Section 15 - Return of Partnership Income

3.12.15 Return of Partnership Income

Manual Transmittal

October 22, 2025

Purpose

(1) This transmits revised IRM 3.12.15, Error Resolution - Return of Partnership Income.

Material Changes

(1) IRM 3.12.15.1.7(1) - Updated the Related Resources links. (IPU 25U0065 issued 01-17-2025)

(2) IRM 3.12.15.2.4.1(2) - Updated the Taxpayer Advocate Service (TAS) Service Level Agreements link. (IPU 25U0065 issued 01-17-2025)

(3) IRM 3.12.15.2.12.1(1) - Updated the description for Action Codes 343, 420, 450, and 460. (IPU 25U0065 issued 01-17-2025)

(4) IRM 3.12.15.2.15.1.2(4) - Added bullet point for Certain dealers in securities.

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(14) IRM 3.12.15.4.2(2) - Added a note to 01TT to explain that the technical termination is not applicable after 2018. Added 01NPV.

(15) IRM 3.12.15.4.7 - Added clarification that Box C is NACIS Code.

(16) IRM 3.12.15.4.11(4)(e) - Added new instruction to verify the number of partners due to programming change. (IPU 25U3295 issued 05-16-2025)

(17) IRM 3.12.15.4.11(4)(e) - Changed wording to “Add” versus “Enter” for cleared understanding of how to clear the error. (IPU 25U3386 issued 06-09-2025)

(18) IRM 3.12.15.4.11(4)(e) - Added new instruction to include IRC 501(d) in the table. (IPU 25U3295 issued 05-16-2025)

(19) IRM 3.12.15.4.22 - Changed "Form 1065" to "Taxpayers" .

(20) IRM 3.12.15.4.30(4) - Added RPC "P" and RPC "Q" to the table for NUM-PARTNERS field due to programming change. (IPU 25U3295 issued 05-16-2025)

(21) IRM 3.12.15.5.2(2) - Added 02KA2 and 02KA3 to Error Record Layout.

(22) IRM 3.12.15.9.2(2) - Added that the checkbox deals with a §754 election.

(23) IRM 3.12.15.10.2(2) - Added 07EPV for to Error Record Layout.

(24) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(25) IRM 3.12.15.11 - Removed Form 4797 from title.

(26) IRM 3.12.15.11.2 - Removed Form 4797 and updated table.

(27) IRM 3.12.15.11.5 - Saved for Future use. Form 4797 now is Section 12.

(28) IRM 3.12.15.11.15 - Updated title.

(29) IRM 3.12.15.11.16 - Updated title.

(30) IRM 3.12.15.12 - Updated IRM Section 20 to new IRM Section 12; Form 4797.

(31) IRM 3.12.15.12 - Added General Information Subsection for Section 12.

(32) IRM 3.12.15.12.7 - Removed Field 101B and Field 101C - Form 4797 and moved to Section 12. Renumbered remaining subsections.

(33) IRM 3.12.15.12.7 - Added fields 101B and 101C requirements to Section 12, from Section 10.

(34) IRM 3.12.15.14.2 - Removed Section 22 information.

(35) IRM 3.12.15.17 - Added a new subsections for Section 27, Form 8283 with instructions for Error Resolution and Field Designators.

(36) IRM 3.12.15.21 - Added Section 60 and subsections for the Direct Deposit requirement.

(37) IRM 3.12.15.22.9 - Added 01NPV, Section 10, Section 12, Section 27 and Section 60 to Error Code 010.

(38) IRM 3.12.15.22.10 - Added 01NPV, Section 10, Section 12, Section 27 and Section 60 to Error Code 012.

(39) IRM 3.12.15.22.14(4) - Added that the IRC 806 was repealed by the 2017 TCJA.

(40) IRM 3.12.15.22.14.1(2) - Updated "No Reply" procedures for Error Code 026. (IPU 25U0406 issued 03-27-2025)

(41) IRM 3.12.15.22.14.1(2) - Updated tax periods for current year processing.

(42) IRM 3.12.15.22.20 - Added 01NPV to Error Code 725.

(43) IRM 3.12.15.22.22 - Added 01NPV to Error Code 727.

(44) IRM 3.12.15.22.23(3)(a) - Added new instruction to include IRC 501(d) in the table. (IPU 25U3386 issued 06-09-2025)

(45) IRM 3.12.15.22.23 - Added 01NPV to Error Code 728.

(46) IRM 3.12.15.22.24(3)(e) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

(47) IRM 3.12.15.22.24(3)(f) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

(48) IRM 3.12.15.22.24(4) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

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(50) IRM 3.12.15.22.25(3)(c) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

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(53) IRM 3.12.15.22.26(4)(e) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

(54) IRM 3.12.15.22.26(5) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

(55) IRM 3.12.15.22.26 - Corrected 07EVP to 07EPV.

(56) IRM 3.12.15.22.28 - Added instruction for Field 0316.

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(59) IRM 3.12.15.22.31(3)(e) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

(60) IRM 3.12.15.22.31(3)(f) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

(61) IRM 3.12.15.22.31(4) - Removed the Caution for sending Letter 3024C because programming is implemented. (IPU 25U0065 issued 01-17-2025)

(62) IRM 3.12.15-12 - Removed exhibit for the Form 5884-B.

(63) Exhibit 3.12.15-1 - Added descriptor lines 10b - 10d and 23 - 32d. Corrected line names.

(64) Exhibit 3.12.15-13 - Added page 2 descriptors for the Form 8283.

(65) Exhibit 3.12.15-14 - Added new exhibit for Form 8283.

(66) Exhibit 3.12.15-17 - Added new graphics for pages 4 and 5 of Form 4255. Moved ERS information from page 2 to page 3.

(67) Exhibit 3.12.15-18 - Updated descriptor lines to current form revision. Added new lines.

(68) Exhibit 3.12.15-23 - Updated "No Reply" procedures for Error Code 026. (IPU 25U0406 issued 03-27-2025)

(69) Revised the Internal Revenue Manual (IRM), where necessary, for the following types of plain language changes and editorial changes.

• Used simpler words

• Removed unnecessary words

• Changed consistency sections per BMF Consistency template

• Corrected spelling and grammatical errors

• Corrected references, citations, and links

• Updates to line numbers

• Updated graphics and alternative text

• Updated dates and tax years

Effect on Other Documents

IRM 3.12.15, Error Resolution - Return of Partnership Income, dated November 21, 2024, (effective January 1, 2025) is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs): 25U0065 issued January 17, 2025, 25U0406 issued March 27, 2025, 25U3295 issued May 16,2025, 25U3386 issued June 9, 2025, IPU 25U3469 issued July 8, 2025, IPU 25U3551 issued August, 8, 2025.

Audience

Taxpayer Services (TS), Campus Input Correction Operation

Effective Date

(01-01-2026)

Scott Wallace
Director, Submission Processing
Customer Account Services
Taxpayer Services

3.12.15.1 (01-24-2024)

Program Scope and Objectives

1. This IRM section gives instructions for Taxpayer Services, Error Resolution Tax Examiners to correct errors for Form 1065, U.S. Return of Partnership Income.

2. Purpose: The Error Resolution System (ERS) is a means to resolve errors made by taxpayers and correct errors made during campus processing.

3. Audience: Tax Examiners in the Input Correction Operation and Error Resolution Section, including:

   • Tax Examining Technicians

   • Lead Tax Examining Technicians

   • Supervisory Tax Examining Assistants

4. Policy Owner: Director, Submission Processing.

5. Program Owner: Return Processing Branch, Business Master File (BMF) Section.

6. Primary Stakeholders: Other areas that may be affected by these procedures include:

   • Accounts Management (AM)

   • Chief Counsel

   • Compliance

   • Information Technology (IT) Programmers

   • Large Business and International (LB&I)

   • Small Business Self-Employed (SBSE)

   • Statistics of Income (SOI)

   • Submission Processing (SP)

   • Taxpayer Advocate Service (TAS)

   • Tax Exempt and Government Entities (TEGE)

7. Program Goals: Ensure all necessary action is taken on the return and attachments to ensure correct posting of the return data.

3.12.15.1.1 (01-01-2019)

Background

1. The purpose of Error Resolution is to resolve validity errors, field errors, consistency errors, and math errors in returns and other documents for posting to the Master File. Records fall out in Error Resolution System (ERS) due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields. The GMF programming causes a record to fall out to ERS if it fails to meet certain criteria, including:

   • Invalid characters in a field (e.g., numeric instead of alpha).

   • Invalid length of field (e.g., EIN with 8 digits instead of 9).

   • Invalid codes in field (valid Action Codes, Audit Codes, etc. are programmed in GMF).

   • Consistency errors - Any valid field used in any computation where the result is inconsistent with (or contradictory to) any other valid field.

   • Math errors - computer does math computation and it differs from the taxpayer’s amount.

   • Invalid Tax Periods and eligibility for certain credits.

2. Employees use ERS to correct these conditions and when necessary, use Integrated Data Retrieval System (IDRS) to research.

3.12.15.1.2 (01-01-2022)

Authority

1. Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations:

   • IRC 6031(a)

   • IRC 6213(b)

2. All Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements.

3.12.15.1.3 (01-01-2018)

Responsibilities

1. The Campus Director is responsible for monitoring operational performance for their campus.

2. The Operations Manager is responsible for monitoring operational performance for their operation.

3. The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

4. The Team Employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

3.12.15.1.4 (01-01-2018)

Program Management and Review

1. Program Reports: System control reports are on the Control-D WebAccess (CTDWA) and a general listing of the reports are found in IRM 3.12.38, Error Resolution, BMF General Instructions.

2. Program Effectiveness is measured using the following:

   • Embedded Quality Submission Processing (EQSP)

   • Balanced Measures

   • Managerial reviews

3.12.15.1.5 (01-01-2018)

Program Controls

1. Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

3.12.15.1.6 (01-01-2018)

Terms/Definitions/Acronyms

1. For Terms, Definitions and Acronyms See Exhibit 3.12.15-27.

3.12.15.1.7 (01-17-2025)

Related Resources

1. The following table lists related sources:

   Resource	Link/Title
   Instructor’s Corner for Submission Processing	Instructor’s Corner for Submission Processing
   Servicewide Electronic Research Program (SERP)	Servicewide Electronic Research Program (SERP)
   Integrated Data Retrieval System (IDRS)
   Integrated Automation Technologies (IAT)	Integrated Automation Technologies (IAT)
   IRM 3.11.15	Returns and Documents Analysis - Return of Partnership Income
   IRM 3.24.15	ISRP System - Partnership Return of Income
   IRM 3.12.38	BMF General Instructions

3.12.15.2 (01-01-2022)

♦General Information♦

1. This IRM cannot address every possibility that occurs while correcting returns or documents. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to the Subject Matter Expert (SME), lead or manager to determine the corrective action.

3.12.15.2.1 (01-24-2024)

♦Business Master File (BMF) Consistency♦

1. The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Error Resolution System (ERS) processing IRMs.

2. Ogden, Kansas City, and Return Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.

3. A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.

4. Text in normal print is the common process for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

3.12.15.2.2 (04-10-2024)

♦IRM Deviation Procedures♦

1. Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

3.12.15.2.3 (01-01-2026)

♦Refund Returns 45 Day Jeopardy and High Dollar Refunds♦

1. Document Perfection and ERS are responsible for identifying refunds and for initiating requests for manual refunds.

2. Expeditious processing of refund returns is critical if the 45-day period is about to expire.

   If	Then
   The processing date is more than 20 days after the Received date or, the Return Due Date (whichever is later) and the 45-day interest free period and the refund amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ### Note: Refund in this instruction means only the amount requested to be refunded to the taxpayer, not the overpayments transferred to other periods.	1. SSPND with Action Code "341" . 2. Attach Form 4227, Intra-SC Reject or Routing Slip, and route to ERS/Rejects for manual refund.
   The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	1. SSPND with Action Code "341" for numbered and unnumbered returns. 2. Attach Form 4227, Intra-SC Reject or Routing Slip, and route to Rejects for manual refund.

3. Taxpayer Advocate Service (TAS) Manual Refunds - any return hand walked by TS Submission Processing (SP) liaison for Taxpayer Advocate Service may be processed by a Lead Tax Examiner or designated tax examiner using the following procedures in the order listed:

   1. Computer Condition Code (CCC) "O" must be edited on the return and entered in Field 01CCC.

   2. Delete CCC "Y" from Field 01CCC.

   3. Continue processing the return according to Error Code procedures.

4. Correspondence: If required for missing or incomplete information, follow the procedures below:

   1. Complete the correct correspondence action sheet and request all missing or incomplete information.

   2. Inform the TS SP liaison of all information that is being requested.

   3. Suspend (SSPND) with the correct suspense code and give the return back to the TS SP liaison.

      Note:

      The TS SP liaison will contact the Taxpayer Advocate to obtain the required information need to complete processing.

5. More suspense action needed: If the return requires other suspense action, then follow procedures below:

   1. Initiate suspense (SSPND) with Action Code according to IRM procedures.

   2. Inform the TS SP liaison to reason for the action taken,

   3. Give the return back to the liaison.

      Note:

      The TS liaison will contact Taxpayer Advocate, who in turn will that the necessary actions to complete the processing of the return.

6. Assigning Taxpayer Notice Codes (TPNCs/Math Error). When a math error is identified, do the following:

   1. Assign the TPNC according to IRM procedures.

   2. After all TPNCs have been assigned. inform the TS SP liaison of the TPNCs issued.

   3. Suspend (SSPND) with the correct Action Code (suspense must be done at the generated point of error and give the return to the liaison).

7. When Balance Due/Overpayment Math Error Code (EC) generates do the following:

   1. Make screen print of the Error Code Display, highlight the Computer-Generated Refund Amount, and attach the print to the front of the return with the entity portion of the return visible.

   2. Enter the amount the taxpayer claimed as the amount they requested to be refunded back into Field 07B/R.

   3. If Balance Due/Overpayment Math Error Code regenerates because the taxpayer made a math error when computing their refund, then make a screen print of the Error Code Screen Display and highlight the computer generated amount. Attach the print to the front of the return keeping the entity area visible and assign the correct TPNC.

   4. Once the return completes processing, give the return Form 12412, Operations Assistance Request (OAR), and the ERS screen print to the TS SP liaison.

8. Rejects Suspense Procedures:

   1. Follow specific instructions given by TS SP liaison. Correspond and assign correct TPNCs as directed.

   2. Refer to paragraphs (6) and (7) above.

3.12.15.2.4 (01-01-2025)

♦Taxpayer Advocate Service (TAS)♦

1. The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

2. TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Taxpayer Services (TS) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

3. Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day.

4. The definition of "Same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

   • The issue can be resolved within 24 hours.

   • The IRS takes steps within 24 hours to resolve the taxpayer’s issue.

5. When making a TAS referral, use Form 911, and forward to TAS following your local procedures.

6. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

3.12.15.2.4.1 (01-17-2025)

♦TAS Service Level Agreements (SLAs)♦

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

2. The SLAs are found at TAS Service Level Agreements.

3.12.15.2.5 (01-01-2024)

♦IRS Employee Contacts♦

1. The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3705(a), gives identification requirements for all IRS employees working tax related matters.

2. All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

   1. Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

   2. Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and badge identification (ID Card) number.

   3. Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

   4. Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

3. When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer’s inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

4. Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves. They will provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

5. It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) their badge identification (ID Card) number on the first contact.

3.12.15.2.6 (01-01-2023)

♦Frivolous Arguments♦

1. Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.12.15-24, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

2. Review the return to decide whether it appears to be a frivolous return.

   Frivolous Return Criteria

   If	Then
   The return meets any of the conditions shown as a frivolous return, See Exhibit 3.12.15-24, Potential Frivolous Arguments for Examination Review ### Exception: If the return shows Action Code "331" and has a Form 4227, Intra-SC Reject or Routing Slip, attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to next procedure.	Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review.
   Examination has selected the return as frivolous, shown by Action Code "331" and a Form 4227 with the remarks. "Refer to Exam FRP for audit after processing" but send the return for processing,	Continue processing the return using procedures in IRM 3.12.15. However, do not circle or void the Action Code showing a frivolous return.

    

3. Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument:

   • Returns that have only zeros, blanks, or no entries.

   • Returns showing "None" , "Not Liable" , etc.

3.12.15.2.7 (01-01-2023)

Error Correction Process

1. All Form 1065 Error Screen displays will appear as follows:

   • Tax Class - 2

   • Document Code 65 - Form 1065

   • Document Code 67 - Form 1065 (Publicly Traded Partnerships or "PTP" )

3.12.15.2.8 (01-01-2020)

Inventory Reports

1. Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction. Once the Error Resolution Tax Examiner accesses the record and it is displayed on the screen, it must be:

   1. Corrected in full by correcting errors in editing or transcription and/or correcting math errors.

   2. Placed in suspense for more information.

   3. Rejected from pipeline processing.

2. Each day the Error Inventory Report will be furnished showing:

   1. Blocks, by the block control number, and block Document Locator Number (DLN) in DLN order.

   2. Each batch will be on a separate page.

   3. Blocks received from Block Out of Balance (BOB) Correction will be listed separately.

   4. A copy of the report must be on the carts of documents and used as a charge-out to determine when a cart is completed.

   5. The first line of the Error Inventory Report will show the number of working days the records on that page have been in the Error Inventory. This will enable work left from a previous day to have priority.

3.12.15.2.9 (01-01-2020)

Workable Suspense Inventory Report

1. Each day the Workable Suspense Inventory Report will be furnished showing the records by Program in DLN order for various status situations. Separate pages for each program, with totals, will be given.

2. The first line of the report will show the number of working days that the records have been in the Workable Suspense Inventory. This will allow priority to be given to the older work.

3.12.15.2.10 (01-01-2023)

Error Displays and Corrections

1. All Form 1065 Error Screen Displays will display as follows:

   • Each field is identified by an Alpha/Numeric field Designator (AFD) displayed before the field.

   • Fields are displayed with no breaker.

   • Negative values are shown by a minus ("-" ) sign following the amount.

   • Decimal points are displayed beginning in the left position.

   • Leading zeroes in amount fields are suppressed and the significant digits are displayed beginning in the left position.

   • If more than one amount field of a record is to be shown, the unit positions are aligned beneath one another.

   • Sufficient leading blanks are displayed preceding the shorter amounts so the unit position of these amounts is directly in line with the unit position of the longest amount.

