IRM 3.12.217 — Error Resolution Instructions for Form 1120-S

# Part 3. Submission Processing

Chapter 12. Error Resolution Section 217. Error Resolution Instructions for Form 1120-S 3.12.217 Error Resolution Instructions for Form 1120-S Manual Transmittal October 24, 2025 Purpose (1) This transmits revised IRM 3.12.217, Error Resolution, Error Resolution Instructions for Form 1120-S. Material Changes (1) IRM 3.12.217.2.17.2, Action Code Chart - In (1) deleted the note for Telephone Excise Tax Refund (TETR) in the description for Action Code 420. Revised the description for Action Code 450, and 460. (IPU 25U0067 issued 01-17-2025) (2) IRM 3.12.217.2.28, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (3) IRM 3.12.217.2.28(1), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (4) IRM 3.12.217.2.28(2), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (5) IRM 3.12.217.2.28, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (6) IRM 3.12.217.2.28(3), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (7) IRM 3.12.217.2.28.1, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (8) IRM 3.12.217.2.28.1, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (9) IRM 3.12.217.2.28.1(1) b), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (10) IRM 3.12.217.2.28.1(1) c), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (11) IRM 3.12.217.2.28.1(2) b), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (12) IRM 3.12.217.2.28.1(2) b), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (13) IRM 3.12.217.8, Section 06 - Tax, Payments, and Other Information - In (2) made the following changes to the table: Added Field 06MCT, Manual Correction Total Tax. For Field 0624B changed the field title from "Form 7004" to "Tax Deposit Form." Changed Field 0626 to 06BDR. Changed Field 0628 to 0628A. Changed Field 06Q15 to 06B15. Changed Field 06Q16 to 06B16. Added Field 06K14, Portfolio Interest. Changed Field 0613F to 06AFC. Changed Field 06ITR to 06K14. Changed Field 0616D to 06TPD. Changed Field 0618 to 06K18. Changed Field 06LTS to 06L7D. Added Field 06TAE, Total Assets. Added Field 06TEE, Travel and Entertainment Sch. M-1 Expense. Changed Field 06AAA to 06BBT. Added 06RRE, Accumulated Adjustments Account Balance Beginning of Tax Year Amount. Added Field 06A01 Inventory at Beginning of Year. Added Field 06A07, Inventory at End of Year. (14) IRM 3.12.217.8.1, Field 0623C - Total Tax Taxpayer - Added new subsection procedures. (15) IRM 3.12.217.8.2, Field 06MCT - Manual Correction Total Tax - Added new subsection procedures. (16) IRM 3.12.217.8.3 - Field 0624A - Estimated Tax Payment - Added new subsection procedures. (17) IRM 3.12.217.8.4, Field 0624B - Tax Deposit Form 7004 - Added new subsection procedures. (18) IRM 3.12.217.8.5, Field 0624D (2023 & later) - Elective payment election (EPE) - Added new (3) b) procedures for Box 13, Schedule K-1 (Form 1120-S). (IPU 25U3554 issued 08-08-2025) (19) IRM 3.12.217.8.7, Field 0624Z - Total Credits - Made the following changes:" Changed (1) to read "Field 0624Z is transcribed from the following Form 1120-S lines:" . Added a table listing the lines and tax Year revision. Changed (4)b) to read "If the entry for Total Credits is blank or illegible then compute the total and enter in Field 0624Z as follows." Added a procedural table specific to form year revision. Added new (5) for 2022 Tax Year form and the taxpayer shows an "Elective Payment" or "Deemed Payment." (20) IRM 3.12.217.8.4, Field 0624B, Tax Deposit Form 7004 - New subsection procedures. (21) IRM 3.12.217.8.10, Field 06B16, Digital Asset Checkbox. Subsection title changed. (22) IRM 3.12.217.8.11, Field 06K14, International Checkbox - Subsection title changed. (23) IRM 3.12.217.8.12 - Field 06RRE, Total Gross Rents - Added new subsection procedures. (24) IRM 3.12.217.8.13 - Field 06TRT, Telephone Excise Tax Paid Reserved for Future Use - Deleted subsection procedures Telephone Excise Tax claims are no longer being processed. (25) IRM 3.12.217.9.3, Fields 101BG - Line 1b Col. (g), Sch. D (Form 1120-S) - Added new subsection procedures. (26) IRM 3.12.217.9.4, Fields 102D and 102E - Line 2, Col. (d) and Line 2, Col. (e), Sch. D (Form 1120-S) - Added new subsection procedures. (27) IRM 3.12.217.9.5, Field 102G - Line 2, Col. (g), Sch. D (Form 1120-S) - Added new subsection procedures. (28) IRM 3.12.217.9.6, Fields 103D and 103E - Line 3 Col. (d) and Line 3, Col. (e), Sch. D (Form 1120-S) - Added new subsection procedures. (29) IRM 3.12.217.9.7, Field 103G - Line 3, Col. (g), Sch. D (Form 1120-S) - Added new subsection procedures. (30) IRM 3.12.217.9.8, Field 1005 - Line 5, Sch. D (Form 1120-S) - Added new subsection procedures. (31) IRM 3.12.217.9.9, Fields 108AD, 108AE, 108BD, and 108BE - Line 8a Col. (d) & (e) and Line 8b Col. (d) & (e), Sch. D (Form 1120-S) - Added new subsection procedures. (32) IRM 3.12.217.9.10, Field 108G - Line 8, Col. (g), Sch. D (Form 1120-S) - Added new subsection procedures. (33) IRM 3.12.217.9.11, Fields 109D and 109E - Line 9, Col. (d) and Line 9, Col. (e), Sch. D (Form 1120-S) - Added new subsection procedures. (34) IRM 3.12.217.9.12, Field 109G - Line 9, Col. (g), Sch. D (Form 1120-S) - Added new subsection procedures. (35) IRM 3.12.217.9.13, Fields 1010D and 1010E - Line 10, Col. (d) and Line 10, Col. (e), Sch. D (Form 1120-S) - Added new subsection procedures. (36) IRM 3.12.217.9.14, Field 1010G - Line 10, Col. (g), Sch. D (Form 1120-S) - Added new subsection procedures. (37) IRM 3.12.217.9.15, Field 1013 - Line 13, Sch. D (Form 1120-S) - Added new subsection procedures. (38) IRM 3.12.217.9.24, Field 10Q5- Form 8996 Checkbox, Line 5 - Changed subsection title. (39) IRM 3.12.217.9.27, Field 10Q14 – Form 8996, Line 14 - Changed subsection title. (40) IRM 3.12.217.10, Section 12 - Form 4797, Sales of Business Property - Added new subsection procedures. (41) IRM 3.12.217.9.26, Field 10Q7, Field 10Q8, Field 10Q10 and Field 10Q11 – Form 8996, Lines 7, 8, 10, and 11 - (42) IRM 3.12.217.9.28, Field 10Q15 – Form 8996, Line 15 - Changed subsection title. (43) IRM 3.12.217.10.1, Section 12 - Error Record Format Section 12 - Added new subsection procedures. (44) IRM 3.12.217.10.2, Field 121A - Line 1a, Form 4797 - Added new subsection procedures. (45) IRM 3.12.217.10.3, Field 121B - Line 1b, Form 4797 - Added new subsection procedures. (46) IRM 3.12.217.10.4, Field 121C - Line 1C, Form 4797 - Added new subsection procedures. (47) IRM 3.12.217.10.5, Field 1207 - Line 7, Form 4797 - Added new subsection procedures. (48) IRM 3.12.217.10.6, Field 1208 - Line 8, Form 4797 - Added new subsection procedures. (49) IRM 3.12.217.10.7, Field 1209 - Line 9, Form 4797 - Added new subsection procedures. (50) IRM 3.12.217.10.8, Field 1217 - Line 17, Form 4797 - Added new subsection procedures. (51) IRM 3.12.217.10.9, Field 1218A - Line 18a, Form 4797 - Added new subsection procedures. (52) IRM 3.12.217.10.10, Field 1218B - Line 18b, Form 4797 - Added new subsection procedures. (53) IRM 3.12.217.16.1, Section 23 - Fields Displayed - Added new fields 231LB, 231LF, and 231LG to Section 23 Screen Table list. (54) IRM 3.12.217.18, Section 27 - Form 8283, Noncash Charitable Contribution - Added new subsection procedures. (55) IRM 3.12.217.18.1, Error Record Format Section 27 - Added new subsection procedures. (56) IRM 3.12.217.18.2, Field 27DPT - Line 2, Information on Donated Property Type (Form 8283) - Added new subsection procedures. (57) IRM 3.12.217.18.3, Field 273AC - Line 3A(c), Donated Property Appraised Fair Market Value (Form 8283) - Added new subsection procedures. (58) IRM 3.12.217.18.4, Field 273AD - Line 3A(d), Donated Property Date Acquired by Donor (Form 8283) - Added new subsection procedures. (59) IRM 3.12.217.18.5, Field 273AF - Line 3A(f), Donated Property Donor's Cost or Adjusted Basis (Form 8283) - Added new subsection procedures. (60) IRM 3.12.217.18.6, Field 27ASI - Appraiser Signature Indicator (Form 8283) - Added new subsection procedures. (61) IRM 3.12.217.18.7, Field 27AIN - Appraiser Identifying Number (Form 8283) - Added new subsection procedures. (62) IRM 3.12.217.18.8, Field 27QDD - Qualified Organization Property Received Date (Form 8283) - Added new subsection procedures. (63) IRM 3.12.217.18.9, Field 27COE - Charitable Organization Employer Identification Number (Form 8283) - Added new subsection procedures. (64) IRM 3.12.217.18.10, Field 27COS - Charitable Organization Authorized Signature Indictor (Form 8283) - Added new subsection procedures. (65) IRM 3.12.217.18.11, Field 27MFI - Multiple Form 8283 Attached Indicator (Form 8283) - Added new subsection procedures. (66) IRM 3.12.217.22, Section 60 - Direct Deposit Refund - Added new subsection procedures. (67) IRM 3.12.217.22.1, Error Record Format Section 60 - Added new subsection procedures. (68) IRM 3.12.217.22.2, Field 60RTN - Routing Transit Number (RTN) - Added new subsection procedures. (69) IRM 3.12.217.22.3, Field 60TDA - Type Depositor Account (TDA) - Added new subsection procedures. (70) IRM 3.12.217.22.4, Field 60DAN - Depositors Account Number (DAN) - Added new subsection procedures. (71) IRM 3.12.217.22.5, Field 12DDS - Direct Deposit Code - Added new subsection procedures. (72) IRM 3.12.217.23.1, Error Code 001 - Tax Year-Invalid Entry - Changed in (3)b) and (3)c) the Tax Period "2020" to "2021." (IPU 25U0395 issued 03-19-2025) (73) IRM 3.12.217.23.9, Error Code 010 - Amended Return "G" Coded - Revised the invalid condition to clarify why Error Code 010 generates. (74) IRM 3.12.217.23.20, Error Code 620 – Field 06AFC and Tax Period Check - Changed subsection title. (75) IRM 3.12.217.23.22, Error Code 624 – 0624A, 0625 or 0628A and Tax Period Check - Changed subsection title. (76) IRM 3.12.21723.32, Error Code 664 - Elective payment election (EPE) Disallowance - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (77) IRM 3.12.217.23.35, Error Code 674 - Balance Due/Overpayment Mismatch -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (78) Exhibit 3.12.217-7, Form 4797 - Sales of Business Property - Added new field designators. (79) Exhibit 3.12.217-9 , Form 8050 - Direct Deposit of Corporate Tax Refund - Delete exhibit. Form 8050 is no longer filed with Form 1120-S. (80) Exhibit 3.12.217-12, Form 5884-B - New Hire Retention Credit - Deleted exhibit. This form is no longer systemically processed, (81) Exhibit 3.12.217-13, Form 8283 - Noncash Charitable Contribution - Added new form with field designators. (82) Exhibit 3.12.217-19, Form 3800 - General Business Credit Conversion Chart - Added new column for 2025 line designations. (83) Exhibit 3.12.217-20, Error Code 026 - Correction Procedures - Updated the No Reply Procedures for short period returns. (IPU 25U0238 issued 02-20-2025) (84) Plain Language changes include: Used simpler words Removed unnecessary words Changed consistency sections per BMF Consistency template Editorial changes made throughout the IRM include: Corrected spelling and grammatical errors Corrected references, citations, and links Updated Exhibits Renumbered Exhibits to match Form 1120-S instructions, Assembling the Return Updated dates throughout including Tax Periods and Received Dates Updated form titles Updated field designators. Deleted old line numbers throughout IRM 3.12.217 revised throughout to update organizational title Wage and Investment (W&I) to Taxpayer Services (TS). Effect on Other Documents IRM 3.12.217, Error Resolution, Error Resolution Instructions for Form 1120-S, dated November 22, 2024 (effective January 1, 2025), is superseded. The following IRM Procedural Updates (IPUs),have been incorporated into this IRM: 25U0067 January 17, 2025, 25U0238 February 02, 2025, 25U0395 March 19, 2025, 25U3455 July 02, 2025, 25U3506 July 21, 2025, and 25U3554 August 08, 2025. Audience Taxpayer Services employees working Business Masterfile (BMF) Error Correction are the intended audience for this Internal Revenue Manual. Effective Date (01-01-2026) Scott Wallace Director, Submission Processing Taxpayer Services

# Program Scope and Objectives

3.12.217.1 (01-29-2024) Program Scope and Objectives This IRM section provides instructions for Taxpayer Services Error Resolution Tax Examiners to correct errors for Form 1120-S, U.S. Income Tax Return for an S Corporation. For tax years before 2018, the form number was Form 1120S. In May 2019, the form number was changed to Form 1120-S due to Tax Forms and Publications hyphen standardization. Purpose: The Error Resolution System (ERS) resolves errors made by taxpayers and during campus processing. Audience: Tax Examiners in the Input Correction Operation and Error Resolution Section, including: Tax Examining Technicians Lead Tax Examining Technicians Supervisory Tax Examining Assistants 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 are not limited to): Accounts Management (AM) Chief Counsel Compliance Information Technology (IT) Programmers Large Business and International (LB&I) Small Business Self-Employed (SBSE) Statistics of Income (SOI) Submission Processing (SP) Taxpayer Advocate Service (TAS) Tax Exempt and Government Entities (TEGE) Program Goals: Ensure necessary action is taken on the return and attachments for correct posting of data.

# Background

3.12.217.1.1 (01-01-2022) Background The purpose of Error Resolution is to resolve validity, field, consistency, and math errors in returns and other documents for posting to the Master File. Returns fall out in Error Resolution System (ERS) due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields. GMF programming causes a return to fall out to ERS if it does not meet certain criteria, including: Invalid character in a field (e.g., numeric instead of alpha) Invalid length of field (e.g., Employer Identification Number (EIN) with 8-digits instead of 9) Invalid code in field (valid Action Codes, Audit Codes, etc., are programmed at GMF) Consistency Error - Any valid field used in any computation where the result is inconsistent with (or contradictory to) any other valid field Math Error - The computer does a math computation, and it differs from the taxpayer's amount Invalid Tax Period and eligibility for certain credits Employees use ERS to correct these conditions and use IDRS to research.

# Authority

3.12.217.1.2 (01-01-2022) Authority Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations: IRC 6201(a) IRC 6213(b) Policy Statements for Submission Processing are found in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements.

# Roles and Responsibilities

3.12.217.1.3 (01-01-2025) Roles and Responsibilities The Campus Director monitors operational performance for their campus. The Operation Manager monitors operational performance for their operation. The Team Manager/Lead monitors performance and ensures employees have the tools to perform their duties. Team Employees are responsible for following the instructions found in this IRM and supporting updated IRM procedures.

# Program Management and Reviews

3.12.217.1.4 (01-01-2022) Program Management and Reviews Program Reports: System control reports are on the Control-D WebAccess (CTDWA) and a general listing of the reports are found in IRM 3.12.38, Error Resolution, BMF General Instructions. Program Effectiveness is measured using the following: Embedded Quality Submission Processing (EQSP) Balanced Measures Managerial reviews Annual Review: Federal Managers Financial Integrity Act (FMFIA)

# Program Controls

3.12.217.1.5 (01-01-2022) Program Controls Quality Review conducts a valid statistical sample size review of completed work to ensure IRM guidelines are followed.

# Terms and Acronyms

3.12.217.1.6 (01-01-2025) Terms and Acronyms For Terms, Definitions and Acronyms, see Exhibit 3.12.217-26.

# Related Resources

3.12.217.1.7 (01-01-2020) Related Resources The following table lists related sources: Resource Link/Title Instructor's Corner for Submission Processing Instructor's Corner for Submission Processing Servicewide Electronic Research Program (SERP) Servicewide Electronic Research Program (SERP) Integrated Data Retrieval System (IDRS) Integrated Automation Technologies (IAT) Integrated Automation Technologies (IAT) IRM 3.11.217, Returns and Documents Analysis, Form 1120-S Corporation Income Tax Returns Returns and Documents Analysis - Form 1120-S Corporation Income Tax Returns IRM 3.24.16, Corporation Income Tax Returns ISRP System - Corporation Income Tax Returns IRM 3.12.38, BMF General Instructions Error Resolution, BMF General Instructions

# General Information

3.12.217.2 (01-01-2022) General Information This IRM cannot address every possibility that occurs while correcting tax returns. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to the Subject Matter Expert (SME), Lead or Manager to decide the proper corrective action.

# ♦Business Master File (BMF) Consistency♦

3.12.217.2.1 (01-29-2024) ♦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 process for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

# ♦Internal Revenue Manual (IRM) Deviation Procedures♦

3.12.217.2.2 (04-11-2024) ♦Internal Revenue Manual (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.

# Local Desk Procedures

3.12.217.2.3 (01-01-2020) 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 Team 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.

# Refund Returns 45 Day Jeopardy and High Dollar Refunds

3.12.217.2.4 (01-01-2024) Refund Returns 45 Day Jeopardy and High Dollar Refunds Document Perfection and ERS are responsible for identifying refunds and for initiating requests for manual refunds. Expeditious processing of refund returns is critical if the 45-day period is about to expire. 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 Action Code "341" . Attach Form 4227, Intra-SC Reject or Routing Slip, and route to ERS/Rejects for manual refund. The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, SSPND with Action Code "341" . Route to ERS/Rejects for manual refund. Taxpayer Advocate Service (TAS) Manual Refunds - any return hand walked by a TS Submission Processing (SP) liaison for Taxpayer Advocate Service must be processed by a Lead Tax Examiner or designated tax examiner using the following procedures in the order listed: Computer Condition Code (CCC) "O" must be edited on the return and entered in Field 01CCC. Delete CCC "Y" from Field 01CCC. Continue processing the return according to Error Code procedures. Correspondence: If required for missing or incomplete information, follow procedures below: Complete the correct correspondence action sheet and request all missing or incomplete information. Inform the TS SP liaison of all information that is being requested. Suspend (SSPND) with the correct suspense code and give return back to the TS SP liaison. Note: The TS SP liaison will contact the Taxpayer Advocate to obtain the required information to complete processing. More suspense action needed: If the return requires other suspense action, then follow the procedures below: Initiate suspense (SSPND) with Action Code according to IRM procedures. Inform the TS SP liaison of the reason for the action taken. Give the return back to the liaison. Note: The TS liaison will contact the Taxpayer Advocate, who in turn will take the necessary action to complete the processing of the return. Assigning Taxpayer Notice Codes (TPNCs/Math Error): When a math error is identified, do the following: Assign the TPNC according to IRM procedures. After all TPNCs have been assigned, inform the TS SP liaison of TPNCs issued. Suspend (SSPND) with correct Action Code (suspense must be done at the generated point of error and given the return to the liaison). Note: The TS SP liaison will contact 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 (EC) generates do the following: Make screen print of the Error Code 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 in to Field 07B/R. If Balance Due/Overpayment Math Error Code regenerates because the taxpayer made a math error when computing their refund, then 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 keeping the entity area visible and assign the correct TPNC. Once the return completes processing, give the return, Form 12412, Operations Assistance Request (OAR), and the ERS screen print to the TS SP liaison. Rejects Suspense Procedures: Follow the specific instruction given by the TS SP liaison. Correspond and assign correct TPNCs as directed. Refer to paragraphs (6) and (7) above.

# ♦Taxpayer Advocate Service (TAS)♦

3.12.217.2.5 (01-01-2025) ♦Taxpayer Advocate Service (TAS)♦ 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 taxpayers issue the same day. 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, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance order), 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 (SLA)♦

3.12.217.2.5.1 (01-01-2025) ♦TAS - Service Level Agreements (SLA)♦ The National Taxpayer Advocate reached agreements with the Commissioners or Chiefs of the (TS) Division, Small Business/Self Employed (SB/SE) Division, Tax Exempt Government Entities (TEGE), Criminal Investigation (CI), Independent Office of 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 Taxpayer Advocate Service.

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

3.12.217.2.6 (01-01-2024) Business Master File (BMF) Identity (ID) Theft BMF ID Theft is increasing. If a case is found with attachments 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 SP BMF ID Theft Liaisons. The taxpayer must show that they are a victim of "ID Theft;" do not refer cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review. Effective January 1, 2017, Computer Condition Code "E" may be edited on Form 1120-S (any year) by the BMF ID Theft Liaison to identify a potential identify theft filing.

# ♦Criminal investigation (CI) Referral ♦

3.12.217.2.7 (01-01-2022) ♦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 of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, 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 and Kansas City ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, 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 that are 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 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 as shown in the table below. Ogden Kansas City Mail Stop 9001, Criminal Investigation (CI) Mail Stop S2 9000, 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. If the return fits other criteria (e.g., Frivolous Argument), take proper action.

# ♦Examination (Exam) "Funny Box" ♦

3.12.217.2.8 (01-01-2022) ♦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.

# ♦Frivolous Arguments♦

3.12.217.2.9 (01-01-2023) ♦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 3.12.217-23, 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. If Then The return meets any of the conditions shown as a frivolous return (see Exhibit 3.12.217-23, Potential Frivolous Arguments for Examination Review), Exception: If the return shows Action Code "331" and has a Form 4227, Intra-SC Reject Routing Slip, attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to the next procedure. Remove 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" , Continue processing the return. 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.

# ♦IRS Employee Contacts♦

3.12.217.2.10 (01-01-2024) ♦IRS Employee Contacts♦ The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998, (RRA98), Section 3705(a) gives identification requirements for all IRS employees working tax-related matters. All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax related matters must give (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), give as correct 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, try to resolve the taxpayer's inquiry. If unable to resolve, 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. They should provide 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.

# ♦Customer Account Data Engine (CADE) 2♦

3.12.217.2.11 (01-01-2024) ♦Customer Account Data Engine (CADE) 2♦ The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal of implementing a single, modernized programming solution that gives 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: Transactions are viewable using Corporate Files Online (CFOL) command codes on Saturday following the weekly Master Files processing run on Thursday. Transactions are 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 shown in the CFOL command code displays. Transaction posting dates show a format of YYYYCCDD. YYYY is the year. CC is the posting cycle. Individual Master File (IMF) transactions values for DD are: 01 = Friday 02 = Monday 03 = Tuesday 04 = Wednesday 05 = Thursday Note: BMF cycle posting dates on BMFOL will continue to show YYYYCC. YYYY is the year. CC is the posting cycle. BMF posting cycles in TXMOD will show a format of YYYYCCDD. The DD value is 08.

# Related Forms

3.12.217.2.12 (01-01-2020) Related Forms When the following forms are referred to in this section, the chart below shows their form number, form title and use. If this Form is used Then Form 3465, Adjustment Request, Request transfer of credits. Form 4227, Intra-SC Reject or Routing Slip, Identify the reason for using the Action Code. Form 8161, ERS Return Charge-Out, Generated by the computer to charge out returns on the new Suspense Records List and Duplicate Document Rejected Document Locator Number (DLN) Register. Used as a routing slip and history item.

# System Errors

3.12.217.2.13 (01-01-2023) System Errors The Error Resolution System will identify errors according to type and priority. If this error is present Then it is a Action Code Error, Priority I. Section Error, Priority II (Integrated Submission and Remittance Processing (ISRP) problem code). Validity Error, Priority III. Math/Consistency Error, Priority IV (Error Codes). Note: The record heading will show the type of error.

# Field Errors

3.12.217.2.14 (01-01-2020) Field Errors Any field that does not meet the requirement(s) for that field is displayed as a Field Error in the order encountered in the return. Non-alphabetical character in an alpha field. Blank space in a numeric field. Blank in the first position of an alpha field.

# Terminus Error

3.12.217.2.15 (01-25-2022) Terminus Error This error is caused by a section with variable length input fields having an erroneous size field. This type of error will show all input fields of the terminus section. Transcribed data is present. Computer generated fields or Remittance Field for Section 01 will not be present. If Then Displayed in error, Check all fields in the section for necessary corrections. No correction is needed, Transmit from the bottom of the screen display. Section needs to be deleted, Use Command Code (CC) DLSEC to delete the section number. Return was suspended prior to the beginning of a new year and the return has been reactivated, Access the return using Command Code GTREC, check all fields for necessary correction, then drop the cursor to the bottom and transmit.

# Status Codes

3.12.217.2.16 (01-01-2022) Status Codes Status Codes control records in the Error Resolution System (ERS). The status is updated when the return is placed in a specific inventory. Below is a list of the status codes and a brief explanation: Status 100: error awaiting correction. Records are in the Error Inventory. Status 2XX: return awaiting information. Records are in the Unworkable Suspense Inventory. Status 3XX: suspense period expired no response. Records are in the Workable Suspense Inventory. Status 4XX: return with information, awaiting correction. Records are in the Workable Suspense Inventory. Status 900: return 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, Action Code "321" = suspense period expired or no response to taxpayer correspondence. If a return was selected for Quality Review, the second and third positions are "QA." For example, "1QA" , "3QA" , or "4QA" reflect Quality Review Status Codes. When the Suspense Period expires before the return is activated, the status automatically moves from Status 2XX to Status 3XX.

# Action Codes

3.12.217.2.17 (01-01-2024) Action Codes Action Codes (AC) are input when information is missing, or the return must be suspended from processing. The AC will have sufficient detail to show if correspondence is needed or if specific in-house research or action is required. Document Perfection Tax Examiners will assign a three-digit AC when they determine that the return is unprocessable in its present form. This AC is edited on the bottom left-hand corner of the return. For more information and applicable Action Codes, see IRM 3.12.38.3.4, Error Resolution System (ERS) Action Codes, and the exhibit in IRM 3.12.38-1, Action Codes.

# Action Code Suspense

3.12.217.2.17.1 (01-01-2022) Action Code Suspense The presence of a valid Action Code (AC) other than "001" will place the return in the Suspense Inventory, either Workable or Unworkable. If the AC assigned by Document Perfection is invalid, incomplete or "001" the return is assigned to the Error Inventory for correction or deletion of the code. Only one AC may be assigned at a time to a return. For routing within the Submission Processing Campus (In-House Research), the AC with a sufficient explanation concerning the missing information will need to be entered on the return. The ERS Tax Examiner may enter an AC on a return, delete or correct an invalid code or overlay the present AC with another to either re-suspend or reject from ERS. This is done by entering a valid AC with a Command Code (CC) SSPND, NWDLN, or RJECT. See IRM 3.12.38, BMF General Instructions, for an explanation of these codes. An ERS Tax Examiner entering a valid AC with CC SSPND is clearing the return from the screen and placing the return in either Workable or Unworkable Suspense. A Reject Tax Examiner entering a valid AC with CC RJECT will reject the return from ERS. Generally, Service Center Control File (SCCF) will automatically update the rejected returns. In cases where the AC cannot describe the required action, attach an explanation to the return using Form 4227, Intra-SC Reject or Routing Slip. Note: The Action Code assigned by Document Perfection is transcribed into the return of the Form 1120-S, U.S. Income Tax Return for an S Corporation.

# Action Code Chart

3.12.217.2.17.2 (01-17-2025) Action Code Chart The Action Code (AC) shows that specific information is missing or that the return is to be rejected from processing. The code will show if taxpayer correspondence is needed or if specific in-house research or other action is required. This chart describes each AC, their functional use (CE = Code and Edit, EC = Error Correction, S = Suspense Correction and GEN = computer generated) and the suspense period. Action Code Description Workday Suspense Period Function Used 001 Input Document 0 GEN 211 First Correspondence 40 CE, EC, S 212 Second Correspondence 25 CE, EC, S 213 Correspondence to other 40 CE, EC, S 215 International Correspondence 45 CE, EC, S 225 Taxpayer Correspondence - Signature Only 40 CE, EC, S 226 International Correspondence (Signature Only) 40 CE, EC, S 300 Examination (Fuel Tax Credit) 10 CE, EC, S 310 Statute Control 10 CE, EC, S 320 Entity Control 10 CE, EC, S 321 Form 851, Affiliations Schedule, Employer Identification Number (EIN) Mismatch Modernized e File (MeF) Form 1120, U.S. Corporation Income Tax Return only 10 EC 331 Frivolous Review 3 CE, EC 332 Questionable Refund Detection Team (QRDT) 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 10 CE, EC, S 337 Other Criminal Investigation (CID) 10 CE, EC, S 341 Manual Refund 10 CE, EC, S 342 Credit Verification 10 CE, EC, S 343 Other Accounting Note: This Action Code is also used for "Black Liquor" claims on Form 6478, Biofuel Producer Credit (Credit for Alcohol Used as Fuel for 2012 - 2007) 10 CE, EC, S 344 Manual Refund by Error Resolutions (ERS) 0 EC 347 Form 2553, Election by a Small Business Corporation, attached to Form 1120-S, U.S. Income Tax Return for an S Corporation, and/or taxpayer shows Rev. Proc. 2013-30 (effective September 3, 2013) on any page of the Form 1120-S, U.S. Income Tax Return for an S Corporation, regardless of a form is attached. Control send case to Entity for approval. 20 EC, CE, S 351 Taxpayer Identification Number (TIN) Research 0 EC, S 352 Name Research 3 CE, EC, S 353 Address Research 3 CE, EC, S 354 Filing Requirement Research 3 CE, EC, S 355 Other MFTRA Research 3 CE, EC, S 360 Other In-House Research 10 CE, EC, S 370 Examination 10 CE, EC, S 410 Technical Help 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 Note: Action Code "450" Used to send return to ERS Rejects Function and/or LB&I review for processing of Elective Payment Election (EPE) and Credit Transfers for processing under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022. 20 CE, EC, S 460 Management Suspense-E Note: Used to send return to ERS Rejects Function for processing of "Section 965" for Tax Period 201712 through 202012. 25 CE, EC, S 470 Complex Error Code 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 550 Mag Tape Attachments 0 CE 551 Mag Tape Inconsistent Data 0 CE 610 Renumber- Non-Remittance 0 CE, EC 611 Remittance Renumber 0 S 620 Non-Master File (NMF) / Non-ADP 0 CE, EC, S 630 Reinput 0 EC 640 Void 0 CE, EC, S 650 International 0 CE, EC, S 660 Data Control Delete Tape Edit Processor (TEP) Delete 0 S 670 Deleted Missing Document 0 GEN 700 Duplicate (Dup) Block DLN 0 GEN 711 Dup. DLN From Code and Edit (C&E) 0 GEN 712 Dup. DLN From Error Correction 0 GEN 713 Dup. DLN From Unpostables 0 GEN 714 Dup. DLN From Unworkable suspense 0 GEN 715 Dup. DLN From Workable suspense 0 GEN 800 National Account Profile (NAP) Linkage Problem 2 EC, S 900 Unpostable Record 0 GEN Beginning with tax returns for periods ending 12-31-2007 and later, Form 2553, Election by a Small Business Corporation, may be filed as an attachment to the return requesting to be considered an S Corporation. Code & Edit edits Action Code (AC) "347" when the taxpayer attaches Form 2553, Election by a Small Business Corporation or shows Rev. Proc. 2013-30 (effective September 3, 2013) on any page of the return. For MeF filed returns will generate an Action Code "347" when Form 2553, Election by a Small Business Corporation or shows Rev. Proc. 2013-30 (effective September 3, 2013). Error Correction must then assign the case to Entity Control for prompt consideration.

# Clear Code "C" and "000"

3.12.217.2.17.3 (01-01-2022) Clear Code "C" and "000" The letter "C" is used as a "Clear Code" for the Error Codes when the resolution does not require a change or correction to the return. The display includes a Clear Code Field labeled "C.L" CC CRECT is used to enter the "C." Code "C" is also used for clearing the Action Code from the screen after corrections for the Action Code have been completed. For example, Action Code "410" must be cleared so other errors can be resolved. The presence of the "C" with a Priority I Error shows that you have made corrections to the Action Code and now other errors on the return can display. The "000" is also used as a Clear Code when deleting Action Codes. It is used for erroneous Action Codes when you determine there is no reason to suspend the return. The "000" cannot be used in Suspense Correction. Programming erases all "C" Clear Codes for Error Codes when a return is suspended with the CC SSPND. Programming erases all "C" Clear Codes for Error Codes and Action Codes in the new Error Inventory and Workable Suspense Inventory. Unfinished returns from the previous day will not show the "C" Clear Codes that were assigned to a return but not completely worked. Error Codes (including the ones which may require a "C" Clear Code) are numbered consecutively for correcting. There may be instances when the ERS tax examiner will create an Error Code with a higher priority than those cleared with a Taxpayer Notice Code or "C" Clear Code. Should this occur, programming will erase all "C" Clear Codes and Taxpayer Notice Codes for Error Codes with a lower priority. Beginning with the highest priority Error Code, programming will continue displaying Error Codes for the return. Displays using the corrected data are different from those previously displayed. There may be instances when you will make a correction erasing an Error Code previously cleared with a "C" and now the error condition no longer exists. Should this occur, the "C" Clear Code for this error and all "C" and TPNC for subsequent errors in the return are deleted. If errors remain on the return after deleting the "C" and TPNCs, they will re-display for resolution. The "C" Clear Code will prevent any other corrections to the return. If a correction must be entered but you have already entered the "C" Clear Code, and the error is no longer displayed, create a higher priority error. If the return has cleared, then use CC GTRECW to make corrections.

