30/2010 and before 10/1/2010 and a binding contract entered into before 5/1/2010. The settlement statement is not attached. The binding contract is not attached. J Special Use Only K Disclosure statement, refund scheme, preparer identified. Form 1040-NR with 8854 attached. L Joint Committee Case, Schedule C is present with a loss of greater than $5,000 request for prompt audit assessment identified by Exam. M ScanPaper return, transcribed VIN in Field 69VN1/69VN2 was corrected in ERS on Clean Vehicles Credits for SB/SE post-processing review. N Form 1040-NR filer occupation is entertainer or professional athlete. P Taxpayer did not reply to our request to complete Form 6251. Q Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), is attached to return. R ERS/Rejects tax examiners will enter Audit Code R only at the direction of Exam. ERS/Rejects tax examiners do not decide when audit code R is appropriate. S Reserved T Reserved for International Automatics. U Form 8862, Information to Claim Certain Credits After Disallowance, is attached and the Earned Income Credit portion of the form is completed. V Returns reflecting income which may be subject to self-employment tax W Form 3800, line 1p has an entry and: No Form 8908 is attached, or Form 8908 is attached but Part II is missing, or Form 8908 is attached but Part II Column A is incomplete or missing. X Return referred by ITIN Operations in Austin, TX, for potential audit of ITIN-related issues in Campus Exam. Not for use by ERS examiners. Note: ACD X is edited by Exam. Z Form 8919, Uncollected Social Security and Medicare Tax on Wages, is attached to the return and incomplete. 2 Form 8862, Information to Claim Certain Credits After Disallowance, is attached and the Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents portion of the form completed. 3 Form 8862, Information to Claim Certain Credits After Disallowance, is attached and the American Opportunity Tax Credit portion of the form completed.

# Unallowable Codes

Exhibit 3.12.2-7 Unallowable Codes Unallowable Codes are used to identify certain conditions in a tax return that are unallowable by law and not merely questionable. See IRM 3.12.2.64.3.1 for more information. Code Explanation 16 Lump Sum Distribution - Determined by Exam when certain Unallowable conditions are present on Form 4972. 17 Lump Sum Distribution - Determined by Exam when certain Unallowable conditions are present on Form 4972. 18 Lump Sum Distribution - Determined by Exam when certain Unallowable conditions are present on Form 4972. 19 Lump Sum Distribution - Determined by Exam when certain Unallowable conditions are present on Form 4972. 20 Lump Sum Distribution - Determined by Exam when certain Unallowable conditions are present on Form 4972. 33 Personal expenses for medical care - Medical expenses on Schedule A have been adjusted because items such as health club dues, diet foods, funeral expenses, maternity clothes, and meals or lodgings (unless provided by a hospital or similar institution for medical care) cannot be deducted. (See Publication 502.) Use U/A 33 for personal or living expenses, except transportation to obtain medical care incidental to medical treatment. 34 Federal taxes - The federal taxes on Schedule A cannot be allowed. Taxes that cannot be deducted include federal income tax, social security and railroad retirement taxes, the social security tax you paid for a personal or domestic employee, federal estate and gift taxes, customs duties and federal excise taxes on automobiles, tires, telephone service, and air transportation. 35 Utility taxes - The taxes on Schedule A have been adjusted. Utility taxes for sewers, water, phones, gas, electric, and garbage collection cannot be deducted. (This does not include certain sales taxes paid on certain utilities in Minnesota and Wisconsin.) 36 State and local taxes - The taxes on Schedule A have been adjusted. State and local taxes, such as those for hotel rooms, air fares, inheritance, stamps, and mortgage transfers cannot be deducted. 37 Automobile licenses and tags - The deduction for automobile license, registration, tag fees, or taxes on Schedule A has been disallowed. (Do not code U/A 37 for residents of Alabama, Arizona, California, Colorado, Connecticut, Georgia, Indiana, Iowa, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, Oklahoma, South Carolina, Virginia, Washington and Wyoming.) 38 Child Support - The expenses for support of children or dependents on Schedule A cannot be allowed because these expenses are not deductible. (Not to be confused with child care.) 40 Educational expenses - Educational expenses for someone other than yourself or your spouse cannot be deducted on Schedule A. (See Publication 508) (This includes tuition, books, transportation, lodging, etc., for individuals other than the taxpayer.) 41 Personal interest - Taxpayers cannot deduct personal interest paid on Schedule A. (TY19 and later) 42 Contributions - The charitable contributions on Schedule A have been adjusted because payments to individuals, lobbying organizations, foreign charities (except Canadian charities) and other nonqualifying recipients or the monetary value of the taxpayer's time or labor are not deductible. (See Publication 526.) 43 Auto expenses for trade or business - Changed the amount of automobile expenses based on the correct mileage rate for business (70 cents a mile for TY25; 67 cents for TY24; 65.5 cents for TY23). (See Publication 463.) 45 Sale of personal residence - The expenses incurred in the sale or purchase of residence cannot be deducted on Schedule A. Closing costs (for example, settlement and legal fees) or realtor commissions are not deductible. (See Publication 523). (Do not use U/A 45 if these items are specifically claimed as part of Moving Expense.) 46 Personal insurance - Premiums paid for insurance (other than medical insurance) cannot be deducted on Schedule A. (e.g., Life, auto, home liability, etc., not claimed as Employee Business Expense.) 56 Impairment-Related Work Expenses - The deduction for impairment related work expenses has been disallowed. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 61 Form 8859, Carryforward of the District of Columbia First-Time Homebuyer Credit, claim for $1,000 or more. 77 Disabled Access Credit - The amount being claimed on your tax return for disabled access credit is being examined. This amount has been frozen and will not be included in any anticipated refund amount. You will receive correspondence when the examination is completed and/or the remainder of the refund amount relating to this issue is released. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 79 Alternative Motor Vehicle Credit/Electric Motor Vehicle Credit - Taxpayer has claimed the same vehicle on more than one of Forms 8834, 8936 and/or 8910. 84 First-Time Homebuyer Credit Recapture - Our records show the taxpayer could not have transferred the home as part of a divorce settlement. 89 Health Coverage Tax Credit (HCTC) - The taxpayer is eligible for the Health Coverage Tax Credit and claimed the HCTC and Premium Tax Credit (PTC) for the same month, or The taxpayer-recipient is 67 years of age or older and ineligible for HCTC. 92 Loss of personal residence or property - The loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on the sale of a residence or other property used for personal purposes is not deductible unless "investment" or "rental" is present on Schedule D or Form 8949. [If Schedule D information or entries on Schedule A or other schedule report a loss on the sale of a personal asset not related to business (such as furniture, jewelry, automobile, personal residence, including loss on sale of residence on Schedule D, but not sale of stocks), do not attempt to make a change or adjustment regarding the loss, unless this is the only amount on Schedule D. See Error Code 204.] 98 More than three (3) Unallowables - If more than three unallowable codes are identified, enter unallowable code 98 without an amount in place of the third unallowable. 99 Unspecified Unallowable - This unallowable is to be used only when specifically instructed in IRM 3.12.3.