   • The cents digits are not displayed for "Dollars Only" fields. So that the unit position will remain in line with the other fields of the section, two asterisks ("**" ) are displayed in the cents position of the dollars only field.

2. Corrections are entered starting with the left-most position of the field. Blank-out unused positions.

   • If fewer than the maximum number of positions is required, the program will automatically move to the right of the digits.

   • It is not necessary to enter the decimal point. If the decimal point is entered, it will be ignored.

   • A minus sign ("-" ) must be entered as the last numeric if the amount is negative.

3. Be careful not to enter more than the number of positions allowed for a particular field. If more data is entered, the overflow characters will display on the screen but are dropped when the field is added to the record. This is especially important for the Taxpayer Identification Number (TIN), name and address.

4. Corrections can be made to a displayed field by overlaying only the digits in error and not re-entering the entire field. It is not necessary to eliminate the decimal point when correcting in this manner.

5. If it is necessary to add a missing section:

   1. Transmit with Command Code (CC) GTSEC, followed by the desired section Number.

   2. When the empty section format is displayed, enter the missing data in the proper fields and transmit with CC CRECT.

6. If it is necessary to see a field or section of the record other than that shown in the display:

   1. Enter CC GTSEC, followed by the desired section Number.

   2. If a correction is not made to the section, drop to the bottom of the screen, and transmit.

   3. Any error display not showing all fields necessary for resolution must be reported to Headquarters.

      Reminder:

      When transmitting corrections to a screen display, move the cursor below the last field that has data before transmitting.

7. If it is necessary to delete a section of the record, enter CC DLSEC, followed by the desired section Number.

8. If it is determined during the course of correcting a Priority II, III or IV Error, that more information or research is necessary to resolve the error (or if the error is rejected), enter the appropriate Action Code with either CC SSPND or RJECT.

3.12.15.2.11 (01-01-2020)

Command Codes

1. The Command Codes (CCs) needed for correcting the Error Inventory and the Workable Suspense Inventory are briefly described below. Any CC in the Employees Security Profile will be available:

   Command Code	Description
   ACTVT	Used to transfer unworkable suspense records to workable suspense inventory.
   CRECT	* Used to enter a correction. * Valid only after an error has been displayed in response to the GTREC command.
   DLSEC	Used to delete a section within the record in progress.
   ENMOD	Used to research a name control.
   ERINV	Used to research a DLN or TIN on the ERS Control File.
   ERVOL	* Used with a Status Code to display the number of ERS records in the current Workable Inventory. * Used to obtain the actual count of records to be worked. * Printed reports for ERS are updated nightly.
   FRM49	Used to input a fact of filing when an unnumbered return is withdrawn from normal processing, i.e., correspondence.
   GTREC	* Used to access the first error record in an ERS error block. * Used to access a specific record in the Workable Suspense Inventory.
   GTRECQ	Used to access a worked record that has been held for Quality Review.
   GTRECW	* Used to recover an ERS data record that has already been worked. * Can be used at any time on the same processing day. ### Note: Errors discovered on subsequent days must be corrected by using Notice Review and Adjustment procedures.
   GTSEC	* Used to obtain the display of any data section within the record in progress. * Response is the display of all correctable fields of the requested section, including blank fields. * Computer generated fields and error indicators will not be shown. * If no data is present in the specified section, the empty format of the requested section is displayed.
   INOLE	Used to access the National Account Profile (NAP) which has selected entity information for all Master File accounts.
   MFTRA	Used to request a hard copy transcript for a specific TIN.
   NAMEE	* Used to research a missing or incomplete Employer Identification Number (EIN)/TIN. * Name and address data is input to search the Key Index File.
   NWDLN	Used to assign a renumbered DLN on an ERS record.
   RJECT	Used to delete a record from ERS.
   SINOF	* Used to Sign Off the computer. * SINOF is used by all terminal users, including ERS, Generalized Unpostable Framework (GUF) and IDRS. * SINOF is displayed, but must be keyed onto the screen when signing off. * Response is "Request Completed"
   SINON	* Used to Sign On to the computer. * SINON is displayed but must be keyed onto the screen when signing on. * Password is entered but does not appear on the screen.
   SSPND	* Used with an ERS Action Code to place a record into Suspense status. * SSPND is valid for Error Correction and Suspense Correction.
   TRDBV	Tax Return Data Base * Used to access 100 percent of return data as well as all subsequent corrections entered via ERS and GUF. * Used to verify specific line items (including any correction activity), resolve taxpayer inquiries, identify refund issues, and verify filing and return status.

3.12.15.2.12 (01-01-2024)

Action Codes

1. Action Codes (AC) are input when information is missing, or the return must be suspended from processing.

2. For a listing of valid ERS Action Codes, See IRM 3.12.15.2.12.1, Action Code Chart, below.

3. Document Perfection Tax Examiners will assign a three digit code to a numbered return when they determine that the document is unprocessable in its present form either because more information is necessary or some manual intervention is required. This code will be entered in the bottom left margin of the return.

4. A Correspondence Action Sheet is used for initiating correspondence. This form is attached by Document Perfection. When routing within the campus (in-house research), an explanation concerning the missing information will need to be attached to the return.

5. The Action Code assigned by Document Perfection will be transcribed into the record of the Form 1065.

6. The presence of a valid Action Code other than 001 will place the record in the Suspense Inventory, either Workable or Unworkable.

7. If the Action Code assigned by Document Perfection is invalid or incomplete, the record will be assigned to the Error Inventory for correction or deletion of the code.

8. Only one Action Code may be assigned at one time to a record. The priority of the Action Codes will be 320, 4XX, 6XX, 3XX, 2XX.

9. An ERS Tax Examiner may:

   1. Enter an Action Code on a record.

   2. Delete or correct an invalid code.

   3. Overlay the present Action Code with another to either resuspend or reject from ERS. This is done by entering a valid Action Code with CC SSPND, RJECT or NWDLN. See IRM 3.12.38, Error Resolution, BMF General Instructions, for more information.

   4. Enter a valid Action Code with CC SSPND to clear the record from the screen and place the record in either Workable Suspense or Unworkable Suspense.

   5. Enter a valid Action Code with CC RJECT to reject the record from ERS. Generally, the Service Center Control File (SCCF), will be automatically updated for the rejected records.

3.12.15.2.12.1 (01-17-2025)

Action Code Chart

1. The Action Code (AC) shows that specific information is missing or that the return is to be rejected from processing. The code will show if taxpayer correspondence is needed or if specific in-house research or other action is required. This chart describes each AC, their functional use (CE = Code and Edit, EC = Error Correction, S = Suspense Correction and GEN = computer generated) and the suspense period.

   Action Code	Description	Workday Suspense Period	Function Used In
   001	Input Document	0	GEN
   210	EPMF Correspondence	60	EC, S
   211	First Taxpayer Correspondence	40	CE, EC, S
   212	Second Taxpayer Correspondence	25	CE, EC, S
   213	Correspondence to Other Than Taxpayer	40	CE, EC, S
   215	International Correspondence	45	CE, EC, S
   225	Taxpayer Correspondence (Signature Only)	40	CE, EC, S
   226	International Correspondence (Signature Only)	40	CE, EC, S
   300	Examination (Fuel Tax Credit)	10	CE, EC, S
   310	Statute Control	10	CE, EC, S
   320	Entity Control	10	CE, EC, S
   331	Frivolous Review	3	CE, EC
   332	Questionable Refund Detection Team (QRDT) Review	3	CE, EC
   333	Prompt Audit	10	CE, EC, S
   334	Joint Committee	10	CE, EC, S
   335	Frivolous Case	10	CE, EC, S
   336	QRDT Case	10	CE, EC, S
   337	Other CID (Criminal Investigation Division)	10	CE, EC, S
   341	Manual Refund	10	CE, EC, S
   342	Credit Verification	10	CE, EC, S
   343	Other Accounting ### Note: Action Code "343" is used to identify "Black Liquor" claims on Form 6478, Biofuel Producer Credit, for tax periods 200901 through 201011.	10	CE, EC, S
   344	Manual Refund - ERS	0	EC
   351	TIN Research	0	EC, S
   352	Name Research	3	CE, EC, S
   353	Address Research	3	CE, EC, S
   354	Filing Requirements Research	3	CE, EC, S
   355	Other MFTRA Research	5	CE, EC, S
   360	Other In-House Research	10	CE, EC, S
   370	Examination	10	CE, EC, S
   410	Assistance Needed	0	EC
   420	Management Suspense - A	5	CE, EC, S
   430	Management Suspense - B	10	CE, EC, S
   440	Management Suspense - C	15	CE, EC, S
   450	Management Suspense - D ### Note: Action Code "450" is used to send the return to ERS Rejects Area and/or LB&I review for processing of an Elective Payment Election (EPE) and Credit Transfers under the Inflation Reduction Act (IRA) of 2022.	20	CE, EC, S
   460	Management Suspense - E ### Note: Action Code "460" is used to send the return to ERS Rejects Area for processing of "Section 965" returns for tax periods 201712 through 202012.	25	CE, EC, S
   470	Complex Error Codes	0	EC
   480	Early Filed Suspense	150	CE, EC, S
   490	System Problem	5	CE, EC, S
   510	Missing Document	0	CE
   511	Missing Document - 1st Suspense	25	EC, S
   512	Missing Document - 2nd Suspense	20	S
   513	Missing Document - 3rd Suspense	20	S
   515	Missing Document - Short Term	5	EC, S
   550	Magnetic Tape Return - Check for Attachments	0	CE
   551	Magnetic Tape - Inconsistent Data	0	CE
   610	Renumber - Non-Remit	0	CE, EC
   611	Renumber - Remit	0	CE, EC
   620	NMF/Non-ADP	0	CE, EC, S
   630	Reinput	0	EC
   640	Void	0	CE, EC, S
   650	International	0	CE, EC, S
   660	Data Control Delete	0	S
   670	Rejected Missing Document	0	S
   700	Duplicate Block DLN	0	GEN
   711	Duplicate Document DLN from C & E	0	GEN
   712	Duplicate Document DLN from Error Correction	0	GEN
   713	Duplicate Document DLN from Unpostables	0	GEN
   714	Duplicate Document DLN from Unworkable Suspense	0	GEN
   715	Duplicate Document DLN from Workable Suspense	0	GEN
   800	NAP Linkage Problem	2	EC, S
   900	Unpostable Record	0	GEN

2. For more information for Action Codes, See IRM 3.12.38.3.4, Error Resolution System (ERS) Action Codes, and the Exhibit 3.12.38-1, Action Codes.

3.12.15.2.13 (01-06-2023)

Correspondence

1. DO NOT correspond with the partnership when there is an indication on the return that no transactions transpired during the tax year.

   Reminder:

   A partnership is not considered to engage in a trade or business and is therefore not required to file for any tax year in which it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

2. Correspondence records with Action Code 21X will be automatically suspended for a predetermined number of days or until the taxpayer replies, whichever is earlier.

   Note:

   Do not correspond for information on any return "SECURED BY EXAMINATION OR COLLECTIONS" or reprocessable/reinput returns identified as "CII" returns.

   See IRM 3.12.15.2.13.1, Correspondence Imaging Inventory (CII) Returns for correction procedures for "CII" returns.

3. As an ERS tax examiner issuing correspondence you may either:

   1. Use the IDRS Correspondence feature CC LETER, or

   2. Initiate correspondence by using a Correspondence Action Sheet. An IDRS operator or typist will use the form in issuing the actual correspondence.

4. No reply to correspondence requires a Computer Condition Code (CCC) "3" in Field 01CCC. See specific IRM procedures and No Reply Procedures in Exhibit 3.12.15-25.

5. Most correspondence is either computer generated notice, computer generated letter or preprinted letter. All correspondence now reflects a response period within 30 days and the consequence for not replying.

6. If special notes or letters are developed, conform to the language and response periods that are used in (4) above. Use the following guidelines:

   1. All correspondence to the partnership requesting information must show that a response is required. Specify the length of time the partnership has to respond (generally 30 days) and include a statement on the action IRS will take if the response is not received timely. Be sure to include the following statement:
      "WHEN YOU REPLY, PLEASE INCLUDE YOUR TELEPHONE NUMBER AND THE MOST CONVENIENT TIME FOR US TO CALL SO WE MAY CONTACT YOU IF WE NEED MORE INFORMATION" .

   2. Provide for a purge date at least 10 days after the date given in the letter.

   3. Whenever possible, form letter must be used to correspond with the partnership. If a C-NOTE or QUICKNOTE is used, be sure that it clearly communicates the message in simple language and has the required information.

   4. When partnerships make errors that cause delays, advise the partnership that they made the error and explain what the error was that caused the delay.

   5. Specific turnaround times for working correspondence as outlined in IRM 3.30.123.5, Taxpayer Correspondence, Central Authorization File (CAF), Statutes, Taxpayer Advocate, RAIVS Photocopies, and Files, must be followed and monitoring reports must be instituted to ensure that these guidelines are met.

3.12.15.2.13.1 (01-01-2024)

♦Correspondence Imaging Inventory (CII) Returns♦

1. Correspondence Imaging Inventory (CII) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.

   Note:

   Correspondence Imaging System (CIS) changed to Correspondence Imaging Inventory (CII)

2. "CII" returns are shown with "CII Image - Do not correspond for Signature" stamped below the signature line or "CII" annotated on the front of the return.

3. Follow the correspondence instructions below for "CII" returns:

   CII Return Correspondence Criteria

   If	And	Then
   The "CII" return has a Form 13596, Reprocessing Returns, attached,	The return is incomplete (e.g., missing signature, schedules, or forms),	1. Do not correspond. 2. Remove the return from the batch and SSPND with Action Code 640 to have the DLN voided. 3. Attach Form 4227, Intra-SC Reject or Routing Slip, (or other proper routing slip) to the return and route to AM to secure missing information. 4. If the return comes back from AM with incomplete information, send the return to AM again to secure all the missing information. Indicate "More information needed to process incomplete CII return," or similar language on Form 4227 (or other proper routing slip).
   The "CII" return has a Form 13596, Reprocessing Returns, attached and the return is incomplete (e.g., missing signature, schedules, or forms),	The return shows correspondence was sent (e.g., CCC "3" is edited on the return),	Do not route the return to AM. Continue processing the return.
   The "CII" return does not have a Form 13596, Reprocessing Returns, attached,	The return is incomplete (e.g., missing signature, schedules, or forms),	Research for prior posting (TC 150 posted) 1. If TC 150 is present and the information is the same, cancel the DLN and treat as classified waste. ### Note: Classified waste is documentation containing taxpayer entity or account information that is not part of the case and is not needed for audit trail purpose. Refer to IRM 21.5.1, General Adjustment for guidance on handling classified waste to prevent inadvertent/unlawful destructions of records. 2. If TC 150 is not present, follow normal correspondence procedures.

3.12.15.2.13.2 (01-01-2023)

♦Use of Fax for Taxpayer Submissions♦

1. Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, fax signatures are acceptable.

2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use.

3. Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.

4. Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

   • IRM 21.1.3.2.3, Required Taxpayer Authentication

   • IRM 21.1.3.2.4, Additional Taxpayer Authentication

5. Before leaving any messages on a taxpayer's answering machine, review:

   • IRM 10.5.1.6.7.2, Answering Machine or Voicemail

   • IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance

3.12.15.2.13.3 (01-01-2022)

♦Customer Account Data Engine (CADE) 2♦

1. The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal of implementing a single, modernized programming solution that gives daily processing of taxpayer accounts.

2. The CADE 2 solution is comprised of several components, to modernize the IRS to a daily processing environment with several Transition States.

3. The Business Master File (BMF) campus cycles are:

   1. Campus Cycle: Thursday - Wednesday

   2. Master File Processing: Friday - Thursday

   3. Notice Review: Saturday - Monday (8+ days)

   4. Unpostables: New available Tuesday; Closing Tuesday

4. BMF transaction posting time frames are:

   1. Transactions will be viewable using Corporate Files Online (CFOL) Command codes on Saturday following the weekly Master Files processing run on Thursday.

   2. Transactions will be viewable as posted transactions using Integrated Data Retrieval System (IDRS) Command codes on Monday, following the weekly Master File processing run on Thursday.

      Note:

      Implementation of CADE 2 accelerated weekly IDRS analysis. Previously, transactions such as this would have been pending on IDRS and not shown in the CFOL command code displays.

5. Transaction posting dates show a format of YYYYCCDD. YYYY is the year. CC is the posting cycle. Individual Master File (IMF) transactions, values for DD are:

   • 01 = Friday

   • 02 = Monday

   • 03 = Tuesday

   • 04 = Wednesday

   • 05 = Thursday

   Note:

   BMF cycle posting dates on BMFOL will continue to show YYYYCC. YYYY is the year. CC is the posting cycle. BMF posting cycles in TXMOD will show a format of YYYYCCDD. The DD value is 08

   .

3.12.15.2.14 (01-01-2023)

Perfection of Attachments

1. Review all attachments to determine proper disposition:

   If	Then
   Unrelated, unanswered partnership correspondence is attached and no action taken,	Detach and route to the appropriate area using Form 4227.
   Unanswered partnership correspondence relating to the Form 1065 is attached,	1. Make a photocopy of the attachment, and 2. Forward to the appropriate area using Form 4227.

2. Any attachment or photocopy of an attachment that is routed elsewhere must have name, address, EIN and Received Date.

3. If Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, is attached, process as follows:

   If	Then
   Form 1065 has a $ amount (interest due) written by the taxpayer in the bottom margin (i.e., from Form 8697) or, Form 8697 has a $ amount present on part I, line 10 or part II, line 11,	1. Input "X" in Field 01CCC 2. Detach/print Form 8697 3. Photocopy/print Form 1065, page 1 4. Route Form 8697 with Form 1065, page 1, to: Accounts Management NMF Unit (CAMC) Mail Stop 6111G
   Form 8697, part I, line 9 or part II, line 10 shows a "Refund" ,	1. Detach/print Form 8697 2. Edit Tax Period and EIN on Form 8697 3. Route to: Accounts Management NMF Unit (CAMC) Mail Stop 6111G
   None of the conditions above are present,	No action is necessary.

3.12.15.2.15 (01-01-2020)

Special Conditions

1. The following instructions are given for these special condition returns:

   • Short Length Records

   • Non-ADP (Automatic Data Processing) Return

   • IRC 6020(b) Returns

   • Publicly Traded Partnerships (PTP) (Ogden Submission Processing Campus)

   • Section 965 Returns

3.12.15.2.15.1 (01-01-2023)

Short Length Records

1. The following types of return are processed as Short Length Records:

   • Common Trusts - See IRM 3.12.15.4.7(4) CCC "5" for definition.

