IRM 3.12.213 — Form 1066, U.S. REMIC Income Tax Return

# Part 3. Submission Processing

Chapter 12. Error Resolution Section 213. Form 1066, U.S. REMIC Income Tax Return 3.12.213 Form 1066, U.S. REMIC Income Tax Return Manual Transmittal September 08, 2025 Purpose (1) This transmits revised IRM 3.12.213, Error Resolution, Form 1066, U.S. Real Estate Mortgage Investment Conduit Income Tax Return. Material Changes (1) IRM 3.12.213.1.6(1) - Added Taxpayer Service to the table. (2) IRM 3.12.213.2.3(1) - Updated Taxpayer Advocate Service (TAS) with the TAS standard language from the TAS document that contains the most current approved standardized language. (IPU 25U0026 issued 01-06-2025) (3) IRM 3.12.213.2.3(3) - Added "See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines" per TAS IRM review and feedback. (IPU 25U0026 issued 01-06-2025) (4) IRM 3.12.213.2.3(6) - Reworded and added IRM 13.1.7.4, Exceptions to Taxpayer Advocate Service Criteria, for information on cases that TAS will no longer accept, per TAS IRM review and feedback. (IPU 25U0026 issued 01-06-2025) (5) IRM 3.12.213.2.3.1(2) - Corrected the Taxpayer Advocate Service (TAS) Service Level Agreements link per Consistency Template. (6) IRM 3.12.213.2.15(2) - Added reference to Return Due Dates exhibit. (7) IRM 3.12.213.4(3) - Updated tax years. (8) IRM 3.12.213.5.3(1) - Updated the years in the Field 01TXP examples for Processing Year (PY) 2026. (IPU 25U0026 issued 01-06-2025) (9) IRM 3.12.213.5.5(1) - Clarified the tax years Schedule D was included on the Form 1066 in the table. (10) IRM 3.12.213.5.7.1(1) - Updated the verbiage in the second row of table per feedback. (11) IRM 3.12.213.7.5(2) - Updated table with direct deposit information. (12) IRM 3.12.213.8 - Added new subsection for Direct Deposit. (13) IRM 3.12.213.8.1 - Added new subsection for guidance on Direct Deposit Section 60 field errors. (14) IRM 3.12.213.8.2 - Added new subsection for guidance on Direct Deposit Section Field 60RTN Routing Transit Number. (15) IRM 3.12.213.8.2.1 - Added new subsection for guidance on Direct Deposit Section Field 60RTN invalid conditions. (16) IRM 3.12.213.8.2.2 - Added new subsection for guidance on Direct Deposit Section Field 60RTN correction procedures. (17) IRM 3.12.213.8.3 - Added new subsection for guidance on Direct Deposit Section Field 60TDA Type of Depositor Account. (18) IRM 3.12.213.8.3.1 - Added new subsection for guidance on Direct Deposit Section Field 60TDA invalid conditions. (19) IRM 3.12.213.8.3.2 - Added new subsection for guidance on Direct Deposit Section Field 60TDA correction procedures. (20) IRM 3.12.213.8.4 - Added new subsection for guidance on Direct Deposit Section Field 60DAN - Depositor Account Number. (21) IRM 3.12.213.8.4.1 - Added new subsection for guidance on Direct Deposit Section Field 60DAN invalid conditions. (22) IRM 3.12.213.8.4.2 - Added new subsection for guidance on Direct Deposit Section Field 60DAN correction procedures. (23) IRM 3.12.213.9.1(3)(b)(c) Table - Updated Statute Returns from 2020 to 2021 or prior information per latest guidance. (IPU 25U0264 issued 2-24-2025) (24) IRM 3.12.213.9.5(4) - Updated paragraph for BMF ERS consistency. (IPU 25U0026 issued 01-06-2025) (25) IRM 3.12.213.9.7(3) - Updated the Received Dates and Tax Periods Dates in Error Code 007, Received Date is Earlier Than Tax Year, for PY 2026. (IPU 25U0026 issued 01-06-2025) (26) IRM 3.12.213.9.21(1) - Added missing field designators to the table per feedback. (27) IRM 3.12.213.9.23(1) - Added missing field designators to the table per feedback. (28) IRM 3.12.213.9.24(3) - Updated the Correction Procedures to identify the Taxpayer Notice Code (TPNC) literal to issue correspondence. (IPU 25U0026 issued 01-06-2025) (29) IRM 3.12.213.9.24.1(1) - Reworded the paragraph for Taxpayer Notice Code (TPNC) literals. (IPU 25U0026 issued 01-06-2025) (30) Exhibit 3.12.213-2 - Updated the Action Code table. (IPU 25U0264 issued 2-24-2025) (31) Revised the Internal Revenue Manual (IRM), where necessary, for the following types of editorial changes: Removed consistency diamonds from subsections that are not consistent Corrected spelling and grammatical errors Corrected references, citations and links Updated figures and exhibits Updated dates throughout Updated form titles Effect on Other Documents IRM 3.12.213, dated November 25, 2024 (effective January 01, 2025), is superseded. The following IRM Procedural Updates (IPUs) are incorporated into this IRM: 25U0026 issued January 06, 2025, IPU 25U0264 issued 02-24-2025. Audience Taxpayer Services, Submission Processing Effective Date (01-01-2026) Scott Wallace Director, Submission Processing Customer Account Services Taxpayer Services

# Program Scope and Objectives

3.12.213.1 (01-31-2024) Program Scope and Objectives Purpose: This IRM section provides instructions for Error Resolution System, Input Correction Operation, to resolve errors made by taxpayers, and by Submission Processing campus operations, that affect the processing of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Audience: Error Resolution System, Input Correction Operations Supervisory Tax Examining Assistant Lead Tax Examining Technician Tax Examining Technician Policy Owner: Director, Submission Processing. Program Owner: Return Processing Branch, Business Master File (BMF) Section Primary Stakeholders: Other areas that may be affected by these procedures include (but not limited to): Accounts Management (AM) Small Business Self-Employed (SBSE) Large Business and International (LB&I) Chief Financial Officer (CFO) Taxpayer Advocate Service (TAS) Statistics of Income (SOI) Tax Exempts and Government Entities (TEGE) Compliance, Modernized E-File (MEF) Submission Processing (SP)

# Background

3.12.213.1.1 (01-01-2018) Background Records will be placed in the Error Inventory or the Workable Suspense Inventory for correction. Once the Error Resolution tax examiner accesses the record and it is displayed on the screen, it must either be fully corrected, placed in suspense for additional information, or rejected from pipeline processing. Corrections will include correcting errors in editing or transcription and correction of math errors. This manual is your main source of information in correcting the record on the screen and the related return. You will also find procedures in the following Internal Revenue Manuals: IRM 3.12.38, Error Resolution–Business Master File (BMF) General Instructions, containing instructions for correcting records on the screen, document control, inventories and management reports. IRM 3.11.213, Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, Returns and Document Analysis, which provides instructions for coding and editing of Form 1066.

# Authority

3.12.213.1.2 (01-01-2019) Authority Authority for these procedures is found in the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury Regulations: IRC 6201(a) IRC 6213(b) Note: The above list may not be all inclusive of the various updates to the IRC.

# Responsibilities

3.12.213.1.3 (09-01-2022) Responsibilities The Campus Director monitors operational performance for the Submission Processing campus. The Operation Manager monitors operational performance for their operation. The team manager/lead monitors and ensuring employees have the tools to perform their duties. The team employees follow the instructions contained in this IRM and maintain updated IRM procedures.

# Program Management and Review

3.12.213.1.4 (01-01-2020) Program Management and Review Program Goal: Correct any errors that are found using the Error Resolution System (ERS). Program Reports: The Batch Block Tracking System (BBTS) captures and stores a vast amount of inventory used for processing. System control reports are available on Control-D. Program Effectiveness: Embedded Quality Submission Processing (EQSP) Balanced Measures Managerial Reviews Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration.

# Program Controls

3.12.213.1.5 (01-01-2018) Program Controls Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

# Terms/Definitions/Acronyms

3.12.213.1.6 (01-01-2026) Terms/Definitions/Acronyms The table lists commonly used acronyms and abbreviations and their definitions. Acronyms and Abbreviations Definition AAR Administrative Adjustment Request ADP Automatic Data Processing APO Army Post Office BMF Business Master File c/o Care of C&E Code and Edit CAS Correspondence Action Sheet CC Command Code CCC Computer Condition Code CDP Collection Due Process CI Criminal Investigation CII Correspondence Imaging Inventory CP Computer Paragraph DLN Document Locator Number DPO Diplomatic Post Office EEFax Enterprise Electronic Fax e.g. For Example EIF Entity Index File EIN Employer Identification Number ERS Error Resolution System etc. Et Cetera Exam Examination Fax Facsimile FedEx Federal Express Corporation FPO Fleet Post Office FRP Frivolous Return Program ID Identification or Identity IDRS Integrated Data Retrieval System ISRP Integrated Submission and Remittance Processing IMF Individual Master File IPU IRM Procedural Update or Interim Procedural Update IRC Internal Revenue Code IRS Internal Revenue Service LB&I Large Business and International MCC Major City Code MFT Master File Tax N/A Not Applicable NAP National Account Profile OAR Operations Assistance Request OID Original Issue Discount OMB Office of Management and Budget OSPC Ogden Submission Processing Center or Ogden Submission Processing Campus P&A Planning and Analysis PTIN Preparer Tax Identification Number R&C Receipt and Control Rev. Proc. Revenue Procedure RO Revenue Officer RRA98 Restructuring and Reform Act of 1998 SBSE Small Business Self-Employed SCRS Service Center Replacement System SERP Servicewide Electronic Research Program SFR Substitute for Return SLA Service Level Agreement SOI Statistics of Income SP Submission Processing SPDC Submission Processing Design Center SSN Social Security Number TAS Taxpayer Advocate Service TBOR Taxpayer Bill of Rights TS Taxpayer Services TC Transaction Code TE Tax Examiner TEGE Tax Exempt and Government Entities TETR Telephone Excise Tax Refund TIN Taxpayer Identification Number TPNC Taxpayer Notice Code TS Taxpayer Services U.S. United States UCC Uniform Commercial Code URF Unidentified Remittance File USPS United States Postal Service YYYYMMDD Year Year Year Year Month Month Day Day ZIP Zone Improvement Plan (Zip Code) Note: The above list may not be all inclusive.

# Interpretation Words

3.12.213.1.7 (01-01-2018) Interpretation Words The table lists Interpretation Words and their definitions. Word Definition Example of using a word that is open to interpretation Note: This column is for illustration purposes only. Fair Provide accurate and professional service to all persons without regard to personal bias. For example: Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely. Significant Entry Any entry other than zero or blank. For example: Copy any significant amount on Line 1d to Line 2d, when the amount on Line 2d is blank and the Common Parent's Name and EIN are blank. Timely Provide the time frame to consider what is or is not timely. For example: A Final return is received after the short period due date but received timely.

# Related Resources

3.12.213.1.8 (01-01-2026) Related Resources The following resources may assist in performing the work as outlined in this IRM. Servicewide Electronic Research Program (SERP) Submission Processing Design Center (SPDC) IRM 3.11.213 Code & Edit, Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return IRM 3.12.38, Error Resolution, BMF General Instructions

# General Information

3.12.213.2 (01-01-2021) General Information The purpose of this section is to provide instructions for general required processing actions on Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return to eliminate repetition of the same instructions in different subsections. In case of a conflict of instruction between this general subsection and the subsequent specific subsection, the specific subsection will govern. This IRM cannot address every possibility that occurs while perfecting returns or documents. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to the subject matter expert (SME), lead or manager to determine the corrective action.

# ♦Business Master File (BMF) Consistency♦

3.12.213.2.1 (01-31-2024) ♦Business Master File (BMF) Consistency♦ The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Error Resolution System (ERS) processing IRMs. Ogden, Kansas City, and Return Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency. A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections. Text in normal print is the common processes for BMF returns. The text in BOLD print is form-specific and applies to this IRM only.

# ♦IRM Deviation Procedures♦

3.12.213.2.2 (01-01-2021) ♦IRM Deviation Procedures♦ Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

# ♦Taxpayer Advocate Service♦

3.12.213.2.3 (01-06-2025) ♦Taxpayer Advocate Service♦ The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (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. TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Taxpayer Services (TS) Division, to affect the resolution of the taxpayer's problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs). Refer taxpayers to TAS when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria), or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day. See IRM 21.1.3.18 , Taxpayer Advocate Service (TAS) Guidelines. The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" : The issue can be resolved within 24 hours. The IRS takes steps within 24 hours to resolve the taxpayer's issue. When making a TAS referral, use Form 911, and forward to TAS following your local procedures. For more information, see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, and IRM 13.1.7.4 , Exceptions to Taxpayer Advocate Service Criteria, for information on cases that TAS will no longer accept.

# ♦TAS Service Level Agreements (SLAs)♦

3.12.213.2.3.1 (01-01-2026) ♦TAS Service Level Agreements (SLAs)♦ The National Taxpayer Advocate reached agreements with the Commissioners of the Taxpayer Services (TS) Division, Small Business/Self Employed (SB/SE) Division, Tax Exempt Government Entities (TEGE), Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) that outline the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs). The SLAs are found at TAS Service Level Agreements.

# ♦Business Master File (BMF) Identity (ID) Theft♦

3.12.213.2.4 (01-01-2024) ♦Business Master File (BMF) Identity (ID) Theft♦ BMF (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" : SSPND with Action Code 360 to route the return to Planning and Analysis (P&A). Attach Form 4227, Intra-SC Reject or Routing Slip, (or other proper routing slip) with the notation "ID THEFT" . Give the entire case to the manager/lead. The manager/lead will expedite the case to the P&A staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

# Local Desk Procedures

3.12.213.2.5 (01-01-2023) Local Desk Procedures Some Submission Processing Campuses have developed local Desk Procedures. Such procedures are only to be used: To supplement existing Headquarter procedures To expand Submission Processing Campus Error Resolution procedures by incorporating material from other IRMs, Automatic Data Processing (ADP) handbooks, (etc.) For local routing procedures Are not limited to the examples listed above Unit managers must have a signed approval on file from the responsible Operation Manager on all Submission Processing Campus Desk Procedures. All existing local information and procedural issuances must be reviewed periodically by the Operation Manager level (at least 2 times a year or with each IRM revision) to ensure conformance with Headquarters procedures (make necessary changes, secure necessary approvals, etc.). Immediately notify the Headquarter tax analyst of any processing problems that cause a work stoppage.

# ♦Customer Account Data Engine (CADE) 2♦

3.12.213.2.6 (01-10-2020) ♦Customer Account Data Engine (CADE) 2♦ The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal to implement a single, modernized programming solution which provides daily processing of taxpayer accounts. The CADE 2 solution is comprised of several components, to modernize the IRS to a daily processing environment with several Transition States. The Business Master File (BMF) campus cycles are: Campus Cycle: Thursday - Wednesday Master File Processing: Friday - Thursday Notice Review Saturday: Monday (8+ days) Unpostables: New available - Tuesday; Closing - Tuesday BMF transaction posting time frames are outlined as follows: Transactions will be viewable using Corporate Files Online (CFOL) command codes on Saturday following the weekly Master File processing run on Thursday. Transaction will be viewable as posted transactions using Integrated Data Retrieval System (IDRS) command codes on Monday following the weekly Master File processing run on Thursday Note: Implementation of CADE 2 accelerated weekly IDRS analysis. Previously, transactions such as this would have been pending on IDRS and not reflected in the CFOL command code displays. Transaction posting dates will reflect a format of "YYYYCCDD." "YYYY" will indicate the year and "CC" will indicate the posting cycle. For Individual Master File (IMF) transactions, the following values for DD are defined: 01 = Friday 02 = Monday 03 = Tuesday 04 = Wednesday 05 = Thursday Note: Business Master File (BMF) cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY will indicate the year. CC will indicate the posting cycle. BMF posting cycles in TXMOD will reflect a format of YYYYCCDD. The DD value will be 08.

# Error Inventory Report

3.12.213.2.7 (01-01-2018) Error Inventory Report Each day, the Error Inventory Report will be furnished showing the blocks by the block control number and block Document Locator Number (DLN) in DLN order. Each batch will be on separate pages. Blocks received from Blocks out of Balance (BOB) will also be on separate pages. A copy of the Error Inventory Report can be placed on the carts of documents and used as a charge-out. This will help to determine when a cart is completed. The first line of the Error Inventory report will show the number of working days the records on that page have been in the Error Inventory. This will enable work left from a previous day to have priority.

