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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 154. Unemployment Tax Returns (Cont. 1)

3.12.154  Unemployment Tax Returns (Cont. 1)

3.12.154.7 
Section 01 Fields

3.12.154.7.5  (01-01-2012)
Field 01TXP - Tax Year - 4 Positions

  1. Description - This field is located in the Entity Section of the return and consists of the four digits for the Tax Year, for example, 2011.

3.12.154.7.5.1  (01-01-2012)
Field 01TXP - Invalid Conditions

  1. This field is invalid if one of the following conditions is present:

    1. It is not all numeric.

    2. It is not in YYYY format,

    3. It is all blank.

    4. It is greater than the processing date.

3.12.154.7.5.2  (01-01-2012)
Field 01TXP Correction Procedures

  1. Check the return and/or attachments for the correct Tax Year and do the following:

    If Then
    The Tax Year cannot be determined, Research BMFOLI to see which year has not yet posted. If unable to determine the tax year after researching BMFOLI, enter the current year being processed as the tax period.
    The taxpayer is attempting to pay more than one year's tax on the return and you are unable to determine the tax and wage amount for each year, Correspond with the taxpayer and suspend with AC 211 for Form 940 or AC 215 for 940-PR.
    Early Filed (the taxpayer indicates a Tax Year for a future year) - Final and complete return, 1. Enter CCC "F" .

    2. Enter AC 480 to suspend the return.
    Early Filed - Final and incomplete return
    1. Correspond for the missing data and suspend with AC 211.

    2. Input CCC " F" , if necessary, depending on the taxpayer's response.

    3. When the correspondence is received, enter AC 480 to suspend the return until the upcoming January according to the taxpayer's response.
    Early Filed - Non-Final return

    Note:

    This procedure includes early filed complete CIS returns.


    1. Suspend with AC 211.

    2. Correspond using 142C Letter for explanation for early filing.

    Exception:

    If the return is prepared under Section 6020(b) by a Revenue Officer, do not correspond with the taxpayer.



    3. If No Reply, then resuspend with AC 480. If this is an overpayment/refund return, enter CCC "X" to freeze the refund.

    4. If the current date is November 1 through December 31, do not correspond using AC211. SSPND 480 as an Early Filed return.
    Exhibit 3.12.154-12.
    The Tax Year is before 1989 and is Doc Code 38 (Form 940-EZ), Convert to Form 940.

3.12.154.7.6  (01-01-2012)
Field 01SCE Entity State Code - 2 Positions

  1. Field 01SCE will no longer be used.

3.12.154.7.7  (01-01-2012)
Field 01CCC Computer Condition Codes - 10 Positions

  1. Field 01 will take up to 10 Computer Condition Codes.

  2. This field can be found in the following locations on the tax form:

    Form Location
    Form 940 (Revisions 2006 through 2011) Immediately to the right of the line that states: You MUST fill out both pages of this form and SIGN it. Exhibit 3.12.154-1.
    Form 940-PR (Revisions 2006 through 2011) Immediately to the right of the line that states: "Usted DEBE llenar ambas paginas de esta planilla y luego FIRMARLA" . Exhibit 3.12.154-2.
    Form 940 (Revision 2005 and prior) Center of the bottom of Page 1. Exhibit 3.12.154-3.
    Form 940-EZ (Revision 2005 and prior) Center of the bottom margin. Exhibit 3.12.154-4.

    Note:

    All Form 940-EZ Returns must be converted to Form 940.

    Form 940-PR (Revision 2005 and prior) Center of the bottom of Page 1. Exhibit 3.12.154-5. and Exhibit 3.12.154-6.

  3. CCCs are used to identify a special condition or computation for the computer. See the following table:

    COMPUTER CONDITION CODES

    CCC Definition Validity/Consistency Checks Remarks
    " C" Unexplained exemption   Not Applicable. This code will no longer be used.
    "D" Reasonable cause for failure to make timely payments, Must have a received date (Error Code 028) Cannot have a pre-computed penalty.
    "E" Credit Election Cannot be "F" , "G" , or "S" Coded. (Field Error) Computer Generated if 01 ARN is blank and 02 B/R has an overpayment.
    "F" Final Return Cannot be coded "G" , or "E" (Field Error)  
    "G" Amended Return 1. No other CCC codes allowed except "W" & "3" (Field Error)

    2. Must have received date. (Error Code 028)

    3. All fields must be blank except 01NC, 01EIN, 01TXP, 01CCC, 01RCD, 01CRD (Error Code 010)
    		  
     
     
    "J" Reasonable cause for Waiver of FTD penalty. Also used when TP notates "state" , "city" , or "county" , in the entity area of the return. Cannot have pre-computed FTD penalties (Error Code 038)    
    "O" Module Freeze   Manual Refund  
    "R" Reasonable cause for delinquency. 1. Must have received date. (Error Code 028)