   • Nominee returns - See IRM 3.12.15.2.15.1.1.

   • IRC 761(a) Elections - See IRM 3.12.15.2.15.1.2.

   • Inactive returns (returns with no income or deductions on page 1 and no dollar entries on pages 4 and 5 of Form 1065, Form 1125-A, Line 18a, Form 8825 (Rental Real Estate Income and Expenses of a Partnership or an S Corporation) and Line 9 on Schedule F (Profit or Loss From Farming).

     Note:

     An inactive return with an Audit Code, correspondence received date or nonrecourse loan present is processed as a long record.

2. Only the following fields may be present on short length records:

   Fields	Title
   01NC	Name Control
   01EIN	Employer Identification Number
   01TXP	Tax Period
   01RCD	Received Date
   01CCC	Computer Condition Code
   01NOP	Number of Partners (except Amended Returns)
   Section 05	Address (only if address has changed) on Form 1065

   Note:

   On short length records, do not correspond for missing information or attachments and do not apply missing schedule codes.

3. Code and Edit (C&E) must edit "SR" in the top left margin above the form number for all Short Record returns except amended returns.

3.12.15.2.15.1.1 (01-01-2020)

Nominee Return

1. Partnerships that are formed solely for the purpose of acting as a "Nominee" or "Agent" are not required to file a partnership return. They are required to file Form 1099 showing the actual owner of the income.

2. Although they are not required to do so, some of these partnerships may file Form 1065 solely for the purpose of telling IRS that they are not required to file.

3. These returns will usually have only partnership entity information and a statement that the partnership is a nominee and is not required to file.

4. Process nominee returns as "Final" , Short Record returns.

5. CCC "F" is required.

3.12.15.2.15.1.2 (01-01-2026)

IRC 761(a) Return/Election

1. The term "partnership" includes a syndicate, group, pool, joint venture or other unincorporated organization through or by means of which any business, financial operation or venture is carried on, and which is not a corporation, trust or estate.

2. Under IRC 761(a), certain arrangements treated as partnerships (investing partnerships and operating agreements) may elect to be excluded from the partnership rules. Form 1065 need only be filed for the year of the election and a statement of the election must be attached to the return. If the return shows any tax data relating to an entity level computation of income, it cannot be treated as a Section 761(a) election.

3. Returns can be identified as potential Section 761(a) elections if the return has all of the following:

   • Name, address, and EIN but no tax data entries

   • An attachment listing the names and addresses of all the members of the organization.

   • A statement to elect not to be treated as a partnership.

   • CCC "8" is present.

4. Or, if the partnership has referenced one of the following on the return or attachments:

   • Section 761(a) or Treas. Reg. 1.761-2 annotated.

   • Rev. Proc. 2002-68 (for tax years beginning before 01/01/2004)

   • Rev. Proc. 2003-84 (for tax years beginning after 01/01/2004)

   • Publication 541 (Partnerships) or Publication 550 (Investment Income and expenses)

   • Lottery Club

   • Exclusion filed under Subchapter K

   • The joint purchase, retention, sale or exchange of investment property

   • The joint production, extraction or use of property

   • Certain dealers in securities

5. C & E is instructed to refer the return to Examination. Examination will determine if the election is accepted, rejected, or selected for Examination. After Examination has made their determination, process each return as directed.

   If	Then
   The election is "Accepted" by Examination,	1. Complete the processing of the return as a "Short Record" . 2. Edit CCC "F" and CCC "8" . 3. Edit the number of partners to "2" on the return and enter in Field 01NOP.
   Examination determines that the response is less than satisfactory, but does not request more information to be obtained from the partnership,	1. Consider the election "Rejected" . 2. Process as a Form 1065 long record.
   Examination determines the return is "Selected for Examination" ,	Document Perfection will complete the processing of the return by deleting any money amount in Sections 02, 03, 04 and 05 and editing Audit Code "1" .
   Examination determines correspondence is required,	Issue Letter 1355C.

3.12.15.2.15.2 (01-01-2020)

Non-ADP Return

1. When a Form 1065 is for a Non-ADP period, reject the record from ERS, and process as Non-Master File.

   1. Use RJECT Command Code (CC) and reject the record with Action Code "620" .

   2. If CC RJECT is not in your profile, use CC SSPND and suspend the record with Action Code "620" .

2. For NMF items with payment:

   1. Follow instructions in Error Resolution System (ERS), BMF General Instruction, IRM 3.12.38, Error Resolution System (ERS), BMF General Instructions.

   2. Use Action Code "343" and suspend to Accounting for research.

   3. Reject from ERS.

   4. Transfer to Non-Master File (NMF) or Unidentified, dependent upon instruction from Accounting.

3. For International Returns - with and without remittance - follow instructions in IRM 3.12.38, Error Resolution System (ERS), BMF General Instructions.

3.12.15.2.15.3 (01-01-2021)

IRC 6020(b) Returns

1. When the partnership fails to file a return, IRC 6020(b) of the Internal Revenue Code is the authority for the IRS to prepare a return.

2. CCC "4" is required.

3. The return must be signed by a revenue officer or revenue agent.

   Note:

   Starting July 1, 2013, we will accept the revenue officer's (RO) electronic signature or typed signature as a valid signature on the return.

4. If the return is not signed by a revenue officer or revenue agent, return the document to Collections using Form 4227.

3.12.15.2.15.4 (01-01-2023)

Publicly Traded Partnerships (PTP)

1. All coding and correction of Form 1065 with Doc. Code 67 (Publicly Traded Partnerships) is worked in Ogden Submission Processing Center (OSPC).

2. Publicly traded partnerships (Document (Doc.) Code 67) are corrected using the same correction procedures as Form 1065.

3. See IRM 3.12.15.22.29 for correction procedures for Error Code 737 that, if generated, applies only to these PTP returns.

3.12.15.2.15.5 (01-01-2022)

Section 965 Returns

1. Identify a Section 965 return when any of the following are present and the partnerships Tax Period is 201712 through 202012:

   • "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements, or

   • IRC 965 Transition Tax Statement (or similar 965 statement) attached to the return, or

   • A significant entry is present on Schedule K, lines 11 and/or line 13d, with the notation "Section 965" (or similar language).

   • Code "G" in Box 11 on Schedule K-1, or Code "X" in Box 13 on Schedule K-1.

   Note:

   A significant entry is defined as any amount other than zero.

2. Section 965 returns are held in management suspense with Action Code "460."

3. If a Section 965 return has been identified by ERS and C&E has not edited Action Code "460" and/or CCC "J" , SSPND with Action Code "460" and enter CCC "J" in Field 01CCC.

4. Follow the instructions below to finish processing the return:

   Note:

   Ensure the return has been correctly identified as a Section 965 return.

   965 Processing

   If	Then
   The return is identified as a Section 965 return in error,	1. Remove "J" from Field 01CCC, if present 2. Ensure any correspondence issues are addressed. ### Note: Code and Edit (C&E) has been instructed not to correspond on Section 965 returns. C&E will notate "K-1 missing" or similar in the lower left margin (action trail) of the return, if correspondence is needed for missing Schedules K-1. 3. Continue normal return processing.
   The return is confirmed as a Section 965 return, and correspondence is needed,	1. Verify "J" is present in Field 01CCC 2. Resolve any field errors and/or error codes, 3. Suspend the return and initiate correspondence. ### Note: Code and Edit (C&E) has been instructed not to correspond on Section 965 returns. C&E will notate "K-1 missing" (or similar language) in the lower left margin (action trail) of the return, if correspondence is needed for missing Schedules K-1.
   The return is confirmed as a Section 965 return, and correspondence is not needed	1. Verify "J" is present in Field 01CCC. 2. Resolve any field errors and/or error codes.

3.12.15.2.16 (09-19-2025)

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡

2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡

   Note:

   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"

3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.15.2.16.1 (09-19-2025)

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

1. ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.15.2.17 (01-04-2024)

Elective Payment Election (EPE) and Credit Transfers

1. Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the taxpayer can elect to:

   • Take certain credits as a "Elective " Payment or "Deemed Payment" .

   • Transfer a credit to another taxpayer.

   • Claim the credit as a General Business Credit.

2. For tax periods 202201 - 202212, identify a "Elective Payment" or "Deemed Payment" when the taxpayer writes "IRA22DPE" on an attachment or on Form 1065, Line 29.

3. When a return is identified with a "Elective Payment Election" , and Code and Edit (C&E) has not done so, do the following:

   1. Enter "J" in Field 01RPC.

   2. Place a flag at the top of the return and attach the "IRA22EPE/TRE Reminder" sheet under the entity portion of the return.

      Note:

      P&A will provide the pre-printed reminders for ERS to use.

   3. Suspend with Action Code "450" .

   4. Sign the DLN out of the block using Form 1332, Block and Selection Record.

   5. Give the return to the lead. The lead will place the return in the designated area for LB&I review.

4. When a return is identified with a "Credit Transfer" , and C&E has not done so, do the following:

   1. Enter "K" in Field 01RPC.

   2. Place a flag at the top of the return and attach the "IRA22EPE/TRE Reminder" sheet under the entity portion of the return.

      Note:

      P&A will provide the pre-printed reminders for ERS to use

   3. Suspend with Action Code "450" .

   4. Sign the DLN out of the block using Form 1332, Block and Selection Record.

   5. Give the return to the lead. The lead will place the return in the designated are for LB&I review.

      Note:

      A return can have both an RPC "J" and an RPC "K" .

3.12.15.2.18 (01-01-2022)

♦Criminal Investigation (CI) Referral♦

1. Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

2. If CI has stamped the return, do not send for further CI action.

3. For returns with refund claims of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more, do the following:

   Caution:

   If there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, then see below.

   Refund Claim

   Ogden and Kansas City

   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   1. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious. 2. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy. 3. Route the copy to Ogden, Mail Stop 9001, Criminal Investigation (CI). 4. Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return. 5. Continue processing the return.

4. Because of the repetitive nature of the ERS/Rejects function, ERS/Rejects Tax Examining Technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If ERS finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral.

5. If a suspicious return is found, and there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, then, do the following:

   1. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.

   2. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.

   3. Route the copy as shown in the table below.

      Ogden	Kansas City
      Mail Stop 9001, Criminal Investigation (CI)	Mail Stop S2 9000, Criminal Investigation (CI)

   4. Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.

   5. Continue processing the return.

6. If the return fits other criteria (e.g., Frivolous Argument), take proper action.

3.12.15.2.19 (01-01-2022)

♦Examination (Exam) "Funny Box" Criteria♦

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

3.12.15.2.20 (01-01-2022)

♦Business Master File (BMF) Identification (ID) Theft♦

1. BMF Identification (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" :

   1. SSPND with Action Code 360 to route the return to Planning & Analysis (P&A).

   2. Attach Form 4227, Intra-SC Reject or Routing Slip (or other proper routing slip) with the notation "ID THEFT" .

   3. Give the entire case to the manager/lead.

2. The manager/lead will expedite the case to the P&A staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam) or Fraud review.

3.12.15.2.21 (01-01-2024)

♦Working Trail♦

1. It is important to leave a legible "Working Trail" , (or "Action Trail" ) using blue ink for those who may work the return later.

2. Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner, (or use Form 12648, Error Correction 90 TPNC).

3. If corresponding with a non-suspense letter, "X" and write the corrected money amounts to the left of each original point(s) of error. Write money amounts in dollars only or dollars and cents, as applicable. Arrowing is allowed for money amounts when there are no intervening entries between the arrow and the line to which the money is to be entered.

4. Leave a working trail on the return when changes are made to the following items:

   • Employer Identification Number (EIN)

   • Tax Period

   • Computer Condition Code (CCC)

   • Received Date

   • Correspondence Received Date (CRD)

     Reminder:

     Circle out incorrect Tax Periods, Received Dates, and Employer Identification Numbers (EINs).

5. When working Reject re-inputs, circle out any previous Action Codes shown on the front of the return, if no longer applicable.

6. When working Rejects, write "Voided" with the date above the DLN in red, when voiding a return.

3.12.15.3 (01-01-2023)

Types of Errors

1. This subsection gives a description of the types of errors generated during Form 1065 processing.

2. The Error Resolution System (ERS) will identify errors according to type and priority. This will show in the record heading:

   • Action Code Error (Priority I)

   • Section Error (Priority II) - Includes terminus error and ISRP (Integrated Submission and Remittance Processing) problem code.

   • Validity Error (Priority III)

   • Math/Consistency Error (Error Codes) (Priority IV)

3. There may be records where the tax examiner finds that programming has not supplied a section or a field that is needed to solve an error. In this event, the tax examiner can use Command Code (CC) GTSEC. See IRM 3.12.15.2.11. This must be reported to Headquarters for correction of the display.

3.12.15.3.1 (01-01-2016)

Priority I Errors - Action Code/Unpostable Code Errors

1. Description:

   • All records with an invalid Action Code assigned by Document Perfection will be placed in the Error Inventory and will be displayed as a Priority I Error.

   • All records with a valid Action Code will be assigned to a Suspense Inventory and will be displayed as a Priority I Error.

2. Display - The Action Code for the record with the literal description of the action or unpostable condition will be shown.

3. Correction Procedures - Process Priority I errors as follows:

   If	Then
   Suspense action is required,	Enter CC SSPND with the correct Action Code.
   Suspense action is not required,	Enter "000" in the Clear Field (CL) Field.

   Note:

   Except for priority statute and manual refund cases, do not remove the document from the block.

4. See IRM 3.12.38, BMF General Instructions, procedures for correcting Priority I Action Code errors in Suspense and Unpostable Code Correction.

3.12.15.3.2 (01-06-2023)

Priority II Errors - Section Errors

1. Most edit, missing section, and terminus errors must be eliminated by the ISRP system. However, edit errors and/or terminus errors may be present if normal ISRP validity checks have been bypassed.

2. Edit Error - A section with an error detected by ISRP. Edit errors will be coded as follows:

   • Code 1 - Split screen transmission, key verifier attempted to change Check Digit, key verifier changed 4 or more digits of TIN, or the original entry operator shows that a required section is missing.

   • Code 2 - CATCH-ALL ISRP ERROR: Any error attributed to ISRP that is not described below, such as invalid characters in a field, or a combination of errors listed below.

   • Code 3 - Invalid section ending point.

   • Code 4 - Invalid field length.

   • Code 5 - Questionable section - the ISRP operator input the same section more than once. The computer program will drop all duplicate sections and display on the error screen the first one encountered.

     Note:

     When displayed, this type of error will display all input fields, except for the Remittance in Section 01 of the section in error. Transcribed data will be present. Computer generated data will not be present.

3. Correction Procedures:

   • Check all fields of the section when this condition exists verifying that fields are entered as coded.

     Note:

     Ensure the return is for the taxpayer whose name is in Section 01.

   • If no correction is needed, or once the section is correct, transmit from the bottom of the screen.

   • If the section needs to be deleted, enter CC DLSEC with the section number.

4. Terminus Error - This error is caused by a section with variable length input fields that have an erroneous size field.

   1. Examine all fields of the section.

   2. Make the necessary corrections to the record.

   3. Once the section is correct, or if no corrections are necessary, transmit from the bottom of the screen.

   4. If the return was suspended prior to the beginning of a new year and the return has been reactivated, access the record using Command Code GTREC, check all fields for necessary correction, then drop the cursor to the bottom of the screen and transmit.

5. Correction Procedures:

   • CC CRECT will be displayed. If the section needs to be deleted, use CC DLSEC to delete the section.

   • If no corrections are needed, transmit from the bottom of the screen.

3.12.15.3.3 (01-01-2016)

Priority III - Field Errors

1. Definition - Any field that does not meet the requirement(s) for that field will be shown as a Priority III error. Consistency and or relationships with other fields will not be a factor.

2. Some reasons for this type of error are:

   • Non-numeric character in a numeric field.

   • Non-alphabetical character in an alpha field.

   • Blank space in a numeric field.

   • Blank in the first position of an alpha field if followed by significant data.

3. Display - Every field displayed is in error.

   • All fields with a Priority III error will be displayed in columnar format in the order encountered in the record.

   • An overflow field is identified by all question marks for a money field or a single pound sign in the last position of a Name Line.

4. Correction Procedures:

   1. Correct every error field displayed using the specific instructions within each section for the field in error.

   2. Check the information on the source document to determine if each displayed field has been correctly coded and transcribed.

   3. Enter the correct data for each field displayed.

   4. If no data is to be in a displayed field, blank the field.

   5. Transmit.

3.12.15.3.4 (01-01-2016)

Priority IV Errors - Consistency/Math Errors

1. Definition - Any valid field used in any computation in which the result is inconsistent with (or contrary to) any other valid field will have Error Code 001-999 assigned and will be shown as a Priority IV Error.

2. Display - These errors will be displayed with the Error Code assigned to them for the specific error in ascending numerical order. The screen display will show the Error Code assigned and the fields needed to make the necessary correction.

   1. The blank field "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed.

   2. All errors must be resolved by either eliminating the error or entering a Clear Code.

3. Correction Procedures:

   • Correct all coding and transcription errors.

   • If the data in the field is correct, enter a "C" in the Clear Code field.