# Unprocessable Automatic Data Processing (ADP) Return

3.12.217.2.18 (01-01-2022) Unprocessable Automatic Data Processing (ADP) Return When the perfection of a return is not possible and it is necessary to correspond, perform research or refer the document to another area of Submission Processing. The return is suspended, and required action taken. Suspend the unprocessable return by entering the CC SSPND followed by the proper Action Code (AC). In cases where the AC cannot describe the required action, attach Form 4227, Intra-SC Reject or Routing Slip, to the return with an explanation. If the tax examiner will not be issuing a letter through IDRS, it is necessary to attach a Correspondence Action Sheet (Form 3696, Correspondence Action Sheet,). A Charge-Out, Form 8161, ERS Return Charge-Out, is computer generated for all new suspense items. The Charge-Out is used for pulling documents, routing and controlling documents while the return is held in suspense, and associating the document with the Workable Suspense Inventory when the return becomes workable.

# Correspondence

3.12.217.2.19 (01-01-2024) Correspondence Replies - When the taxpayer replies to correspondence, continue to process the return. No Replies - When the taxpayer does not respond to correspondence, input CCC "3" and use the following procedures as applicable. Tax Period If Then Tax Period is more than 12 months, Research for the correct period ending and change the Tax Period to conform with the previous filing. Tax Period is an unexplained short year, Enter Computer Condition Code "Y" in Field 01CCC. When the screen returns, enter a "C" in the Clear Code Field. Tax Period is an unauthorized change in Accounting Period, Enter Computer Condition Code "Y" in Field 01CCC. When the screen returns, enter a "C" in the Clear Code Field. There are multiple Tax Periods, Use the earliest Tax Period. If a remittance return, SSPND return to have the remittance posted to the correct period. Other If Then Signature is required, Enter CCC "X" and CCC "3" . Schedule D, See IRM 3.12.217.23.28, Error Code 660 - Total Tax Taxpayer present and No 06MCT, for Schedule D procedures. Line 23a Support Schedule, See IRM 3.12.217.23.28, Error Code 660 - Total Tax Taxpayer present and No 06MCT, for Line 23a Support Schedule procedures. Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, See paragraph (3) below to enter a Missing Schedule Code for Schedule K. Continue normal processing. Note: Correspondence for Form 8825 was issued to support the Schedule K, Line 2 entry. Schedule L - Balance Sheet, See paragraph (3) below to determine and enter a Missing Schedule Code. Continue normal processing. Schedule K-1, Shareholder's Share of Income, Deductions, Credits, etc., See paragraph (3) below or IRM 3.12.217.3.15, Field 01MSC - Missing Schedule Code, to determine and enter a Missing Schedule Code. Continue processing. Unsubstantiated credits If Then Form 6478, Biofuel Producer Credit, is unsubstantiated, Delete credit from the return and the screen. Form 4136, Credit for Federal Tax Paid on Fuels, is unsubstantiated, Delete credit from the return and the screen. Form 6249, Computation of Overpaid Windfall Profit Tax, is unsubstantiated, Delete credit from the return and the screen. Form 8586, Low-Income Housing Credit, is unsubstantiated, Delete credit from the return and the screen. Form 8611, Recapture of Low-Income Housing Credit, is unsubstantiated, Delete credit from the return and the screen. For missing schedules use the chart below to determine the Missing Schedule Code, Field 01MSC: Missing Schedule Input Code Schedule(s) K-1 33 Schedule L (Balance Sheet) 34 Schedule(s) K-1 and L 36 Schedule K 45 Schedule K and K-1 46 Schedules K and L 47 Schedules K, K-1 and L 49

# Correspondence Action Sheets

3.12.217.2.19.1 (01-01-2020) Correspondence Action Sheets If the tax examiner is not issuing a letter through IDRS, attach a Correspondence Action Sheet (Form 3696, Correspondence Action Sheet) or other acceptable form to the return.

# ♦Correspondence Imaging Inventory (CII) Returns♦

3.12.217.2.20 (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 "CII" returns: 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 with Action Code "640" to have the DLN voided. Attach Form 4227, Intra SC Reject or Routing Slip, (or other proper routing slip) to the return and route to AM to secure missing information. If the return comes back from AM with incomplete information, send the return to AM again to secure all the missing information. Show "Additional information needed to process incomplete CII return," or similar language on Form 4227, Intra-SC Reject or Routing Slip (or other proper routing slip). The "CII" return has a Form 13596, Reprocessing Returns, attached and the return is incomplete (e.g., missing signature, schedules, or forms), The return shows correspondence was 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 (TC 150 posted). If TC 150 is present and the information is the same, cancel the DLN and treat as classified waste. Note: Classified waste is documentation containing taxpayer entity or account information that is not part of the case and is not needed for audit trail purposes. Refer to IRM 21.5.1, General Adjustments, for guidance on handling classified waste to prevent inadvertent/unlawful destruction of records. If TC 150 is not present, follow normal correspondence procedures.

# ♦Use of Fax for Taxpayer Submissions♦

3.12.217.2.21 (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, fax signatures are acceptable. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use. Select the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options. Use the following resources to ensure 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

# Perfection of Attachments

3.12.217.2.22 (01-01-2022) Perfection of Attachments Sometimes a return is received with written information on an attachment. If Then The taxpayer writes a question or request for help on the return itself, Make a photocopy of the question/request and the taxpayers EIN, name and address. Route this information to the proper function. Unrelated, unanswered taxpayer correspondence is attached, and no action was taken, Detach and route to the proper area using local Submission Processing Campus procedures. Unanswered taxpayer correspondence relating to the Form 1120-S is attached, Make a photocopy of the attachment and forward it to the proper area using local Submission Processing Campus procedures. All attachments or photocopies of an attachment that are routed to another area must have the taxpayers: Name Address EIN Received Date

# Integrated Data Retrieval System (IDRS) Research Tools

3.12.217.2.23 (01-01-2024) Integrated Data Retrieval System (IDRS) Research Tools The following shows some IDRS Command Codes (CCs). See IDRS Command Codes at: IDRS Command Code Job Aid for all Command Code Job Aids.

# NAMEE Search

3.12.217.2.23.1 (01-01-2024) NAMEE Search Command Code (CC) NAMEE uses a system called Name Search Facility (NSF), which is a Taxpayer Identification Number searching tool. NSF provides a national centralized name search capability that replaces the Key Index File (KIF) found at each Submission Processing Campus. Authorized users will have access to NSF via CC NAMEE for Employer Identification Number (EIN) searches. NSF will provide an input screen to enter data about the taxpayer (name, address, etc.). It will match the data entered to data we have in our files and will return to the users the Social Security Number (SSN) or EIN of any possible matches. The more information entered, the narrower the search and the better the possibility of a match. The CC NAMEE requires a name be entered for searching the NSF use CC NAMEE to verify that the EIN the taxpayer has furnished is on the Master File. See IDRS Command Codes at IDRS Command Code Job Aid for all CC Job Aids.

# On-Line Entity (OLE)

3.12.217.2.23.2 (01-01-2020) On-Line Entity (OLE) On-Line Entity (OLE) is a Taxpayer Identification Number (TIN) system designed to allow for validation of the EIN and EIN/name control online with Integrated Data Retrieval System (IDRS) input Command Codes (CC). It is also designed to allow for entity research on a national basis. Use CC INOLE to research the entity module. This information includes name lines, name control, address, employment codes and filing requirements. See IDRS Command Code Job Aid for all CC Job Aids. The display for a BMF EIN account or INOLE will show the: Primary name and all the name lines on the BMF Mailing address Primary name control Prior name control Sole proprietor SSN Fiscal month Prior fiscal month Establishment date Employment code Exempt Organization (EO) data, if present, and Filing requirements Validation of IDRS CCs - IDRS CCs that create a transaction for posting to the Master File will have the EIN and EIN/name control validated using the Taxpayer Information File (TIF), and the National Account Profile (NAP). The CCs will not return the "Request Completed" response until the EIN and EIN/name control have been validated by the NAP as being on the Master File that the transaction will try to post. The following IDRS CCs are affected by OLE validation: FRM49 - Taxpayer Delinquent Return Notices and Investigations ENREQ - Entity Changes If there is a match to the EIN and name control, then continue normal processing. If there is an EIN or name control mismatch, see IDRS Command Code Job Aid for all CC Job Aids.

# BRTVU

3.12.217.2.23.3 (01-01-2024) BRTVU Command Code (CC) BRTVU is used to research edited, transcribed and computer-generated line items for BMF returns and related forms and schedules. This information is accessed using CC BRTVU with a Taxpayer TIN, a two-digit Master File Transaction (MFT) Code, Tax Period and Definer Code. The Returns Transaction File does not have all the information available on the IDRS system, for example, IDRS notice status, case control information. BRTVU can be accessed even when TXMOD and SUMRY are not available. CC BRTVU, with definer "SM," requests the summary screen for a specific EIN, MFT and Tax Period. This screen provides information about income, deductions, tax, remittance, number of pages, and schedules or forms attached to the return. Definers are displayed for the forms that are present with the return. A form is present if any field on the related screen (other than name control) has significant data. If the definer is blank or invalid, or a definer is requested for a screen not available for the return requested, the computer will display the summary screen, showing the available screen and definers. Screens may be accessed using the correct two positions definer code. Valid BRTVU definers for Form 1120-S are: Definer Meaning SM Summary screen R1 Screen 1 R2 Screen 2 R3 Screen 3 SK Schedule K N1 Form 4136, Credit for Federal Tax Paid on Fuels V2 Form 8586, Low-Income Housing Credit (PY 91) V1 Form 8586, Low-Income Housing Credit, (PY 91) W1 Form 8611, Recapture of Low-Income Housing Credit, (PY 91) Amended and duplicate returns are accessed via CC BRTVU by inputting a sequence number immediately after the definer code. These returns will display the format of the year processed; therefore, the line numbers may be inconsistent with current year returns.

# BMFOL

3.12.217.2.23.4 (01-01-2022) BMFOL Command Code (CC) BMFOL provides on-line research capability of nationwide entity and tax data information posted to the Master File. CC BMFOL displays information like CC MFTRA. In fact, CC BMFOL is a suggested alternative to CC MFTRA. CC BMFOL, with the definer "I," displays a summary screen for a specific account. The summary screen will show what other display screens are accessible and a minimum of information on each available module. For further explanation of the screen displays and applicable definer codes, see IDRS Command Code Job Aid for all CC Job Aids.

# Form 1120 Converted to Form 1120-S

3.12.217.2.24 (01-01-2022) Form 1120 Converted to Form 1120-S Form 1120, U.S. Corporation Income Tax Return, must be converted to Form 1120-S when the taxpayer has filed Form 1120 and the Entity Control Unpostable Unit determines the taxpayer has a valid Form 2553, Election by a Small Business Corporation, on file. When Form 1120 is converted to a Form 1120-S, Entity must ensure that only the Received Date (Field 01RCD), North American Industry Classification System (NAICS) code (Field 01NAI), and Audit Code "4" (Field 03ADC) are edited to the new renumbered form. If a field other than those mentioned above was transcribed, delete it. For MeF Form 1120 being reprocessed as Form 1120-S, ensure the correct Received Date is edited on the document. The Received Date is the Julian DLN date of the original DLN. Do not subtract 10 days in the case from the Julian Date. Do not enter any tax data on the "blank" Form 1120-S.

# Installment Agreement

3.12.217.2.25 (01-01-2020) Installment Agreement If a request for an installment agreement (an inquiry by the taxpayer to make payments on a debt) is attached to any return, detach it and send it to the Collection Branch. This request may come on Form 9465, Installment Agreement Request. When forwarding the installment request ensure the following information is included as a working trail: EIN, Name, Type of Return, Tax Period, Amount Due and Amount Paid.

# Section 965 Returns

3.12.217.2.26 (01-01-2022) Section 965 Returns Section 14103 of the Tax Cuts and Jobs Act (TCJA) of 2017 overhauled Section 965 of the Internal Revenue Code. Section 965, now titled "Treatment of deferred foreign income upon transition to participation exemption system of taxation," provides that U.S. shareholders must pay a transition tax on the untaxed foreign earnings of certain specified foreign corporation as if those earnings had been repatriated to the United States. If the Tax Period is 201712 through 202012, SSPND with Action Code "460" , and input "J" in Field 01CCC, when any of the following are present: "Section 965" or "965 Tax" (or similar language) notated on the return, attachment, or statement. IRC 965 Transition Tax Statement (or similar 965 statement) is attached. Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, is attached. Form 965, Schedule A, U.S. Shareholder's Section 965(a) Inclusion Amount, is attached. Form 965, Schedule B, Deferred Foreign Income Corporation's Earnings and Profits (E&P) is attached. Form 965, Schedule C, U.S. Shareholder's Aggregate Foreign Earnings and Profits Deficit, is attached. Form 965, Schedule D, U.S. Shareholder's Aggregate Foreign Cash Position, is attached. Form 965, Schedule E, U.S. Shareholder's Aggregate Foreign Cash Position - Detail, is attached. Form 965, Schedule F, Foreign Taxes Deemed Paid by Domestic Corporation, is attached. Form 965, Schedule G, Foreign Taxes Deemed Paid by Domestic Corporation for U.S. Shareholder Tax Year Ending in 2017, is attached. Form 965, Schedule H, Disallowance of Foreign Tax Credit and Amounts Reported on Forms 1116 and 1118, is attached. Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is attached. A significant entry is present on Schedule K, Lines 10, 12d, or 14r (2020 - 2017 form revisions) or Line 17d with the notation "Section 965" or similar language. Note: A significant entry is defined as any amount other than zero. If a Section 965 return was found by ERS and C&E has not edited Action Code "460" or CCC "J" or both, SSPND with Action Code "460" and enter CCC "J" in Field 01CCC. Follow the instructions below to finish processing the return. Ensure that the return was correctly identified as a Section 965 return. If Then The return was identified as a Section 965 return in error, Remove "J" from Field 01CCC, if present. Ensure all correspondence issues are addressed. Note: Code and Edit (C&E) was instructed not to correspond on Section 965 returns. C&E will notate "K-1 missing" (or similar language) in the lower left margin (action trail) of the return if correspondence is needed for missing Schedules K-1. Continue normal return processing. The return is confirmed as a Section 965 return, and correspondence is needed, Verify "J" is present in Field 01CCC. Resolve Field Errors or Error Codes or both. SSPND with Action Code "211" and correspond. Note: Code and Edit (C&E) was instructed not to correspond on Section 965 returns. C&E will notate "K-1 missing" (or similar language) in the lower left margin (action trail) of the return, if correspondence is needed for missing Schedules K-1. The return is confirmed as a Section 965 return, and correspondence is not needed, Verify "J" is present in Field 01CCC. Resolve Field Errors or Error Codes or both.

# Elective Payment Election (EPE) and Credit Transfers

3.12.217.2.27 (01-01-2025) Elective Payment Election (EPE) and Credit Transfers Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the S corporation can elect to: Take certain credits as a "Elective Payment" or "Deemed Payment" . Transfer certain credits to another taxpayer. Claim the credit as a General Business Credit. For tax periods 202201 - 202212, identify a "Elective Payment" or "Deemed Payment" when the taxpayer writes "IRA22DPE" on an attachment or on Form 1120-S, Line 23d dotted portion (prior year form revisions). When a return is identified with an "Elective Payment Election," and Code and Edit (C&E) has not done so, do the following: Enter "J" in Field 01RPC. Place a flag at the top of the return and attach the "IRA22EPE/TRE Reminder" sheet under the entity portion of the return. Note: P&A will provide the pre-printed reminder for ERS to use. Suspend with Action Code "450" . Sign the DLN out of the block using Form 1332, Block and Selection Record. Give the return to the lead. The lead will place the return in the designated area for LB&I review. When a return is identified with a "Credit Transfer," and C&E has not done so, do the following: Enter "K" in Field 01RPC. Place a flag at the top of the return and attach the "IRA22EPE/TRE Reminder" sheet under the entity portion of the return. Note: P&A will provide the pre-printed reminder for ERS to use. Suspend with Action Code "450" . Sign the DLN out of the block using Form 1332, Block and Selection Record. Give the return to the lead. The lead will place the return in the designated area for LB&I review. Note: A return can have both an RPC "J" and an RPC "K."

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# ♦Working Trail♦

3.12.217.2.29 (01-01-2026) ♦Working Trail♦ It is important to leave a legible "Working Trail" (or "Action Trail" ) using blue ink for those who may work 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 Exhibit 3.12.217-25, Taxpayer Notice Codes, for more 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: Employee Identification Number (EIN) Tax Period Received Date Computer Condition Code Correspondence Received Date (CRD) Reminder: Circle out incorrect Employer Identification Numbers (EINs), 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.

# Section 01 - Entity Data and Codes for Returns

3.12.217.3 (01-01-2024) Section 01 - Entity Data and Codes for Returns Section 01 is the entity and code section. Listed below are the fields in Section 01 of Form 1120-S : Field Designator Field Title Field Length Location on Form 1120-S 01NC Name Control 4 Page 1, First Name Line 01EIN EIN 9 Page 1, Box D, Employer Identification Number 01NAI North American Industry Code 6 Page 1, Box B, Business activity code number 01TXP Tax Period 6 Page 1, upper right margin 01RCD Received Date 8 Page 1, stamped date 01CCC Computer Condition Code 10 Dotted portion of Line 2 01TXB Tax Period Beginning 8 Page 1, to the left/near the title of the return. 01CRD Correspondence Received Date 8 ERS input only 01MSC Missing Schedule Code 2 Edited as "7-" 33, 34, 36, 45, 46, 47, or 49 to the left of Line 9. ERS input only 01CBI Checkbox Indicator 1 Page 1, Paid Preparer area 01PSN Tax Preparer SSN 9 Bottom of Page 1 01PEN Tax Preparer EIN 9 Bottom of Page 1 01PTN Tax Preparer Phone Number 10 Bottom of Page 1 01RPC Return Processing Code 35 Page 1, right margin next to Line 1c

# Remittance

3.12.217.3.1 (01-01-2012) Remittance Remittance (RMIT>) is an entry that identifies payment made with the return. This entry must be blank or numeric. If a numeric amount is present, it must be dollars and cents. It must be blank for non-remittance returns, overpaid returns and remittance returns processed through the Residual Remittance Processing System (RRPS)/Integrated Submission and Remittance Processing (ISRP) systems. This is a non-correctable entry.

# Field 01NC - Name Control

3.12.217.3.2 (01-01-2022) Field 01NC - Name Control Field 01NC consists of the first four significant characters of the corporation's name. The valid characters are alpha, numeric, ampersand "&," hyphen "-" , and blank. Invalid Condition: The first position is blank. The second, third or fourth position is not an alpha, numeric, hyphen, ampersand or blank. There are intervening blanks between significant characters. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Enter the Name Control. If the Name Control cannot be determined, research using local Submission Processing procedures.

# Field 01EIN - Employer Identification Number

3.12.217.3.3 (01-01-2022) Field 01EIN - Employer Identification Number The Employer Identification Number (EIN) is found in Box D on the return. Invalid Condition: The EIN begins with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89. The EIN is not numeric. The EIN is less than 9 characters. The EIN is all zeroes or all nines. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If transcribed correctly, search the return for another EIN or use local Submission Processing Campus research procedures to obtain the EIN. If found, enter in Field 01EIN and send a Letter 3875C, Missing or Incorrect EIN on Return - BMF/EPMF. Note: Do not send Letter 3875C 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 shows the account has been "merged to," or "merged from" or • The TIN on the return is the taxpayer's SSN (check CC INOLEG). If another EIN is not found during the search above, or if there is no record of an EIN, or multiple EINs are found, suspend the return with Action Code "320" and route to Entity Control for an EIN to be assigned. If Then Entity Control has found the correct EIN, Enter in Field 01EIN. Entity Control has assigned an EIN, Enter in Field 01EIN. Enter the Entity Assignment Date (from the lower left-hand corner of the return) in Field 01CRD, if it is after the Return Due Date. On an RPS return, with an EIN change SSPND with Action Code "351" to route to Rejects. Rejects will research any RPS return with a change to the EIN to determine if a payment has posted correctly.

# Field 01NAI - North American Industry Classification System (NAICS)

3.12.217.3.4 (01-01-2024) Field 01NAI - North American Industry Classification System (NAICS) Field 01NAI is a 6-digit field transcribed from Page 1, Box B, of Form 1120-S. Invalid Condition: The field is not present (except "G" coded returns). The field is not numeric. The field is not within range of 000001-999999. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Field 01NAI is blank, enter the entry from Page 1, Box B, Form 1120-S. If no code is found, enter "999999" . If the taxpayer uses the four-digit Principal Business Activity Code (PBA Code), enter the four-digit code preceded by two zeros.

# Field 01TXP - Tax Period

3.12.217.3.5 (01-01-2026) Field 01TXP - Tax Period Field 01TXP is found to the right of the title area, at the top of page 1 of Form 1120-S. Tax Period ending is printed in Year (YYYY), Month (MM) format e.g., Dec. 31, 2025 is printed 202512. The Tax Period must be present and have 6-digits. A taxpayer can file a return for: A Calendar Year (ends December 31). A Fiscal Year (ends last day of the month except December). A 52- and 53-Week Year ends 6 days before to 3 days after the end of the month (April 29, 2025 and May 2, 2025 both are 202504). Example: A 52-53-week tax year ending on the last Friday of the month can end up to 6 days before the last day of the month. If the tax year ended on April 27, 2024, then the Tax Period is 202504. Example: A 52-53-week tax year ending on the Friday nearest to the last day of the month can end up to 6 days before, or 3 days after the last day of the month. If the Tax Period ends August 3, 2025, then the valid period is 202507. Invalid Condition: The Tax Period is not all numeric. The last two digits (month) are not 01-12. The Tax Year (first four digits) is after the current year. The Tax Year is equal to the current year (e.g., 2024), but the month is after the current processing month. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Determine the correct Tax Period from Form 1120-S and attachments. If Then The Tax Period cannot be determined from the return, an attachment or research, Enter the current year in Field 01TXP. A "Final" return and the Tax Period ending is the same as or later than the Received Date, Change the Tax Period to the month preceding the Received Date. Note: If prepaid credits are claimed on Lines 24a or 24b, SSPND with Action Code "342" to have the credits moved to the correct Tax Period. A non-final return and the Tax Period ending is equal to or later than the current year-month by four months or less, SSPND with Action Code "480" and attach Form 4227, Intra-SC Reject or Routing Slip, noting that the return should be held and processed after the end of the Tax Period. A non-final return and the Tax Period ending is later than the current year-month by more than four months, SSPND with Action Code "211" and correspond, requesting confirmation of the Tax Period ending. The taxpayer response shows the return is a "final" return and the close of business precedes the edited Tax Period, Change the Tax Period to agree with the close of business date. Note: If prepaid credits are claimed on Lines 24a or 24b, SSPND with Action Code "342" to have the credits moved to the correct Tax Period. No reply is received, SSPND with Action Code "480" and attach Form 4227, Intra-SC Reject or Routing Slip, noting that the return should be held and processed after the end of the Tax Period.

# Field 01RCD - Received Date

3.12.217.3.6 (01-01-2026) Field 01RCD - Received Date Field 01RCD is a numeric field that is either the date stamped by Receipt and Control or edited by Code & Edit. The Received Date is required on allForm 1120-S, without regard to whether the Form was received before or after the due date for the return. Field 01RCD must be present and entered in "YYYYMMDD" format. Invalid Condition: The Received Date is not present. The Received Date is not in "YYYYMMDD" format. The Received Date is later than the current processing date. The Received Date is not all numeric. The Received Date is not within the valid month or day range detailed below: Month Day 01, 03, 05, 07, 08, 10, and 12 01-31 04, 06, 09, and 11 01-30 02 01-28 (29 leap year) Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then The Received Date is invalid, and it appears that the incorrect year was used (e.g., 20250115 instead of 20260115), and other information (Julian Date, postmark date, or signature date) shows that the Received Date should be a current year, Change the Received Date year to the current year. Multiple Received Dates are present, Enter the earliest IRS stamped Received Date. The Received Date is missing or illegible, Determine Field 01RCD using the following priority order: 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: If both U.S. Postal Service and private meter marks are present, honor the U.S. Postal Service Postmarks. Note: For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that was attached to the return (should be before the envelope. Use the Acceptance date on the return 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 shows signature date is invalid). DLN Julian Date minus 10 days, unless MeF return. Use the original Julian DLN date when assigning a Received Date for MeF returns. Current date minus 10 days.

# Field 01CCC - Computer Condition Code

3.12.217.3.7 (01-01-2022) Field 01CCC - Computer Condition Code Computer Condition Codes are used to identify a specific condition for the computer and can have up to 10 positions. Computer Condition Codes are edited to the center dotted portion of the Income Area, on page 1 (Lines 1-6), Form 1120-S. Invalid Condition: The field does not have an entry of "B, D, E, F, G, I, J, L, M, O, Q, R, S, T, W, X, Y, 1, 2, 3, 8, and 9" . Correction Procedures: If an overflow condition occurs in Field 01CCC (more than 10 codes) keep the codes in the following priority: "F" , "D" , "O" , "Y" , "W" , and others. Correct coding errors, transcription errors, and misplaced entries. Refer to the chart of Computer Condition Codes in IRM 3.12.217.3.8, Computer Condition Code (CCC) Chart. If CCC "G" is present with another CCC except "S," "T," "W," and/or "3" , it will cause a field error. If CCC "G" is correct, delete all other CCC except "S," "T," "W," and/or "3" . Otherwise, delete CCC "G" and enter all tax information as reported on the return. CCC "M" is valid for Tax Periods 201712 and later. A Field Error will display if Tax Period is before 201712 and CCC "M" is present. Verify the Tax Period and make corrections as needed.

# Computer Condition Code (CCC) Chart

3.12.217.3.8 (01-01-2024) Computer Condition Code (CCC) Chart Use the chart below to identify Computer Condition Codes: Code Definition Error Check B Enter when a taxpayer has made an Entry in the margin of either Schedule D or Form 4797, Sale of Business Property, electing not to report sales on the installment basis. D Reasonable cause for failure to pay taxes timely, Received Date must be present. E Potential Identify Theft Filing, Edited by the BMF ID Theft Liaison. F Final Return. G Amended Return, No other CCC except "W," "T," "S" and/or "3" . All entries must be blank, except RMIT, 01NC, 01EIN, 01TXP, 01RCD, 01CCC, and 01CRD. I Form 6781, Gains and losses from Section 1256 Contracts and Straddles, is attached, Received Date must be present. Tax Period must be 198106 and later. J If the Tax Period is 201712 through 202012, input "J" in Field 01CCC when any of the following are present: "Section 965" or "965 Tax" (or similar language) notated on the return, an attachment, or statement. IRC 965 Transition Tax Statement (or similar statement) is attached. Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System is attached. Form 965, Schedule A, U.S. Shareholder's Section 965(a) Inclusion Amount is attached. Form 965, Schedule B, Deferred Foreign Income Corporation's Earnings and Profits (E&P) is attached. Form 965, Schedule C, U.S. Shareholder's Aggregate Foreign Earnings and Profits Deficit, is attached. Form 965, Schedule D, U.S. Shareholder's Aggregate Foreign Cash Position is attached. Form 965, Schedule E, U.S. Shareholder's Aggregate Foreign Cash Position - Detail, is attached. Form 965, Schedule F, Foreign Taxes Deemed Paid by Domestic Corporation, is attached. Form 965, Schedule G, Foreign Taxes Deemed Paid by Domestic Corporation for U.S. Shareholder Tax Year ending in 2017, is attached. Form 965, Schedule H, Disallowance of Foreign Tax Credit and Amounts Reported on Forms 1116 and 1118, is attached. Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is attached. A significant entry is present on Schedule K, Lines 10, 12d, or 14r (form revision 201712 - 202012) or Line 17d with the notation "Section 965" or similar language. Note: A significant entry is defined as any amount other than zero. See IRM 3.12.217.2.26, Section 965 Returns. L Taxpayer writes Section 6114 "Election" on the return or attached Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), to the return. M Form 8949, Sales and Other Dispositions of Capital Assets - Enter "M" in Field 01CCC when: Tax Period is 201712 and later, and Form 8949, has a code "Z" or code "Y" in column (f), Note: Tax Cuts and Jobs Act of 2017, P.L. 115-97 (H.R. 1), Section 13823, Opportunity Zones. Taxpayers who elect to defer gain on the sale of an asset by investing in an Opportunity Zone Fund will show enter code "Z" or "Y" in Column (f). Tax Period must be for 201712 and later. O Quick refund of overpayment. Q Form 8913 (This field is no longer used but is still in ERS programming. Tax Period 2006 to 200711). R Reasonable cause for delinquency, Received Date must be present. S Form 8883, Asset Allocation statement under section 338, is attached to the return. T Form 8886, Reportable Transaction Disclosure Statement, is attached to the return. W Used to bypass Statute check, Entered when a return was cleared by Statute Control Group. X Shows settlement of the return is to be frozen. Y Updates Fiscal Year Month (FYM) on Master File. Entered only on a short period return due to change of accounting period, Return must be manually verified. 1 Current Year Related Party Like-Kind Exchange Indicator, Form 8824, Like-Kind Exchanges (and section 1043 conflict-of-interest sales), is attached, "1" is generated in Field 01CCC. 2 Form 8938, Statement of Specified Foreign Assets is attached. 3 Entered if no reply to correspondence, Enter to suppress credit interest from being generated. 8 Waiver of Estimated Tax Penalty, When tax on annualized income is computed by the taxpayer, (taxpayer has attached a worksheet) or if the taxpayer has written "Waiver" in the bottom margin of page 1, or on Form 2220, Underpayment of Estimated Tax by Corporations, enter CCC "8" on the return. The Tax Period cannot be before 198912. 9 Low-Income Housing Credit Indicator, If not present enter "9" when Form 8611, Recapture of Low-Income Housing Credit, Form 8609-A, Annual Statement for Low-Income Housing Credit, or Form 8586, Low-Income Housing Credit, is attached and has entries on any of Lines 1 through 3 (2016 and prior revisions).

# Field 01TXB - Tax Period Beginning

3.12.217.3.9 (01-01-2026) Field 01TXB - Tax Period Beginning Field 01TXB is found on page 1, to the left near the title of Form 1120-S. The Tax Period Beginning displays in YYYYMMDD format and must have 8-digits. Invalid Condition: The Tax Period beginning date is not numeric. The last two digits (month) are not 01-12. The Tax Period beginning date is later than Tax Period end date (e.g., if Tax Period is 202512 and Tax Period beginning date is 1/1/2026 or later). The Tax Period beginning date is earlier than 12 months before Tax Period end date (e.g., if Tax Period is 202512, and Tax Period beginning date is 11/01/2024 or earlier). Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Determine and enter Field 01TXB for all "Initial" , "Final" , and "Short Period" returns.

# Field 01CRD - Correspondence Received Date

3.12.217.3.10 (01-01-2022) Field 01CRD - Correspondence Received Date Field 01CRD is a numeric field found on the reply to correspondence. The Correspondence Received Date (CRD) displays in YYYYMMDD format and must have 8-digits. Invalid Condition: The field is not numeric. The field is not in YYYYMMDD format. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Determine the CRD from the date the reply was received at the campus. If the reply was not date stamped, use the U.S. Postal Service postmark date on the envelope attached to the reply. If more than one CRD is present, use the CRD that made the return complete and processable. If there is an indication that Entity Control has assigned an EIN to the return, enter the entity assignment date found in the lower left-hand corner of the return if it is later than the Received Date and the Return Due Date. If there are both a CRD and an Entity Assignment date, enter the later of the two. Do not enter Field 01CRD if any of the following conditions are present: • The correspondence was received before the due date of the return. • The correspondence was required because of an IRS processing error. • We failed to ask for all the required information. • The correspondence was not necessary. • The correspondence was issued in error. If the reply is missing, incomplete or the letter is undeliverable, enter CCC "3" in Field 01CCC.