# Types of Errors

3.12.213.2.8 (01-01-2020) Types of Errors The Error Resolution System (ERS) will identify errors according to type and priority. The record heading will show the type of error. This IRM will furnish the solution for the displays of the errors. There may be records where the examiner finds that programming has not furnished a section that is needed to solve an error. In this event, the tax examiner can use Command Code (CC) GTSEC. Following are the types of errors that might be displayed in priority rank: Action Code Error (Priority I) Section Error (Priority II) - includes terminus error and Integrated Submission and Remittance Processing (ISRP) problem code Validity Error (Priority III) Math/Consistency Error (Priority IV)

# Status Codes

3.12.213.2.9 (01-01-2018) Status Codes Records for the documents in the Error Resolution System (ERS) are controlled by Status Codes. The status is updated when the record is placed in a specific inventory. Below is a list of the status codes and a brief explanation: Status Code Description Status 100 1. Error awaiting correction. 2. Records are in the Error Inventory. Status 2XX 1. Record awaiting information. 2. Records are in the Unworkable Suspense Inventory. Status 3XX 1. Suspense period expired - no response. 2. Records are in the Workable Suspense Inventory. Status 4XX 1. Record with information, awaiting correction. 2. Records are in the Workable Suspense Inventory. Status 900 Record is on the Unselected Inventory. The final two positions of the Status Code will consist of the first two positions of the Action Code. This will put similar work together on the Workable Suspense Inventory. For example: 321 - Suspense period expired, no response to taxpayer correspondence. If a record has been selected to be held for Quality Review, the positions two and three will be "QA." Records for which the suspense period has expired before being activated are automatically moved from Status 2XX to Status 3XX.

# Command Codes

3.12.213.2.10 (01-01-2020) Command Codes The IDRS Command Codes (CC) needed for correcting the Error Inventory and the Workable Suspense Inventory are briefly described below. They are also explained in IRM 3.12.38, Error Resolution, General Instructions. Any Command Code permitted by the Employees Security File is available. CCs are used to tell the system which function to perform. CCs must be entered in a valid format. Otherwise, a field error displays. Correct the data entered using the applicable CC. The valid CCs are: Command Code Description ACTON Establish control bases Update or close control bases that are open Correct name controls on dummy accounts Append history items to modules on IDRS Generate Transaction Code (TC) 902 to secure tax modules and their related entity data from the Master File ACTVT Used to transfer an Unworkable Suspense record to the Workable Inventory. BMFOL To research entity and/or tax data which may or may not be available on IDRS. This command code allows several screen displays based on the definer code input. It should be used in lieu of the Command Code MFTRA. BRTVU To access data that was transcribed from line items and/or computer- generated transactions from BMF returns and their schedules. It can be used in researching original returns. CRECT Used to enter a correction. CRECT will be valid only after an error has been displayed in response to the GTREC command. The Remittance field in a record is not correctable with the Command Code CRECT. DLSEC Used to delete a section of the record. ENMOD To research for name control and transaction code information. ENREQ Entered (with a blank definer) after a response to ENMOD indicates that the entry is on the file. Used to generate CC BNCHG. ERINV Used to research a Document Location Number (DLN) or Taxpayer Identification Number (TIN) on the Error Resolution system. ERVOL Used with a Status Code to display the number of records in the current Workable Inventory. GTREC Used to access the first error record in an Error Resolution error block or access a specific record in the Workable Suspense Inventory. GTRECW Used to recover an Error Resolution data record that was already worked. This Command Code can be used at any time on the same processing day. If an error is discovered on a subsequent day, the record must be corrected using Notice Review and Adjustment procedures. GTSEC Used to obtain the display of any data section within the record in progress. The response will be the display of all correctable fields of the requested section, including blank fields. No computer- generated fields or error indicators will be shown. If no data is present in the specified section, the format of the requested section will be displayed. GTRECQ Used to access a worked record that was held for Quality Review. INOLE To research the entity module. This information includes name lines, name control, address, employment codes, filing requirements, etc. MFREQ To request an entity module or tax module and its related entity data from Individual Master File (IMF), Business Master File (BMF), Individual Retirement Account (IRA), or Employee Plan Master File (EPMF) when case control is not required. NAMEB/NAMEE To research for a missing TIN. A name is required to be input to research the Names Search Facility (NSF). NWDLN Used to assign a renumbered DLN on an ERS record. RJECT Used to delete a record from Error Resolution. SSPND Used with an Error Resolution Action Code to place a record into suspense status. SSPND is valid for Error Correction and Suspense Correction. TERUP To allow an employee to delete his/her erroneous entry on the day of input. An employee can only delete his/her own entries. TRDBV Tax Return Data Base - To access 100 percent of return data as well as all subsequent corrections entered via Error Resolution and Generalized Unpostable Framework (GUF) This command code can be used to verify specific line items (including any correction activity), resolve taxpayer inquires, identify refund issues, and verify filing and return status. Also available is Command Code TRERS, which will link the DLN entered with Command Code GTREC to Command Code TRDBV. TRERS Is an extension of CC TRDBV developed for Error Resolution processing and acts like TRDBV. It allows the tax examiner to select a return based on the DLN of the latest GTREC command executed.

# Error Resolution Action Codes

3.12.213.2.11 (01-01-2021) Error Resolution Action Codes The Error Resolution Action Code indicates that specific information is missing or that the record is to be rejected from processing. The code will have sufficient detail to indicate if correspondence is to be sent to the taxpayer or specific in-house research or action is required. Document Perfection tax examiners will assign a three-digit code to numbered returns when they determine that the document is unprocessable in its present form either because additional information is needed, or some manual intervention is required. This code will be edited in the lower left margin of page 1. See Exhibit 3.12.213-2, Action Codes. Form 3696, Correspondence Action Sheet, used for initiating correspondence, will be attached by Document Perfection. For routing within the campus (In-House Research) an explanation concerning the missing information will need to be attached to the return. The Action Code assigned by Document Perfection will be transcribed into the record of the Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. The presence of a valid Action Code other than 001, will place the record in the Suspense Inventory, either Workable or Unworkable. If the Action Code assigned by Document Perfection is invalid or incomplete, the record will be assigned to the Error Inventory for correction or deletion of the code. Only one Action Code may be assigned at one time to a record. The priority of the Action Codes will be: 310 320 6XX 4XX 3XX 2XX An Error Resolution tax examiner may enter an Action Code on a record, delete or correct an invalid code or may overlay the present Action Code with another to either re-suspend or reject from Error Resolution. This is done by entering a valid Action Code with a CC SSPND, RJECT or NWDLN. See IRM 3.12.38, BMF General Instructions, for explanations of these codes. An Error Resolution tax examiner entering a valid Action Code with CC SSPND will clear the record from the screen and placing the record in either Workable Suspense or Unworkable Suspense. An Error Resolution tax examiner entering a valid Action Code with the Command Code (CC) RJECT will reject the record from Error Resolution. Generally, the Service Center Control File (SCCF) will be automatically updated for the rejected records.

# Computer Condition Codes

3.12.213.2.12 (01-01-2018) Computer Condition Codes Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. The valid CCC's are B, D, F, G, L, O, R, W, X, 3, 4 and 7. The codes are edited to the dotted portion of Section one, Line one. Below is a chart showing the Condition Codes, their definitions, and the checks. Code Definition Error Checks B Electing out of installment sales D Reasonable cause for failure to pay taxes timely Must have a Received Date (Error Code 028). Not edited unless instructed by Headquarters. F Final Return Cannot be coded "G" (field error). G Amended Return (1) No other codes allowed except "W" or "Three" (field error). (2) Must have Received Date (Error Code 028). (3) All fields must be blank, except RMIT, 01CCC, 01NC, 01EIN, 01TXP and 01RCD (Error Code 010). L Treaty Based Positions O Module Freeze Manual Refund R Reasonable cause for delinquency Must have a Received Date (Error Code 028). Not edited unless instructed by Headquarters. W Return cleared by Statute Must be present on Statute Cases (Error Code 001). X Refund Freeze Code 3 No reply received for correspondence sent to taxpayer, suppress credit interest. Must not contain Correspondence Received Date (Error Code 073). 4 Return prepared under IRC Section 6020(b) 7 Reasonable cause for delinquency or late payment considered and denied. Must have a Received Date (Error Code 028). Not edited unless instructed by Headquarters.

# Clear Code C and 000

3.12.213.2.13 (01-01-2018) Clear Code C and 000 The letter "C" is used as Clear Code on an Error Code where the error condition is such that the resolution does not require a change or correction to the record as displayed. The display will include a clear field labeled "CL" to indicate the possible need of a Clear Code. Command Code CRECT is used to enter the "C" . Error Codes showing the possible need of a Clear Code are cleared by either correcting the condition or entering a "C" to indicate no correction is needed. Code "C" is also used for clearing the Action Code from the screen after corrections for the Action Code are completed, or, as with 410, the Action Codes must be cleared initially, so other errors in the record can be resolved. The presence of the "C" with Priority I Error indicates that you have made the corrections to the Action Code and now wish to have any other errors on the record displayed (allowing for suspense correction only). The "000" is also used as a Clear Code when deleting Action Codes. It will only be used for invalid or erroneous Action Codes after you have determined there is no reason to suspend the record. Programming erases all "C" Clear Codes for Error Codes when a record is suspended with Command Code SSPND. Programming erases all "C" Clear Codes for Error Codes and Action Codes for the new day's Error Inventory and Workable Suspense Inventory. Unfinished records from the previous day will contain none of the "C" Clear Codes that were assigned to a record that was not completely worked. Note: The "C" Clear Code will prevent any other corrections to the record. If a correction must be entered and transmitted, it must be done prior to transmitting the "C" Clear Code.

# Related Forms

3.12.213.2.14 (01-01-2023) Related Forms The following forms are referenced in this section. The chart below shows the form number, form title and use: Form Title Use Form 3465 Adjustment Request To request transfer of credits. Form 3696 Correspondence Action Sheet To initiate correspondence to the taxpayer through the Correspondence Unit. Form 4227 Intra–SC Reject or Routing Slip To identify the reason for using the Action Code. Form 4251 Return Charge-out To re-charge the return from one user to another, or to replace the return in the file.

# Statute Control Cases

3.12.213.2.15 (01-01-2026) Statute Control Cases Any return that has a processing date equal to or greater than two years and 9 months after the return due date ("G" coded returns) or the later of the return due date or the Received Date (non "G" coded returns) is a statute control document and will appear on the screen with Error Code 001, unless CCC "W" is present on the record. The "W" indicates the record has been cleared by the Statute Unit. The due date for the 2016 year and thereafter for Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, is the 15th day of the third month after the tax period ending. Additionally, see IRM 21.7.4.4.3.1, Business Tax Returns and Non-Master File Accounts-Income Taxes/Information Returns, for further information regarding Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, due dates, payments, extensions. If Then Return secured by Compliance (e.g., 6020(b)) or a substitute return prepared by Examination (SFR in top margin) with Form 13133, Expedite Processing Cycle, attached, Enter Computer Condition Code "W" in 01CCC and on the dotted portion of Section 1, Line 1 and continue processing.

# Refund Returns - 45 Day Jeopardy and High Dollar Refunds

3.12.213.2.16 (09-01-2022) Refund Returns - 45 Day Jeopardy and High Dollar Refunds Document Perfection identifies refunds and for initiating requests for manual refunds. Note: Expeditious processing of refund returns is critical if the 45-day period is about to expire. Action Code (AC) "341" should be input by Code & Edit to show that a manual refund is needed. If these are not found in Code & Edit, Error Resolution examiners need to be aware of the following criteria: If Then The processing date is more than 20 days after Received Date or the return due date (whichever is later) and the 45-day interest free period is in jeopardy and the refund amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods. SSPND with AC "341" and route to Error Resolution/Rejects for manual refund The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ SSPND with AC "341" and route to Error Resolution/Rejects for manual refund.

# Taxpayer Advocate Service (TAS Manual Refunds)

3.12.213.2.16.1 (01-01-2018) Taxpayer Advocate Service (TAS Manual Refunds) Any return hand walked by a Taxpayer Services (TS) Submission Processing (SP) liaison for TAS as a manual refund should be processed by a lead tax examiner or designated tax examiner using the following procedures in the order listed: CCC "O" should be edited on the return and entered in Field 01CCC. Delete the CCC "Y" from Field 01CCC. Continue the process of the return according to Error Code processing. Correspondence - If the return requires correspondence for missing or incomplete information, then do the following: Complete the correct correspondence request form and request all information that is missing or incomplete Inform the TS Submission Processing liaison of all information that is being requested Suspense (SSPND) with correct suspense code and give the return back to the TS Submission Processing liaison Contact will be made with the Taxpayer Advocate by the TS Submission Processing liaison to obtain the required information needed to complete the processing of the return Other Suspense Action–If the return requires other suspense action, then do the following: Initiate suspense (SSPND) action according to the Error Code procedures Inform the TS Submission Processing liaison the reason of the action taken Give the return back to the TS Submission Processing liaison Contact by the TS Submission Processing liaison will be made with the Taxpayer Advocate, who in turn will take the necessary action to complete the processing of the return Assigning Taxpayer Notice Codes (TPNC)/Math Error - When a math error is found, do the following: Assign the TPNC following the Error Code procedures Inform the TS Submissions Processing liaison of the TPNCs issued after all TPNCs have been assigned Suspend (SSPND) with correct code (suspense should be done at the generated error code) and give the return to the TS SP liaison Contact by the TS Submission Processing liaison will be made with the Taxpayer Advocate, who in turn will take the necessary action to complete the processing of the return When Balance Due/Overpayment Math Error Code generates do the following: Make a screen print of the Error Code Screen Display, highlight the Computer Generated Refund amount, and attach the print to the front of the return with the entity portion of the return visible Enter the amount the taxpayer claimed as the amount they requested to be refunded back into Field 07B/R If Balance Due/Overpayment Math Error Code regenerates because the taxpayer made a math error when computing their refund, then do the following: Make a screen print of the Error Code Screen Display and highlight the Computer-Generated Refund Amount Attach the print to the front of the return with the entity portion of the return visible Assign the correct TPNC Once return processing is complete, give the return, Form 12412, Operations Assistance Request, and the Error Resolution screen print to the TS Submission Processing liaison. Rejects Suspense - Manual refunds that are hand walked by a W and I Submission Processing liaison that have been suspended should be processed as follows: Follow the specific instruction given by the TS Submission Processing liaison regarding correspondence issues and the assignment of the TPNCs Refer to instructions shown above

# ♦Frivolous Arguments♦

3.12.213.2.17 (04-04-2022) ♦Frivolous Arguments♦ Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.12.213-6, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses. Review the return to decide whether it appears to be a frivolous return. Frivolous Return Criteria If Then The return meets any of the conditions found as a frivolous return. See Exhibit 3.12.213-6, Potential Frivolous Arguments for Examination Review. Exception: If the return shows Action Code 331 and has a Form 4227, Intra-SC Reject or Routing Slip, attached with the remarks, "Refer to Exam FRP for audit after processing," continue to next procedure. Remove the return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review. Examination has selected the return as frivolous, shown by an Action Code 331 and a Form 4227, Intra-SC Reject or Routing Slip, with the remarks "Refer to Exam FRP for audit after processing," but sends the return for processing, Continue processing the return using procedures in IRM 3.12.213. However, do not circle or void the Action Code showing a frivolous return. Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument: Returns that have only zeros, blanks, or no entries. Returns showing "None," "Not Liable," etc.

# ♦Criminal Investigation (CI) Referral♦

3.12.213.2.18 (01-01-2024) ♦Criminal Investigation (CI) Referral♦ Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information. If CI has stamped the return, do not send for further CI action. For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following: Caution: If there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, then see below. Refund Claim Ogden ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious. Attach Form 4227, Intra-SC Reject or Routing Slip to the copy. Route the copy to Ogden, Mail Stop 9001, Criminal Investigation (CI). Edit an action trail "Copy to CI," or "CI Referral," or similar language in the lower left corner going vertically up the side of the return. Continue processing the return. Because of the repetitive nature of the ERS/Rejects function, ERS/Rejects Tax Examining Technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If ERS finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral. If a suspicious return is found, and there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, then do the following: Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy. Route the copy to: Ogden Criminal Investigation (CI), Mail Stop 9001. Edit an action trail "Copy to CI," or "CI Referral," or similar language in the lower left corner going vertically up the side of the return. Continue processing the return. If the return fits other criteria (e.g., Frivolous Argument), take proper action.

# ♦Examination (Exam) "Funny Box" ♦

3.12.213.2.19 (01-01-2021) ♦Examination (Exam) "Funny Box" ♦ The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

# Routing of Attachments

3.12.213.2.20 (01-01-2018) Routing of Attachments The following information pertains to taxpayer correspondence: If Then Unrelated, unanswered taxpayer correspondence is attached and no action has been taken, Detach and route to Accounts Management. Unanswered taxpayer correspondence related to the Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, is attached, Make a photocopy of the attachment and forward it to the correct area. Installment Agreement request, Form 433-B, Collection Information Statement for Business, Form 433-D Installment Agreement, or Form 9465, Installment Agreement. Detach and send to Collections. Attachment or photocopy of an attachment is to be routed elsewhere, Be sure that the attachment contains name, address, Employer Identification Number (EIN) and Received Date.

# IRS Employee Contacts

3.12.213.2.21 (07-12-2022) IRS Employee Contacts The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98) Section 3705(a) provides identification requirements for all IRS employees working tax related matters. All IRS employees who communicate by telephone, correspondence or face-to-face, with taxpayers or their personal representatives, on tax-related matters are required to provide (at a minimum) the following information: Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information. Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), provided as appropriate during the conversation, their last name and badge identification (ID Card) number. Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee's title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information. Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature. When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager. Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves and should give their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information. It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in-person) their badge identification (ID Card) number on the first contact.