3.12.15.4 (01-01-2016)

Section 01 Errors

1. This subsection gives instructions for correcting Section 01 error conditions.

3.12.15.4.1 (01-01-2016)

General Information

1. Section 01 has entity data and codes for returns and is required for every record.

3.12.15.4.1.1 (01-01-2016)

Remittance (RMIT)

1. This entry represents prepayment of a penalty.

2. It must be blank or numeric.

3. If an amount is present, it must be dollars and cents.

4. The Remittance field cannot be changed by ERS.

3.12.15.4.2 (01-01-2026)

Error Record Format

1. Listed below are the fields that are in Section 01 of Form 1065. See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

2. The Field Designator, Field Length (maximum length for variable fields), Title, and Location where the data is obtained on the return is shown below:

   Field Designator	Field Length	Title	Location on Form 1065
   01NC	4	Name Control/Check Digit	First Name line Form 1065, page 1
   01EIN	9	Employer Identification Number	Form 1065, page 1, Box "D"
   01TXP	6	Tax Period	Form 1065, page 1, between form Title and OMB Number
   01RCD	8	Received Date	Form 1065, page 1, Deduction Area
   01CCC	10	Computer Condition Code	Form 1065, page 1, dotted portion of Line 1a
   01TXB	8	Tax Period Beginning	Form 1065, page 1, Left of field 01TXP
   01NAI	6	North American Industry Classification Code System (NAICS)	Form 1065, page 1, Box "C"
   01DOB	6	Date Business Started	Form 1065, page 1, Box "E"
   01NOP	6	Number of Partners	Form 1065, page 1, Line "I"
   01NPV	1	Number of Partners Verified	Form 1065, page 1, Line I
   01IRC	1	Initial Return Code	Form 1065, page 1, to the left of Box "G"
   01TT	1	Technical Termination	Form 1065, page 1, Box "G(6)" ### Note: This is not applicable after 2018.
   01AMC	1	Accounting Method Code	Form 1065, page 1, Box "H"
   01M3	1	Schedule M-3	Form 1065, page 1, Box "J"
   01ADC	15	Audit Code	Form 1065, page 1, left margin next to Line 9
   01SIC	1	Special Income Code	Form 1065, page 1, left margin next to Line 9
   01CRD	8	Correspondence Received Date	N/A, no longer edited by C & E
   01ISI	1	Installment Sales Indicator	Form 1065, page 1, left margin next to Line 9
   01NRL	1	Nonrecourse Loan Code	Form 1065, page 1, left margin next to Line 9
   01MSC	2	Missing Schedule Code	Form 1065, page 1, left margin next to Line 9
   01HSC	1	Historic Structure Code	Form 1065, page 1, left margin next to Line 9
   01PIC	1	Penalty and Interest Code	Form 1065, Page 1, left margin next to Line 9
   01SWC	1	Salary and Wage Code	Form 1065, page 1, right margin next to Line 9
   01EP	1	EPMF (Employee Plans Master File) Code	Form 1065, page 1, right margin next to Line 18
   01PSN	9	PTIN (Preparer Tax Identification Number) ### Note: For Tax Year 2009 and before, field may show Preparer SSN (Social Security Number)	Form 1065, page 1, Preparer PTIN area
   01PEN	9	FIRM's Employer Identification Number	Form 1065, page 1, Preparer EIN area
   01CBI	1	Paid Preparer Checkbox Indicator	Form 1065, bottom page 1 to the right of signature date
   01PTN	10	Paid Preparer Phone Number	Form 1065, bottom page 1 below preparer EIN
   01RP1	20	Return Processing Code (RPC)	Form 1065, right margin next to Line 1c
   01RP2	15	Overflow for RPCs	If more than 20 RPCs are needed, enter more RPCs in Field 01RP2

3.12.15.4.3 (01-01-2023)

Field 01NC - Name Control/Check Digit

1. Description - Field 01NC is found in the entity section of Form 1065.

2. Valid Condition - Field 01NC has four positions and the valid characters are alpha, numeric, hyphen, ampersand and blank.

   • If a check digit is present, the computer makes an additional mathematical test of the EIN.

   • A check digit must have blanks in the first 2 positions and a letter other than "E" , "G" or "M" in the last 2 positions.

3. Invalid Condition - Field 01NC is invalid if any of the following conditions are present:

   • The first position is blank.

   • The second, third or fourth position is not an alpha, numeric, hyphen, ampersand or blank.

   • There are any intervening blanks between significant characters.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Correct using the Check Digit, if present. Delete the entry in Field 01NC and enter the correct Check Digit.

   3. If the correct Check Digit cannot be determined, enter the Name Control.

   4. If the Name Control cannot be determined, research following instructions in Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area.

3.12.15.4.4 (01-01-2023)

Field 01EIN - Employer Identification Number

1. Description - Field 01EIN is found in the entity section of Form 1065, Box "D" .

2. Valid Condition - Field 01EIN must have nine numbers.

3. Invalid Condition - Field 01EIN is invalid if any of the following conditions are present:

   • The EIN is not numeric.

   • The EIN is less than nine characters.

   • The first two digits of the EIN are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

   • The EIN is all zeroes or nines.

4. Correction Procedures:

   1. Correct coding and transcription errors.

      If	Then
      The EIN was transcribed correctly,	Research for another EIN on the return or attachments and enter in Field 01EIN.
      The EIN cannot be determined,	1. Research IDRS for the correct EIN using CC NAMEE/NAMEB. 2. If found, enter the correct EIN. See Figure 3.12.15-1
      No EIN can be found,	1. SSPND record with Action Code "320" . 2. Route to Entity Control using Form 4227. 3. Notate Form 4227"ASSIGN EIN" . See Figure 3.12.15-1

      Caution:

      Always ensure that the Name Control matches the Master File record whenever you change an EIN.

   2. If the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return. Continue processing the return.

      Note:

      Do not send Letter 3875C when: three or less digits of the EIN are transposed, different, or missing; or INOLES shows the account has been "Merged To" or "Merged From" ; or the EIN on the return is the taxpayer’s SSN and research shows there is no valid entity on Master File for that EIN.

3.12.15.4.4.1 (01-01-2026)

Field 01EIN - Suspense Correction

1. Determine if Entity Control has found the correct EIN.

   If	Then
   Entity found the correct EIN,	Enter in Field 01EIN
   Entity assigned an EIN,	1. Enter in Field 01EIN. 2. GTSEC 01 and enter the Entity Assignment Date (from the lower left corner of the return) in Field 01CRD if it is after the Return Due Date.

   Figure 3.12.15-1

   

   Employer Identification Number Field 01EINThis figure illustrates two Sections (2a and 2b) relating to the Employer Identification Number (EIN).• 2a shows the location to find the Employer Identification Number as described in the text. An arrow is pointing to Form 1065, item D.• 2b illustrates that if Form 1065 has no EIN entered, then a Form 4227, Intra-SC Reject or Routing Slip, must be completed and return sent to Entity Control with the action Other (explain) checkbox checked and Assign EIN written in the field under the Reason Other (explain).

   Please click here for the text description of the image.

3.12.15.4.5 (01-01-2026)

Field 01TXP - Tax Period

1. Description - Field 01TXP is found on page 1, between Form Title and OMB Number of Form 1065. Tax Period ending is printed in year (YYYY), month (MM) format e.g., Dec. 31, 2025 is printed 202512.

2. Valid Condition - The Tax Period must be present and have six numbers.

3. Invalid Condition - Field 01TXP is invalid if any of the following conditions are present:

   • The Tax Period is not all numeric.

   • The last two digits (month) are not 01-12.

   • The Tax Year (first four digits) is after the current year.

   • The Tax Year is equal to the current year (i.e., 2025), but the month is after the current processing month.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Determine the correct Tax Period from Form 1065 and attachments.

   If	Then
   The Tax Period cannot be found,	Enter the current year.
   A non-final return and the Tax Period ending is equal to or later than the current year-month by not more than four months,	1. SSPND with Action Code "480" . 2. Attach Form 4227 and notate "EARLY FILED" .
   A non-final return and the Tax Period ending is later than the current year-month by four months or more,	1. SSPND with Action Code "211" . 2. Attach Form 3696 or other approved Correspondence Action Sheet and request confirmation of the Tax Period ending. ### Note: When confirmed, the return will be processed after the end of that Tax Period.
   A "Final" return and the Tax Period ending is the same as or later than the Received Date,	Change the Tax Period to the month preceding the Received Date.

3.12.15.4.6 (01-01-2026)

Field 01RCD - Received Date

1. Description - Field 01RCD is a numeric field that is either the date stamped by Receipt and Control or edited by C & E.

   • The legal due date is the 15th day of the third month after the Tax Period ending.

   • Partnerships whose partners are all Nonresident Aliens must file their return by the 15th day of the sixth month following the close of the year.

   • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

   • When the due date falls on a weekend or legal holiday, the return is timely if postmarked by the first business day following the due date.

2. Consider the return timely if:

   1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the postmark is on or before the legal due date.

   3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3. Valid Condition - Field 01RCD must be present and entered in "YYYYMMDD" format.

4. Invalid Condition - Field 01RCD is invalid if any of the following conditions are present:

   • The Received Date is not present.

   • The Received Date is not in "YYYYMMDD" format.

   • The Received Date is later than the current processing date.

   • The Received Date is not all numbers.

   • The Received Date is not within the valid month, day range detailed below:

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

5. Correction Procedures:

   1. Correct coding and transcription errors.

      If	Then
      The Received Date is invalid and it appears that the incorrect year was used (i.e., 20250115 instead of 20260115), and other information (Julian date, postmark date, and/or signature date) shows that the Received Date should be a current year,	Change the Received Date year to the current year.
      Multiple Received Dates are present,	1. Use the earliest IRS stamped Received Date. 2. Circle out all other dates.
      The return was addressed to the IRS and delivered to a State agency,	Use the postmark date as the Received Date.
      The return was addressed to a State agency,	Use the IRS date stamp as the Received Date. See Figure 3.12.15-2
      The Received Date cannot be determined,	Determine the entry to Field 01RCD using the following priority order: 1. Earliest legible postmark (e.g., U.S. Post Office, foreign postmark, or Private Delivery Service). ### Note: For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope. Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required. ### 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 shows signature date is invalid). 5. DLN Julian date minus 10 days. 6. Current date minus 10 days.

      Figure 3.12.15-2

      

      Received Date Field 01RCDThese are three examples of Deduction section of Form 1065, page 1, which show the Receive Date location and two examples of Received Dates.First graphic shows Field 01RCD to the right of Line 13, Rent.Second graphic has a Received Date stamp next to Line 16a, Depreciation.Received041526Ogden, UTIRS - OSCFinal graphic shows the date 04-15-26 to the right of Line 14, Taxes and licenses.

      Please click here for the text description of the image.

   2. A private delivery service (PDS) is a business that delivers packages. The "Timely Mailing as Timely Filing" rule now applies to some PDS. When the rule applies to a PDS, it is referred to as a "Designated" PDS. See IRM 3.10.72, Receiving, Extracting and Sorting for a list of designated private delivery services.

      Note:

      Private delivery services do not deliver to P.O. Boxes. Partnerships must use the U.S. Postal Service to mail items to an IRS P.O. Box address.

3.12.15.4.7 (01-01-2026)

Field 01CCC - Computer Condition Code

1. Description - Field 01CCC is an alpha or numeric field edited on the dotted portion of Line 1a, Form 1065.

2. Valid Condition - Valid characters are "A" , "B" , "D" , "F" , "G" , "I" , "J" , "L" , "M" , "O" , "Q" , "R" , "S" , "T" , "W" , "X" , "Y" , "1" , "2" , "3" , "4" , "5" , "6" , "7" , "8" and "9" .

3. Correction Procedures - Correct Field 01CCC using the following procedures:

   If	Then
   Field 01CCC was transcribed incorrectly,	Enter the correct Computer Condition Code from the dotted portion of Line 1a on page 1.
   The Computer Condition Code was edited incorrectly,	1. Examine the document to determine the correct CCC. 2. Enter the correct code in Field 01CCC and on the return. See Figure 3.12.15-3
   The Computer Condition Code(s) edited on Form 1065 is illegible or invalid,	1. Examine the document to determine the correct CCC. 2. Enter the correct code in Field 01CCC and on the return.
   No reply to correspondence or the correspondence was undeliverable,	Enter "3" in Field 01CCC and on the return.
   CCC "G" is deleted from Field 01CCC,	1. GTSEC to review all sections. 2. Enter data where necessary.
   CCC "5" is present with a Computer Condition Code other than A, B, F, R, W, 4, 6 and/or 9,	Delete the invalid Computer Condition Code(s).
   CCC "6" is present with a Computer Condition Code other than A, B, F, R, W, 4, 5, 8 and/or 9,	Delete the invalid Computer Condition Code(s). ### Note: CCC "6" is not necessary if Computer Condition Codes F, 4, 5, or 8 are present. These Computer Condition Codes will also suppress the "Failure to File on Correct Media Penalty."
   CCC "8" is present with a Computer Condition Code other than A, B, F, R, W, 4, 6 and/or 9,	Delete the invalid Computer Condition Code(s).

4. Computer Condition Codes (CCCs) are assigned by tax examiners or are computer generated. Presence of one of the following Computer Condition Codes initiates action as explained below. Listed below are the valid Computer Condition Codes for Form 1065.

   CCC	Description
   A	Date Business Started is blank.
   B	Schedule M-3 is attached or Line J is checked "Yes" .
   D	Partnership gave Reasonable Cause for Failure to Pay Penalty ### Note: C & E has been instructed not to edit this Computer Condition Code unless instructed by Compliance on a Secured or Prepared return, or from Form 13133, Expedite Processing Cycle.
   F	* Final return (Line G on Form 1065 is checked) * Nominee return. * Accepted Section 761(a) election. * Deceased * Dissolved * Liquidation * Out-of-Business * IRC 501(c)(3) * IRC 708(b)(1)(B) * Filed in accordance with Rev. Proc. 2003-84
   G	Amended, corrected or superseding return. ### Note: CCC "G" is invalid if any other CCC is present except"S" "T" "W" and/or "3" and must have a Received Date.
   I	Tax Period is 198106 or later andForm 6781, Gains and Losses from Section 1256 Contracts and Straddles, is attached.
   J	Input J in Field 01CCC when any of the following are present: * "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements, or * IRC 965 Transition Tax Statement (or similar statement) attached to the return, or * A significant entry is present on Schedule K, lines 11 and/or 13d, with the notation "Section 965" (or similar language). ### Note: A significant entry is defined as any amount other than zero. * See IRM 3.12.15.2.15.5, Section 965 Returns.
   L	Taxpayer writes "Section 6114 Election" on the return or Form 8833, Treaty-Based Return Position Disclosure Under IRC 6114 or IRC 7701(b), is attached.
   M	Form 8949 (Sales and Other Dispositions of Capital Assets), Opportunity Zone 1. CCC "M" is valid for Tax Periods 201712 and later. A Field Error will display if Tax Period is before 201712 and CCC "M" is present. Verify the Tax Period and make corrections as needed. 2. Enter "M" in Field 01CCC when, * Tax Period is 201712 and later, and * Form 8949, Sales and Other Dispositions of Capital Assets, contains a code "Z" and/or code "Y" in column (f). ### Note: Tax Cuts and Jobs Act of 2017, P.L. 115-97 (H.R. 1), Section 13823, Opportunity Zones. Taxpayers who elect to defer gain on the sale of an asset by investing in an Opportunity Zone Fund will show they are deferring the gain by entering code "Z" and/or code "Y" in column (f).
   O	Manual Refund/Settlement Freeze
   Q - Reserved for future use.	Form 8913, Credit for Filing Telephone Excise Tax Paid - This field is no longer used, but is still in ERS programming. ### Note: This credit was used for tax periods 200612 to 200711.
   R	* There is an indication such as "DO NOT ASSESS FAILURE TO FILE PENALTY" on a secured return annotated with "599" * "IRC 6032" or "Common Trust" is notated by the partnership * Partnership's electronic return was rejected and the postmark on the mailed is within 10 calendar days of rejection notification. * The return is not received by the original return due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡and there is no indication of any income, deductions, credits or partnership states it's inactive. * Form 13133, Expedite Processing Cycle, is attached and Examination shows application of the Condition Code ### Note: If Rev. Proc. 84-35 (10 or fewer partners) is notated on the return or on an attachment to the return, treat as a reason given by the partnership for delay in filing the return, Letter 1382C must be issued. ### Reminder: All returns with an "R" Code must have an IRS Received Date. If not present, enter the IRS Received Date.
   S	Form 8883, Asset Allocation Statement Under Section 338, is attached.
   T	Form 8886, Reportable Transaction Disclosure Statement, is attached. Form 8886 is valid for Tax Periods 201301 and later. ### Note: Form 8886 replaces Form 8271, Investor Reporting of Tax Shelter Registration Number. Form 8271 was valid for Tax Periods 200711 and before.
   W	Record cleared by Statute Control Unit.
   X	* Prevents the refund of prepaid credits or credit offset on publicly traded partnerships. * Prevents the refund if Form 8697 or Form 8866 is attached and a dollar amount (interest due) is written by the Taxpayer in the bottom margin of Form 1065. * Prevents the refund of repayment of the Qualified Therapeutic Credit (QTDP). If Form 4255 is attached, See IRM 3.12.15.1.
   Y	Return was filed for a Short Period due to a change in accounting period.
   1	Form 8824, Like-Kind Exchanges, is attached.
   2	Form 8938, Statement of Specified Foreign Financial Assets, is attached.
   3	Correspondence Received Date - reply is missing, incomplete or notice was undeliverable.
   4	IRC 6020(b)
   5	Common Trusts, IRC 6032 * Box A, Principal Business Activity is notated with COMMON TRUST FUND, COMMON TRUST or Box C has NAICS Code 525920 * IRC 6032 Common Trust Fund or similar notations marked within margins of Form 1065. ### Note: CCC "5" is valid with CCC "A" , "B" , "F" , "R" , "W" , "4" , "6" and/or "9" only.
   6	Suppresses the Failure to File on Correct Media Penalty when a Form 1065 is filed with 100 partners or more and any of the following conditions are present: * Inactive return * IRC 501d religious organization * Nominee Return * Substitute for Return (SFR) * Re-entry/re-input returns that have previously been e-filed. ### Note: CCC "6" is valid with CCC A, B, "F" , "R" , "W," "4" , "5" , "8" and/or "9" only. ### Note: CCC "6" is not necessary on MEF/e-filed returns.
   7	Reasonable Cause for failure to file a delinquent return was considered and denied.
   8	IRC 761(a) ### Note: CCC "8" is valid with CCC "A" , "B" , "F" , "R" , "W" , "4" , "6" and/or "9" only.
   9	Foreign Partnership (OSPC only) ### Note: Address on the return is foreign.

   Figure 3.12.15-3

   

   Computer Condition Codes Field 01 CCCThis Figure represents 2 images, both images are the top half of Form 1065, page 1.The first graphic illustrates where the Computer Condition Code is found, in the dotted portion between Line 1b, Gross receipts or sales, and its field. Additionally, there is an arrow pointing to an X found on Line G(2) in the checkbox for Final return.The second graphic gives an example of a correct Computer Condition Code, F, which is found on dotted portion between Line 1b, Returns and allowances, and its field entry. Additionally, there is an arrow pointing to item G(2) checkbox where the Final return box is marked with an X.

   Please click here for the text description of the image.

3.12.15.4.8 (01-01-2026)

Field 01TXB - Tax Period Beginning

1. Description - Field 01TXB is found to the left/near the title of page 1, Form 1065. The Tax Period Beginning Date is printed in YYYYMMDD format, e.g., September 1, 2025 is printed 20250901.

