Internal Revenue Manual
IRM 4.10.16 — Examination Operational Automation Database (EOAD)
Part 4. Examining Process
Chapter 10. Examination of Returns Section 16. Examination Operational Automation Database (EOAD) 4.10.16 Examination Operational Automation Database (EOAD) Manual Transmittal July 23, 2024 Purpose (1) This transmits revised IRM 4.10.16, Examination of Returns, Examination Operational Automation Database (EOAD). Material Changes (1) Minor editorial changes have been made throughout this IRM. Also, website addresses and IRM references were reviewed and updated as necessary. (2) Updated exhibits to reflect current codes in effect. (3) IRM 4.10.16.1 added to conform to the new internal control requirements described in IRM 1.11.2, Internal Controls. (4) IRM 4.10.16.2 Wage & Investment division renamed to Taxpayer Services. (5) IRM 4.10.16.2.1 deleted and moved to internal controls. (6) IRM 4.10.16.2.2.1 (2) added telephone number. (7) IRM 4.10.16.2.2.2 (1) added Administrative Issues, Statutory Issue, General Income Issue, and Declassified Issue. (8) IRM 4.10.16.2.2.2 (2) bullet list changed to a table. (9) IRM 4.10.16.2.2.3 (3) a added note for NRP cases. (10) IRM 4.10.16.2.2.3 (3) c added Agreed amount. (11) IRM 4.10.16.2.2.4 (1) added see IRM 4.10.15 for additional information on Form 5344. (12) IRM 4.10.16.2.3 (1) deleted verbiage related to IMS standup and copying cases to external media. (13) IRM 4.10.16.2.4 (1) added state for clarity. Effect on Other Documents This material supersedes IRM 4.10.16, dated March 23, 2016. Audience Employees in the Small Business and Self-Employed (SB/SE), Large Business and International (LB&I), Tax Exempt and Governmental Entities (TE/GE), and Taxpayer Services operating divisions who conduct examinations of income tax returns (Forms 1040, 1120, 1120S, and 1065). Effective Date (07-23-2024) Timothy J. Bilotta Director, Examination Operations, Performance Planning and Analysis Small Business/Self-Employed Division
Program Scope and Objectives
4.10.16.1 (07-23-2024) Program Scope and Objectives Purpose: This IRM section provides guidance on record keeping for examination results and tracks the effectiveness of the examination classification process. Examination Operational Automation Database (EOAD) provides data that tracks examination results by issue. This data is used to enhance the ability to identify specific areas of non-compliance based on examination results and track the effectiveness of the examination classification process. EOAD is used to track examination results for National Research Program (NRP) examinations and analyzed by the Government Accountability Office (GAO) and Treasury Inspector General for Tax Administration (TIGTA) as part of their audits of IRS examination activities. In addition, EOAD data is used to fulfill disclosure of examination results under agreements with state and local taxation agencies. Audience: These procedures apply to all examinations of Individual (Form 1040), Corporate (Form 1120), S Corporation (Form 1120S), and Partnership (Form 1065) returns. Policy Owner: The Director, Examination Planning Performance and Analysis – Small Business/Self Employed is responsible for EOAD. Program Owner: Examination Planning Performance and Analysis – Small Business/Self Employed is the program owner of EOAD. Primary Stakeholders: Taxpayer Services SB/SE LB&I TE/GE Independent Office of Appeals (Appeals) Program Goals: Identify specific areas of non-compliance based on examination results and track the effectiveness of the examination classification process.
Background
4.10.16.1.1 (07-23-2024) Background EOAD electronically extracts data from Report Generating Software (RGS), collected by Correspondence Examination Automation Support (CEAS) and the Issue Management System (IMS) at the time cases are closed electronically.
Authority
4.10.16.1.2 (07-23-2024) Authority Authority and purpose is pursuant to IRC 6103(h)(1) which provides for disclosure of returns and return information to officers and employees of the Department of the Treasury (including IRS) whose official duties require access for tax administration.
Responsibilities
4.10.16.1.3 (07-23-2024) Responsibilities Capture of EOAD data is mandatory for all examinations of Individual (Form 1040), Corporate (Form 1120), S Corporation (Form 1120S), and Partnership (Form 1065) returns. EOAD data must be entered for all examined issues, both adjusted and non-adjusted items, as well as all classified issues including those that are no-changed or subsequently declassified.
Program Management and Review
4.10.16.1.4 (07-23-2024) Program Management and Review Program Reports include: Issue Frequency Report Issue Report No-Change Analysis Report Penalty Amount Report Tax Credit Amount Report Taxpayer Report Program Effectiveness: The data collection process from RGS is tested annually. The closed cases on EOAD are matched against closed cases on the Audit Information Management System (AIMS) monthly to determine the rate of collection of EOAD data. Collection rates below 95% are investigated further to determine if systemic issues are preventing data collection.
Program Controls
4.10.16.1.5 (07-23-2024) Program Controls EOAD relies on the General Support Systems (GSS) common controls associated with the IRS Enterprise Active Directory domain structure to uniquely identify and verify the identity of each user. Direct access to the server is currently limited to the System Administrators and EOAD programmers. Dissemination of EOAD data to internal customers is done via a shared drive controlled by Information Technology (IT). Password protected data files for respective business operating divisions are placed in separate folders on the shared drive. Each data file has a unique password. Requests to access the data are submitted via WebAD\Qwert system and are reviewed by the EOAD business contact. Upon approval, the internal customer is approved for access to the drive. Once access is approved, the mapping instructions and password are shared with the customer.
Terms/Acronyms/Definitions
4.10.16.1.6 (07-23-2024) Terms/Acronyms/Definitions The following table defines terms relevant to this program that are used throughout this IRM section: Terms Term Definition Audit Information Management System (AIMS) The Audit Information Management System is a computer system used by Appeals, Examination, and TE/GE to control returns, to input assessment/adjustments into the Master File and to provide management reports. IRM 4.4 covers Examination's use of AIMS and describes the data elements for AIMS. Internal Revenue Code (IRC) The Internal Revenue Code is prepared and published by the Office of the Law Revision Counsel ("OLRC") of the U.S. House of Representatives pursuant to 2 U.S.C. 285b. The Code contains the general and permanent laws of the United States, organized into titles based on subject matter. Issue Management System (IMS) The Issue Management System is an electronic case management application for examiners, specialists, managers and others. IMS is a program that uses 2 different interfaces. One is a Web based application that requires no program installation and the other is a client-based application requiring installation by Information Technology. It supports existing and new examination processes. The application provides the Estate and Gift Tax program with case management tools needed to support planning, selection and examination. IMS is an official electronic record-keeping system used to store federal electronic records. Report Generating Software (RGS) RGS is a audit software program that is used by Examination, it supports an electronic case file and is used from pre-audit through case closure. Standard Audit Index Number (SAIN) The SAIN is a numbering system for examination issues. Uniform Issue List (UIL) The Uniform Issue List is a list of codes used to track examination issues for various reports. The following table defines acronyms frequently used throughout this IRM section: Acronyms Acronym Definition AIMS Audit Information Management System BMF Business Master File CCP Centralized Case Processing CEAS Correspondence Examination Automation Support EOAD Examination Operational Automation Database GAO Government Accountability Office GSS General Support Systems IIC International Individual Compliance IMF Individual Master File IMS Issue Management System IT Information Technology LAN Local Area Network LB&I Large Business & International MFT Master File Tax NAICS North American Industry Classification System NRP National Research Program PBA Primary Business Activity POD Post of Duty RGS Report Generating Software SAIN Standard Audit Index Number(s) SB/SE Small Business/Self-Employed SSSN Secondary Social Security Number TE/GE Tax-Exempt and Government Entities TIGTA Treasury Inspector General for Tax Administration TIN Taxpayer Identification Number UIL Uniform Issue List
Related Resources
4.10.16.1.7 (07-23-2024) Related Resources The following IRMs are related to workpapers and reports: IRM 4.10.9, Workpaper System and Case file Assembly IRM 4.10.15, Examination of Returns, Report Generation Software (RGS) IRM 4.46.6, LB&I Examination Process, Workpapers and Reports Resources IRM 1.1.16.6.1.6, Examination System and Projects IRM 1.1.16.5.4.3, Examination Data Management (EDM)
Examination Operational Automation Database (EOAD)
4.10.16.2 (07-23-2024) Examination Operational Automation Database (EOAD) EOAD provides data that tracks examination results by issue. This data is used to enhance the ability to identify specific areas of non-compliance based on examination results and track the effectiveness of the examination classification process. EOAD is used to track examination results for NRP examinations and analyzed by GAO and TIGTA as part of their audits of IRS examination activities. In addition, EOAD data is used to fulfill disclosure of examination results under agreements with state and local taxation agencies. Therefore, it is important that data inputs are accurate. Data is captured by Small Business/Self-Employed (SB/SE), Large Business & International (LB&I), and Taxpayer Services examiners for examinations of all Forms 1040, 1120, 1120S, and 1065 using Report Generation Software (RGS) and Issue Management System (IMS) software. The focus of this IRM is on data entries in RGS and IMS that are captured by EOAD but generally do not affect tax computations. It is very important that examiners take great care in properly entering EOAD data since there is no subsequent review process to correct EOAD errors.