    2. Cannot be " 4" Coded (Field Error)

    3. Can not be "7" coded. (Field Error)    		 Cannot have a pre-computed penalty.  
    "S" Overpayment Refund Cannot be " E" or "G" Coded (Field Error) Computer Generated if 01 ARN is "2" and 02 B/R has an overpayment.  
    "W" Cleared by Statute Control Must be present on Statute cases (Error Code 001)    
    "X" Credit Freeze      
    "3" No Reply Received - Suppress Credit Interest Must not contain Correspondence Received Date (Error Code 073) Used to suppress credit interest when No Reply is received to correspondence  
    "4" Return prepared by IRS under IRC §6020(b). Cannot be " R" Coded (Field Error) Will have notation about IRC §6020(b) and the signature of revenue agent or officer.  
    "5" Successor Employer   Box "b" should be checked to signify that the taxpayer is entitled to special credits as a Successor Employer.  
    "7" Reasonable cause statement denied 1. Cannot be both "D" coded and "R" coded (Field Error)

    2. Must have a received date (Error Code 028)    		 Code used when a taxpayer provides unacceptable reason(s) for failing to file or pay tax timely.  
    "9" No Payments to Employees in 2010   Box "c" will be checked to signify that no payments were made to employees.  

3.12.154.7.7.1  (01-01-2012)
Field 01CCC Invalid Conditions

  1. This field is in error if any one of the following is present:

    1. The entry is other than "C" , "D" , "E" , "F" , "G" , "J" , "O" , "P" , "R" , "S" , "W" , "X" , "3" , "4" , "5" , "7" , or " 9" .

    2. CCC "G" is present and any other CCC except "W" and/or "3" is present.

    3. CCCs "E" and "F" are used together.

    4. CCCs "E" and "S" are used together.

    5. CCC "7" is present and CCCs "D" and "R" are present.

    6. CCC "4" is present and CCC "R" is present.

3.12.154.7.7.2  (01-01-2012)
Field 01CCC Correction Procedures

  1. Check the return for the CCC and do the following:

    If Then
    The CCC was transcribed incorrectly, Enter the correct CCC.
    Other CCCs are present with "G" , "W" , or "3" . 1. Delete the other CCC if the "G" CCC is needed.

    2. If the "G" CCC is not needed, delete it and leave the other CCC.

    Note:

    Review all sections and input data where necessary. Research BMFOLT for TC 150. If TC 150 is present, CCC "G" must be present. If there is no TC 150, review all sections and input data where necessary. Delete CCC "G" .

    CCCs "E" and "S" are present, 1. Verify box on Line 10 Field 01ARN.

    2. If applied to the next return box is checked, then enter CCC "E" .

    3. If the refund box is checked, then enter CCC "S" .

    4. If no box is checked, and an overpayment is shown on the return, enter CCC "E"
    CCCs "E" and " F" are present, 1. Determine if the return is a Final.

    2. If it is a final return, delete "E" .

    3. If there is no indication of a final return, delete the "F" .
    CCCs "D" and " R" are present with CCC "7" , Determine which is correct and delete the incorrect CCC.
    Both CCC "4" and "R" are present, 1. If the return was prepared under IRC §6020(b), delete the "R" .

    2. If the return was not prepared under IRC §6020(b), delete the "4" .
    CCC "9" is present and Part 2, Line 3 or Line 7a has an amount greater than zero, Delete the "9" .

3.12.154.7.8  (01-01-2012)
Field 01RCD Received Date - 8 Positions

  1. The Received Date field is date stamped by Receipt & Control or perfected by Code & Edit on the center of return.

  2. Timely filed Form 940 Series Returns are not date stamped by the Receipt & Control Branch.

  3. If the return is received after the due date of the return, then Receipt and Control stamps the Received Date and attaches the envelope to the return per the IRM 3.10.72, Campus Mail and Work Control, Receiving, Extracting and Sorting.

    Note:

    The due date of the Form 940 is January 31 of the year following the tax year.

  4. The Received Date is required when the return is delinquent, amended, a Penalty and Interest Code is present, or a CCC "D" , "G" , "R" , or " 7" is present.

  5. If all positions in the field are blank, it would not cause an invalid condition.

3.12.154.7.8.1  (01-01-2012)
Field 01RCD Invalid Conditions

  1. The Received Date field is invalid if any of the following occur:

    1. Not in YYYYMMDD format,

    2. Before 19620101 - Form 940.

    3. Later than the current processing date,

    4. Not all numeric (if present), or

    5. Not within the valid month, day range as shown below:

      Month Day
      01 01-31
      02 01-28 (29 leap year)
      03 01-31
      04 01-30
      05 01-31
      06 01-30
      07 01-31
      08 01-31
      09 01-30
      10 01-31
      11 01-30
      12 01-31

3.12.154.7.8.2  (01-01-2012)
Field 01RCD Correction Procedures

  1. Received Date - Compare the screen entry to the entry on the return and do the following:

    If Then
    The field was transcribed incorrectly, Correct the screen entry.
    It appears that the incorrect year was used (i.e. 20110115 instead of 20120115) and other information (Julian date, postmark date, and/or signature date) indicates that the received date should be a current year, Change the received date year to the current year.
    Multiple dates are on the return, Use the earliest date.