2. Valid Condition - The Tax Period Beginning Date must be present if the return is a "Final" or a "Short Period" . The Tax Period Beginning date must be eight numbers.

3. Invalid Condition - Field 01TXB is invalid if any of the following conditions are present:

   • The Tax Period beginning date is not all numeric.

   • The last two digits (month) are not 01-12.

   • The Tax Period beginning date is later than Tax Period end date (e.g., if tax period is 202512 and Tax Period beginning date is 1/1/2026 or later).

   • The Tax Period beginning date is earlier than 12 months before Tax Period end date (e.g., if tax period is 202512, and Tax Period beginning date is 11/01/2024 or earlier)

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Determine the correct Tax Period beginning from Form 1065. If it’s an "Initial return" , use the Date Business Started from the face of the Form 1065 entered in box E found to the right of the entity. For "Final" or "Short Period" returns, refer to the IF/THEN table in Error Code 008 for resolution.

3.12.15.4.9 (01-01-2026)

Field 01NAI - North American Industry Code System (NAICS)

1. Description - Field 01NAI is a numeric field found on page 1, Box "C" of Form 1065. The NAICS code identifies the partnership Principal Business Activity.

2. Valid Condition:

   • Six numeric digits within a range of 000001-999999 on all full length records.

   • Blanks on all short length records. See IRM 3.12.15.2.15.1

3. Invalid Condition:

   • Not numeric.

   • Entry not within range of 000001-999999 for full length records.

   • Entry present and Section 02 is not present.

4. Correction Procedures - Determine the correct NAICS Code in the following order:

   1. Form 1065, Box "C" , Business Code Number.

   2. Form 1065, Box "A" , Principal Business Activity.

   3. Form 1065, Box "B" , Principal Product or Service.

   If	Then
   The box "C" is complete,	Enter the NAICS Code if present. (Figure 3.12.15-4)
   The correct code cannot be determined on a full length record,	If you cannot make the determination enter 999999 in Field 01NAI.
   Field 01NAI is present on Short Record returns (Section 02 is not required),	Delete the entry.
   Return is a Prior Year return with a Principal Industry Activity (PIA) Code or a PIA code with leading zeroes,	If the NAICS Code cannot be determined, edit NAICS Code 999999 in Field 01NAI.
   Field 01NAI is present and Section 02 was not entered when required,	Enter Section 02.

   Figure 3.12.15-4

   

   NAICS Code Field 01 NAIThis figure represents the entity section of Form 1065, page 1 with arrow(s) pointing to the NAICS Code locations. The line item (C) has NAICS Code listed below. C. Business Code Number: field has 112210.EIN field has: 00-3125478 Date Business Started field has: 09-01-86.Name of partnership field has: Copperhead FarmsStreet address has: 517 South, Gila PKYCity, State and ZIP field has: Houston, TX 77013

   Please click here for the text description of the image.

3.12.15.4.10 (01-01-2026)

Field 01DOB - Date Business Started

1. Description - Field 01DOB is a numeric field found on page 1, Box "E" of Form 1065.

   • Date Business Started is entered in year (YYYY), month (MM) format e.g., Dec. 31, 2021, is printed 202112.

2. Valid Condition:

   • Valid characters are numeric only.

   • Field 01DOB may be blank.

3. Invalid Condition:

   • The Date Business Started is not all numeric or blank.

   • The last two digits (month) are not 01-12.

4. Correction Procedures:

   If	Then
   Field 01DOB was transcribed or coded incorrectly,	Enter the correct date from page 1, Box "E" . (Figure 3.12.15-5)
   A month is present but a year is not present,	Enter "1950" for the year.
   A year is present but a month is not present,	Enter "01" for the month.
   A year and month are not present in Box "E" or cannot be determined,	DO NOT enter any data in Field 01DOB. Enter Computer Condition Code "A" in Field 01CCC.
   The partnership enters a future date as Date Business Started,	DO NOT enter any data in Field 01DOB. Enter Computer Condition Code "A" in Field 01CCC.

   Figure 3.12.15-5

   

   Date Business was Established DesignationThere are two examples of top halves of Form 1065, page 1. The first example has an arrow pointing to the Date Business Started field designator 01DOB, found in line item E. The second example has an arrow pointing to the Date Business Started field found in line item E, with the value 08-01-2007

   Please click here for the text description of the image.

3.12.15.4.11 (01-01-2026)

Field 01NOP - Number of Partners

1. Description - Field 01NOP is found on page 1, Line I on Form 1065.

   • This entry consists of the number of Schedules K-1 attached to the return.

   • It can be used to determine the number of partners in the partnership.

2. Valid Condition:

   • Must be numeric, 2 through 999,999. See Figure 3.12.15-6.

3. Invalid Condition:

   • Not numeric.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. If Form 1065, Line I is zero or blank, check the return and attachments for any indication of the number of partners and enter in Field 01NOP.

   3. If the number of partners is not found, follow the procedures below:

      If	And	Then
      Amended return ("G" Coded),		GTSEC 01 and enter "G" in Field 01CCC.
      "Final" return,		1. GTSEC 01 and enter "F" in Field 01CCC. 2. Enter "2" in Field 01NOP.
      IRC 736 or Treas. Reg. 1.736-1 (Payment to a retiring partner),		Enter "2" in Field 01NOP.
      Reinput/Re-entry document,		Enter "2" in Field 01NOP.
      Returns filed for 201412 and before Tax Periods		Enter "2" in Field 01NOP.
      IRC 501(d) return (Religious and Apostolic Organizations),		Enter "2" in Field 01NOP.
      IRC 6020(b),		1. GTSEC 01 and enter "4" in Field 01CCC. 2. Enter "6" in Field 01NOP.
      Short Record return, See IRM 3.12.15.2.15.1 for a description of a Short Record,		Enter "2" in Field 01NOP.
      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	Form 8825 is attached, and Line 23 on Form 8825, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,	Enter "2" in Field 01NOP.
      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,	Form 8825 is not attached,	Enter "2" in Field 01NOP.
      Form 1065, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	Form 8825 is attached, and Line 23 on Form 8825, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	1. If Schedules K-1 are attached, enter the number of Schedules K-1 to Field 01NOP and continue processing. 2. If Schedules K-1 are not attached, and there is no indication C&E issued Letter 1355C for the missing Schedules K-1, then: * GTSEC 01 and enter "33" in Field 01MSC. * enter "2" in Field 01NOP.
      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,	Form 8825 is not attached,	1. Review the return and attachments for Schedules K-1 or an indication C&E issued Letter 1355C for missing Schedules K-1. and/or missing Form 8825, if needed, etc. ### Note: C&E is instructed to notate in the lower right hand corner of Form 1065 if they issue Letter 1355C 2. If Schedules K-1 are attached, enter the number of Schedules K-1 to Field 01NOP and continue processing. 3. If there is no indication Letter 1355C was sent, then: * GTSEC 01 and enter "33" in Field 01MSC. * enter "2" in Field 01NOP.
      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,	Form 8825 is attached,	1. Review the return and attachments for Schedules K-1 or, an indication C&E issued Letter 1355C, e.g., for missing Schedules K-1. and any other condition, such as missing schedule, missing signature, etc. ### Note: C&E is instructed to notate in the lower right hand corner of Form 1065 if they issue Letter 1355C 2. If there is no Schedules K-1 and no indication Letter 1355C was sent, then: * GTSEC 01 and enter "33" in Field 01MSC. * enter "2" in Field 01NOP.

   4. If the partnership shows that the number of Schedules K-1 is "1" or the attached Schedule K-1 shows 100 percent interest in the partnership, follow the procedures below:

      If	Then
      Schedule K-1 shows two names in the partners' Name and Address Section,	Correspond requesting Schedules K-1 for each partner using Letter 1355C.
      IRC 501(d) return (Religious and Apostolic Organizations),	Enter 2 in Field 01NOP.
      Partnership entity section shows: * "Limited Partnership" (LP) * "Limited Liability Partnership" (LLP) * "Limited Liability Company" (LLC) * "Limited Liability Land Trust" (LLLT) * "Unincorporated Business Organization" (UBO) or * "2" , "3" or "4" is present in Field 06LPC,	1. GTSEC 01 and enter CCC "F" in Field 01CCC. 2. Enter "2" in Field 01NOP. 3. Advise the taxpayer that we are deleting the partnership filing requirement with a non-suspense Letter 3733C.
      Partnership shows payment to a retired or deceased partner or cites IRC 736 or Treasury Regulations 1.736–1,	Enter "2" in Field 01NOP.
      The partnership shows this is a "Final" Return,	1. GTSEC 01 and enter CCC "F" in Field 01CCC, if necessary. 2. Enter 2 in Field 01NOP.
      The partnership does not show this is a final return or does not notate: * IRC 736 or Treas. Reg. 1.736-1 * "Limited Liability Partnership" (LLP) * "Limited Liability Company" (LLC) * "Limited Liability Land Trust" (LLLT) * "Unincorporated Business Organization" (UBO),	Correspond informing the partnership that the partnership cannot have one partner and ask for an explanation using Letter 1355C.
      The partnership submits a response to our request for Schedules K-1,	1. Change the number of Schedules K-1 to the number given by the partnership. 2. Write the DLN of the parent return in the upper left corner of the first Schedule K-1. 3. Place Schedules K-1 in a gusset folder. 4. Forward the folder with the Schedules K-1 to Batching & Numbering to process the Schedules K-1.

   5. If Field 01NOP displays as a field error and "P" is present in Field 01RP1 or Field 01RP2, then do the following:

      If	Then
      The entry in Field 01NOP differs from Line I, Form 1065, Page 1,	1. Enter the Number of Partners from Line I, Form 1065, Page 1 into Field 01NOP. 2. Add "Q" to Field 01RP1 or Field 01RP2, whichever line has the "P" to make the line read "PQ" . This will release the error.
      The entry in Field 01NOP is the same as Line I, Form 1065, Page 1,	Add "Q" to Field 01RP1 or Field 01RP2, whichever line has the "P" to make the line read "PQ" . This will release the error.

   Figure 3.12.15-6

   

   Number of Partners Field 01 NOPThis graphic has 2 example each of the top halves of Form 1065, page 1. The first example has an arrow pointing to the field designator on line item Number of Schedules K-1: 01NOP. The second example has an arrow pointing to the field designator on line item I Number of Schedules K-1, with the value 22 in the field.

   Please click here for the text description of the image.

3.12.15.4.12 (01-01-2026)

Field 01IRC - Initial Return Code

1. Description - Field 01IRC is edited to the left of Line G, page 1 of Form 1065. See Figure 3.12.15-7.

2. Valid Condition - Blank or "2" .

3. Invalid Condition - Entries other than "2" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors. C & E will edit to the left of Line G. See Figure 3.12.15-7

   2. Field 01IRC must have a "2" if any of the following conditions is present:

   • Page 1, Box E has a Date Business Started that is within 12 months from the Tax Period ending date.

   • The "Initial Return" box on Line G is checked.

   • There is a taxpayer notation of "Initial Filing" , such as, "FIRST RETURN" , "NEW PARTNERSHIP" , etc.

   Figure 3.12.15-7

   

   Initial Return Code Field 01IRCThis graphic has 2 examples, each of the top of Form 1065, page 1.The first graphic shows an arrow pointing to the field designator 01IRC in the left margin next to Line G, with another arrow pointing to an X in G(1) (1) Initial return.The second graphic, is an example of an Initial Return Code for a Short Period, showing 3 arrows, each pointing to different areas on the return:The first arrow is pointing to an entry of 2 in the left margin next to Line G.The second arrow is pointing to the check mark in the box on Line G (1) Initial return.The third arrow is pointing to the Tax Period Beginning found under the title, the entry is 8-01.

   Please click here for the text description of the image.

3.12.15.4.13 (04-30-2018)

Field 01TT - Technical Termination

1. Description - Field 01TT is found on Line G, Box (6) Technical termination - also check (1) or (2), page 1 of Form 1065.

2. Technical terminations have been repealed for partnerships with tax years beginning after 12-31-2017. Field 01TT must be blank for partnerships with a Tax Period Beginning date of 01-01-2018 or later.

3. Valid Condition - Blank or "1" .

4. Invalid Condition - Entries other than "1" or blank.

5. Correction Procedures:

   If	Then
   Box (6) on Line G is checked and boxes (3), (4), or (5) are not checked,	Enter "1" in Field 01TT. ### Exception: Leave Field 01TT blank if the Tax Period Beginning date is 01-01-2018 or later.
   Box (6) on Line G is not checked	Leave Field 01TT blank.

3.12.15.4.14 (01-01-2023)

Field 01AMC - Accounting Method Code

1. Description -Field 01AMC is found on Line H, page 1 of Form 1065.

2. Valid Condition - Entry must be a numeric or blank.

3. Invalid Condition - Field 01AMC will generate as an error if the Accounting Method Code is other than "1" , "2" , "3" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Code Field 01AMC as follows:

      If	Then
      "Cash" box is checked,	Enter "1" in Field 01AMC.
      "Accrual" box is checked,	Enter "2" in Field 01AMC.
      "Other" box is checked,	Enter "3" in Field 01AMC.
      No box is checked,	Leave Field 01AMC blank.

3.12.15.4.15 (01-01-2023)

Field 01M3 - Schedule M-3

1. Description - Field 01M3 is found on Line J, page 1 of Form 1065.

2. Valid Condition - "1" or blank.

3. Invalid Condition - Entries other than "1" or blank.

4. Correction Procedures:

   If	Then
   Box (J) is checked	Enter "1" in Field 01M3.
   Box (J) is not checked	Leave Field 01M3 blank.

3.12.15.4.16 (01-01-2019)

Field 01DRE - Form 8858 Attached

1. Description - Field 01DRE is based on the partnership entry on page 3, Schedule B, Line 13* on Form 1065. *(Prior year revision, Line 15).

2. Valid Condition - Numeric or blank.

3. Invalid Condition:

   • Not numeric

   • Entry other than "0" through "999999 "

4. Correction Procedures:

   If	Then
   Field 01DRE was transcribed incorrectly,	Enter the correct number of Form 8858 attached from page 3, Schedule B, Line 13.
   The entry is greater than "1" ,	1. Verify "2" is present in Field 01ADC. 2. If not present, enter "2" in Field 01ADC.

3.12.15.4.17 (05-30-2024)

Field 01ADC - Audit Code

1. Description - Field 01ADC is a numeric or alpha field edited in the left margin next to Line 9 of Form 1065. Identified by "1 -" followed by the appropriate audit code(s). Audit codes are used to identify specific conditions requested by Examination.

2. Valid Condition:

   • Numeric or alpha C (maximum of fifteen codes).

   • Must be "1" , "2" , "3" , "4" , "5" , "6" , "7" , "8" , "9" C or blank.

   • Field 01ADC may be present on short length records.

3. Invalid Condition:

   • Not numeric, alpha C or blank.

   • More than fifteen Audit Codes used at one time.

   • A digit or character appears after the first blank.

4. Correction Procedures:

   If	Then
   Field 01ADC was transcribed incorrectly,	Enter the correct code from the left margin next to Line 9.
   The Audit Code was coded incorrectly,	Complete one of the following: 1. Delete any invalid digits or characters. 2. Delete any duplicate digits or characters. 3. Delete any blanks between valid digits. 4. Re-edit following the instructions below.

   Audit Code	Enter when any of the following conditions exist
   1	* Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), is attached. * Form 8275 or Form 8275-R, Disclosure Statement, is attached or statement referring specifically to IRC 6662 (Disclosure) or IRC 707 (Disguised Sale). * Form 8886, Reportable Transaction Disclosure Statement, is attached. * Section 761(a) election that is "Selected" by Examination. * Form 1065 has the notation "Disregarded Entity" in the header or entity portion of the return (on page 1, Form 1065).
   2	* Form 1065, Schedule B, Box 1(e), Foreign Partnership is checked. * Form 1065, Schedule B, Line 9 (Foreign Trust), is answered "Yes" . * Form 1065, Schedule B, Line 13 (Field 06DRE) has an entry≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ * Form 1065, Schedule B, Line 14 (Field 06FPI) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or Field 06FPC is answered "Yes" . * Form 1065, Schedule B, Line 15 (Field 06IRI) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. * Form 1065, Schedule K, Line 16p (Total Foreign Taxes) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. * Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, is attached. * Form 5472, Information Return of a 25% Foreign Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, is attached. * Form 5713, International Boycott Report, is attached and both questions in 7(f) are answered "Yes" . * Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, is attached and Part V, Lines 15a - 16f, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (For Tax Year 2011 and before, refer to Part IV, Lines 10a - 11f). * Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), is attached. * Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, is attached. * Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446), is attached. * Form 8832, Entity Classification Election, is attached and either box 6(d), (e) or (f) is checked. * Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached. * Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), is attached. * Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached.
   3	Form 1065, Schedule K, Lines 19a or 19b ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
   4	* Form 1065, Schedule K, Line 9c ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1065, page 4, Schedule K, Line 10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. * Form 1065, Schedule B, Question 2 (Dual Partner Code) is present and the Yes box is checked (for Tax Periods 201811 and before on prior year revisions).
   5	* Form 8594, Asset Acquisition Statement (Under Section 1060), is attached and the amount in Part I, Box 3 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. * Form 8883, Asset Allocation Statement Under Section 338, is attached and the amount in part IV, Box 5a, Stock Price is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
   6	Form 3115, Application for Change in Accounting Method, is attached.
   7	* Form 1065, Schedule B, Question 10a (Field 0610A) is answered Yes. * Form 1065, page 4, Line 16p, Total Foreign Taxes, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. * Form 5713, International Boycott Report, is attached and either one or both questions in 7(f) is not answered "Yes" . * Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, is attached and Part V, Lines 15a - 16f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. (For Tax Year 2011 and before, refer to Part IV, Lines 10a - 11f.)
   8	Schedule M-3, Net Income (Loss) Reconciliation for Certain Partnerships, is attached. ### Caution: All returns with a Schedule M-3 attached must be sent to Ogden for processing.
   9	Schedule M-2, Line 6b (Property Distribution), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
   C	Form 8283, Box 2b is checked, Box 2b1 is checked or Line 3, column (h) has an entry.

3.12.15.4.18 (01-01-2023)

Field 01SIC - Special Income Code

1. Description - Field 01SIC is edited in the left margin next to Line 9 of Form 1065 as "2 - 1" if any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

2. Valid Condition - Valid characters are "1" and blank.

3. Invalid Condition - Field 01SIC will generate as an error if the Special Income Code is other than "1" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the Special Income Code must be "1" .