Capture of EOAD Data Using RGS
4.10.16.2.1 (04-26-2011) Capture of EOAD Data Using RGS EOAD data is captured by RGS from examiners' inputs on the following screens in RGS: Create Case screen Case Information screen Contacts screen Issue screen Tax Computation (IMF) and Create Report (BMF) screens Form 5344 Compliance Evaluation screen
Create Case, Case Information, and Contacts Screens
4.10.16.2.1.1 (07-23-2024) Create Case, Case Information, and Contacts Screens Create Case screen - the following data is captured: Taxpayer identification number (TIN) Secondary social security number (SSSN) Form type Master file tax (MFT) code Tax period Source code Activity code Project code Tracking code Post of duty (POD) code Audit Information Management System (AIMS) assignee codes Case Information screen - the following data is captured: Name Telephone number Address Filing state code Filing zip code Based on the examiner's inputs in: Return due date Extended due date Received date Substitute for return checkbox RGS will generate a delinquency indicator for EOAD to indicate: The return was filed timely A valid extension was filed The return was delinquent (filed late) A return was not filed (i.e. substitute for return cases) Contacts screen - captures identification and contact information for the return preparer and representative(s). The proper completion of this information allows the ability to identify and address egregious return preparers.
Issue Selection Screen
4.10.16.2.1.2 (07-23-2024) Issue Selection Screen The examiner creates issues in RGS using the drop down "Actions" menu to select the option that best describes the issue. The menu options are: Administrative Issues - Are automatically created by RGS (can also be added manually if necessary). Administrative lead sheets automatically insert into administrative issues. New Issue – This is an issue that has been identified by the examiner who has determined that it warrants additional inspection. New Issues are not Classified Issues nor are they directly related to a Classified Issue. Classified Issue – This is an issue that has been identified through the issue classification process and appears on a Classification Check Sheet. All Classified Issues must be added and commented upon even if they are subsequently declassified. If a Classified Issue is declassified, check the declassified box on the issue adjustment screen. Add an adjustment record with the issue categorized as though it was examined. Enter the issue amount from the return in both the Per Return and Per Exam fields and select a Declassified Issue Reason Code. New Issue Resulting From Classified Issue – This is an issue that can be directly traced back to a classified issue. For example, a classified balance sheet item could lead to one or more profit and loss items. These subsequent Profit and Loss issues would be identified as New Issue Resulting From Classified Issue. Statutory Issue – This issue is created by RGS when a tax computation is run. These issues cannot be deleted and are assigned a "Reference" code of 599. General Income Issue -This issue is created by RGS from examiner entries in "General Income" on the 1040 workcenter. These issues are assigned a "Reference" code in the 5xx series. Declassified Issue - This issue is created by the examiner declassifying a classified issue. Note: Issues from different lines on a tax return must be created separately using the appropriate issue code and should not be combined. Once an issue is added, the examiner uses a pull-down menu in the IMF Code field to identify the issue. See Exhibit 4.10.16-1 for a complete list of IMF Issue Codes. The initial drop down menu selections are: Menu Selection Definition Form 1040 Exemptions and Income Self-explanatory Form 1040 Taxes and Credits Self-explanatory Premium Tax Credit and Health Care Self-explanatory Schedule A Self-explanatory Schedule C Self-explanatory Schedule D Self-explanatory Schedule E Self-explanatory Schedule F Self-explanatory Form 2106 Self-explanatory Generic Income, Expense and Tax Credits Self-explanatory 999999 - Statutory Adjustment Self-explanatory 699999 - Impact of DeMinimus Issues Self-explanatory Campus/Service Center Self-explanatory 4NRP - Q Table Self-explanatory 99999 - Change/No Change Self-explanatory Miscellaneous Issues Self-explanatory BMF issues are identified using the drop down menus in the SAIN, Standard Audit Index Number, field. See Exhibit 4.10.16-2, and Exhibit 4.10.16-3, respectively, for complete lists of sub-chapter S and partnership SAIN Codes. See IRM 4.46.6, LB&I Examination Process, Workpapers and Reports Resources, for a complete list of Corporate SAIN codes.
Issue Adjustment Screen
4.10.16.2.1.3 (07-23-2024) Issue Adjustment Screen Once issues are identified, the Issue Adjustment screen is accessed using the "Add" function box. To promote accuracy and reduce time spent, EOAD fields should be completed concurrently with the examination of issues to the greatest extent possible. The following fields are captured by EOAD on the Issue Adjustment screen: Categorization - this selection determines how RGS will calculate the tax resulting from the adjustment. "The RGS Issue Reference Guide" is available for download at the Exam System Knowledge Base. This guide provides detailed instructions to examiners on how to properly categorize an adjustment based upon the IMF Issue Code selection to ensure RGS performs a proper tax calculation and that accurate EOAD data is captured. Note: For NRP Cases follow the NRP Issue Reference Guide located on the NRP Website -https://nrp.web.irs.gov/training.html#tab=tab1. Per return, Per exam amounts. Agreed amount - is the amount of the adjustment the taxpayer agrees with. If the taxpayer does not agree to all or part of the adjustment, modify or remove the agreed amount. Reason Code – a two-digit code that identifies the reason for the adjustment, why the issue was no changed, or declassified. The examiner should follow the drop down menus in RGS to select the code that best describes the reason the issue was or was not adjusted. See Exhibit 4.10.16-4. Note: Adjustments to Earned Income Credit issues or originating from Flow Through Entities require the selection of specific Reason Codes. Reason Codes for adjustments from Flow Through Entities are further divided to identify the Flow Through case as either NRP or Non NRP. For all other issues, select the code that best fits the reason the issue was or was not adjusted. Uniform Issue List (UIL) Code - SB/SE examiners are not required to complete this field. Rental Type Code – This field is completed for Form 1040 - Schedule E Rental Issues only in RGS. The drop down menu for this field is only activated on issues with Schedule E Rental IMF Issue Codes. Select the code that best describes the rental from the categories Residential, Vacation, or Commercial Rental. See Exhibit 4.10.16-5 for a complete list of Rental Type Codes. PBA/NAICS Code Per Return (Issue) – For all Form 1040 Schedule C or F and all Forms 1065, 1120, and 1120S issues, this field should be completed to reflect the code as reported by the taxpayer. The North American Industry Classification System (NAICS) will be used for returns for tax periods after 199811. The Primary Business Activity (PBA) Codes will be used for tax periods prior to 199812. The four-digit PBA Code should be expanded to six digits by placing two zeroes (00) before the code. PBA/NAICS Code Per Exam (Issue) – For all Form 1040 Schedule C or F and all Forms 1065, 1120, and 1120S issues, enter the NAICS code from the series of pull-down menus that best identifies the type of business for the issue being examined. NAICS codes will be used for returns for tax periods after 199811. PBA codes will be used for tax periods prior to 199812. The four-digit PBA code should be expanded to six digits by placing two zeroes (00) before the code. Code "000000" should be selected for issues involving Form 1040 Schedule E income subject to self-employment tax. Note: If the examiner is fully disallowing the schedule or return, such as in an IRC 183 adjustment, they should choose "D" to remove the NAICS code.
Completion of RGS Tax Computation and Form 5344
4.10.16.2.1.4 (07-23-2024) Completion of RGS Tax Computation and Form 5344 Before the Compliance Evaluation Screen can be completed certain RGS actions must be taken. The tax computation must be completed using RGS and all required fields in the RGS Form 5344 must be completed. Then the Form 5344 must be validated. See IRM 4.10.15, Examination of Returns, Report Generation Software (RGS) for additional information on Form 5344.
Completion of the Compliance Evaluation Screen
4.10.16.2.1.5 (01-02-2013) Completion of the Compliance Evaluation Screen PBA/NAICS Code Per Return – This code reflects the principal business of the taxpayer and can be found on the return. In the case of Forms 1040 with multiple Schedules C or F, it is the code for the schedule with largest gross receipts per the return. North American Industry Classification System (NAICS) codes will be used for returns for tax periods after 199811. Primary Business Activity (PBA) codes will be used for tax periods prior to 199812. The four-digit PBA code should be expanded to six digits by placing two zeroes (00) before the code. PBA/NAICS Code Per Exam – This is the corrected code, based on the examiner's determination for the principal business of the taxpayer. In the case of Forms 1040 with multiple Schedules C or F, it is the code for the schedule with largest gross receipts after completion of the examination. RGS provides a series of pull-down menus to assist the examiner in selecting the correct code. NAICS codes will be used for returns for tax periods after 199811. PBA codes will be used for tax periods prior to 199812. The four-digit PBA code should be expanded to six digits by placing two zeroes (00) before the code. Primary Occupation Code (Form 1040 only) – This is a three-digit code that identifies the occupation of the taxpayer with the largest source of wage income for the year being examined. This code should be selected based on the taxpayer's largest source of wage income per exam regardless of whether the largest source is from the primary or secondary taxpayer. This field will be completed where the taxpayer is both a wage earner and self-employed. If no wages are earned, no code is entered. RGS provides a series of pull-down menus to assist the examiner in selecting the correct code. Amount Paid at Closing – This is the total amount paid for the applicable tax period at the time the examination was concluded or before the examination case is closed from the group. Study Type – This field will be left blank currently. It is a three-digit field that will be used to track cases for special surveys or research studies (not the same as current project codes). Upon completion of all fields, the Compliance Evaluation screen must be validated, saved, and printed. The printed copy must be placed in the case folder on top of the case file.