    Note:

    When you enter a received date, if the return was filed at a Service Center other than the one at which it is supposed to be filed, enter the earliest received date regardless of where it was filed.

    OSPC Only: If a foreign-address return was filed with an IRS office in the foreign country instead of OSPC, enter the foreign-country received date (this includes U.S. Possessions).

    The return has been held in suspense, Circle all but the earliest date.
    The Received Date is not needed, i.e., the return is neither delinquent nor does it have a CCC "D" , "G" , "R" , or "7" , Delete the entry from Field 01RCD.
    The Received Date is not present on the return, Determine the Received Date using the following priorities:

    1. Earliest legible postmark date of the U.S. Post Office or a Private Delivery Service or a foreign postmark date.

    Note:

    If an envelope is not attached, use the postmark date stamped on the face of the return.



    2. Service Center Automated Mail Processing System (SCAMPS) digital date.
    3. Revenue Officer's or other IRS official's signature date.

    4. Signature date, if within the current year (unless other information indicates signature date is invalid).

    5. DLN Julian Date minus 10 days.

    6. Current date minus 10 days.

  2. The Received Date should never precede the beginning of the Tax Year (Error Code 007).

3.12.154.7.9  (01-01-2012)
Field 01PIC Penalty and Interest Code - 1 Position

  1. This field can be found in the following locations on the tax form:

    Form Location
    Form 940 (Revisions 2006 through 2011) In the lower right margin of Page 1.
    Exhibit 3.12.154-1.
    Form 940-PR (Revisions 2006 through 2011) In the lower right margin of Page 1.
    Exhibit 3.12.154-2.
    Form 940 (2005 and prior revisions) In the lower right margin of Page 1.
    Exhibit 3.12.154-3.
    Form 940-EZ (2005 and prior revisions) In the lower right margin of the return.
    Exhibit 3.12.154-4.

    Note:

    Form 940-EZ Returns must be converted to Form 940.

    Form 940-PR (2005 and prior revisions) In the lower right margin of Page 1.
    Exhibit 3.12.154-5. and Exhibit 3.12.154-6.

  2. The "P" / "I" Code is used to alert the computer to do a computation for penalty and/or interest if the return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

3.12.154.7.9.1  (01-01-2012)
Field 01PIC Invalid Conditions

  1. Penalty Interest Code- Entry is invalid if it is other than "1" or blank.

3.12.154.7.9.2  (01-01-2012)
Field 01PIC Correction Procedures

  1. Penalty Interest Code- Compare the screen entries with the return and do the following:

    If Then
    There was a transcription error, Change the field to the correct entry.
    Pre-computed delinquency penalty and/or interest is shown in the Penalty and Interest box or area, and the return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Enter Code "1" .

3.12.154.7.10  (01-01-2012)
Field 01SC1 - 2 Positions

  1. Description - The State Code Field for a single state filer is located in Part 1, Line 1a. for Form 940 and Form 940-PR (Revisions 2006 through 2011).

  2. These codes are composed of two alpha characters each.

  3. There are 53 valid codes, as shown below. They are also shown in Exhibit 3.12.154-14.

    State Valid State Code
    ALABAMA AL
    ALASKA AK
    ARIZONA AZ
    ARKANSAS AR
    CALIFORNIA CA
    COLORADO CO
    CONNECTICUT CT
    DISTRICT OF COLUMBIA DC
    DELAWARE DE
    FLORIDA FL
    GEORGIA GA
    HAWAII HI
    IDAHO ID
    ILLINOIS IL
    INDIANA IN
    IOWA IA
    KANSAS KS
    KENTUCKY KY
    LOUISIANA LA
    MAINE ME
    MARYLAND MD
    MASSACHUSETTS MA
    MICHIGAN MI
    MINNESOTA MN
    MISSISSIPPI MS
    MISSOURI MO
    MONTANA MT
    NEBRASKA NE
    NEVADA NV
    NEW HAMPSHIRE NH
    NEW JERSEY NJ
    NEW MEXICO NM
    NEW YORK NY
    NORTH CAROLINA NC
    NORTH DAKOTA ND
    OHIO OH
    OKLAHOMA OK
    OREGON OR
    PENNSYLVANIA PA
    PUERTO RICO PR
    RHODE ISLAND RI
    SOUTH CAROLINA SC
    SOUTH DAKOTA SD
    TENNESSEE TN
    TEXAS TX
    UTAH UT
    VERMONT VT
    VIRGINIA VA
    VIRGIN ISLANDS VI
    WASHINGTON WA
    WEST VIRGINIA WV
    WISCONSIN WI
    WYOMING WY
    *ZZ *USED FOR ZERO LIABILITY IN A CREDIT REDUCTION STATE ONLY