# ♦Working Trail♦

3.12.213.2.22 (01-01-2024) ♦Working Trail♦ It is important to leave a legible "Working Trail" (or "Action Trail" ) using blue ink for those who may work with the return later. Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner (or use Form 12648, Error Correction 90 TPNC). See IRM 3.12.213.9.24.1, Taxpayer Notice Codes, for additional information. If corresponding with a non-suspense letter, "X" and write the corrected money amounts to the left of each original point(s) of error. Write money amounts in dollars only or dollars and cents, as applicable. Arrowing is allowed for money amounts when there are no intervening entries between the arrow and the line to which the money is to be entered. Leave a working trail on the return when changes are made to the following items: Employer Identification Number (EIN) or Social Security Number (SSN) Tax Period Received Date Computer Condition Code (CCC) Correspondence Received Date (CRD) Reminder: Circle out incorrect Employer Identification Numbers (EINs), Social Security Numbers (SSNs), Tax Periods, and Received Dates. When working Reject re-inputs, circle out any previous Action Codes shown on the front of the return, if no longer applicable. When working Rejects, write "Voided" with the date above the DLN in red, when voiding a return.

# ♦Correspondence Imaging Inventory (CII) Returns♦

3.12.213.2.23 (01-01-2024) ♦Correspondence Imaging Inventory (CII) Returns♦ Correspondence Imaging Inventory (CII)is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images. Note: Correspondence Imaging System (CIS) changed to Correspondence Imaging Inventory (CII) "CII" returns are shown with "CII Image - Do not correspond for signature" stamped below the signature line or "CII" annotated on the front of the return. Follow the correspondence instructions below for processing "CII" returns: CII Return Correspondence Criteria If And Then The "CII" return has a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules or forms), Do not correspond. Remove the return from the batch and SSPND 640 to have the DLN voided. Attach Form 4227, Intra-SC Reject or Routing Slip, (or other approved routing slip) to the return and route to AM to secure missing information. If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information. Indicate "Additional information needed to process incomplete CII return" , or similar language on Form 4227, Intra-SC Reject or Routing Slip(or other approved routing slip). The "CII" return has a Form 13596, Reprocessing Returns attached and the return is incomplete (e.g., missing signature, schedules, or forms), There is an indication on the return that correspondence has been sent (e.g., CCC "3" is edited on the return), Do not route the return to AM. Continue processing the return. The "CII" return does not have a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules or forms), Research for prior posting (posted TC 150). If TC 150 is present and the information is the same, cancel the DLN and treat as classified waste. If TC 150 is not present, follow normal correspondence procedures.

# ♦Use of Fax for Taxpayer Submissions♦

3.12.213.2.24 (01-01-2023) ♦Use of Fax for Taxpayer Submissions♦ Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use. Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options. Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information: IRM 21.1.3.2.3, Required Taxpayer Authentication. IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer's answering machine, review: IRM 10.5.1.6.7.2, Answering Machine or Voicemail IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance

# Unprocessable Returns

3.12.213.3 (01-01-2023) Unprocessable Returns Unprocessable returns occur when perfection of a return is not possible or it is necessary to correspond, perform in-house research or refer the document to another area of the campus. The record will be suspended and the required action taken. Suspend the unprocessable record by entering Command Code SSPND followed by the correct Action Code. In cases where the Action Code cannot describe the required action, attach a note of explanation to the return (use Form 4227, Intra-SC Reject or Routing Slip. If an IDRS letter is necessary, attach a Correspondence Action Sheet (CAS) to issue the correspondence and SSPND with the correct Action Code.

# Correspondence Action Sheet (CAS)

3.12.213.3.1 (01-01-2023) Correspondence Action Sheet (CAS) If the tax examiner will not be issuing a letter through IDRS, they must attach a Correspondence Action Sheet (Form 3696, Correspondence Action Sheet) or other acceptable form to issue the correspondence.

# Correspondence Needed

3.12.213.3.2 (01-01-2023) Correspondence Needed Unprocessable conditions can be resolved with correspondence. If Then Perfection of a return is not possible and it is necessary to correspond for missing signature or attachments, Initiate correspondence by using Form 3696, Correspondence Action Sheet, to request missing information. See IRM 3.12.213.2.24, Use of Fax for Taxpayer Submissions. Note: Do not correspond for a signature on "Correspondence Imaging System (CII)" returns that have a Form 13596, Reprocessing Returns, attached. See IRM 3.12.213.2.23, Correspondence Imaging System, for processing instructions. It is necessary to suspend the unprocessable record, Enter the Command Code SSPND followed by the correct Action Code. The condition is a new suspense item, A charge-out Form 4251, Return Charge-out, will be computer- generated. The charge-out will be used for pulling documents as well as routing and controlling documents while the record is being held in suspense and for use in associating the document with the Workable Suspense Inventory when the record becomes workable. A record appears on the Workable Suspense Inventory, with the Action Code as first priority, The tax examiners will add the information received to the record or follow the IRM instructions for the "no reply" and clear the Action Code by entering the letter "C" in the Clear Field and transmitting. Once the Action Code is cleared, any Validity, Section or Math/Consistency errors will be displayed for correction. Records are unprocessable and again require suspension for additional information, A charge-out will not be generated for suspended items. The charge-out should be notated in the proper block by entering the Action Code and date.

# Correcting Unprocessable Conditions

3.12.213.3.3 (01-01-2023) Correcting Unprocessable Conditions Some unprocessable conditions can be corrected without correspondence. Use If/Then chart below. If Then Perfection may be possible but the record may require renumbering, Uncorrectable fields, such as the DLN, may need correcting and the record will require rejecting for re-entry. Reject the record by entering the Command Code RJECT followed by the Action Code "630" . A new DLN is to be assigned, Use Command Code NWDLN with the correct Action Code, the new DLN, and new Master File System ID Code, if required. Note: A charge-out will be generated for all Rejected Records. The charge-out will remain in the Files function for future reference. The DLN was transcribed incorrectly and is incorrect on the screen. The DLN appearing on the charge-out is erroneous, The correct DLN must be noted on the charge-out for use in pulling the document. Inform your supervisor of the block involved, and the physical location of the document. Perfection is not possible, The record may be rejected from Error Resolution and action initiated to have the DLN voided. Remittance is involved, Transfer the remittance. If you cannot determine where to transfer the remittance, transfer it to the "Unidentified Remittance File" . Error Resolution will automatically control most of the adjustments to Service Center Control File (SCCF). When manual adjustment is required, Form 4028, Service Center Control File Adjustment Record (SCCF Format Code 216), will be used for Error Resolution. Preparation of Form 4028, Service Center Control/File Adjustment Record (SCCF Format Code 216), is explained in IRM 3.12.38, BMF General Instructions.

# Form 1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

3.12.213.4 (01-01-2026) Form 1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, is used to report the income, deductions and gains and losses from the operation of a Real Estate Mortgage Investment Conduit (REMIC). Also, the form is used to report and pay taxes on net income from prohibited transactions, net income from foreclosure property, and contributions after the start up day. Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, are all filed at the Ogden Submission Processing Campus (OSPC). The taxpayer is now required to file Form 1065-X, Amended Return or Administrative Adjustment Request (AAR) to correct or amend Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, tax year 2012 through 2017 will only contain three pages. Page two, Schedule D, no longer exists. Tax years 2018 and later will contain four pages.

# Section 01 - Correction Procedures General Information

3.12.213.5 (01-01-2020) Section 01 - Correction Procedures General Information Section 01 contains the entity data and codes for returns. See Exhibit 3.12.213-1, Form 1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, for location of field designators on Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. The field designator, maximum length for each entry, title and location where the entry can be found are listed below. Field Designator Max Field Length Title Location 01NC 4 Name Control Page one, Name Line 01EIN 9 Employer Identification Number Page one, Box A, or label 01TXP 6 Tax Period Page one, Form 1066 (upper right corner) 01RCD 8 Received Date Page one, Form 1066 (face of return) 01CCC 10 Computer Condition Code Dotted portion of Section one, Line one 01DOB 6 Date REMIC Started Page one, Box B 01NOR 6 Number of Residual Holders Left margin of the "Deductions" section preceded by "3-" 01TEF 1 Tax Equity and Fiscal Responsibility Act (TEFRA) Left margin of the "Deductions" section preceded by "4-" 01MSC 4 Missing Schedule Code Left margin of the "Deductions" section preceded by "5-" 01CRD 8 Correspondence Received Date N/A (No longer edited by Code and Edit.) 01CAF 1 CAF Indicator N/A (No longer edited by Code and Edit.) 01ADC 3 Audit Code Left margin of the "Deductions" section preceded by "8-" 01ISI 1 Installment Sale Indicator Left margin of the "Deductions" section preceded by "9-" 01CBI 1 Paid Preparer Check box Indicator Page one, Form 1066, check box in bottom right corner 01PSN 9 Paid Preparer Social Security Number (SSN) or Practitioners Tax Identification Number (PTIN) Page one, Form 1066, below check box 01PEN 9 Paid Preparer EIN Page one, Form 1066, below check box 01PTN 10 Paid Preparer Phone Number Page one, Form 1066, below check box

# Name Control - 01NC

3.12.213.5.1 (01-01-2018) Name Control - 01NC The Name Control is found on Page 1, entity area, first name line, or on prior years the preprinted label. 01NC has four positions and the valid characters are alpha, numeric, hyphen (-), ampersand (&), and blank.

# Name Control Invalid Condition

3.12.213.5.1.1 (01-01-2018) Name Control Invalid Condition The Name Control field is invalid if any of the following situations occur: The first position is not alpha or numeric. The first position is blank or there are intervening blanks between characters. The second, third, and fourth positions are not alpha, numeric, ampersand, hyphen or blank.

# Correction Procedures

3.12.213.5.1.2 (01-01-2018) Correction Procedures Check the field with the return, Use If/Then Chart below for Correction Procedures. If Then The data was transcribed incorrectly, 1. To determine the correct name control, see Document 7071-A, Name Control Job Aid. 2. If name control is unavailable, research using IDRS Command Code ENMOD or INOLE to secure the name control. Name control is found, Enter the correct name control in Field 01NC and on the return. Unable to determine the name control, 1. Suspend the record with Action Code "320" . 2. Route to Entity Control.

# Employer Identification Number (EIN) - 01EIN

3.12.213.5.2 (06-19-2019) Employer Identification Number (EIN) - 01EIN The data for this entry is in Box A on the return or on the preprinted label. The entry must contain nine numeric digits and cannot begin with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 69, 70, 78, 79, 89, or 96. If Then The EIN has any of the numbers shown above in the first two positions, or is other than nine numeric characters, Compare 01EIN with the EIN on the return and correct any transcription errors. The EIN was transcribed correctly, 1. Search the return and attachments and IDRS for another EIN. If one is found, enter it on the return and on the screen. 2. If the EIN is changed from the one the taxpayer used, issue Letter 3875-C, Missing or Incorrect EIN or Return - BMF/EPMF, as a non-suspense letter to the address on the return. Continue processing the return. Note: Do not send Letter 3875-C, Missing or Incorrect EIN on Return - BMF/EPMF when: Three or less digits of the EIN are transposed, different, or missing, or The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or INOLES indicates the account has been "merged to" or "merged from" , or The EIN on the return is the taxpayer's SSN and research shows there is no valid entity on Master File for that EIN. There is no record of an EIN, Suspend the record with Action Code "320" and route to Entity Control for an EIN to be assigned. Entity Control has found the correct EIN, Enter it in Field 01EIN and on the return. Entity Control has assigned an EIN, Enter it in Field 01EIN. Enter the entity assignment date, found in the lower left-hand corner of the return in Field 01CRD if it is after the due date of the return.

# Tax Period - 01TXP

3.12.213.5.3 (01-06-2025) Tax Period - 01TXP The Tax Period is printed in Year (YYYY), Month (MM) format (e.g., December 31, 2025 will be displayed as 202512). The tax period is found above the first name line, to the right on the return. The Tax Period must be present and contain six numeric digits. The last two-digits must be 12, unless theForm 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, is a Final Return. Valid entries for Tax Period month on Final Returns are 01 through 12. The year (first four-digits) must not be greater than the current year. The Tax Period cannot be earlier than 198712.

# Correction Procedures

3.12.213.5.3.1 (01-01-2018) Correction Procedures The following information pertains to correction procedures for the tax period: If Then The correct Tax Period cannot be determined from the return, Process for the current year. Multiple Tax Periods are on the return, Correspond with the taxpayer and suspend the record with Action Code "21X" .

# Received Date - 01RCD

3.12.213.5.4 (01-01-2021) Received Date - 01RCD The Received Date appears on return in MMDDYY format but will be displayed in YYYYMMDD format. It must be eight numerics. The fifth and sixth digits (month) must be 01-12, and the seventh and eighth digits (day) must be 01-31. The Received Date must be equal to or greater than the tax period ending date and equal to or earlier than the current date.

# Correction Procedures

3.12.213.5.4.1 (01-01-2022) Correction Procedures The following information pertains to correction procedures for Received Date. If Then The Received Date was transcribed incorrectly, Enter the date from the return. The Received Date was edited incorrectly, Enter the date as determined in the following order of priority: Earliest legible U.S. or foreign postmark or a postmark established by an acceptable designated private delivery service. See IRM 3.10.72, Receiving, Extracting, and Sorting, for further details. Note: For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope). Use the "Acceptance" date on the record to determine timeliness follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required. Service Center Automated Mail Processing System (SCAMPS) digital date. Revenue Officer's signature date. Signature date, if within the current year (unless other information indicates signature date is invalid). Julian date of the Document Locator Number (DLN) minus 10 days. Current date minus 10 days.

# Computer Condition Code - 01CCC

3.12.213.5.5 (01-01-2026) Computer Condition Code - 01CCC The valid computer condition codes are B, D, F, G, L, O, R, W, X, 3, 4 and 7. Computer Condition Code Definition B The REMIC has made an election out of the installment sale method notated on the margin of Form 4797, Sales of Business Property, or Schedule D. Note: The 2011 Form 1066 was the last year Schedule D appeared on the form. D The taxpayer has established reasonable cause for failure to pay taxes timely. F Final Return. G Amended or superseding return - Computer Condition Code "G" is invalid if any other Computer Condition Code is present except "W" or "3" is present. L "Section 6114 Election or Treaty- Based Position Returns" - Taxpayer writes either "Section 6114" or "Section 6114 Election" on the return, or Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached to the return. O "Module Freeze" - Form 3753, Manual Refund Posting Voucher, is attached or a duplicate copy of Form 4466, Corporation Application for Quick Refund of Estimated Tax, is attached. R The REMIC has established reasonable cause for filing a delinquent return. W Record cleared by Statute Control Unit. X Refund Freeze code. 3 No reply received for correspondence sent to taxpayer. Editing "CCC 3" suppresses computation of credit interest. 4 Return was prepared under IRC 6020(b). 7 Reasonable cause for filing a delinquent return or late payment of taxes was examined and denied.

# Correction Procedures

3.12.213.5.5.1 (01-01-2018) Correction Procedures The following information pertains to 01CCC correction procedures. If Then 01CCC was transcribed incorrectly, Enter the correct Computer Condition Code from the dotted portion of Section 1, Line 1. 01CCC was transcribed correctly, Determine the correct code.

# Date REMIC - 01DOB Page 1, Box B

3.12.213.5.6 (01-01-2018) Date REMIC - 01DOB Page 1, Box B The date REMIC started appears as YYYYMM format. The first four digits are the year and the last two digits are the month. Field 01DOB must be all numeric or all blanks. If Then 01DOB was transcribed incorrectly, Enter the correct date from Page one, Box B. Either the year or month is not present in Box B, Do not enter in 01DOB. The taxpayer enters a future date as the date business started, Do not enter in 01DOB.

# Number of Residual Interest Holders - 01NOR

3.12.213.5.7 (01-01-2020) Number of Residual Interest Holders - 01NOR If other than one through 999,999, then the entry is invalid. This entry should reflect the Number of Residual Interest Holders shown on Page 3, Question F.

# Correction Procedures

3.12.213.5.7.1 (01-01-2026) Correction Procedures The following information pertains to the number of Residual Interest Holders: If And Then 01NOR is other than one through 999,999, Question F has an entry of one through 999,999, 1. Enter the number on Question F in Field 01NOR. 2. Correct the number edited in the left margin of the "Deductions" section preceded by "3-" . 01NOR is other than one through 999,999, Question F is blank and Schedules Q are attached, 1. Count the number of residual interest holders who received Schedules Q and enter the total in field 01NOR. 2. Edit the number of Schedules Q in the left margin of the "Deductions" section preceded by "3-" . 01NOR is other than one through 999,999, Question F is blank and no Schedules Q are attached, 1. Enter "1" in Field 01NOR if the "Trust" or "Corporation" boxes are checked on Question E and edit in the left margin of the "Deductions" section preceded by "3-" . 2. Enter "2" in Field 01NOR if the "Partnership" box is check on Question E and edit in the left margin of the "Deductions" section preceded by "3-" . Note: If Question E is also blank, enter "2" in Field 01NOR and edit in the left margin of the "Deductions" section preceded by "3-" . Taxpayer's figure exceeds 999,999, Enter "999999" (six nines) in Field 01NOR.

# TEFRA - 01TEF

3.12.213.5.8 (01-01-2018) TEFRA - 01TEF Valid entries are one or blank.

# Correction Procedures

3.12.213.5.8.1 (01-01-2018) Correction Procedures The following information provides correction procedures for Field 01TEF: If Then 01TEF was transcribed incorrectly, Enter the correct code in the left margin of the Deductions section preceded by "4-" . The incorrect code was edited, Determine the correct entry from the taxpayer's response to question G, Page 3, Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, as follows: 1. Question G Box checked - Code one. 2. All other instances, leave the entry blank.