3.12.15.4.19 (01-01-2020)

Field 01CRD - Correspondence Received Date

1. Description - Field 01CRD is a numeric field found on the partnership reply to correspondence.

2. Valid Condition - Field 01CRD must be numbers and in MMDDYYYY format.

3. Invalid Condition - Field 01CRD is invalid if either of the following conditions are present:

   • Not numeric.

   • Not in YYYYMMDD format.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Determine the CRD from the date the reply was received at the campus. If the reply was not date stamped, use the U.S. Postal Service postmark date on the envelope attached to the reply.

      Note:

      For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope. See Figure 3.12.15-7). Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required.

   3. If more than one CRD is present, use the CRD that made the return complete and processable.

   4. Do not enter the CRD when any of the following conditions are present:

      Do not enter CRD
      * The correspondence was received before the due date of the return * The correspondence was required because of an IRS processing error, for example, a request for a return or schedule that we lost during processing * The correspondence was not necessary * The correspondence was issued in error

   5. If the reply was missing, incomplete or the notice was undeliverable, enter CCC "3" in Field 01CCC.

      Note:

      If there is an indication that Entity Control has assigned an EIN to the return, enter the entity assignment date found in the lower left-hand corner of the return, in Field 01CRD if it is later than the actual Correspondence Received Date.

3.12.15.4.20 (01-01-2023)

Field 01ISI - Installment Sales Indicator

1. Description - Field 01ISI is edited in the left margin next to Line 9 of Form 1065 as "3 -" followed by the appropriate code when Form 6252, Computation of Installment Sales Income, is attached.

2. Valid Condition - Numbers "1" , "2" , "3" or blank.

   Exception:

   If multiple Form 6252 are attached, enter code "1" in Field 01ISI if at least one Form 6252 has a positive (Yes) response. If Form 6252 is not attached, Field 01ISI will be blank.

3. Invalid Condition - Field 01ISI will generate as an error if the Installment Sales Indicator Code is other than "1" , "2" , "3" , or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Examine the return and attachments to determine the correct code.

   3. Delete the incorrect entry and enter the correct code on the screen and in the left margin next to Line 9 as "3 -" followed by the correct code.

   4. If a code cannot be determined, leave Field 01ISI blank.

   ISI Code	Description
   1	Shows a "Yes" to Question "3" of Form 6252, Installment Sale Income.
   2	Shows a "No" to Question "3" of Form 6252.
   3	Shows that Form 6252 is attached but there is a multiple, illegible or no response to Question "3" .

3.12.15.4.21 (01-01-2023)

Field 01NRL - Nonrecourse Loan Code

1. Description - Field 01NRL is edited in the left margin next to Line 9 of Form 1065 as "4 -1" when there is an entry on Schedule L, Line 18, Columns (b) or (d) and/or Schedule K-1, Question K, Nonrecourse.

2. Valid Condition - Valid entries are "1" or blank.

   • Code "1" if there is an amount other than zero on Schedule L, Line 18, Columns (b) or (d) or when there is an attachment that shows a Nonrecourse Loan.

3. Invalid Condition - Field 01NRL will generate as an error if the Nonrecourse Loan Code is other than a "1" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Examine the return and attachments to determine the correct code.

   3. If a code is not present, delete the entry.

3.12.15.4.22 (01-01-2026)

Field 01MSC - Missing Schedule Code

1. Taxpayers will be charged penalties for not providing a complete return. Code and Edit (C&E) will be responsible for initiating correspondence when needed, requesting the missing information, and ERS will be responsible for coding Field 01MSC appropriately if the missing information is not received.

2. Enter Field 01MSC whenever the taxpayer does not respond to our request for missing information. See the chart below for the correct code:

   MSC	Missing Schedule(s)
   33	Schedule K-1
   34	Schedule L (Balance Sheet)
   36	Schedule K-1 and Schedule L
   45	Schedule K
   46	Schedule K and Schedule K-1
   47	Schedule K and Schedule L
   49	Schedule K, Schedule K-1 and Schedule L

3. Invalid Condition - Field 01MSC will generate as an error when any of the following conditions exist:

   • Field 01MSC is invalid if it is not numeric and not one of the Missing Schedule Codes shown above.

   • The same Missing Schedule Code appears more than once.

   • The Missing Schedule Code does not begin in the first position of the field.

   Note:

   There is always a possibility that a Missing Schedule Code is edited by C & E. However, employees working the suspense files of the Error Resolution System (ERS) must enter the appropriate code based on the response received from the taxpayer.

4. Correction Procedures:

   1. Correct all coding and transcription errors.

5. Suspense Procedures:

   If	Then
   Taxpayer responds with missing information,	Enter Correspondence Received Date in Field 01CRD and continue processing.
   Taxpayer does not respond,	Enter appropriate Missing Schedule Code in Field 01MSC as shown in (2) above.
   Taxpayer does not give missing TINs on Schedule K-1,	Enter Missing Schedule Code "33" in Field 01MSC and continue processing.
   Taxpayer gives missing Schedules K-1 and/or missing TINs,	Write the DLN of the return on the first Schedule K-1, in the upper left hand corner, then detach and send for processing. Enter Correspondence Received Date in Field 01CRD. ### Caution: Enter missing TINs on each Schedule K-1 before detaching for processing.

3.12.15.4.23 (06-25-2024)

Field 01HSC - Historic Structure Code

1. Description - Field 01HSC is edited in the left margin next to Line 9 of Form 1065 as "6 - 3" when there is an entry on Form 3468 (Investment Credit) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

2. Valid Condition - Valid Historic Structure Codes are "3" and blank.

3. Invalid Condition - Field 01HSC will generate as an error when the Historic Structure Code is other than "3" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Determine the correct code from the return and attachments.

      If	And	Then
      The tax year is 2023 or later,	There is an amount on Form 3468, Part VII, Line 1h, i, or j,	Enter 3 in Field 01HSC.
      The tax year is 2016 to 2022,	There is an amount on Form 3468, Part III, Line 11e, f, or g,	Enter "3" in Field 01HSC.
      The tax year is 2010 to 2015,	There is an amount on Form 3468, Part III, Line 11e, f, g, h, i, or j,	Enter "3" in Field 01HSC.
      The tax year is 2008 or 2009,	There is an amount on Form 3468, Part III, Line 10e, f, g, h, i, or j,	Enter "3" in Field 01HSC.
      The tax year is 2006 or 2007,	There is an amount present on Form 3468, Line 1e, f, g, or h,	Enter "3" in Field 01HSC.
      The tax year is 1996 to 2005,	There is an amount present on Form 3468, Part I, Line 1b or 1c,	Enter "3" in Field 01HSC.
      The tax year is 2008 and before,	Form 3468 is not attached,	Leave Field 01HSC blank.

3.12.15.4.24 (01-01-2025)

Field 01PIC - Penalty and Interest Code

1. Description - Field 01PIC is edited in the left margin next to Line 9 of Form 1065 as "7 - 1. "

2. Valid Condition - Valid entries are "1" and blank.

3. Invalid Condition - Field 01PIC will generate as an error when the Penalty and Interest Code is other than a "1" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

3.12.15.4.25 (01-01-2023)

Field 01SWC - Salary and Wage Code

1. Description - Field 01SWC is edited in the right margin next to Line 9 of Form 1065.

2. Valid Condition - Valid entries are "1" and blank.

3. Invalid Condition - Field 01SWC will generate as an error when the Salary and Wage Code is other than a "1" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Field 01SWC must have a "1" if any of the following conditions exist:

      Criteria for Field 01SWC

      * An entry is present on page 1, Line 9, Form 1065 * An entry is present on Form 1125-A, Line 3 * An entry is present on Form 8825, Line 13, Columns A-H * An entry is present on Form 4835, Farm Rental Income and Expenses, Line 20 * An entry is present on Schedule F, Line 22 (Rev 2011), or on Schedule F, Line 24 (Rev 2010 and before) * An attachment shows an amount to support any of the above entries

   3. In all other cases, Field 01SWC is blank.

3.12.15.4.26 (01-01-2023)

Field 01EP - EPMF Code

1. Description - Field 01EP is edited to the right of Line 18 of Form 1065.

2. Valid Condition - Valid entries are "1" and blank.

3. Invalid Condition - Field 01EP will generate as an error when the EPMF Code is other than "1" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Field 01EP must have a "1" if any of the following conditions exist:

      Criteria for Field 01EP
      * An entry on Line 18, Form 1065. * An entry on Line 23, Schedule F (Form 1040) Farm Income and Expenses. * An entry on Line 21, Form 4835 (Form 1040) Farm Rental Income and Expenses * An entry on Line 19, Schedule C (Form 1040), Profit or Loss from Business. * An attachment shows an amount to support any of the above entries.

   3. If Field 01EP is blank, delete the entry on the screen.

3.12.15.4.27 (01-01-2023)

Field 01PSN - Preparer Social Security Number

Field 01PEN - Preparer Employer Identification Number

1. Description - Field is transcribed from the right of the Paid Preparer section of Form 1065 (below the Taxpayer Signature section). Data may or may not be present in Fields 01PSN and 01PEN.

2. Valid Condition - Entries are blank, all numeric or a "P" for the first character followed by eight numeric characters, such as the Preparer Tax Identification Number (PTIN).

   Note:

   A Preparer Tax Identification Number (PTIN) is a valid entry in Field 01PSN. The format for a PTIN is a nine-digit numeric beginning with the alpha "P" (i.e., P XXXXXXXX).

3. Invalid Condition - Fields 01PSN and 01PEN are invalid if any of the following conditions are present:

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

   • Field 01PEN is other than nine numbers.

   • Fields have all zeroes.

   • Fields have all nines.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. If Fields 01PSN or 01PEN are invalid, determine as follows:

      If	Then
      Only a valid PTIN is present,	Enter the PTIN in Field 01PSN and on Form 1065.
      Only a valid EIN is found,	Enter the EIN in Field 01PEN and on Form 1065.
      Only a valid SSN is found,	Enter the SSN in Field 01PSN and on Form 1065.
      A valid PTIN is present and an EIN is also present,	Enter the PTIN in Field 01PSN and on Form 1065.
      A valid PTIN is present and an SSN is also present,	Enter the PTIN in Field 01PSN and on Form 1065.
      A valid PTIN is not present but both an EIN and SSN are present,	Enter the SSN in Field 01PSN and on Form 1065.
      A valid TIN (PTIN, EIN or SSN) cannot be found,	Delete Fields 01PSN and 01PEN.

3.12.15.4.28 (01-01-2023)

Field 01CBI - Paid Preparer Checkbox Indicator

1. Description - The paid preparer check box indicator is transcribed from the bottom of page 1, Form 1065, to the right of the signature date. The checkbox is used to show whether the partnership has elected to allow the paid preparer to answer questions about the partnership return as it is processed. Data may or may not be present in Field 01CBI.

2. Valid Condition - Valid entries are "1" and blank.

3. Invalid Condition - Field 01CBI will generate as an error when the Paid Preparer Checkbox Indicator is other than "1" or blank.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Enter a "1" in Field 01CBI on the screen if the "Yes" box is checked.

   3. Delete Field 01CBI if "No" box is checked, both boxes are checked or there is no entry.

   4. If invalid, delete the entry on the screen.

3.12.15.4.29 (01-01-2023)

Field 01PTN - Paid Preparer Telephone Number

1. Description - The paid preparer telephone number is transcribed from the bottom of page 1, Form 1065, below the paid preparer EIN. Data may or may not be present in Field 01PTN.

2. Valid Condition - Field 01PTN must be alpha or numeric or a combination of alpha and numeric characters, not to exceed 10 characters or blank.

3. Invalid Condition - Field 01PTN will generate as an error when the Paid Preparer Telephone Number is other than 10 alpha/numerics.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. If a telephone number is invalid, delete the entry on the screen.

3.12.15.4.30 (05-16-2025)

Field 01RP1 and Field 01RP2 - Return Processing Code (RPC)

1. Description - A Return Processing Code (RPC) is an alpha or numeric character used to identify a specific condition for the computer. The RPC is edited on page 1, in the right margin next to line 1c of Form 1065.

2. Valid Condition - Field 01RP1 must be alpha or numeric or a combination of alpha and numeric characters, not to exceed 20 characters or blank.

3. Invalid Condition:

   • Characters are other than "A" through "Z" or "1" through "9" .

   • More than 20 characters.

     Note:

     If more than 20 RPCs are needed, enter additional RPCs in Field 01RP2.

4. Correction Procedures:

   1. Correct misplaced entries and transcription errors.

   2. When the code(s) entered on the return are illegible or invalid, examine the return and enter the correct code from the table below:

      Note:

      RPCs do not need to be entered in any specific order.

   RPC	Explanation
   A	Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued, is attached.
   B	Form 5471, Schedule H, Current Earnings and Profits, is attached.
   C	Form 5471, Schedule I-1, Information for Global Intangible Low-Taxed Income, is attached.
   D	Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder in Certain Foreign Corporations, is attached.
   E	Form 8865, Schedule G, Statement of Application of the Gain Deferred Method Under Section 721(c), is attached.
   F	Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached.
   G	Form 5471, Schedule G-1, Cost Sharing Arrangement.
   J	Taxpayer writes IRA22DPE on Form 1065, or on an attachment.
   K	Taxpayer writes IRA22TRE on Form 1065, or on an attachment.
   L	Form 7204, Consent to Extend the Time to Assess Tax related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement, is attached.
   M	Form 7205, Energy Efficient Commercial Buildings Deduction, is attached.
   P	Review required for NUM-PARTNERS>999
   Q	Review required for NUM-PARTNERS>999
   2	Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached.
   4	Form 8994, Employer Credit for Paid Family and Medical Leave, is attached.
   6	Form 8996, Qualified Opportunity Fund, is attached.
   7	Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached.
   9	Form 8997, Initial and Annual Statement of Qualified Opportunity Fund "QOF" Investments, is attached.

3.12.15.5 (01-01-2016)

Section 02 Errors

1. This subsection gives instructions for correcting Section 02 error conditions.

3.12.15.5.1 (01-01-2016)

General Information

1. Section 02 has monetary amounts.

2. The entries are of variable lengths.

3. All entries are dollars only.

4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, the Special Income Code must be "1" .

3.12.15.5.2 (01-01-2026)

Error Record Format

1. Data in Section 02 is obtained from Form 1065. See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

   Field Designator	Maximum Length	Title	Positive/Negative	Location on Form 1065
   0201A	15	Gross Receipts or Sales	(±)	Form 1065, page 1, Line 1a
   0201B	15	Returns and Allowances	(±)	Form 1065, page 1, Line 1b
   0202	15	Cost of Goods Sold	(±)	Form 1065, page 1, Line 2
   0204	15	Ordinary Income (Loss) from Other Partnerships and Estates and Trusts	(±)	Form 1065, page 1, Line 4
   0205	15	Net Farm Profit (Loss) from Schedule F	(±)	Form 1065, page 1, Line 5
   0206	15	Net Gain (Loss) from Form 4797	(±)	Form 1065, page 1, Line 6
   0207	15	Other Income	(±)	Form 1065, page 1, Line 7
   0208	15	Total Income	(±)	Form 1065, page 1, Line 8
   02TAS	15	Total Assets	(±)	Form 1065, page 1, Box "F"
   02K02	15	Net Rental Real Estate Income (Loss)	(±)	Form 1065, Schedule K, Line 2
   02K3A	15	Gross Income (Other Rental Activities)	(±)	Form 1065, Schedule K, Line 3a
   02K3C	15	Balance Net Income (Loss) (Other Rental Activities)	(±)	Form 1065, Schedule K, Line 3c
   02K05	15	Interest Income	(±)	Form 1065, Schedule K, Line 5
   02K6A	15	Ordinary Dividend Income	(±)	Form 1065, Schedule K, Line 6a
   02K07	15	Royalty Income	(±)	Form 1065, Schedule K, Line 7
   02K9A	15	Net Long Term Capital Gain (Loss)	(±)	Form 1065, Schedule K, Line 9a
   02K10	15	Net Gain	(±)	Form 1065, Schedule K, Line 10
   02K11	15	Other Income Amount	(±)	Form 1065, Schedule K, Line 11
   02KA1	15	Partnerships to which Section 42(j)(5) applies	(+)	Form 1065, Schedule K, Line 15a
   02KA2	15	Other Low-income housing credit pre 90 amount	(+)	N/A
   02KA3	15	Partner Low-income house credit after 89 amount	(+)	N/A
   02KA4	15	Other than on Line 15a(1)	(+)	Form 1065, Schedule K, Line 15b
   02KB1	15	Qualified Rehab	(+)	Form 1065, Schedule K, Line 15c
   02ITR	1	International Tax Reporting Checkbox	(+)	Form 1065, Schedule K, Line 16a
   02FTP	15	Foreign Gross Passive Income	(±)	Form 1065, Schedule K, Line 16f ### Note: Field applicable to tax years 202012 and prior.
   02FTG	15	Foreign Gross Income - Other	(±)	Form 1065, Schedule K, Line 16h ### Note: Field applicable to tax years 202012 and prior.
   02DIN	15	Interest Expense at Partners Level	(±)	Form 1065, Schedule K, Line 16i ### Note: Field applicable to tax years 202012 and prior.
   02DED	15	Foreign Deductions at Partners Level - Other	(±)	Form 1065, Schedule K, Line 16j ### Note: Field applicable to tax years 202012 and prior.
   02DAP	15	Deductions on Foreign Source Income at Partnership Level - Passive	(±)	Form 1065, Schedule K, Line 16m ### Note: Field applicable to tax years 202012 and prior.
   02DAG	15	Deductions on Foreign Source Income at Partnership Level - Other	(±)	Form 1065, Schedule K, Line 16o ### Note: Field applicable to tax years 202012 and prior.
   02FTC	15	Total Foreign Taxes	(±)	Form 1065, Schedule K, Line 16p ### Note: Field applicable to tax years 202012 and prior.
   02FTR	15	Reduction in Foreign Taxes	(±)	Form 1065, Schedule K, Line 16q ### Note: Field applicable to tax years 202012 and prior.
   02MCV	15	Merchant Card Vendor	(±)	Form 1065, (Rev 2011 only), Line 1a ### Note: Field applicable only to Tax Year 2011

3. Invalid Condition - Any field in Section 02 will be invalid if not all numbers.

   Exception:

   Field 02ITR is a checkbox.