Forwarding EOAD Data using RGS
4.10.16.2.1.6 (03-23-2016) Forwarding EOAD Data using RGS SB/SE and LB&I, International Individual Compliance (IIC) examiners will forward all closed cases by Local Area Network - Report Generating Software (LAN-RGS) unless that functionality is unavailable. The EOAD data is included in the electronic case file by the forwarding process. Forms 1040, 1120, 1120S, and 1065 examinations which could not be completed using LAN-RGS must be notated as such on the Form 3198, Special Handling Notice for Examination Case Processing. Any cases not fulfilling the requirements of IRM 4.4.12.11, EOAD Data Capture Procedures, will be returned to the originating examination group.
Capture of EOAD Data Using IMS
4.10.16.2.2 (07-23-2024) Capture of EOAD Data Using IMS The IMS system captures the EOAD data in a format that can be shared with state and local taxation agencies. EOAD data is automatically extracted by IMS at case closure based upon examiners' inputs on various IMS screens. Instructions detailing the proper input of data in IMS can be found in the IMS Client program. For cases completed using IMS, EOAD data is included in the electronic case file by the forwarding process.
Forwarding EOAD Manually - Centralized Case Processing (CCP) Responsibility
4.10.16.2.3 (07-23-2024) Forwarding EOAD Manually - Centralized Case Processing (CCP) Responsibility If a disclosure is made to a state agency whose code is manual or not compatible with AIMS, or if the disclosure is of Non-Master File (NMF) information, the reporting will be done manually by preparing Form 5466-B, Multiple Record of Disclosure. Additional information regarding disclosure reporting requirements can be found at IRM 11.3.37, Record keeping and Accounting for Disclosures. State agency codes can be found in IRM Exhibit 11.3.37-4, State Agency Codes. Instructions for Form 5466-B, preparation can be found at IRM Exhibit 11.3.37-6, Multiple Record of Disclosure.
IMF Issue Codes
Exhibit 4.10.16-1 IMF Issue Codes Code Issue 41007 Wages, Salaries and Tips, etc. 41008 Taxable Interest 41009a Ordinary Dividends 41009b Qualified Dividends 41010 State Refunds, Credits, or Offsets 41011 Alimony Income 41014 Other Gains or Losses From Form 4797 41015 IRA Distributions 41016 Pensions and Annuities 41019 Unemployment Compensation 41019a Unemployment Compensation Exclusion 41020 Social Security Benefits 41021 Other Income 41021a Form 2555 Foreign Income 41021b NOL Carryback 41021c NOL Carryforward 41021d MSA Taxable Payments 41021e MED+MSA Taxable Payments 41021f LTC Taxable Payments 41021g Form 4563 Income 41021h Income Excluded from Puerto Rico 41021i HSA Taxable Distributions 41021j HSA Qualified Distributions 41021k Gambling Winnings 41021I Section 461(I) Excess loss 41021m Net Section 965 Inclusion 41021n GILTI (Global Intangible Low-Taxed Income) 41021o Section 962 Election 4CX01 Sch C - Gross Receipts or Sales 4CX01a Sch C - Gross Receipts/Sales Merch/3rd Party 4CX01b Sch C - Other Gross Receipts or Sales 4CX01c Sch C - Income Reported on Form W-2 4C101z Sch C-EZ - Gross Receipts 4CX02 Sch C - Returns and Allowances and Oth. Adj. 4CX06 Sch C - Other Income 4CGL Schedule C Net Gain/Loss 4D001 Sch D - Short-Term Gain/Loss 4D004 Sch D - ST Gain/Loss - Forms 6252/4684/6781/8824 4D005 ST Gain/Loss-Prtnrship/S-Corp/Estate/Trust - Sch K1 4D006 Sch D - Short-Term Capital Loss Carryover 4D008 Sch D - Long-Term Gain/Loss 4D011 Sch D - LT Gain/Loss-4797/2439/6252/4684/6781/8824 4D012 LT Gain/Loss-Prtnrship/S-Corp/Estate/Trust - Sch K1 4D013 Capital Gain or Loss Where Sch D Not Required 4D013d Capital Gain Distribution 4D014 Sch D - Long-Term Capital Loss Carryover 4EX03 Sch E - Rents Received 4EX03a Sch E - Merchant Card/3rd Party Payments Received 4EX03b Sch E - Other Payments Received 4EX04 Sch E - Royalties Received 4EX23 Sch E - Real Estate Loss After Passive Limitation 4E131 Sch E - Inc/Loss-Prtnrship/S Corps-Passive/Non-Passive 4E136 Sch E - Inc/Loss-Estates/Trusts-Passive/Non-Passive 4E138 Sch E - REMIC Income or Loss 4E139 Sch E - Net Farm Rental Income or Loss 4FX01 Sch F - Sales-Livestock/Oth. Items Purch for Resale 4FX01a Sch F - Specified Sales-Livestock/Other Resale 4FX01b Sch F - Other Sales-Livestock/Other Resale 4FX02a Sch F - Specified Sales of Raised Products 4FX02b Sch F - Other Sales of Raised Products 4FX04 Sch F - Sales-Raised Livestock/Produce/Grains/etc. 4FX05 Sch F - Cooperative Distributions 4FX06 Sch F - Agricultural Program Payments 4FX07a Sch F-Commodity Credit Corporation Loans Reported 4FX07b Sch F-Commodity Credit Corporation Loans Forfeited 4FX08 Sch F - Crop Insurance and Disaster Payments 4FX08a Sch F - Spec. Custom Hire (Machine Work) Income 4FX08b Sch F - Other Custom Hire Income 4FX09 Sch F - Custom Hire (Machine Work) Income 4FX09a Sch F - Other Specified Income 4FX10 Sch F - Other Income 4FGL Schedule F Net Gain/Loss 4NRP Q Table 4TH01 Other Write in Income 4Z101a Sch C-EZ-Gross Receipts/Sales Merch/3rd Party 4Z101b Sch C-EZ-Other Gross Receipts or Sales 4Z101c Sch C-EZ-Income Reported on Form W-2 51006a Exemptions-Self/Spouse 51006c Dependent Children-Live with Taxpayer 51006d Dependent Children-Do Not Live with Taxpayer 51006e Dependent-Parents 51006f Dependent-Other 51006g Dependent-Other Displaced Individual 51023 IRA Deduction 51024 Student Loan Interest Deduction 51025 Archer MSA Deduction 51026 Moving Expenses 51027 Deductible Part of SE Tax 51028 Self-Employed Health Insurance 51029 Self-Employed SEP, Simple, and Qualified Plans 51030 Penalty on Early Withdrawal of Savings 51031 Alimony Paid 51032 Educator Expenses 51033 Tuition and Fees Deduction 51035 Domestic Production Activities Deduction (F8903) 51036 Standard Deduction 51036a Charitable Contributions for Standard Deduction 51037 Other Adjustments Affecting AGI 51037a "WBF" for the Deduction for Whistleblower Fees 51037b Jury Duty Fees 51037c Foreign Income Housing Deduction 51037d Personal Property Rental Expenses 51037e Reforestation Amortization 51037f Repayment of Supplement Unemployment Benefits 51037g Contributions to Section 501(c) Plans 51037h Contributions to Section 403(b) Plans 51037i Deduction for Clean-fuel Vehicles 51037j Unlawful Discrimination Claim Fees 51038 Certain Business Expenses from F2106(EZ ) 51039 Health Saving Account Deduction (F8889) 51040 Qualified Business Income Deduction (QBID) 52101 Vehicle Expense 52102 Parking/Tolls/Transportation - Not Away From Home 52103 Travel Expense - Away From Home Overnight 52104 Other Business Expenses 52105 Meals and Entertainment 52107 Expense Reimbursement – Not Reported 5A001 Medical and Dental 5A003 Medical and Dental AGI Percentage 5A005a State and Local Income Taxes 5A005b State and Local General Sales Taxes 5A006 Real Estate Taxes 5A007 Personal Property Taxes 5A008 Other Taxes 5A009 Qualified Motor Vehicle Taxes 5A010 Home Mortgage Interest and points From Form 1098 5A011 Home Mortgage Interest Not From Form 1098 5A012 Points Not From Form 1098 5A013 Investment Interest 5A014 Qualified Mortgage Insurance Premiums 5A015 Cash Contributions 5A016 Non-Cash Contributions 5A017 Contributions Carryover 5A019 Casualty and Theft Loss 5A020 Other Unreimbursed Employee Expenses 5A021 Tax Preparation Fees 5A022 Other Expenses Subject to 2% AGI Limitation 5A027 Other Miscellaneous Deductions 5A028 Gambling Losses 5CX04 Sch C - Cost of Goods Sold 5CX08 Sch C - Advertising 5CX09 Sch C - Bad Debts From Sales or Services 5CX10 Sch C - Car and Truck Expenses 5CX11 Sch C - Commissions and Fees 5CX12 Sch C - Depletion 5CX13 Sch C - Depreciation and Sec. 179 Expense 5CX14 Sch C - Employee Benefits Programs 5CX15 Sch C - Insurance (Other Than Health) 5CX16a Sch C - Interest - Mortgage 5CX16b Sch C - Interest - Other 5CX17 Sch C - Legal and Professional Services 5CX18 Sch C - Office Expenses 5CX19 Sch C - Pension and Profit-Sharing Plans 5CX20a Sch C - Rent/Lease - Vehicles/Machinery/Equip. 