# Missing Schedule Code - 01MSC

3.12.213.5.9 (01-01-2019) Missing Schedule Code - 01MSC The valid entry for the Missing Schedule Code field is 35 or blank. Code "35" is used if Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, Page one, Section I, Line four, Ordinary gain or loss, contains an entry, but Form 4797, Sales of Business Property vs. Supplemental Schedule of Gains and Losses, is not attached or is blank. This field contains four (4) positions. At this time code 35 is the only valid Missing Schedule Code. The first position cannot be blank if the second, third or fourth position contains a Missing Schedule Code.

# Correspondence Received Date - 01CRD

3.12.213.5.10 (01-01-2018) Correspondence Received Date - 01CRD A Correspondence Received Date (CRD) will be determined from the date the reply was received in the submission processing campus. If Then The reply was not date stamped, 1. Use the U. S. Postal Service postmark date on the envelope attached to the reply to determine the Correspondence Received Date, except in the following situations: The correspondence reply was received prior to the due date of the return. "The correspondence postmark date is dated after the due date for the correspondence" . Section 7502 does not apply the postmark date if such date is after the due date. (See 7502(a)(2)(A)). However leaving to consideration as there may be practical reasons for using postmark date to which counsel is not aware. The correspondence was required because of an IRS processing error, such as a request for a return or schedule that we lost during processing. The correspondence was not necessary or was issued in error. There is no reply to correspondence, Enter "3" in Field 01CCC and to the dotted portion of Section one, Line one. This suppresses credit interest. Note: If there is an indication that Entity Control has researched and found or has assigned an EIN to the return, edit the Entity Date found in the lower left hand corner of the return to the left margin of the Deductions section preceded by "6-" and in 01CRD, if it is later than the actual correspondence Received Date. If there are both a CRD and an Entity Assignment date, enter the later of the two.

# CAF Indicator - 01CAF

3.12.213.5.11 (01-01-2025) CAF Indicator - 01CAF Valid entries are 1 through 7 or blank.

# Correction Procedures

3.12.213.5.11.1 (01-01-2025) Correction Procedures If the field has an entry other than 1 through 7, delete the field.

# Audit Code - 01ADC

3.12.213.5.12 (01-01-2020) Audit Code - 01ADC The valid entries are blank, 1, 2, 3, 4, 5, and 6. Enter Audit Code "1" if any of the following are attached: Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR). Form 8275, Disclosure Statement. Form 8275-R, Regulation Disclosure Statement. Enter Audit Code "2" if any of the following conditions exist: Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, is attached. Form 547, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, is attached. Form 5713, International Boycott Report, is attached. The taxpayer answered "Yes" to the foreign trust question, "I" , on Page 3, Additional Information. Although Audit Codes 3, 4, 5 and 6 are also valid for this field, no uses for these codes have been found in Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, processing.

# Installment Sale Indicator - 01ISI

3.12.213.5.13 (01-01-2025) Installment Sale Indicator - 01ISI The valid codes are blank, 1, 2 and 3. The Installment Sale Indicator is coded from the partnership's response to Form 6252, Installment Sale Income, Question three, as follows: Code One Form, Form 6252, Installment Sale Income Multiple Form 6252, Installment Sale Income 1 "Yes" response to Question three. At least one form has a "Yes" response. 2 "No" response to Question three. All "No" responses, or a combination of "No" and blank responses. 3 "Yes" and "No" are checked or Question three is blank. Question three is blank on all forms.

# Correction Procedures

3.12.213.5.13.1 (01-01-2019) Correction Procedures Correction procedures for Field 01ISI, Installment Sale Indicator. If Then The correct code needs to be determined, 1. Examine the return and attachments. 2. Delete the incorrect entry and enter the correct code on the screen and in the left margin of the Deductions section preceded by "9-" . A code should not be present, Blank the entry on the screen. Multiple Form 6252, Installment Sale Income, are attached and at least one form has a positive response, Use code "1" . Multiple Form 6252, Installment Sale Income, are attached; at least one has a negative response and the others are blank, Use code "2" . Multiple Form 6252, Installment Sale Income, are attached but Question three is blank on all forms, Use code "3" .

# Paid Preparer Check box - 01CBI

3.12.213.5.14 (01-01-2019) Paid Preparer Check box - 01CBI The Paid Preparer Check box is found beside the taxpayer signature area. It indicates whether the taxpayer has elected, or not elected, to allow the paid preparer to represent him/her in order to reach settlement of the return Tax Period. Code and Edit is instructed not to code amended returns (e.g., returns showing "Amended" , "Superseding" , "Corrected" , etc.) with an indicator. If the taxpayer checks only the "Yes" box, Code and Edit should indicate a "1" in the right margin beside the Paid Preparer Check box. There are validity checks on the field. Invalid Condition: If the value is other than "1" or blank.

# Correction Procedures

3.12.213.5.14.1 (01-01-2018) Correction Procedures If invalid, delete the field 01CBI and continue processing.

# Preparer's Tax Identification Number (PTIN) - 01PSN

3.12.213.5.15 (01-01-2018) Preparer's Tax Identification Number (PTIN) - 01PSN The Preparer's Tax Identification Number (PTIN) (Preparer's SSN or PTIN box - 2009 and prior revisions) is found at the bottom of Page one, Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Valid characters are all blank, all numeric, or a "P" in the first position followed by eight numeric characters (a PTIN). If the field is all numeric, it must have nine positions and cannot be all zeroes or all nines. Note: The range for a valid PTIN is P00000001 through P99999998. A "P" followed by all zeroes or all nines is not valid.

# Correction Procedures

3.12.213.5.15.1 (01-01-2018) Correction Procedures Check for coding and transcription errors and correct accordingly.

# Firm's EIN - 01PEN

3.12.213.5.16 (01-01-2018) Firm's EIN - 01PEN The Firm's EIN (Paid Preparer's EIN - 2009 and prior revisions) is transcribed from the bottom of Page one, Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. This field can be all blank or all numeric. The field is invalid if it is all nines, all zeroes or less than nine positions.

# Correction Procedures

3.12.213.5.16.1 (01-11-2018) Correction Procedures Check for coding and transcription errors and correct accordingly.

# Paid Preparer Phone Number - 01PTN

3.12.213.5.17 (01-01-2018) Paid Preparer Phone Number - 01PTN If the taxpayer checks only the "Yes" box, then a telephone number for the paid preparer should also be entered to allow contact. However, this field is not required and may be left blank. There are validity checks on the field, but the field is not correctable. Valid characters are any combination of alpha (A to Z), numeric (zero to nine), or both, characters. Invalid Condition: If any of the characters are not alpha or numeric.

# Correction Procedures

3.12.213.5.17.1 (01-01-2018) Correction Procedures If invalid, delete the field 01PTN and continue processing.

# Section 02 Correction Procedures

3.12.213.6 (01-01-2018) Section 02 Correction Procedures The following information pertains to Section 02 correction procedures.

# Address Data

3.12.213.6.1 (01-01-2018) Address Data Section 02 contains the address changes for a return. The field designator, title, maximum field length, and the location where the entry can be found are listed below: Field Designator Title Maximum Field Length Location 02CON In-Care-Of Name 35 Entity area, Page one, Name line 02FAD Foreign Address 35 Entity area, Page one, Address line 02ADD Street Address 35 Entity area, Page one, Address line 02CTY City 22 Entity area, Page one, city, state, ZIP code line 02ST State 2 Entity area, Page one, city, state, ZIP code line 02ZIP ZIP Code 12 Entity area, Page one, city, state, ZIP code line

# Address Changes

3.12.213.6.2 (01-01-2018) Address Changes Section 02 should be present if: A return has an address change or the change of address box is checked on Page one. Section 02 cannot be present on a "G" coded return. 02ADD - Street Address (35-character entry). This entry may be blank or contain alpha and numeric characters, hyphen (-), or slash (/). If the first position is blank, all positions must be blank. There cannot be two consecutive blanks within significant data. 02FAD - Foreign Street Address. This entry may be blank or contain alpha and numeric characters, hyphen (-), or slash (/). If the first position is blank, all positions must be blank. There cannot be two consecutive blanks within significant data. 02CTY - City (22-character entry). The first position of this entry cannot be blank. The second and third position cannot both be blank (this allows for the Major City Code). There cannot be two consecutive blanks within significant data. This entry can contain alpha and numeric characters, hyphens (-), and blanks. Determine whether a Major City Code was used. 02ST - State (two-character entry). (See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for the valid state abbreviations. 02ZIP - ZIP code (12-character entry). This entry must be five (5), nine (9), or twelve (12) numeric. If a valid ZIP code is not available from the return, perfect the ZIP code using the chart in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP codes and Countries.

# Correction Procedures

3.12.213.6.3 (01-01-2018) Correction Procedures Check for transcription errors. If it is transcribed incorrectly, enter the actual city and state data. The Ogden Submission Processing Campus (OSPC) will process any return that has an international address. Suspend processing of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, with Action Code 650; attach to Form 4227, Intra-SC Reject or Routing Slip, for routing to Ogden Submission Processing Center. The Postal Service established new address requirements for Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses. If the old address appears (e.g., APO New York, NY 091XX) it must be converted to the new state code abbreviation based on the ZIP code (e.g., the previous example would be converted to APO AE 091XX). ZIP Code State Code 34000 AA 090–098 AE 962–966 AP

# Field 02CON - In-Care-of Name (XREF EC 002, 014, 016)

3.12.213.6.4 (01-01-2020) Field 02CON - In-Care-of Name (XREF EC 002, 014, 016) Description: Field 02CON is in the Entity section of the return. Valid Condition: Field 02CON has 35 positions and the valid characters are alpha, numeric, ampersand (&), dash (-), slash (/) or percent (%). Note: The first character of the "in-care-of" name must be alpha or numeric. Invalid Condition: Field 02CON is invalid if any of the following conditions are present: The first position is % (percent) and the second position is not blank, or The first position is blank, or The first character of the "in-care-of" name is not alpha or numeric, or There are two consecutive blanks between significant characters Correction Procedures: Check for coding and transcription errors. In Care of Name Correction Procedures If Then A % (percent) is in the first position, 1. Verify there is a blank in the second position. 2. If not blank, enter a blank followed by the "in-care-of" name beginning with an alpha or numeric in Field 02CON. A blank is in the first position, 1. Delete blank. 2. Enter the "in-care-of" name beginning with an alpha or numeric in Field 02CON. The first character of the "in-care-of" name is not alpha or numeric, 1. Verify "in-care-of" name on the return. 2. Enter the "in-care-of" name beginning with an alpha or numeric in Field 02CON. Two consecutive blanks are present between significant characters, Delete any unnecessary blanks in Field 02CON.

# ♦Field 02FAD - Foreign Address♦

3.12.213.6.5 (01-01-2018) ♦Field 02FAD - Foreign Address♦ Description - Field 02FAD is in the entity section of the return. The field will contain an entry when there is a foreign address present on the return Field 02FAD should not be present on "G" coded short length returns. Valid Characters: Valid characters are alpha, numeric, and special characters. Invalid Condition: Field 02FAD will generate as an error when any of the following conditions are present: The first position is blank Any character follows two consecutive blanks There are more than 35 characters present in the field Note: Integrated Submission and Remittance System (ISRP) is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return. . Correction Procedures: Correct all coding and transcription errors. Foreign Address Correction Procedures If Then Field 02FAD is present, GTSEC 02. Ensure Field 02CTY contains a foreign country code and Field 02ST contains a "." (period/space). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. Exception: Use the country code based on the province in Field 02CTY if the foreign address is from Canada and the address contains a province name or abbreviation. SeeExhibit 3.12.213-4, Province/Country Code - Canada Only. A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands but a province name is present, Enter the province abbreviation in the correct position in Field 02CTY. See Exhibit 3.12.213-4, Province/Country Code - Canada Only. A foreign address is not present on the return, SSPND 610. Renumber return with domestic DLN. If Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached to the return, compare the name and address information on the Form 8822 or Form 8822-B to the return. Note: A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business. Change of Address If And Then Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, All of the following applies: Mailing address information is the same, No location address is listed on Form 8822/Form 8822-B, Line 7, No entry on Form 8822-B, Lines 8 or 9, Take no action and continue processing. Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, Any of the following applies: Mailing address information is different, Location address is listed on Form 8822/Form 8822-B, Line 7, An entry is listed on Form 8822-B, Lines 8 or 9, Enter address shown on Form 8822/ Form 8822-B in Field 02FAD. Notate "Form 8822 or Form 8822-B detached" on tax return. Detach Form 8822/ Form 8822-B and route to Entity Control using Form 4227, Intra-SC Reject or Routing Slip, or follow local procedures. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or FORM 8822-B" . Note: The lead tax examiner is required to batch all Forms 8822 or Forms 8822-B daily and hand carry to Entity Control for expedite processing.

# Field 02ADD - Street Address (XREF EC 002, 014, 016)

3.12.213.6.6 (01-01-2020) Field 02ADD - Street Address (XREF EC 002, 014, 016) This field is transcribed from the Street Address line of the entity portion of the return. Invalid Condition: Street Address is present and the first position is blank, A character other than alpha, numeric, blank, dash or slash is present, Any character follows two consecutive blanks, or There are more than 35 characters in this field. Note: ISRP will input a pound (#) sign as the 35th character to indicate an overflow condition. Correction Procedures: Correct any coding and transcription errors. If the 35th character is a pound sign (#), refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. Abbreviate the address to 35 or fewer characters. If unable to correct, DLSEC 02.

# Field 02CTY - City (XREF EC 002, 014, 016)

3.12.213.6.7 (01-01-2018) Field 02CTY - City (XREF EC 002, 014, 016) This field is transcribed from the city, state, ZIP line of the entity portion, on page one of the return. Certain cities are designated "Major Cities" and have been assigned a designator that consists of two alpha characters. This code represents both the city and state. Whenever the city is on the Major City list, Integrated Submission and Remittance Process (ISRP), will enter the Major City Code instead of entering the entire name of the city and the state. When a Major City Code is used, it will be the first two positions of Field 02CTY. Invalid Condition: City is present and the first position is blank. Any character other than alpha or blank is present. Any character follows two consecutive blanks. A Major City Code is present and it is not a valid Major City Code. Invalid Foreign Country Code is present. Correction Procedures: Correct any coding and transcription errors. Note: For a listing of Major City Codes (listed by state) and valid Foreign Country Codes (FCC) see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. If Then A Major City Code is used, Field 02CTY must be present. Field 02CTY contains an error, Verify the Major City Code. Field 02CTY is not valid and a Major City Code cannot be determined, Input the entire city name. A Major City Code is not used and Field 02CTY is present, Field 02ST must be present. A foreign address is shown on the return, Enter the correct FCC in Field 02CTY Field 02CTY contains an incorrect country code or "XX" Enter correct FCC in Field 02CTY. If there is no valid FCC, input the entire country name. Unable to correct DLSEC 02

# Field 02ST - State (XREF EC 002, 014, 016)

3.12.213.6.8 (01-01-2018) Field 02ST - State (XREF EC 002, 014, 016) This field is transcribed from the city, state, ZIP code line of the entity portion of the return. Invalid Condition: 02ST is not a state code that is listed in the State Code Table in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. Correction Procedures: Correct any coding and/or transcription errors. If a valid state code is not available from the return or envelope, take any of the following steps: Research using INOLES or ENMOD to determine state, or refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP codes and Countries for correct code. Note: If a major city code is found, GTSEC 02 and enter in Field 02CTY and delete Field 02ST. If unable to correct, DLSEC 02.

# Field 02ZIP - ZIP Code (XREF EC 002, 014, 016)

3.12.213.6.9 (01-01-2018) Field 02ZIP - ZIP Code (XREF EC 002, 014, 016) This field is transcribed from the city, state, ZIP code line of the entity portion of the return. Invalid Condition: ZIP code is present and the first five positions are not numeric The last four positions are not all numeric or all blank, or Positions four and five are "00" Exception: ZIP code 20500 Correction Procedures: Correct any coding and transcription errors. If a valid ZIP code is not available from the return or envelope, research using any of the following to determine the ZIP code: CC INOLES and/or ENMOD or Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

# Money Amounts General Information

3.12.213.7 (01-01-2018) Money Amounts General Information Sections 03 through 08 contain money amounts. The entries are of variable length. Only sections 01, 02, 03, 07 and 20 are being transcribed by Integrated Submission and Remittance Processing (ISRP).

# Section 03

3.12.213.7.1 (01-01-2018) Section 03 Listed below are the entries displayed in Section 03 of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Field Designator Title Max Char $/c Field Type Location 03TAS Total Assets 13 $ (+ −) Page 1, Box C 03STG Net Short-Term Capital Gain/Loss 11 $ (+ −) Lower right margin preceded by "11-" 03LTG Net Long-Term Capital Gain/Loss 11 $ (+ −) Lower right margin preceded by "12-" Correct Field Designator 03TAS by entering "2-" if Total Assets is a negative greater than two.