3.12.154.7.10.1  (01-01-2012)
Field 01SC1 - Invalid Condition

  1. The State Code Field is invalid if one of the following occurs:

    1. A State Code in the State Code field is not one of the 53 valid State Codes or "ZZ" . Exhibit 3.12.154-13.

    2. A State Code is a foreign country and/or U.S. possession (exceptions: Puerto Rico and Virgin Islands).

    3. Part 1, Box 1a (01SC1) and Box 1b (01MSB) are both completed.

    4. Part 1, Box 1a (01SC1) is completed and Schedule A (Revisions 2006 through 2010) , Part 1 (Sections 03, 04, and 05) or Schedule A (Revision 2011) is also completed.

3.12.154.7.10.2  (01-01-2012)
Field 01SC1 - Correction Procedures

  1. State Code Field -Compare the screen entry with the entry on the return and do the following:

    If And Then
    The field was transcribed incorrectly,   Correct the screen display.
    Box 1a (01SC1) contains a valid state code, Box 1b (01MSB) is checked, but Part 1 of Schedule A is not present or completed, Delete Box 1b (01MSB).
    There is a valid state code in Box 1a (01SC1), Box 1b (01MSB) is checked, and Schedule A, Part 1 (Sections 03, 04, 05), Revisions 2006 through 2010) or Schedule A (Revision 2011) is present and completed showing multiple states, 1. Check Part 1 of Schedule A (Sections 03, 04, 05), Revisions 2006 through 2010) Schedule A (Revision 2011) to be sure that the state listed in Box 1a (01SC1) is checked and included in Sections 03, 04, 05, Revisions 2006 through 2010) or Schedule A (Revision 2011). If it is not included, enter the state code in the appropriate section.
    2. Delete Box 1a (01SC1).
    If the State Code in Box 1a (01SC1) is invalid,   edit an Asterisk (*) to the left of the invalid entry.
    If the State Code is missing (01SC1)   Enter the State Code from the entity area in Box 1a.
    Box 1a (01SC1) and Box 1(b) are not checked, Schedule A, Part 1 (Sections 03, 04, 05), Revisions 2006 through 2010 or Schedule A (Revision 2011) is present and completed, 1. Enter the State Code in Field 01SC1 from the Section(s) 03, 04 and 05, (Revisions 2006 through 2010) or Schedule A (Revision 2011) as applicable.
    2. Enter "1" in 01MSB if multi-states are present.

    3. Enter "1" in 01CRB if a credit reduction state is present.
    The return is non-taxable, The only State Code available is from the address and it is a Credit Reduction state for that year, Enter "ZZ" in Field 01SC1.
    The return is taxable, The only State Code available is from the address and it is a Credit Reduction state for that year, Enter the Total Taxable Wages amount in Part 2 of Schedule A on the appropriate line.
    A State Code cannot be determined from the return or attachments, The taxpayer has a foreign mailing address, Use "CC SSPND" with" AC 650" and transship to the Ogden Submission Processing Campus (OSPC).

    OSPC Only: Delete entry of foreign country and/or U.S. possessions (exceptions: Puerto Rico and Virgin Islands).
    The address on the return is foreign, not Puerto Rico,
    		There is no valid State Code, Enter "VI" .
    The entry in 01SC1 is AA, AE, AP, AS, FM, GU, MH, MP, or PW,   1. SSPND 211 and correspond with the taxpayer for the correct state code.

    2. No Reply: Delete the entry in 01SC1.

    Note:

    If the return is truly non-taxable, do not correspond. Delete 01SC1.

3.12.154.7.11  (01-01-2012)
Field 01SC1 Form 940-EZ - State Code Field - 2 Positions