# Field 01CBI - Preparer Checkbox Indicator

3.12.217.3.11 (01-01-2022) Field 01CBI - Preparer Checkbox Indicator The Paid Preparer Checkbox is found next to the taxpayer signature area. This box is used to show whether the taxpayer has elected to allow the Paid Preparer to answer questions about the taxpayers return as it is being processed. This field is transcribed from the bottom of page 1, Form 1120-S. Invalid Condition: The field is other than "1" or blank. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then The "Yes" box is checked, Enter a "1" in Field 01CBI. The "No" box is checked or neither box is checked or both boxes are checked, Delete Field 01CBI and continue processing.

# Field 01PSN - Preparer Tax identification Number (PTIN)

3.12.217.3.12 (01-01-2023) Field 01PSN - Preparer Tax identification Number (PTIN) The Preparer Taxpayer Identification Number (PTIN) is transcribed from the PTIN box in the Paid Preparer Use Only section of Page 1, Form 1120-S. Data may or may not be present in Field 01PSN. Valid Condition: Entries are blank, all numeric or a "P" for the first character followed by eight numeric characters. Invalid Condition: The field is all zeros, all nines, less than nine positions, or is other than a "P" followed by 8-digits. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If unable to determine a valid entry, delete Field 01PSN.

# Field 01PEN - Preparer Employer Identification Number

3.12.217.3.13 (01-01-2023) Field 01PEN - Preparer Employer Identification Number The Preparer EIN is transcribed from the Firm's EIN box in the Paid Preparer Use Only section of Page 1, Form 1120-S. Valid Condition: This field can be blank, or it can be numeric. If numeric, it cannot be all zeros or all nines. Invalid Condition: The field is all zeros, all nines or less than nine positions. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If unable to determine a valid entry, delete Field 01PEN.

# Field 01PTN - Paid Preparer Telephone Number

3.12.217.3.14 (01-01-2023) Field 01PTN - Paid Preparer Telephone Number The Paid Preparer Phone Number is transcribed from the "Phone no." box in the "Paid Preparer Use Only" section of page 1, Form 1120-S below the Firm's EIN. Note: If the taxpayer checked the paid preparer checkbox "Yes," a telephone number for the paid preparer must be entered to allow contact. Invalid Condition: The field is other than alpha or numeric. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the telephone number is invalid, delete Field 01PTN.

# Field 01MSC - Missing Schedule Code

3.12.217.3.15 (01-01-2022) Field 01MSC - Missing Schedule Code Beginning with Tax Period 200812, filers of Form 1120-S are charged penalties for not providing a complete return. Code and Edit (C&E) initiates correspondence when needed, requesting the missing information, and ERS corrects Field 01MSC if the missing information is not received. Enter Field 01MSC whenever the taxpayer does not respond to our request for missing information. See the chart below for the correct code. Missing Schedule(s) Code Schedule(s) K-1 33 Schedule L (Balance Sheet) 34 Schedule(s) K-1 and L 36 Schedule K 45 Schedule K and K-1 46 Schedules K and L 47 Schedules K, K-1 and L 49 Invalid Condition: The field is not numeric and not one of the numbers shown above. Note: There is always a possibility that a Missing Schedule Code is edited by C&E. However, employees working the suspense files in ERS must enter the correct code based on the response received from the taxpayer. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If taxpayer does not respond with the missing information, input the correct Missing Schedule Code as shown in (2) above. Suspense Procedures: If Then Taxpayer responds with missing information, Enter Correspondence Received Date in Field 01CRD and continue processing. Taxpayer does not respond, Enter correct Missing Schedule Code in Field 01MSC. Taxpayer does not provide missing TINs on Schedules K-1, Enter Missing Schedule Code "33" in Field 01MSC and continue processing. Taxpayer provides missing Schedules K-1 or missing TINs, Write the DLN of the return on the first Schedule K-1, in the upper left-hand corner, then detach and send for processing. Enter Correspondence Received Date in Field 01CRD. Caution: Enter missing TINs on each Schedule K-1 before detaching for processing.

# Field 01RPC - Return Processing Code (RPC)

3.12.217.3.16 (01-01-2025) Field 01RPC - Return Processing Code (RPC) A Return Processing Code (RPC) is an alpha or numeric character used to identify a specific condition for the computer. The RPC is edited on Page 1, in the right margin next to Line 1c of Form 1120-S. Invalid Condition: The field is other than "A - H," "J - Y" , "2" , "4" , "6" , "7" , or "9" . The field is more than 35 characters. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. When the code(s) entered on the return are illegible or invalid, examine the return and enter the correct code from the table below: Note: RPCs do not need to be entered in any specific order. RPC Explanation A Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued, is attached. B Form 5471, Schedule H, Current Earnings and Profits, is attached. C Form 5471, Schedule I-1, Information for Global Intangible Low-Taxed Income, is attached. D Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations, is attached. E Form 8865, Schedule G, Statement of Application of the Gain Deferred Method Under Section 721(c), is attached. F Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. G Form 5471, Schedule G-1, Cost Sharing Arrangement, is attached. H Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, Part VIII has an entry (e.g., description, checkbox marked, percent, or an amount). J For tax periods 202201 - 202212, taxpayer writes IRA22DPE or CHIPS22DPE on Form 1120-S, Line 24d or on an attachment. Note: Do not edit RPC "J" on Tax Year 2023 and later returns processed in processing year 2025. K For tax periods 202201 - 202212, taxpayer writes IRA22TRE at the top of the return or on an attachment. Note: Do not edit RPC "K" on Tax Year 2023 and later returns processed in processing year 2025. L Form 7204, Consent to Extend the Time To Assess Tax Related to Contested Foreign Income Taxes-Provisional Foreign Tax Credit Agreement, is attached. M Form 7205, Energy Efficient Commercial Buildings Deduction, is attached. 2 Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached. 4 Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. 6 Form 8996, Qualified Opportunity Fund, is attached. 7 Form 8990, Limitation on Business Interest Expense Section 163(j), is attached. 9 Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is attached.

# Section 02 - Address Information

3.12.217.4 (01-01-2022) Section 02 - Address Information Section 02 is the address (entity) section. It is present when a change of address was entered. Listed below are the fields in Section 02 of Form 1120-S: Field Designator Field Title Field Length Location Form 1120-S 02CON In-Care-of-Name 35 Page 1, number and street line 02FAD Foreign Address 35 Page 1, number and street line 02ADD Street Address 35 Page 1, number and street line 02CTY City 22 Page 1, city, state, ZIP line 02ST State 2 Page 1, city, state, ZIP line 02ZIP ZIP Code 5/9/12 Page 1, city, state, ZIP line All fields are of variable length, and it is not necessary to account for every position allotted. This section is not present on a "G" coded return.

# ♦Field 02CON - "In-Care-of" Name♦

3.12.217.4.1 (01-01-2022) ♦Field 02CON - "In-Care-of" Name♦ Field 02CON is found in the entity section of the return. Field 02CON has 35 positions. The valid characters are alpha, numeric, ampersand "&," dash "-" , slash "/" or percent sign "%" . 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. The first position is blank. The first character of the "in-care of" name is not alpha or numeric. There are two consecutive blanks between significant characters. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then A "%" (percent) is in the first position, Verify there is a blank in the second position. If no blank, enter a blank space followed by the "in-care-of" name beginning with an alpha or numeric in Field 02CON. A blank is in the first position, Delete blank. 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, Verify "in-care-of" name on the return 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♦

3.12.217.4.2 (01-01-2022) ♦Field 02FAD - Foreign Address♦ Field 02FAD is found in the entity section of the return. This field will have an entry when there is a foreign address present on the return. Field 02FAD should not be present on "G" coded short length records. Valid characters are alpha, numeric, and special characters. Invalid Condition: Field 02FAD generates 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: ISRP will 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 coding errors, transcription errors, and misplaced entries. If Then Field 02FAD is present, GTSEC 02. Ensure Field 02CTY has a foreign country code and Field 02ST has 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 has a province name or abbreviation. See Exhibit 3.12.217-24, Province/County 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 proper position in 02CTY. See Exhibit 3.12.217-24, Province, State and Territory Abbreviation. A foreign address is not present on the return, SSPND with Action Code "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. If And Then Form 8822, or Form 8822-B, is attached, All the following applies: Mailing address information is the same, No location address is l on Form 8822 or Form 8822-B, Line 7, No entry on Form 8822-B, Lines 8 or 9, Take no action and continue processing. Form 8822, or Form 8822-B, is attached, Any of the following applies: Mailing address information is different, Location address is listed on Form 8822 or Form 8822-B, Line 7, An entry is on Form 8822-B, Lines 8 or 9, Enter address shown on Form 8822-B in Field 02FAD. Notate "Form 8822 or Form 8822-B detached" on tax return. Detach 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 must batch all Forms 8822 or Form 8822-B daily, and hand carry them to Entity Control for expedite processing.

# Field 02ADD - Street Address

3.12.217.4.3 (01-01-2022) Field 02ADD - Street Address This field is transcribed from the Street Address line of the entity portion of the return. Invalid Condition: Field 02ADD is invalid if: The field length is more than 35 characters. The 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. Note: ISRP will enter a pound "#" sign as the 35th character to show an overflow condition. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. 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. 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. If And Then Form 8822, or Form 8822-B, is attached, All of the following applies: Mailing address information is the same, No location address is listed on Form 8822 or Form 8822-B, Line 7, No entry on Form 8822-B, Lines 8 or 9, Take no action and continue processing. Form 8822, or Form 8822-B, is attached, Any of the following applies: Mailing address information is different, Location address is listed on Form 8822 or Form 8822-B, Line 7, An entry is listed on Form 8822-B, Lines 8 or 9, Enter address shown on Form 8822 or Form 8822-B in Field 02FAD. Notate "Form 8822 or Form 8822-B detached" on tax return. Detach Form 8822 or 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 Form 8822-B daily, and hand carry them to Entity Control for expedite processing.

# Field 02CTY - City

3.12.217.4.4 (01-01-2022) Field 02CTY - City This field is transcribed from the City, State, ZIP line of the entity portion, on page 1 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, ISRP enters the Major City Code instead of the entire name of the city and the state. When a Major City Code is used, it is the first two positions of Field 02CTY. Invalid Condition: Field 02CTY is invalid if: The 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 valid. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Follow procedures below: If Then Valid city is not available from return or envelope, Research using CC INOLES or ENMOD or Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, or Follow local Submission Processing (SP) procedures. Major city code is found, Enter in Field 02CTY and delete Field 02ST. Unable to correct, DLSEC 02.

# Field 02ST - State

3.12.217.4.5 (01-01-2022) Field 02ST - State This field is transcribed from the City, State, ZIP Code line of the entity portion of the return. If the address is a foreign address, defined as not within the 50 States or the District of Columbia, SSPND with Action Code "650" and attach a Form 4227, Intra-SC Reject or Routing Slip, with a notation to forward to the "Ogden Submission Processing Campus" . Note: An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) address is not considered a foreign address, but an address in an American possession. Invalid Condition: Field 02ST is invalid if the entry 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 coding errors, transcription errors, and misplaced entries. 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. • Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, and determine Major City Code. • Follow local Submission Processing procedures. Note: If a Major City Code is found, GTSEC 02. Enter the code in Field 02CTY and delete Field 02ST. If unable to correct, DLSEC 02.

# Field 02ZIP - ZIP Code

3.12.217.4.6 (01-01-2022) Field 02ZIP - ZIP Code This field is transcribed from the City, State, ZIP line of the entity portion of the return. Invalid Condition: Field 02ZIP is invalid if: The ZIP Code is present, and the first 5 positions are not numeric. The last 4 positions are not all numeric or all blank. Positions 4 and 5 are "00" . Exception: ZIP Code 20500. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If a valid ZIP code is not available from the return or envelope, research using any of the following to determine the ZIP code. INOLES, ENMOD, or Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries

# Section 03 - General Information

3.12.217.5 (01-01-2023) Section 03 - General Information Section 03 is a General Information section. Listed below are the fields in Section 03 of Form 1120-S: Field Designator Field Title Field Length Location on Form 1120-S 03PRI Precomputed Penalty/Interest (P/I) Code 1 Entered as "2-" followed by the P&I code next to Line 9, (deductions section) 03TPC Tax Preference Code (TPC) 1 Entered as "4-" followed by TPC code next to Line 9, (deductions section) 03SWC Salary and Wage Code 1 Page 1, Line 8, right margin 03ADC Audit Code 3 Entered as "1-" followed by the correct Audit Code next to Line 9, (deductions section) 03ISI Installment Sales Indicator 1 Edited as "3-" followed by the correct Installment Sales Indicator next to Line 9, (deductions section) 03IRC Initial Return Code 1 Page 1 Line G 03GSH Number of Shareholders 4 Page 1, Line I 03AMC Accounting Method Code 1 Page 2, Sch B, Line 1 03QG Consolidated S Corp Indicator - Reserved for Future Use 1 199712 and prior only. ERS input only. If Box G on page 1 is checked, input a 1 in Field 03QG. 03LIC Low-Income Housing Credit 15 Edited as "5-" followed by Form 8586, Low-Income Housing Credit, next to Line 9, (deductions section). 03RLI Total Recapture Credit 15 Edited as "6-" followed by the Form 8611, Recapture of Low-Income Housing Credit, next to Line 9, (deductions section).

# Field 03PRI - Penalty/Interest Code

3.12.217.5.1 (01-01-2022) Field 03PRI - Penalty/Interest Code The precomputed Penalty and Interest Code "1" is entered when the precomputed penalty and interest applies ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the original due date. Transcription is from the left-hand margin next to Line 9. If applicable "2-" followed by "1" was edited. Invalid Condition: The field is not blank or "1" . Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If interest only is shown, CCC "R" must also be present in Field 01CCC.

# Field 03TPC - Tax Preference Code

3.12.217.5.2 (01-01-2022) Field 03TPC - Tax Preference Code The Tax Preference Code "1" is entered to identify an excess amount claimed by the taxpayer. Transcription is from the left-hand margin next to Line 9. If applicable, "4-1" is edited. Invalid Condition: The field is not blank or "1" . Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. A "1" should be present in Field 03TPC if: Schedule K-1, Line 15, Alternative minimum tax (AMT) items, totals ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for any individual Tax Period. Form 4626, Alternative Minimum Tax - Corporations, is attached with an amount present on Lines 3, 6, or 11 for Tax Periods 201811 and prior only.

# Field 03SWC - Salary and Wage Indicator

3.12.217.5.3 (01-01-2022) Field 03SWC - Salary and Wage Indicator The Salary and Wage Code "1" must be entered when Salary and Wages are present. Invalid Condition: The field is not blank or "1" . Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Code "1" must be present in Field 03SWC if: Line 8, page 1 Form 1120-S has an amount for salaries/wages. Line 3, Form 1125-A, Cost of Goods Sold, has an amount for salaries/wages. If there are other attachments with salaries/wages shown. Field 03SWC may be blank if there is no indication of salaries/wages.

# Field 03ADC - Audit Code

3.12.217.5.4 (01-01-2025) Field 03ADC - Audit Code The Audit Codes are used to identify specific conditions requested by Examination. Field 03ADC is transcribed from the left-hand margin next to Line 9, page 1 Form 1120-S. If applicable "1-" followed by the correct Audit Code (1-9) was edited. Invalid Condition: The field is not numeric, alpha C, or blank. There are more than fifteen Audit Codes used at one time. A digit or character appears after the first blank. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Audit Code

3.12.217.5.5 (01-01-2024) Audit Code Audit Code "1" : Disclosure Statement / Inconsistent Filer: Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) is attached. Form 8275, Disclosure Statement, is attached. Form 8275-R, Regulation Disclosure Statement, is attached. Form 8886, Reportable Transaction Disclosure Statement, is attached. Audit Code "2" : International Income or Credit: Form 1120-S, Schedule K, Line 16f (Line 14(p) for 2020-2018 prior year revisions, Line 14(l) 2017 - 2004 prior year revisions), Foreign taxes paid or accrued, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, is attached. Schedule N (Form 1120), Foreign Operations of U.S. Corporations, is attached and Questions 1a, 3, 4a (2019 and prior revision), 5, or 7a are answered "Yes" . Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, is attached or Schedule N, Line 4a (201912 and prior revision) is marked "Yes" . Form 5472, Information Return of a 25% Foreign Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Under Sections 6038A and 6038C of the Internal Revenue Code), is attached. Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund is attached and Part V, Lines 15a - 16f has an ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Form 5713, International Boycott Report, Tax Effect of the International Boycott Provisions is attached and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" . Form 8832, Entity Classification Election, is attached and either box 2(d), (e) or (f) is checked. Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached. Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), is attached. Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached. Audit Code "3" : Noncash Charitable Contributions and Asset Transfers: Form 8883, Asset Allocation Statement Under Section 338, is attached and the amount in Box 5a, Stock Price, is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Form 8594, Asset Acquisition Statement Under Section 1060, is attached, and Box 3 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Audit Code "4" : Invalid "S" Election: Form 1120 processed with a valid election on file (Form 2553, Election by a Small Business Corporation) and converted to Form 1120-S. Audit Code "5" : Large Loss - Other Income: Form 1120-S, Schedule K - Line 10 reflects a loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Audit Code "6" : Form 3115, Application for Change in Accounting Method: Form 3115 is attached. Audit Code "7" : International Issues: Form 1120-S, Schedule K, Line 16f (Line 14(p) for 2020-2018 prior year revisions, Line 14(l) for 2017 - 2004 prior year revisions), Foreign taxes paid or accrued, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Form 5713, International Boycott Report, is attached ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" . Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualifying Electing Fund, is attached and Part V, Lines 15a - 16f has an entry of less than ≡ ≡ ≡ ≡ ≡ ≡. Audit Code "8" : Schedule M-3: Schedule M-3 attached. Audit Code "9" : First Year "S" Election: The date in Box A falls during the tax year for which the S corporation is being filed. Audit Code"C" : Form 8283, Noncash Charitable Contribution, is attached and Part I has any of the following conditions: Box 2b is checked or, Box 2b1 is checked or, Line 3, column (h) has an entry.

# Field 03ISI - Installment Sales Indicator

3.12.217.5.6 (01-01-2022) Field 03ISI - Installment Sales Indicator The taxpayer computes installment sales income. Transcription is from left hand margin next to Line 9, page 1 Form 1120-S. If applicable "3-" followed by the correct Installment Sales Indicator (1-3) was edited. Invalid Condition: The field is not "1" , "2" , "3" , or blank. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Examine the return and attachments to determine the correct code. Enter the Installment Sales Indicator code shown by the shareholder's response to Question 3, Form 6252, Installment Sale Income. Question 3 Code "Yes" 1 "No" 2 Blank Blank "Yes" and "No" 3 If an incorrect code is present, delete it and enter the correct code on the screen in Field 03ISI and on the left side margin next to Line 9, page 1 Form 1120-S. If a code should not be present, delete the entry on the screen.

# Field 03IRC - Initial Return Code

3.12.217.5.7 (01-01-2022) Field 03IRC - Initial Return Code This code is entered as an indication that this is a first-time filer. This field is determined from the Initial Return Box, Line G, page 1 Form 1120-S. Invalid Condition: The field is not "2" or blank. ISRP will transcribe this field from the code edited to the upper right margin of page 1, Box E. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If there is an indication the return is an initial return, enter a "2" when: • The initial return box found below the entity area is checked. • The date of incorporation, Box E, is within 12 months of the Tax Period ending. • There is an indication of an initial filing written on the return such as "Initial Return," "First Return" or "New Corporation." • The date of incorporation is within 24 months (or is not shown) and the beginning balance sheet is blank or zeros.

# Field 03GSH - Number of Shareholders

3.12.217.5.8 (01-01-2022) Field 03GSH - Number of Shareholders ISRP will transcribe this field from Line I, page 1 Form 1120-S. Invalid Condition: The field is not blank or "0001" through "9999" . Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Enter the Number of Shareholders present in Line I, page 1 Form 1120-S. Leave Field 03GSH blank if an entry is not present.

# Field 03AMC - Accounting Method Code

3.12.217.5.9 (01-01-2022) Field 03AMC - Accounting Method Code This code is input to identify taxpayer's accounting method. Transcription is from Line 1, Schedule B. Invalid Condition: The field is not blank, "1" , "2" , or "3" . Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Leave Field 03AMC blank if no or multiple boxes are checked. Input the Accounting Method Code as follows: Code "1" if box "(a)" is checked. Code "2" if box "(b)" is checked. Code "3" if box "(c)" is checked.

# Field 03LIC - Low-Income Housing Credit

3.12.217.5.10 (01-01-2024) Field 03LIC - Low-Income Housing Credit The taxpayer is claiming a Low-Income Housing Credit. Transcription is from the left-hand side margin next to Line 9, Form 1120-S (deductions section). If applicable "5-" followed by the Form 8586, Low-Income Housing Credit, credit amount. Invalid Condition: The money amount is not entered in dollars only. The money amount is not positive. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Form 8586, or Form 8609-A, Annual Statement for Low-Income Housing Credit, are attached or Low-Income Housing Credit is claimed (entries present on Schedule K, Lines 13a or 13b), enter "9" in Field 01CCC. If Low-Income Housing Credit is claimed, Form 8586 must be attached. Form 8609-A must also be attached if Form 8586 has any entries in Lines 1 through 3. If missing, SSPND with Action Code "211" and correspond. If "No Reply," enter CCC "3" .

# Field 03RLI - Total Recapture Credit

3.12.217.5.11 (01-01-2024) Field 03RLI - Total Recapture Credit The taxpayer is filing a Form 8611, Recapture of Low-Income Housing Credit, to recapture the Low-Income Housing Credit. Transcription is from the left-hand side margin next to Line 9, Form 1120-S(deductions section). If applicable "6-" was edited with the Form 8611 credit money amount. The money amount is notated next to "6-" and is edited in "dollars only" from Form 8611, Line 14. Invalid Condition: The field is not positive. Tax Period is before 198701. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If this field has an entry, Form 8611, must be attached. If missing, SSPND with Action Code "211" and correspond. If "No Reply," enter CCC "3" .

# Section 04 - Income

3.12.217.6 (01-01-2025) Section 04 - Income Section 04 is the income Lines (1-6) on Form 1120-S. Listed below are the fields displayed in Section 04 of Form 1120-S: Field Designator Field Title Field Length Dollars/Cents Positive/ Negative Location on Form 1120-S 0401A Gross receipts or sales 15 $ +/- Page 1, Line 1a 0401B Returns and Allowances 15 $ +/- Page 1, Line 1b 0402 Cost of goods sold 15 $ +/- Page 1, Line 2 0404 Net gain (loss) from Form 4797, Part II, line 17 15 $ +/- Page 1, Line 4 0405 Other income (loss) 15 $ +/- Page 1, Line 5 0406 Total income (loss) 15 $ +/- Page 1, Line 6 04MCV Merchant Card Payments Verified (prior year only) 15 $ +/- Page 1, Line 1a Verify the figures to ensure the taxpayer used the correct line to report income amounts.

# Section 05 - Deduction

3.12.217.7 (01-01-2025) Section 05 - Deduction Section 05 is the deduction Lines (7-22) on Form 1120-S. Listed below are the fields displayed in Section 05 of Form 1120-S: Field Designator Field Title Field Length Dollars/Cents Positive /Negative Location on Form 1120-S 0507 Compensation of officers 15 $ +/- Page 1, Line 7 0508 Salary and wages (less employment credits) 15 $ +/- Page 1, Line 8 0509 Repairs and maintenance 15 $ +/- Page 1, Line 9 0510 Bad debts 15 $ +/- Page 1, Line 10 0511 Rents 15 $ +/- Page 1, Line 11 0512 Taxes and licenses 15 $ +/- Page 1, Line 12 0513 Interest 15 $ +/- Page 1, Line 13 0514 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return 15 $ +/- Page 1, Line 14 0515 Depletion 15 $ +/- Page 1, Line 15 0516 Advertising 15 $ +/- Page 1, Line 16 0517 Pension, profit- sharing, etc., plans 15 $ +/- Page 1, Line 17 0518 Employee benefit programs 15 $ +/- Page 1, Line 18 0519 Energy efficient commercial building deduction 15 $ +/- Page 1, Line 19 0520 Other deductions 15 $ +/- Page 1, Line 20 0521 Total deductions 15 $ +/- Page 1, Line 21 0522 Ordinary business income (loss) 15 $ +/- Page 1, Line 22 Verify the figures to ensure that the taxpayer used the correct line to report deductions.

# Section 06 - Tax, Payments, and Other Information

3.12.217.8 (01-01-2026) Section 06 - Tax, Payments, and Other Information Section 06 is the Tax and Payment lines on Form 1120-S. Listed below are the fields displayed in Section 06 of Form 1120-S: Field Designator Field Title Location on Form 1120-S 0623C Total Tax Taxpayer Line 23c, Page 1 06MCT Manual Correction Total Tax Line 23c, Page 1 (ERS Input Only) 0624A Estimated Tax Payment Line 24a, Page 1 0624B Tax Deposit Form 7004 Line 24b, Page 1 0624D Elective payment election amount from Form 3800 Line 24d, Page 1, 0624V Verified amount for Elective payment election Line 24d, Page 1, Verified ERS input only 0624Z Total Payments/Credits (total Lines 24a through 24d) Line 24z, Page 1, 0625 Estimated Tax Penalty Line 25, Page 1, 06BDR Amount owed/ Overpayment Taxpayer Line 26/27, Page 1, 0628A Credit Elect Amount Line 28a, Page 1, center 06B15 Form 8996 - QUAL-OP-FUND-CD Line 15 checkboxes Sch. B, Pg. 3, 06QOF Form 8996 - QUAL-OP-FUND-AMT Line 15, Sch. B, Pg. 3, 06B16 Digital asset checkbox Line 16 checkboxes Sch. B, Pg. 3, 06K4 Interest Income Line 4, Sch. K, Page 3 06AFC Form 6478, Biofuel Producer Credit Line 13f, Sch. K, Pg. 3 06K14 International Checkbox Line 14, Sch. K, Pg. 3 06TPD Distributions Line 16d,Sch. K, Pg. 4 06K18 Income/loss reconciliation Line 18, Sch. K, Pg. 4 06L7D Loans to Shareholders (EOY) Line 7d,Sch. L, Pg. 4, 06TAB Total Assets Beginning Line 15b,Sch. L, Pg. 4, 06TAE Total Assets Box F, Form 1120-S, Pg. 1 06LFS Loans from Shareholders (EOY) Line 19d, Sch. L, Pg. 4, 06CSE Capitol Stock (EOY) Line 22d, Sch. L, Pg. 4, 06ACE Additional Paid in Capital (EOY) Line 23d, Sch. L, Pg. 4, 06REE Retained Earnings (EOY) Line 24d, Sch. L, Pg. 4, 06TEE Travel and Entertainment Sch M-1 Expense Amount Line 3b, Sch M-1 06BBT Sch. M-2 Balance (BOY) Line 1A, Sch. M-2, Pg. 5, 06RRE Total Rental Real Estate Income Line 18a, Form 8825 06A01 Inventory at Beginning of Year Line 1, Form 1125-A 06A07 Inventory at End of Year Line 7, Form 1125-A Verify the figures to ensure that the taxpayer used the correct line to report tax, payments or other information.

# Field 0623C - Total Tax Taxpayer

3.12.217.8.1 (01-01-2026) Field 0623C - Total Tax Taxpayer Field 0623C is transcribed from Line 23c, Form 1120-S. Field 0623C is a 15-digits, positive only, dollars and cents field. Invalid Condition: The field length is more than 15-digits. The field is other than all numeric or blank. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Line 23c is blank or illegible and there are entries on Lines 23a, or 23b, then compute the total and enter in Field 0623C. Note: A significant entry is defined as any amount other than zero.

# Field 06MCT - Manual Correction Total Tax

3.12.217.8.2 (01-01-2026) Field 06MCT - Manual Correction Total Tax Field 06MCT is entered by ERS to manually compute total tax when the taxpayer uses a special computation to compute total tax Line 23C, Form 1120-S. Field 0623D is a 15-digits, positive only, dollars and cents field. Invalid Condition: The field length is more than 15-digits. The field is other than all numeric or blank. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Field 06MCT should only be used when instructed to do so when Error Code 660 generates.

# Field 0624A - Estimated Tax Payment

3.12.217.8.3 (01-01-2026) Field 0624A - Estimated Tax Payment Field 0624A is transcribed from Line 24a, Form 1120-S. Field 0624A is a 15-digits, positive only, dollars and cents field. Invalid Condition: The field length is more than 15-digits. The field is other than all numeric or blank. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 0624B - Tax Deposit Form 7004

3.12.217.8.4 (01-01-2026) Field 0624B - Tax Deposit Form 7004 Field 0624B is transcribed from Line 24b, Form 1120-S. Field 0624B is a 15-digits, positive only, dollars and cents field. Invalid Condition: The field length is more than 15-digits. The field is other than all numeric or blank. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 0624D (2023 & later) - Elective payment election (EPE)

3.12.217.8.5 (08-08-2026) Field 0624D (2023 & later) - Elective payment election (EPE) Field 0624D is transcribed from Form 1120-S, Line 24d (2023 form revision) and represents the taxpayer's amount of an Elective payment election (EPE) amount claimed on Form 3800, General Business Credit. Field 0624D is a 15-digit, positive only, dollars only field valid for tax periods 202301 and later. Invalid Condition: The field length is more than 15-digits. The field is other than all numeric or blank. The field is negative. The Tax Period is before 202301. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If there is an amount present in Field 0624D and a supporting Form 3800 is not attached and the amount claimed for EPE is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, then SSPND with Action Code 211 and correspond using Letter 118C. If No Reply to correspondence, then disallow the EPE credit shown and remove the amount claimed in Field 0624D. See IRM 3.12.217.23.32, Error Code 664, Elective payment election (EPE) Disallowance, for more information.

# Field 0624V - Elective payment election Verified Field

3.12.217.8.6 (01-01-2026) Field 0624V - Elective payment election Verified Field This field is for ERS Input Only and is used when the computer cannot correctly compute the Elective payment election (EPE) credit shown in Field 0624D. This field is valid for tax periods 202301 and later. Caution: This field will be used rarely. Field 0624V is a 15-digits, positive only, dollars only field valid for tax periods 202301 and later.

# Field 0624Z - Total Credits

3.12.217.8.7 (01-01-2026) Field 0624Z - Total Credits Field 0624Z is transcribed from the following Form 1120-S, lines: Line Year Revision 24z 2023 and later. 23d 2022, 2021, 2017 and prior. 23e 2018 -2020. Field 0624Z is 15 digits, positive only, dollars and cents field. Invalid Condition: The field length is more than 15 characters. The field is other than all numeric or blank. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the entry for Total Credits is blank or illegible then compute the total and enter in Field 0624Z as follows. Note: A significant entry is defined as any amount other than zero. Form Revision... If... Then... 2023 and later. Line 24z, is blank, Enter the combined total of Lines 24a, 24b, 24c, and 24d into Field 0624Z. 2022, 2021, 2017 and prior. Line 23d is blank Enter the combined total of Lines 23a, 23b, and 23c, into Field 0624Z. 2018 -2020 Line 23e is blank Enter the combined total of Lines 23a, 23b, and 23c, into Field 0624Z. If you are processing a 2022 Tax Year form and the taxpayer shows an "Elective Payment" or "Deemed Payment" by writing "IRA22DPE" on an attachment or on Form 1120-S, Line 23d dotted portion on prior year form revisions, refer to the instructions found at IRM 3.12.217.2.27, Elective Payment Election (EPE) and Credit Transfers. Note: Do not continue processing the return. Ensure that Action Code "450" is entered and the return with EPE is held for LB&I review.

# Field 06B15 - Form 8996, Qualified Opportunity Fund Code

3.12.217.8.8 (01-01-2026) Field 06B15 - Form 8996, Qualified Opportunity Fund Code Field 06B15 is transcribed from Form 1120-S, Schedule B, Line 15. Field 06B15 is a 1digit field valid for Tax Periods 201812 and later. Invalid Condition: The field is blank. An entry other than "0" , "1" , "2" , or "3" is present. The Tax Period is before 201812. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Schedule B, Line 15 box is "Yes" , Enter "1" in Field 06B15. Schedule B, Line 15 box is "No" , Enter "2" in Field 06B15. Both the "Yes" and "No" boxes are checked, Enter "3" in Field 06B15. Neither box is checked (e.g., blank), Enter "0" in Field 06B15. Tax Period is before 201812, Change entry to "0" in Field 06B15. Note: If Form 8996, Qualified Opportunity Fund, is attached, verify "6" is present in Field 01RPC.

# Field 06QOF - Form 8996, Qualified Opportunity Fund Amount

3.12.217.8.9 (01-01-2022) Field 06QOF - Form 8996, Qualified Opportunity Fund Amount Field 06QOF is transcribed from the dotted line area of Form 1120-S, Schedule B, Line 15. Field 06QOF is a 15-digits, positive only, dollars and cents field valid for Tax Periods 201812 and later. Invalid Condition: The field length is more than 15 characters. The field is not numeric. The field is negative. The Tax Period is before 201812. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the amount is negative, delete the field. If the Tax Period is before 201812, delete the field. Note: If Form 8996, Qualified Opportunity Fund, is attached, verify "6" is present in Field 01RPC.