# Credit-Reduction States and Territories

Exhibit 3.12.2-8 Credit-Reduction States and Territories 2024 California (CA) New York (NY) Virgin Islands (VI) 2023 California (CA) New York (NY) Virgin Islands (VI) 2022 California (CA) Connecticut (CT) Illinois (IL) New York (NY) Virgin Islands (VI) 2021-2018 Virgin Islands (VI) 2017-2016 California (CA) Virgin Islands (VI) 2015 California (CA) Connecticut (CT) Ohio (OH) Virgin Islands (VI) 2014 California (CA) Connecticut (CT) Indiana (IN) Kentucky (KY) New York (NY) North Carolina (NC) Ohio (OH) Virgin Islands (VI) 2013 Arkansas (AR) California (CA) Connecticut (CT) Delaware (DE) Georgia (GA) Indiana (IN) Kentucky (KY) Missouri (MO) New York (NY) North Carolina (NC) Ohio (OH) Rhode Island (RI) Wisconsin (WI) Virgin Islands (VI) 2012 Arizona (AZ) Arkansas (AR) California (CA) Connecticut (CT) Delaware (DE) Florida (FL) Georgia (GA) Indiana (IN) Kentucky (KY) Missouri (MO) Nevada (NV) New Jersey (NJ) New York (NY) North Carolina (NC) Ohio (OH) Rhode Island (RI) Vermont (VT) Wisconsin (WI) Virgin Islands (VI) 2011 Arkansas (AR) California (CA) Connecticut (CT) Florida (FL) Georgia (GA) Illinois (IL) Indiana (IN) Kentucky (KY) Michigan (MI) Minnesota (MN) Missouri (MO) Nevada (NV) New Jersey (NJ) New York (NY) North Carolina (NC) Ohio (OH) Pennsylvania (PA) Rhode Island (RI) Virginia (VA) Wisconsin (WI) Virgin Islands (VI) 2010 Indiana (IN) Michigan (MI) South Carolina (SC) 2009 Michigan (MI) 2008-2006 There were no credit-reduction states. 2005-2004 New York (NY)