  1. Beginning with Processing Year 2010, all Form 940-EZ Returns will be converted to Form 940 Returns.

  2. Description - The State Code Field is located to the right of the arrow in the dotted portion of Question B(1).

  3. The State Code field is composed of two alpha characters.

  4. There are 53 valid codes. Exhibit 3.12.154-13. for the valid State Code Table.

3.12.154.7.11.1  (01-01-2012)
Field 01SC1 940-EZ Invalid Condition

  1. State Code Field - This field is invalid if one of the following occurs:

    1. No State Code is present and CCC "G" is not present,

    2. "ZZ" is present in the State Code field,

    3. A non-blank character appears after a blank,

    4. A State Code in the State Code field is not one of the 53 valid State Codes, and

    5. More than one State Code is present.

3.12.154.7.11.2  (01-01-2012)
Field 01SC1 940-EZ Correction Procedures

  1. State Code Field - Compare the screen entry with the entry on the return and do the following:

    If And Then
    The field was transcribed incorrectly,   Correct the screen display.
    More than one State Code is entered,   Convert to Form 940. Exhibit 3.12.154-4.
    The State Code cannot be determined from Question B(1), Has a foreign mailing address (APO/DPO and FPO are not considered foreign addresses), Suspend with "AC 650" and transship to Ogden Submission Processing Campus (OSPC).
    "ZZ" is present in Field 01SC1,   Delete "ZZ" from the screen if edited in error.
    The return is a non-taxable return, The State Code is a Credit Reduction state for that year,

    Note:

    Credit Reduction States have been named in tax years 1974, 1976 through 1987, 1991, 1992, 2004, 2005, 2009, 2010 and 2011.

    		Convert to Form 940. Exhibit 3.12.154-4.
    The entry in 01SC1 is AA, AE, AP, AS, FM, GU, MH, MP, or PW,   1. SSPND 211 and correspond with the taxpayer for the correct state code.

    Note:

    If the return is truly non-taxable, do not correspond. Delete 01SC1.


    2. No reply: Delete entry in 01SC1.

3.12.154.7.12  (01-01-2012)
Field 01ABCD - ABCD Indicator - 1 Position

  1. The ABCD Indicator will no longer be edited. The ABCD Indicator will not be used.

3.12.154.7.12.1  (01-01-2012)
Field 01ABCD Invalid Condition

  1. This field is invalid if it is not "Blank" .

3.12.154.7.12.2  (01-01-2012)
Field 01ABCD Correction Procedures

  1. Compare the screen entry with the entry on the return.

  2. If code is present, delete the entry from Field 01 ABCD.

3.12.154.7.13  (01-01-2012)
Field 01CAF - Central Authorization File - 1 Position

  1. Form 2848, Power of Attorney and Declaration of Representative and Form 8821, Tax Information Authorization(TIA) are forwarded to the Central Authorization File Unit (CAF) by Code & Edit function.

  2. Editing of CAF Codes by Code & Edit is no longer necessary.

  3. If a Form 2848 or 8821 is still attached to the return, detach and route to the CAF function.

  4. If a "General Power of Attorney" or a " Durable Power of Attorney" or "Tax Information Authorization " is submitted on any document other than Form 2848 or Form 8821, leave it attached to the return. Do not detach. Do not route to the CAF function.

3.12.154.7.13.1  (01-01-2012)
Field 01CAF Invalid Condition

  1. FIELD 01CAF is invalid if it contains any entry.

3.12.154.7.13.2  (01-01-2012)
Field 01CAF Correction Procedures

  1. Compare the return to the screen entry with the entry on the return.

  2. If a code is present, clear Field 01 CAF.

3.12.154.7.14  (01-01-2012)
Field 01SIC Schedule Indicator Code - 1 Position

  1. The Schedule Indicator Code (SIC) is used to notify the computer that the Record of Quarterly Federal Tax Liability (ROFTL) is incomplete or unnecessary. SIC 1 would be edited when:

    1. Total FUTA Tax is $500 or less.

    2. The ROFTL Total is $500 or less.

    3. The ROFTL Total is $500 or more.

    4. There is a negative amount in the ROFTL.

    5. The ROFTL is blank.

    6. There is a total in the ROFTL, but there are no Quarterly Liability Amounts present.

    7. The Total FUTA tax is more than $500 and the Total in the ROFTL is more than $500, but there is a difference of more than ≡ ≡ ≡ ≡ ≡ between the two amounts.

  2. The Schedule Indicator Code (SIC) can be found in the following locations:

    Form Location
    Form 940 (Revisions 2006 through 2011) In the margin, to the right of the line that separates the entity information from Part 1. Exhibit 3.12.154-1.
    Form 940-PR (Revisions 2006 through 2011) In the margin, to the right of the line that separates the entity information from Part 1. Exhibit 3.12.154-2.
    Form 940 (2005 and prior revisions) In the margin, to the right the line that separates the entity information from the ABCD Questions. Exhibit 3.12.154-3.
    Form 940-EZ (2005 and prior revisions) In the margin, to the right of the line that separates the entity information from the AB Questions. Exhibit 3.12.154-4.

    Note:

    All form 940-EZ Returns must be converted to Form 940 Returns.

    Form 940-PR (2005 and prior revisions) In the margin, to the right of line that separates the entity information from the ABC Questions. Exhibit 3.12.154-5. and Exhibit 3.12.154-6.