# Field 06B16 - Digital Asset Checkbox

3.12.217.8.10 (01-01-2026) Field 06B16 - Digital Asset Checkbox Field 06B16 is transcribed from Form 1120-S, Schedule B, Line 16 (2023 and later form revisions). Field 06B16 is a 1-digit field valid for tax periods 202301 and later. Invalid Condition: An entry other than "0" , "1" , "2" , or "3" is present. The Tax Period is before 202301. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Schedule B, Line 16 box is "Yes" , Enter "1" in Field 06B16. Schedule B, Line 16 box is "No" , Enter "2" in Field 06B16. Both the "Yes" and "No" boxes are checked, Enter "3" in Field 06B16. Neither box is checked (e.g., blank), Enter "0" in Field 06B16. Tax Period is before 202301, Change entry to "0" in Field 06B16.

# Field 06K14 - International Checkbox

3.12.217.8.11 (01-01-2026) Field 06K14 - International Checkbox Field 06K14 is transcribed from Form 1120-S, Schedule K, Line 14. Field 06K14 is 1-digit field valid for Tax Periods 202112 and later. Invalid Condition: The field length is more than one character and not "0" or "1" . The Tax Period is before 202112. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202112, delete the field.

# Field 06RRE - Total Gross Rents

3.12.217.8.12 (01-01-2026) Field 06RRE - Total Gross Rents Field 06RRE is transcribed from Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, Line 18a. Field 06QOF is a 15-digits, positive only, dollars only field. Invalid Condition: The field length is more than 15-digits. The field is other than all numeric or blank. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the amount is negative, delete the field.

# Section 10 - Schedule D, Capital Gains and Losses, Form 8949, Sales and Other Dispositions of Capital Assets, and Form 8996, Qualified Opportunity Fund.

3.12.217.9 (01-01-2026) Section 10 - Schedule D, Capital Gains and Losses, Form 8949, Sales and Other Dispositions of Capital Assets, and Form 8996, Qualified Opportunity Fund. Section 10 has information from Form 1120-S, Schedule D, Capital Gains and Losses, Form 4797, Sales of Business Property, Form 8949, Sales and Other Dispositions of Capital Assets and Form 8996, Qualified Opportunity Fund. This section is not required. All fields in Section 10 are numeric only except Field 10Q14, which is alpha numeric. Section 10 is transcribed in dollars only except for Field 10Q15, which is transcribed in dollars and cents. Listed below are the fields displayed in Section 10 of Form 1120-S : Field Designator Field Title Line Location 10OID Qualified Opportunity Fund Investments Checkbox - Did the corporation dispose of any investment(s) in a qualified opportunity fund during this year? Above Part I, Schedule D 101AD Short Term Proceeds (Sales Price) Line 1a, Col. (d), Sch. D 101AE Short Term Cost or Other Basis Line 1a, Col. (e), Sch. D 101BD Short Term Proceeds (Sales Price) Line 1b, Col. (d), Sch. D 101BE Short Term Cost or Other Basis Line 1b, Col. (e), Sch. D 101BG Short Term Adjustments to Gain or Loss Line 1b, Col. (g), Sch. D 102D Short Term Proceeds (Sales Price) Line 2, Col.(d), Sch. D, 102E Short Term Cost or Other Basis Line 2, Col. (e), Sch. D 102G Short Term Adjustments to Gain or Loss Line 2, Col. (g), Sch. D 103D Short Term Cost or Other basis Line 3, Col. (d), Sch. D 103E Short Term Cost or Other basis Line 3, Col. (e), Sch. D 103G Short Term Adjustments to Gain or Loss Line 3, Col. (g), Sch. D 1005 Short Term Capital Gain or Loss from Form 8824 Line 3, Col. (g), Sch. D 108AD Long Term Proceeds (Sales Price) Line 8a, Col. (d), Sch. D 108AE Long Term Cost or Other Basis Line 8a, Col. (e), Sch. D 108BD Long Term Proceeds (Sales Price) Line 8b, Col. (d), Sch. D 108BE Long Term Cost or Other Basis Line 8b, Col. (e), Sch. D 108BG Long Term Adjustments to Gain or Loss Line 8b, Col. (g), Sch. D 109D Long Term Proceeds (Sales price) Line 9, Col. (d), Sch. D 109E Long Term Cost or Other Basis Line 9, Col. (e), Sch. D 109G Long Term Adjustments to Gain or Loss Line 9, Col. (g), Sch. D 1010D Long Term Proceeds (Sales price) Line 10, Col. (d), Sch. D 1010E Long Term Cost or Other Basis Line 10, Col. (e), Sch. D 1010G Long Term Adjustments to Gain or Loss Line 10, Col. (g), Sch. D 1013 Capital Gain Distributions Line 13, Sch. D 101AZ EIN from Description of Property Line 1, Col. (a), Form 8949, Part I 101BZ Date Acquired (YYYYMMDD) Line 1, Col. (b), Form 8949, Part I 101GZ Amount of Adjustment Line 1, Col. (g), Form 8949, Part I 101Z Form 8949 Indicator Line 1, Row 1, Form 8949, right margin of Part I 101AY EIN from Description of Property Line 1 Col. (a), Form 8949, Part 1 101CY Date Sold or Disposed of (YYYYMMDD) Line 1 Col. (c), Form 8949, Part 1 101GY Recaptured Amount Line 1 Col. (g), Form 8949, Part 1 101Y Form 8949 Indicator Line 1, Row 1, Form 8949, right margin of Part I 102AZ EIN from Description of Property Line 1, Col. (a), Form 8949, Part II 102BZ Date Acquired (YYYYMMDD) Line 1, Col. (b), Form 8949, Part II 102GZ Amount of Adjustment Line 1, Col. (g), Form 8949, Part II 102Z Form 8949 Indicator Line 1 (h), Form 8949, Part II, Right margin 102AY EIN from description of property Line 1 Col. (a), Form 8949, Part II 102CY Date sold or disposed of (YYYYMMDD) Line 1 Col. (c), Form 8949, Part II 102GY Recaptured amount Line 1 Col. (g), Form 8949, Part II 102Y Form 8949 Indicator Line 1, Row 1, Form 8949, Pat II right margin 10Q5 Checkbox - Did any investor dispose, in part or whole, of their equity in the fund? Line 5, Form 8996 10Q6 Reserved for Future Use Line 6, Form 8996 10Q7 Total qualified opportunity zone property held 6-month Line 7, Form 8996 - 2020 and later Line 6, Form 8996 - 2019 Line 5, Form 8996 - 2018 and 2017 10Q8 Total assets held 6-month Line 8, Form 8996 2020 and later Line 7, Form 8996 - 2019 Line 6, Form 8996 - 2018 and 2017 10Q10 Total qualified opportunity zone property held last day of tax year Line 10, Form 8996 2020 and later Line 9, Form 8996 - 2019 Line 8, Form 8996 - 2018 and 2017 10Q11 Total assets held last day of tax year Line 11, Form 8996 2020 and later Line 10, Form 8996 - 2019 Line 9, Form 8996 - 2018 and 2017 10Q14 Divide Line 14 by 2.0 (Line 14 is expressed as a decimal amount 0.00) Line 14, Form 8996 2020 and later Line 13, Form 8996 - 2019 Line 12, Form 8996 - 2018 and 2017 10Q15 Is Line 15 equal to or more than .90 Line 15, Form 8996 2020 and later Line 14, Form 8996 - 2019 Line 13, Form 8996 - 2018 and 2017 Field Errors will display for Section 10 whenever an invalid character is entered. Correct coding errors, transcription errors, and misplaced entries. If correct information is not available, delete the entry.

# Field 10OID - Qualified Opportunity Fund Investments

3.12.217.9.1 (01-01-2022) Field 10OID - Qualified Opportunity Fund Investments Field 10OID - Checkbox is transcribed from Form 1120-S, Schedule D, above Part I. Invalid Condition: Field 10OID is invalid if: The field length is more than one character. The checkbox values are not "1" , "2" or "3" . The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Form 1120-S, Schedule D Checkbox is marked "Yes" , Enter "1" in Field 10OID. Form 1120-S, Schedule D Checkbox is marked "No" , Enter "2" in Field 10OID. Both the "Yes" and "No" Checkboxes are marked, Enter "3" in Field 10OID. Neither box is checked, Delete Field 10OID.

# Fields 101AD, 101BE, 101AE, 101BD, & 101BE - Lines 1a, Col. (d) & (e) and Lines 1, Col. (b) & (e), Sch. D (Form 1120-S)

3.12.217.9.2 (01-01-2026) Fields 101AD, 101BE, 101AE, 101BD, & 101BE - Lines 1a, Col. (d) & (e) and Lines 1, Col. (b) & (e), Sch. D (Form 1120-S) Field 101AD through Field 101BE are transcribed from Form 1120-S, Schedule D, Part I Invalid Condition: Section 10 Field Errors will display if: The field is more than 15-digits. The field has a non-numeric character. The field is not positive Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Fields 101BG - Line 1b Col. (g), Sch. D (Form 1120-S)

3.12.217.9.3 (01-01-2026) Fields 101BG - Line 1b Col. (g), Sch. D (Form 1120-S) Field 101BG is transcribed from Form 1120-S, Schedule D, Line 1b Col. (g). Note: This field can be positive or negative. Invalid Condition: A Field Error will display if: The field is more than 15-digits. The field has a non-numeric character. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Fields 102D and 102E - Line 2, Col. (d) and Line 2, Col. (e), Sch. D (Form 1120-S)

3.12.217.9.4 (01-01-2026) Fields 102D and 102E - Line 2, Col. (d) and Line 2, Col. (e), Sch. D (Form 1120-S) Fields 102D and 102E are transcribed from Form 1120-S, Schedule D, Part I. Invalid Condition: The fields will display in error if: The field is more than 15-digits. The field has a non-numeric character. The field is not positive. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 102G - Line 2, Col. (g), Sch. D (Form 1120-S)

3.12.217.9.5 (01-01-2026) Field 102G - Line 2, Col. (g), Sch. D (Form 1120-S) Field 102G is transcribed from Form 1120-S, Schedule D, Line 2, Col. (g). Note: This field can be positive or negative. Invalid Condition: The field will display in error if: The field is more than 15-digits. The field has a non-numeric character. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Fields 103D and 103E - Line 3 Col. (d) and Line 3, Col. (e), Sch. D (Form 1120-S)

3.12.217.9.6 (01-01-2026) Fields 103D and 103E - Line 3 Col. (d) and Line 3, Col. (e), Sch. D (Form 1120-S) Fields 103D and 103E are transcribed from Form 1120-S, Schedule D, Part I. Invalid Condition: The fields will display in error if: The field is more than 15-digits. The field has a non-numeric character. The field is not positive. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 103G - Line 3, Col. (g), Sch. D (Form 1120-S)

3.12.217.9.7 (01-01-2026) Field 103G - Line 3, Col. (g), Sch. D (Form 1120-S) Field 103G is transcribed from Form 1120-S, Schedule D, Line 3, Col. (g). Note: This field can be positive or negative. Invalid Condition: The field will display in error if: The field is more than 15-digits. The field has a non-numeric character. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 1005 - Line 5, Sch. D (Form 1120-S)

3.12.217.9.8 (01-01-2026) Field 1005 - Line 5, Sch. D (Form 1120-S) Fields 1005 is transcribed from Form 1120-S, Schedule D, Line 5. Invalid Condition: The fields will display in error if: The field is more than 15-digits. The field has a non-numeric character. The field is not positive. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Fields 108AD, 108AE, 108BD, and 108BE - Line 8a Col. (d) & (e) and Line 8b Col. (d) & (e), Sch. D (Form 1120-S)

3.12.217.9.9 (01-01-2026) Fields 108AD, 108AE, 108BD, and 108BE - Line 8a Col. (d) & (e) and Line 8b Col. (d) & (e), Sch. D (Form 1120-S) The following fields are transcribed from Form 1120-S, Schedule D, Part I. Field Transcription Line 108AD 8a, Column (d), Schedule D, Part II 108AE 8a, Column (e), Schedule D, Part II 108BD 8b, Column (d), Schedule D, Part II 108BE 8a, Column (e), Schedule D, Part II Invalid Condition: The fields will display in error if: The field is more than 15-digits. The field has a non-numeric character. The field is not positive. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 108G - Line 8, Col. (g), Sch. D (Form 1120-S)

3.12.217.9.10 (01-01-2026) Field 108G - Line 8, Col. (g), Sch. D (Form 1120-S) Field 108G is transcribed from Form 1120-S, Schedule D, Line 8, Col. (g). Note: This field can be positive or negative. Invalid Condition: The field will display in error if: The field is more than 15-digits. The field has a non-numeric character. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Fields 109D and 109E - Line 9, Col. (d) and Line 9, Col. (e), Sch. D (Form 1120-S)

3.12.217.9.11 (01-01-2026) Fields 109D and 109E - Line 9, Col. (d) and Line 9, Col. (e), Sch. D (Form 1120-S) Fields 109D and 109E are transcribed from Form 1120-S, Schedule D, Part II. Invalid Condition: The fields will display in error if: The field is more than 15-digitss. The field has a non -numeric character. The field is not positive. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 109G - Line 9, Col. (g), Sch. D (Form 1120-S)

3.12.217.9.12 (01-01-2026) Field 109G - Line 9, Col. (g), Sch. D (Form 1120-S) Field 109G is transcribed from Form 1120-S, Schedule D, Line 9, Col. (g). Note: This field can be positive or negative. Invalid Condition: The field will display in error if: The field is more than 15-digits. The field has a non-numeric character. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Fields 1010D and 1010E - Line 10, Col. (d) and Line 10, Col. (e), Sch. D (Form 1120-S)

3.12.217.9.13 (01-01-2026) Fields 1010D and 1010E - Line 10, Col. (d) and Line 10, Col. (e), Sch. D (Form 1120-S) Fields 1010D and 1010E are transcribed from Form 1120-S, Schedule D, Part II. Invalid Condition: The fields will display in error if: The field is more than 15-digits. The field has a non-numeric character. The field is not positive. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 1010G - Line 10, Col. (g), Sch. D (Form 1120-S)

3.12.217.9.14 (01-01-2026) Field 1010G - Line 10, Col. (g), Sch. D (Form 1120-S) Field 1010G is transcribed from Form 1120-S, Schedule D, Line 10, Col. (g). Note: This field can be positive or negative. Invalid Condition: The field will display in error if: The field is more than 15-digits. The field has a non-numeric character. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 1013 - Line 13, Sch. D (Form 1120-S)

3.12.217.9.15 (01-01-2026) Field 1013 - Line 13, Sch. D (Form 1120-S) Fields 1013 is transcribed from Form 1120-S, Schedule D, Line 13. Invalid Condition: The fields will display in error if: The field is more than 15-digits. The field has a non-numeric character. The field is not positive. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Field 101AZ and Field 102AZ - Form 8949, EIN from Description of Property

3.12.217.9.16 (01-01-2022) Field 101AZ and Field 102AZ - Form 8949, EIN from Description of Property Field 101AZ and Field 102AZ must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer. Invalid Condition - Field 101AZ and Field 102AZ are invalid if: The field length is not 9-digits. The EIN is not numeric. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201712, delete the field. If And Then Field 101AZ has an entry, Form 8949, Part I, Column (f) does not have a "Z" entered in the same row, Delete the EIN. Field 101AZ has an entry, The EIN is incomplete or invalid, Delete the EIN. Field 102AZ has an entry, Form 8949, Part II, Column (f) does not have a "Z" entered in the same row, Delete the EIN. Field 102AZ has an entry, The EIN is incomplete or invalid, Delete the EIN.

# Field 101AY and Field 102AY - Form 8949 - EIN from Description of Property

3.12.217.9.17 (01-01-2022) Field 101AY and Field 102AY - Form 8949 - EIN from Description of Property Field 101AY and Field 102AY must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer. Invalid Condition: Field 101AY and Field 102AY are invalid if: The field length is more than 9-digits. The EIN is not numeric. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors and misplaced entries. If the Tax Period is before 201712, delete the field. If And Then Field 101AY has an entry, Form 8949, Part I, Column (f) does not have a "Y" entered in that same row, Delete the EIN. Field 101AY has an entry, The EIN is incomplete or invalid, Delete the EIN. Field 102AY has an entry, Form 8949, Part II. Column (f) does not have a "Y" entered by the taxpayer in that same row, Delete the EIN. Field 102AY has an entry, The EIN is incomplete or invalid, Delete the EIN.

# Field 101BZ and Field 102BZ - Form 8949 - Date Acquired

3.12.217.9.18 (01-01-2022) Field 101BZ and Field 102BZ - Form 8949 - Date Acquired Field 101BZ and Field 102BZ must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer. Invalid Condition: Field 101BZ and Field 102BZ are invalid if: The field length is more than 8-digits (YYYYMMDD). The date acquired is other than numeric. The month is zero or greater than 12. The day range does not match the number of days in the month. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors and misplaced entries. If the Tax Period is before 201712, delete the field. If And Then Field 101BZ has an entry, Form 8949, Part I, Column (f) does not have a "Z" entered by the taxpayer in that same row, Delete the date. Field 101BZ has an entry, The date is incomplete (for example, only the year is present), Delete the date. 102BZ has an entry, Form 8949, Part II, Column (f) does not have a "Z" entered by the taxpayer in that same row, Delete the date. Field 102BZ has an entry, The date is incomplete (for example, only the year is present), Delete the date.

# Field 101CY and Field 102CY - Form 8949 - Date Sold or Disposed of

3.12.217.9.19 (01-01-2022) Field 101CY and Field 102CY - Form 8949 - Date Sold or Disposed of Field 101CY and Field 102CY must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer. Invalid Condition: Field 101CY and Field 102CY are invalid if: The field length is not 8-digits (YYYYMMDD). The field is not numeric. The month is zero or greater than 12. The day range does not match the number of days in the month. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201712, delete the field. If And Then Field 101CY has an entry, Form 8949, Part I, Column (f) does not have a "Y" entered by the taxpayer in that same row, Delete the date. Field 101CY has an entry, The date is not complete (for example, only the year is present), Delete the date. Field 102CY has an entry, Form 8949, Part II, Column (f) does not have a "Y" entered by the taxpayer in that same row, Delete the date. Field 102CY has an entry, The date is not complete (for example, only the year is present), Delete the date.

# Field 101GZ and Field 102GZ - Form 8949- Amount of Adjustment

3.12.217.9.20 (01-01-2022) Field 101GZ and Field 102GZ - Form 8949- Amount of Adjustment Field 101GZ and Field 102GZ must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I or Part II, Column (f) are coded "Z" by the taxpayer. Invalid Condition: Field 101GZ and Field 102GZ are invalid if: The field length is more than 15-digits. The amount is other than numeric, positive, and dollars only. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If a field is negative, delete the field. If the Tax Period is before 201712, delete the field.

# Field 101GY and Field 102GY - Recaptured Amount

3.12.217.9.21 (01-01-2022) Field 101GY and Field 102GY - Recaptured Amount Field 101GY and Field 102GY must be entered if Form 8949, Sales and Other Dispositions of Capital Assets, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer. Invalid Condition: Field 101GY and Field 102GY are invalid if: The field length is more than 15-digits. The field is other than numeric, positive, and dollars only. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If a field is negative, delete the field. If the Tax Period is before 201712, delete the field.

# Field 101Z and Field 102Z - Form 8949 Indicator, Line 1

3.12.217.9.22 (01-01-2022) Field 101Z and Field 102Z - Form 8949 Indicator, Line 1 An indicator is entered in Field 101Z and Field 102Z when Form 8949, Sales and Other Dispositions of Capital Assets, Part I or Part II has more than one row with a "Z" present in Column (f). Code & Edit will edit "Z-1" in the right margin of Part I or Part II, Line 1, Row 1. Invalid Condition: Field 101Z and Field 102Z are invalid if: The field length is more than one character. The field is not "blank," "0" , or "1" (more than one row with a "Z" in Column (f)). The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201712, delete the field.

# Field 101Y and Field 102Y - Form 8949 Indicator

3.12.217.9.23 (01-01-2022) Field 101Y and Field 102Y - Form 8949 Indicator An indicator is entered in Field 101Y and Field 102Y when Form 8949, Sales and Other Dispositions of Capital Assets, Part I or Part II has more than one row with a "Y" in Column (f). Code & Edit will edit "Y-1" in the right margin of Part I, Line 1, Row 1 or Part II, Line 1, Row 1. Invalid Condition: Field 101Y and 102Y are invalid if: The field length is more than one character. The field is other than "blank" (default) or "1" (more than one row with a "Y" in Column (f)). The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201712, delete the field.

# Field 10Q5 - Form 8996 Checkbox, Line 5

3.12.217.9.24 (01-01-2026) Field 10Q5 - Form 8996 Checkbox, Line 5 Field 10Q5 Checkbox is found on Form 8996, Qualified Opportunity Fund, Part I, Line 5. Form 8996 is valid for Tax Periods ending 201712 and later. The table below compares Form 8996 line numbers based on the tax year of the return: 2021 and later 2020 2019 2018 and 2017 Line 5 Line 5 Line 5 N/A Line 6 N/A N/A N/A Line 7 Line 7 Line 6 Line 5 Line 8 Line 8 Line 7 Line 6 Line 10 Line 10 Line 9 Line 8 Line 11 Line 11 Line 10 Line 9 Line 14 Line 14 Line 13 Line 12 Line 15 Line 15 Line 14 Line 13 Invalid Condition: Field 10Q5 is invalid if: The field length is more than one character. The Tax Period is before 201712. The checkbox values are not "1" , "2" , or "3" . Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201712, delete the field. If Then Form 8996, Part I, Line 5 Checkbox is marked "Yes" , Enter "1" in Field 10Q5. Form 8996, Part I, Line 5 Checkbox is marked "No" , Enter "2" in Field 10Q5. Both the "Yes" and "No" Checkboxes are marked, Enter "3" in Field 10Q5. Neither Checkbox is marked, Delete Field 10Q5.

# Field 10Q6 - Form 8996 Checkbox, Line 6 Reserved for Future Use

3.12.217.9.25 (01-01-2022) Field 10Q6 - Form 8996 Checkbox, Line 6 Reserved for Future Use Field 10Q6 - is a "Reserved" field transcribed from Form 8996, Line 6. Invalid Condition - Field 10Q6 is invalid if: The field length is more than one character. The value is not blank, "0" or "1" . The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201712, delete the field. If Then Form 8996, Line 6, box is "Yes" , Enter "1" in Field 10Q6. Box 6 is not checked, Delete Field 10Q6.

# Field 10Q7, Field 10Q8, Field 10Q10 and Field 10Q11 - Form 8996, Lines 7, 8, 10, and 11

3.12.217.9.26 (01-01-2026) Field 10Q7, Field 10Q8, Field 10Q10 and Field 10Q11 - Form 8996, Lines 7, 8, 10, and 11 Field 10Q7, Field 10Q8, Field 10Q10 and Field 10Q11 are entered from Form 8996, Qualified Opportunity Fund, Part II, Lines 7, 8, 10, and 11. Invalid Condition: Field 10Q7, Field 10Q8, Field 10Q10, and Field 10Q11 are invalid if: The field length is more than 15-digits. The fields are other than numeric, positive and dollars only. The Tax Period is before 201712. Correction procedures: Correct coding errors, transcription errors, and misplaced entries. If a field is negative, delete the field. If the Tax Period is before 201712, delete the field.

# Field 10Q14 - Form 8996, Line 14

3.12.217.9.27 (01-01-2026) Field 10Q14 - Form 8996, Line 14 Field 10Q14 is found on Form 8996, Qualified Opportunity Fund, Part III, Line 14 and is a percentage. It is expressed as a decimal amount (0.00). Note: The ERS screen will display 000 (the decimal is implied). For example, 50% will display as 050. Invalid Condition: Field 10Q14 is invalid if: The field length is more than 3-digits. The field is not numeric. The value exceeds 1.00. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Field 10Q14 is more than 3 characters (e.g., 0.456), Enter the first 3 characters (e.g., 0.45). Field 10Q14 is greater than 1 (e.g., 1.456), Delete the field. The Tax Period is before 201712, Delete the field.

# Field 10Q15 - Form 8996, Line 15

3.12.217.9.28 (01-01-2026) Field 10Q15 - Form 8996, Line 15 Field 10Q15 is found on Form 8996, Qualified Opportunity Fund, Part III, Line 15. Invalid Condition: Field 10Q15 is invalid if: The field length is more than 15-digits. The field is not numeric, positive and entered as dollars and cents. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the field is negative, delete the field. If the Tax Period is before 201712, delete the field.

# Section 12 - Form 4797, Sales of Business Property

3.12.217.10 (01-01-2026) Section 12 - Form 4797, Sales of Business Property Section 12 has data from Form 4797, Sales of Business Prop. See Exhibit 3.12.217-7, Form 4797 - Sales of Business Prop for ERS Field locations.

# Error Record Format Section 12

3.12.217.10.1 (01-01-2026) Error Record Format Section 12 Listed below are the fields displayed in Section 12 Form 1120-S: Field Designator Field Title Field Length Positive/ Negative Location on Form 4797, 121A Gross Proceeds from Sales or Exchanges from Form(s) 1099-B or 1099-S 15 + 1a 121B Gain due to partial dispositions of MACRS assets 15 + 1b 121C Total Amount of Loss from Partial Dispositions of MACRS assets 15 + 1c 1207 Total Gain or Loss Amount 15 +/- 7 1208 Non-recaptured net Section 1231 Losses from Prior Years Amount 15 + 8 1209 Total Gain Less Non-recapture Sect 1231 Losses Amount 15 + 9 1217 Total Ordinary Gain or Loss Amount 15 +/- 17 1218A Form 4684 Property Held Total Loss Amount 15 + 18a 1218B Form 4797 Gain or Loss Minus F4684 Property Held Total Loss Amount 15 +/- 18b Field Errors will display for Section 12 whenever an invalid character is entered. Correct coding errors, transcription errors, and misplaced entries. If correct information is not available, delete the entry.

# Field 121A - Line 1a, Form 4797

3.12.217.10.2 (01-01-2026) Field 121A - Line 1a, Form 4797 Fields 121A must be entered if Form 4797, Line 1a has an entry. Invalid Condition - Field 121A is invalid if: The Tax Period is before 202512. The field is not 15-digits. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the entry. If a field is negative, delete the entry. If Line 1a is illegible, delete the entry in Field 121A if present.

# Field 121B - Line 1b, Form 4797

3.12.217.10.3 (01-01-2022) Field 121B - Line 1b, Form 4797 Fields 121B must be entered if Form 4797, Line 1b has an entry. Invalid Condition - Field 121B is invalid if: The Tax Period is before 202512. The field is not 15-digits. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the field. If a field is negative, delete the field. If Line 1b is illegible, delete the entry in Field 121B if present.

# Field 121C - Line 1c, Form 4797

3.12.217.10.4 (01-01-2026) Field 121C - Line 1c, Form 4797 Fields 121C must be entered if Form 4797, Line 1c has an entry. Invalid Condition - Field 121C is invalid if: The Tax Period is before 202512. The field is not 15-digits. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the field. If a field is negative, delete the field. If Line 1c is illegible, delete the entry in Field 121C if present.

# Field 1207 - Line 7, Form 4797

3.12.217.10.5 (01-01-2026) Field 1207 - Line 7, Form 4797 Fields 1207 must be entered if Form 4797, Line 7 has an entry. Invalid Condition - Field 1207 is invalid if: The Tax Period is before 202512. The field is not 15-digits. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the field. If Line 7 is illegible, delete the entry in Field 1207 if present.

# Field 1208 - Line 8, Form 4797

3.12.217.10.6 (01-01-2026) Field 1208 - Line 8, Form 4797 Fields 1208 must be entered if Form 4797, Line 8 has an entry. Invalid Condition - Field 1208 is invalid if: The Tax Period is before 202512. The field is not 15-digits. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the field. If a field is negative, delete the field. If Line 8 is illegible, delete the entry in Field 1208 if present.

# Field 1209 - Line 9, Form 4797

3.12.217.10.7 (01-01-2026) Field 1209 - Line 9, Form 4797 Fields 1209 must be entered if Form 4797, Line 9 has an entry. Invalid Condition - Field 1209 is invalid if: The Tax Period is before 202512. The field is not 15-digits. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the field. If a field is negative, delete the field. If Line 9 is illegible, delete the entry in Field 1209 if present.

# Field 1217 - Line 17, Form 4797

3.12.217.10.8 (01-01-2026) Field 1217 - Line 17, Form 4797 Fields 1217 must be entered if Form 4797, Line 17 has an entry. Invalid Condition - Field 1217 is invalid if: The Tax Period is before 202512. The field is not 15-gigits. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the field. If Line 17 is illegible, delete the entry in Field 1217 if present.

# Field 1218A - Line 18a, Form 4797

3.12.217.10.9 (01-01-2026) Field 1218A - Line 18a, Form 4797 Fields 1218A must be entered if Form 4797, Line 18a has an entry. Invalid Condition - Field 1218A is invalid if: The Tax Period is before 202512. The field is not 15-digits. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the field. If a field is negative, delete the field. If Line 18a is illegible, delete the entry in Field 1218A if present.

# Field 1218B - Line 18b, Form 4797

3.12.217.10.10 (01-01-2026) Field 1218B - Line 18b, Form 4797 Fields 1218B must be entered if Form 4797, Line 18b has an entry. Invalid Condition - Field 1218A is invalid if: The Tax Period is before 202512. The field is not 15-digits. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202512, delete the field. If Line 18b is illegible, delete the entry in Field 1218B if present.

# Section 14 - Schedule N (Form 1120), Foreign Operations of U.S. Corporations

3.12.217.11 (01-01-2022) Section 14 - Schedule N (Form 1120), Foreign Operations of U.S. Corporations Section 14 has data from Schedule N (Form 1120), Foreign Operations of U.S. Corporations. See Exhibit 3.12.217-8, Schedule N - Foreign Operations of U.S. Corporations, for an example of Schedule N. Section 14 data is valid for Tax Periods beginning after 199912. Schedule N was not available for Tax Periods 199912 and prior.

# Error Record Format Section 14

3.12.217.11.1 (01-01-2022) Error Record Format Section 14 Listed below are the fields displayed in Section 14 of Form 1120-S : Field Designator Field Title Field Length Location on Form 1120-S 14Q01 Disregarded Entity 1 Schedule N, Line 1a (2020 and prior revisions) 14Q02 Number of Forms 8865 3 Schedule N, Line 2 14Q03 Direct/Indirect Interest 1 Schedule N, Line 3 (2020 and prior revisions) 14Q4A Reserved for Future Use 1 Schedule N, Line 4a (2020 and prior revisions) 14Q4B Number of Forms 5471 3 Schedule N, Line 4b 14Q05 Foreign Trust Distribution 1 Schedule N, Line 5 14Q6A Foreign Country Financial Account 1 Schedule N, Line 6a 14Q6B Foreign Country Code 2 Schedule N, Line 6b 14Q7A Extraterritorial Income (EI) Exclusion 1 Schedule N, Line 7a 14Q7B Number of Forms 8873 3 Schedule N, Line 7b 14Q7C Total extraterritorial income exclusion 15 Schedule N, Line 7c

# Field 14Q01 - Disregarded Entity

3.12.217.11.2 (01-01-2022) Field 14Q01 - Disregarded Entity Field 14Q01 is transcribed from Line 1a, Schedule N (Form 1120 - 2020 and prior revisions). Invalid Condition: Field 14Q01 is invalid if it is not blank or an entry other than "1" , "2" or "3" is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Schedule N, Line 1 box is "Yes" , Enter "1" in Field 14Q01. Schedule N, Line 1 box is "No" , Enter "2" in Field 14Q01. Both the "Yes" and "No" boxes are checked, Enter "3" in Field 14Q01. Neither box is checked, Delete Field 14Q01.

# Field 14Q02 - Number of Forms 8865

3.12.217.11.3 (01-01-2019) Field 14Q02 - Number of Forms 8865 Field 14Q02 is transcribed from the dotted line portion of Line 2, Schedule N (Form 1120). Invalid Condition: Field 14Q02 is invalid if it is not numeric (001 through 999) or blank. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Schedule N, Line 2 is blank and Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached, overlay with the correct number of forms.

# Field 14Q03 - Direct/Indirect Interest

3.12.217.11.4 (01-01-2022) Field 14Q03 - Direct/Indirect Interest Field 14Q03 is transcribed from the Line 3, Schedule N (Form 1120 - 2020 and prior revisions). Invalid Condition: Field 14Q03 is invalid if it is not all blank or an entry other than "1," "2" or "3" is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Schedule N, Line 3 box is "Yes" , Enter "1" in Field 14Q03. Schedule N, Line 3 box is "No" , Enter "2" in Field 14Q03. Both the "Yes" and "No" boxes are checked, Enter "3" in Field 14Q03. Neither box is checked, Delete Field 14Q03.

# Field 14Q4A - Reserved for Future Use

3.12.217.11.5 (01-01-2022) Field 14Q4A - Reserved for Future Use Field 14Q4A is transcribed from Line 4a, Schedule N (Form 1120 - 2020 and prior revisions). Invalid Condition: Field 14Q4A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Schedule N, Line 3 box is "Yes" , Enter "1" in Field 14Q4A. Schedule N, Line 3 box is "No" , Enter "2" in Field 14Q4A. Both the "Yes" and "No" boxes are checked, Enter "3" in Field 14Q4A. Neither box is checked, Delete Field 14Q4A. If Form 1120, U.S. Corporation Income Tax Return, Schedule N, Line 4a (2020 and prior revisions) is checked "Yes" or Forms 5471 are attached. GTSEC 03. Enter "2" in Field 03ADC and in the margin to the left of "Deductions" section of the return following "2-" .