# Letter 12C Fill-in Paragraphs

Exhibit 3.12.2-9 Letter 12C Fill-in Paragraphs Fill-in Number Literal 1 Multiple tax years, need one year You sent us a tax return that includes page 1 for tax year XXXX and page 2 for tax year XXXX. To process your tax return for tax year XXXX, send us a completed return with your original signature (and your spouse's if filing jointly). Enclose your Form W-2 and all forms or schedules used to complete your tax return. XXXX = tax year (e.g., 2025) 2 Multiple tax years, need both years You sent us a tax return that includes page 1 for tax year XXXX and page 2 for tax year XXXX. To process your tax return, send us a completed return for each tax year with your original signature (and your spouse's if filing jointly). Enclose your Forms W-2 and all forms or schedules used to complete each tax return. XXXX = tax year (e.g., 2025) 3 Illegible name claiming deceased refund The name of the person claiming the deceased taxpayer's refund is illegible. Send us the printed name of the person claiming the refund. 4 Form 1128 required for accounting period change The tax return you submitted indicates you are changing your accounting period. Send us Form 1128, Application to Adopt, Change, or Retain a Tax Year, a copy of your application, or a statement relating to an application to change your accounting period. We are unable to process your return as submitted without this documentation or IRS authority. 5 EC 075, Excess Gross Social Security We have delayed processing your return because we have questions about the withholding or credit you claimed. Send us your official supporting documents such as Form SSA-1099, Form RRB-1099, or other Form 1099 to support the withholding or credit. If we do not receive proper official documents, we may deny your claim. 6 Qualified Joint Venture If you are electing to exempt rental real estate business from Schedule C or C-EZ as a Qualified Joint Venture Election, enter "Exempt-QJV" and the exempt amount on the dotted line to the left of Schedule SE, line 3. Subtract that amount from the total of lines 1a, 1b, and 2 and enter the result on line 3, Schedule SE. Send us your corrected Schedule SE. 7 Gambling: gross amount missing The gross amount of your gambling winnings received was not reported as income on Form 1040. Send us the amount of your gross winnings shown on Form(s) W-2G, box 1. 8 Student/Disabled Form 2441/Schedule 2 Special instructions apply for students or disabled persons when completing Child and Dependent Care Expenses, lines 4 and 5. Send us the number of months, during the tax year, that you (or your spouse if filing jointly) were either a full-time student or disabled. Also send us the correct amount for line 4 (and line 5, if filing jointly). 9 Excess SST The Forms W-2, submitted with your tax return, are insufficient to support the amount you claimed for excess social security and tier 1 RRTA tax withheld on your Form 1040. Send us all the Forms W-2 used to support your claim for excess SST/RRTA. 10 Form 2439 copy needed Send us a copy of Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, to support your entry on Form 1040. 11 EC 260 Form 8958 required It appears you have allocated community property on your tax return. Send us a completed Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, to support your return. 12 EC 260 Form 8958 incomplete Your Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, is incomplete. Entries are required for your spouse's or partner's first name, last name, and social security number. Send us a completed Form 8958. 13 EC 260 Schedule SE allocated It appears the self-employment tax from Schedule SE has been allocated. Self-employment tax can't be allocated. Please explain your figures and let us know if all the self-employment income reported on Schedule SE belongs to you alone. 14 EC 380 Form W-2 required Send us the Forms W-2 used to support the income you reported on Schedule C, line 1. If you received a Form 1099-NEC or Form 1099-MISC for payment in cash for services or for non-employee compensation and the payer did not withhold Social Security and Medicare taxes, send us a completed Schedule SE. If you are not liable for self-employment tax, provide an explanation. 15 Schedule C/F missing We are missing information needed to support your entry on Form 1040, __________________. It appears more than one schedule was used to compute the amount. Send us all the schedules used to support the amount. Note: TY18 and later, complete fill-in with "Schedule 1, line __" ; TY17 and prior, complete fill-in with "line __" . 16 Schedule C, line 1 inconsistent Explain the amount you entered on Schedule C, line 1, for statutory income. Your entry is inconsistent with the statutory wages reported on your Form W-2. 17 Schedule C, line 1 - SE and W-2 income - Form W-2 present Send us two completed Schedules C; one for statutory income and one for the other income reported on line 1 of Schedule C. Also, send a completed Schedule SE if you received payment in cash or as a non-employee, and the payer didn't withhold Social Security and Medicare taxes. If you are not liable for self-employment tax, provide an explanation. 18 Schedule C, line 1 - SE and W-2 income - No Form W-2 Send us two completed Schedules C; one for statutory income and one for the other income reported on line 1, along with Form W-2 to support the wage income. Also, send a completed Schedule SE if you received payment in cash or as a non-employee, and the payer didn't withhold Social Security and Medicare taxes. If you are not liable for self-employment tax, provide an explanation. 19 Form 8839 and supporting adoption documents Send us a completed Form 8839 and provide adoption-related documents to support your claim. Documentation must be provided for each child claimed, including any credit carry-forwards from a previous year. The required documentation varies depending on whether the adoption is final or whether the child has special needs. See the Form 8839 instructions for requirements. 20 Form 5405, line 2 You have conflicting entries on your Form 5405 regarding whether you are required to repay the credit. You checked the box on line 2, Form 5405, and made entries in Part II for a repayment. Send us a corrected Form 5405. 21 Form 5405 (FTHBC) multiple disposition boxes checked line 3 (line 13 PY) You checked more than one box (boxes a – h) on Form 5405 to define the disposition of your home. Please tell us which one best describes the disposition of your main home. 22 Form 5405 (FTHBC) - name/SSN doesn't match primary The social security number or name listed on your Form 5405 doesn't match the social security number or name of the primary taxpayer shown on page 1 of your tax return. Send us the correct name and social security number of the person filing Form 5405. 