3.12.154.7.14.1  (01-01-2012)
Field 01SIC Invalid Condition

  1. This field is invalid if it is other than "1" or "blank" .

3.12.154.7.14.2  (01-01-2012)
Field 01SIC Correction Procedures

  1. Check the field with the return and take the following actions:

    If Then
    There is a transcription error, Enter the correct data.
    A valid code is not present on the return, Delete the entry.

3.12.154.7.15  (01-01-2012)
Field 01MID - Multiple ID Code - 1 Position

  1. We will no longer capture the state reporting number. Therefore, the Multiple ID Code is not necessary. It will not be edited.

3.12.154.7.16  (01-01-2012)
Field 01MSB - Multi-State Filer Check Box Indicator - 1 position

  1. This box is found in Part 1, Line 1b. If this box is checked, the taxpayer is signifying that wages were paid in more than one state. Schedule A, Part 1 should also be completed when Box 1b is checked. Valid entries for 01MSB are "1" and blank.

3.12.154.7.16.1  (01-01-2012)
Field 01MSB - Invalid Conditions

  1. This field is invalid if one of the following occurs:

    1. Box 1a contains a valid state code and Box 1b is checked.

    2. Box 1b is checked and Schedule A is not present and completed.

3.12.154.7.16.2  (01-01-2012)
Field 01MSB - Correction Procedures

  1. Compare the screen entry with the entry on the return and do the following:

    If And Then
    Part 1, Box 1a (01SC1) contains a valid state code that is not subject to credit reduction and Box 1b (01MSB) is checked, Part 1 of Schedule A (Sections 03, 04, 05), Revisions 2006 through 2010 or Schedule A (Revision 2011) is not present or completed, Delete Box 1b (01MSB).
    Part 1, Box 1a (01SC1) contains a valid state code that is not subject to credit reduction and Box 1b (01MSB) is checked, Part 1 of Schedule A (Sections 03, 04, 05), Revisions 2006 through 2010 or Schedule A (Revision 2011) is present and only shows the single state listed in Box 1a (01SC1), 1. Delete Box 1b (01MSB).

    2. Delete entry from Part 1 of Schedule A (Sections 03, 04, or 05, as applicable), Revisions 2006 through 2010 or Schedule A (Revision 2011).
    Part 1, Box 1a (01SC1) contains a valid state code and Box 1b (01MSB) is checked, Part 1 of Schedule A (Sections 03,04, 05) , Revisions 2006 through 2010 or Schedule A (Revision 2011) is present and completed showing multiple states, 1. Verify that the state shown in Box 1a (01SC1) has been included on Part 1 of Schedule A (Sections 03, 04, 05), Revisions 2006 through 2010 or Schedule A (Revision 2011).

    2. If it has been checked, delete Box 1a (01SC1).

    3. If it has not been, check the appropriate state box on Part 1 and delete Box 1a (01SC1).
    Part 1, Box 1b (01MSB) is checked, Part 1 of Schedule A is present showing multiple states, but Section 03, 04 and 05, Revisions 2006 through 2010 or Schedule A (Revision 2011) are blank, Enter the state code information from Schedule A in Section 03, 04 and/or 05 (Revisions 2006 through 2010) or Schedule A (Revision 2011).
    Part 1, Box 1b (01MSB) is checked, Schedule A is missing or has not been completed, 1. Enter the valid entity state code in Box 1a (01SC1).

    2. Delete Box 1b (01MSB).
    Box 1a (01SC1) lists a valid state code that is subject to credit reduction, Part 2 of Schedule A (Revisions 2006 through 2010) or Schedule A (Revision 2011) is completed, No action is necessary.
    Box 1a (01SC1) lists a valid state code that is subject to credit reduction, Part 2 of Schedule A (Revisions 2006 through 2010) or Schedule A (Revision 2011) is not completed,

    Edit the Total Taxable Wage amount on the appropriate line in Part 2 of Schedule A (Section 03, 04 or 05, as applicable), Revisions 2006 through 2010 or Schedule A (Revision 2011).

    GTSEC 03 and enter the state code and the wage amount.

    Delete box 1b (01MSB).

3.12.154.7.17  (01-01-2012)
Field 01CRB - Credit Reduction Check Box Indicator - 1 position

  1. Box 2 must be checked when the taxpayer pays wages in a state that is subject to credit reduction. Valid entries for 01CRB are "1" and blank.

3.12.154.7.17.1  (01-01-2012)
Field 01CRB - Invalid Conditions

  1. This field is invalid if one of the following occurs:

    1. Box 2 contains an entry and none of the states listed on the return or attachments are subject to credit reduction.

    2. Box 2 contains an entry and the taxpayer is subject to credit reduction and Schedule A, Part 2 (Revisions 2006 through 2010) or Schedule A (Revision 2011) is missing or has not been completed.