# Section 04

3.12.213.7.2 (01-01-2025) Section 04 Listed below are the entries displayed in Section 04 of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Correct as required. Field Designator Title Max Char $/c Field Type Location 0401 Taxable Interest 15 $ (+/-) Page 1, Section 1, Line 1 0402 Accrued market discount under section 860C(b)(1)(B) 15 $ (+/-) Page 1, Section 1, Line 2 0403 (Reserved for future use) 15 $ N/A Page 1, Section 1, Line 3 0404 Ordinary gain/loss 15 $ (+/-) Page 1, Section 1, Line 4 0405 Other income 15 $ (+/-) Page 1, Section 1, Line 5 0406 Total income 15 $ (+/-) Page 1, Section 1, Line 6

# Section 05

3.12.213.7.3 (01-01-2025) Section 05 Listed below are the entries displayed in Section 05 of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Correct as required. Field Designator Title Max Char $/c Field Type Location 0507 Salaries and wages 15 $ (+) Page 1, Section I, Line 7 0508 Rent 15 $ (+) Page 1, Section I, Line 8 0509 Deductible interest 15 $ (+) Page 1, Section I, Line 9 0510 Other interest 15 $ (+) Page 1, Section I, Line 10 0511 Taxes 15 $ (+) Page 1, Section I, Line 11 0512 Depreciation 15 $ (+) Page 1, Section I, Line 12 0513 (Obsolete) 15 $ (+) N/A 0514 Other deductions 15 $ (+) Page 1, Section I, Line 13 0515 Total deductions 15 $ (+) Page 1, Section I, Line 14 0516 Taxable income/loss 15 $/c (+/-) Page 1, Section I, Line 15

# Section 06

3.12.213.7.4 (01-01-2025) Section 06 Listed below are the entries displayed in Section 06 of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Correct as required. Field Designator Title Max Char $/c Field Type Location 0601A Gain from certain dispositions of qualified mortgages 15 $ (+) Page 2, Schedule J, Part I, Line 1a 0601B Income from nonpermitted assets 15 $ (+) Page 2, Schedule J, Part I, Line 1b 0601C Compensation for services 15 $ (+) Page 2, Schedule J, Part I, Line 1c 0601D Gain from the disposition of cash flow investments 15 $ (+) Page 2, Schedule J, Part I, Line 1d 0602 Total income 15 $ (+) Page 2, Schedule J, Part I, Line 2 0603 Deductions 15 $ (+) Page 2, Schedule J, Part I, Line 3

# Section 07

3.12.213.7.5 (01-01-2026) Section 07 Listed below are the entries displayed in Section 07 of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Correct as required. Field Designator Title Max Char $/c Field Type Location 0704 Tax on Net Income from Prohibited Transactions 13 $/c (+) Page 2, Schedule J. Part 1, Line 4. 0705A Tax on Net Income (Total Tax) 13 $/c (+) Page 1, Section II, Line 1. 0706 Tax Paid, Form on Form 7004 Application for Automatic Extension of Time to File Certain Business Income Tax Information and other Returns. 13 $/c (+) Page 1, Section II, Line 2. 0707 F8913 Total Telephone Excise Tax Refund 15 $/c (+) Page 1, Section II, dotted portion to the left of Line 4 Caution: 2006 only. 07TRV Telephone Excise Tax Return (Verified Field) 15 $/c (+) >>>> Caution: 2006 only. 07B/R Balance Due/Overpayment 13 $/c (+/-) Page 1, Section II, Line 3 or 4a. Note: 07B/R is an Error Resolution input only field.

# Section 08

3.12.213.7.6 (01-01-2025) Section 08 Listed below are the entries displayed in Section 08 of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Correct as required. Field Designator Title Max Char $/c Field Type Location 081AA Cash flow investments, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 1A, Column A 081AB Cash flow investments, end of year 15 $ (+/-) Page 3, Schedule L, Line 1A, Column B 081BA Qualified reserve assets, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 1B, Column A 081BB Qualified reserve assets, end of year 15 $ (+/-) Page 3, Schedule L, Line 1B, Column B 081CA Foreclosure property, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 1C, Column A 081CB Foreclosure property, end of year 15 $ (+/-) Page 3, Schedule L, Line 1C, Column B 082A Qualified mortgages, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 2, Column A 082B Qualified mortgages, end of year 15 $ (+/-) Page 3, Schedule L, Line 2, Column B 083A Other assets, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 3, Column A 083B Other assets, end of year 15 $ (+/-) Page 3, Schedule L, Line 3, Column B 084A Total assets, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 4, Column A 084B Total assets, end of year 15 $ (+/-) Page 3, Schedule L, Line 4, Column B 085A Current liabilities, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 5, Column A 085B Current liabilities, end of year 15 $ (+/-) Page 3, Schedule L, Line 5, Column B 086A Other liabilities, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 6, Column A 086B Other liabilities, end of year 15 $ (+/-) Page 3, Schedule L, Line 6, Column B 087A Regular interests in REMIC, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 7, Column A 087B Regular interests in REMIC, end of year 15 $ (+/-) Page 3, Schedule L, Line 7, Column B 088A Residual interest holders' capital accounts, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 8, Column A 088B Residual interest holders' capital accounts, end of year 15 $ (+/-) Page 3, Schedule L, Line 8, Column B 089A Total liabilities and capital, beginning of year 15 $ (+/-) Page 3, Schedule L, Line 9, Column A 089B Total liabilities and capital, end of year 15 $ (+/-) Page 3, Schedule L, Line 9, Column B

# Section 20

3.12.213.7.7 (01-01-2025) Section 20 Listed below are the entries displayed in Section 20 of Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. Correct as required. Field Designator Title Max Char $/c Field Type Location 20TTR Form 8913 (TETR) Tax Refund Amount 15 $/c (+) F8913 or to the left of amount on Page 1, Section II, Line 4 Caution: 2006 only. 20TTI Form 8913 (TETR) Interest Refund Amount 15 $/c (+) F8913, Line 15, Column (e) Caution: 2006 only.

# Section 60 Data - Form 1066 - Direct Deposit

3.12.213.8 (01-01-2026) Section 60 Data - Form 1066 - Direct Deposit This subsection has instructions for correcting Section 60 Field Errors. Section 60 has data from direct deposit information. The taxpayer's information must be processed as reported.

# Section 60 Field Errors

3.12.213.8.1 (01-01-2026) Section 60 Field Errors Section 60 fields are listed below. Field Field Title Field Length Location 60RTN Routing Transit Number (RTN) 9 Line 4b 60TDA Type of Depositor Account (TDA) 1 Line 4c 60DAN Depositor Account Number (DAN) 17 Line 4d

# Field 60RTN - Routing Transit Number (RTN)

3.12.213.8.2 (01-01-2026) Field 60RTN - Routing Transit Number (RTN) Field 60RTN is transcribed from Line 4b. Field 60RTN is a nine-digit numeric field.

# Field 60RTN Invalid Conditions

3.12.213.8.2.1 (01-01-2026) Field 60RTN Invalid Conditions Field 60RTN is invalid if present, and the first two digits are not: Between 01 through 12. Between 21 through 32. Field 60RTN is other than numeric.

# Field 60RTN - Correction Procedures

3.12.213.8.2.2 (01-01-2026) Field 60RTN - Correction Procedures Correct coding and transcription errors and misplaced entries. If the information on the return is not valid, delete Field 60RTN.

# Field 60TDA - Type of Depositor Account (TDA)

3.12.213.8.3 (01-01-2026) Field 60TDA - Type of Depositor Account (TDA) Field 60TDA is transcribed from Line 4c. Field 60TDA may be blank or have one alpha code ("C" or "S" ).

# Field 60TDA Invalid Conditions

3.12.213.8.3.1 (01-01-2026) Field 60TDA Invalid Conditions Field 60TDA is invalid if the entry present is not "C" for Checking or "S" for Savings.

# Field 60TDA Correction Procedures

3.12.213.8.3.2 (01-01-2026) Field 60TDA Correction Procedures Correct coding and transcription errors and misplaced entries. If both or neither box (Checking or Savings) is marked, enter "C" in Field 60TDA.

# Field 60DAN - Depositor Account Number (DAN)

3.12.213.8.4 (01-01-2026) Field 60DAN - Depositor Account Number (DAN) Field 60DAN is transcribed from Line 4d. Field 60DAN may be up to 17 characters and can be alpha, numeric, hyphen or space.

# Field 60DAN Invalid Conditions

3.12.213.8.4.1 (01-01-2026) Field 60DAN Invalid Conditions Field 60DAN is invalid if a Depositor Account Number is present, and a character is not numeric, alpha, hyphen or space. Field 60DAN is present, but Field 60TDA is not present.

# Field 60DAN Correction Procedures

3.12.213.8.4.2 (01-01-2026) Field 60DAN Correction Procedures Correct coding and transcription errors and misplaced entries. Check Line 4d and do the following: If Then The account number is valid (the entry has only numeric, alpha, hyphen or space), GTSEC 60. See IRM 3.12.213.8.3, Field 60TDA - Type of Depositor Account (TDA), instructions. Enter a valid code in Field 60TDA. The account number is not valid, Delete Field 60DAN.

# Math/Consistency Priority IV General Information

3.12.213.9 (01-01-2020) Math/Consistency Priority IV General Information These errors will be displayed with the Error Code assigned to them for a specific error in ascending numerical order. The screen display will show the error code assigned and the fields needed to make the necessary correction. The blank field "CL" will be displayed for the entry of a "C" Clear Code on records where the possibility exists that a change or correction may not be needed. All errors must be resolved by either eliminating the error or entering "C" in the Clear Code field.

# ♦Error Code 001 - Tax Year - Invalid Entry♦

3.12.213.9.1 (02-24-2025) ♦Error Code 001 - Tax Year - Invalid Entry♦ Fields Displayed: Error Code 001 Screen Display Field Designator Field Name Length 01TXP Tax Period 6 01RCD Received Date 8 01CCC Computer Condition Code 10 Invalid Condition: Error Code 001 will generate when any of the following conditions are present: Computer Condition Code (CCC) "G" is not present - The processing date is equal to or more than two years and 10 months after the Return Due Date or Received Date (whichever is later) and CCC "W" is not present. Computer Condition Code "G" is present - The processing date is equal to or more than two years and 10 months after the Return Due Date and CCC "W" is not present. "G" Coded and Non- "G" Coded Returns - The processing date is less than two years after the Return Due Date and CCC "W" is present. Correction Procedures: Correct all misplaced entries, coding, and transcription errors. Do not send the returns listed in the following table to Statute Control for clearance. Instead, do the following. Statute Control If Then Return is prepared by Compliance (e.g., IRC 6020(b)), Return is secured by Examination/Collections, secured by TE/GE, secured by TE/GE Employee Plan (EP) Exam, Return has a Transaction Code (TC) 59X, Return has "ICS" (Integrated Collection System) notated on the face of the return, Return is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133, Expedite Processing Cycle, attached, Return has a stamp showing a previous clearance by Statute Control within the last 90 days, Return is a 2021 or prior year original. Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2021 or prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired. Enter "W" in Field 01CCC and on the return and continue processing. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Error Code 001 Correction Procedures If Then Field 01RCD is blank . Enter the Received Date in Field 01RCD. Use the earliest date if multiple Received Dates are present. See IRM 3.12.213.5.4, IRS Received Dates to determine the Received Date. CCC "W" was entered incorrectly, Delete CCC "W" from Field 01CCC. The return has a stamp that indicates a previous clearance by Statute Control within the last 90 days, Enter CCC "W" in Field 01CCC and on the return. Note: Do not send the return to Statute Control. The return is not stamped by Statute Control within the last 90 days, 1. Suspend (SSPND) with Action Code 310. 2. Prepare Form 4227, Intra-SC Reject or Routing Slip, to route to Statute Control. Note: Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures for BMF 2021 or prior year original delinquent returns to bypass AM statute clearance and be processed. In addition, any 2021 or prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired. Suspense Correction: When Statute Control returns the cleared document, enter "W" in Field 01CCC and on the return. Continue processing. Statute Control requests the record to be voided to them, SSPND 640.

# ♦Error Code 002 - Name Control Mismatch♦

3.12.213.9.2 (01-01-2022) ♦Error Code 002 - Name Control Mismatch♦ Fields Displayed: Error Code 002 Screen Display Field Designator Field Name Length CL Clear Code 1 01NC Name Control 4 >>>> Name Control Underprint 4 01EIN Employer Identification Number 9 01TXP Tax Period 6 02CON "In-Care-Of" Name 35 02FAD Foreign Address 35 02ADD Street Address 35 02CTY City 22 02ST State 2 02ZIP ZIP Code 12 Invalid Condition: Error Code 002 will generate when the Name Control mismatched against the National Account Profile (NAP) or Entity Index File (EIF). Correction Procedures: Before taking any additional research steps to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This ensures any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the remainder of the correction procedures. Note: When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the On-Line Entity (OLE) indicators correctly upon transmitting the ERS screen. Correct all misplaced entries, coding, and transcription errors. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Refer to all the following research instructions in this error code before taking any action. If Field 01NC and the name on the return or attachments are the same but differ from the underprint in Field 01NC, research IDRS using Command Codes (CC) INOLES to determine the correct name. If Then The name on the return or attachment matches the Name Control on INOLES, Bring up underprint. The Name Control on INOLES is different from the name on the return or attachment, Research IDRS using CC NAMEB/NAMEE for a new EIN. If a new EIN is found, verify the Name Control using IDRS CC INOLES. If Then The name control on INOLES matches the name on the return or attachment, 1. Ensure the entity information matches the return. 2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. Enter the new EIN on the return. When the EIN is changed from the one the taxpayer used, issue Letter 3875-C, Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return. Note: Do not send Letter 3875-C when: Three or less digits of the EIN are transposed, different, or missing, or The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or INOLES indicates the account has been "merged to" or "merged from" , or The TIN on the return is the taxpayer's SSN (check CC INOLEG). Multiple EINs are found, 1. SSPND 320 to Entity Control. 2. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "Multiple EINs" . INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on CC INOLES. The "MT" EIN matches the entity on the return or attachment, Enter the "MT" EIN in Field 01EIN and on the return. Note: Do not send Letter 3875-C on "MT" EIN cases. The "MT" EIN does not match the entity on the return or attachment, SSPND 320 to Entity Control. If the name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change on Form 1066 (Line D, Box 2), research CC ENMOD for a new name. If Then The Name Control on ENMOD matches the name on the return or attachment, Enter "C" in the Clear Code field. The name control on ENMOD or INOLES does not match the name on the return or attachment, 1. SSPND 320 to route the return to Entity Control. 2. Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "No Record" . If the name change has not been made, research IDRS using CC ENMOD for a pending TC 013. If Then A pending TC 013 is present, Enter "C" in the Clear Code field. A pending TC 013 is not present, 1. SSPND 320 to route to Entity Control. 2. Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "Request Name Change (TC 013)" . Suspense Correction: If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date: If Then The Entity Assignment Date is past the Return Due Date and IRS Received Date, 1. GTSEC 01 2. Enter the Entity Assignment Date in Field 01CRD. The Entity Assignment Date is not past the Return Due Date and IRS Received Date, Continue processing. Research IDRS using CC BMFOL to determine if payments posted incorrectly. If Then The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. 2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" . 3. Write "Form 3465 prepared" on the return, to the left of the Entity section. 4. Enter CCC "X" in Field 01CCC. The payment posted correctly, 1. Enter the correct EIN in Field 01EIN and on the return. 2. Enter "C" in the Clear Code field. Payment cannot be found, Enter "C" in the Clear Code field.

# ♦Error Code 003 - Check Digit Invalid♦

3.12.213.9.3 (01-01-2020) ♦Error Code 003 - Check Digit Invalid♦ Fields Displayed: Error Code 003 Screen Display Field Designator Field Name Length 01NC Name Control 4 01EIN Employer Identification Number 9 Invalid Condition: Error Code 003 will generate when any of the following conditions are present: A check digit is present but is not valid for the EIN. The letters "E" , "G" or "M" (in check digit only) are present in Field 01NC. Correction Procedures: Correct all misplaced entries, coding and transcription errors. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. If Then The check digit in Field 01NC does not match the return or is not legible, Enter the Name Control from the return in Field 01NC. The EIN on the return is not legible, Research IDRS using Command Code (CC) NAMEB/NAMEE for correct EIN. Compare the EIN from CC NAMEB/NAMEE to the EIN on the return. If Then The EIN on Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, matches the EIN on CC NAMEB/NAMEE, Enter Name Control from CC NAMEB/NAMEE in Field 01NC. Research indicates a different EIN, Verify the EIN and name on CC INOLES. Name Control on INOLES matches the name on the return or attachment, Overlay Field 01EIN with the EIN from INOLES. Enter the EIN from CC INOLES on the return. Issue Letter 3875-C, Missing or Incorrect EIN on Return BMF/EPMF as a non-suspense letter to the address on the return. Note: Do not send Letter 3875-C when: • Three or less digits of the EIN are transposed, different, or missing, or • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or • CC INOLES indicates the account has been "merged to" or "merged from", or • The TIN on the return is the taxpayer's SSN (check CC INOLEG). Unable to locate an EIN or more than one EIN is found, SSPND 320 to Entity Control. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "No Record of EIN" .