4. Correction procedures - Check for coding and transcription errors or misplaced entries.

3.12.15.5.3 (01-01-2026)

Field 02ITR - International Tax Reporting Checkbox

1. Field 02ITR is transcribed from Form 1065, Schedule K, Line 16a.

2. Field 02ITR is a 1 digit field valid for tax periods 202112 and later.

3. Invalid Condition:

   • The field length is more than 1 character and not "0" or "1"

   • The tax period is before 202112

4. Correction Procedures:

   1. Correct coding errors, transcription errors, and misplaced entries.

   2. If the tax period is before 202112; delete the field.

3.12.15.6 (01-01-2020)

Section 03 Errors

1. This subsection identifies Section 03 field errors.

3.12.15.6.1 (01-01-2023)

General Information

1. Section 03 has monetary amounts.

2. The entries are of variable lengths.

3. All entries are dollars only except 03TAX on Form 1065 which can be dollars and cents.

4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the Special Income Code must be "1" .

3.12.15.6.2 (01-01-2026)

Error Record Format

1. Data in Section 03 is obtained from Form 1065, Form 1125-A (Cost of Goods Sold), Form 8825 (Rental Real Estate Income and Expenses of a Partnership or an S Corporation) and Schedule F (Profit or Loss From Farming). See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

   Field Designator	Field Length	Title	Positive/ Negative	Location on Form 1065
   0309	15	Net Salary and Wages (Other than to partners)	(+)	Form 1065, page 1, Line 9
   0310	15	Guaranteed Payments to Partners	(+)	Form 1065, page 1, Line 10
   0311	15	Repairs Deduction	(±)	Form 1065, page 1, Line 11
   0312	15	Bad Debts Deduction	(±)	Form 1065, page 1, Line 12
   0313	15	Rent Deduction	(+)	Form 1065, page 1, Line 13
   0314	15	Taxes/Licenses	(+)	Form 1065, page 1, Line 14
   0315	15	Net Interest	(+)	Form 1065, page 1, Line 15
   0316C	15	Depreciation Deduction	(±)	Form 1065, page 1, Line 16c
   0317	15	Depletion	(±)	Form 1065, page 1, Line 17
   0318	15	Retirement Programs	(±)	Form 1065, page 1, Line 18
   0319	15	Employee Benefit Plans	(±)	Form 1065, page 1, Line 19
   03EED	15	Energy efficient commercial buildings deduction (attach Form 7205)	(+/-)	Form 1065, page 1, Line 20 ### Note: Valid tax periods are 202301 and later.
   03OTH	15	Other Deductions	(±)	Form 1065, page 1, Line 21
   03TOT	15	Total Deductions	(±)	Form 1065, page 1, Line 22
   03OBI	15	Ordinary Income (Loss) from Business	(±)	Form 1065, page 1, Line 23
   03TAX	15	3.5 percent Tax	(+)	Form 1065, page 1, write-in above Line 23.
   03A01	15	Beginning Inventory Amount	(+)	Form 1125-A, Line 1
   03A02	15	Net Purchases	(±)	Form 1125-A, Line 2
   03A06	15	Total Costs	(±)	Form 1125-A, Line 6
   03A07	15	Ending Inventory Amount	(+)	Form 1125-A, Line 7
   03H02	15	Gross Rents	(+)	Form 8825, Line 20a
   03FL3	15	Gross Farm Income Cash	(±)	Form 1040, Schedule F, Line 9\* (dotted portion) \*(Line 11, dotted portion for prior years)
   03FL1	15	Sale of Livestock	(±)	Schedule F, Line 1c

3. Invalid Condition - Any field in Section 03 will be invalid if not all numbers.

4. Correction procedures - Check for coding and transcription errors or misplaced entries.

3.12.15.7 (01-01-2020)

Section 04 Errors

1. This subsection identifies Section 04 field errors.

3.12.15.7.1 (01-01-2020)

General Information

1. Section 04 has monetary amounts.

2. The entries are of variable lengths.

3. All entries are dollars only.

4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, the Special Income Code must be "1" .

3.12.15.7.2 (01-01-2023)

Error Record Format

1. Data in Section 04 is obtained from Form 1065. See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

   Field Designator	Field Length	Title	Positive/Negative	Location on Form 1065
   0419D	15	Mortgages, notes, bonds payable in 1 year or more	(±)	Form 1065, Schedule L, Line 19b, Column (d)
   04PCA	15	Partners' Capital Account Ending	(±)	Form 1065, Schedule M-2, Line 9

3. Invalid Condition - Any field in Section 04 will be invalid if not all numbers.

4. Correction procedures - Check for coding and transcription errors or misplaced entries.

3.12.15.8 (01-01-2016)

Section 05 Errors

1. This subsection gives instructions for correcting Section 05 error conditions.

3.12.15.8.1 (01-04-2024)

General Information

1. Section 05 has address information of the partnership filing Form 1065.

2. Section 05 will be present if any the following conditions exist:

   • Has an address change.

   • Form 1065, page 1, Line G, Box "4" is checked to show an address change.

3. This section cannot be present on a "G" Coded short length record.

4. Section 05 can be present on other short length records.

3.12.15.8.2 (01-01-2016)

Foreign Address -

General Information

1. Ogden Submission Processing Center (OSPC) will process returns with Foreign/International and U.S. Possessions/Territories addresses.

2. The determination of a Foreign Address is based only on the address of the partnership.

3. A Foreign or international address is any address that is not in one of the 50 states or the District of Columbia.

4. The following U.S. Possessions/Territories are considered foreign.

   • American Samoa

   • Federated States of Micronesia

   • Guam

   • Marshall Islands

   • Northern Mariana Islands

   • Palau

   • Puerto Rico

   • Virgin Islands (U.S.)

5. An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not a Foreign address. The U.S. Postal Service established new address requirements for APO/DPO/ FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP Code. For example, "APO New York, NY 091XX" , would be converted to "APO AE 091XX" . Refer to the APO/DPO/FPO conversion chart below:

   If ZIP Code is	Then
   340	AA
   090-098	AE
   962-966	AP

6. All returns with a foreign or U.S. possession/territory address must be shipped to OSPC.

   1. SSPND with Action Code "650" .

   2. Attach Form 4227 with the notation "FORWARD TO OSPC" .

   3. Prepare Letter 86C to inform the taxpayer that the return has been sent to Ogden.

3.12.15.8.2.1 (01-01-2016)

♦Foreign Addresses (OSPC Only)♦

1. A Foreign Address will have:

   • Street address or P.O. Box

   • City or town name

   • Other principal subdivision (i.e., province, state, county, etc.)

   • Postal Code, if present can be before or after the city, town, province, state, county, etc. name but always before the Foreign country.

   • Foreign country

2. Returns with an address in the U.S. Possessions/Territories are considered foreign returns for processing purposes and are entered in the same way as domestic addresses.

   1. A two-character alpha code must be entered in Field 05ST for the possession/territory name.

      U.S. Position/Territory	Abbreviation
      American Samoa	AS
      Federated States of Micronesia	FM
      Guam	GU
      Marshall Islands	MH
      Northern Mariana Islands	MP
      Palau	PW
      Puerto Rico	PR
      Virgin Islands (U.S.)	VI

   2. A ZIP Code must be present for U.S. Possessions/Territories. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries and Exhibit 3.12.15-19.

3.12.15.8.3 (01-01-2016)

Error Record Format

1. Listed below are the fields that are in Section 05. Data in this section is obtained from Form 1065: See Exhibit 3.12.15-1, Form 1065, U.S. Return of Partnership Income.

   Field Designator	Maximum Length	Title	Location on Form 1065
   05CON	35	"In-Care-Of" Name	Entity section, Form 1065
   05FAD	35	Foreign Address	Entity section, Form 1065
   05ADD	35	Street Address	Entity section, Form 1065
   05CTY	22	City	Entity section, Form 1065
   05ST	2	State	Entity section, Form 1065
   05ZIP	12	ZIP Code	Entity section, Form 1065

3.12.15.8.4 (01-01-2019)

♦Field 05CON - "In Care Of" Name♦

1. Description - Field 05CON is found in the entity section of the return.

2. Valid Condition - Field 05CON has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent (%).

   Note:

   The first character of the "In-Care-Of" name must be alpha or numeric.

3. Invalid Condition - Field 05CON is invalid if any of the following conditions are present:

   • The first position is % (percent) and the second position is not blank, or

   • The first position is blank, or

   • The first character of the "In-Care-Of" name is not alpha or numeric, or

   • There are two consecutive blanks between significant characters.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   If	Then
   A % (percent) is in the first position,	1. Verify there is a blank in the second position. 2. If not blank, enter a blank followed by the "In-Care-Of" name beginning with an alpha or numeric in Field 05CON.
   A blank is in the first position,	1. Delete blank. 2. Enter the "In-Care-Of" name beginning with an alpha or numeric in Field 05CON.
   The first character of the "In-Care-Of" name is not alpha or numeric,	1. Verify "In-Care-Of" name on the return. 2. Enter the "In-Care-Of" name beginning with an alpha or numeric in Field 05CON.
   Two consecutive blanks are present between significant characters,	Delete any unnecessary blanks in Field 05CON.

3.12.15.8.5 (01-01-2022)

♦Field 05FAD - Foreign Address♦

1. Description - Field 05FAD is in the entity section of the return.

   1. This field will have an entry when there is a foreign address present on the return.

   2. Field 05FAD must not be present on "G" coded short length records.

2. Valid Condition - Valid characters are alpha, numeric and special characters.

3. Invalid Conditions - Field 05FAD will generate as an error when any of the following conditions are present:

   • The first position is blank.

   • Any character follows two consecutive blanks.

   • There are more than 35 characters present in the field.

   Note:

   ISRP inputs a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

4. Correction Procedures:

   1. Correct all coding and transcription errors.

      If	Then
      Field 05FAD is present,	1. GTSEC 05. 2. Ensure Field 05CTY has a Foreign Country Code and Field 05ST has a "." (period/space). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. ### Exception: Use the country code based on the province in Field 05CTY if the Foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.15-21, Province/Country Code - Canada Only.
      A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico, or The Netherlands but a province name is present,	Enter the province abbreviation in the proper position in Field 05FAD. See Exhibit 3.12.15-20, Province, State and Territory Abbreviations.
      A foreign address is not present on the return,	1. SSPND with Action Code 610. 2. Renumber return with domestic DLN.

   2. If Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business is attached to the return, compare the name and address information on the Form 8822 or Form 8822-B, to the return.

      Note:

      A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

      If	And	Then
      Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached,	All of the following applies: * Mailing address information is the same, * No location address is on Form 8822 or Form 8822-B, Line 7, * No entry on Form 8822-B, Lines 8 or 9,	Take no action and continue processing.
      Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached,	Any of the following applies: * Mailing address information is different, * Location address is on Form 8822 or Form 8822-B, Line 7, * An entry is listed on Form 8822-B, Lines 8 or 9,	1. Enter address shown on Form 8822 or Form 8822-B in Field 05FAD. 2. Notate "Form 8822/8822-B detached" on tax return. 3. Detach Form 8822 or Form 8822-B and route to Entity Control using Form 4227, Intra-SC Reject or Routing Slip, or follow local procedures. 4. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or Form 8822-B" .

   Note:

   The lead tax examiner must batch all Form 8822 or Form 8822-B daily and hand carry to Entity Control for expedite processing.

3.12.15.8.6 (06-26-2016)

Field 05ADD - Street Address

1. Description - Field 05ADD is found in the entity section of the return.

   • Field 05ADD must not be present on "G" Coded short length records.

2. Valid Condition - Valid characters are alpha, numeric, blank, dash or slash.

3. Invalid Condition - Field 05ADD will generate as an error when any of the following conditions are present:

   • Any character is present other than alpha, numeric, blank, dash or slash.

   • The first position is blank.

   • Any character follows two consecutive blanks.

   • There are more than 35 characters present in the field.

     Note:

     ISRP is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

4. Correction Procedures:

   1. Correct coding and transcription errors.

      If	Then
      The first position is blank,	All positions must be blank.
      Field 05ADD is present,	Fields 05CTY, 05ST and 05ZIP must be present.
      Street address is in error and a valid Major City Code is present,	Correct by entering the entire name of the city in Field 05CTY and the State Code in Field 05ST. See Document 7475.
      A good address is not found,	Delete address and revert to INOLE.

   2. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return.

   Note:

   The lead tax examiner is required to batch all Form 8822 or Form 8822-B daily and hand carry to Entity Control for expedite processing.

3.12.15.8.7 (02-05-2018)

Field 05CTY - City

1. Description - Field 05CTY is found in the entity section of the return.

2. Valid Condition - Valid characters are alpha and blank.

3. Invalid Condition - Field 05CTY will generate as an error when any of the following conditions are present:

   • The first position is blank.

   • Any character is present other than blank or alpha.

   • Any character follows two consecutive blanks.

   • The Major City Code does not match any of the valid codes in the Major City Code Table.

     Note:

     Certain cities within each state are designated "Major Cities" and are assigned a special code of two alpha characters. ISRP will enter the Major City Code as appropriate. This code represents the city and state and is transcribed on the error record with no intervening blanks and no other characters in the City field either before or after the code.

   • Foreign Country Code is not valid if Field 05CTY has "XX" .

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Determine if a Major City Code is used.

      Note:

      For a listing of Major City Codes, See Document 7475.

      If	Then
      A Major City Code is used,	Field 05CTY must be present.
      Field 05CTY has an error,	Check to see if the Major City Code is correct.
      Field 05CTY is not valid and a Major City Code cannot be determined,	Input the entire city name.
      A Major City Code is not used and Field 05CTY is present,	Field 05ST (State) must be present.
      A Foreign Address is shown on the return,	Enter appropriate Foreign Country Code in Field 05CTY See Document 7475 ### Exception: Use the country code based on the province in Field 05CTY if the Foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.15-21, Province/Country Code - Canada Only.
      Field 05CTY (Field 06CTY) has an incorrect Country Code or "XX" ,	Enter appropriate Foreign Country Code in Field 05CTY See Document 7475.

   3. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return.

3.12.15.8.8 (01-01-2016)

Field 05ST - State

1. Description - Field 05ST is found in the entity section of the return.

2. Valid Condition - Valid characters are alpha and blank.

3. Invalid Condition - The field is invalid if it is not in the State Code Table.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. For a list of valid State Codes, See Document 7475 and Exhibit 3.12.15-19, U.S. Possessions/Territories State Abbreviations and ZIP Codes.

   3. If unable to perfect, DLSEC 05.

   4. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return. See IRM 3.12.15.8.6.

3.12.15.8.9 (01-01-2016)

Field 05ZIP - ZIP Code

1. Description - Field 05ZIP is found in the entity section of the return.

2. Valid Condition - Valid characters are numeric and blank.

3. Invalid Condition - Field 05ZIP will generate as an error when any of the following conditions are present:

   • Any character is other than numeric or blank.

   • An entry is other than five or nine positions.

   • The entry is not within the range of 00401 and 99999.

   • The entry does not match the Major City Code or State Code.

4. Correction Procedures:

   1. Correct coding and transcription errors.

      If	Then
      Field 05ZIP is transcribed incorrectly,	Enter the correct entry from the return. Only the first five digits are required to be entered in Field 05ZIP.
      A valid ZIP Code is not available from the return or an attachment,	1. Determine the first 3 digits of a valid ZIP Code for the Major City. See Document 7475 or Exhibit 3.12.15-19 for U.S. Possessions/Territories ZIP Codes. 2. Enter "01" for the fourth and fifth digits in Field 05ZIP.
      The Major City is not listed in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries or the first three digits cannot be determined,	Enter the ZIP Code in Field 05ZIP of the State shown in the address using Document 7475.

   2. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B against the return.

3.12.15.9 (01-01-2024)

Section 06 - Schedule B (Form 1065)

1. This subsection gives Section 06 error conditions.

3.12.15.9.1 (01-01-2024)

General Information

1. Section 06 has alpha numeric characters, checkboxes, money amounts and dates.

2. Section 06 is transcribed in dollars only.

3. There is no math check on these fields.

3.12.15.9.2 (01-01-2026)

Error Record Format

1. Listed below are the fields in Section 06 from Form 1065, Schedule B, Other Information.

2. The field designators, title and location where the data is obtained from is shown in the table below:

   Field Designator	Field Length	Field title	Positive/ Negative	Location
   06LPC	1	Limited Partnership Code	N/A	Form 1065, Schedule B, Line 1
   06DPC	1	Dual Partner Code	N/A	Form 1065, (prior year 201811 and before only), Schedule B, Line 2
   06FDC	1	Foreign/Domestic Corporation Code	N/A	Form 1065, Schedule B, Line 2a
   06INE	1	Individual/Estate Ownership Code	N/A	Form 1065, Schedule B, Line 2b
   06PCS	1	Ownership of Foreign or Domestic Corporation Code	N/A	Form 1065, Schedule B, Line 3a
   06DPT	1	Ownership of Foreign Partnership or Trust Code	N/A	Form 1065, Schedule B, Line 3b
   06PTT	1	Partnership Level Tax Treatment Election Code	N/A	Form 1065 (prior year 201811 and before only), Schedule B, Question 5
   0610A	1	Yes/No Checkbox	N/A	Form 1065, Schedule B, Line 10a (§754 election)
   0610B	1	Did the partnership make a basis adjustment under section 743(b)? Yes/No Checkbox	N/A	Form 1065, Schedule B, Line 10b
   06B2	15	Total aggregate amount of section 743(b)	(+)	Form 1065, Schedule B, Line 10b, $ amount
   0610C	1	Did the partnership make a basis adjustment under section 734(b)? Yes/No Checkbox	N/A	Form 1065, Schedule B, Line 10c
   06C2	15	Total amount of section 734(b) adjustment	(+)	Form 1065, Schedule B, Line 10c, $ amount
   0610D	1	Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b)? Yes/No Checkbox	N/A	Form 1065, Schedule B, Line 10d
   06DRE	6	Number of Form 8858 attached	N/A	Form 1065, Schedule B, Line 13a
   06FPI	6	Number of Form 8805 attached	N/A	Form 1065, Schedule B, Line 14
   06FPC	1	Foreign Partner Code	N/A	Form 1065, Schedule B, Line 14
   06IRI	6	Number of Form 8865 attached	N/A	Form 1065, Schedule B, Line 15
   06NFC	3	Number of Form 5471 attached	N/A	Form 1065, Schedule B, Line 17
   06CRT	1	Qualified Opportunity Fund Code - Yes/No Checkbox	N/A	Form 1065, Schedule B, Question 25 ### Note: For prior year revisions 202012 and before, Schedule B, Question 26.
   06QOF	15	Qualified Opportunity Fund Amount	(+)	Form 1065, Schedule B, Question 25 ### Note: For prior year revisions 202012 and before, Schedule B, Question 26.
   06NFP	5	Number of foreign partners that disposed of an interest or received distributions	N/A	Form 1065, Schedule B, Line 26 ### Note: For prior year revisions 202012 and before, Schedule B, Line 27.
   06TSF	1	Were there any transfers between the partnership and its partners?	N/A	Form 1065, Schedule B, Line 27 ### Note: For prior year revisions 202012 and before, Schedule B, Line 28.
   0629a	1	Is the partnership a specified affiliate of an applicable foreign corporation? Yes/No Checkbox	N/A	Form 1065, Schedule B, Line 29a
   0629b	1	Is the partnership an expatriated entity with respect to a covered surrogate foreign corporation? Yes/No Checkbox	N/A	Form 1065, Schedule B, Line 29b
   06DAC	1	At any time did the partnership receive a digital asset? Yes/No Checkbox	N/A	Form 1065, Schedule B, Line 30
   06ELC	1	Partnership Audit Election Code	N/A	Form 1065, Schedule B, Line 33 ### Note: For prior year revision 2022, Schedule B, Line 30. For prior year revision 2021, Schedule B, Line 29. For prior year Revisions 202012 and before, Schedule B, Question 25.
   06SK1	3	Total Number of Schedules K-1	N/A	Form 1065, Schedule B, Line 33 ### Note: For prior year revision 2022, Schedule B, Line 30. For prior year revision 2021, Schedule B, Line 29, For prior year revisions 202012 and before, Schedule B, Question 25.