3.12.154.7.17.2  (01-01-2012)
Field 01CRB - Correction Procedures

  1. Compare the screen entry with the entry on the return and do the following:

    If And Then
    Credit reduction did not apply for the year that the taxpayer is filing,   Delete the entry in 01CRB.
    The taxpayer is a multi-state filer subject to credit reduction, Schedule A, Part 2 (Revisions 2006 through 2010) or Schedule A (Revision 2011) is missing or has not been completed, 1. SSPND 211 and correspond with the taxpayer for Schedule A, Part 2 (Revisions 2006 through 2010) or Schedule A (Revision 2011) information.
    2. No reply:
    a. Enter the Entity State Code into 01SC1.
    b. Delete 01MSB.
    c. Enter "1" in 01CRB, if not present.
    d. Use Total Taxable Wages as the Credit Reduction Wage amount, if necessary.
    The taxpayer is a single filer Schedule A, Part 2 (Revisions 2006 through 2010) or Schedule A (Revision 2011) is missing or has not been completed, and Box 01CRB and Box 01SC1 are not checked 1. Correspond with the taxpayer for Schedule A, Part 2 (Revisions 2006 through 2010) or Schedule A (Revision 2011) information.
    2. No reply:
    a. Enter the Entity State Code into 01SC1.
    b. Enter "1" in 01CRB, if not present.
    c. Use Total Taxable Wages as the Credit Reduction Wage amount, if not present.

3.12.154.7.18  (01-01-2012)
Field 01SRI-Form 940, Schedule R Indicator - 1 Position

  1. This field is used to indicate that a Form 940, Schedule R "Allocation Schedule for Aggregate Form 940 Filers" was attached to the Form 940 when filed

  2. The Schedule R (Form 940) and its continuation sheet are created to identify the clients by EIN and allocate the clients "federal income tax withholding amounts being reported on the agent's aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. " Agents will be required to attach Schedule R (Form 940) and any continuation sheets to Form 940 calendar year 2011.

  3. Valid entries are "R" (active) or blank (inactive)

  4. When the 940 is filed with a Schedule R attached, Code and Edit will edit an "R" to the right margin next to Line 6, "Subtotal"

3.12.154.7.18.1  (01-01-2012)
Field 01SRI Invalid Conditions

  1. This field is invalid if any character other than "R" is present.

3.12.154.7.18.2  (01-01-2012)
Field 01SRI Correction Procedures

  1. If a character other than "R" is present then delete the entry.

3.12.154.7.19  (01-01-2012)
Field 01CRD Correspondence Received Date - 8 Positions

  1. The Correspondence Received Date field is used as a second date in computing interest on overpayments.

  2. If all the positions in the field are blank, it does not cause an invalid condition.

3.12.154.7.19.1  (01-01-2012)
Field 01CRD Invalid Conditions

  1. This field is invalid if:

    1. It is not numeric,

    2. Not in YYYYMMDD format,

    3. Not in the valid month, day range, and/or

    4. The same as, or prior to the due date of the return.

3.12.154.7.19.2  (01-01-2012)
Field 01CRD Correction Procedures

  1. Compare the screen entry with the entry on the return and do the following:

    1. Determine the Correspondence Received Date in the following priority:

      • Correspondence Received Date Stamp

      • Postmark Date on envelope

      • Current Date

        Exception:

        Fax Replies.

    2. Determine the Correspondence Received Date in the following priority for Fax Replies:

    • Correspondence Received Date Stamp

    • Date the reply was faxed

    • Date entered on fax cover sheet by the taxpayer

    • Current Date

    If Then
    Transcribed incorrectly Enter the correct CRD from the correspondence
    The date is illegible, Check the attached correspondence, which bears a received date stamp for the correct date.
    More than one CRD is stamped or written, Use the earliest date as the CRD.
    There is No Reply, Enter CCC "3" , unless equal to or prior to the due date.

3.12.154.7.20  (01-01-2012)
Field 01ARN Applied Refund Indicator - 1 Position

  1. Description -This field is used to indicate that the taxpayer has requested that an overpayment of $1.00 or more be either credit elect (CCC E generated) or refund (CCC S generated).

  2. If the Applied Refund Indicator"2" is present, then the system will generate CCC"S" .

  3. If the Applied Refund Indicator is blank, then the system will generate CCC"E" (if CCC "F" is not present). If CCC "F" is present, then CCC "S" will generate.

3.12.154.7.20.1  (01-01-2012)
Field 01ARN Invalid Condition

  1. This field is invalid if it is not blank or " 2" .

3.12.154.7.20.2  (01-01-2012)
Field 01ARN Correction Procedures

  1. Check the field with the return and do the following:

    If Then
    There is a transcription error, Enter the correct data.
    An incorrect code is present, Correct the entry.
    The "Refund" box is checked, Enter "2" .
    The "Applied to Next Return" box is checked, 01ARN should be blank- Unless CCC "F" is present,
    then enter "2" .
    Both boxes are checked, 01ARN should be blank- Unless CCC "F" is present,
    then enter "2" .
    Neither box is checked, 01ARN should be blank - Unless CCC "F" is present,
    then enter "2" .