5CX20b Sch C - Rent/Lease - Other Business Property 5CX21 Sch C - Repairs and Maintenance 5CX22 Sch C - Supplies 5CX23 Sch C - Taxes and Licenses 5CX24a Sch C - Travel 5CX24b Sch C - Meals and Entertainment 5C124c Sch C-EZ-Optnl Non-Deductible Meals/Entertainment 5C124z Sch C-EZ-Optional Meals & Entertainment 5CX25 Sch C - Utilities 5CX26 Sch C - Wages 5CX27 Sch C - Other Expenses 5CX30 Sch C - Expenses for Business Use of Home 5CX35 Sch C - Beginning Inventory 5CX36 Sch C - CGS - Purchases 5CX37 Sch C - CGS - Cost of Labor 5CX38 Sch C - CGS - Materials and Supplies 5CX39 Sch C - CGS - Other Costs 5CX41 Sch C - Ending Inventory 5C150 Sch C-EZ - Total Expenses – Lines 2a/2b not used 5C150z Sch C-EZ - Optional Other Expenses 5CX60 Sch C - Contract labor 5EX05 Sch E - Advertising 5EX06 Sch E - Auto and Travel 5EX07 Sch E - Cleaning and Maintenance 5EX08 Sch E - Commissions 5EX09 Sch E - Insurance 5EX10 Sch E - Legal and Other Professional Fees 5EX11 Sch E - Management Fees 5EX12 Sch E - Mortgage Interest 5EX13 Sch E - Other Interest 5EX14 Sch E - Repairs 5EX15 Sch E - Supplies 5EX16 Sch E - Taxes 5EX17 Sch E - Utilities 5EX18 Sch E - Other Expenses 5EX20 Sch E - Depreciation Expense or Depletion 5EX21 Sch E - Royalty Expenses 5FX01d Sch F - Cost/Other Basis of Livestock/Other 5FX02 Sch F - Cost/Oth. Basis of Livestock&Oth. Items-Ln1 5FX12 Sch F - Car and Truck Expenses 5FX13 Sch F - Chemicals 5FX14 Sch F - Conservation Expenses 5FX15 Sch F - Custom Hire (Machine Work) 5FX16 Sch F - Depreciation and Section 179 Expense 5FX17 Sch F - Employee Benefit Programs 5FX18 Sch F - Feed Purchases 5FX19 Sch F - Fertilizer and Lime 5FX20 Sch F - Freight and Trucking 5FX21 Sch F - Gasoline, Fuel, and Oil 5FX22 Sch F - Insurance (Other Than Health) 5FX23a Sch F - Interest - Mortgage 5FX23b Sch F - Interest - Other 5FX24 Sch F - Labor Hired 5FX25 Sch F - Pension and Profit-Sharing Plans 5FX26a Sch F - Rent/Lease - Vehicles/Machinery/Equipment 5FX26b Sch F - Rent or Lease - Other 5FX27 Sch F - Repairs and Maintenance 5FX28 Sch F - Seeds and Plants Purchased 5FX29 Sch F - Storage and Warehousing 5FX30 Sch F - Supplies Purchased 5FX31 Sch F - Taxes 5FX32 Sch F - Utilities 5FX33 Sch F - Veterinary, Breeding and Medicine 5FX34 Sch F - Other Expenses 5FX46 Sch F - Beginning Inventory 5FX49 Sch F - Ending Inventory 5TH01 Other Deduction/Expense 61001 Filing Status 61040a Tax from Form 8814 61040b Tax from Form 4972 61040c Other Write-ins to Tax 61041 Alternative Minimum Tax 61042 Additional Taxes 61043 Foreign Tax Credit 61044 Child or Dependent Care Credit 61045 Elderly or Disabled Credit 61046 Education Credit - Issue Name must be a SSN 61047 Rate Reduction Credit 61048 Child Tax Credit 61048a Credit for Other Dependents 61049 Adoption Credit From Form 8839 61050 Other Credits Not From Forms 3800, 8396, 8801, 8859 61050a Other Credits From Form 3800 61050b Other Credits From Form 8801 61050c Other Credits From Form 8396 61050d Other Credits From Form 8859 61050e Section 45R Credit for Health Care 61050f Clean Vehicles Credit (Form 8936) 61050g Previously Owned Clean Vehicles Credit (Form 8936) 61051 Retirement Savings Contribution Credit 61052 Residential Energy Credit From Form 5695 61052a Residential Clean Energy Credit (Form 5695) 61052b Energy Efficient Home Improvement Credit (Form 5695) 61053 Self-Employment Tax 61054 SS and Medicare Tax on Tip Income From Form 4137 61055 Tax on Qualified Plans 61056 Advance Earned Income Credit payments 61057 Household Employment Taxes 61058 Uncollected SS & Medicare Tax on Wages (F8919) 61059 W-2/1099 Federal Income Tax Withholding 61060 Est. Tax Pymts/Pr Yr Overassessment - not posted 61061 Earned Income Tax Credit 61061b NonTaxable Combat Pay Election 61062 Excess Social Security and RRTA Tax Withheld 61063 Additional Child Tax Credit 61063a Refundable Child Tax Credit 61064 Amt Paid w/Extension to File - not posted to TP's Acct 61065 Frozen Refund 61065a Form 2439 61065b Form 4136 61065c Form 8885 61065d Form 8801, Refundable Credit 61065e Other Write-ins to Refundable Credits 61065f Qualified Sick/Family Leave Credits 61065g Deferral for Certain Sch H or SE filers 61065h Refundable Child or Dependent Care Credit 61065i Claim of Right Credit 61066 Other Taxes 61066a FTHBC Recapture 61066b Taxes from Form 8959 61066c Taxes from Form 8960 61066d Section 965 Net Tax Liability from Form 965-A 61066e Additional Tax from Schedule 8812 61067 Making Work Pay/Govt Retiree Credit 61068 Refundable American Opportunity Credit 61069 First-time Homebuyer Credit From Form 5405 61070 Recovery Rebate Credit 61070a Recovery Rebate Credit (CARES Act) 61071 Federal Telephone Excise Tax Credit 61072 Refundable Adoption Credit 62001 Health Care - Shared Responsibility Payment 62002 Premium Tax Credit (PTC) 62003 Excess Advance PTC (APTC) Repayment 62401 Accuracy Related Penalty - 6662 62402 Fraud Penalty - 6663 62403 Delinquency Penalty - 6651 62404 Estimated Tax Penalty - 6654 62405 Promoter Penalties 62406 Erroneous Claim for Refund or Credit Penalty - 6676 62410 Other Penalties (includes FBAR) 699999 Impact of DeMinimus Issues 6TH01 Other Tax/Credit 76150 User Specified 1 (Issue name and 4318 description required) 76200 User Specified 2 (Issue name and 4318 description required) 76250 User Specified 3 (Issue name and 4318 description required) 76300 User Specified 4 (Issue name and 4318 description required) 76350 User Specified 5 (Issue name and 4318 description required) 76400 User Specified 6 (Issue name and 4318 description required) 76450 User Specified 7 (Issue name and 4318 description required) 7C10X Sch C-1 - IRC 183 7C1F Sch C-1- Accounting Method 7EX0X Sch E - IRC 183 7FX0X Sch F - IRC 183 7FXC Sch F - Accounting Method 99999 Change/No Change 999999 Statutory Adjustment Note: For all the Schedule C, Schedule E, and Schedule F issues, the IMF Code displays an X to indicate the number of the schedule being adjusted, for example, 4C101, 4C201 or 4C301.