# ♦Error Code 004 - Name Control/EIN Validation♦

3.12.213.9.4 (01-01-2020) ♦Error Code 004 - Name Control/EIN Validation♦ Fields Displayed: Error Code 004 Screen Display Field Designator Field Name Length CL Clear Code 1 01NC Name Control 4 >>>> Name Control Underprint 4 01EIN Employer Identification Number 9 Invalid Condition: Error Code 004 will generate when any of the following conditions are present: The EIN is not present at Master File (MF). The Entity Index File (EIF) and the National Account Profile (NAP) were not accessed or were not operational causing a blank underprint in Field 01NC. Note: An underprint of "XXXX" indicates that there is no account on the Master File, while a blank underprint indicates that the NAP has not been accessed or was not operational. Correction Procedures: Before taking any additional research steps to resolve Error Code 004, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Name Control/EIN have posted to the NAP. If Error Code 004 reappears, continue with the remainder of the correction procedures. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the On-Line-Entity (OLE) indicators as correct upon transmitting the Error Resolution screen. Correct all misplaced entries, coding, and transcription errors. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Refer to all of the following research instructions in this error code before taking any action. If Field 01NC and the name on the return or attachments are the same but differ from the underprint in Field 01NC, research IDRS using Command Code (CC) INOLES to determine the correct Name Control: If Then The name on the return or attachment matches the name control on INOLES, Bring up underprint. The Name Control on INOLES is different from the name on the return or attachments, Research IDRS using CC NAMEB/NAMEE for a new EIN. If a new EIN is found, verify the Name Control using IDRS CC INOLES. If Then The Name Control on INOLES agrees with the name on the return or attachment, 1. Ensure that the entity information matches the return. 2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. Enter the new EIN on the return. When the EIN is changed from the one the taxpayer used, issue Letter 3875-C, Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return. Note: Do not send Letter 3875-C when: Three or less digits of the EIN are transposed, different, or missing, or The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or INOLES indicates the account has been "merged to" or "merged from" , or The TIN on the return is the taxpayer's SSN (check CC INOLEG). Multiple EINs are found, 1. SSPND 320 to Entity Control. 2. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "MULTIPLE EINs" . INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on CC INOLES. The "MT" EIN matches the entity on the return or attachment, Enter the "MT" EIN in Field 01EIN and on the return. The "MT" EIN does not match the entity on the return or attachment, SSPND 320 to Entity Control. If the name on the return or attachments does not agree with the Name Control on INOLES or there is an indication of a name change on Form 1066, (Line D, Box 2), research IDRS using CC ENMOD for a new name. If Then The Name Control on ENMOD agrees with the name on the return or attachment, Enter "C" in the Clear Code field. The Name Control on ENMOD or INOLES does not agree with the name on the return or attachment, 1. SSPND 320 to route the return to Entity Control. 2. Attach Form 4227- Intra-SC Reject or Routing Slip, with the notation "No Record" . If the name change has not been made, research IDRS using CC ENMOD for a pending TC 013. If Then A pending TC 013 is present, Enter "C" in the Clear Code field. A pending TC 013 is not present, 1. SSPND 320 to route to Entity Control. 2. Attach Form 4227- Intra-SC Reject or Routing Slip, with the notation "Request Name Change" . Suspense Correction: If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date. If Then The Entity Assignment Date is past the Return Due Date and Received Date, 1. GTSEC 01 2. Enter the Entity Assignment Date in Field 01CRD. The Entity Assignment Date is not past the Return Due Date and IRS Received Date, Continue processing. Research IDRS using CC BMFOL to determine if payments posted incorrectly. If Then The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. 2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" . 3. Write "Form 3465 PREPARED" on the return, to the left of the entity section. 4. Enter CCC "X" in Field 01CCC. The payment posted correctly, 1. Enter the correct EIN in Field 01EIN and on the return. 2. Enter "C" in the Clear Code field. Payment cannot be found, Enter "C" in the Clear Code field.

# ♦Error Code 005 - Invalid Tax Year or Received Date♦

3.12.213.9.5 (01-06-2025) ♦Error Code 005 - Invalid Tax Year or Received Date♦ Fields Displayed: Error Code 005 Screen Display Field Designator Field Name Length CL Clear Code 1 01TXP Tax Period 6 01RCD Received Date 8 Invalid Condition: Error Code 005 will generate when the year-month of the processing date is later than the Tax Period plus six months and the Received Date is not present. Correction Procedures: Compare the displayed fields with the return and correct all misplaced entries, coding and transcription errors. If displayed fields are correct and the return is timely filed, enter a "C" in the Clear Code field. A Received Date must be in Field 01RCD if the return is not timely filed. Use the earliest Received Date in Field 01RCD if there are multiple Received Dates on the return. Exception: Do not use a Received Date in Field 01RCD that is prior to the end of the Tax Period. Determine the Received Date following IRM 3.12.213.5.4, IRS Received Dates when one is needed but is not stamped on the return or a valid handwritten Received Date is not present. Earliest legible Postmark Date (e.g., U.S. Postal Service (USPS), Foreign or Private Delivery Service (PDS)). Note: Use the postmark date stamped on the face of the return, if envelope not attached. Service Center Automated Mail Processing System (SCAMPS) digital date. Revenue officer's or other IRS official's signature date. Signature date, if within the current year (unless other information indicates signature date is invalid). Julian date of the Document Locator Number (DLN) minus 10 days. Current date minus 10 days. If a return has been faxed to another area of the IRS and then sent to Submission Processing for processing, do not enter the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Enter a Received Date according to normal procedures. Caution: Do not use the EEFax Date as the IRS Received Date.

# Error Code 006 - Remittance with No Received Date

3.12.213.9.6 (01-01-2019) Error Code 006 - Remittance with No Received Date Fields Displayed: Field Designator Field Name RMIT (Non-correctable field) 01RCD Received Date Invalid Condition: Error Code 006 generates when a remittance is received with the return but a Received Date is not present. Correction Procedures: Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. If no Received Date is noted please refer to IRM 3.12.213.5.4, IRS Received Dates to determine the correct Received Date. Note: If multiple dates are on the return, use the earliest date as the Received Date. (Enter in YYYYMMDD format).

# ♦Error Code 007 - Received Date is Earlier Than Tax Year♦

3.12.213.9.7 (01-01-2026) ♦Error Code 007 - Received Date is Earlier Than Tax Year♦ Fields Displayed: Error Code 007 Screen Display Field Designator Field Name Length 01TXP Tax Period 6 01RCD Received Date 8 01CCC Computer Condition Code 10 Invalid Condition: Error Code 007 will generate when the Received Date is earlier than the first day of the Tax Period/Year by two months or more. Correction Procedures: Correct all misplaced entries, coding, and transcription errors. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. If And Then The Received Date is invalid and it appears that the incorrect year was used (i.e., 20250115 instead of 20260115), and other information (Julian date of the DLN, postmark date, and/or signature date) indicates that the Received Date should be the current year, Change the Received Date year to the current year in Field 01RCD. The return is an early filed "Final" return, 1. Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP. 2. Enter "F" in Field 01CCC. The return is not an early filed Final return, The Tax Period ending date is passed, Change the Received Date to one day after the Tax Period ending date. For example. the Tax Period is 202508, enter 20250801 in Field 01RCD. See IRM 3.12.213.2.22, Working Trail, for more information. The return is not an early filed "Final" return, The Tax Period ending is less than four months after the Received Date, SSPND 480. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "EARLY FILED" . The return is not an early filed "Final" return, The Tax Period ending is more than four months after the Received Date, 1. Initiate correspondence for clarification of the Tax Period. 2. SSPND 211. Suspense Correction: When the reply is received, correct the screen as follows: If Then The taxpayer replies that the return is a "Final" , 1. Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP. 2. Enter "F" in Field 01CCC. The taxpayer replies that the return is not a final return, SSPND 480 until the end of the Tax Period provided by the taxpayer. The taxpayer does not reply or the reply is not adequate, 1. Enter "3" in Field 01CCC. 2. SSPND 480 until the end of the Tax Period shown on the return.

# Error Code 010 - Amended Return "G" Coded

3.12.213.9.8 (01-01-2019) Error Code 010 - Amended Return "G" Coded Fields Displayed: Error Code 010 Screen Display Field Designator Field Name Length 01RCD Received Date 8 01CCC Computer Condition Code 10 01DOB Date REMIC Started 6 01NOR Number of Residual Holders 6 01TEF TEFRA 1 01MSC Missing Schedule Code 4 01CAF Centralized Authorization File 1 01ADC Audit Code 3 01ISI Installment Sales Indicator 1 Section 02 Present or Not Present Section 03 Present or Not Present Section 04 Present or Not Present Section 05 Present or Not Present Section 06 Present or Not Present Section 07 Present or Not Present Section 08 Present or Not Present Note: The literal SECTION XX PRESENT or "SECTION XX NOT PRESENT" generates for Sections 02 through 08 (XX = section number). Invalid Condition: Error Code 010 will generate when Computer Condition Code "G" is present and fields other than Fields 01CCC, 01NC, 01EIN, 01TXP, O1CRD, and 01RCD contain entries. Correction Procedures: Correct all misplaced entries, coding, and transcription errors. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. Determine if CCC "G" was input correctly: If Then Return indicates amended, revised, supplemental, corrected or superseding, Research the applicable Command Code(s) e.g., BRTVU, BMFOL, SUMRY, and/or TXMOD to determine if information is exactly the same as the posted return. All information is not the same, Process the return with CCC "G" . DLSEC to delete all sections except Section 01. Delete the invalid entries that are present in Section 01. GTSEC 01, if necessary. All information is exactly the same, SSPND 640 and route to Rejects. A return is not posted for the Tax Period and the return is an amended return, Continue processing as an amended return. A return is not posted for the Tax Period and the return is not amended ("G" coded in error), Enter all data in Sections 02, 03, and 07. Ensure that the Section 01 fields are correct. Delete the "G" code in Field 01CCC. Note: When deleting CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.

# ♦Error Code 014 - Missing Address Entries♦

3.12.213.9.9 (07-14-2022) ♦Error Code 014 - Missing Address Entries♦ Fields Displayed: Error Code 014 Screen Display Field Designator Field Name Length 02CON "In-Care-Of" Name 35 02FAD Foreign Address 35 02ADD Street Address 35 02CTY City 22 02ST State 2 02ZIP ZIP Code 12 Invalid Condition: Error Code 014 generates when any of the following conditions are present: A Major City Code is not used, the street address is present, and Field 02CTY or Field 02ST is not present. A Major City Code is used and Field 02ADD is not present. A Major City Code is used and Field 02ST is present. Correction Procedures: Correct all misplaced entries, coding, and transcription errors. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. Research any of the following for valid address information: Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, or Command Codes INOLE, NAMEB/NAMEE, ENMOD. If And Then A Major City Code is present, A street address is not available, 1. Enter the city Name (spelled out, not in Major City Code format) in Field 02CTY. 2. Enter the state Code in Field 02ST. The Major City Code is correct, The state is present, Delete Field 02ST. The ZIP code or address cannot be corrected from the information on the return, attachments, or from research, DLSEC Section 02.

# ♦Error Code 015 - Foreign Address/State♦

3.12.213.9.10 (01-01-2025) ♦Error Code 015 - Foreign Address/State♦ Fields Displayed: Error Code 015 Screen Display Field Designator Field Name Length 02FAD Foreign Address 35 02ADD Street Address 35 02CTY City 22 02ST State 2 02ZIP ZIP Code 12 Invalid Condition: Error Code 015 will generate when any of the following conditions are present: Field 02ST has an entry other than "." (period/space) when Field 02FAD is present. Field 02ZIP has an entry when Field 02FAD is present. Correction Procedures: Correct all misplaced entries, coding, and transcription errors. Compare displayed fields with the return. If incorrect, overlay the screen with the correct information. If Then A foreign address is present in Field 02FAD, 1. Field 02ST must contain "." (period/space). 2. Delete any entry in Field 02ZIP. A foreign address is not present in Field 02FAD, Check return for foreign address. A foreign address is present on the return, 1. Enter the foreign address in Field 02FAD Note: If additional space is required, continue entering the address in Field 02ADD. 2. Field 02CTY must contain the correct foreign country code. (See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.) Exception: Use the country code based on the province in Field 02FAD if the foreign address is from Canada and the address contains a province name or abbreviation. See Exhibit 3.12.213-4, Province/Country Code - Canada Only 3. Field 02ST must contain "." (period/space) 4. Delete any entry in Field 02ZIP. A foreign address is not present on the return, 1. Verify the address on the return is not a foreign address. 2. SSPND 610 3. Renumber return with domestic DLN.

# ♦Error Code 016 - Zip Code/State Mismatch♦

3.12.213.9.11 (01-01-2019) ♦Error Code 016 - Zip Code/State Mismatch♦ Fields Displayed: Field Designator Field Name Length 02CON "In-Care-Of" Name 35 02FAD Foreign Address 35 02ADD Street Address 35 02CTY City 22 02ST State 2 02ZIP ZIP Code 12 Invalid Condition: Error Code 016 will generate when the ZIP code is inconsistent with the Major City Code or State Code. Correction Procedures: Correct all misplaced entries, coding, and transcription errors. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. If Field 02ZIP is present, then 02ADD, 02CTY and 02ST must be present. Research Document 7475, State and Address Abbreviations Major City Codes (MCCs), ZIP Codes and Countries, or Command Codes INOLES, NAMEB/NAMEE, ENMOD for valid ZIP Code information. If And Then Unable to determine a valid ZIP code from the return or attachments, A valid ZIP code is found through IDRS research Enter the valid ZIP code found in Field 02ZIP. Only the first three-digits of the ZIP code can be determined, Enter "01" in the (fourth) and (fifth) position. A ZIP code cannot be determined, Enter the three-digits followed by "01" of the first ZIP Code listed for the applicable state in Document 7475, State and Address Abbreviations Major City Codes (MCCs), Zip Codes, and Countries (e.g., 99501 for Alaska). The address is in a major city, A Major City Code can be determined, Enter Major City Code in Field 02CTY. The address is in a major city, A Major City Code cannot be determined, 1. Enter the name of the city in Field 02CTY. 2. Enter the State Code in Field 02ST. The address is not in a major city, 1. Enter the correct state abbreviation in Field 02ST. 2. Enter the ZIP Code in Field 02ZIP. APO/DPO/FPO Addresses - An Army Post Office (APO), Diplomatic Post Office (DPO), or Fleet Post Office (FPO) is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new state code abbreviation based on the ZIP code. For example, if the old address appears as "APO New York, NY 091XX" , convert to read as "APO AE 091XX" . Refer to the APO/DPO/FPO conversion chart below: ZIP Code State Code 340 AA 090-098 AE 962-966 AP

# Error Code 026 - Tax Period Underprint

3.12.213.9.12 (01-01-2019) Error Code 026 - Tax Period Underprint Fields Displayed: Field Designator Field Name Length 01EIN Employer Identification Number 9 01TXP Tax Period 6 >>>> Tax Period Underprint 01CCC Computer Condition Code 10 01ADC Audit Code 3 Invalid Condition: The Tax Period Underprint is present, the Tax Period does not agree with the Entity Index File and Computer Condition Code "F" is not present. Reminder: A correction to any displayed entry must be entered and transmitted prior to entering a "C" in the Clear Code. The Clear Code does not permit any other correction to the record. Correction Procedures: Before taking any additional research steps to resolve Error Code 026, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Fiscal Year Month (FYM) have posted to the National Account Profile (NAP). If Error Code 026 reappears, continue with the remainder of the correction procedures. When corrections are made to Field 01TXP, the computer will validate the entries with the NAP and reset the indicators as correct upon transmitting the Error Resolution screen. Correct all misplaced entries, coding, and transcription errors. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. The following information pertains to correction procedures for Error Code 026: If Then A final return, Enter Computer Condition Code "F" . Not a final return and the EIN on the return differs from 01EIN, Change 01EIN to agree with the return. When the screen returns, enter a C in the Clear Code. Not a final return and the EINs agree, Research to verify EIN. Correct 01EIN if different EIN found. If EIN on the return is correct, compare the Tax Period on the return with 01TXP. The Tax Period on the return does not agree with 01TXP, Change 01TXP to agree with the return. (01TXP must be entered as YYYYMM). The EIN and Tax Period on the return agree with 01EIN and 01TXP and are transcribed correctly, Correspond with the taxpayer to determine why the FYM (Fiscal Year Month) is other than 12. Suspend the return with Action Code 211. Suspense Correction: The following information pertains to suspense corrections: If Then The taxpayer does not reply, Void the DLN and inform the taxpayer that he/she does not meet the requirements for filing a Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. The return was received with remittance, Prepare Form 3244, Payment Posting Voucher, to remove the remittance before voiding the DLN. Post the remittance to the taxpayer's account with a Trans Code "670" .

# Error Code 028 - Condition Codes versus Received Date

3.12.213.9.13 (01-01-2022) Error Code 028 - Condition Codes versus Received Date Fields Displayed: Field Designator Field Name Length 01RCD Received Date 8 01CCC Computer Condition Code 10 Invalid Condition: Error Code 028 will generate when either of the following conditions is present: Computer Condition Code "R" , "7" or "D" is present and the Received Date is not present. Error Code 028 is bypassed on a "G" coded return. Correction Procedures: The following information pertains to the correction procedures for Error Code 028. If Then The displayed fields do not match the information on the return, Overlay the screen with the correct information. "R" , "D" or "7" is present on the return, Enter the Received Date in 01RCD. "R" , "D" or "7" is not on the return, Delete the "R" , "D" , or "7" from 01CCC. The return is not a "G" coded return (e.g., no indication that the return is "Amended," "Revised," "Duplicate," "Corrected," "Superseding," ) or nothing indicates that this is other than the first return filed, 1. GTSEC 02 and enter the data in the correct fields for Section 02 and transmit. 2. When Error Code 010 generates enter the correct fields and delete the entry in Field 01CCC. The return is correctly "G" coded, Enter the Received Date in 01RCD. Determine the date in the order listed below: IRS date stamp. Earliest legible U.S. or foreign postmark or a postmark established by an acceptable designated private delivery service. See IRM 3.10.72, Receiving, Extracting, and Sorting, for further details. Service Center Automated Mail Processing System (SCAMPS) digital date. Revenue Officer's signature date. Taxpayer's signature date (only if within current year, unless other information indicates signature date is invalid). Julian date of the Document Locator Number (DLN) minus 10 days. Current date minus 10 days. Exception: If the Received Date is not present on blue/green rocker remittance return, use Julian date of the DLN as in six above. Note: If multiple dates are on the return, use the earliest date as the Received Date.