23 Second Correspondence Thank you for sending us the information we requested on your tax return for the period shown on page 1 of this letter. We still need more information to process your return. 24 Missing signature - spouse refuses to sign - FS 2 Only We can't process your return as filed. If this is a joint return, both spouses must sign. If you and your spouse do not agree to file a joint return, you must use a different filing status on your return. See Publication 501 for more information concerning your filing status options. 25 Claiming exemption for deceased spouse You may file a joint return if your spouse died during the tax year and you didn't remarry during the tax year. If you have dependent children, you may claim qualifying surviving spouse status for the following two years. Send us your spouse's name and social security number. 26 Form 8283, Schedule A Send us a completed Form 8283, Noncash Charitable Contribution. The appraiser must complete and sign Part IV, Declaration of Appraiser, on Form 8283. If you use appraisals by more than one appraiser, or if two or more appraisers contribute to a single appraisal, all the appraisers must sign Part IV of Form 8283. 27 Schedule A, charitable contributions - Art You checked box "a" (Art contribution of $20,000 or more) on line 2 of Form 8283, Noncash Charitable Contributions. An art deduction of $20,000 or more requires a separate qualified appraisal. Also, entries in Section B of Form 8283 require Parts IV and V to be completed. Send us a complete copy of the signed appraisal and a completed Form 8283, if applicable. 28 Credit for elderly (CFE) - IRS computes To have the IRS figure your credit for the elderly, you must send us a completed Schedule R. Check the appropriate box in Part I, and fill in Part II, and lines 11 and 13 of Part III, if they apply to you. 29 EIC - IRS computes To have the IRS figure your earned income credit, you must send us a completed Schedule EIC. 30 TY17 through TY12 Schedule 8812, Part I Schedule 8812, Part I, must be completed for each dependent that has an individual taxpayer identification number (ITIN) and is a qualifying child for the child tax credit. Send us a completed Schedule 8812. 31 Form 1095-A Send us a copy of your Form 1095-A, Health Insurance Marketplace Statement, to support your entries on Form 8962, Premium Tax Credit. If you didn't receive one or your Form 1095-A is incorrect, visit www.healthcare.gov or your state Marketplace website. 32 Loose Schedule H missing signature If you are not required to file a tax return, send us a completed Part IV, Schedule H, with your original signature. If someone other than the taxpayer is signing Schedule H, include a power of attorney, court certificate, or Form 2848. 33 Form 3468, NPS Send us a copy of the first page of NPS Form 10-168a, Historic Preservation Certification Application (Part 2-Description of Rehabilitation), to support your rehabilitation credit on Form 3468, Investment Credit. 34 Schedule A, Noncash contributions > $500,000 You claimed a charitable deduction of more than $500,000 on Schedule A, line __. A deduction of more than $500,000 requires a separate qualified appraisal. Also, entries in Section B of Form 8283 require Parts IV and V to be completed. Send us a complete copy of the signed appraisal and a completed Form 8283, if applicable. 35 Form 1040, line 40 (disaster notated) Schedule A is incomplete or missing from your return. Complete the schedule with information that supports your entry for itemized deductions on Form 1040. If applicable, you must also submit any supporting forms for Schedule A, such as Form 4684. 36 Multiple missing Forms and Schedules Your return is incomplete. Your supporting forms and attachments are missing and required to process your return. You must resubmit all applicable forms and schedules to support your entries on pages 1 and 2 of your return. Exception: Use this fill-in only when paragraphs I through N are not adequate to request all missing forms and schedules. 37 Liable for Self-Employment Tax on more than one line of the return The income you reported on lines __________, Form/Schedule ____, indicates you may be liable for self-employment tax. This tax applies when social security and Medicare taxes are not withheld from your earnings. For example, if you received cash for services performed or Form 1099-NEC or Form 1099-MISC for nonemployee compensation, your earnings may be subject to self-employment tax. Note: Use this fill-in only when income on more than one line of the return appears to be liable for Self-Employment Tax. Caution: Delete either "Form/" or "/Schedule" from the first sentence, based on the information being requested. 38 EC 190 - Thank You, 2nd Correspondence (PY) Thank you for sending us the information we requested. We still need more information. The adjusted gross income transferred from page 1 to page 2 of your return doesn't match your originally filed return. Send us a newly completed tax return with your original signature(s). Include all forms and schedules required to support your tax return entries. 39 Form 5405 disposition Your Form 5405 shows a disposition or change in the use of your main home. It also shows conflicting entries regarding whether you are required to repay the credit. If you checked the box on line 2 of Form 5405, no repayment of the credit is required. 40 FS 3 with spousal income Your return includes income for a spouse whom you claimed as a dependent. You must refile as either married filing jointly to include spousal income, or each spouse must file as married filing separately and report their individual income. Resubmit a corrected return with your original signature(s). Enclose all forms, schedules, and Forms W-2 used to complete your tax return. 41 Form 8959, line 19, withholding support The Forms W-2, submitted with your tax return, are insufficient to support the amount you claimed for withholding on Form 8959, line 19. Submit all applicable Forms W-2 used to support this amount. 42 IRC 965 Transition Tax Statement Internal Revenue Code (IRC) 965 Transition Tax Statement was either not attached or was incomplete. Send us a completed, signed IRC Section 965 Transition Tax Statement to support the Section 965 claims on your tax return. 43 Schedule A, line 11 If you included qualified disaster relief contributions in the total amount on Schedule A, line 11, identify the qualified contribution amount in your response.

# Reasonable Cause for Late Filing or Late Payment (in limited situations) and Failure to Make Estimated Tax Payments Properly