Sub Chapter S SAIN Codes
Exhibit 4.10.16-2 Sub Chapter S SAIN Codes Code Issue 000 Issue does not exist 001 Precontact Analysis 002 Pre - Exam Conference 003 Preliminary Examination Time 004 Preparing Examination Plan 005 Coordination 006 Travel Time 007 Report Preparation 008 Examination Critique 009 Meetings 010 Review Protest / Prepare Rebuttal 010-01 Fast Track 011 Penalty Consideration 012 Form 5699 (Information Document Request Log) 013 Issue Control Sheet - Form 5701 (Notice of Proposed Adjustments) 014 Referrals to Specialists 015 Financial Interest 016 Correspondence 017 POA / Form 8821 (Tax Information Authorization) 018 Statute of Limitations 020 Prior Revenue Agent Report 021 Prior Appeals Report 022 Joint Committee Reports 024 Risk Analysis 030 Administrative Lead Sheet 031 LB&I Quality Measurement System Check Sheet 032 LB&I Joint Audit Planning Process Tool 033 Pre-audit Interview History Lead Sheet 034 Examiner's RRA 98 Compliance Guide 035 Team Manager Check Sheet 060 Claims 061 Self-Audit Adjustments (Affirmative Adjustments) 080 Planning File 100 Balance sheet (no balance sheet attached) 101 Cash 102 Trade notes & accounts receivable 102-01 Allowance for Bad Debts 103 Inventories 104 U.S. government obligations 105 Tax-exempt securities 106 Other current assets 107 Loans to shareholders 107-01 Loans to persons related to shareholders 108 Mortgage & real estate loans 109 Other investments 110 Buildings & other depreciable assets 110-01 Accumulated depreciation 111 Depletable assets 111-01 Accumulated depletion 112 Land (net of any amortization) 113 Intangible assets 113-01 Accumulated amortization 114 Other assets 216 Accounts payable 217 Mortgages, notes, bonds payable in less than 1 year 218 Other current liabilities 218-01 Related Party Accruals 219 Loans from shareholders 219-01 Loans from persons related to shareholders 220 Mortgages, notes, bonds payable in 1 year or more 221 Other liabilities 322 Capital stock 323 Additional paid-in capital 325 Retained earnings 325-01 Reconciliation of retained earnings 326 Cost of treasury stock 327 Adjustment to shareholders' equity 401 Gross receipts or sales 401-01 Sales to related entities 401-02 Merchant card and third party payments 402 Returns and allowances 409 Net gain (loss) from Form 4797, Part II 410 Other income (loss) 410-01 Partnership income (loss) (Tiered Entity) 410-02 Cancellation of Debt Income 502 Cost of goods sold (No Sch. A or F1125-A detail) 502-01 Inventory (Beginning) 502-02 Purchases 502-03 Cost of labor 502-04 Additional IRC 263A costs 502-05 Other costs 502-10 Inventory (Ending) 512 Compensation of officers 513 Salaries & wages 514 Repairs & maintenance 515 Bad debts 516 Rents 517 Taxes & licenses 518 Interest 519 Charitable contributions 520 Depreciation 521 Depreciation (other than page 1 Form 1120S) 522 Depletion 523 Advertising 524 Pension, profit sharing plans, etc. plans 525 Employee benefit programs 526 Other deductions (no schedule attached) 526-01 Administrative fees 526-02 Amortization 526-03 Automobile expense 526-04 Bonus expense 526-05 Consulting fees 526-06 Contract labor 526-07 Commissions 526-08 Computer expense 526-09 Dues & subscriptions 526-10 Education expenses 526-11 Equipment rental 526-12 Fringe benefits 526-13 Fuel expense 526-14 Gifts & awards expenses 526-15 Insurance expenses 526-16 Janitorial services 526-17 Leasing expense 526-18 Legal & professional fees 526-19 License & permit expenses 526-20 Maintenance & cleaning 526-21 Management & director fees 526-22 Meals & entertainment 526-23 Meeting, seminars & conventions 526-24 Miscellaneous expenses 526-25 Other expenses 526-26 Outside services 526-27 Postage & courier expense 526-28 Proposal or bidding expense 526-29 Public relations expense 526-30 Publication expense 526-31 Recruiting & training 526-32 Research & development 526-33 Royalty expense 526-34 Security expense 526-35 Shipping, freight & handling 526-36 Supplies - office 526-37 Supplies - tools & factory 526-38 Telephone expense 526-39 Travel expense 526-40 Utility expense 527 Domestic Production Activities 528 Schedule M-1 (Book vs. Tax) 528-01 Schedule M-2 (AAA Analysis) 528-02 Schedule M-2 (Other Adjustments Account Analysis) 528-03 SH Undistributed PTI 531 Energy Efficient Commercial Buildings 604-10 IRC 45R credit for health care 610-04 Lookback Interest 622-01 Excess net passive income tax 622-02 Tax from Schedule D (Built-In Gains) 622-03 Additional taxes - LIFO reserve recapture tax 622-04 Qualified opportunity fund - Form 8996 623-01 Payments 623-02 Tax deposits 623-04 Refundable credit - Form 8827, Line 8c 623-05 Other write-ins to refundable credits 623-06 Fuel tax credit 623-07 Telephone Excise Tax credit 624-01 Accuracy Related Penalty - IRC 6662 624-02 Fraud Penalty - IRC 6663 624-03 Delinquency Penalty - IRC 6699 624-04 Estimated Tax Penalty - IRC 6655 624-05 Promoter Penalties 624-10 Other penalties (includes FBAR) 625 BBA AAR imputed underpayment 633 Interest due under the look-back method - completed long term contracts 634 Interest due under the look-back method - income forecast method 701 Minutes & other records 703 Acquisitions, mergers & reorganizations 703-01 Schedule M-2 706 IRC 482 potential 707 Method of accounting 708 Initial return 709 Final return 710 Related party transactions 713 Mandatory compliance checks 713-01 Related returns 713-02 Prior & subsequent returns 713-03 Minimum inventory checks 713-04 Minimum income probe 713-05 Other filing checks 723 Changes in ownership 724 TEFRA/BBA/ILSC 725 Character of income (separately stated items) 726 Potentially abusive schemes 726-01 Form 8275 disclosure statement 726-02 Form 8886 reportable transaction 726-03 Transaction lacks economic substance 727 Termination or Invalid S Election 728 Reconcile Schedule K-1 to Schedule K 729 Losses and deduction claimed in excess of stock and debt basis 730 Passive activity losses and material participation 731 IRC 465 - at risk limitation 732 Corporate level limits 743 IRC 183 - hobby loss 801 Statistical sampling procedures 802–01 Computer audit specialist (CAS) 802–02 Employment tax examiner 802–03 International examiner 802-04 Engineer 802–05 Exempt organization examiner 802–06 Excise tax examiner 802-07 Financial products examiner 802-08 Economist 802–09 Actuary 802–10 Employee Plans 802-11 Appraisers 802–12 Exam Tech/Audit Aides 802–13 Contracting Officer's Technical Representative (COTR) 802–14 Tax Computation Specialist 803–01 Life insurance examiner 803–02 Property & Casualty insurance examiner 804 Other Classified Issue 1 805 Other Classified Issue 2 806 Other Classified Issue 3 807 Other Classified Issue 4 808 Other Classified Issue 5 809 Other Classified Issue 6 901-01 Ordinary income (loss) from trade or business 902 Net income (loss) from rental real estate 903 Other Gross Rental Income 903-01 Expenses from other rental activities 904-01 Interest income 904-02 Dividend income 904-03 Qualified dividend income 904-04 Royalty income 904-05 Net short-term capital gain (loss) 904-06 Net STCG / loss (>5-3-03) '03 only 904-07 Net long-term capital gain (loss) 904-08 Net LTCG / loss (28%) 904-09 Net LTCG / loss (5 Year) 904-10 Net LTCG / loss (>5-3-03) '03 only 904-11 Other portfolio income (loss) 904-12 Unrecaptured IRC 1250 gain 905 Net IRC 1231 gain (loss) from Form 4797 905-01 Net IRC 1231 gain (loss) (>5-3-03) '03 only 906 Other income (loss) 908 IRC 179 expense deduction 909 Deductions related to portfolio income 910 Other deductions 911 Interest expense on investment debts 911-01 Investment income (portfolio income) 911-02 Investment expenses (portfolio income) 912-01 Credit for alcohol used as a fuel 912-02 Low income housing credit IRC 42(j)(5) 912-03 Low income housing credit - other 912-06 Qualified rehab expense - rental activity 912-07 Credits - rental real estate activities 912-08 Credits - other rental activities 913 Other credits and credit recapture 914-01 AMT - Depreciation adjustment 914-02 AMT - Adjusted gain (loss) 914-03 AMT - Depletion (other than oil and gas) 914-05 AMT - Gross inc. - oil/ gas/ geothermal properties 914-06 AMT - Deductions - oil/ gas/ geothermal properties 914-07 AMT - Other adjustments / tax preference items 915 Name of foreign country or U.S. possession` 915-01 Gross income from all sources 915-02 Gross income sourced at SH level 915-03 Foreign gross income - passive 915-04 Foreign gross income - general 915-05 Foreign gross income - other 915-06 Allocable deductions SH - interest 915-07 Allocable deductions SH - other 915-08 Allocable deductions corp - passive 915-09 Allocable deductions corp - general 915-10 Allocable deductions corp - other 915-11 Total foreign taxes paid 915-12 Reduction in taxes available for credit 915-13 Total foreign taxes accrued 915-14 Foreign gross income - section 951A category 915-15 Foreign gross income - foreign branch category 915-16 Allocable deductions corp - section 951A category 915-17 Allocable deductions corp-foreign branch category 916-01 IRC 59(e)(2) expenditures 916-02 Type of expenditures 917 Tax-exempt interest income 918 Other tax-exempt income 919 Non-deductible expenses 920 Distributions 920-01 Non-cash distributions 920-02 Disproportionate distributions 920-03 Repayments of Loans from Shareholders 920-04 Distributions of Earnings & Profits 920-05 Distribution in Excess of Basis 920-06 Distribution of Property or Bargain Sale 921 Other items & amounts to be reported separately 922 Total dividend distributions from E & P 923 Investment income 924 Investment expenses 925 Qualified business income deduction - Section 199A 76150 User Specified 1 (Issue name and 4318 description required) 76200 User Specified 2 (Issue name and 4318 description required) 76250 User Specified 3 (Issue name and 4318 description required) 76300 User Specified 4 (Issue name and 4318 description required) 76350 User Specified 5 (Issue name and 4318 description required) 76400 User Specified 6 (Issue name and 4318 description required) 76450 User Specified 7 (Issue name and 4318 description required)