# Error Code 034 - Correspondence Received Date Inconsistency

3.12.213.9.14 (01-01-2022) Error Code 034 - Correspondence Received Date Inconsistency Fields Displayed: Field Designator Field Name Length 01TXP Tax Period 6 01RCD Received Date 8 01CRD Correspondence Received Date 8 (Entered by Rejects) Invalid Condition: Error Code 034 will generate when either of the following conditions are present: The Correspondence Received Date (Field 01CRD) is earlier or the same as either the Received Date (Field 01RCD), or the Return Due Date The Correspondence Received Date is later than the processing date Note: An entry in Field 01CRD does not require an entry in Field 01RCD. Correction Procedures: Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. Please see IRM 3.12.213.5.4, IRS Received Date. Exception: If Received Date is not present on blue/green rocker remittance returns, use Julian date of the Document Locator Number (DLN) minus 10 days. A Correspondence Received Date (CRD) will be determined from the date the reply was received in the Submission Processing Campus. Refer to the return for the Correspondence Received Date. It is edited in the Entity section of the return. This can be verified by checking the stamped Received Date on the correspondence attached to the return. If Then The Correspondence Received Date is present and earlier than the Return Due Date or later than the processing date, Delete the Correspondence Received Date from Field 01CRD. More than one Received Date is present and earlier than the Return Due Date or later than the processing date, Delete the Correspondence Received Date from Field 01CRD. More than one Received Date is present, Use the earliest date. "No Reply" , Enter "3" in Field 01CCC to bypass the consistency check.

# Error Code 042 - Short Period Return Not Final

3.12.213.9.15 (01-01-2021) Error Code 042 - Short Period Return Not Final Fields Displayed: Field Designator Field Name Length 01TXP Tax Period 6 01CCC Computer Condition Code 10 Invalid Condition: The Tax Period is 198801 or subsequent, the Tax Period month is other than "12" , and Computer Condition Code "F" is not present. Correction Procedures: Search the return and attachments for an indication that this is a final return. If Then The taxpayer indicates the return is a final return, Enter Computer Condition Code "F" in Field 01CCC. Other than a calendar year and determination cannot be made that the return is a final return, Correspond with the taxpayer to determine the correct Tax Period. Advise that Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, instructions state that the return must be for a calendar year unless it is a final. Suspend the return with Action Code 211. Suspense Corrections: If Then The taxpayer does not reply, Void the DLN and inform the taxpayer that he/she does not meet the requirements for filing a Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. The return was received with remittance, Prepare Form 3244, Payment Posting Voucher, to remove the remittance before voiding the DLN. Post the remittance to the taxpayer's account with a Transaction Code "670" .

# Error Code 073 - Correspondence Received Date Present with CCC "3"

3.12.213.9.16 (01-01-2019) Error Code 073 - Correspondence Received Date Present with CCC "3" Fields Displayed: Field Designator Field Name Length 01CCC Computer Condition Code 10 01CRD Correspondence Received Date 8 (Entered by Rejects) Invalid Condition: The error condition will generate if Field 01CCC is "3" and a date was entered in Field 01CRD. Correction Procedures: Review the return and attachments for IRS correspondence. If IRS correspondence is attached, determine if a reply was received from the taxpayer. If so, circle the CCC "3" edited on the return. Delete CCC "3" . If no reply is attached, circle the Correspondence Received Date entered on the return and delete the entry in the field 01CRD.

# Error Code 074 - TETR Inconsistent with Tax Year

3.12.213.9.17 (01-01-2025) Error Code 074 - TETR Inconsistent with Tax Year Fields Displayed: Field Designator Field Name Length CL Clear code 1 01TXP Tax period 6 0707 Total TETR Refund 15 07TC> TETR Refund Underprint 15 07TRV Total TETR Refund (ERS Verified Amount) 15 20TTR TETR Tax Refund 15 20TTI TETR Interest Refund 15 Invalid Condition: the tax year is other than 2006 and TETR amount is claimed. Correction Procedures: Correct all coding and transcription, including Tax Period.

# Error Code 800 - RRPS and No Received Date

3.12.213.9.18 (01-01-2019) Error Code 800 - RRPS and No Received Date Fields Displayed: Field Designator Field Name Length 01RCD Received Date 8 Invalid Condition: The return was processed through Returns Remittance Processing System and the Received Date is not present. Correction Procedures: Determine the Received Date using the following the directions in IRM 3.12.213.5.4 IRS Received Dates

# Error Code 802 - Total Income

3.12.213.9.19 (01-01-2025) Error Code 802 - Total Income Fields Displayed: Field Designator Field Name Length 0401 Taxable interest 15 0402 Accrued market discount 15 0403 (Reserved) 15 0404 Ordinary gain/loss 15 0405 Other income 15 0406 Total income 15 >>>>> Computer Underprint 15 Invalid Condition: Total income does not match the computer underprint within $50.00. Correction Procedures: Correct all coding and transcription. If the error persists, bring up the underprint to advance to the next error.

# Error Code 804 - Total Deductions

3.12.213.9.20 (01-01-2025) Error Code 804 - Total Deductions Fields Displayed: Field Designator Field Name Length 0507 Salaries and wages 15 0508 Rent 15 0509 Deductible interest 15 0510 Other interest 15 0511 Taxes 15 0512 Depreciation 15 0513 (Obsolete) 15 0514 Other deductions 15 0515 Total deductions 15 >>>>> Computer Underprint 15 Invalid Condition: Total deductions do not match the computer underprint within $50.00. Correction Procedures: Correct all coding and transcription. If the error persists, bring up the underprint to advance to the next error.

# Error Code 806 - Taxable Income

3.12.213.9.21 (01-01-2026) Error Code 806 - Taxable Income Fields Displayed: Field Designator Field Name Length S04NP Section 04 Not Present 0406 Total income 15 >>>>> Computer underprint 15 S05NP Section 05 Not Present 0515 Total deductions 15 >>>>> Computer underprint 15 0516 Taxable income 15 >>>>> Computer underprint 15 Invalid Condition: Taxable income does not match the computer underprint within $50.00. Correction Procedure: Correct all coding and transcription. If the error persists, bring up the underprint to advance to the next error.

# Error Code 808 - Income from Prohibited Transactions

3.12.213.9.22 (01-01-2025) Error Code 808 - Income from Prohibited Transactions Fields Displayed: Field Designator Field Name Length NC Notice Code 2 0601A Gain from certain dispositions of qualified mortgages 15 0601B Income from nonpermitted assets 15 0601C Compensation for services 15 0601D Gain from the disposition of cash flow investments 15 0602 Total income 15 >>>>> Computer underprint 15 Invalid Condition: Total income from prohibited transactions does not match the computer underprint within ≡ ≡ ≡ ≡ ≡. Correction Procedures: Correct all coding and transcription. Math verify Total Income from Prohibited Transactions using the instructions in the table at IRM 3.12.213.9.24(3).

# Error Code 810 - Net Income from Prohibited Transactions

3.12.213.9.23 (01-01-2026) Error Code 810 - Net Income from Prohibited Transactions Fields Displayed: Field Designator Field Name Length NC Notice Code 2 S06NP Section 06 Not Present 0602 Total income 15 >>>>> Computer underprint 15 0603 Deductions 15 S07NP Section 07 Not Present 0704 Net Income from Prohibited Transactions 15 >>>>> Computer underprint 15 Invalid Condition: Net income from prohibited transactions does not match the underprint within $50.00. Correction Procedures: Correct all coding and transcription. Math verify Total Income from Prohibited Transactions using the instructions in the table at IRM 3.12.213.9.24(3).

# Error Code 812 - Balance Due/Overpayment Math Verification

3.12.213.9.24 (01-06-2025) Error Code 812 - Balance Due/Overpayment Math Verification Fields Displayed: Field Designator Field Name NC Notice Code 0705A Total Tax 0706 Tax Paid with Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax Information and other Returns. 0707 Telephone Excise Tax Return Refund Amount (previously Line 2b; now dotted portion to the left of Line 4.) 07TC> Telephone Excise Tax Return (Computer Generated) 07TRV Telephone Excise Tax Return (Verified Field) 07B/R Balance Due/Overpayment ("Error Resolutions input only" Field) Invalid Condition: The difference between Balance Due/Overpayment Computer and Balance Due/Overpayment is $50.00 or more. Correction Procedures: Check for transcription or taxpayer errors. Compare Field 0705A (Total Tax) against the taxpayer's entry on the return, Line 1, Section II (Tax and Payments), Page one, Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return. The computer will compute Balance Due/Overpayment Computer field by subtracting Field 0706 (Tax Paid with Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax Information and other Returns) and Field 0707 (Telephone Excise Tax Credit) from Field 0705A (Total Tax). If the return is blank, verify the "Total Tax" amount against the amount on Line 12, Part IV (Total Tax) Schedule J. If Schedule J, Part IV, Line 12 is blank, but there are items on Schedule J under Part I (Tax on Net Income From Prohibited Transactions), Part II (Tax on Net Income From Foreclosure Property), and/or Part III (Tax on Contributions After the Startup Day), math verify each of the following items as described below: If Then Tax on Net Income From Prohibited Transactions (Schedule J, Part I, Line 4) is being verified, Line 2 (Total Income) must equal the sum of Lines 1a, 1b, 1c, and 1d. Line 4 must equal Line 2 minus Line 3. Tax on Net Income From Foreclosure Property (Schedule J, Part II, Line 10) is being verified, Math verify the following: Line 7 (Total Income from Foreclosure of Property) must equal the sum of Line 5 plus Line 6 Line 9 must equal Line 7 minus Line 8. Line 10 must equal 21 percent of Line 9. Total Tax (Schedule J Part IV, Line 12) is being verified, Add Lines 4, 10 and 11, Schedule J. Enter the sum on Schedule J, Part IV, Line 12, and on Page one, Section II, Line 1 (Form 1066). If correct as transcribed, attach an adding machine tape verifying Schedule J. Enter the total in Field 0705A. Correct Schedule J, Part IV, Line 12, and Page 1, Section II, Line 1 (Form 1066) on the return, if different. Compare Field 0706 (Tax Paid with Form 8736/8800) against the taxpayer's entry on the return (Line 2, Section II) (Tax and Payments), Page one, Form 1066. Correct the screen display if different. All corrections are made and there is a difference of $50.00 or more. Identify the correct TPNC literal for this point of error. See IRM 3.12.213.9.24.1, Taxpayer Notice Codes. Due to a programming issue, send Non-Suspense Letter 3833C, Tax Return Adjustment Explained (BMF). Use open paragraph "O" and the text for the TPNC literal to advise the taxpayer of the math error. CCC "4" is present, Enter the amount from the verified total (Balance Due/Overpayment Computer) in Field 07B/R (the "ERS Input Only" field). This will clear Error Code 812 from the screen display. No corrections are needed to Fields 0705A, 0706, and/or 0707, Caution: Do not attempt to correct Field 0707. Correspond to verify taxpayer entry. Identify the correct TPNC literal for this point of error. See IRM 3.12.213.9.24.1, Taxpayer Notice Codes. Due to a programming issue, send Non-Suspense Letter 3833C, Tax Return Adjustment Explained (BMF). Use open paragraph "O" and the text for the TPNC literal to advise the taxpayer of the math error. Note: Field 07TC> is the computer-generated total from Form 8913, Credit for Federal Telephone Excise Tax Refund. Field 07TRV is the Telephone Excise Tax Return Verified Field.

# Taxpayer Notice Codes

3.12.213.9.24.1 (01-06-2025) Taxpayer Notice Codes Taxpayer Notice Codes (TPNCs) literals are as follows: Taxpayer Notice Code (TPNC) Definition 01 We found an error in the computation of your total income from prohibited transactions. 05 We found an error in the computation of tax on net income from prohibited transactions. 10 We found an error in the computation of tax due or overpayment amount. 20 We found an error in the computation of tax on net income from foreclosure property. 25 We found an error in the computation of tax on contributions after the startup day. 88 We changed your telephone excise tax refund amount based on the information you provided. 89 We changed your tax and/or credits because we did not receive the additional information we requested. The change includes the disallowance of all or part of your telephone excise tax refund you requested on your tax return. We previously sent you a separate letter explaining the disallowance. 90 Blank Notice - 10 blank lines are available on the notice for whatever statement is needed. Caution: Due to a programming issue, send non-suspense Letter 3833C,Tax Return Adjustment Explained (BMF). Use open paragraph O and the text for the TPNC literal to advise the taxpayer of any math error(s).

# Error Code 999 - End of Year Conversion

3.12.213.9.25 (01-01-2019) Error Code 999 - End of Year Conversion Fields Displayed: Field Designator Field Name Length 01TXP Tax Period 6 Invalid Condition: Error Code 999 will be generated for all returns that are in error status at the end of the processing year. Correction Procedures: Since the system will re-validate the record and set validity checks based on next processing year's programming, the only correction procedure required for Error Code 999 is for the tax examiner to transmit.

# Form 1066 - U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

Exhibit 3.12.213-1 Form 1066 - U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return Example of Page one of Form 1066 showing Alpha Field Indicators.Name line shows 01NCBox A shows 01EINAddress line shows 02 CON, 02FAD and 02ADDBox B shows 01DOBCity, State and ZIP code boxes shows 02CTY, 02ST and 02ZIPBox C shows 03TASTo the right of Line 1 Taxable interest 01CCC is shownSection I, Line 1 shows 0401Section I, Line 2 shows 0402Section I, Line 3 shows 0403Section I, Line 4 shows 0404Section I, Line 5 shows 0405Section I, Line 6 shows 0406To the right of Line 7 Salaries and wages 01RCD is shownIn the left margin the following field indicators are shown: 3-01NOR, 4-01TEF, 5-01MSC, 8-01ADC and 9-01ISISection I, Line 7 shows 0507Section I, Line 8 shows 0508Section I, Line 9 shows 0509Section I, Line 10 shows 0510Section I, Line 11 shows 0511Section I, Line 12 shows 0512Section I, Line 13 shows 0514Section I, Line 14 shows 0515Section I, Line 15 shows 0516Section II, Line 1 Total Tax shows 0705ASection II, Line 2 shows 0706Section II, Line 3 Tax Due shows 07B/R+To the Right of Section II, Line 3 shows a box with 60TDA and C=Checking, S=Savings next to the box with down arrows to Line 4c checkboxesSection II, Line 4a Overpayment shows 07B/R-Section II, Line 4b Routing Transit Number shows 60RTNSection II, Line 4c Type of Depositor Account shows 60TDASection II, Line 4d Depositor Account Number shows 60DANIn the Preparer box that reads: May the IRS discuss this return with the preparer box 01CBI Y=1 is shownIn the preparer's SSN box 01PSN is shownIn the preparer's EIN box 01PEN is shownIn the preparer's phone number box 01PTN is shownIn the bottom right corner 11-03STG and 12-03LTG is shown Please click here for the text description of the image. Example of page 2 of Form 1066 showing Alpha Field Indicators.Schedule J, Part I, shows the following:Line 1a shows 0601ALine 1b shows 0601BLine 1c shows 0601CLine 1d shows 0601DLine 2 shows 0602Line 3 shows 0603Line 4 shows 0704 Please click here for the text description of the image. Example of page 3 of Form 1066 showing Alpha Field Indicators.Schedule L shows the following:Line 1a, column a shows 081AALine 1a, column b shows 081ABLine 1b, column a shows 081BALine 1b, column b shows 081BBLine 1c, column a shows 081CALine 1c, column b shows 081CBLine 2, column a shows 082ALine 2, column b shows 082BLine 3, column a shows 083ALine 3, column b shows 083BLine 4, column a shows 084ALine 4, column b shows 084BLine 5, column a shows 085ALine 5, column b shows 085BLine 6, column a shows 086ALine 6, column b shows 086BLine 7, column a shows 087ALine 7, column b shows 087BLine 8, column a shows 088ALine 8, column b shows 088BLine 9, column a shows 089ALine 9, column b shows 089B Please click here for the text description of the image. Example of page 4 of Form 1066.DRAFT is shown in the top left cornerA box showing INFORMATION ONLY is shown in the center of the page Please click here for the text description of the image.