3.12.154.7.21  (01-01-2012)
Field 01CBI Third Party Designee Checkbox Indicator - 1 Position

  1. Description - Valid character for this field is "1" or blank.

  2. This field has one (1) position.

3.12.154.7.21.1  (01-01-2012)
Field 01CBI Invalid Conditions

  1. The Third Party Designee information is present and no check box indicator is marked by the taxpayer.

  2. An invalid character may have been entered. For example, &, #, –, or ( ).

3.12.154.7.21.2  (01-01-2012)
Field 01CBI Correction Procedures

  1. If the taxpayer checked the "YES" Box in the Third Party Designee area on the bottom portion of the return, then enter "1" in the field and transmit.

  2. If the "YES" Checkbox is not marked by the taxpayer, clear all entries on the screen and transmit.

  3. Do not correspond or take any further action.

3.12.154.7.22  (01-01-2012)
Field 01CBT - Third Party Designee Checkbox Phone Number - 10 Positions

  1. No action is necessary. This information will not be captured.

3.12.154.7.23  (01-01-2012)
Field 01CBP Third Party Designee Checkbox Personal Identification Number (PIN) - 5 Positions

  1. Description - the valid characters for this field are alpha, numeric or a combination of both.

  2. The field length is five (5) positions.

  3. This number is not issued by IRS. This number is self selected by the taxpayer.

3.12.154.7.23.1  (01-01-2012)
Field 01CBP Invalid Conditions

  1. Verify the entry for any invalid characters.

  2. An invalid character such as &, #, –, or ( ). may have been entered.

3.12.154.7.23.2  (01-01-2012)
Field 01CBP Correction Procedures

  1. Verify the entry.

  2. Correct any invalid characters.

  3. If there are no invalid characters in the Third Party Designee PIN, then blank the field and transmit.

  4. Do not correspond and take no further action.

3.12.154.7.24  (01-01-2012)
Field 01PSN - Paid Preparer's SSN or PTIN - 9 positions

  1. This field contains the preparer's Social Security Number (SSN) or Preparer's Tax Identification Number (PTIN). The SSN is issued by the Social Security Administration. The PTIN is issued by IRS.

    1. This entry can be Blank or 9 digits.

    2. The Paid Preparer's SSN must be a 9 digit number.

    3. The PTIN is a valid entry in the Preparer's Social Security Number area at the bottom of Form 940 and Form 940-PR. The PTIN is a 9 character number beginning with the letter "P" followed by eight numbers. For example: PXXXXXXXX

3.12.154.7.24.1  (01-01-2012)
Field 01PSN - Invalid Conditions

  1. This field is invalid if any of the following conditions are present:

    1. Field 01PSN is other than nine numeric digits or a "P" followed by eight numbers.

    2. The field contains all zeros.

    3. The field contains all nines.

3.12.154.7.24.2  (01-01-2012)
Field 01PSN - Correction Procedures

  1. Compare the screen entry with the return and do the following:

    If Then
    A valid PTIN is present, Enter the PTIN in Field 01PSN.
    A valid SSN is present, Enter the SSN in Field 01PSN.
    A valid PTIN and SSN are both present, Enter the PTIN in Field 01PSN.
    A valid PTIN or SSN cannot be located, Delete 01PSN.

3.12.154.7.25  (01-01-2012)
Field 01PEN - Firm's EIN - 9 positions

  1. This field contains the preparer firm's Employer Identification Number (EIN). The Firm's EIN:

    1. Can be Blank or 9 digits.

    2. If an entry is present, it must contain 9 digits.

    3. If an entry is present, it cannot be all zeros or all nines.

3.12.154.7.25.1  (01-01-2012)
Field 01PEN - Invalid Conditions

  1. This field is invalid if one of the following occurs:

    1. Field 01PEN is other than nine numbers. Alpha characters cannot be present.

    2. Field 01 contains all zeros.

    3. Field 01 contains all nines.

3.12.154.7.25.2  (01-01-2012)
Field 01PEN - Corrections Procedures

  1. Compare the screen entry with the entry on the return, and do the following:

    If Then
    A Valid EIN is present on the return or attachments, Enter the EIN in Field 01PEN.
    If a valid EIN cannot be located, Delete Field 01PEN.

3.12.154.7.26  (01-01-2012)
Field 01PTN - Paid Preparer's Telephone Number - 10 positions

  1. The Paid Preparer's Telephone Number is located in Part 8 of Page 2 of Form 940 and Form 940-PR. This field is not valid for any tax years prior to 2008.

3.12.154.7.26.1  (01-01-2012)
Field 01PTN - Invalid Conditions

  1. This field is invalid if it is less than 10 characters.


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