Partnership SAIN Codes
Exhibit 4.10.16-3 Partnership SAIN Codes Code Issue 000 Issue does not exist 001 Precontact Analysis 002 Pre - Exam Conference 003 Preliminary Examination Time 004 Preparing Examination Plan 005 Coordination 006 Travel Time 007 Report Preparation 008 Examination Critique 009 Meetings 010 Review Protest / Prepare Rebuttal 010-01 Fast Track 011 Penalty Consideration 012 Form 5699 (Information Document Request Log) 013 Issue Control Sheet - Form 5701 (Notice of Proposed Adjustments) 014 Referrals to Specialists 015 Financial Interest 016 Correspondence 017 POA / Form 8821(Tax Information Authorization) 018 Statute of Limitations 020 Prior Revenue Agent Report 021 Prior Appeals Report 022 Joint Committee Reports 024 Risk Analysis 030 Administrative Lead Sheet 031 LB&I Quality Measurement System Check Sheet 032 LB&I Joint Audit Planning Process Tool 033 Pre-audit Interview History Lead Sheet 034 Examiner's RRA 98 Compliance Guide 035 Team Manager Check sheet 060 Claims 061 Self-Audit Adjustments (Affirmative Adjustments) 080 Planning File 100 Balance sheet 101 Cash 102 Trade notes & accounts receivable 102-01 Allowance for bad debts 103 Inventories 104 U.S. government obligations 105 Tax-exempt securities 106 Other current assets 107 Loans to partners 107-01 Loans to persons related to partners 108 Mortgage & real estate loans 109 Other investments 110 Buildings & other depreciable assets 110-01 Accumulated depreciation 111 Depletable assets 111-01 Accumulated depletion 112 Land (net of any amortization) 113 Intangible assets 113-01 Accumulated amortization 114 Other assets 216 Accounts payable 217 Mortgages, notes, bonds payable in less than 1 year 218 Other current liabilities 218-01 Related party accruals 219-01 All nonrecourse loans 220 Mortgages, notes, bonds payable in 1 year or more 220-01 Loans from partners 220-02 Loans from persons related to partners 221 Other liabilities 321 Partners' capital accounts 321-01 Final Schedule K-1 with Unresolved Negative Capital Account 321-02 Analysis of partner's capital account (Sch M-2) 400 Profit & loss statement 401 Gross receipts or sales 401-01 Sales to related entities 401-02 Merchant card and third party payments 402 Returns and allowances 403 Ordinary income (loss) from partnerships, etc. 403-01 Net farm profit (loss) 409 Net gain (loss) from Form 4797, Part II 410 Other income (loss) 410-01 Partnership income (loss) (Tiered entity) 410-02 Cancellation of debt income 502 Cost of goods sold (No Sch. A or F1125-A Detail) 502-01 Inventory (beginning) 502-02 Purchases 502-03 Cost of labor 502-04 Additional IRC 263A costs 502-05 Other costs 502-10 Inventory (ending) 510 Guaranteed payments to partners 510-01 Capital versus ordinary expense 510-02 Character of payment to retiring partner 513 Salaries & wages 514 Repairs & maintenance 515 Bad debts 516 Rent 517 Taxes & licenses 518 Interest 519 Charitable contributions 520 Depreciation 521 Depreciation (other than page 1 Form 1065) 522 Depletion 523 Advertising 524 Retirement plans, etc. 525 Employee benefit programs 526 Other deductions (no schedule attached) 526-01 Administrative fees 526-02 Amortization 526-03 Auto & truck expenses 526-04 Bonus expense 526-05 Consulting fees 526-06 Contract labor 526-07 Commissions 526-08 Computer expense 526-09 Dues & subscriptions 526-10 Education expenses 526-11 Equipment rental 526-12 Fringe benefits 526-13 Fuel expense 526-14 Gifts & awards expenses 526-15 Insurance expenses 526-16 Janitorial services 526-17 Leasing expense 526-18 Legal & professional fees 526-19 License & permit expenses 526-20 Maintenance & cleaning 526-21 Management & director fees 526-22 Meals & entertainment 526-23 Meeting, seminars & conventions 526-24 Miscellaneous expenses 526-25 Other expenses 526-26 Outside services 526-27 Postage & courier expense 526-28 Proposal or bidding expense 526-29 Public relations expense 526-30 Publication expense 526-31 Recruiting & training 526-32 Research & development 526-33 Royalty expense 526-34 Security expense 526-35 Shipping, freight & handling 526-36 Supplies - office 526-37 Supplies - tools & factory 526-38 Telephone expense 526-39 Travel expense 526-40 Utility expense 527 Domestic Production Activities 528 Schedule M-1 531 Energy efficient commercial buildings 604 Credits 604-10 IRC 45R credit for health care 609-10 Corporate Alternative Minimum Tax (CAMT) 610-02 Other taxes 610-04 Lookback Interest 623-01 Payments 623-07 Telephone Excise Tax credit 624-01 Accuracy Related Penalty - IRC 6662 624-02 Fraud Penalty - IRC 6663 624-03 Delinquency Penalty - IRC 6698 624-04 Estimated Tax Penalty 624-05 Promoter Penalties 624-10 Other Penalties (includes FBAR) 625 BBA AAR imputed underpayment 633 Interest due under look-back method - completed long term contracts 634 Interest due under the look-back method - income forecast method 700-01 Administrative 700-02 Pre-Audit/Interview/History 700-03 Required Filing Checks 700-05 Cost of Sales 700-06 Penalties 700-08 TEFRA Consideration 701 Partnership agreement & other records 703 Acquisitions, mergers & reorganizations 703-01 Schedule M-2 706 IRC 482 potential 707 Method of accounting 708 Initial return - IRC 195, 246, 1060 709 Final return - distributions 710 Related party transactions 712 Distributions in excess of basis 713 Mandatory compliance checks 713-01 Related returns 713-02 Prior & subsequent returns 713-03 Minimum inventory checks 713-04 Minimum income probe 713-05 Other filing checks 720 Initial return 721 Final return 722 Related party transactions 723 Changes in ownership 724 TEFRA/BBA/ILSC 725 Character of income (separately stated items) 726 Potentially abusive schemes 726-01 Form 8275 Disclosure Statement 726-02 Form 8886 Reportable Transaction Disclosure Statement 726-03 Transaction lacks economic substance 728 Reconcile Schedule K-1 to Schedule K 729 IRC 704(d) - losses and or deductions claimed in excess of basis 730 IRC 469 - passive activity losses and material participation 731 IRC 465 - At risk limitation 735 IRC 707 - disguised sales 736 IRC 704(c) & IRC 737 737 IRC 754 - election 737-01 IRC 743(b) - basis adjustment 737-02 IRC 734(b) - basis adjustment 738 IRC 708 - partnership terminations 739 IRC 704(b) - special allocations 739-01 Use of tax neutral partners (i.e. tax exempt or foreign) 740 Family partnership inconsistent with IRC 704(e) 741 IRC 752 - partner's share of liabilities 741-01 Nonrecourse 741-02 Qualified nonrecourse 741-03 Recourse/Other 742 IRC 741 - sale of partnership interest / Form 8308 742-01 IRC 751 Ordinary income recapture 742-02 IRC 755 - Allocation basis 743 IRC 183 - hobby loss 801 Statistical sampling procedures 802 Other Classified Issue 2 802–01 Computer audit specialist (CAS) 802-02 Employment tax examiner 802–03 International examiner 802-04 Engineer 802–05 Exempt organization examiner 802–06 Excise tax examiner 802-07 Financial products examiner 802-08 Economist 802–09 Actuary 802–10 Employee Plans 802-11 Appraisers 802–12 Exam Tech/Audit Aides 802–13 Contracting Officer's Technical Representative (COTR) 802–14 Tax Computation Specialist 803 Other Classified Issue 3 803–01 Life insurance examiner 803–02 Property & Casualty insurance examiner 804 Other Classified Issue 1 805 Other Classified Issue 2 806 Other Classified Issue 3 807 Other Classified Issue 4 808 Other Classified Issue 5 809 Other Classified Issue 6 901-01 Ordinary income (loss) from trade or business 902 Net income (loss) from rental real estate 903 Other gross rental income 903-01 Expenses from other rental activities 903-02 Portfolio income (loss) from ordinary dividends 903-03 Portfolio income (loss) from royalty income 903-04 Net short-term capital gain (loss) 903-05 Net long-term capital gain (loss) 903-06 Other portfolio income (loss) 904-01 Portfolio income (loss) from interest income 904-02 Portfolio income (loss) from ordinary dividends 904-03 Portfolio income (loss) from qualified dividends 904-04 Portfolio income (loss) from royalty income 904-05 Net short-term capital gain (loss) 904-06 Net STCG / loss (>5-3-03) '03 only 904-07 Net long-term capital gain (loss) 904-08 Net LTCG / loss (28%) 904-09 Net LTCG / loss (5 year) 904-10 