# Field 14Q4B - Number of Forms 5471

3.12.217.11.6 (01-01-2019) Field 14Q4B - Number of Forms 5471 Field 14Q4B is transcribed from the dotted line portion of Line 4b, Schedule N (Form 1120). Invalid Condition: Field 14Q4B is invalid if it is not numeric (001 through 999) or blank. Correction Procedure: Correct coding errors, transcription errors, and misplaced entries. If Schedule N, Line 4b is blank and Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, is attached, overlay with the correct number of forms.

# Field 14Q05 - Foreign Trust Distribution

3.12.217.11.7 (01-28-2021) Field 14Q05 - Foreign Trust Distribution Field 14Q05 is transcribed from Line 5, Schedule N (Form 1120). Invalid Condition: Field 14Q05 is invalid if it is not all blank or an entry other than "1," "2" or "3" is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Schedule N, Line 5 box is "Yes" , Enter "1" in Field 14Q05. Schedule N, Line 5 box is "No" , Enter "2" in Field 14Q05. Both the "Yes" and "No" boxes are checked, Enter "3" in Field 14Q05. Neither box is checked, Delete Field 14Q05.

# Field 14Q6A - Foreign Country Financial Account

3.12.217.11.8 (01-28-2021) Field 14Q6A - Foreign Country Financial Account Field 14Q6A is transcribed from Line 6a, Schedule N (Form 1120). Invalid Condition: Field 14Q6A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Schedule N, Line 6a box is "Yes" , Enter "1" in Field 14Q6A. Schedule N, Line 6a box is "No" , Enter "2" in Field 14Q6A. Both the "Yes" and "No" boxes are checked, Enter "3" in Field 14Q6A. Neither box is checked, Delete Field 14Q6A.

# Field 14Q6B - Foreign Country Code

3.12.217.11.9 (01-01-2022) Field 14Q6B - Foreign Country Code Field 14Q6B is transcribed from Line 6b, Schedule N (Form 1120). Invalid Condition: Field 14Q6B is invalid if present and the code is not a valid Foreign Country Code. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then A foreign country is present on Schedule N, Line 6b, Enter the correct code in Field 14Q6B and to the left of Line 6b. Note: See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for a list of the valid two-digit Foreign Country Codes. Unable to determine the Foreign Country Code, Delete Field 14Q6B.

# Field 14Q7A - Extraterritorial Income Exclusion

3.12.217.11.10 (01-28-2021) Field 14Q7A - Extraterritorial Income Exclusion Field 14Q7A is transcribed from the left of Line 7a, Schedule N (Form 1120). Invalid Condition: Field 14Q7A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Schedule N, Line 7a box is "Yes" , Enter "1" in Field 14Q7A. Schedule N, Line 7a box is "No" , Enter "2" in Field 14Q7A. Both the "Yes" and "No" boxes are checked, Enter "3" in Field 14Q7A. Neither box is checked, Delete Field 14Q7A.

# Field 14Q7B - Number of Forms 8873

3.12.217.11.11 (01-01-2019) Field 14Q7B - Number of Forms 8873 Field 14Q7B is transcribed from the dotted line area of Line 7b, Schedule N (Form 1120). Invalid Condition: Field 14Q7B is invalid if it is not numeric (001 through 999) or blank. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Schedule N, Line 7b is blank and Form 8873, Extraterritorial Income Exclusion, is attached, overlay with the correct number of forms.

# Field 14Q7C - Total Extraterritorial Income Exclusion

3.12.217.11.12 (01-01-2019) Field 14Q7C - Total Extraterritorial Income Exclusion Field 14Q7C is transcribed from the dotted line area of Line 7c, Schedule N (Form 1120). Field 14Q7C can be positive or negative and is dollars only. Invalid Condition: Field 14Q7C is invalid if it is not blank or all numeric. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries.

# Sections 15-18 - Form 4136, Credit for Federal Tax Paid on Fuels

3.12.217.12 (01-01-2022) Sections 15-18 - Form 4136, Credit for Federal Tax Paid on Fuels This section has instructions for correcting Sections 15-18 Field Errors. Computer generated fields are described under the proper Error Code(s). Section 15 -18 has data from Form 4136, Credit for Federal Tax Paid on Fuels. All fields are transcribed in dollars and cents and must be positive. Each of these fields are 15 characters in length and must be numeric only. ISRP enters the Form 4136 information by inputting the specific credit reference number (CRN) the taxpayer shows on his Form 4136. All fields that represent CRNs are three characters in length and must be numeric only. Example: Taxpayer reports a credit of $4,500.00 on Line 3a and $600.00 on Line 5b, Form 4136. Section 15 will show the amount transcribed from Line 3a as 15A01, $4,500.00 with 15C01 as 360 Credit Reference Number (CRN) and amount transcribed as 15A02 $600.00 and 15C02 as 355 (CRN). In this scenario only Section 15 would appear since only two credits were claimed. Sections 15-18 could generate on an account if the taxpayer claimed as many as 43 different Federal Tax Paid on Fuels credits. Section 15 shows the first 12 credits transcribed, Section 16 will show credits 13-24, Section 17 will show credits 25-36, and Section 18 will show credits 37-43.

# Sections 15-18 Field Errors

3.12.217.12.1 (01-01-2024) Sections 15-18 Field Errors Listed below are the fields displayed in Sections 15-18 of Form 1120-S : Field Designator Field Title/Field Location on Form 4136 Field Length 15TG> Total Fuel Credits from Form 4136 15 15A01 First credit amount reported 15 15C01 First CRN for first credit amount reported 3 15A02 - 15A12 Second through twelfth credit amounts reported 15 15C02 - 15C12 Second through twelfth CRN(s) reported 3 16A01 Thirteenth credit amount reported (Section 16) 15 16C01 Thirteenth CRN reported (Section 16) 3 16A02 - 16A12 Fourteenth through twenty-fourth credit amounts reported 15 16C02 - 16C12 Fourteenth through twenty-fourth CRN(s) reported 3 17A01 Twenty-fifth credit amount reported (appears on Section 17) 15 17C01 Twenty-fifth CRN reported (Section 17) 3 17A02 - 17A12 Twenty-sixth through thirty-sixth credit amounts reported 15 17C02 - 17C12 Twenty-sixth through thirty-sixth CRN(s) reported 3 18A01 Thirty-seventh credit amount reported (Section 18) 15 18C01 Thirty-seventh CRN reported (Section 18) 3 18A02 - 18A07 Thirty-eighth through forty-third credit amounts reported 15 18C02 - 18C07 Thirty-eighth through forty-third CRN(s) reported 3 Invalid Condition: Section 15-18 field errors will display if: The field is not numeric. An entry exceeds the maximum field length. A "positive only" field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Make necessary corrections. If a "positive only" field is negative, delete the field. Current valid Credit Reference Numbers with their valid periods are listed below: CRN Valid Tax Periods 306 200601 and later 307 200601 and later 309 200601 and later 310 200601 and later 324 199701 and later 346 199801 and later 347 199801 and later 350 199801 and later 353 All 354 All 355 All 360 All 362 199401 and later 369 199401 and later 377 199301 - 200511 or after 200712 388 200501 and later 390 200501 and later 393 200501 - 201211 394 200501 - 201211 395 200501 - 200708 411 200601 and later 412 200601 and later 413 200601 and later 414 200601 and later 415 200601 and later 416 200601 and later 417 200601 and later 418 200601 and later 419 200610 and later 420 200610 and later 421 200610 and later 422 200610 and later 423 200610 and later 424 200610 and later 425 200610 and later 426 200610 and later 427 200610 and later 428 200610 and later 429 200610 - 202311 430 200610 and later 431 200610 and later 432 200610 and later 433 200510 and later 434 200510 and later 435 200810 and later 436 200810 and later 437 200810 and later 440 202301 and later

# Section 20 (Reserved for Future Use)

3.12.217.13 (01-01-2024) Section 20 (Reserved for Future Use) Section 20 is Reserved for Future Use.

# Section 21 - Form 8941, Small Employer Health Insurance Premiums

3.12.217.14 (01-01-2022) Section 21 - Form 8941, Small Employer Health Insurance Premiums Listed below are the fields displayed in Section 21 of Form 8941: Field Designator Field Title Field Length Location Form 8941 21CBX SHOP Box 1 Box A 21LNB E.I. Number 9 Line B 21BXC Previous Form 8941 filed 1 Box C 21LN1 Number of Employees 4 Line 1 2102 Number of Full Time Employees 4 Line 2 2103 Average Annual Wages 15 Line 3 2104 Health Insurance Premiums Paid 15 Line 4 2105 Premiums You Would Have Paid 15 Line 5 2110 Premium Subsidies Paid 15 Line 10 2113 Number of Employees with Premiums Paid 4 Line 13 2114 Number of Full Time Employees with Premiums Paid 4 Line 14 2115 Credit for Small Employer Health Insurance Premiums 15 Line 15 2116 Sum of Lines 12 and 15 15 Line 16 Section 21 has information reported on Form 8941, Credit for Small Employer Health Insurance Premiums. This section is not required. All fields in Section 21 are numeric only and are transcribed as dollars only. All fields in Section 21 must be positive. Invalid Condition: Section 21 field errors will display if: Non numeric characters are entered in Section 21 fields. Field 21CBX and Field 21BXC are blank or other than "0" through "3" . Field 21LN1 is all zeroes. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. To resolve errors for checkboxes, enter "0" if no boxes are checked, "1" if the "Yes" box is checked and "2" if the "No" box is checked.

# Section 22 - Form 5884-B, New Hire Retention Credit

3.12.217.15 (01-01-2023) Section 22 - Form 5884-B, New Hire Retention Credit Listed below are the fields displayed in Section 22 of Form 1120-S : Field Designator Field Title Field Length Location Form 5884-B 2210 Total of Line 9, columns (a) through (c) 15 Line 10 2211 Number of retained workers for whom receiving credit 7 Line 11 Section 22 has information reported on Form 5884-B, New Hire Retention Credit, and is valid from March 19, 2010, to December 31, 2010. This section is not required. All fields in Section 22 are numeric only. Field 2210 is a "dollars only" positive field. Field 2211 is a 7-digit field (not a dollar field). Invalid Condition: Section 22 field errors will display if: The field length for Field 2210 is more than 15-digits. Field 2210 is negative. The field length for Field 2211 is more than 7-digits. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If correct information is not available, delete the entry.

# Sections 23, 24, and 25 - Form 3800, General Business Credit

3.12.217.16 (01-01-2025) Sections 23, 24, and 25 - Form 3800, General Business Credit Sections 23, 24, and 25 are transcribed from Form 3800, General Business Credit, Part III, which may be attached to Form 1120-S to support the Elective payment election (EPE) on Line 24d (Field 0624D). See Exhibit 3.12.217-11, General Business Credit. The Elective payment election is valid for Tax Periods 202301 and later. All fields, except registration numbers and the indicator, are numeric, and transcribed in dollars only. Registration numbers are alpha numeric and the indicator field is numeric only. Note: Field 25RNI> is computer-generated and is not correctable. Form 3800, General Business Credit, Part III Column F, can be positive or negative (+/-). The remaining money fields must be positive (+) only. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the tax period is before 202301, delete the entry. If Form 3800, General Business Credit is not attached and the EPE credit claimed on Form 1120-S, line 24d is ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond using Letter 118C (unless it's apparent that Code & Edit has already done so). See IRM 3.12.217.23.32, Error Code 664 - Elective payment election (EPE) Disallowance, for more information.

# Section 23 - Fields Displayed

3.12.217.16.1 (01-01-2026) Section 23 - Fields Displayed Listed below are the fields displayed in Section 23 of Form 3800. Section 23: Field Designator Field Title Field Length Positive/Negative Location on Form 3800, Part III 231BB Form 7207 (registration number) 12 N/A Line 1b, column (b) (Valid 202301 and later) 231BF Form 7207 (Credit transfer election amount) 15 +/- Line 1b, column (f) (Valid 202301 and later) 231BG Form 7207 (Credit allowed after passive activity limit) 15 + Line 1b, column (g) (Valid 202301 and later) 231BH Form 7207 (Gross elective payment election (EPE) amount) 15 + Line 1b, column (h) (Valid 202301 and later) 231BJ Form 7207 (Net elective payment election (EPE) amount) 15 + Line 1b, column (j) (Valid 202301 and later) 231DB Form 3468 Part III, Line 1 (registration number) 12 N/A Line 1d, column (b) (Valid 202301 and later) 231DF Form 3468, Part III, Line 1 (Credit transfer election amount) 15 +/- Line 1d, column (f) (Valid 202301 and later) 231DG Form 3468, Part III, Line 1 (Credit allowed after passive activity limit) 15 + Line 1d, column (g) (Valid 202301 and later) 231FB Form 8835, Part II (registration number) 12 N/A Line 1f, column (b) (Valid 202301 and later) 231FF Form 8835, Part II (Credit transfer election amount) 15 +/- Line 1f, column (f) (Valid 202301 and later) 231FG Form 8835, Part II (Credit allowed after passive activity limit) 15 + Line 1f, column (g) (Valid 202301 and later) 231GB Form 7210, (registration number 12 N/A Line 1g, column (b) (Valid 202301 and later) 231GF Form 7210 (Credit transfer election amount) 15 +/- Line 1g, column (f) (Valid 202301 and later) 231GG Form 7210 (Credit allowed after passive activity limit) 15 + Line 1g, column (g) (Valid 202301 and later) 231GH Form 7210 (Gross elective payment election (EPE) amount) 15 + Line 1g, column (h) (Valid 202301 and later) 231GJ Form 7210 (Net elective payment election (EPE) amount) 15 + Line 1g, column (j) (Valid 202301 and later) 231LB Form 8864 (EPE registration number) 12 N/A 1l, Column (b), (Valid 202507 and later) 231LF Form 8864 (Credit Transfer (EPE) Election Amount) 15 + 1l, Column (f), (Valid 202507 and later) 231LG Form 8824 Biodiesel Credit Amount (After Passive Activity) 15 + 1l, Column (g), (Valid 202507 and later)

# Section 24 - Fields Displayed

3.12.217.16.2 (01-01-2025) Section 24 - Fields Displayed Listed below are the fields displayed in Section 24 of Form 3800: Field Designator Field Title Field Length Positive/Negative Location on Form 3800, Part III 241OB Form 3468, Part IV (registration number) 12 N/A Line 1o, column b (Valid 202301 and later) 241OG Form 3468, Part IV (Credit allowed after passive activity limit) 15 + Line 1o, column g (Valid 202301 and later) 241OH Form 3468, Part IV (Gross elective payment election (EPE) amount) 15 + Line 1o, column h (Valid 202301 and later) 241OJ Form 3468, Part IV (Net elective payment election (EPE) amount) 15 + Line 1o, column j (Valid 202301 and later) 241QB Form 7218 (registration number) 12 N/A Line 1q, column b (Valid 202401 and later) 241QF Form 7218 (Credit transfer election amount) 15 +/- Line 1q, column f (Valid 202401 and later) 241QG Form 7218 (Credit allowed after passive activity limit) 15 + Line 1q, column g (Valid 202401 and later) 241SB Form 8911, Part II (registration number) 12 N/A Line 1s, column b (Valid 202301 and later) 241SF Form 8911, Part II (Credit transfer election amount) 15 +/- Line 1s, column f (Valid 202301 and later) 241SG Form 8911, Part II (Credit allowed after passive activity limit) 15 + Line 1s, column g (Valid 202301 and later) 241UB Form 7213, Part II (registration number) 12 N/A Line 1u, column b (Valid 202301 and later) 241UF Form 7213, Part II (Credit transfer election amount) 15 +/- Line 1u, column f (Valid 202301 and later) 241UG Form 7213, Part II (Credit allowed after passive activity limit) 15 + Line 1u, column g (Valid 202301 and later) 241VB F3468, Part V (registration number) 12 N/A Line 1v, column b (Valid 202401 and later) 241VF F3468, Part V (Credit transfer election amount) 15 +/- Line 1v, column f (Valid 202401 and later) 241VG F3468, Part V (Credit allowed after passive activity limit) 15 + Line 1v, column g (Valid 202401 and later) 241XB Form 8933 (registration number) 12 N/A Line 1x, column b (Valid 202301 and later) 241XF Form 8933 (Credit transfer election amount) 15 +/- Line 1x, column f (Valid 202301 and later) 241XG Form 8933 (Credit allowed after passive activity limit) 15 + Line 1x, column g (Valid 202301 and later) 241XH Form 8933 (Gross elective payment election (EPE) amount) 15 + Line 1x, column h (Valid 202301 and later) 241XJ Form 8933 (Net elective payment election (EPE)amount) 15 + Line 1x, column j (Valid 202301 and later)

# Section 25 - Fields Displayed

3.12.217.16.3 (01-01-2025) Section 25 - Fields Displayed Listed below are the fields displayed in Section 25 of Form 3800: Field Designator Field Title Field Length Positive/Negative Location on Form 3800, Part III 25AAB Form 8936, Part V (registration number) 12 N/A Line 1aa, column b (Valid 202301 and later) 25AAG Form 8936, Part V (Credit allowed after passive activity limit) 15 + Line 1aa, column g (Valid 202301 and later) 25GGB F7211 (registration number) 12 N/A Line 1gg, column b (Valid 202401 and later) 25GGF F7211 (Credit transfer election amount) 15 +/- Line 1gg, column f (Valid 202401 and later) 25GGG F7211 (Credit allowed after passive activity limit) 15 + Line 1gg, column g (Valid 202401 and later) 254AB Form 3468, Part VI (registration number) 12 N/A Line 4a, column b (Valid 202301 and later) 254AF Form 3468, Part VI (Credit transfer election amount) 15 +/- Line 4a, column f (Valid 202301 and later) 254AG Form 3468, Part VI (Credit allowed after passive activity limit) 15 + Line 4a, column g (Valid 202301 and later) 254EB Form 8835, Part II (registration number) 12 N/A Line 4e, column b (Valid 202301 and later) 254EF Form 8835, Part II (Credit transfer election amount) 15 +/- Line 4e, column f (Valid 202301 and later) 254EG Form 8835, Part II (Credit allowed after passive activity limit) 15 + Line 4e, column g (Valid 202301 and later) 25IND Indicator that Part V, column b, has significant data 1 N/A Form 3800, Part III, (edited bottom right margin of Page 4) (Valid 202301 and later)

# Section 26 - Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

3.12.217.17 (01-01-2022) Section 26 - Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments This section has instructions for correcting Section 26 Field Errors. If the Tax Period is before 201901 then delete any fields present in Section 26.

# Section 26 Field Errors

3.12.217.17.1 (01-01-2024) Section 26 Field Errors Section 26 has information reported on Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments. Listed below are the fields displayed in Section 26 of Form 1120-S : Field Designator Field Title Field Length Dollars/Cents Pos/Neg Location on Form 8997 261A EIN 9 N/A N/A Part I, Row 1, Column a 261B Date 8 N/A N/A Part I, Row 1, Column b 261D Special gain code 1 N/A N/A Part I, Row 1, Column d 261E $ Amount 15 $ only + Part I, Row 1, Column e 261F $ Amount 15 $ only + Part I, Row 1, Column f 261IN Indicator 1 N/A N/A Edited right margin, Part I, Row 1 2612E $ Amount 15 $ only + Part I, Line 2, Column e (Column e total) 2612F $ Amount 15 $ only + Part I, Line 2, Column f (Column f total) 262A EIN 9 N/A N/A Part II, Row 1, Column a 262B Date 8 N/A N/A Part II, Row 1, Column b 262D Special gain code 1 N/A N/A Part II, Row 1, Column d 262E $ Amount 15 $ only + Part II, Row 1, Column e 262F $ Amount 15 $ only + Part II, Row 1, Column e 262IN Indicator 1 N/A N/A Edited right margin, Part II, Row 1 2622E $ Amount 15 $ only + Part II, Line 2, Column e (Column e total) 2622F $ Amount 15 $ only + Part II, Line 2, Column f (Column f total) 263A EIN 9 N/A N/A Part III, Row 1, Column a 263B Date 8 N/A N/A Part III, Row 1, Column b 263D Special gain code 1 N/A N/A Part III, Row 1, Column d 263E $ Amount 15 $ only + Part III, Row 1, Column e 263F $ Amount 15 $ only + Part III, Row 1, Column f 263IN Indicator 1 N/A N/A Edited right margin, Part III, Row 1 2632E $ Amount 15 $ only + Part III, Line 2, Column e (Column e total) 2632F $ Amount 15 $ only + Part III, Line 2, Column f(Column f total) 264A EIN 9 N/A N/A Part IV, Row 1, Column a 264B Date 8 N/A N/A Part IV, Row 1, Column b 264D Special gain code 1 N/A N/A Part IV, Row 1, Column d 264E $ Amount 15 $ only + Part IV, Row 1, Column e 264F $ Amount 15 $ only + Part IV, Row 1, Column f 264IN Indicator 1 N/A N/A Edited right margin, Part IV, Row 1 2642E $ Amount 15 $ only + Part IV, Line 2, Column e (Column e total) 2642F $ Amount 15 $ only + Part IV, Line 2, Column f (Column f total)

# Field 261A, Field 262A, Field 263A and Field 264A

3.12.217.17.2 (01-01-2022) Field 261A, Field 262A, Field 263A and Field 264A Field 261A, Field 262A, Field 263A and Field 264A - Form 8997 - Qualified Opportunity Fund (QOF) EIN. Invalid Condition: Field 261A, Field 262A, Field 263A and Field 264A are invalid if: The field length is more than 9-digits. The field is not numeric. The Tax Period is before 201901. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201901, delete the field.

# Field 261B, Field 262B, Field 263B and Field 264B

3.12.217.17.3 (01-01-2022) Field 261B, Field 262B, Field 263B and Field 264B Field 261B, Field 262B, Field 263B and Field 264B - Form 8997 - Date QOF Investment acquired. Invalid Condition: Field 261B, Field 262B, Field 263B and Field 264B are invalid if: The field length is not 8 characters. The field is not numeric. The month is zero or more than 12. The day range does not match the number of days in the month. The Tax Period is before 201901. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201901, delete the field.

# Field 261D, Field 262D, Field 263D and Field 264D

3.12.217.17.4 (01-01-2025) Field 261D, Field 262D, Field 263D and Field 264D Field 261D, Field 262D, 263D, and Field 264D - Form 8997 - Special gain code. Invalid Condition: Field 261D, Field 262D, and Field 264D are invalid if: The field length is more than one character. The field is not "blank " , or "A" through "H," or "J" through "Z" . The Tax Period is before 201901. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201901, delete the field.

# Field 26IN, Field 262IN, Field 263IN and Field 264IN

3.12.217.17.5 (01-01-2022) Field 26IN, Field 262IN, Field 263IN and Field 264IN If any of Parts I, II, III or IV have more than one row with tax data present, an indicator is entered in Field 26IN (Part I), Field 262IN (Part II), Field 263IN (Part III), and Field 264IN (Part IV). Invalid Condition: Field 26IN, Field 262IN, Field 263IN and Field 264IN are invalid if: The field length is more than one character. The field is not "blank" , "0" or "1" (more than one row with data present). The Tax Period is before 201901. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201901, delete the field.

# All other Fields in Section 26

3.12.217.17.6 (01-01-2022) All other Fields in Section 26 Money Amount fields - Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments. Invalid Condition: Money amount fields can only be positive and are invalid if: The field length is more than 15 characters. The field is not dollars only. The Tax Period is before 201901. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201901, delete the field.

# Section 27 - Form 8283, Noncash Charitable Contribution

3.12.217.18 (01-01-2026) Section 27 - Form 8283, Noncash Charitable Contribution Section 27 has data from Form 8283, Noncash Charitable Contribution. See Exhibit 3.12.217-13, Form 8283, Noncash Charitable Contribution for ERS Field locations.

# Error Record Format Section 27

3.12.217.18.1 (01-01-2026) Error Record Format Section 27 Listed below are the fields displayed in Section 27 Form 8283: Field Designator Field Title Field Length Line Location 27DPT Information on Donated Property Type Check boxes 1 2 273AC Donated Property Appraised Fair Market Value 15 3A(c) 273AD Donated Property Date Acquired by Donor 6 3A(d) 273AF Donated Property Donor's Cost or Adjusted Basis 15 3A(f) 27ASI Appraiser Signature Indicator 1 Part IV 27AIN Appraiser Identifying Number 9 Part IV 27QDD Qualified Organization Property Received Date 8 Part V 27COE Charitable Organization Employer Identification Number 9 Part V 27COS Charitable Organization Authorized Signature Indictor 1 Part V 27MFI Multiple Form 8283 Attached Indicator 1 Part V, Lower Right Corner Pg. 2

# Field 27DPT- Line 2, Information on Donated Property Type (Form 8283)

3.12.217.18.2 (01-01-2026) Field 27DPT- Line 2, Information on Donated Property Type (Form 8283) Fields 27DPT must be entered if Form 8283, Line 2 has an entry. Invalid Condition - Field 27DPT is invalid if: The Tax Period is before 202512. The field is not one Alpha Numeric character. The field entry is not 0, 1, A, B, C, D, E, F, G, H, I, J, K, or L. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. The valid indicators assign to the boxes checked on Line 2, Form 8283 are: Marked Box Indicator Meaning None Marked 0 No box checked 2a A Art (contribution of $20,000 or more) 2b B Qualified conservation contribution 2b(1) 1 Certified historic structure 2c C Art (contribution of less than $20,000) 2d D Other real estate 2e E Equipment 2f F Securities 2g G Collectibles 2h H Intellectual property 2i I Vehicles 2j J Clothing and household items 2k K Digital assets 2l L Other Correct Field 27DPT as follows: If... And... Then... Tax Period is before 202512, Field 27DPT has an entry, Delete the entry in Field 27DPT. Field 27DPT is blank, Line 2 has a box marked, Enter the indicator in Field 02DPT according to b) above. Field 27DPT has an indicator present, The indicator is not listed in b) above Enter the correct indicator in Field 27DPT according to b) above. If Line 2 has no box marked, delete the entry in Field 27DPT Line 2 has multiple boxes marked, Enter "L" in Field 27DPT.

# Field 273AC - Line 3A(c), Donated Property Appraised Fair Market Value (Form 8283)

3.12.217.18.3 (01-01-2026) Field 273AC - Line 3A(c), Donated Property Appraised Fair Market Value (Form 8283) Fields 273AC must be entered if Form 8283, Line 3A(c) has an entry. Invalid Condition - Field 273AC is invalid if: The Tax Period is before 202512. The field is not 15-digits. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Correct Field 273AC as follows: If... And... Then... Tax Period is before 202512, Field 273AC has an entry, Delete the entry in Field 273AC. Field 273AC is blank, Line 3A(c) has an entry, Enter the Line 3A(c) amount in Field 273AC as dollars only. If Line 3A(c), Form 8283 is illegible, Delete the entry in Field 273AC if present.

# Field 273AD - Line 3A(d), Donated Property Date Acquired by Donor (Form 8283)

3.12.217.18.4 (01-01-2026) Field 273AD - Line 3A(d), Donated Property Date Acquired by Donor (Form 8283) Fields 273AD must be entered if Form 8283, Line 3A(d) has an entry. Invalid Condition - Field 273AD is invalid if: Tax Period is before 202512. Field is not 6 alpha numeric characters. Field entries are not 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, or V. Field is not in CCYYMM format or not "V." Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Correct Field 273AD as follows: If... And... Then... Tax Period is before 202512, Field 273AD has an entry, Delete the entry in Field 273AD. Field 273AD is blank, Line 3A(d) has an entry, Enter the Line 3A(d) entry in Field 273AD in CCMMYY format. "V" is present in Field 273AD Positions 2 through 6 have an entry other than zero. Delete the entries in positions 2 through 6. Field 273AD is "00000V" Delete the zeros in Field 273AD. If Line 3A(d), Form 8283 is illegible, Delete the entry in Field 273AD if present.

# Field 273AF - Line 3A(f), Donated Property Donor's Cost or Adjusted Basis (Form 8283)

3.12.217.18.5 (01-01-2026) Field 273AF - Line 3A(f), Donated Property Donor's Cost or Adjusted Basis (Form 8283) Fields 273AF must be entered if Form 8283, Line 3A(f) has an entry. Invalid Condition - Field 273AF is invalid if: The Tax Period is before 202512. The field is not 15-digits. The field is negative. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Correct Field 273AF as follows: If... And... Then... Tax Period is before 202512, Field 273AF has an entry, Delete the entry in Field 273AF. Field 273AF is blank, Line 3A(c) has a money amount, Enter the Line 3A(f) amount in Field 273AF as dollars only. If Line 3A(f), Form 8283 is illegible, Delete the entry in Field 273AF if present.

# Field 27ASI - Appraiser Signature Indicator (Form 8283)

3.12.217.18.6 (01-01-2026) Field 27ASI - Appraiser Signature Indicator (Form 8283) Fields 27ASI must be entered if Form 8283, Part IV appraiser signature is present. Invalid Condition - Field 27ASI is invalid if: The Tax Period is before 202512. The field is not one digit. The field is not 0 or 1. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. The valid Appraiser Signature Indicators are: Indicator Meaning 0 No signature provided. 1 Signature Provided. Correct Field 27ASI as follows: If... And... Then... Tax Period is before 202512, Field 27ASI has an entry, Delete the entry in Field 27ASI. Field 27ASI is blank, Part IV, Form 8283 has an appraiser signature present, Enter 1 in Field 27ASI.

# Field 27AIN - Appraiser Identifying Number (Form 8283)

3.12.217.18.7 (01-01-2026) Field 27AIN - Appraiser Identifying Number (Form 8283) Fields 27AIN must be entered if Form 8283, Part IV identifying number is present. Invalid Condition - Field 27AIN is invalid if: The Tax Period is before 202512. Field length are not 9-digits. The field entries is not 0 through 9. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Correct Field 27AIN as follows: If... And... Then... Tax Period is before 202512, Field 27AIN is not all zeros, Delete the entry in Field 27AIN. Field 27AIN is blank, Part IV, Form 8283 has appraiser identifying number present, Enter the entry in Field 3ASI. If the entry in Part IV, Form 8283 for appraiser identifying number present, is illegible or not 9 numeric characters, Delete the entry in Field field 27AIN if present.

# Field 27QDD - Qualified Organization Property Received Date (Form 8283)

3.12.217.18.8 (01-01-2026) Field 27QDD - Qualified Organization Property Received Date (Form 8283) Invalid Condition - Field 27QADD is invalid if: The Tax Period is before 202501. Field length are not digits. The field entries is not 0 through 9. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Correct Field 27QDAD as follows: If... And... Then... Tax Period is before 202512, Field 27QDD has an entry other than all zeros, Delete the entry in Field 27QDD. Field 27QDD is blank, Part V, Form 8283 has a date, Enter the date in Field 27QDD in YYYYMMDD format. Part V, Form 8283 received date is illegible, Delete the entry in Field 27QDD if present.

# Field 27COE - Charitable Organization Employer Identification Number (Form 8283)

3.12.217.18.9 (01-01-2026) Field 27COE - Charitable Organization Employer Identification Number (Form 8283) Fields 27COE must be entered if Form 8283, Part V has a Charitable Organization Employer Identification Number. Invalid Condition - Field 27COE is invalid if: Tax Period is before 202512. Field length are not 9-digits. The field entries is not 0 through 9. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Correct Field 27COE as follows: If... And... Then... Tax Period is before 202512, Field 27COE is not all zeros, Delete the entry in Field 27COE. Field 273COE is blank, Part V, Form 8283 has a Charitable Organization Employer Identification Number, Enter the entry in Field 27COE. If the entry in Part V, Form 8283 for Charitable Organization Employer Identification Number is illegible or not 9 numeric characters, Delete the entry in Field 27COE if present.

# Field 27COS - Charitable Organization Authorized Signature Indictor (Form 8283)

3.12.217.18.10 (01-01-2026) Field 27COS - Charitable Organization Authorized Signature Indictor (Form 8283) Fields 27COS must be entered if Form 8283, Part V Charitable Organization Authorized Signature is present. Invalid Condition - Fields 27COS is invalid if: The Tax Period is before 202512. The field is not one digit. The field is not 0 or 1. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. The valid Charitable Organization Authorized Signature Indicators are: Indicator Meaning 0 No signature provided. 1 Signature Provided. Correct Field 27ASI as follows: If... And... Then... Tax Period is before 202512, Field 27COS has an entry, Delete the entry in Field 27COS. Field 27COS is blank, Part V, Form 8283 has a Charitable Organization Authorized Signature, Enter 1 in Field 27COS.