Exhibit 3.12.2-10 Reasonable Cause for Late Filing or Late Payment (in limited situations) and Failure to Make Estimated Tax Payments Properly If a Reasonable Cause for Late Filing and/or Late Payment is established, enter R and/or M in Field 01CCC. Exception: Do not enter CCC M if the return is a Combat Zone Return. See IRM 3.12.2.3.10. If Reasonable Cause for Failure to Estimate Taxes is established, enter P in Field 01CCC. Examples of Reasonable Cause for Late Filing or Late Payment Death or serious illness of the taxpayer or the immediate family. Unavoidable absence of the taxpayer. Destruction by fire or other casualty of the taxpayer's residence, place of business or records. Delay caused by erroneous information given by employee of IRS. Delay caused by or related to civil disturbance that was outside taxpayer's control. Timely requested forms not furnished timely. Advice or aid sought in preparing return from representative of IRS office on or before due date, but through no fault of the taxpayer, they were unable to see the representative. Taxpayer was unable to determine amount of deposit or tax due for reasons beyond the taxpayer's control. A taxpayer mailed their return or payment in time to reach the IRS office within the prescribed time period with the normal handling of the mail. Through no fault of the taxpayer, the return was not delivered within the prescribed time period. Note: The taxpayer's statement that they erroneously addressed their return or payment to the state taxing agency does not in itself constitute reasonable cause for filing or paying late, as a properly addressed envelope is a legal requirement in determining timely mailing/filing. Each case must be judged on its own merit based on the criteria outlined in IRM 20.1.1.3.2, Reasonable Cause. Lack of funds is an acceptable reasonable cause only when it is shown that the taxpayer was unable to pay despite their exercise of ordinary business care and prudence. This determination must be made on the basis of available information. Taxpayer does not have access to their records. Examples of Reasonable Cause for Failure to Make Estimated Tax Payments Properly If a Reasonable Cause for failure to pay estimated taxes is established, enter P in Field 01CCC. Taxpayer retired after age 62 in the tax year in which the estimated payments were required to be made or in the preceding year. Taxpayer became disabled in the tax year in which the estimated payments were required to be made or in the preceding year. Taxpayer provided evidence of casualty, disaster, or other unusual circumstance. Inability to pay is not a reasonable cause for Late Filing In cases where ignorance of the law is claimed, do not presume that reasonable cause applies. If taxpayer selects competent counsel, supplies them with all of the necessary and relevant information, requests them to prepare proper tax return, and is then advised incorrectly that returns are not required, then the taxpayer may have reasonable cause. In unusual or exceptional cases, refer the return to the manager for determination. If reasonable cause is not acceptable, enter 7 in Field 01CCC, and prepare Letter 854C. However, a representative's failure to timely mail a return is not reasonable cause. See IRM 20.1.1.3.2, Reasonable Cause.

# Three-Digit ZIP Codes

Exhibit 3.12.2-11 Three-Digit ZIP Codes Numerical Order Area 004, 005, 100-149 New York 010-027, 055 Massachusetts 028-029 Rhode Island 030-038 New Hampshire 039-049 Maine 050-054, 056-059 Vermont 060-069 Connecticut 070-089 New Jersey 090-099 America-Europe 150-196 Pennsylvania 197-199 Delaware 200, 202-205 District of Columbia 206-219 Maryland 201, 220-246 Virginia 247-268 West Virginia 270-289 North Carolina 290-299 South Carolina 300-319, 399 Georgia 320-339, 341, 342, 344, 346, 347, 349 Florida 340 America-Atlantic 350-369 Alabama 370-385 Tennessee 386-397 Mississippi 400-427 Kentucky 430-459 Ohio 460-479 Indiana 480-499 Michigan 500-528 Iowa 530-549 Wisconsin 550-567 Minnesota 570-577 South Dakota 580-588 North Dakota 590-599 Montana 600-629 Illinois 630-658 Missouri 660-679 Kansas 680-693 Nebraska 700-714 Louisiana 716-729 Arkansas 730-732, 734-749 Oklahoma 733, 750-799 Texas 800-816 Colorado 820-831 Wyoming 832-838 Idaho 840-847 Utah 850-865 Arizona 870-884 New Mexico 889-898 Nevada 900-908, 910-961 California 962-966 America-Pacific 967-968 Hawaii 970-979 Oregon 980-986, 988-994 Washington 995-999 Alaska Abbreviation Area Numeric Digits AA America-Atlantic 340 AE America-Europe 090-099 AP America-Pacific 962-966 AL Alabama 350-369 AK Alaska 995-999 AZ Arizona 850-865 AR Arkansas 716-729 CA California 900-908, 910-961 CO Colorado 800-816 CT Connecticut 060-069 DC District of Columbia 200, 202-205 DE Delaware 197-199 FL Florida 320-339, 341, 342, 344, 346, 347, 349 GA Georgia 300-319, 399 HI Hawaii 967-968 ID Idaho 832-838 IL Illinois 600-629 IN Indiana 460-479 IA Iowa 500-528 KS Kansas 660-679 KY Kentucky 400-427 LA Louisiana 700-714 ME Maine 039-049 MD Maryland 206-219 MA Massachusetts 010-027, 055 MI Michigan 480-499 MN Minnesota 550-567 MS Mississippi 386-397 MO Missouri 630-658 MT Montana 590-599 NE Nebraska 680-693 NV Nevada 889-898 NH New Hampshire 030-038 NJ New Jersey 070-089 NM New Mexico 870-884 NY New York 004, 005, 100-149 NC North Carolina 270-289 ND North Dakota 580-588 OH Ohio 430-459 OK Oklahoma 730-732, 734-749 OR Oregon 970-979 PA Pennsylvania 150-196 RI Rhode Island 028-029 SC South Carolina 290-299 SD South Dakota 570-577 TN Tennessee 370-385 TX Texas 733, 750-799 UT Utah 840-847 VT Vermont 050-054, 056-059 VA Virginia 201, 220-246 WA Washington 980-986, 988-994 WV West Virginia 247-268 WI Wisconsin 530-549 WY Wyoming 820-831

# Attachment Guide

Exhibit 3.12.2-12 Attachment Guide Form/Document Detach Information Automated Substitute for Return (ASFR) Collection Letters: 2320 - 2331 2465 - 2469 2564 and 2566 No Route the return to Collections. Form W-7, Application for an IRS Individual Taxpayer Identification Number No SSPND 651 for transshipment to AUSPC for processing. AUSPC only, SSPND 640, if original W-7 is attached to the return. Form W-7A, Application for IRS Adoption TIN Yes Refer to IRM 3.12.37.14, Command Code ATINQ. Form 911, Request for Taxpayer Advocate Service Assistance Yes Note the DLN on Form 911 and route to Taxpayer Advocate Service. Form 8379, Injured Spouse Allocation, or statement/notation that taxpayer was "Injured Spouse" No Refer to IRM 3.12.2.3.5. Form 8857, Request for Innocent Spouse Relief Yes Refer to IRM 3.12.2.3.6. Form 9465, Installment Agreement Request, or a statement requesting an installment agreement/payment plan Yes Route to Collection. Form 13441-A, Health Coverage Tax Credit Program Registration (misrouted or loose) Yes Refer to Error Code 358, IRM 3.12.3.31.9.3(4). LTR 0012C, Individual Return Incomplete for Processing: Form 1040, or LTR 1263-C, Return/Form Incomplete for Processing; Second Request No SSPND 410. Take return to your lead tax examiner. Lead tax examiner - Research CC ERINV for status of correspondence return and take appropriate action. Personal Documents, SSN card, marriage license: Original Photocopy Yes No Give the document(s) with taxpayer's complete address to your lead tax examiner to return to the taxpayer. Take no action. Petitions - If the taxpayer attached a "Petition in opposition of tax law provisions" to the return Yes. Note on the left side of the tax return, "Detached petition and the date" Take petition to your lead tax examiner. Mail the petition to IRS Room 3244 1111 Constitution Avenue, NW Washington, DC 20224 Remittance including EIP prepaid debit cards No Hand carry to your manager or designee to follow procedures in IRM 3.8.46, Discovered Remittance. State and/or local tax returns - original or copy with original signature Yes Route to Receipt and Control, Media Transport Unit. Statement that taxpayer wants refund applied to "Public Debt" Yes If a check made out to the Bureau of Public Debt is found attached to the return, route to Receipt and Control per IRM 3.8.46, Discovered Remittance. Statement that taxpayer is unable to pay tax or requests Installment payments or 433 series, Yes Note amount paid (if any), total of tax due on the statement and route to Collection. At SPC option, a photocopy of pages 1 and 2 of the tax return may be routed to Collection instead of making the notations. Refer to Processing Reference Guide for information on hardship returns.