Net LTCG / loss (>5-3-03) '03 only 904-11 Other portfolio income (loss) 904-12 Unrecaptured 1250 gain 904-13 Dividend equivalents 905 Net IRC 1231 gain (loss) from Form 4797 905-01 Net IRC 1231 gain (loss) (>5-3-03) '03 only 906 Other income (loss) 906-01 Cancellation of indebtedness (COD) - IRC 61(a)(12) 908 IRC 179 expense deduction 908-01 Section 179 expense deduction 908-02 Deductions related to portolio income 908-03 Other deductions 909 Deductions related to portfolio income 910 Other deductions 911 Interest expense on investment debts 911-01 Investment income included in portfolio income 911-02 Investment expense-deductions related to portfolio income 912-01 Credit for income tax withheld 912-02 Low income housing credit IRC 42(j)(5) 912-03 Low income housing credit - other 912-04 Credits related to rental real estate activities 912-05 Credits related to other rental activities 912-06 Qualified Rehabilitation Expenses - rental real estate activities 912-07 Credits related to rental real estate activities 912-08 Credits related to other rental activities 913 Other credits and credit recapture 914 Other credits 914-01 AMT - Depreciation adjustment 914-02 AMT - Adjusted gain (loss) 914-03 AMT - Depletion (other than oil and gas) 914-05 AMT - gross inc. - oil/gas/geothermal properties 914-06 AMT - Deductions - oil/ gas/ geothermal properties 914-07 AMT - Other adjustments / tax preference items 915 Name or foreign country or U.S. possession 915-01 Gross income from all sources 915-02 Gross income sourced at partner level 915-03 Foreign gross income - passive 915-04 Foreign gross income - listed categories 915-05 Foreign gross income - general limitation 915-06 Allocable deductions partner - interest 915-07 Allocable deductions partner - other 915-08 Allocable deductions partnership - passive 915-09 Allocable deductions partnership - listed 915-10 Allocable deductions partnership - general 915-11 Total foreign taxes paid 915-011 Net earnings (loss) from self-employment 915-12 Reduction in taxes available for credit 915-13 Total foreign taxes accrued 915-14 Foreign gross income - section 951A category 915-15 Foreign gross income - foreign branch category 915-16 Allocable deductions partnership - section 951A category 915-17 Allocable deductions partnership - foreign branch category 915-18 Other foreign tax information 915-021 Gross farming or fishing income 915-031 Gross nonfarm income 916-01 IRC 59(e)(2) expenditures 916-02 Type of expenditures 917 Tax-exempt interest income 918 Other tax-exempt income 919 Non-deductible expenses 920 Distributions 920-01 Distributions of property other than money 920-02 Distributions in excess of basis 920-03 Distributions of money (cash & securities) 920-04 Distribution of property or bargain sale 920-05 Distribution of cash and securities 921 Other items & amounts to be reported separately 923 Investment income 924 Investment expenses 925 Qualified business income deduction - Section 199A 76150 User Specified 1 (Issue name and 4318 description required) 76200 User Specified 2 (Issue name and 4318 description required) 76250 User Specified 3 (Issue name and 4318 description required) 76300 User Specified 4 (Issue name and 4318 description required) 76350 User Specified 5 (Issue name and 4318 description required) 76400 User Specified 6 (Issue name and 4318 description required) 76450 User Specified 7 (Issue name and 4318 description required)
Reason Codes
Exhibit 4.10.16-4 Reason Codes Categorization Code Description Example/Definition Issue Changed - No Issue Penalty Asserted 02 Taxpayer unaware of tax laws or record keeping requirements Taxpayer may lack formal education or have a language barrier that prevents understanding requirements. Issue Changed - No Issue Penalty Asserted 03 Disregarded record keeping rules Taxpayer understood law and requirements but taxpayer's poor record keeping contributed to the errors and inability to substantiate amounts claimed on the return. Issue Changed - No Issue Penalty Asserted 05 Action or advice of Return Preparer - No Penalty asserted The error resulted from action or advice of paid preparer. The nature or amount of adjustment was not sufficient to warrant a penalty. Issue Changed - No Issue Penalty Asserted 06 Inadvertent understatement or overstatement of income or deductions Taxpayer understood the law but inadvertently misstated items on the return. Issue Changed - No Issue Penalty Asserted 14 Taxpayer entered item on the wrong form, schedule, or line Self-explanatory. Issue Changed - No Issue Penalty Asserted 17 Intentional disregard of tax laws - No penalty asserted Taxpayer made intentional decision to understate income or overstate deductions, credits, or prepayments. However, the nature or amount of the adjustment was not sufficient to warrant a penalty. Issue Changed - No Issue Penalty Asserted 18 Relied on advice of IRS Staff or Publications Taxpayer indicates the error was based upon advice from IRS personnel or information in IRS publications. Issue Changed - No Issue Penalty Asserted 20 Taxpayer relied on tax preparation software The error resulted from taxpayer's improper data entry in software program. Issue Changed - No Issue Penalty Asserted 21 Used 'gray area' in the law or regulations Taxpayer/return preparer took position on issue on interpretation of law. Issue Changed - Issue Penalty Asserted 07 Intentional misstatement of income, deductions, credits, or prepayments Self-explanatory. Issue Changed - Issue Penalty Asserted 10 Income/expenses entered on wrong form to reduce tax or increase credits For example, moving deductions from Schedule A to Schedule C to avoid SE tax. Issue Changed - Issue Penalty Asserted 19 Action or advice of Return Preparer - Penalty asserted The error resulted from action or advice of paid preparer and was sufficiently blatant to warrant a penalty. Issue Changed - Issue Penalty Asserted 32 Fraud The taxpayer omitted income or overstated deductions, credits, or prepayments with the intent to evade taxes. Issue Changed - Issue Penalty Asserted 33 Abusive Schemes The taxpayer asserts standard frivolous filer arguments or has used other abusive schemes. Issue Changed - Earned Income Credit Issue 60 No earned income Self-explanatory. Issue Changed - Earned Income Credit Issue 61 Filing status changed to married filing separate status Self-explanatory. Issue Changed - Earned Income Credit Issue 62 Requirement for filing Form 2555 met or Form 2555 filed Self-explanatory. Issue Changed - Earned Income Credit Issue 63 Non-resident alien Self-explanatory. Issue Changed - Earned Income Credit Issue 64 Investment income exceeds maximum Self-explanatory. Issue Changed - Earned Income Credit Issue 65 Taxpayer/spouse is qualifying child of another Self-explanatory. Issue Changed - Earned Income Credit Issue 66 Primary/secondary does not have a valid SSN for employment Self-explanatory. Issue Changed - Earned Income Credit Issue 67 'Relationship test' for child claimed on Schedule EIC not met Self-explanatory. Issue Changed - Earned Income Credit Issue 68 'Residency test' for child claimed on Schedule EIC not met Self-explanatory. Issue Changed - Earned Income Credit Issue 69 'Age test' for child claimed on Schedule EIC not met Self-explanatory. Issue Changed - Earned Income Credit Issue 70 EITC qualifying child does not have a valid SSN for employment Self-explanatory. Issue Changed - Earned Income Credit Issue 71 Taxpayer/spouse is eligible to be claimed as dependent by another Self-explanatory. Issue Changed - Earned Income Credit Issue 72 Main home outside United States for 6 months or more Self-explanatory. Issue Changed - Earned Income Credit Issue 73 Increase to earned income or AGI or modified AGI (beginning Tax Year 2001) Self-explanatory. Issue Changed - Earned Income Credit Issue 74 Decrease to earned income or AGI or modified AGI (beginning Tax Year 2001) Self-explanatory. Issue Changed - Earned Income Credit Issue 75 Taxpayer denied, tie-breaker rule Self-explanatory. Issue Changed - Earned Income Credit Issue 76 Change in qualifying children - Increase Self-explanatory. Issue Changed - Earned Income Credit Issue 77 IRS processing error Self-explanatory. Adjustments from Flow Through Entities - NRP 04 Adjustment to 1040 due to basis limitation on 1120S - NRP Adjustment was made to limit the shareholder's loss due to insufficient basis in the NRP S corporation. Adjustments from Flow Through Entities - NRP 08 Adjustment to 1040 due to at-risk limitation on 1120S - NRP Adjustment was made to limit the shareholder's loss due to the amount at risk in the NRP S corporation. Adjustments from Flow Through Entities - NRP 09 Adjustment to 1040 due to passive activity limitation on 1120S - NRP Adjustment was made to limit the shareholder's loss from the NRP Scorporation due to passive activity rules. Adjustments from Flow Through Entities - NRP 12 Adjustment to 1040 due to basis limitation on 1065 - NRP Adjustment was made to limit the partner's loss due to insufficient basis in the NRP partnership. Adjustments from Flow Through Entities - NRP 13 Adjustment to 1040 due to