# Field 27MFI - Multiple Form 8283 Attached Indicator (Form 8283)

3.12.217.18.11 (01-01-2026) Field 27MFI - Multiple Form 8283 Attached Indicator (Form 8283) Fields 27MFI must be entered if multiple Form 8283, Noncash Charitable Contributions, are attached. Invalid Condition - Fields 27MFI is invalid if: The Tax Period is before 202512. The field is not one digit. The field is not 0 or 1. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. The valid Charitable Organization Authorized Signature Indicators are: Indicator Meaning 0 Only one Form 8283 attached. 1 Multiple Form 8283 attached. Correct Field 27ASI as follows: If... And... Then... Tax Period is before 202512, Field 27MFI has an entry, Delete the entry in Field 27MFI. Only one Form 8283 is attached, Enter 0 in Field 27MFI. Multiple Form 8283 are attached, Enter 1 in Field 27MFI.

# Section 29 - Form 6252 - Installment Sale Income

3.12.217.19 (01-01-2024) Section 29 - Form 6252 - Installment Sale Income Listed below are the fields displayed in Section 29 of Form 1120-S : Field Designator Field Title Field Length Location on Form 6252 2901 Description of Property Indicator 1 Line 1 2902A Date Acquired (YYYYMMDD) 8 Line 2a 2902B Date Sold (YYYYMMDD) 8 Line 2b 2907 Subtract Line 6 from Line 5 (Net property Selling Price) 15 Part I, Line 7 2919 Gross Profit percentage (expressed as a decimal amount 0.0000) 5 Part II, Line 19 2921 Payments received during year 15 Part II, Line 21 2923 Payments received in prior years 15 Part II, Line 23 Section 29 has information reported on Form 6252, Installment Sale Income. This section is not required. Section 29 is valid for Tax Periods ending 201712 and later. See Exhibit 3.12.217-14, Form 6252 - Installment Sale Income.

# Field 2901 - Description of Property

3.12.217.19.1 (01-01-2022) Field 2901 - Description of Property Field 2901 is found on Form 6252, Installment Sale Income, Line 1. Invalid Condition: Field 2901 is invalid if: The field length is more than one character. The field is other than "0" , "1" , "2" , "3" or "4" . The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201712, delete the field. If Then "Timeshares or residential lots" is shown on Form 6252, Line 1, Enter "1" in Field 2901. "Sale by an individual of personal use property within the meaning of Section 1275(b)(3)" is shown on Form 6252, Line 1, Enter "2" in Field 2901. "Sale of any property used or produced in the trade or business of farming (within the meaning of Section 2032A(e)(4) or (5))" is shown on Form 6252, Line 1, Enter "3" in Field 2901. "Other" is shown on Form 6252, Line 1, Enter "4" in Field 2901. No description is given, Enter "0" in Field 2901.

# Field 2902A and Field 2902B - Date Acquired and Date Sold

3.12.217.19.2 (01-01-2022) Field 2902A and Field 2902B - Date Acquired and Date Sold Field 2902A and Field 2902B are found on Form 6252, Installment Sale Income, Line 2a and 2b. Invalid Condition: Field 2902A and Field 2902B are invalid if: The field length is more than 8 characters (YYYYMMDD). The field is not numeric. The month is zero or greater than 12. The day range does not match the number of days in the month. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 201712, delete the field.

# Field 2907, Field 2921 and Field 2923 - Net Property Selling Price, Payments received during year and Payments received in prior years

3.12.217.19.3 (01-01-2022) Field 2907, Field 2921 and Field 2923 - Net Property Selling Price, Payments received during year and Payments received in prior years Field 2907, Field 2921 and Field 2923 are transcribed from Form 6252, Installment Sale Income, Part I, Line 7, Part II, Line 21 and Part II, Line 23. Invalid Condition: Field 2907, Field 2921 and Field 2923 are invalid if: The field length is more than 15 characters. The field is not numeric, positive or entered in dollars and cents. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the field is negative, delete the field. If the Tax Period is before 201712, delete the field.

# Field 2919 - Gross profit percentage

3.12.217.19.4 (01-01-2022) Field 2919 - Gross profit percentage Field 2919 is transcribed from Form 6252, Installment Sale Income, Part II, Line 19. The gross profit percentage is expressed as a decimal (0.0000). Note: The ERS screen will display "00000" (the decimal is implied). For example, 50% will display as "05000" . Invalid Condition: Field 2919 is invalid if: The field length is more than 5 characters. The field is not numeric. The value exceeds 1.0000. The Tax Period is before 201712. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If Then Field 2919 is more than 5 characters (e.g., 0.45678), Enter the first 5 characters (e.g., 0.4567). Field 2919 is greater than 1 (e.g., 1.4567), Delete the field. The Tax Period is before 201712, Delete the field.

# Section 31 - Form 8936 Schedule A, Clean Vehicle Credit Amount

3.12.217.20 (01-01-2025) Section 31 - Form 8936 Schedule A, Clean Vehicle Credit Amount Section 31 is transcribed from Form 8936 Schedule A, Clean Vehicle Credit Amount, which may be attached to Form 1120-S for tax periods 202301 and later. See Exhibit 3.12.217-15, Form 8936 Schedule A, Clean Vehicle Credit Amount. "Vehicle Identification Number" (VIN) fields are alpha/numeric with 17 characters. "Placed in Service" date is 8-digits in YYYMMDD format. All money amounts are positive (+) only and are transcribed in dollars only. If more than two Schedule A's are filed, an indicator will be edited on the second Form 8936 Schedule A, Clean Vehicle Credit in the bottom right margin. Listed below are the fields displayed in Section 31 of Form 8936 Schedule A, Clean Vehicle Credit Amount: Field Designator Field Title Field Length Positive/Negative Location on Form 8936 Schedule A 311VI Vehicle identification number (VIN) 17 N/A First Schedule A, Part I, Line 2 311DT Placed in service date 8 N/A First Schedule A, Part I, Line 3 31109 Tentative credit amount 15 + First Schedule A, Part II, Line 9 31111 Credit amount for business use of new clean vehicle 15 + Part II, Line 11 31117 Smaller of Line 15 or Line 16 15 + First Schedule A, Part IV, Line 17 31126 Smaller of Line 24 or Line 25 15 + First Schedule A, Part V, Line 26 312VI Vehicle Identification Number (VIN) 17 N/A Second Schedule A, Part I, Line 2 312DT Placed in service date 8 N/A Second Schedule A, Part I, Line 3 31209 Tentative credit amount 15 + Second Schedule A, Part II, Line 9 31211 Credit amount for business use of new clean vehicle 15 + Part II, Line 11 31217 Smaller of Line 15 or Line 16 15 + Second Schedule A Part IV, Line 17 31226 Smaller of Line 24 or Line 25 15 + Second Schedule A Part V, Line 26 31RDV ERS input only - verified field for CVC amount 15 + N/A 313IN Indicator (More than 2 Schedule A's attached) 1 N/A Second Schedule A, (edited bottom right margin of page 3) Invalid Condition: The Tax Period is before 202301. Invalid characters are present in any of the fields listed above. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. if the taxpayer's entry contains invalid characters for the field, delete the field. If the Tax Period is earlier than 202301, DLSEC 31. If Form 8936 Schedule A, Clean Vehicle Credit Amount, is not attached and the Clean Vehicle Credit (CVC) credit claimed on Form 1120-S, Schedule K Line 13g is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then correspond for the missing Form 8936 Schedule A, Clean Vehicle Credit. See IRM 3.12.217.23.31, Error Code 663 - Clean Vehicle Credit (CVC) Disallowance, for more information.

# Fields 311IN and 312IN - VIN Indicator

3.12.217.20.1 (01-01-2024) Fields 311IN and 312IN - VIN Indicator MeF sets an indicator showing validation results from interaction with the portal. The indicator is shown in Field 311IN and/or Field 312IN. A value of "0" says the VIN is valid. A value of "1" says the VIN is invalid. Invalid Condition: The field is more than one character. The field is not "blank," "0" or "1." The Tax Period is before 202301. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202301, delete the field.

# Field 313IN - More than two Forms 8936, Schedule A Indicator

3.12.217.20.2 (01-01-2024) Field 313IN - More than two Forms 8936, Schedule A Indicator An indicator will be entered in Field 313IN when Form 8936 Schedule A, Clean Vehicle Credit has more than two Schedule A's attached. Invalid Condition: The field is more than one character. The field is not "blank," "0" or "1" (more than two Schedule A's attached). The Tax Period is before 202301. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the Tax Period is before 202301, delete the field.

# Section 35 - Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties (2024 form revision)

3.12.217.21 (01-01-2025) Section 35 - Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties (2024 form revision) Section 35 is transcribed from Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, which may be attached to Form 1120-S for tax periods 202401 and later. See Exhibit 3.12.217-16, Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties. All fields are money amounts, positive (+) only and transcribed in dollars only. Listed below are the fields displayed in Section 35, Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties. Field Designator Field Title Field Length Dollars/Cents Positive/Negative Location on Form 4255 351AS F7207 Recapture of Net EPE and 100% Excessive payment. Add columns (l) and (n). 15 $ + Part 1, Line 1a, col (s) 351AT F7207 20% Excessive payment, Prevailing wage, & apprenticeship penalties. Add columns (o) and (p). 15 $ + Part 1, Line 1a, col (t) 351CS F7210 Recapture of Net EPE and 100% Excessive payment. Add columns (l) and (n). 15 $ + Part 1, Line 1c, col (s) 351CT F7210 20% Excessive payment, Prevailing wage, & apprenticeship penalties. Add columns (o) and (p). 15 $ + Part 1, Line 1c, col (t) 351DS F3468 Part IV Recapture of Net EPE and 100% Excessive payment. Add columns (l) and (n). 15 $ + Part 1, Line 1d, col (s) 351DT F3468 Part IV 20% Excessive payment, Prevailing wage, & apprenticeship penalties. Add columns (o) and (p). 15 $ + Part 1, Line 1d, col (t) 352AS F8933 Recapture of Net EPE and 100% Excessive payment. Add columns (l) and (n). 15 $ + Part 1, Line 2a, col (s) 352AT F8933 20% Excessive payment, Prevailing wage, & apprenticeship penalties. Add columns (o) and (p). 15 $ + Part 1, Line 2a, col (t) Invalid Condition: The field length is more than 15 characters. The field is not numeric and positive. The field is not dollars only. The tax period is before 202401. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the tax period is before 202401, then delete the entry. If a field is negative, then delete the entry.

# Section 60 - Direct Deposit Refund

3.12.217.22 (01-01-2026) Section 60 - Direct Deposit Refund Section 60 has data for Direct Deposit Refund for Form 1120-S filers. For tax Year 2025 and later filers can request direct deposit of refund on Form 1120-S by completing Lines 28c, 28d, and 28e. Form 8050, Direct Deposit of Corporate Tax refund is not valid for prior year returns.

# Error Record Format Section 60

3.12.217.22.1 (01-01-2026) Error Record Format Section 60 Listed below are the fields displayed in Section 60 of Form 1120-S : Field Designator Field Title Field Length Location on Form 1120-S 60RTN Routing Transit Number (RTN) 9 28c 60TDA Type Depositor Account (TDA) 1 28d 60DAN Depositors Account Number (DAN) 17 28e 60DDS Direct Deposit Code 1 Computer Generated

# Field 60RTN - Routing Transit Number (RTN)

3.12.217.22.2 (01-01-2026) Field 60RTN - Routing Transit Number (RTN) Field 60RTN is transcribed from Line 28c, Form 1120-S, U.S. Income Tax Return for an S Corporation. Invalid Condition: Field 60RTN is invalid if: The field is not 9-digits or blank. the first two digits are not: "01" through "12" or "21" through "32" Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If the entry in Field 60RTN is not valid, delete the entry.

# Field 60TDA - Type Depositor Account (TDA)

3.12.217.22.3 (01-01-2026) Field 60TDA - Type Depositor Account (TDA) Field 60TDA is transcribed from Line 28d, Form 1120-S, U.S. Income Tax Return for an S Corporation. Invalid Condition: Field 60TDA is invalid if: The field is not one Alpha character. The field entry is not C, S, or blank. The Direct Deposit meanings are: Depositor Type Meaning Blank Checking and Saving Box not checked C Checking Account S Savings Account Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. If both or neither box (Checking or Savings) is checked, enter "C" in Field 60TDA.

# Field 60DAN - Depositors Account Number (DAN)

3.12.217.22.4 (01-01-2026) Field 60DAN - Depositors Account Number (DAN) Field 60DAN is transcribed from Line 28e, Form 1120-S, U.S. Income Tax Return for an S Corporation. Field 60DAN is valid up to 17 characters. Invalid Condition: Field 60DAN is invalid if: The Field is not 17 alpha numeric characters. Field 60DAN is present but Field 60TDA is not present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Check Line 28e and take the following action: If Then The account number is valid (the entry has only numeric, alpha, hyphen or space), GTSEC 60 and enter a valid code in Field 60TDA. See IRM 3.12.217.22.3, Field 60TDA - Type Depositor Account (TDA). The account number is not valid, Delete the entry in Field 60DAN.

# Field 12DDS - Direct Deposit Code

3.12.217.22.5 (01-01-2026) Field 12DDS - Direct Deposit Code Field 12DDS is a computer-generated field and is not correctable.

# Math/Consistency Priority IV

3.12.217.23 (01-01-2024) Math/Consistency Priority IV These errors are displayed with the Error Code assigned to them for the 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" is displayed for the entry of a Clear Code on returns where the possibility exists that a change or correction may not be needed. All errors must be resolved by either eliminating the error, entering a Clear Code, or entering a Taxpayer Notice Code.

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

3.12.217.23.1 (03-19-2025) ♦Error Code 001 - Tax Year-Invalid Entry♦ Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 01RCD Received Date 8 01CCC Computer Condition Code 10 Invalid Condition: Error Code 001 generates when any of the following conditions are present: Computer Condition Code"G" is not present - The processing date is equal to or more than two years and 10 months after the Return Due Date or the Received Date (whichever is later) and Computer Condition Code "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 a Computer Condition Code "W" is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Do not send the returns in the following table to Statute Control for clearance. Instead, do the following: If Then Return is prepared by Compliance (e.g., IRC 6020(b)), Return is secured by Examination/Collections, including TEGE or TEGE Employee Plan (EP) Exam, Return has a TC 59X (Transaction Code), 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. 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 3.12.217.3.6(4), Field 01RCD - Received Date, to determine the Received Date. CCC "W" entered incorrectly, Delete CCC "W" from Field 01CCC. The return has a stamp that shows 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, SSPND with Action Code "310" . Prepare Form 4227, Intra-SC Reject or Routing Slip, to route to Statute Control. Exception: 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 and prior year original delinquent returns to bypass AM statute clearance and be processed. In addition, any 2021 and 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. If Statute Control requests a voided record, SSPND with Action Code "640" .

# ♦Error Code 002 - Name Control Mismatch♦

3.12.217.23.2 (01-01-2024) ♦Error Code 002 - Name Control Mismatch♦ Fields Displayed: Field Designator Field Title Field 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 generates when the Name Control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF). Correction Procedures: Before taking any more research steps to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This will ensure 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 coding errors, transcription errors, and misplaced entries. 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 an attachment are the same but differ from the underprint in Field 01NC, research IDRS using Command Code INOLES to determine the correct Name. If Then The Name on the return or attachment matches the Name Control on INOLES, Bring up the underprint. The Name Control on INOLES is different from the Name on the return or attachment, Research IDRS using Command Code NAMEB/NAMEE for a new EIN. If a new EIN is found, verify the Name Control using IDRS Command Code (CC) INOLES. If Then The Name Control on INOLES matches the Name on the return or attachment, Ensure the entity information matches the return. 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, send Letter 3875C, Missing or Incorrect EIN on Return - BMF/EPMF, as a non-suspense letter to the address on the return. Ensure the entity information matches the return. Note: Do not send Letter 3875C 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 shows the account has been "merged to" , or "merged from" , or The TIN on the return is the taxpayers SSN (check CC INOLEG). Multiple EINs are found, SSPND with Action Code "320" to Entity Control. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "MULTIPLE EINS" . INOLES shows a "Merge To" (MT) EIN, Research the "MT" EIN on 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 3875C, Missing or Incorrect EIN on Return - BMF/EPMF, on MT EIN cases. The "MT" EIN does not match the entity on the return or attachment, SSPND with Action Code "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 1120-S, research IDRS using Command Code 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, SSPND with Action Code "320" to route the return to Entity Control. 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 Command Code 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, SSPND with Action Code "320" to route to Entity Control. 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 or IRS Received Date, GTSEC 01. 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, Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. Notate on Form 3465, "Move payment to correct module upon completion and release freeze" . Write "FORM 3465 PREPARED" on the return, to the left of the entity section. Enter CCC "X" in Field 01CCC. The payment posted correctly, Enter correct EIN in Field 01EIN and on the return. Enter "C" in the Clear Code Field. Payment can't be found, Enter "C" in the Clear Code Field.

# ♦Error Code 003 - Check Digit Invalid♦

3.12.217.23.3 (01-01-2024) ♦Error Code 003 - Check Digit Invalid♦ Fields Displayed: Field Designator Field Title Field Length 01NC Name Control 4 01EIN Employer Identification Number 9 Invalid Condition: Error Code 003 generates 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 coding errors, transcription errors, and misplaced entries. 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 1120-S matches the EIN on CC NAMEB/NAMEE, Enter Name Control from CC NAMEB/NAMEE in Field 01NC. Research shows a different EIN, Verify the EIN and name on CC INOLES. Name Control on CC INOLES matches the name on the return or attachment, Overlay Field 01EIN with the EIN from CC INOLES. Enter the EIN from CC INOLES on the return. Send Letter 3875C , Missing or Incorrect EIN on Return - BMF/EPMF, as a non-suspense letter to the address on the return. Note: Do not send Letter 3875C 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 shows the account was "merged to" or "merged from", or • The TIN on the return is the taxpayers SSN (check CC INOLEG). Unable to find an EIN or more than one EIN is found, SSPND with Action Code "320" to Entity Control. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "NO RECORD OF EIN." Suspense Correction: Research IDRS using CC BMFOL to determine if payments posted incorrectly. If Then The payment posted to the wrong EIN, Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE." Write "FORM 3465 PREPARED" on the return, to the left of the entity section. Enter CCC "X" in Field 01CCC. The payment posted to the correct EIN, Enter the correct EIN in Field 01EIN and on the return. Payment can't be found, Enter "C" in the Clear Code Field.

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

3.12.217.23.4 (01-01-2024) ♦Error Code 004 - Name Control/EIN Validation♦ Fields Displayed: Field Designator Field Title Field Length CL Clear Code 1 01NC Name Control 4 >>>> Name Control Underprint 4 01EIN Employer Identification Number 9 Invalid Condition: Error Code 004 generates when any of the following conditions are present: The EIN is not present on the 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" shows that there is no account on the Master File, while a blank underprint shows that the NAP has not been accessed or was not operational. Correction Procedures: Before taking any more 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. Note: When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators correctly upon transmitting the ERS screen. Correct coding errors, transcription errors, and misplaced entries. 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 an attachment 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 the underprint. The Name Control on INOLES is different from the Name on the return or attachment, Research IDRS using Command Code NAMEB/NAMEE for a new EIN. If a new EIN is found, verify the Name Control using IDRS Command Code (CC) INOLES. If Then The Name Control on INOLES agrees with the Name on the return or attachment, Ensure the entity information matches the return. 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, send Letter 3875C, Missing or Incorrect EIN on Return - BMF/EPMF, as a non-suspense letter to the address on the return. Note: Do not send Letter 3875C 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 shows the account was "merged to" or "merged from" or The TIN on the return is the taxpayer's SSN (check CC INOLEG). Multiple EINs are found, SSPND with Action Code "320" to Entity Control. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "MULTIPLE EINS" . INOLES shows a "Merge To" (MT) EIN, Research the "MT" EIN on Command Code 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 with Action Code "320" to Entity Control. If the Name on the return or attachment does not agree with Name Control on INOLES or there is an indication of a name change on Form 1120-S, research IDRS using Command Code 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, SSPND with Action Code "320" to route the return to Entity Control. 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 Command Code 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, SSPND with Action Code "320" to route to Entity Control. 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, GTSEC 01. Enter the Entity Assignment Date in Field 01CRD. The Entity Assignment Date is not past the Return Due Date and Received Date, Continue processing. Research IDRS using CC BMFOL to determine if payments posted incorrectly: If Then The payment posted to the wrong EIN, Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE." Write "FORM 3465 PREPARED" on the return, to the left of the entity section. Enter CCC "X" in Field 01CCC. The payment posted correctly, Enter the correct EIN in Field 01EIN and on the return. Enter "C" in the Clear Code Field. Payment can't be found, Enter "C" in the Clear Code Field.

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

3.12.217.23.5 (01-01-2023) ♦Error Code 005 - Invalid Tax Year or Received Date♦ Fields Displayed: Field Designator Field Title Field Length CL Clear Code 1 01TXP Tax Period 6 01RCD Received Date 8 Invalid Condition: Error Code 005 generates 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 before the beginning of the Tax Period. Determine the Received Date using the following priority 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. Post Office, Foreign, or Private Delivery Service) Note: Use the postmark date stamped on the face of the return, if the envelope was 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 shows signature the date is invalid). Julian Date of the Document Locator Number (DLN) minus 10 days. Current date minus 10 days. If a return is faxed to another service area and then sent to Submission 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 Received and No Received Date

3.12.217.23.6 (01-01-2023) Error Code 006 - Remittance Received and No Received Date Fields Displayed: Field Designator Field Title Field Length RMIT> Remittance 16 01TXP Tax Period 6 01RCD Received Date 8 Invalid Condition: Error Code 006 generates when a remittance is received with the return and a Received Date is not present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. The format for Tax Period is "YYYYMM" and Received Date is "YYYYMMDD." If the Received Date is missing or illegible, determine the date in the order listed below: 1. IRS date stamp. 2. Legible U.S. Post Office postmark date or foreign postmark or an acceptable designated private delivery service. See IRM 3.10.72, Receiving, Extracting, and Sorting, for further details. Note: If an envelope is not attached use the postmark date stamped on the face of the return. 3. Service Center Automated Mail Processing System (SCAMPS) digital date. 4. Signature (Use a signature date only for the current year return; if it is a prior year return use the DLN Julian Date). 5. DLN Julian Date minus ten days. (MeF Form 1120-S use the Julian Date). 6. Current date minus ten days. If both U.S. Postal Service and private meter postmarks are present, honor the U.S. Postal Service postmark.

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

3.12.217.23.7 (01-01-2025) ♦Error Code 007- Received Date Earlier Than Tax Year♦ Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 01RCD Received Date 8 01CCC Computer Condition Code 10 Invalid Condition: Error Code 007 generates when the Received Date is earlier than the first day of the Tax Period/Year. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. 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 (e.g., 20240115 instead of 20250115), and other information (Julian Date, postmark date, or signature date) shows that the Received Date should be the current year, Change the Received Date to the current year in Field 01RCD. The return is an early filed "Final" return, Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP. Enter "F" in Field 01CCC. The return is not an early filed "Final" return, The Tax Period ending date is passed, 1) Change the Received Date to one day after the Tax Period ending date. For example, if the Tax Period is 202408, enter 20240801 in Field 01RCD The return is not an early filed "Final" return, The Tax Period ending is less than four months after the Received Date, SSPND with Action Code "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, Initiate correspondence for clarification of Tax Period. SSPND with Action Code "211" . Suspense Correction: If Then The taxpayer replies that the return is a "Final." Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP. Enter "F" in Field 01CCC. The taxpayer replies that the return is not a final return, SSPND with Action Code "480" until the end of the Tax Period given by the taxpayer. The taxpayer does not reply, or the reply is not adequate, Enter "3" in Field 01CCC. SSPND with Action Code "480" until the end of the Tax Period shown on the return.

# Error Code 008 - Tax Period Beginning

3.12.217.23.8 (01-01-2022) Error Code 008 - Tax Period Beginning Fields Displayed: Field Designator Field Title Field Length 01TXB Tax Period Beginning 8 01TXP Tax Period 6 01CCC Computer Condition Code 10 Invalid Condition: Error Code 008 generates when any of the following conditions are present: Tax Period Beginning is not present with a CCC "Y" or "F." Tax Period Beginning is after the Tax Period Ending. Tax Period Beginning is earlier than 12 months before Tax Period Ending. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare displayed fields with the return. If incorrect, overlay the screen with the correct information. If And Then The return is a "Final" or "Short Period," Tax Period Beginning is present on return, Enter Tax Period Beginning in YYYYMMDD format. The return is a "Final" or a "Short Period," The day is not present in the Tax Period Beginning, Enter "01" for the day. The return is a "Final" or a "Short Period," Tax Period Beginning is not valid, Determine a Tax Period Beginning date from the original Tax Period Ending date. The return is an "Initial" Short Period, Tax Period Beginning is not present, Use the "Date Incorporated" from Form 1120-S, Box E or the "S-election Effective Date" from Form 1120-S, Box A. The return is not a "Final" or "Short Period," Remove CCC "Y" or "F" from the field display. The return is not a "Final" or "Short Period," Tax Period Ending was corrected, Enter the Tax Period Beginning from the return or determine from the Tax Period Ending (one full year).

# ♦Error Code 010 - Amended Return "G" Coded♦

3.12.217.23.9 (01-01-2026) ♦Error Code 010 - Amended Return "G" Coded♦ Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 01NAI North American Industry Code 6 01CCC Computer Condition Code 10 01CRD Correspondence Received Date 8 S02DP Data Present S03DP Data Present S04DP Data Present S05DP Data Present S06DP Data Present S10DP Data Present S12DP Data Present S14DP Data Present S15DP Data Present S16DP Data Present S20DP Data Present S21DP Data Present S22DP Data Present S23DP Data Present S24DP Data Present S25DP Data Present S26DP Data Present S29DP Data Present S31DP Data Present Invalid Condition: Error Code 010 generates when: Any Condition Code other than "W" or "3" or "S" or "T" is present. NAICS-CD is present. Any section other than Section 01 is present Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. 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 shows amended, revised, supplemental, corrected or superseding, Research the applicable Command Code(s) e.g., BRTVU, BMFOL, SUMRY, and TXMOD to determine if information is the same as a 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 the same, SSPND with Action Code "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 return in error), Enter all data in Sections 02-22 as needed. Ensure 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. Due to a programming issue identified in Processing Year 2022 the following steps may need to be followed to resolve this Error Code: GTSEC 06 and transmit. Enter a "0" (zero) in Field 06B15 and transmit.

# ♦Error Code 014 - Missing Address Entries♦

3.12.217.23.10 (01-01-2023) ♦Error Code 014 - Missing Address Entries♦ Fields Displayed: Field Designator Field Title Field Length 02CON In-Care-of-Name 35 02FAD Foreign Address 35 02ADD 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 coding errors, transcription errors, and misplaced entries. 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 INOLES, NAMEB, NAMEE, ENMOD. If And Then A Major City Code is present, A street address is not available, Enter the City Name (spelled out, not in Major City format) in Field 02CTY. Enter the State Code in Field 02ST. The Major City Code is correct, The state is present, Delete Field 02ST. The ZIP Code can't be corrected from the information on the return, attachment or from research, DLSEC 02.

# ♦Error Code 015 - Foreign Address/State♦

3.12.217.23.11 (05-06-2022) ♦Error Code 015 - Foreign Address/State♦ Fields Displayed: Field Designator Field Title Field Length 02FAD Foreign Address 35 02ADD Address 35 02CTY City 22 02ST State 2 02ZIP ZIP Code 12 Invalid Condition: Error Code 015 generates when any of the following conditions are present: Field 02ST has an entry other than "." (period/space) when Field 02FAD present. Field 02ZIP has an entry when Field 02FAD is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare displayed fields with the return. If incorrect, overlay the screen with correct information. If Then A foreign address is present in Field 02FAD, Field 02ST must have "." (period/space). 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, Enter the foreign address in 02FAD. Note: If more space is required, continue entering the address in Field 02ADD. Field 02CTY must have 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 has a province name or abbreviation. (See Exhibit 3.12.217-24, Province/County Code-Canada Only). Field 02ST must have "." (period/space). Delete any entry in Field 02ZIP. A foreign address is not present on the return, Verify the address on the return is not a foreign address. SSPND with Action Code "610" . Renumber return with domestic DLN.

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

3.12.217.23.12 (01-01-2022) ♦Error Code 016 - ZIP Code/State Mismatch♦ Fields Displayed: Field Designator Field Title Field 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 generates when the ZIP Code is inconsistent with the Major City Code or State Code. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare displayed fields with the return. If incorrect, overlay the screen with the correct information. 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 an attachment, 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 (4th) and (5th) position. A ZIP Code can't be determined, Enter the 3 digits followed by "01" of the first ZIP Code listed for the applicable state found 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 can't be determined, Enter the name of the city in Field 02CTY. Enter the State Code in Field 02ST. The address is not in a major city, Enter the correct state abbreviation in Field 02ST. Enter the ZIP code in 02ZIP. APO/FPO Addresses - An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not a foreign address. The U.S. Postal Service set up 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, APO New York, NY 091XX would be converted to 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 017 - Reserved for Future Use

3.12.217.23.13 (01-01-2023) Error Code 017 - Reserved for Future Use This Error Code is no longer used and is in "Reserved for Future Use" status.

# Error Code 026 - Tax Period Mismatch

3.12.217.23.14 (01-01-2022) Error Code 026 - Tax Period Mismatch Fields Displayed: Field Designator Field Title Field Length CL Clear Code 1 01EIN Employer Identification Number 9 01TXP Tax Period 6 >>>> Tax Period Underprint 6 01CCC Computer Condition Code 10 S03NP Section 03 Not Present 03ADC Audit Code 3 03IRC Initial Return Code 1 Note: The literal "Section 03 Not Present" will display if there is no data in Section 03. Invalid Condition: Error Code 026 generates when The Tax Period underprint is present, CCC "F" or CCC "Y" is not present, and the Tax Period does not agree with the Entity Index File. Correction Procedures: Always drop your cursor to the bottom of the screen and transmit, before performing more research. Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. See Exhibit 3.12.217-20, Error Code 026 - Correction Procedures. Entity Transaction Codes: Following is a list of common Transaction Codes (TC) you need to be aware of when working EC 026. Transaction Code Meaning 016 Shows changes to entity data (e.g., filing requirements, fiscal year month. etc.) 052 Reversal of TC 053, 054 or 055 053 Form 1128, Application to Adopt, Change, or Retain a Tax Year, processed to accept change of accounting period 054 Form 1128, Application to Adopt, Change, or Retain a Tax Year, processed and accepted based on Rev. Proc 2006-46 055 Form 8716, Election to Have a Tax Year Other Than a Required Tax Year, was filed and the fiscal Tax Period was accepted 057 Computer generated when calendar year return posts and terminates IRC 444 election 058 Denied Form 8716, Election to Have a Tax Year Other Than a Required Tax Year 059 Rejection of Application for change in Accounting Period. Form 1128, Application to Adopt, Change, or Retain a Tax Year, was denied. 090 Small Business Election 091 Revoked Small Business Election 092 Reverses TC 090, 093, 095 and 097 093 Form 2553, Election by a Small Business Corporation, received 094 Sub-Chapter S-election denied 095 Sub-Chapter S-election pending 096 Sub-Chapter S-election terminated 097 Referral to Chief Counsel for approval Note: If the account shows there are prepaid credits or extensions and the return is for a short period, SSPND with Action Code "342" and attach Form 4227, Intra-SC Reject or Routing Slip, to have the credits or extensions moved to the correct period. Acceptable reasons for filing a short period include, but are not limited to the following: Statement that a change of accounting period was granted by the IRS or Approved Form 1128, Application to Adopt, Change or Retain a Tax Year. Statement of termination of S Status or revocation under IRC 1362 (see page 1, box 5, S-election termination or revocation is checked). Statement the corporation is coming out of consolidation. Statement the corporation is a qualified sub chapter S subsidiary. Accepted Form 8716, Election to Have a Tax Year Other Than a Required Tax Year. IRC 1398 Election. Second Short Year after IRC 1398 Election.