# Examples of Self-Employment Income

Exhibit 3.12.2-13 Examples of Self-Employment Income This list is not all-inclusive. A Accountant Airplane Pilot Artist Automatic Data Processing Equipment Operator Actor/Actress Analyst Art Worker Administrator Appraiser Athlete Agent Architect Auctioneer B Babysitter Barber Billing Clerk Brick Mason Baggage Porter Bartender Bookbinder Brick Setter Bailiff Baseball Player Bowler Building Contractor Baker Bellperson Broker Bus Driver Bank Teller C Cabinet Maker Cleaner Computer Operator Consultant Caddie Clerk (any kind) Computer Specialist Cook Cafeteria Worker Commercial Artist Conductor Cutter Civil Engineer Commissions Construction Worker D Dancer Dental Assistant Director's Fees Dressmaker Data Processing Operator Dentist Disc Jockey Driver Day Trader Designer Domestic Cook Decorator Detective Draftsman E Economist Elevator Operator Engraver Equipment Operator Electrician Engineer (any kind) Entertainer F Farmer Fire person Fortune Teller Funeral Director Farm Worker Football Player Freelance Writer G Garbage Collector Gas Station Worker Golfer Guide Gardener Geologist Guard H Hairdresser Hostess Housekeeper Host Hotel Worker I Inspector Instructor Interpreter Investigator J Janitor Jockey Judge K Keypunch Operator L Laborer Lawn Care Lay Midwife Library Assistant Launderer Lawyer Librarian Longshore Worker M Mail Carrier Messenger Model Musician Mail Clerk Metal Worker Motion Picture Worker Music Teacher Mechanic Miner Mover N Navigator Nurse Nursery Worker Newspaper Carrier Nursemaid O Official (sports) Optical Worker Optician Optometrist P Painter Photographer Policewoman Proofreader Palmist Pilot Pollster Protective Agency Parking Lot Attendant Plumber Porter Publisher Pharmacist Policeman Printer R Radio DJ Real Estate Worker Registered Nurse Retail Trader Railroad Conductor Receptionist Repair person (any kind) Roofer Railroad Worker Recreation Worker Reporter S Sales Clerk Seamstress Statistical Clerk Stock Clerk Scientist (any kind) Sheriff Statistician Surgeon Sculptor Singer Stenographer Surgical Worker Secretary Social Worker Steward Surveyor T Tailor Telephone Operator Therapist Truck Driver Taxicab Driver Telephone Repairman Timekeeper Tutor Teacher (any kind) Telephone Worker Trainer Typist Teamster Teller Transcriber Telegraph Operator Textile Worker Translator U Upholsterer Usher V Veterinarian W Waiter Washer Welder Window Washer Waitress Watchman Wholesale Trader Writer Y Yardman

# Frivolous Filer Definitions

Exhibit 3.12.2-14 Frivolous Filer Definitions Term Definition Alleged Churches/First Amendment Receives income from non-religious sources, and may claim a vow of poverty. Submits a return where all, or substantially all, of the gross income is claimed as a contribution deduction on Schedule A of the return. Altered Form Return with any or all line items altered with intent of facilitating non-compliance with the tax laws. Altered Jurat/UCC 1-207 Submits a return that contains income and deductions but the jurat has been altered or stricken. May include reference to UCC 1-207 or a statement that the return was not signed under penalties of perjury. Amended Returns/Form 843 Files an amended return or a Form 843 to obtain a total refund on all taxes paid on prior years, based on a tax avoidance argument not supported by law. Bosnian Refugee Claims Involves claims citing that they are entitled as "Bosnian Refugees" to eliminate any formerly claimed tax. Challenges to Authority/Due Process Various administrative authorities such as delegation orders, summons authority, privacy act, etc., questioned or challenged. Challenges to Authority/Title 26 or Law in Other Documents Argument that Title 26 of the U.S. Code is not law because it was never enacted as named. Disclaimer Submits documentation which contains a disclaimer. It states "disclaims the liability for the tax due" making the liability on the return zero. Eisner vs. Macomber The individual reports wages but deducts them as non-taxable compensation/remuneration referencing Eisner vs. Macomber. The individual may alter line items showing non-taxable compensation or non-taxable receipts to back out some or all of their income, generally resulting in a zero tax liability. EIC with Disability Income The individual reports disability income as the sole source of income to claim earned income credit, but does not attach a Form W-2 or Form 1099. Exempt Employees of World Bank Organization The individual files a return with a statement attached which asserts "World Bank Employee - Wages are not subject to income and/or non-taxable income - World Bank" . The individual lists an adjustment equal to the amount of wages and claims adjusted gross income is zero. May also cite IRC 893 which provides a tax exemption to some employees of international organizations. Federal Reserve Notes are Not Legal Tender Argument that wages are not taxable because they were paid in federal reserve notes. Argument that the notes are not valid currency or legal tender and thus those who possess them cannot be subject to a tax on them. Fifth Amendment Makes an improper blanket assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information. Form 2555 Deduction The individual submits a return showing income, then deducts that same amount (or a large portion of that amount) by adding "Form 2555" to line 21. Form 2555, Foreign Earned Income, is usually attached showing the individual's foreign address in the United States, the individual also shows their income on Form 2555 as "foreign earned income" even though the employer's address is also in the United States. Correspondence may be attached arguing the term "income" and stating that each of the several states are foreign countries. In Lieu of Wages/Receipts Not Income The individual submits a document captioned "In Lieu of U.S. Income Tax Form 1040" . The individual argues that salaries and wages are not income within the meaning of the Sixteenth Amendment. The individual also argues that the labor worth a certain amount is exchanged for money worth the same amount and therefore there is no income to be taxed. IRC 1.861 For Individual Employees The individual files a return or claim stating that wages are not taxable based on CFR 1.861 and requests a refund of all Federal withholding. IRC 1001/Even Exchange The statement, "IRC 1001 and following; even exchange of property-Labor (property) NO GAIN REALIZED Butcher's Union Co. v. Crescent City Co., 111 US 746 S. Ct. Rpt.pp.660-661" is generally found on an attachment to the return for Miscellaneous Deductions. All or part of all income is excluded by listing it as an itemized deduction and therefore, eliminating it as taxable income. Schedule A Miscellaneous Deduction line may say "See Statement" referring to the Miscellaneous Itemized Deduction statement. IRC 3121 The individual contends that IRC 3121 exempts the Federal Insurance Contribution Act (FICA) portion of earnings from the definition of "wages" and therefore from "gross income" for federal income tax purposes. The individual attempts to reduce taxable income by their portion of withheld social security tax. IRS is a private organization/collects, tributes, not taxes Argument that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933. Also, that since the IRS deposits revenues in the Federal Reserve Bank, it is a collection agency for the bank, thereby removing the cloak of governmental immunity. Additionally, they argue that the Department of Treasury is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" . Non-negotiable Charge Back The individual attempts to sell their "birthright" back to the government for a large dollar amount and requests that a "Treasury Direct Account" be set up to hold the money. Not a person or individual Argues that they are not a person or individual within the meaning of Internal Revenue Code and are therefore not subject to income taxes. Not a citizen/Free Citizen/Not a resident of the Federal Zone Argues that they are not a citizen of the U.S. and receive no income or benefits from sources within the U.S. May also claim that they do not live in a federal district or zone. Not Liable The individual submits returns or claims with "Not Liable" printed on the return. The returns also reflect zero money amounts. Obscene/Vulgar/Harassment Submits documents or other materials indicating that non-filing stems from dissatisfaction with tax policies or taxation in general, which is often expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner. This includes individuals who, through receptive correspondence, indicate a refusal to comply with their tax obligations. (Note: This only applies to non-processable returns.) Protest Against Government Action/Inaction Argument that refusal to file or pay is justified because they disagree with government policies or spending plans. May claim deductions or credits because of an objection to having taxes used to support various government activities. Reparation Tax Return or correspondence referring to a reparation settlement based on the impact of slavery, or may refer to black taxes, reparations for African Americans, or 40 acres and a mule. The Reparation Tax scheme may also include a Form 2439 with a fictitious IRC such as Overpayment of Taxes, Department of the Treasury, or Investment Taxes. Services not taxable/Thirteenth Amendment/Form of servitude Argument that income results only from sale of goods, and therefore value of services is not taxable. This includes indentured servitude arguments and barter offsets. May also claim that the Thirteenth Amendment outlawed slavery. May claim to be "natural enfranchised individuals and freemen" who are residents of states, and therefore nonresident aliens for the purpose of the Internal Revenue Code. Sixteenth Amendment Argues that the Sixteenth Amendment was not properly ratified and therefore the federal government does not have legal authority to collect an income tax without apportionment. Taxes are Voluntary/Law Does Not Require Return or correspondence submitted that argues that income taxes are voluntary. Unsigned Returns A statement why the return is not signed is attached or added to the return itself indicating disagreement with the tax system. Untaxed Argument that they should not be taxed and attempts to drop out of the Social Security System. Also, will withdraw or rescind their SSN, claiming sovereign citizenship. Valuation Argument that income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value or labor (barter income), etc. Wages deducted in Costs of Goods Sold A return is submitted with a Schedule C attached claiming a deduction, which is equal or nearly equal to the amount reported as wage income. Wages/Receipts Not Income The individual argues that salaries and wages are not "income" within the meaning of the Sixteenth Amendment, which grants Congress the power to "Lay and collect taxes on income, from whatever source derived..." . The individual could also argue that labor worth a certain amount is exchanged for money worth the same amount; therefore, there is no income to be taxed. Zero Return/Nunc Pro Tunc Cites the phrase "Nunc Pro Tunc" which is Latin for "Then and Now" on the return, Form 1096, and/or Form 1099. Examples include taxpayer lists all zeros and claims a refund of all federal withholding; taxpayer claims an amount for wages, AGI, and Standard Deduction, but enters no tax and claims a refund for all federal withholding; or taxpayer claims wages and AGI and carries AGI to refund line. Zero Returns/U.S. vs Long A return with zero money amounts. Reference may be made to "U.S. vs Long" . Zero Wages on a Substitute Form Taxpayer generally attaches either a substitute Form W-2, Form 1099, or Form 4852 that shows "$0" wages or no wage information. A statement may be included indicating the taxpayer is rebutting information submitted to the IRS by the Payer. Entries are usually for Federal Income Tax withheld, Social Security Tax withheld, and/or Medicare tax withheld. An explanation on the Form 4852 may cite "statutory language behind IRC 3401 and 3121" , or may include some reference to the company refusing to issue a corrected Form W-2 for fear of IRS retaliation.