at-risk limitation on 1065 - NRP Adjustment was made to limit the partner's loss due to the amount at risk in the NRP partnership. Adjustments from Flow Through Entities - NRP 15 Adjustment to 1040 due to passive activity limitation on 1065 - NRP Adjustment was made to limit the partner's loss from the NRP partnershipdue to passive activity rules. Adjustments from Flow Through Entities - NRP 16 Adjustment to 1040 due to passive activity limitation on trust - NRP Adjustment was made to limit the owner/beneficiary's loss from the NRP trust due to passive activity rules. Adjustments from Flow Through Entities - NRP 27 Due to change in S corp income/(loss) item - NRP Adjustments resulting from the audit of the NRP S corporation that affected the shareholder's share of ordinary income/(loss) and/or separately stated items. Adjustments from Flow Through Entities - NRP 28 Due to change in trust/estate income/(loss) item - NRP Adjustments resulting from the audit of the NRP trust/estate that affected the owner/beneficiary's share of ordinary income/(loss) and/or separately stated items. Adjustments from Flow Through Entities - NRP 29 Due to change in partnership income/(loss) item - NRP Adjustments resulting from the audit of the NRP partnership that affected the partner's share of ordinary income/(loss) and/or separately stated items. Adjustments from Flow Through Entities - NRP 86 Investor Level Statute Control (ILSC) - NRP Investor Level Statute Control (ILSC) issue on an NRP case. Adjustments from Flow Through Entities - NRP 87 TEFRA - Settlement Agreement - NRP NRP Case - Partner signed a Form 870-P, PT, L, or LT agreeing to the partnership adjustments binding the partners to their share of the adjustments. Adjustments from Flow Through Entities - NRP 88 TEFRA - Defaulted FPAA - NRP NRP Case - Partner neither agrees nor petitions the Court resulting in the flow-through of the partnership adjustments to the partner. Adjustments from Flow Through Entities - NRP 89 TEFRA - Court Decision - NRP NRP Case - Court issues a decision relative to the partnership adjustments allowing flow-through of adjustments to the partner. Adjustments from Flow Through Entities - NRP 90 TEFRA - Bankruptcy - NRP NRP Case - Partner has petitioned the Bankruptcy Court and partnership items are converted to non-partnership items allowing the immediate flow-through of adjustments to the partner's return. Adjustments from Flow Through Entities - NRP 91 TEFRA - AAR - NRP NRP Case - Tax Matters Partner (TMP) or partner has filed an Administrative Adjustment Request (AAR), which is an amended return for TEFRA partnerships. If accepted by the Service, these changes can be made at the request of the TMP or the partner. Adjustments from Flow Through Entities - Non NRP 24 Due to change in S corp income/(loss) item Adjustments resulting from the audit of the S corporation that affected the shareholder's share of ordinary income/(loss) and/or separately stated items. Adjustments from Flow Through Entities - Non NRP 25 Due to change in trust/estate income/(loss) item Adjustments resulting from the audit of the trust/estate that affected the owner/beneficiary's share of ordinary income/(loss) and/or separately stated items. Adjustments from Flow Through Entities - Non NRP 26 Due to change in partnership income/(loss) item Adjustments resulting from the audit of the partnership that affected the partner's share of ordinary income/(loss) and/or separately stated items. Adjustments from Flow Through Entities - Non NRP 34 Adjustment to 1040 due to basis limitation on 1120S Adjustment was made to limit the shareholder's loss due to insufficient basis in the S corporation. Adjustments from Flow Through Entities - Non NRP 35 Adjustment to 1040 due to at-risk limitation on 1120S Adjustment was made to limit the shareholder's loss due to the amount at risk in the S corporation. Adjustments from Flow Through Entities - Non NRP 36 Adjustment to 1040 due to passive activity limitation on 1120S Adjustment was made to limit the shareholder's loss from the S corporation due to passive activity rules. Adjustments from Flow Through Entities - Non NRP 37 Adjustment to 1040 due to basis limitation on 1065 Adjustment was made to limit the partner's loss due to insufficient basis in the partnership. Adjustments from Flow Through Entities - Non NRP 38 Adjustment to 1040 due to at-risk limitation on 1065 Adjustment was made to limit the partner's loss due to the amount at risk in the partnership. Adjustments from Flow Through Entities - Non NRP 39 Adjustment to 1040 due to passive activity limitation on 1065 Adjustment was made to limit the partner's loss from the partnership due to passive activity rules. Adjustments from Flow Through Entities - Non NRP 40 Adjustment to 1040 due to passive activity limitation on trust Adjustment was made to limit the owner/beneficiary's loss from the trust due to passive activity rules. Adjustments from Flow Through Entities - Non NRP 92 Investor Level Statute Control (ILSC) Investor Level Statute Control (ILSC) issue. Adjustments from Flow Through Entities - Non NRP 93 TEFRA - Settlement Agreement Partner signed a Form 870-P, PT, L, or LT agreeing to the partnership adjustments binding the partners to their share of the adjustments. Adjustments from Flow Through Entities - Non NRP 94 TEFRA - Defaulted Final Partnership Administrative Adjustment (FPAA) Partner neither agrees nor petitions the Court resulting in the flow-through of the partnership adjustments to the partner. Adjustments from Flow Through Entities - Non NRP 95 TEFRA - Court Decision Court issues a decision relative to the partnership adjustments allowing flow-through of adjustments to the partner. Adjustments from Flow Through Entities - Non NRP 96 TEFRA - Bankruptcy Partner has petitioned the Bankruptcy Court and partnership items are converted to non-partnership items allowing the immediate flow-through of adjustments to the partner's return. Adjustments from Flow Through Entities - Non NRP 97 TEFRA - Administrative Adjustment Request (AAR) Tax Matters Partner (TMP) or partner has filed an Administrative Adjustment Request (AAR), which is an amended return for TEFRA partnerships. If accepted by the Service, these changes can be made at the request of the TMP or the partner. Issue No Changed / Declassified 51 No Change - Taxpayer Substantiated the Issue The issue was examined and substantiated. Issue No Changed / Declassified 52 No Change - De Minimis The issue was examined and closed for lack of potential, immaterial change, or no-changed due to timing issues. Issue No Changed / Declassified 53 Issue Accepted as Filed Examiner - identified issue that does not warrant further examination. Should never be used for NRP examinations. Issue No Changed / Declassified 54 No Change - 1120S Study The issue was examined and accepted as filed as part of the 1120S NRP Study. Issue No Changed / Declassified 84 Declassified - Employee not trained on classified issue Employee is unable to examine issue due to lack of training or experience. Issue No Changed / Declassified 85 Declassified - No Audit Potential Classified issue that was not examined after a determination that it lacked audit potential. Other 11 No Show / No Response / Undeliverable Mail Used for adjustments where the taxpayer did not keep any appointments or respond to contact attempts or where mail to the taxpayer was returned undelivered. Other 22 Statutory Adjustment Automatic adjustments due to changes to income/other limits. This code is automatically generated by the report writing software. Other 23 Change due to adjustment in another year, financial and tax accounting differences, or entity types - not intentional Self-explanatory. Do not use for adjustments resulting from flow-through entities. Other 43 Audit reconsideration Adjustment based upon reconsideration of previous examination or IRS action. This includes Substitute For Return (SFR) assessment being corrected based upon the receipt of a filed return from the taxpayer. Other 44 Computation or 'per return' Service Center error An adjustment necessary to correct a computational error on the return or incorrect transcription during return processing.
Rental Type Codes
Exhibit 4.10.16-5 Rental Type Codes Category Code Description Residential 11 Single family house Residential 12 Apartment or townhouse Residential 13 Duplex house Residential 14 Small apartment building - less than 5 apartments Residential 15 Medium apartment building - 5 to 9 apartments Residential 16 Large apartment building - more than 10 apartments Vacation 21 Single family house Vacation 22 Apartment or townhouse Vacation 23 Duplex house Vacation 24 Small apartment building - less than 5 apartments Vacation 25 Medium apartment building - 5 to 9 apartments Vacation 26 Large apartment building - more than 10 apartments Commercial 31 Single store Commercial 32 2 to 4 stores Commercial 33 More than 4 stores Commercial 34 Warehouse Commercial 35 Factory Commercial 36 Office Space Commercial 37 Land Commercial 38 Self-Rental Commercial 40 Other commercial
Source: official text