# Error Code 028 - Received Date Missing

3.12.217.23.15 (01-01-2023) Error Code 028 - Received Date Missing Fields Displayed: Field Designator Field Title Field Length 01RCD Received Date 8 01CCC Computer Condition Code 10 Invalid Condition: Error Code 028 generates when CCC "R" or "D" are present, and the Received Date (YYYYMMDD) is not present. Bypass on a "G" coded return. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. If CCC "R" or "D" are present, enter the Received Date in Field 01RCD. If CCC "R" or "D" are not on the return, delete the CCC "R" or "D" from Field 01CCC. If the return is not a CCC "G" coded return, (e.g., no indication that the return is Amended, Revised, Superseding, Duplicate) or nothing shows that this is other than the first return filed, GTSEC 02 and enter the data in the proper fields. When Error Code 010 generates, enter the proper fields and delete the entry in Field 01CCC. If the 1120-S return is not delinquent, delete the Computer Condition Code "R" . 1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ from the Return Due Date (RDD), despite Saturday, Sunday or Holiday extension dates. 2. If both U.S. Postal Service and private meter marks are present, honor the U.S. Postal Service marks. For further information, refer to IRM 3.10.72, Receiving, Extracting, and Sorting. 3. The legal due date is the 15th day of the third month after the Tax Period ends or the date granted by an approved extension of time to file. However, if the 15th is a Saturday, Sunday or holiday, the legal due date is the first workday thereafter. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ after the Return Due Date. If the return is correctly CCC "G" coded, enter the Received Date in 01RCD. Determine the date in the order listed below: 1. IRS date stamp. 2. Legible U.S. Post Office postmark date or foreign postmark or an acceptable designated private delivery service. For further information, see IRM 3.10.72, Receiving, Extracting, and Sorting. Note: If an envelope is not attached use the postmark date stamped on the face of the return. 3. Service Center Automated Mail Processing System (SCAMPS) digital date. 4. Revenue officer's signature date. 5. Signature date. Use the signature date if within the current year. For a prior year return, use the DLN Julian Date. 6. DLN Julian Date minus 10 days. (MeF Form 1120-S use the Julian Date) 7. Current date minus 10 days

# Error Code 030 - Penalty and Interest Code Check

3.12.217.23.16 (01-01-2022) Error Code 030 - Penalty and Interest Code Check Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 01RCD Received Date 8 03PRI Penalty or Interest Code 1 Invalid Condition: Error Code 030 generates when any of the following conditions are present: The Penalty and Interest Code of "1" is present, and the Received Date is on or before the Return Due Date, (2 months and 15 days) or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The Received Date is not present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. If the code is correct, for example, the taxpayer is paying penalty or interest and the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter the correct Received Date. See IRM 3.12.217.3.6(4), Field 01RCD - Received Date, for determining the correct Received Date. If the Received Date is correct and after the due ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, delete code "1" from Field 03PRI. If the correct Received Date is equal to or earlier than the due date, delete code "1" from Field 03PRI. If the Penalty and Interest Code is present and no Received Date is shown, determine the date and enter in Field 01RCD. See IRM 3.12.217.3.6(4), Received Date 01RCD for instructions. The "R" Condition Code, if present, will override the "1" Penalty and Interest Code where a delinquency penalty is concerned. If there is no indication of pre-computed Penalty and Interest, delete code "1" from Field 03PRI.

# Error Code 034 - Correspondence Received Date Check

3.12.217.23.17 (01-01-2022) Error Code 034 - Correspondence Received Date Check Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 01RCD Received Date 8 01CRD Correspondence Received Date 8 Invalid Condition: Error Code 034 generates when any of the following conditions are present: The Field 01CRD is earlier or the same as Field 01RCD or the Return Due Date. The Field 01CRD is later than the processing date. Note: Field 01RCD is required. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information. The format for Tax Period is "YYYYMM" and Received Date is "YYYYMMDD." A Correspondence Received Date (CRD) is determined from the date the reply was received in the Submission Processing Campus or from the entity assignment date found in the lower left-hand corner of the return. Refer to the return for the Correspondence Received Date. This can be verified by checking the stamped Received Date on the correspondence attached to the return. If 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. If "No Reply," enter CCC "3" in Field 01CCC to bypass the validity check.

# Error Code 062 - Reserved for Future Use

3.12.217.23.18 (01-01-2023) Error Code 062 - Reserved for Future Use This Error Code is no longer used and is in "Reserved for Future Use" status.

# Error Code 073 - CCC "3" is Present with Field 01CRD

3.12.217.23.19 (01-01-2022) Error Code 073 - CCC "3" is Present with Field 01CRD Fields Displayed: Field Designator Field Title Field Length 01CCC Computer Condition Code 10 01CRD Correspondence Received Date 8 Invalid Condition: Error Code 073 generates when Field 01CCC is "3" and a date was entered in Field 01CRD. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Review the return and attachments for IRS Correspondence or the entity assignment date. If IRS correspondence is attached, determine if a reply was received from the taxpayer. If a reply has been received from the taxpayer, delete CCC "3" from Field 01CCC. If the return is a "No Reply," delete the entry in Field 01CRD. If an entity assignment date is present and there is no reply to correspondence, delete the entry in Field 01CRD.

# Error Code 620 - Field 06AFC and Tax Period Check

3.12.217.23.20 (01-01-2026) Error Code 620 - Field 06AFC and Tax Period Check Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 06AFC Credit for Alcohol used as Fuel 15 Invalid Condition: Error Code 620 generates when Field 06AFC has an amount and the Tax Period is before 198010. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Verify Tax Period. If return is before 198010, delete the amount reported in Field 06AFC. Correct Tax Period as needed.

# Error Code 622 - Tax Period and CRN Check

3.12.217.23.21 (01-01-2024) Error Code 622 - Tax Period and CRN Check Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 15TG> Total Credit Computer Generated (Form 4136) 15 15A01-15A12 First through Twelfth Credit Amounts Reported on Form 4136 15 15C01 - 15C12 First through Twelfth CRN Reported on Form 4136 3 16A01 -16A12 Thirteenth through Twenty-fourth Credit Amounts on Form 4136 15 16C01 - 16C12 Thirteenth through Twenty-fourth CRN Reported on Form 4136 3 S17DP Section 17 Present S18DP Section 18 Present Invalid Condition: Error Code 622 generates when any of the following conditions are present: A CRN and amount are claimed for an ineligible Tax Period. See valid CRN and Tax Periods below: CRN Valid Period 306 200601 and later 307 200601 and later 309 200601 and later 310 200601 and later 318 199707 and prior 324 199701 and later 346 199801 and later 347 199801 and later 350 199801 and later 352 199401 - 200708 353 All 354 All 355 All 356 199801 - 200512 357 199801 - 200512 359 199801 - 200512 360 All 361 199401 - 200708 362 199401 and later 363 199801 - 200512 369 199401 and later 375 199301 - 200511 376 199301 - 200511 377 199301 - 200511 or after 200712 388 200501 and later 390 200501 and later 393 200501 - 201211 394 200501 - 201211 395 200501 - 200708 411 200601 and later 412 200601 and later 413 200601 and later 414 200601 and later 415 200601 and later 416 200601 and later 417 200601 and later 418 200601 and later 419 200610 and later 420 200610 and later 421 200610 and later 422 200610 and later 423 200610 and later 424 200610 and later 425 200610 and later 426 200610 and later 427 200610 and later 428 200610 and later 429 200610 - 202311 430 200610 and later 431 200610 and later 432 200610 and later 433 200510 and later 434 200510 and later 435 200810 and later 436 200810 and later 437 200810 and later 440 202301 and later Claim amount is present, CRN is not present. A CRN is present, but no coordinating amount is present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Refer to the return for the correct Tax Period and to determine if the entry is a valid or misplaced entry. If the Tax Period is incorrect, make the necessary changes in the correct format (YYYYMM). Verify the CRN and credit amount is claimed for a valid Tax Period. If the CRN is invalid, delete the entries from the CRN and credit amount fields. Delete the entry if it is determined to be a misplaced entry.

# Error Code 624 - 0624A, 0625 or 0628A and Tax Period Check

3.12.217.23.22 (01-01-2026) Error Code 624 - 0624A, 0625 or 0628A and Tax Period Check Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 0624A Estimated Tax Payments 15 0625 Estimated Tax Penalty 15 06BDR Balance Due/Overpayment 15 0628A Credit Elect Amount 15 Invalid Condition: Error Code 624 generates when any of the following conditions are present: There are significant entries in Estimated Tax Payments. Estimated Tax Penalty, or Credit Elect Payment and the Tax Period is 198912 or prior. Note: A significant entry is defined as any amount other than zero. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Refer to the return for the correct Tax Period and determine if the entry in Field 01TXP is valid. If the Tax Period is incorrect, make the necessary changes, in the correct format (YYYYMM). Check the entries in Field 0624A, Field 0625, and Field 0628A to ensure the entries are valid or are not misplaced entries. If there are misplaced entries in the above-mentioned fields, correct or delete the entries.

# Error Code 628 - CCC "F" and Credit Elect Payments

3.12.217.23.23 (01-01-2026) Error Code 628 - CCC "F" and Credit Elect Payments Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 01CCC Computer Condition Code 10 06BDR Balance Due/Overpayment 15 0628A Credit Elect Amount 15 Invalid Condition: Error Code 628 generates when Computer Condition Code "F" is present, and Field 0628A has an amount. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Refer to the return to determine if the entry in Field 01CCC is valid. If the entry in Field 01CCC is incorrect, delete Field 01CCC. If Computer Condition Code "F" is valid, check the return for misplaced entries in Field 06BDR and Field 0628A. If there are misplaced entries in the above-mentioned fields, correct or delete the entries. Delete the entry in Field 0628A when the return is Final.

# Error Code 630 - CCC "D" and No Received Date

3.12.217.23.24 (01-01-2022) Error Code 630 - CCC "D" and No Received Date Fields Displayed: Field Designator Field Title Field Length 01RCD Received Date 8 01CCC Computer Condition Code 10 Invalid Condition: Error Code 630 generates when Computer Condition Code "D" is present, and the Received Date is not present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. If CCC "D" is correct, determine the correct Received Date and enter it in Field 01RCD and on the return (YYYYMMDD).

# Error Code 656 - Total Income Mismatch

3.12.217.23.25 (01-01-2023) Error Code 656 - Total Income Mismatch Fields Displayed: Field Designator Field Title Field Length 0401A Gross Receipts and Sales 15 0401B Returns and allowances 15 0401C> Gross Receipts less Returns and Allowance 15 0402 Cost of Goods Sold 15 0403> Gross Profit Computer Generated 15 0404 Net Gain/Loss Form 4797 15 0405 Other Income 15 0406 Total Income 15 >>>> Total Income Computer Generated 15 04MCV Merchant Card Payments Verified (prior year only) 15 Invalid Condition: Error Code 656 generates when the transcribed Total Income amount differs ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ taxpayer's figures. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If the taxpayer has an attachment that shows income information, ensure that amounts are on correct lines. Check for any missing or incorrect entries. If Then Lines 1a and 1b are blank, Enter the amount from Line 1c in Field 0401A. Lines 1a, 1b, and 1c are blank, Add Lines 2 and 3, enter the amount in Field 0401A. Field 0402 is blank, Enter the amount from Form 1125-A, Cost of Goods Sold, Line 8, in Field 0402. Line 6 is the only entry in the Income Section, Enter the amount in Field 0405. There are no transcription errors, and the taxpayer has made an error in calculations, Enter the amount from the computer-generated Field 0406 into Field 0406. Place an "X" to the left of the taxpayer's figure on Line 6 and enter the correct figure to the left of the "X" .

# Error Code 658 - Total Deductions Mismatch

3.12.217.23.26 (01-01-2024) Error Code 658 - Total Deductions Mismatch Fields Displayed: Field Designator Field Title Field Length 0507 Compensation of Officers 15 0508 Salaries and Wages 15 0509 Repairs and Maintenance 15 0510 Bad Debt 15 0511 Rents 15 0512 Taxes and Licenses 15 0513 Deductible Interest Expense 15 0514 Depreciation 15 0515 Depletion 15 0516 Advertising 15 0517 Pension Profit-Sharing Plan 15 0518 Employee Benefit Program 15 0519 Energy Efficient Commercial Building Deduction 15 0520 Other Deductions 15 0521 Total Deductions 15 >>>> Total Deductions Computer Generated 15 Invalid Condition: Error Code 658 generates when the transcribed Total Deductions amount differs ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Total Deductions computer. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If the taxpayer has an attachment that shows deduction/expense information, ensure that amounts are on correct lines. Check for any missing or incorrect entries. If Then Line 21 is the only entry in the Deductions Section, Enter amount in Field 0520. There are no transcription errors, and the taxpayer has made an error in his calculations, Enter the amount from the computer-generated Field 0521 into Field 0521. Place an "X" to the left of the taxpayer's figure on Line 21 and enter the correct figure to the left of the "X" . The taxpayers total for deductions is correct when the (-) sign is removed, Follow the taxpayer's intent.

# Error Code 659 - Ordinary Income Loss Mismatch

3.12.217.23.27 (01-01-2024) Error Code 659 - Ordinary Income Loss Mismatch Fields Displayed: Field Designator Field Title Field Length S04NP Section 04 Not Present 0406 Total Income/Loss Amount 15 S05NP Section 05 Not Present 0521 Total Deductions 15 0522 Ordinary Income/Loss 15 >>>> Computer Generated Ordinary Income/Loss 15 Invalid Condition: Error Code 659 generates when any of the following conditions are present: The transcribed Ordinary Income Loss amount differs by more than (plus or minus) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The literal "Section XX Not Present" will display if no entry in Section 04 or 05. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If the taxpayer has an attachment that show income or deduction/expense information, ensure that amounts are on correct lines. Check for any missing or incorrect entries. If Then Line 22 is the only entry, and it is a loss, Enter Line 22 amount into Lines 20 and 21. Line 22 is the only entry, and it is a gain, Enter amount into Lines 5 and 6. There are no transcription errors, and the taxpayer has made an error in their calculations, Enter the amount from the computer-generated Field 0522 into Field 0522. Place an "X" to the left of the taxpayer's figure on Line 22 and enter the correct figure to the left of the "X" . The error in Ordinary Income is plus or minus ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more, Prepare Letter 3833C, Tax Return Adjustment Explained (BMF), to inform the taxpayer of the error in their calculations. Inform the taxpayer to prepare amended Schedules K-1 for the shareholders in the corporation. Notate action taken in the lower left margin of Form 1120-S. Note: Before sending letter, verify the taxpayer has transferred all amounts from attachments correctly.

# Error Code 660 -Total Tax Taxpayer present and No 06MCT

3.12.217.23.28 (01-01-2025) Error Code 660 -Total Tax Taxpayer present and No 06MCT Fields Displayed: Field Designator Field Title Field Length CL Clear Code 1 0623C Total Tax Taxpayer 15 06MCT Manually Corrected Total Tax 15 Invalid Condition: Error Code 660 generates when Total Tax Taxpayer is present and Field 06MCT is not present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. If there is an amount in Field 0623C, follow the Manual Verification procedures. If an amount is present on Line 23a (Excess net passive income or LIFO recapture tax), process as follows: If Then A supporting schedule is attached, Verify the correct amount was transferred to Line 23a. Enter a "C" in the Clear Code Field. A supporting schedule is not attached, SSPND with Action Code "211" and correspond. If an amount is present on Line 23b (Tax from Schedule D (Form 1120-S)), process as follows: If Then Schedule D is attached, Verify the correct amount (from Schedule D, Line 23) was transferred to Line 23b. Enter a "C" in the Clear Code Field. The tax is computed using regular corporate rates and is entered on Schedule D, Line 14, Verify the computation of Net Capital Gains. Verify the computed total tax was transferred to Line 23b. Enter a "C" in the Clear Code Field. Schedule D or a supporting schedule is not attached, SSPND with Action Code "211" and correspond. If an amount is present on Line 23c (Add Lines 23a and 23b (see instructions for additional taxes)), process as follows: If Then Amounts are present on Lines 23a or 23b, Verify the amount equals the total of the verified amounts for Lines 23a and 23b, plus any write-in amount for Form 4255, Recapture of Investment Credit. Enter a "C" in the Clear Code Field. The taxpayer has included amounts for pre-computed interest or delinquency penalties, Remove the amounts from Field 0623C. If an amount is present on Line 23c and there are no amounts on Lines 23a and 23b, process as follows: If Then Schedule D or Form 4255, Recapture of Investment Credit, notated, is attached, Verify the correct amount was transferred to Line 23c. Enter "C" in the Clear Code Field. Line 23c includes any of the following write-ins: "Tax from Form 4255" , "Last in First out (LIFO) Tax" (or similar language), "BBA imputed underpayment" (or similar language), Accept the taxpayer's entry. Enter "C" in the Clear Code Field. Note: Do not correspond for Form 4255 if not attached. The taxpayer has included amounts for pre-computed interest or delinquency penalties, Remove the amounts from Field 0623C. No supporting form, schedule, or statement is attached to explain the entry on Line 23c, SSPND with Action Code "211" and correspond. There is no reply from the taxpayer, Enter "3" in Field 01CCC. Accept the entry on Line 23c. Enter "C" in the Clear Code Field. Make necessary corrections to Lines 23a, 23b and 23c. If Line 23c is changed, enter the computed amount in 06MCT. Error Code 662 generates. An entry in 06MCT must satisfy the Rule of Two. See IRM 3.12.217.23.29, Rule of Two. If the Manually Corrected Total Tax is zero (0), enter $.01 in 06MCT. When Error Code 660 re-displays, enter a "C" in the Clear Code Field to clear the return. If Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, or Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method, is attached, process as follows: If Then A refund is claimed on Form 8697 or Form 8866, Disallow the credit, Delete the credit amount from Form 1120-S refund, if included. Detach and route Form 8697 or Form 8866 to Accounts Management. Note: See IRM 3.12.217.2.22, Perfection of Attachments. Form 8697 or Form 8866 is full paid or has a balance due, No action is needed.

# Rule of Two

3.12.217.23.29 (01-01-2017) Rule of Two Under normal circumstances, the computer and the taxpayer agree on the computation of the tax. This satisfies the Rule of Two. On a return with a true math error, the computer and the tax examiner will agree on the computation of tax. This satisfies the Rule of Two. On a manually computed return with a true math error, the Rule of Two is not satisfied until two tax examiners arrive at the same tax computation.

# Error Code 662 - Field 06MCT entry and No TPNC

3.12.217.23.30 (01-01-2024) Error Code 662 - Field 06MCT entry and No TPNC Fields Displayed: Field Designator Field Title Field Length NC Notice Code 2 0623C Total Tax Taxpayer 15 06MCT Manually Computed Tax 15 Invalid Condition: Error Code 662 generates when valid entries are present in Field 06MCT, and a Taxpayer Notice Code is not present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. If there is an entry in 06MCT, a Notice Code must be sent. TPNC 40 and 90 are the only valid Notice Codes for Error Code 662. See Exhibit 3.12.217-25, Taxpayer Notice Codes, for more information. TPNC 90 is a fill-in paragraph that uses Math Error (ME) codes. Note: For a full listing of the programmed TPNC 90 ME codes and information on how to use them, see TPNC 90 Math Error Code Job Aid at TPNC-90-Math-Error-Code-Job-Aid.doc. TPNC 40 is used when the taxpayer does not respond to correspondence.

# Error Code 663 - Clean Vehicle Credit (CVC) Disallowance

3.12.217.23.31 (01-01-2025) Error Code 663 - Clean Vehicle Credit (CVC) Disallowance Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 311VI Vehicle identification number (VIN) for 1st Schedule A 17 311DT Placed in service date for 1st Schedule A 8 31109 Tentative credit amount for 1st Schedule A 15 31111 Credit amount for business use of new clean vehicle for 1st Schedule A 15 >>>>> Computer Generated - Credit amount for 1st Schedule A 15 31117 Smaller of Line 15 or Line 16 for 1st Sch. A 15 31126 Smaller of Line 24 or Line 25 for 1st Schedule A 15 >>>>> Computer Generated - Smaller of Line 24 or Line 25 15 311IN> Indicator field for results of MeF check of VIN against portal 1 312VI Vehicle Identification Number (VIN) for 2nd Schedule A 17 312DT Placed in service date for 2nd Schedule A 8 31209 Tentative credit amount for 2nd Schedule A 15 31211 Credit amount for business use of new clean vehicle for 2nd Schedule A 15 >>>>> Computer Generated - Credit amount of 2nd Schedule A 15 31217 Smaller of Line 15 or Line 16 for 2nd Schedule A 15 31226 Smaller of Line 24 or Line 25 for 2nd Schedule A 15 >>>>> Computer Generated - Smaller of Line 24 or 25 15 312IN> Indicator field for results of MeF check of VIN against portal for 2nd Schedule A 1 31RED> Computer Generated - Reduced amount of CVC credit 15 31RDV CVC verified field - ERS input only 15 313IN Indicator (More than 2 Schedule A's attached) 1 Invalid Condition: Error Code 663 generates when: Field 31RED> (Computer amount of reduction of the CVC credit) is greater than zero. Field 0311IN> or Field 0312IN> is a "2" . Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. The taxpayer will attach Form 8936 Schedule A, Clean Vehicle Credit Amount, and report their credit on Form 1120-S, Schedule K, Line 13g. The credit is then distributed to the Shareholders on Schedule K-1. Field 0311IN> and Field 3112IN> will go through a validation process in MeF to verify the VIN. The valid indicators and their meanings for both fields are: Value Meanings 0 Default 1 VIN is valid 2 VIN is invalid 3 Portal queried; response not received If Field 0311IN> or Field 0312IN> is a "2" , then send TPNC 74. TPNC 74 and TPNC 90 are the only valid Notice Codes for Error Code 663. See Exhibit 3.12.217-25, Taxpayer Notice Codes, for more information.

# Error Code 664 - Elective payment election (EPE) Disallowance

3.12.217.23.32 (01-01-2026) Error Code 664 - Elective payment election (EPE) Disallowance Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 25RNI> EPE registration number validity indicator 13 231BJ Form 7207 Net elective payment amount 15 >>>>> Computer Generated Form 7207 Net elective payment amount 15 231GJ Form 7210 Net elective payment amount 15 >>>>> Computer Generated Form 7210 Net elective payment amount 15 241OJ Form 3468, Part IV, Net elective payment amount 15 >>>>> Computer Generated Form 3468, Part IV, Net elective payment amount 15 241XJ Form 8933 Net elective payment amount 15 >>>>> Computer Generated Form 8933 Net elective payment amount 15 0624D Elective payment election (EPE) from Form 1120-S, Line 24d 15 >>>>> Computer Generated Elective payment election (EPE) 15 0624V Elective payment election (EPE) verified field ERS input only 15 Field 25RNI> is 13 positions and validates if the registration number for each form on Form 3800, General Business Credit, is valid. If the registration number is not valid, the taxpayer will not be eligible for the credit. The 13 positions for Field 25RNI> are defined as follows: Position Description Line Form 3800, Part III Valid on Form 1120-S 1 Form 7207 1b Yes 2 Form 3468, Part III 1d No 3 Form 7210 1g Yes 4 Form 3468, Part IV 1o Yes 5 Form 7218, Part II 1q No 6 Form 8911, Part I 1s No 7 Form 7213, Part II 1u No 8 Form 3468, Part V 1v No 9 Form 8933 1x Yes 10 Form 8936, Part V 1aa No 11 Form 7211, Part II 1gg No 12 Form 3468, Part VI 4a No 13 Form 8835, Part II 4e No The values/meaning for each of the 13 fields are: Value Meanings 0 Default 1 Registration Number is valid 2 Registration Number is invalid 3 Portal Queried; response not received Invalid Condition: Error Code 664 generates when: The difference between Field 0624D, Elective payment election (EPE), and the computer underprint amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Field 231BJ, Field 231GJ, Field 241OJ, or Field 241XJ has an entry and the computer underprint is zero. The information provided does not support the credit claimed on Form 1120-S, Line 24d. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. The taxpayer will attach Form 3800, General Business Credit, and report their EPE credit on Form 1120-S, Line 24d. If Form 3800, General Business Credit is not attached and the EPE credit claimed on Line 24d, Form 1120-S, is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond using Letter 118C (unless it's apparent that Code & Edit has already done so). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If Field 231BJ, Field 231GJ, Field 241OJ, or Field 241XJ has an entry and the computer underprint is zero, then send TPNC 56. If a math error is present and transcription is correct, then send TPNC 73. TPNC 56, TPNC 73, and TPNC 90 are the only valid Notice Codes for Error Code 664. See Exhibit 3.12.217-25, Taxpayer Notice Codes, for more information. Suspense Correction: If No Reply to correspondence, then disallow the EPE credit shown and remove the amount claimed in Field 0624D. Enter CCC "3" and send TPNC 73.

# Error Code 670 - Remittance or RRPS Indicator

3.12.217.23.33 (01-01-2024) Error Code 670 - Remittance or RRPS Indicator Fields Displayed: Field Designator Field Title Field Length RMIT> Remittance 15 01CCC Computer Condition Code 10 S06NP Section 06 Not Present 0623C Total Tax Taxpayer 15 Invalid Condition: Error Code 670 generates when a remittance is present or a RRPS indicator is present with the return and Total Tax-Taxpayer is zero and a valid Computer Condition Code "G" is not present. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. Enter CCC "G" in 01CCC and Received Date in 01RCD if the return shows an amended, revised, superseding, duplicate or any other positive indication that the return is not the first one filed for the same Tax Period. If CCC "G" is not to be used and data is present on the return for Section 06, use CC GTSEC and enter the data for Section 06. If there is no money in the RMIT> Field, and an RRPS/ISRP indicator is present, use GTSEC for Section 06, enter a "1" in Field 0623C and continue processing. If penalty and interest are present on a zero-balance remittance or the remittance equals the refund amount on the Form 1120-S Return, enter "1" into Field 0623C, Total Tax Taxpayer. Error Code 660 will then be generated and if all the entries are correct, enter a "C" in the Clear Code Field to clear the return.

# Error Code 672 - Sections 15, 16, 17, 18, or 06 Not Present

3.12.217.23.34 (01-01-2024) Error Code 672 - Sections 15, 16, 17, 18, or 06 Not Present Fields Displayed: Field Designator Field Title Field Length NC Notice Code 2 0624A Estimated Tax Payment 15 0624B Form 7004 Payment 15 0624D Elective payment election (EPE) 15 >>>>> Total Elective payment election (EPE) Computer 15 0624V Elective payment election (EPE) verified field - ERS input only 15 0624Z Total Payments/Credits (total Lines 24a through 24d) Note: Prior lines for Field 0624Z are: 2021 and 2022 - Total Payments/Credits (total Lines 23a through 23c) Reserved - 2019 and 2020 2018 - Refundable Credit from Form 8827 2017 and prior - Total Payments/Credits (total Lines 23a through 23c) 15 >>>> Total Credits Computer 15 15TG> Total Gas Tax Credit Computer 15 15A01-15A12 First-Twelfth Credit amount Reported on Form 4136 15 15C01-15C12 First-Twelfth CRN Reported on Form 4136 3 S16DP Section 16 Present S17DP Section 17 Present S18DP Section 18 Present Note: If either Section 15, 16, 17, 18 or 06 is not present, the following note will display on the screen: "Section XX Not Present" . Invalid Condition: Error Code 672 generates when the difference between Total Payments Taxpayer and Total Payments Computer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Balance Due/Overpayment is in error. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. If Field 0624Z underprints, compare Field 0624Z with Line 24z, page 1, Form 1120-S. If different, verify that the fields in Sections 06 and 15-18 were transcribed correctly. Research CC BMFOL for the Estimated Tax Payment and Extension Payment and enter the amount into the applicable field. If not found, send the applicable TPNC. If Sections 15-18 have not been transcribed, CC GTSEC Sections 15-18 and enter the proper fields. If Line 24c has a significant entry, and Form 4136, Credit for Federal Tax Paid on Fuels, is missing, suspend the return for correspondence. Note: A significant entry is defined as any amount other than zero. Use CC DLSEC Sections 15-18 when a taxpayer has attached a Form 4136 with a credit amount and is not using the credit on Form 1120-S or the credit was distributed through the Schedules K-1. For Tax Year (TY) 2018 revision only, delete credit from Form 8827, Credit for Prior Year Minimum Tax - Corporations, Line 23d (Field 0623D), when shown on the return. Send TPNC 90 with the Math Error (ME) code 258. Note: For a full listing of the programmed TPNC 90 ME codes and information on how to use them, see TPNC 90 Math Error Code Job Aid at TPNC-90-Math-Error-Code-Job-Aid.doc. Delete Backup Withholding when shown on the return. Send TPNC 90 with the ME code 67. Note: For a full listing of the programmed TPNC 90 Math Error Codes and information on how to use the Math Error Codes see TPNC 90 Math Error Code Job Aid at TPNC-90-Math-Error-Code-Job-Aid.doc. If the taxpayer is trying to take a "Claim of Rights" credit, "Section 1341" credit, or there is uncertainty as to the acceptability of any "other" credit, suspend to Exam for review or follow procedures. If the corporation is the beneficiary of a trust and the trust makes a section 643(g) election, then the taxpayer will include their share of the estimated payments made to beneficiaries in the total for Line 24z (Line 23d for TY 2021 and 2022; Line 23e for TY 2019 and 2020). The amount should be reported on the dotted portion of Line 24z preceded by a "T" . Enter the amount in Field 0624A and continue processing the return. Note: The amount could also be shown in a statement attached to the return. The valid TPNCs for Error Code 672 are listed below. For more information, see Exhibit 3.12.217-25, Taxpayer Notice Codes (TPNC). 36 - We found an error in the computation of the credit for federal tax on fuels on Form 4136. 37 - We found an error on page 1 of your return when the credit for federal tax on fuels was transferred from Form 4136. 38 - We found an error on page 1 of your return when your payment amounts were added. 40 - We adjusted your tax return as shown because we did not receive a reply to our request for additional information. 73 - We changed the amount for the Elective Payment Election (EPE) because the Form 3800, General Business Credit, Part III, was computed incorrectly. 90 - Fill-in narrative. Suspense Correction: If the taxpayer responds with the required Form 4136, perfect the return based on the new information. If the taxpayer does not respond with the required Form 4136, enter CCC "3" and delete the credit on Line 24c, Form 1120-S, and send TPNC 40.

# Error Code 674 - Balance Due/Overpayment Mismatch

3.12.217.23.35 (01-01-2026) Error Code 674 - Balance Due/Overpayment Mismatch Fields Displayed: Field Designator Field Title Field Length NC Notice Code 2 0623C Total Tax Taxpayer 15 >>>> Computer Generated Total Tax 15 0624Z Total Payments/Credits Note: Prior lines for Field 0624Z are: 2021 and 2022 - Total Payments/Credits (total Lines 23a through 23c) 2019 and 2020 - Reserved 2018 - Refundable Credit from Form 8827 2017 and prior - Total Payments/Credits (total Lines 23a through 23c) 15 >>>>> Total Credits Computer 15 0625 Estimated Tax Payment Penalty 15 06BDR Balance Due/Overpayment 15 >>>> Computer Generated Balance Due/Overpayment 15 0628A Credit Elect Amount 15 Invalid Condition: Error Code 674 generates when the difference between Balance Due/Overpayment Taxpayer and Balance Due/Overpayment Computer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Correction Procedures: Correct coding errors, transcription errors, and misplaced entries. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information. If you are processing a 2022 Tax Year form and the taxpayer has indicated an "Elective Payment" or "Deemed Payment" by writing "IRA22DPE" on an attachment or on Form 1120-S, Line 23d dotted portion, refer to the instructions found at IRM 3.12.217.2.27, Elective Payment Election (EPE) and Credit Transfers. Note: Do not continue processing return. Ensure that Action Code 450 is entered and the return with EPE is held for LB&I review. Amounts for self-assessed penalty or interest must not be included in Field 06BDR unless it is for Estimated Tax (ES) Penalty. If the amount of ES Penalty is present in Field 0625 and has not been included in Field 06BDR, add the ES Penalty amount to Field 06BDR. If a discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between the taxpayer's figures and the computer's figures still exists after all actions above for math verification have been taken and all necessary corrections have been made send TPNC 10. Delete any mention of Backup Withholding when shown on the return. Send TPNC 90 with the Math Error Code 67. Note: For a full listing of the programmed TPNC 90 ME codes and information on how to use them, see TPNC 90 Math Error Code Job Aid at TPNC-90-Math-Error-Code-Job-Aid.doc . Valid TPNCs for Error Code 674 are 10, 40, 88, 89 and 90. For more information, see Exhibit 3.12.217-25, Taxpayer Notice Codes.

# Error Code 999 - Error Status

3.12.217.23.36 (01-01-2018) Error Code 999 - Error Status Fields Displayed: Field Designator Field Title Field Length 01TXP Tax Period 6 Invalid Condition: Error Code 999 generates on all returns that are in error status at the end of the processing year. Correction Procedures: Since the system will re-validate the return and set validity and Error Codes based on next processing year's program, the only correction required for this Error Code is for the tax examiner to transmit.

# Form 1120-S - U.S. Income Tax Return for an S Corporation

Exhibit 3.12.217-1 Form 1120-S - U.S. Income Tax Return for an S Corporation Page 1, 2025 Form 1120-S, U.S. Tax Return for an S Corporation, with ERS field descriptors. Please click here for the text description of the image. Page 2, 2025 Form 1120-S, U.S. Tax Return for an S Corporation, with ERS field descriptors. Please click here for the text description of the image. Page 3, 2025 Form 1120-S, U.S. Tax Return for an S Corporation, with ERS field descriptors. Please click here for the text description of the image. Page 4, 2025 Form 1120-S, U.S. Tax Return for an S Corporation, with ERS field descriptors. Please click here for the text description of the image. Page 5, 2025 Form 1120-S, U.S. Tax Return for an S Corporation, with ERS field descriptors. Please click here for the text description of the image.

# Form 8825 - Rental Real Estate Income and Expenses of a Partnership or an S Corporation

Exhibit 3.12.217-2 Form 8825 - Rental Real Estate Income and Expenses of a Partnership or an S Corporation Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, with ERS field descriptors. Please click here for the text description of the image.

# Form 1125-A - Cost of Goods Sold

Exhibit 3.12.217-3 Form 1125-A - Cost of Goods Sold Form 1125-A, Cost of Goods Sold, with ERS field descriptors. Please click here for the text description of the image.