# Glossary/Acronyms

Exhibit 3.12.2-15 Glossary/Acronyms Glossary Definition ACTION CODES Numeric codes edited in the bottom center margin of a return to reject documents and identify the reason the document has been rejected. ACTION TRAIL A notation in the lower left side margin on page 1 of a return which indicates or explains an action taken. ADDITIONAL CHILD TAX CREDIT (ACTC) The name of the refundable portion of the Child Tax Credit (CTC) for tax years prior to TY21, and TY22. ADOPTION TAXPAYER IDENTIFICATION NUMBER (ATIN) A unique nine-digit temporary taxpayer identification number assigned by the IRS for a child in a domestic adoption where the adopting taxpayers are in the process of legally adopting the child but cannot get a social security number for the child. Taxpayers obtain an ATIN by filing a Form W-7A with the Austin Campus, ATIN unit. ADVANCE CHILD TAX CREDIT (AdvCTC) The portion of the Child Tax Credit issued to taxpayers as a monthly advance on their tax returns in TY21. Reconciled using Schedule 8812. AUDIT CODE An alpha character edited in the right hand margin of a return to identify a specific condition for the Examination Operation. CAPTION AREA The area on a return which includes the taxpayer's TIN, name, and address. CENTRAL AUTHORIZATION FILE (CAF) Magnetic tape files containing information about the authorized representatives of certain taxpayers who may file returns and receive tax information, inquires, or refunds on behalf of the taxpayer. CHECK DIGITS The two-digit alpha characters used to identify the primary taxpayer's account. CHILD AND DEPENDENT CARE CREDIT (CDCC) Credit allowed to certain taxpayers who paid child care expenses. CHILD TAX CREDIT (CTC) Credit allowed to certain taxpayers claiming qualifying children on their tax returns. COMPUTER ASSISTED PIPELINE REVIEW (CAPR) A computer-based data system designed to detect error trends and provide feedback to Pipeline area based on returns which must be processed through the Error Resolution System (ERS). COMPUTER CONDITION CODES (CCC) A single alpha or numeric character edited on a return which either identifies a special condition or directs the computer to take a specific programmed action. CCCs are posted to the Master File. CORRESPONDENCE ACTION SHEET (CAS) Form prepared by tax examiners, requesting missing information, to initiate a letter to the taxpayer. DEPENDENCY STATUS INDICATOR (DSI) A code on the tax return which indicates that the taxpayer can be claimed as a dependent on another person's tax return. DOCUMENT LOCATOR NUMBER (DLN) A thirteen or fourteen-digit number assigned to every return and document input through the Automatic Data Processing (ADP) system. EARNED INCOME CREDIT (EIC) Earned Income Credit is a special credit for certain qualified taxpayers who work and have limited income. The credit reduces the amount of income tax owed (if any) and is intended to offset some of the increases in living expenses and social security taxes. ECONOMIC IMPACT PAYMENT (EIP) Payments issued directly to potentially qualifying taxpayers in TY20 and TY21. Reconciled on the tax return as the Recovery Rebate Credit (RRC). EMPLOYER IDENTIFICATION NUMBER (EIN) A nine-digit number that identifies the account of a business taxpayer on the Business Master File. ENTITY Term used by the Internal Revenue Service for the information which identifies the taxpayer's name, address, social security number, filing status, and tax period. ENTITY INDEX FILE Includes the name and addresses of all taxpayers who file returns within the center area. ERROR RESOLUTION SYSTEM (ERS) A system for the examination and correction of returns rejected because of taxpayer and processing errors. EXTENSION DATE (EXT-DT) The approved extension return due date can be found as TC 460 under the Variable Data column of CC IMFOLT. FIDUCIARY RETURN A return signed by someone other than the taxpayer that is accepted by the IRS in recognition of the legal relationship between the taxpayer and the person signing the return. (This includes returns filed for "minor" or "incompetent" taxpayers.) FILING STATUS (FS) A category determining the standard deduction and tax rate based on the taxpayer's marital status and living situation. FISCAL YEAR A fiscal year is twelve full months ending on the last day of any month other than December. FORM 4227 Intra-SC Reject or in-house Routing Slip FORM 6001 Letter 12C Correspondence Action Sheet is prepared by tax examiners to request missing information to initiate a letter to the taxpayer. FORMS PROCESSING CODES (FPC) A single character edited on a return to direct the computer to take specific actions in processing the return. FRIVOLOUS FILER/NON-FILER Filers and non-filers who use certain types of tax avoidance arguments that are not supported by law. INDIVIDUAL MASTER FILE (IMF) A magnetic tape file containing information about taxpayers filing individual tax returns and related documents. INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER (ITIN) An ITIN is a number assigned by the IRS to those taxpayers who are not eligible to obtain an SSN. It is used for tax purposes only. An ITIN will begin with "9" and the fourth and fifth digits are 50 through 65, 70 through 88, 90 through 92, or 94 through 99. 9XX-50-XXXX through 9XX-65-XXXX 9XX-70-XXXX through 9XX-88-XXXX 9XX-90-XXXX through 9XX-92-XXXX 9XX-94-XXXX through 9XX-99-XXXX Note: Fourth and fifth digit is "66" (9XX-66-XXXX) is used for international IRSN only. INJURED SPOUSE A person filing a joint return with an overpayment of taxes which is offset by the spouse's tax debt or non-tax debt such as a student loan or back child support. (A claim may be filed to protect the injured spouse's share of the joint overpayment.) INNOCENT SPOUSE RELIEF An election made by a person filing a joint return with a claim that the understatement of tax is attributable to an erroneous item of the other spouse in which the claimant person had no knowledge. INTEGRATED SUBMISSION AND REMITTANCE PROCESSING SYSTEM (ISRP) A computerized system that will convert paper tax and information documents and remittances received by the IRS into perfected electronic records of taxpayer data. INTERNATIONAL RETURN A return on which income is excluded or not reported because of revenues from, payments to, or residency in a foreign country. JULIAN DATE A calendar date expressed as the number of days since the beginning of the year. For example, February 1 is Julian Date 032. JURAT The perjury statement required in the signature area of a tax return, form, or schedule. LOCKBOX A process whereby remittance and documents are mailed to a designated P.O. Box at a commercial bank. MASTER FILE A magnetic tape record that contains taxpayer accounts. MEDICAL SAVINGS ACCOUNT (MSA) A MSA is a tax-exempt trust or custodial account set up in the USA exclusively for paying the qualified medical expenses of the account holder, spouse, or dependent(s) in conjunction with a high deductible health plan. MISBLOCKED RETURN A Form 1040 found in the wrong type of block or batch. MISFILED RETURN A Form 1040 filed when a BMF form should have been used. MISPLACED ENTRY An entry on the tax return or ERS screen display that was entered on the wrong line by the taxpayer or Code and Edit, or transcribed incorrectly by ISRP in the wrong field. Moving the entry to the correct field on the screen does not create a math error NAME CONTROL The first four characters of the taxpayer's surname. NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) A six-digit numeric code that identifies a particular business activity. NON-RESIDENT ALIEN An individual who is neither a citizen nor a resident (for tax purposes) of the United States. PERFECTING Making returns acceptable for data entry through editing process. PIPELINE The area in the IRS centers that process a return from the time it is received until the data from that return is entered to an account in the IRS' main computer. These areas include Receipt and Control, Code and Edit, Integrated Submission and Remittance Processing System (IRSP), and Input Correction. POWER OF ATTORNEY (POA) A form authorizing a representative to perform certain acts on the taxpayer's behalf. PREPARER CODE A check mark edited to the right of a Paid Preparer's EIN, TIN, or SSN. For other Preparers (i.e., VITA, TCE, and IRS), it is a single-digit numeric or alpha code. PREPARER TAX IDENTIFICATION NUMBER (PTIN) A PTIN is a nine-character alphanumeric identification number of the paid preparer on a return which begins with a "P" followed by eight numbers. PRIMARY TAXPAYER The taxpayer who is listed first on the name line of the caption, regardless of whether that taxpayer is male or female. PRIMARY SOCIAL SECURITY NUMBER (P-SSN) The social security number associated with the taxpayer whose name appears first on a return. Any reference to an SSN will also include an ITIN and IRSN. PRIOR YEAR RETURN A return for a tax period prior to the current tax year. PROCESSABLE RETURN A return that meets all of the requirements for ISRP input. PROCESSABLE RETURN RECEIVED DATE Date that the IRS received a return. If that date is unknown and a Received Date is required, there is a prescribed formula for determining the date to enter as the Received Date. (Required on Amended, Fiscal Year, Short Year, Prior Year, and Delinquent Returns.) RECOVERY REBATE CREDIT (RRC) Credit taken