# ♦Action Codes♦

Exhibit 3.12.213-2 ♦Action Codes♦ CE = Code & Edit; EC = Error Correction; S = Suspense Correction; GEN = Computer Generated Action Codes Action Code Description Workday Suspense Period Function Used In 001 Input Document 0 GEN Action Code Correspondence Workday Suspense Period Function Used In 210 EPMF Correspondence 60 ES, S 211 First Correspondence (Missing Information and/or Signature (Refund Returns)) 40 CE, EC, S 212 Second Correspondence 25 CE, EC, S 213 Correspondence to Other Than Taxpayer 40 CE, EC, S 215 First International Correspondence (Missing Information and/or Signature (Refund Returns)) 45 CE, EC, S 216 Second International Correspondence 45 CE, EC, S 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) 40 CE, EC, S 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) 40 CE, EC, S Action Code Description In House Research Workday Suspense Period Function Used In 300 Examination (Fuel Tax Credit) 10 CE, EC, S 310 Statute Control 10 CE, EC, S 320 Entity Control 10 CE, EC, S Action Code Description Criminal Investigation Division Workday Suspense Period Function Used In 331 Frivolous Review 3 CE, EC 332 QRDT (Questionable Refund Detection Team)Review 3 CE, EC 333 Prompt Audit 10 CE, EC, S 334 Joint Committee 10 CE, EC, S 335 Frivolous Case 10 CE, EC, S 336 QRDT Case 10 CE, EC, S 337 Other CID (Criminal Investigation Division) 10 CE, EC, S Action Code Description Accounting Workday Suspense Period Function Used In 341 Manual Refund 10 CE, EC, S 342 Credit Verification 10 CE, EC, S 343 Black Liquor 10 CE, EC, S 344 Manual Refund - Error Resolution 0 EC Action Code Description MFTRA Research Workday Suspense Period Function Used In 351 TIN Research 0 EC, S 352 Name Research 3 CE, EC, S 353 Address Research 3 CE, EC, S 354 Filing Requirements Research 3 CE, EC, S 355 Other MFTRA Research 5 CE, EC, S 360 Other In-House Research 10 CE, EC, S 370 Examination 10 CE, EC, S Action Code Description Management Suspense Workday Suspense Period Function Used In 410 Assistance Needed 0 EC 420 Management Suspense A 5 CE, EC, S 430 Management Suspense B 10 CE, EC, S 440 Management Suspense C 15 CE, EC, S 450 Management Suspense D 20 CE, EC, S 460 Management Suspense E 25 CE, EC, S 470 Complex Error Codes 0 EC 480 Early Filed Suspense 150 CE, EC, S 490 System Problem 5 CE, EC, S 510 Missing Document 0 CE 511 Missing Document - 1st Suspense 25 EC, S 512 Missing Document - 2nd Suspense 20 S 513 Missing Document - 3rd Suspense 20 S 515 Missing Document - Short Term 5 EC, S Action Code Description Rejects Workday Suspense Period Function Used In 550 Magnetic Tape Return - Check for Attachments 0 CE 551 Magnetic Tape - Inconsistent Data 0 CE 610 Renumber - Non-Remit 0 CE, EC 611 Renumber - Remit 0 CE, EC 620 NMF/Non-ADP 0 CE, EC, S 630 Reinput 0 EC, S 640 Void 0 CE, EC, S 650 International 0 CE, EC, S 660 Data Control Delete 0 S 670 Rejected Missing Document 0 S 700 Duplicate Block DLN 0 GEN 711 Duplicate Document DLN from Code & Edit 0 GEN 712 Duplicate Document DLN from Error Correction 0 GEN 713 Duplicate Document DLN from Unpostables 0 GEN 714 Duplicate Document DLN from Unworkable Suspense 0 GEN 715 Duplicate Document DLN from Workable Suspense 0 GEN 800 NAP Linkage Problem 2 EC, S 900 Unpostable Record 0 GEN

# ♦U.S. Possession Abbreviations and ZIP Codes♦

Exhibit 3.12.213-3 ♦U.S. Possession Abbreviations and ZIP Codes♦ American Samoa (AS) American Samoa (AS) City American Samoa (AS) ZIP Code Faga'itua 96799 Leone 96799 Olosega Manua' 96799 Pago Pago 96799 Federated States of Micronesia (FM) Federated States of Micronesia (FM) City Federated States of Micronesia (FM) ZIP Code Chuuk 96942 Kosrae 96944 Pohnpei 96941 Yap 96943 Guam (GU) Guam (GU) City Guam (GU) ZIP Code Agana 96910 Inarajan 96917 Merizo 96916 Tamuning 96931 Umatac 96915 Yona 96915 Marshall Islands (MH) Marshall Islands (MH) City Marshall Islands (MH) ZIP Code Ebeye 96970 Majuro 96960 Northern Marianna Islands (MP) Northern Marianna Islands (MP) City Northern Marianna Islands (MP) ZIP Code Capitol Hill 96950 Rota 96951 Saipan 96950 Tinian 96952 Palau (PW) Palau (PW) City Palau (PW) ZIP Code Koror 96940 Palau 96940 Puerto Rico (PR) Puerto Rico (PR) City Puerto Rico (PR) ZIP Code Adjuntas 00601 Aquada 00602 Aquadilla 00603 Agnes Buenas 00703 Aguirre 00704 Aibonito 00705 Anasco 00610 Angeles 00611 Arecibo 00612 Arroyo 00714 Bajadero 00616 Barceloneta 00617 Barraquitas 00794 Barrio Obrero Station 00935 Bayamon 00956 Boqueron 00622 Cabo Rojo 00623 Caguas 00725 Camuy 00627 Canovanas 00729 Caparra Heights 00920 Carolina 00982 Catano 00962 Cayey 00736 Ceiba 00735 Cero Gordo 00754 Ciales 00638 Cidra 00739 Coamo 00769 Comerio 00782 Condado 00907 Corozal 00783 Coto Laurel 00780 Culebra 00775 Dorado 00646 Ensenada 00647 Esperanza 00765 Fajardo 00738 Fernandez Juncos 00936 Florida 00650 Fort Buchanan 00934 Garrachales 00652 Guanica 00653 Guayama 00784 Guayanilla 00656 Guaynabo 00965 Gurabo 00778 Hatillo 00659 Hato Rey 00936 Harmingueros 00660 Humacao 00791 Isabela 00662 Juyaya 00664 Juana Diaz 00795 Juncos 00777 La Cumbre 00926 Lajas 00667 La Plata 00786 Lares 00669 Las Marias 00670 Las Piedras 00771 Levittown 00949 Loiza 00772 Loiza Street Station 00936 Loquillo 00773 Manati 00674 Maricao 00606 Maunabo 00707 Mayaquez 00680 Mercedita 00715 Minillas Center 00936 Moca 00676 Morovis 00687 Naguabo 00718 Naranjito 00719 Orocovis 00720 Palmer 00721 Patillas 00723 Penuelas 00624 Ponce 00731 Puerta de Tierra 00936 Puerta Real 00740 Punta Santiago 00741 Quebradillas 00678 Ramey 00603 Rincon 00677 Rio Blanco 00744 Rio Grande 00721 Rio Piedras 00927 Rosario 00636 Sabana Grande 00637 Sabana Hoyos 00688 Sabana Seca 00952 Saint Just 00978 Salinas 00751 San Antonio 00690 San Francisco 00927 San German 00683 San Juan 00936 San Lorenzo 00754 San Sebastian 00685 Santa Isabel 00757 Santurce 00936 Toa Alta 00953 Toa Boa 00949 Trujillo Alto 00976 University 00936 Utuado 00641 Vega Alta 00692 Vega Baja (Box 1 - 9049) 00694 Vieques 00765 Villalba 00766 Yabucoa 00767 Yauco 00698 Virgin Islands - U.S. (VI) Virgin Islands - U.S. (VI) City Virgin Islands - U.S. (VI) ZIP Code Charlotte Amalie 00802 Christiansted 00820 Cruz Bay 00830 Downtown 00840 Frederiksted 00840 Kingshill 00850 Saint Croix 00820 Saint John 00830 Saint Thomas 00805 Sunny Isle 00850 Veterans Annes 00820

# ♦Province/Country Code - Canada Only♦

Exhibit 3.12.213-4 ♦Province/Country Code - Canada Only♦ Canadian Province Province Abbreviation Postal Code Beginning Note: If the Canadian Postal Code begins with one of the following, use the corresponding Country Code abbreviation in the right most column. Country Code (Field 02CTY) Alberta AB T XA British Columbia BC V XB Manitoba MB R XM New Brunswick NB E XN Newfoundland and Labrador NL A XL Northwest Territories NT X XT Nova Scotia NS B XS Nunavut NU X XV Ontario ON K, L, M, N, or P XO Prince Edward Island PE C XP Quebec QC G, H, or I XQ Saskatchewan SK S XW Yukon YT Y XY

# Province, Foreign State and Territory Abbreviations

Exhibit 3.12.213-5 Province, Foreign State and Territory Abbreviations Australia State Australia State Abbreviation Australian Capital Territory ACT New South Wales NSW Northern Territory NT Queensland QLD South Australia SA Tasmania TAS Victoria VIC Western Australia WA Brazil State Brazil State Abbreviation Acre AC Alagoas AL Amapa AP Amazonas AM Bahia BA Ceara CE Distrito Federal DF Espirito Santo ES Goias GO Maranhao MA Mato Grasso MT Mato Grosso do Sul MS Minas Gerais MG Para PA Paraiba PB Parana PR Pernambuco PE Piaui PI Rio de Janeiro RJ Rio Grande do Norte RN Rio Grande do Sul RS Rondonia RO Roraima RR Santa Catarina SC Sao Paulo SP Sergipe SE Tocantins TO Canada Province/Territory Canada Province/Territory Province Abbreviation Postal Code Beginning Note: If the Canadian Postal Code begins with one of the following, use the corresponding Country Code abbreviation in the right most column. Abbreviation Alberta AB T AB British Columbia BC V BC Manitoba MB R MB New Brunswick NB E NB Newfoundland and Labrador NL A NL Northwest Territories NT X NT Nova Scotia NS B NS Nunavut NU X NU Ontario ON K, L, M, N, or P ON Prince Edward Island PE C PE Quebec QC G, H, or I QC Saskatchewan SK S SK Yukon YT Y YT Cuba Province Cuba Province Abbreviation Camaguey CG Ciego de Avila CA Cienfuegos CF Ciudad de La Habana CH Granma (Bayamo) GR Guantanamo GT Holguin HO La Habana HA Matanzas MT Municipio Especial Isla de La Juventud IJ Pinar del Rio PR Sancti Spiritus SS Santiago de Cuba SC (Victoria de) Las Tunas LT Villa Clara VC Italy Province Italy Province Abbreviation Agrigento AG Alessandria AL Ancona AN Aosta/Aoste AO Arezzo AR Ascoli Piceno AP Asti AT Bari BA Belluno BL Benevento BN Bergamo BG Biella BI Bologna BO Bolzano Bozen BZ Brescia BS Brindisi BR Cagliari CA Caltanissetta CL Campobasso CB Caserta CE Catania CT Catanzaro CZ Chieti CH Como CO Cosenza CS Cremona CZ Crotone KR Cuneo CV Enna EN Ferrara FE Firenze FI Foggia FG Forli FO Frosinone FR Genoa GE Gorizia GO Grosseto GR Imperia IM Isernia IS L'Aquila AQ La Spezia SP Latina LT Lecce LE Livorno LI Lodi LO Lucca LU Macerata MC Mantova MN Massa-Carrara MS Matera MT Messina ME Milan MI Modena MO Napoli NA Novara NO Nuoro NU Oristano OR Padova PD Palermo PA Parma PR Pavia PV Perugia PG Pesaro-Urbino PS Pescara PE Piacenza PC Pisa PI Pistoia PT Pordenone PN Potenza PZ Prato PO Ragusa RG Ravenna RA Reggio de Calabria RC Reggio nell'Emilia RE Rieti RI Rimini RN Roma RM Rovigo RO Salerno SA Sassari SS Savona SV Siena SI Siracusa SR Sondrio SO Taranto TA Teramo TE Terni TR Torino TO Trapani TP Trento TN Treviso TV Trieste TS Udine UD Varese VA Venezia VE Verbania VB Vercelli VC Verona VR Vibo Valentia VV Vincenza VI Viterbo VT Mexico State Mexico State Abbreviation Aguascalientes AGS Baja California Norte BCN Baja California Sur BCS Campeche CAM Chiapas CHIS Chihuahua CHIH Coahuila COAH Colima COL Distrito Federal DF Durango DGO Guanajuato GTO Guerrero GRO Hidalgo HGO Jalisco JAL Mexico MEX Michoacan MICH Morelos MOR Nayarit NAY Nuevo Leon NL Oaxaca OAX Puebla PUE Queretaro QRO Quintana Roo QROO San Luis Potosi SLP Sinaloa SIN Sonora SON Tabasco TAB Tamaulipas TAMPS Tlaxcala TLAX Veracruz VER Yucatan YUC Zacatecas ZAC The Netherlands Province The Netherlands Province Abbreviation Drenthe DR Flevoland FLD Friesland FR Gelderland GLD Groningen GN Limburg LB North Brabant NB North Holland NH Overijssel OV South Holland ZH Utrecht UT Zeeland SLD

# ♦Potential Frivolous Arguments for Examination Review♦

Exhibit 3.12.213-6 ♦Potential Frivolous Arguments for Examination Review♦ Potential Frivolous Arguments Description Alleged Churches/First Amendment Income from non-religious sources and may claim a vow of poverty. Altered Form Altering any or all line items with the intent of facilitating non-compliance with the tax laws. Altered Jurat/UCC 1-207 or UCC 1-308 Return contains income and deductions but the jurat has been altered or stricken. May include reference to UCC 1-207 / UCC 1-308 or a statement that the return was not signed under penalties of perjury. Amended Returns/Form 843 Claim Amended return or a Form 843, Claim for Refund and Request for Abatement, filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument. C-Filings This frivolous position includes the following four categories: a) Files a return claiming several types of deductions, credits or overpayments/refunds that have no relation to reality and because of their outrageous character, qualify as frivolous returns. b) Files a return containing the filers identifying information but does not request a refund, often lacking sufficient information to determine a tax liability. c) Files a return with several types of rambling dialogue and/or confusing arguments that no one could reasonably view as a good faith attempt to comply with the law. d) Files a return that attempts to send some type of message or protest to the IRS, but does not include sufficient identifying information for the Service to either determine the identity of the taxpayer or correspondent or return address. Challenges to Authority/Due Process Questions several administrative authorities such as delegation orders, summons authority, Privacy Act, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized. Challenges to Authority/Title 26 or "law" in Other Documents Argues that Title 26 of the United States Code is not law because it was never enacted as named Collections Issues Files frivolous documents contending that several collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests, etc.) because they are not filed and/or signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format or lack a valid OMB (Office of Management and Budget) number or other frivolous positions. Disclaimer Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero. Fifth Amendment Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information. Foreign Income Argues that United States citizens and residents are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by non-resident aliens and foreign S Corporations from sources within the United States is taxable. Form 1099-OID (Original Issue Discount) An individual or business files a return reporting false amounts of income (generally "Other" or "Miscellaneous" income) and all of them claim a false amount of income tax withholding approximately equal to the amount of falsely reported income. Although the returns report income, they do not calculate any tax due. Some of the returns have Form 1099 - OID (Original Issue Discount) attached and some have Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Other false financial instruments may be filed in the place of or in addition to the Form 1099-OID, Original Issue Discount such as Form 2439, promissory notes, bonds, sight drafts, etc. IRC 861 Business Employment Tax (BMF 861) Argument targets employers and advises them that wages are exempt from withholding. These taxpayers rely on Sections 861 through 865 of the Code and the regulations (in particular, Treasury Regulation §1.861-8), promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee's wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes. IRS is a Private Organization/Collects Tribute, Not Taxes Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" . Not a Person Argues that a taxpayer is not a "person" within the meaning of IRC 7701 (a) (14). Obscene, Vulgar, Harassing Submits documents or other materials showing that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner. Protest Against Government Action/Inaction Argues that refusal to file or pay is justified because they disagree with government policies or spending plans. Sixteenth Amendment Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment. Straw Men Argues the government has created an entity separate and distinct from the taxpayer - a "Straw Man" and any tax obligations are exclusively those of the "Straw Man" . Taxes are Voluntary/Law Does Not Require Submits a return, amended return or correspondence that argues income taxes are voluntary. U.S. vs. Long Submits a return with zero money amounts. To explain the zeros inserted on the form, the individual references "U.S. vs. Long" . Unsigned Returns The individual completes a return but does not sign. A statement showing disagreement with the tax system is attached or added to the return. Valuation 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 of the labor (barter income), etc. Zero Returns Submits a return with zero money amounts on all or most of the line items on the form (e.g., IRC 861, Form 2439, Notice to Shareholders of Undistributed Long-Term Capital Gains, OID and other BMF filings that claim no income and request refunds). See Rev. Rule. 2004-34. A statement is attached claiming there is no section of the Internal Revenue Code that established an income tax liability. The statement may also contain arguments regarding the definition of income. There are several variations on this type of filing such as those bearing the words "nunc pro tunc" and "not liable" Note: Returns having only zeros, no entries, are blank, or indicate "None," "Not Liable," etc., with no evidence of frivolous arguments are not to be considered as frivolous return. Other All others including those listed in Notice 2010-33 or any subsequent superseding Notice. See also http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments-Introduction on IRS.gov. This category includes non-filer accounts resulting from initial compliance check such as cross-reference TINs. Note: Frivolous arguments citing "Collection Due Process" (CDP) should be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights Procedures, for additional information.