# Form 1120-S - Schedule D

Exhibit 3.12.217-4 Form 1120-S - Schedule D Form 1120-S, Schedule D, with ERS field descriptors. Please click here for the text description of the image.

# Form 8949 - Sales and Other Dispositions of Capital Assets

Exhibit 3.12.217-5 Form 8949 - Sales and Other Dispositions of Capital Assets Form 8949, Sales and Other Dispositions of Capital Assets, Page 1, with ERS field descriptors.Field 101AZ is shown on Form 8949, Part I, Line 1, Column a.Field 101BZ is shown on Form 8949, Part I, Line 1, Column b.Field 101GZ is shown on Form 8949, Part I, Line 1, Column g.Field 101Z is shown on Form 8949, Part I, Line 1, in the right margin.Field 101AY is shown on Form 8949, Part I, Line 1, Column a.Field 101CY is shown on Form 8949, Part I, Line 1, Column c.Field 101GY is shown on Form 8949, Part I, Line 1, Column g.Field 101Y is shown on Form 8949, Part I, Line 1, in the right margin. Please click here for the text description of the image. Form 8949, Sales and Other Dispositions of Capital Assets, Page 2, with ERS field descriptors.Field 102AZ is shown on Form 8949, Part II, Line 1, Column a.Field 102BZ is shown on Form 8949, Part II, Line 1, Column b.Field 102GZ is shown on Form 8949, Part II, Line 1, Column g.Field 102Z is shown on Form 8949, Part II, Line 1, in the right margin.Field 102AY is shown on Form 8949, Part II, Line 1, Column a.Field 102CY is shown on Form 8949, Part II, Line 1, Column c.Field 102GY is shown on Form 8949, Part II, Line 1, Column g.Field 102Y is shown on Form 8949, Part II, Line 1, in the right margin. Please click here for the text description of the image.

# Form 8996 - Qualified Opportunity Fund

Exhibit 3.12.217-6 Form 8996 - Qualified Opportunity Fund Form 8996, Qualified Opportunity Fund, Page 1, with ERS field descriptors.Field 10Q5 is shown on Line 5.Field 10Q6 is shown just left of Line 6.Field 10Q7 is shown on Line 7.Field 10Q8 is shown on Line 8.Field 10Q10 is shown on Line 10.Field 10Q11 is shown on Line 11.Field 10Q14 is shown on Line 14.Field 10Q15 is shown on Line 15. Please click here for the text description of the image. Form 8996, Qualified Opportunity Fund, Page 2, for information only. Please click here for the text description of the image. Form 8996, Qualified Opportunity Fund, Page 3, for information only. Please click here for the text description of the image. Form 8996, Qualified Opportunity Fund, Page 4, for information only. Please click here for the text description of the image.

# Form 4797 - Sales of Business Property

Exhibit 3.12.217-7 Form 4797 - Sales of Business Property Form 4797, Sales of Business Property, Page 1, with ERS field descriptors.Field 121A is shown on Form 4797, Part I, Line 1a.Field 121B is shown on Form 4797, Part I, Line 1b.Field 121C is shown on Form 4797, Part I, Line 1c.Field 1207 is shown on Form 4797, Part I, Line 7.Field 1208 is shown on Form 4797, Part I, Line 8.Field 1209 is shown on Form 4797, Part I, Line 9.Field 1217 is shown on Form 4797, Part II, Line 17.Field 1218A is shown on Form 4797, Part II, Line 18a.Field 1218B is shown on Form 4797, Part II, Line 18b. Please click here for the text description of the image. Form 4797, Sales of Business Property, Page 2, for information only. Please click here for the text description of the image.

# Schedule N - Foreign Operations of U.S. Corporations

Exhibit 3.12.217-8 Schedule N - Foreign Operations of U.S. Corporations Schedule N (Form 1120), Foreign Operations of U.S. Corporations, with ERS field descriptors. Please click here for the text description of the image.

# Form 4136 - Credit for Federal Tax Paid on Fuels

Exhibit 3.12.217-9 Form 4136 - Credit for Federal Tax Paid on Fuels Page 1, Form 4136, Credit for Federal Tax Paid on Fuels. ERS CRN field descriptors. Please click here for the text description of the image. Page 2 Form 4136, Credit for Federal Tax Paid on Fuels. ERS CRN possible field descriptors. Please click here for the text description of the image. Page 3 Form 4136, Credit for Federal Tax Paid on Fuels. ERS CRN possible field descriptors. Please click here for the text description of the image. Pictured is page 4 Form 4136, Credit for Federal Tax Paid on Fuels. ERS CRN possible field descriptors. Please click here for the text description of the image.

# Form 8941 - Credit for Small Employer Health Insurance Premiums

Exhibit 3.12.217-10 Form 8941 - Credit for Small Employer Health Insurance Premiums Form 8941, Credit for Small Employer Health Insurance Premiums, with ERS field descriptors.Field 21CBX is shown on Form 8941, Line A.Field 21LNB is shown on Form 8941, Line B.Field 21BXC is shown on Form 8941, Line C.Field 21LN1 is shown on Form 8941, Line 1.Field 2102 is shown on Form 8941, Line 2.Field 2103 is shown on Form 8941, Line 3.Field 2104 is shown on Form 8941, Line 4.Field 2105 is shown on Form 8941, Line 5.Field 2110 is shown on Form 8941, Line 10.Field 2113 is shown on Form 8941, Line 13.Field 2114 is shown on Form 8941, Line 14.Field 2115 is shown on Form 8941, Line 15.Field 2116 is shown on Form 8941, Line 16. Please click here for the text description of the image.

# Form 3800 - General Business Credit

Exhibit 3.12.217-11 Form 3800 - General Business Credit Page 1 of Form 3800, General Business Credit. Form 3800 is valid on tax periods 202301 and later.NO ERS Fields - But visual of Form 3800, Page 1 since new Please click here for the text description of the image. Page 3 of Form 3800, General Business Credit, with ERS field descriptors.Field 231BB is shown on Form 3800, Part III, Line 1b, Column b.Field 231BF is shown on Form 3800, Part III, Line 1b, Column f.Field 231BG is shown on Form 3800, Part III, Line 1b, Column g.Field 231BH is shown on Form 3800, Part III, Line 1b, Column h.Field 231BJ is shown on Form 3800, Part III, Line 1b, Column j.Field 231DB is shown on Form 3800, Part III, Line 1d, Column b.Field 231DF is shown on Form 3800, Part III, Line 1d, Column f.Field 231DG is shown on Form 3800, Part III, Line 1d, Column g.Field 231FB is shown on Form 3800, Part III, Line 1f, Column b.Field 231FF is shown on Form 3800, Part III, Line 1f, Column f.Field 231FG is shown on Form 3800, Part III, Line 1f, Column g.Field 231GB is shown on Form 3800, Part III, Line 1g, Column b.Field 231GF is shown on Form 3800, Part III, Line 1g, Column f.Field 231GG is shown on Form 3800, Part III, Line 1g. Column g.Field 231GH is shown on Form 3800, Part III, Line 1g, Column h.Field 231GJ is shown on Form 3800, Part III, Line 1g, Column j.Field 231IB is shown on Form 3800, Part III, Line 1I, Column b.Field 231IF is shown on Form 3800, Part III, Line 1I, Column f.Field 231IG is shown on Form 3800, Part III, Line 1I, Column g.Field 241OB is shown on Form 3800, Part III, Line 1o, Column b.Field 241OG is shown on Form 3800, Part III, Line 1o, Column g.Field 241OH is shown on Form 3800, Part III, Line 1o, Column h.Field 241OJ is shown on Form 3800, Part III, Line 1o, Column j.Field 241QB is shown on Form 3800, Part III, Line 1q, Column b.Field 241QF is shown on Form 3800, Part III, Line 1q, Column f.Field 241QG is shown on Form 3800, Part III, Line 1q, Column g.Field 241SB is shown on Form 3800, Part III, Line 1s, Column b.Field 241SF is shown on Form 3800, Part III, Line 1s, Column f.Field 241SG is shown on Form 3800, Part III, Line 1s, Column g.Field 241UB is shown on Form 3800, Part III, Line 1u, Column b.Field 241UF is shown on Form 3800, Part III, Line 1u, Column f.Field 241UG is shown on Form 3800, Part III, Line 1u, Column g.Field 241VB is shown on Form 3800, Part III, Line 1v, Column b.Field 241VF is shown on Form 3800, Part III, Line 1v, Column f.Field 241VG is shown on Form 3800, Part III, Line 1v, Column g.Field 241XB is shown on Form 3800, Part III, Line 1x, Column b.Field 241XF is shown on Form 3800, Part III, Line 1x, Column f.Field 241XG is shown on Form 3800, Part III, Line 1x, Column g.Field 241XH is shown on Form 3800, Part III, Line 1x, Column h.Field 241XJ is shown on Form 3800, Part III, Line 1x, Column j.Field 25AAB is shown on Form 3800, Part III, Line 1aa, Column b.Field 25AAG is shown on Form 3800, Part III, Line 1aa, Column g.Field 25GGB is shown on Form 3800, Part III, Line 1gg, Column b.Field 25GGF is shown on Form 3800, Part III, Line 1gg, Column f.Field 25GGG is shown on Form 3800, Part III, Line 1gg, Column g. Please click here for the text description of the image. Page 4 of Form 3800, General Business Credit, with ERS field descriptors.Field 254AB is shown on Form 3800, Part III, Line 4a, Column b.Field 254AF is shown on Form 3800, Part III, Line 4a, Column f.Field 254AG is shown on Form 3800, Part III, Line 4a, Column g.Field 254EB is shown on Form 3800, Part III, Line 4e, Column b.Field 254EF is shown on Form 3800, Part III, Line 4e, Column f.Field 254EG is shown on Form 3800, Part III, Line 4e, Column g.Field 25IND is shown on Form 3800, Part III, Bottom right. Please click here for the text description of the image.

# Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

Exhibit 3.12.217-12 Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments Page 1 of Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, with ERS field descriptors.Field 261A is shown on Part I, Row 1, Column a.Field 261B is shown on Part I, Row 1, Column b.Field 261D is shown on Part I, Row 1, Column d.Field 261E is shown on Part I, Row 1, Column e.Field 261F is shown on Part I, Row 1, Column f.Field 261IN is shown in the right margin of Part I, Row 1.Field 2612E is shown on Part I, Line 2, Column e (Column e total).Field 2612F is shown on Part I, Line 2, Column f (Column f total).Field 262A is shown on Part II, Row 1, Column a.Field 262B is shown on Part II, Row 1, Column b.Field 262D is shown on Part II, Row 1, Column d.Field 262E is shown on Part II, Row 1, Column e.Field 262F is shown on Part II, Row 1, Column f.Field 262IN is shown in the right margin of Part II, Row 1.Field 2622E is shown on Part II, Line 2, Column e (Column e total).Field 2622F is shown on Part II, Line 2, Column f (Column f total). Please click here for the text description of the image. Page 2 of Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, with ERS field descriptors.Field 263A is shown on Part III, Row 1, Column a.Field 263B is shown on Part III, Row 1, Column b.Field 263D is shown on Part III, Row 1, Column d.Field 263E is shown on Part III, Row 1, Column e.Field 263F is shown on Part III, Row 1, Column f.Field 263IN is shown in the right margin of Part III, Row 1.Field 2632E is shown on Part III, Line 2, Column e (Column e total).Field 2632F is shown on Part III, Line 2, Column f (Column f total).Field 264A is shown on Part IV, Row 1, Column a.Field 264B is shown on Part IV Row 1, Column b.Field 264D is shown on Part IV, Row 1, Column d.Field 264E is shown on Part IV, Row 1, Column e.Field 264F is shown on Part IV, Row 1, Column f.Field 264IN is shown in the right margin of Part IV, Row 1.Field 2642E is shown on Part IV, Line 2, Column e (Column e total).Field 2642F is shown on Part IV, Line 2, Column f (Column f total). Please click here for the text description of the image.

# Form 8283, Noncash Charitable Contribution

Exhibit 3.12.217-13 Form 8283, Noncash Charitable Contribution Page 1 of Form 8283, Noncash Charitable Contribution, with ERS field descriptors.Field 27DPT is shown on Part I, Line 2 check boxes.Field 273AC is shown on Part I, Line 3, Row A, Column (c).Field 273AD is shown on Part I, Line 3, Row A, Column (d).Field 273AF is shown on Part I, Line 3, Row A, Column (f). Please click here for the text description of the image. Page 2 of Form 8283, Noncash Charitable Contribution, with ERS field descriptors.Field 27ASI is shown on Part IV, Appraiser signature area.Field 27AIN is shown on Part IV, Identifying number.Field 27QDD is shown on Part V, Qualified Organization Donated Property Date Received.Field 27COE is shown on Part V, Charitable Organization Employer Identification Number.Field 27COS is shown on Part V, Charitable Organization Authorized Signature Indictor. Just to the left of Authorized Signature.Field 27MFI is shown on Part V, F8283, lower right corner. Please click here for the text description of the image.

# Form 6252 - Installment Sale Income

Exhibit 3.12.217-14 Form 6252 - Installment Sale Income Form 6252, Installment Sale Income, with ERS field descriptors.Field 2901 is shown on Form 6252, Line 1.Field 2902A is shown on Form 6252, Line 2a.Field 2902B is shown on Form 6252, Line 2b.Field 2907 is shown on Form 6252, Part I, Line 7.Field 2919 is shown on Form 6252, Part II, Line 19.Field 2921 is shown on Form 6252, Part II, Line 21.Field 2923 is shown on Form 6252, Part II, Line 23. Please click here for the text description of the image.

# Form 8936 - Schedule A, Clean Vehicle Credit Amount

Exhibit 3.12.217-15 Form 8936 - Schedule A, Clean Vehicle Credit Amount Page 1 of Form 8936, Schedule A, Clean Vehicle Credit Amount, with ERS field descriptors.Field 311VI is shown on Part I Line 2. - For the first Form 8936, Schedule A attached.Field 312VI is shown on Part I Line 2. - For the second Form 8936, Schedule A attached.Field 311DT is shown on Part I Line 3. - For the first Form 8936, Schedule A attached.Field 312DT is shown on Part I Line 3. - For the second Form 8936, Schedule A attached. Please click here for the text description of the image. Page 2 of Form 8936, Schedule A, Clean Vehicle Credit Amount, with ERS field descriptors.Field 31109 is shown on Part II Line 9. - For the first Form 8936, Schedule A attached.Field 31209 is shown on Part I Line 9. - For the second Form 8936, Schedule A attached.Field 31111 is shown on Part II Line 11. - For the first Form 8936, Schedule A attached.Field 31211 is shown on Part II Line 11. - For the second Form 8936, Schedule A attached.Field 31117 is shown on Part IV Line 17. - For the first Form 8936, Schedule A attached.Field 31217 is shown on Part IV Line 17. - For the second Form 8936, Schedule A attached. Please click here for the text description of the image. Page 3 of Form 8936, Schedule A, Clean Vehicle Credit Amount, with ERS Field descriptors.Field 31126 is shown on Part V Line 26 - For the first Form 8936, Schedule A attached.Field 31226 is shown on Part V Line 26 - For the second form 8936, Schedule A attached.Field 313IN More than two form Schedule As attached. Page 3, Bottom Right Margin on the Second Schedule A. Please click here for the text description of the image.

# Form 4255 - Certain Credit Recapture, Excessive Payments, and Penalties

Exhibit 3.12.217-16 Form 4255 - Certain Credit Recapture, Excessive Payments, and Penalties Page 1 of Form 4255 - (Information Only - No ERS Fields). Please click here for the text description of the image. Page 2 of Form 4255 - (Information Only - No ERS Fields) Please click here for the text description of the image. Page 3 of Form 4255 - Certain Credit Recapture, Excessive Payments, and Penalties, with ERS field descriptorsField 351AS is shown on Part 1 Line 1a, Column s.Field 351AT is shown on Part 1, Line 1a, Column t.Field 351CS is shown on Part 1 Line 1c, Column s.Field 351CT is shown on Part 1, Line 1c, Column t.Field 351DS is shown on Part 1 Line 1d, Column s.Field 351DT is shown on Part 1, Line 1d, Column t.Field 352AS is shown on Part 1 Line 2a, Column sField 352AT is shown on Part 1 Line 2a, Column t. Please click here for the text description of the image. Page 4 of Form 4255 - (Information Only - No ERS Fields). Please click here for the text description of the image. Page 5 of Form 4255 - (Information Only - No ERS Fields). Please click here for the text description of the image.

# Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations

Exhibit 3.12.217-17 Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, for information only. Please click here for the text description of the image.

# Form 1120-S - Schedule K-1

Exhibit 3.12.217-18 Form 1120-S - Schedule K-1 Form 1120-S, Schedule K-1 for 2025 for information only. Please click here for the text description of the image.

# Form 3800 - General Business Credit Conversion Chart

Exhibit 3.12.217-19 Form 3800 - General Business Credit Conversion Chart Listed below are the Fields in Section 23, Form 3800. Field Designator Field Title Location on Form 3800 (2023 revision) Location on Form 3800 (2024 revision) Location on Form 3800 (2025 revision) 231BB Form 7207(Registration number) Part III, Line 1b, Column b Part III, Line 1b, Column b Part III, Line 1b, Column b 231BF Form 7207(Credit Transfer Election Amount) Part III, Line 1b, Column g Part III, Line 1b, Column f Part III, Line 1b, Column f 231BG Form 7207 (Combine columns e and f) Part III, Line 1b, Column j Part III, Line 1b, Column g Part III, Line 1b, Column g 231BH Form 7207 (Gross Elective Payment Election (EPE) Amount) Part III, Line 1b, Column h Part III, Line 1b, Column h Part III, Line 1b, Column h 231BJ Form 7207 (Net Elective Payment Election (EPE) Amount) Part III, Line 1b, Column i. Part III, Line 1b, Column j Part III, Line 1b, Column j 231DB Form 3468, Part III, (Registration number) Part III, Line 1d, Column b Part III, Line 1d, Column b Part III, Line 1d, Column b 231DF Form 3468, Part III, (Credit Transfer Election Amount) Part III, Line 1d, Column g Part III, Line 1d, Column f Part III, Line 1d, Column f 231DG Form 3468, Part III, (Combine columns e and f) Part III, Line 1d, Column j Part III, Line 1d, Column g Part III, Line 1d, Column g 231FB Form 8835, Part II (Registration number) Part III, Line 1f, Column b Part III, Line 1f, Column b Part III, Line 1f, Column b 231FF Form 8835, Part II (Credit Transfer Election Amount) Part III, Line 1f, Column g Part III, Line 1f, Column f Part III, Line 1f, Column f 231FG Form 8835, Part II (Combine columns e and f) Part III, Line 1f, Column j Part III, Line 1f, Column g Part III, Line 1f, Column g 231GB Form 7210 (Registration number) Part III, Line 1g, Column b Part III, Line 1g, Column b Part III, Line 1g, Column b 231GF Form 7210 (Credit Transfer Election Amount) Part III, Line 1g, Column g Part III, Line 1g, Column f Part III, Line 1g, Column b 231GG Form 7210 (Combine columns e and f) Part III, Line 1g, Column j Part III, Line 1g, Column g Part III, Line 1g, Column g 231GH Form 7210 (Gross Elective Payment Election (EPE) Amount) Part III, Line 1g, Column h Part III, Line 1g, Column h Part III, Line 1g, Column h 231GJ Form 7210 (Net Elective Payment Election (EPE) Amount) Part III, Line 1g, Column i. Part III, Line 1g, Column j Part III, Line 1g, Column j 231IB Form 7210 (Registration number) N/A N/A Part III, Line 1I, Column b 231If Form 7210 (Combine columns e and f) N/A N/A Part III, Line 1I, Column f 231Ig Form 7210 (Combine columns e and f) N/A N/A Part III, Line 1I, Column g Listed below are the Fields in Section 24, Form 3800. Field Designator Field Title Location on Form 3800 (2023 Revision) Location on Form 3800 (2024 - 2025 Revision) 241OB Form 3468, Part IV (Registration number) Part III, Line 1o, Column b Part III, Line 1o, Column b 241OG Form 3468, Part IV (Combine columns e and f) Part III, Line 1o, Column j Part III, Line 1o, Column g 241OH Form 3468, Part IV (Gross Elective Payment Election (EPE) Amount) Part III, Line 1o, Column h Part III, Line 1o, Column h 241OJ Form 3468, Part IV (Net Elective Payment Election (EPE) Amount) Part III, Line 1o, Column i. Part III, Line 1o, Column j 241QB Form 7218, Part II (Registration number) New for Revision 2024 Part III, Line 1q, Column b 241QF Form 7218, Part II (Credit Transfer Election Amount) New for Revision 2024 Part III, Line 1q, Column f 241QG Form 7218, Part II (Combine columns e and f) New for Revision 2024 Part III, Line 1q, Column g 241SB Form 8911, Part I (Registration number) Part III, Line 1s, Column b Part III, Line 1s, Column b 241SF Form 8911, Part I (Credit Transfer Election Amount) Part III, Line 1s, Column g Part III, Line 1s, Column f 241SG Form 8911, Part I (Combine columns e and f) Part III, Line 1s, Column j Part III, Line 1s, Column g 241UB Form 7213, Part II (Registration number) Part III, Line 1u, Column b Part III, Line 1u, Column b 241UF Form 7213, Part II (Credit Transfer Election Amount) Part III, Line 1u, Column g Part III, Line 1u, Column f 241UG Form 7213, Part II (Combine columns e and f) Part III, Line 1u, Column j Part III, Line 1u, Column g 241VB Form 3468, Part V (Registration number) New for Revision 2024 Part III, Line 1v, Column b 241VF Form 3468, Part V (Credit Transfer Election Amount) New for Revision 2024 Part III, Line 1v, Column f 241VG Form 3468, Part V (Combine columns e and f) New for Revision 2024 Part III, Line 1v, Column g 241XB Form 8933, (Registration number) Part III, Line 1x, Column b Part III, Line 1x, Column b 241XF Form 8933, (Credit Transfer Election Amount) Part III, Line 1x, Column g Part III, Line 1x, Column f 241XG Form 8933 (Combine columns e and f) Part III, Line 1x, Column j Part III, Line 1x, Column g 241XH Form 8933 (Gross Elective Payment Election (EPE) Amount) Part III, Line 1x, Column h Part III, Line 1x, Column h 241XJ Form 8933 (Net Elective Payment Election (EPE) Amount) Part III, Line 1x, Column i. Part III, Line 1x, Column j Listed below are the fields in Section 25, Form 3800. Field Designator Field Title Location on Form 3800 (Revision 2023) Location on Form 3800 (Revision 2024 - 2025) 25AAB Form 8936, Part V (Registration number) Part III, Line 1aa, column b Part III, Line 1aa, column b 25AAG Form 8936, Part V (Combine columns e and f) Part III, Line 1aa, column j Part III, Line 1aa, column g 25GGB Form 7211, Part II (Registration number) New for Revision 2024 Part III, Line 1gg, column b 25GGF Form 7211, Part II (Credit Transfer Election Amount) New for Revision 2024 Part III, Line 1gg, column f 25GGG Form 7211, Part II (Combine columns e and f) New for Revision 2024 Part III, Line 1gg, column g 254AB Form 3468, Part VI (Registration number) Part III, Line 4a, Column b Part III, Line 4a, Column b 254AF Form 3468, Part VI (Credit Transfer Election Amount) Part III, Line 4a, Column g Part III, Line 4a, Column f 254AG Form 3468, Part VI (Combine columns e and f) Part III, Line 4a, Column j Part III, Line 4a, Column g 254EB Form 8835, Part II (Registration number) Part III, Line 4e, Column b Part III, Line 4e, Column b 254EF Form 8835, Part II (Credit Transfer Election Amount) Part III, Line 4e, Column g Part III, Line 4e, Column f 254EG Form 8835, Part II (Combine columns e and f) Part III, Line 4e, Column j Part III, Line 4e, Column g 25IND Indicator - Part V, Column b has significant data Form 3800, Part III, (edited bottom right margin of Page 4). Form 3800, Part III, (edited bottom right margin of Page 4).

# Error Code 026 - Correction Procedures

Exhibit 3.12.217-20 Error Code 026 - Correction Procedures Page 1, Error Code 026 flow chart procedures. Please click here for the text description of the image. Page 2, Error Code 026 flow chart procedures. Please click here for the text description of the image. Page 3, Reply and No Reply flowchart procedures. Please click here for the text description of the image.

# ♦Province, State and Territory Abbreviations♦

Exhibit 3.12.217-21 ♦Province, State and Territory Abbreviations♦ The table below provides Province, 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 Abbreviation Alberta AB British Columbia BC Manitoba MB New Brunswick NB Newfoundland and Labrador NL Northwest Territories NT Nova Scotia NS Nunavut NU Ontario ON Prince Edward Island PE Quebec QC Saskatchewan SK Yukon 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 Vicenza 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 Ultrecht UT Zeeland SLD

# ♦U.S. Territories and Freely Associated States ZIP Codes♦

Exhibit 3.12.217-22 ♦U.S. Territories and Freely Associated States ZIP Codes♦ The table below provides ZIP Codes for all U.S. Possessions. 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 Aguada 00602 Aguadilla 00603 Aguas Buenas 00703 Aguirre 00704 Aibonito 00705 Anasco 00610 Angeles 00611 Arecibo 00612 Arroyo 00714 Bajadero 00616 Barceloneta 00617 Barranquitas 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 Cerro 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 Hormigueros 00660 Humacao 00791 Isabela 00662 Jayuya 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 Luquillo 00773 Manati 00674 Maricao 00606 Maunabo 00707 Mayaguez 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 Baja 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

# ♦Potential Frivolous Arguments for Examination Review♦

Exhibit 3.12.217-23 ♦Potential Frivolous Arguments for Examination Review♦ The table below provides a list of the most common Frivolous Arguments. Potential Frivolous Arguments for Examination Review 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 (Uniform Commercial Code) 1-207 or UCC 1-308 Return has income and deductions but the jurat was 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 for Refund and Request for Abatement, Claim Amended return or a Form 843 filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument. 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. C-Filings This frivolous position includes the following four categories: 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. Files a return having the filers' identifying information but does not request a refund, often lacking sufficient information to determine a tax liability. 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. Files a return that tries to send a 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/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) because they are not filed and 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 claims 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 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 such as Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, promissory notes, bonds, sight drafts, etc. IRC Section 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 indicating 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 zeroes inserted on the form the individual references "U.S. vs. Long" Unsigned Returns The individual completes a return but does not sign, a statement indicating 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 line items on the form (e.g., IRC 861, Form 2439, OID, and other BMF filings that claim no income and request refunds). See Rev. Rul. 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 have arguments on 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 show "None," "Not Liable" , etc. with no evidence of a frivolous argument are not to be considered as frivolous returns. Other All others including those in Notice 2010-33or any subsequent superseding notice. See also The Truth About Frivolous Tax Arguments 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) must be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights, for more information.

# ♦Province/County Code - Canada Only♦

Exhibit 3.12.217-24 ♦Province/County Code - Canada Only♦ The table below shows abbreviations and Country Codes for Canada. Canadian Province Province Abbreviation Country Code Field 02CTY Alberta AB XA British Columbia BC XB Manitoba MB XM New Brunswick NB XN Newfoundland and Labrador NL XL Northwest Territories NT XT Nova Scotia NS XS Nunavut NU XV Ontario ON XO Prince Edward Island PE XP Quebec QC XQ Saskatchewan SK XW Yukon YT XY

# Taxpayer Notice Codes (TPNC)

Exhibit 3.12.217-25 Taxpayer Notice Codes (TPNC) The following table provides valid Taxpayer Notice Codes (TPNC) and explanations: TPNC Explanation 10 We found an error in the computation of the tax due or overpayment amount. 36 We found an error in the computation of the credit for federal tax on fuels on Form 4136. 37 We found an error on page 1 of your return when the credit for federal tax on fuels was transferred from Form 4136. 38 We found an error on page 1 of your return when your payment amounts were added. 40 We adjusted your tax return as shown because we did not receive a reply to our request for additional information. 56 We didn't allow the Elective Payment Election (EPE) on Form 3800, General Business Credit, because the registration number was missing or didn't match our records. Valid for Error Code 664 73 We changed the amount for the Elective Payment Election (EPE) because the Form 3800, General Business Credit, Part III, was computed incorrectly. 74 We didn't allow all or part of the credit claimed as clean vehicle credit on your return because one or more of the Vehicle Identification Numbers (VIN) reported on Schedule A (Form 8936), Clean Vehicle Credit Amount, didn't match our records. 88 We changed your telephone excise tax refund amount based on the information you provided. Note: This TPNC is no longer applicable and was used for Tax Periods 200612 - 200711. 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 claimed on your return. We previously sent you a separate letter explaining the claim disallowance. Note: This TPNC is no longer applicable and was used for Tax Periods 200612 - 200711. 90 Fill-in narrative. Note: For a full listing of the programmed TPNC 90 Math Error (ME) codes and information on how to use them, see TPNC 90 Math Error Code Job Aid at TPNC-90-Math-Error-Code-Job-Aid.doc.

# Terms/Definitions/Acronyms

Exhibit 3.12.217-26 Terms/Definitions/Acronyms For Terms, Definitions and acronyms see the following tables: Interpretation Words (Terms) Word Definition Example Fair Accurate and professional service to all persons without regard to personal bias. Taxpayers have the right to expect a fair and just tax system. Significant Characters Any character other than zero or blank. There are any intervening blanks between significant characters. Timely The time frame to consider what is or is not timely. Taxpayers have the right to receive help from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels. Acronyms and Abbreviations Acronyms and Abbreviations Definition AC Action Code ADP Automatic Data Processing AM Accounts Management APO Army Post office AUR Automated Underreporter BMF Business Master File BOY Beginning of Year CADE Customer Account Data Engine C&E Code and Edit CC Command Code CCC Computer Condition Code CDP Collection Due Process CFR Code of Federal Regulations CI Criminal Investigation CII Correspondence Imaging Inventory C/O Care of CP Computer Paragraph CRD Correspondence Received Date CRN Credit Reference Number CVC Clean Vehicle Credit DAN Depositors Account Number DBA Doing Business As DLN Document Locator Number DPO Diplomatic Post Office DPE Deemed payment election DPO Document Perfection Operation EC Error Code EEFax Enterprise Electronic Fax E-File Electronic Filing EIF Entity Index File e.g. For Example EIN Employer Identification Number EOY End of Year EPE Elective payment election ERS Error Resolution System etc. Et Cetera Exam Examination FAX Facsimile FB Foreign Branches FDE Foreign Disregarded Entities FPO Fleet Post Office FRP Frivolous Return Program FTF Failure to File GDP Gross Domestic Product GILTI Global Intangible Low-Taxed Income ICS Integrated Collection System ID Identification or Identity IDRS Integrated Data Retrieval System ISRP Integrated Submission and Remittance Processing ITIN IRS Individual Taxpayer Identification Number IMF Individual Master File IRC Internal Revenue Code LB&I Large Business and International LLC Limited liability Company LLLT Limited liability Land Trust LLP Limited Liability Partner MCCs Major City Codes ME Math Error MeF Modernized Electronic Filing MFT Master File Tax MMDDYY Month Month Day Day Year Year MT Merge To NAICS North American Industry Classification System NAP National Account Profile NDC National Distribution Center NMF Non-Master File N/A Not Applicable NDC National Distribution Center NR Notice Review OAR Operations Assistance Request OC Other Country OID Original Issue Discount OLE On-Line Entity OLNR OnLine Notice Review OSPC Ogden Submission Processing Campus P&A Planning and Analysis PBA Principal Business Activity PDF Portable Document File PIA Principal Industrial Code PDS Private Delivery Service POA Power of Attorney PTIN Preparer Tax Identification Number P.O. Post Office PRP Program Requirements Package PTP Publicly Traded Partnership QSSS Qualified Subchapter S Subsidiary R&C Receipt and Control RDD Return Due Date Rec'd Received Rev. Proc. Revenue Procedure RMIT Remittance RO Revenue officer RPC Return Processing Code RRA98 Restructuring and Reform Act of 1998 RRPS Residual Remittance Processing System RTN Routing Transit Number SB/SE Small Business/Self-Employed SCAMPS Service Center Automated Mail Processing System SERP Servicewide Electronic Research Program (SERP) SFR Substitute for Return SLA Service Level Agreement SOI Statistics of Income SP Submission Processing SSN Social Security Number TAS Taxpayer Advocate Service TBOR Taxpayer Bill of Rights TC Transaction Code TCJA Tax Cuts & Jobs Act of 2017 TDA Type Depositor Account TE Tax Examiner TEFRA Tax Equity and Fiscal Responsibility Act TE/GE Tax Exempt Government Entities TETR Telephone Excise Tax Refund TIA Tax Information Authorization TIF Taxpayer Information File TPE Tax Period Ending TPC Tax Preference Code TPNC Taxpayer Notice Code TS Taxpayer Services Note: Previously Wage and Investment TY Tax Year UCC Uniform Commercial Code U.S. United States USPS United States Postal Service UWR Unified Work Request VIN Vehicle Identification Number ZIP Zoning Improvement Plan