by taxpayers whose Economic Impact Payments (EIP) in TY20 and TY21 were less than the total amount they qualified for. RE-INPUT DOCUMENT A document that did not post to the Master File when originally entered and is now being entered again with a Form 3893, Re-Entry Document Control. REMIT RETURN A tax return filed with a payment attached. REMITTANCE A check, money order, or cash sent in with a return. REMITTANCE PROCESSING SYSTEM (RPS) A computer controlled system through which payments and documents may be processed at a single multi-functional workstation. RETURN A legal document used by the taxpayer to report income, deductions, and tax liability. RETURN DUE DATE The date, after which, a return is considered delinquent. RETURN PROCESSING DATE (RPD) The date when a reply to correspondence is received after the return due date. RETURN PROCESSING CODE (RPC) A single character edited on a return to direct the computer to take specific actions in processing the return. This code does not post to the Master File. SECONDARY TAXPAYER The taxpayer who is listed second on the name line of the caption of a Joint Return, regardless of whether the taxpayer is male or female. SECONDARY SOCIAL SECURITY NUMBER (S-SSN) The social security number of the taxpayer whose name appears second on a joint return. Any reference to an SSN will also include an ITIN and IRSN. SELF-EMPLOYMENT TAX Social security and Medicare tax levied on self-employment income. This tax is computed on Schedule SE. SE METHOD CODE A single-digit numeric code entered in the bottom center margin of Long Schedule SE when the optional method is used to calculate self-employment tax. SEPARATE LIABILITY ELECTION An election made by a person claiming separate liability from their spouse. SHORT LINERS Taxpayer who acquires insurance through the Exchange (ACA) and choose to pay the full amount of insurance. The taxpayer must complete Form 8962. SIGNIFICANT ENTRY Any amount other than zero. SOCIAL SECURITY NUMBER (SSN) A nine-digit number identifying the account of an individual on the Individual Master File. SPECIAL PROCESSING CODE (SPC) A single character edited on a return to direct the computer to take specific actions in processing the return. This code does not post to the Master File. SPOUSAL INDICATOR A single-digit numeric code edited to a joint return that indicates which taxpayer is filing Form 5329 and /or Form 8606. SOCIAL SECURITY NUMBER (SSN) SPOUSAL INDICATOR SSA 205(c) The section of the Social Security Administration (SSA) regulation which denies the issuance of a social security number to a non-residential alien (NRA) who has no source of income in the United States. STATUTE RETURN A return filer for a tax period more than three years prior to the current tax period. STATUTORY EMPLOYEE Self-employed independent contractors who can report income and expenses on Schedule C, but social security and Medicare taxes withheld are reported on Form W-2. SUFFIX Information added at the end of a word, phrase, or series of numbers. For instance, a title may be edited as a suffix to a name as in Firstname Lastname, Exec. TAXPAYER ADVOCATE SERVICE An independent organization within the IRS created by Congress to resolve problems encountered by taxpayers in dealing with the IRS. TAX PERIODS The time covered by a particular return represented by the year and month in which this period ends. For example, December 31, 2025 will be referred in two ways: YYYYMM = 202512 TY25 TAXPAYER IDENTIFICATION NUMBER (TIN) A nine-digit number which identifies the account of an individual or business taxpayer. The TIN may be a social security number (SSN), an individual taxpayer identification number (ITIN), Internal Revenue Service number (IRSN), adoption taxpayer identification number (ATIN) or an employer identification number (EIN). TRANSACTION CODE (TC) A three-digit numeric code defining the precise nature of an action posted to the Master File. TRANSCRIPTION The process of transferring information from documents to a computer-readable form. Also called data conversion, input, and entry. UNALLOWABLE CODE A two-digit code edited on Form 3471 to identify conditions on a return that are unallowable by law. UNCOMPUTED RETURN A tax return by a taxpayer who chooses to have the IRS compute the tax or refund due. UNPOSTABLES Data which cannot be entered successfully to an account at the Enterprise Computing Center at Martinsburg (ECC-MTB) and is returned to the center for corrective action. UNPROCESSABLE DOCUMENT A document that cannot be perfected for the ADP system, usually because of incomplete information. Acronyms Definition ACA Affordable Care Act ACD Audit Code AdvCTC Advance Child Tax Credit APFD Alaska Permanent Fund Dividend APO Army Post Office APTC Advance Premium Tax Credit ASFR Automated Substitute for Return ATIN Adoption Taxpayer Identification Number AUSPC Austin Submission Processing Center BMF Business Master File BOB Block Out of Balance C&E Code and Edit CAF Centralized Authorization File CAPR Computer Assisted Pipeline Review CAS Correspondence Action Sheet CCC Computer Condition Code CDCC Child and Dependent Care Credit CFE Credit for the Elderly CGD Capital Gains Distribution CLS Common Law Spouse CLW Common Law Wife COMM Commissioner CONS Conservator CP Computer Paragraph CPA Certified Public Accountant DAN Deposit Account Number DCB Dependent Care Benefits DD Direct Deposit DECD Deceased DLN Document Locator Number DPO Diplomatic Post Office DOD Date of Death DSI Dependent Status Indicator EC Error Code ECC-MTB Enterprise Computing Center at Martinsburg (formerly MCC - Martinsburg Computing Center) EEFax Enterprise Electronic Fax e.g., For Example EGA Ethics in Government Act EIC Earned Income Credit EIF Entity Index File EEIF Enhanced Entity Index File EIN Employer Identification Number EIP Economic Impact Payment EPP Excess Parachute Payment ERS Error Resolution System ES Estimated Tax ESOP Employee Stock Option ESPI Estimated Tax Penalty Indicator etc. Et Cetera EXEC Executor EXT-DT Extension Date FB Fringe Benefit FDB Fraud Detection Branch FICA Federal Insurance Contributions Act FMV Fair Market Value FNS Fuel From Non-Conventional Source FPC Forms Processing Code FPO Fleet Post Office FRP Frivolous Return Program FS Filing Status FTD Federal Tax Deposit FTF Failure to File FTP Failure to Pay FY Fiscal Year GDN Guardian HHM Household Member HSH Household Employee HQ Headquarters ICS Integrated Collection System IDRS Integrated Data Retrieval System i.e., That is IMF Individual Master File IRA Individual Retirement Arrangement IRC Internal Revenue Code IRM Internal Revenue Manual IRS Internal Revenue Service IRSN Internal Revenue Service Number ISRP Integrated Submission and Remittance Processing System ITIN Individual Taxpayer Identification Number KCSPC Kansas City Submission Processing Center KITA Killed in Terrorist Action LEM Law Enforcement Manual LSE Lump Sum Election LTC Long Term Care MCC Major City Code Mortgage Credit Certificate MeF Modernized Electronic Filing MFS Married Filing Separately Multiple Filing Status MFT Master File Tax MIC Mortgage Interest Credit MSA Medical Savings Account NAICS North American Industry Classification System NAP National Account Profile NCOA National Change of Address NEI Non-Taxable Earned Income NO National Office NOL Net Operating Loss NPS National Park Service NQ Non-Qualifying NR No Record NRA Non-Resident Alien ODC Orphan Drug Tax OMM Operation Mass Mailing OSPC Ogden Submission Processing Center OWPT Overpaid Windfall Profit Tax P&A Planning and Analysis Operation PAL Passive Activities Loss PBA Principal Business Activity PCD Program Completion Date PDS Private Delivery Service PECF Presidential Election Campaign Fund PER REP Personal Representative POA Power of Attorney POD Post of Duty POW/MIA Prisoner of War/Missing in Action PRI Wages Earned as a Prisoner PPR (Casual Rental of) Personal Property P-SSN Primary Social Security Number PTC Premium Tax Credit PTIN Paid Preparer Tax Identification Number PY Prior Year Processing Year QFE Qualified Farmers Election QPA Qualified Performing Artist RE Reimbursed Expenses REC Residential Energy Credit REMIC Real Estate Mortgage Investment Conduit RPC Return Processing Code RPD Return Processing Date RPS Remittance Processing System RRB Railroad Retirement Benefits RRC Recovery Rebate Credit RRTA Railroad Retirement Tax Act RTN Routing Transit Number SCH Scholarship SE Self-Employment SERP Servicewide Electronic Research Program SFR Substitute for Return SPC Submission Processing Center Special Processing Code SRP Shared Responsibility Payment SSA Social Security Administration SSI Supplemental Security Income SSN Social Security Number S-SSN Secondary Social Security Number SST Social Security Tax SUB Supplemental Unemployment Benefit TANF Temporary Assistance for Needy Families TAS Taxpayer Advocate Service TC Transaction Code TCE Tax Counseling for the Elderly TDI Taxpayer Delinquency Investigation TE Tax Examiner TEI Tax Exempt Interest TIA Tax Information Authorization TIN Taxpayer Identification Number TP Taxpayer TPNC Taxpayer Notice Code TR Trustee TRA Trade Readjustment Act TS Taxpayer Services TY Tax Year USPS United States Postal Service VA Veterans Administration VIN Vehicle Identification Number VITA Volunteer Income Tax Assistance W&I Wage and Investment (renamed Taxpayer Services) W/H Withholding