3.12.15.9.3 (01-04-2024)

Field 06LPC - Limited Partnership Code

1. Field 06LPC is transcribed from Schedule B, Line 1 of Form 1065.

2. Invalid Condition - Entry other than "1" , "2" , "3" , "4" , "5" , "6" or blank.

3. Correction Procedures:

   1. Correct coding and transcription errors. If Field 06LPC was transcribed incorrectly, enter the correct code from Schedule B, Line 1.

   2. Determine the correct code as follows:

   If	Then
   The "Domestic General Partnership" box is checked	Enter "1" in Field 06LPC.
   The "Domestic Limited Partnership" box is checked	Enter "2" in Field 06LPC.
   The "Domestic Limited Liability Company" box is checked	Enter "3" in Field 06LPC.
   The "Domestic Limited Liability Partnership" box is checked	Enter "4" in Field 06LPC.
   The "Foreign Partnership" box is checked	Enter "5" in Field 06LPC.
   The "Other" box is checked	Enter "6" in Field 06LPC.
   Multiple boxes are checked	Enter code for the first box checked.
   No box is checked	Leave blank.

3.12.15.9.4 (01-01-2024)

Field 06DPC - Dual Partner Code

1. Field 06DPC is based on the partnership response to the question on Schedule B, Line 2 on prior year revisions of Form 1065.

2. Invalid Condition:

   • Tax Period is 201812 or later.

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short length records.

3. Correction Procedures:

   If	Then
   Field 06DPC was transcribed incorrectly,	Enter the correct Dual Partner Code from Schedule B, Line 2.
   The "Yes" box is checked,	Enter "1" in Field 06DPC. Verify "4" is present in Field 01ADC.
   The "No" box is checked,	Enter "2" in Field 06DPC.
   Both boxes are checked,	Enter "3" in Field 06DPC.
   Neither box is checked or Tax Period is 201812 and later,	Leave Field 06DPC blank.

   1. If Schedule B is not attached and the tax year is 199112 through 201811, determine and correct Field 06DPC as follows:

   If	Then
   Schedule K-1 is attached and Question I (i) shows type of entity is "Partnership" (Question K on Tax Years 2004-2006, Question B on Tax Years 1993-2003 or Question C on Tax Years 1991-1992).	Enter "1" in Field 06DPC.
   Schedule K-1 is not attached,	Enter "2" in Field 06DPC.

3.12.15.9.5 (01-01-2024)

Field 06FDC - Foreign/Domestic Corporation Code

1. Field 06FDC is based on the partnership response to the question on Schedule B, Line 2a* of Form 1065. *(Prior year revision, Line 3a).

2. Invalid Condition:

   • Other than "1" , "2" , "3" or blank on full length records.

   • Other than blank on short length records

3. Correction Procedures:

   If	Then
   Field 06FDC was transcribed incorrectly,	Enter the correct Foreign Domestic Corporation Code from Schedule B, Line 2a.
   The "Yes" box is checked,	Enter "1" in Field 06FDC.
   The "No" box is checked,	Enter "2" in Field 06FDC.
   Both boxes are checked,	Enter "3" in Field 06FDC.
   Neither box is checked,	Leave Field 06FDC blank.

3.12.15.9.6 (01-01-2024)

Field 06INE - Individual/Estate Ownership Code

1. Field 06INE is based on the partnership response to the question on Schedule B, Line 2b* of Form 1065. *(Prior year revision, Line 3b).

2. Invalid Condition:

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short length records.

3. Correction Procedures:

   If	Then
   Field 06INE was transcribed incorrectly,	Enter the correct Individual/Estate Ownership Code from Schedule B, Line 2b.
   The "Yes" box is checked,	Enter "1" in Field 06INE.
   The "No" box is checked,	Enter "2" in Field 06INE.
   Both boxes are checked,	Enter "3" in Field 06INE.
   Neither box is checked,	Leave Field 06INE blank.

3.12.15.9.7 (01-01-2024)

Field 06PCS - Ownership of Foreign or Domestic Corporation Code

1. Field 06PCS is based on the partnership response to the question on Schedule B, Line 3a* of Form 1065. *(Prior year revision, Line 4a).

2. Invalid Condition:

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short year length records.

3. Correction Procedures:

   If	Then
   Field 06PCS was transcribed incorrectly,	Enter the correct Ownership of Foreign or Domestic Corporation Code from Schedule B, Line 3a.
   The "Yes" box is checked,	Enter "1" in Field 06PCS.
   The "No" box is checked,	Enter "2" in Field 06PCS.
   Both boxes are checked,	Enter "3" in Field 06PCS.
   Neither box is checked,	Leave Field 06PCS blank.

3.12.15.9.8 (01-01-2024)

Field 06DPT - Ownership of Foreign Partnership or Trust Code

1. Field 06DPT is based on the partnership response to the question on Schedule B, Line 3b* of Form 1065. *(Prior year revision, Line 4b).

2. Invalid Condition:

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short length records.

3. Correction Procedures:

   If	Then
   Field 06DPT was transcribed incorrectly,	Enter the correct Ownership of Foreign Partnership or Trust Code from Schedule B, Line 3b.
   The "Yes" box is checked,	Enter "1" in Field 06DPT.
   The "No" box is checked,	Enter "2" in Field 06DPT.
   Both boxes are checked,	Enter "3" in Field 06DPT.
   Neither box is checked,	Leave Field 06DPT blank.

3.12.15.9.9 (01-01-2024)

Field 06PTT - Partnership Level Tax Treatment Election Code

1. Field 06PTT is based on the partnership response to the question on Schedule B, question 5 on prior year revisions of Form 1065.

2. Invalid Condition:

   • Tax period 201812 or later.

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short length records.

3. Correction Procedures:

   If	Then
   Field 06PTT was transcribed incorrectly,	Enter the correct Partnership Level Tax Treatment Election Code from Schedule B, question 5.
   The "Yes" box is checked,	Enter "1" in Field 06PTT.
   The "No" box is checked,	Enter "2" in Field 06PTT.
   Both boxes are checked,	Enter "3" in Field 06PTT.
   Neither box is checked, or Tax Period is 201812 and later,	Leave Field 06PTT blank.

3.12.15.9.10 (01-01-2024)

Field 0610A - Section 754 Election

1. Field 0610a is based on the partnership response to the question on Schedule B, question 10a, Form 1065.

2. Invalid Condition:

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short length records.

3. Correction Procedures:

   If	Then
   Field 0610A was transcribed incorrectly,	Enter the correct Partnership section 754 election from Schedule B, question 10a.
   The "Yes" box is checked,	1. Enter "1" in Field 0610A. 2. Verify "7" is present in Field 01ADC. 3. If not present, enter "7" in Field 01ADC.
   The "No" box is checked,	Enter "2" in Field 0610A.
   Both boxes are checked,	1. Enter "3" in Field 0610A. 2. Verify "7" is present in Field 01ADC. 3. If not present, enter "7" in Field 01ADC.
   Neither box is checked,	Leave Field 0610A blank.
   Before 199512,	DO NOT code.

3.12.15.9.11 (01-24-2024)

Field 0610B - Optional basis adjustment under section 743(b)

1. Field 0610B is based on the partnership response to the question on Schedule B, question 10b, Form 1065.

2. Invalid Condition:

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short length records.

3. Correction Procedures:

   If	Then
   Field 0610B was transcribed incorrectly,	Enter the correct Optional basis adjustment under section 743(b) from Schedule B, question 10b.
   The "Yes" box is checked,	Enter "1" in Field 0610B.
   The "No" box is checked,	Enter "2" in Field 0610B.
   Both boxes are checked,	Enter "3" in Field 0610B.
   Neither box is checked,	Leave Field 0610B blank.

   Note:

   Field 0610B is valid for tax periods 202301 and subsequent. If an entry is present in Field 0610B and the tax period is before 202301, delete the entry.

3.12.15.9.12 (01-01-2024)

Field 06B2 - Total aggregate net positive amount under section 743(b)

1. Field 06B2 is based on the partnership response to the total aggregate net positive amount on Schedule B, question 10b, Form 1065.

2. Invalid Condition:

   • Field is other than all numeric or blank.

   • Field is negative.

   • Tax Period is before 202301.

3. Correction Procedures:

   1. Correct transcription errors.

      Note:

      Ensure the money amount is from the total aggregate net positive amount.

   2. If the amount is negative, delete the field.

   3. If the Tax Period is before 202301, delete the field.

3.12.15.9.13 (01-24-2024)

Field 0610C - Optional basis adjustment under section 734(b)

1. Field 0610c is based on the partnership response to the question on Schedule B, question 10c, Form 1065.

2. Invalid Condition:

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short length records.

3. Correction Procedures:

   If	Then
   Field 0610C was transcribed incorrectly,	Enter the correct Optional basis adjustment under section 734(b) from Schedule B, question 10c.
   The "Yes" box is checked,	Enter "1" in Field 0610C.
   The "No" box is checked,	Enter "2" in Field 0610C.
   Both boxes are checked,	Enter "3" in Field 0610C.
   Neither box is checked,	Leave Field 0610C blank.

   Note:

   Field 0610C is valid for tax periods 202301 and subsequent. If an entry is present in Field 0610C and the tax period is before 202301, delete the entry.

3.12.15.9.14 (01-01-2024)

Field 06C2 - Total aggregate net positive amount under section 734(b)

1. Field 06C2 is based on the partnership response to the total aggregate net positive amount on Schedule B, question 10c, Form 1065.

2. Invalid Condition:

   • Field is other than all numeric or blank.

   • Field is negative.

   • Tax Period is before 202301.

3. Correction Procedures:

   1. Correct transcription errors.

      Note:

      Ensure the money amount is from the total aggregate net positive amount.

   2. If the amount is negative, delete the field.

   3. If the Tax Period is before 202301, delete the field.

3.12.15.9.15 (01-24-2024)

Field 0610D - Is the partnership required to adjust the basis of partnership property.

1. Field 0610D is based on the partnership response to the question on Schedule B, question 10d, Form 1065.

2. Invalid Conditions:

   • Other than "1" , "2" , or "3" , or blank.

   • Other than blank on short length records.

3. Correction Procedures:

   If	Then
   Field 0610D was transcribed incorrectly,	Enter the correct response if the partnership is required to adjust the basis of partnership property from Schedule B, question 10d.
   The "Yes" box is checked,	Enter "1" in Field 0610D.
   The "No" box is checked,	Enter "2" in Field 0610D.
   Both boxes are checked,	Enter "3" in Field 0610D.
   Neither box is checked,	Leave Field 0610D blank.

   Note:

   Field 0610D is valid for tax periods 202301 and subsequent. If an entry is present in Field 0610D and the tax period is before 202301, delete the entry.

3.12.15.9.16 (01-01-2026)

Field 06DRE - Form 8858 Attached

1. Field 06DRE is based on the partnership entry on Schedule B, Line 13a on Form 1065. *(Prior year revision, Line 15).

2. Invalid Condition:

   • Entry other than "0" through "999999" .

3. Correction Procedures:

   If	Then
   Field 06DRE was transcribed incorrectly,	Enter the correct number of Form 8858 attached from Schedule B, Line 13a.
   The entry is greater than "1" ,	1. Verify "2" is present in Field 01ADC. 2. If not present, enter "2" in Field 01ADC.

3.12.15.9.17 (01-01-2024)

Field 06FPI - Form 8805 Attached

1. Field 06FPI is based on the partnership entry on Schedule B, Line 14* on Form 1065. *(Prior year revision, Line 16).

2. Invalid Condition:

   • Entry other than "0" through "999999" .

3. Correction Procedures:

   If	Then
   Field 06FPI was transcribed incorrectly,	Enter the correct number of Form 8805 attached from Schedule B, Line 14.
   The entry is greater than "1" ,	1. Verify "2" is present in Field 01ADC. 2. If not present, enter "2" in Field 01ADC.

3.12.15.9.18 (01-01-2026)

Field 06FPC - Foreign Partner Code

1. Field 06FPC, Foreign Partner Code, is based on the partnership response to the question on Schedule B, Line 14* on Form 1065, "Does this partnership have any foreign partners?" *(Prior year revision, Question 16).

2. Invalid Condition:

   • Entry other than "1" , "2" , "3" , or blank.

3. Correction Procedures:

   If	Then
   Field 06FPC was transcribed incorrectly,	Enter the correct Foreign Partner Code from Schedule B, Line 14. See Figure 3.12.15-8, Foreign Partner Code Filed (06FPC)
   The "Yes" box is checked,	1. Enter "1" in Field 06FPC. 2. Verify "2" is present in Field 01ADC. 3. If not present, enter "2" in Field 01ADC.
   The "No" box is checked,	Enter "2" in Field 06FPC.
   Both boxes are checked,	Enter "3" in Field 06FPC.
   Neither box is checked,	Leave Field 06FPC blank.

   Figure 3.12.15-8

   

   Foreign Partner Code Field 06FPCThis graphic is a section of Form 1065, Schedule B, illustrating the location of the Foreign Partnership Code. Field 06FPC is to the right of Line 14, Does the partnership have any foreign partners?

   Please click here for the text description of the image.

3.12.15.9.19 (01-01-2024)

Field 06IRI - Form 8865 Attached

1. Field 06IRI is found on Schedule B, Line 15*, on Form 1065. *(Prior year revision, Line 17).

2. Invalid Condition:

   • Entry other than "0" through "999999" .

3. Correction Procedures:

   If	Then
   Field 06IRI was transcribed incorrectly,	Enter the correct number from Schedule B, Line 15.
   Field 06IRI has an entry greater than "1" ,	1. Verify "2" is present in Field 01ADC. 2. If not present, enter "2" in Field 01ADC.

3.12.15.9.20 (01-01-2024)

Field 06NFC - Form 5471 Attached

1. Field 06NFC is found on Schedule B, Line 17*, on Form 1065. *(Prior year revision, Line 19).

2. Invalid Condition:

   • Entry other than "0" to "999"

3. Correction Procedures:

   If	Then
   Field 06NFC was transcribed incorrectly,	Enter the correct number from Schedule B, Line 17.

3.12.15.9.21 (01-01-2024)

Field 06CRT - Form 8996, Qualified Opportunity Fund Code

1. Field 06CRT is found on Schedule B, Line 25 on Form 1065.

   Note:

   For prior years 202012 and before, Line 26.

2. Invalid Condition:

   • An entry other than "0" , "1" , "2" , "3" , or blank.

   • Tax period is before 201812.

3. Correction Procedures:

   If	Then
   Field 06CRT was transcribed incorrectly,	Enter the correct Qualified Opportunity Fund Code from Schedule B, Line 25.
   The "Yes" box is checked,	Enter "1" in Field 06CRT.
   The "No" box is checked,	Enter "2" in Field 06CRT.
   Both boxes are checked,	Enter "3" in Field 06CRT.
   Neither box is checked,	Enter "0" in Field 06CRT.
   Tax Period is before 201812,	Enter "0" in Field 06CRT.

   Note:

   If Form 8996 is attached, verify "6" is present in Field 01RP1.

3.12.15.9.22 (01-01-2024)

Field 06QOF - Form 8996, Qualified Opportunity Fund Amount

1. Field 06QOF is found on Schedule B, Line 25 on Form 1065.

   Note:

   For prior years 202012 and before, Line 26.

2. Invalid Condition:

   • Field is other than all numeric or blank.

   • Field is negative.

   • Tax period is before 201812.

3. Correction Procedures:

   1. Correct transcription errors.

   2. If the amount is negative, delete the field.

   3. If the Tax Period is before 201812, delete the field.

   Note:

   If Form 8996 is attached, verify "6" is present in Field 01RP1.

3.12.15.9.23 (01-01-2024)

Field 06NFP - Number of Foreign Partners that disposed of an interest or received distributions.

1. Field 06NFP is found on Schedule B, Line 26 on Form 1065.

   Note:

   For prior years 202012 and before, Line 27.

2. Invalid Condition:

   • Field is other than all numeric.

   • Field is other than "00000" through "99999" .

   • Tax Period is before 201912

3. Correction Procedures:

   1. Correct transcription errors.

   2. If other than "00000" through "99999" , delete the field.

   3. If the Tax Period is before 201912, delete the field.

3.12.15.9.24 (01-01-2024)

Field 06TSF - Were there any transfers between the Partnership and its partners subject to disclosure requirements.

1. Field 06TSF is a checkbox for transfers between the partnership and its partners subject to disclosure of Regulations section 1.707-8 on Schedule B, Question 27, Form 1065. Code and Edit will edit a "1" , "2" , or "3" to the right of Question 27.

   Note:

   For prior years 202012 and before, Question 28.

2. Invalid Condition:

   • Field is other than numeric.

   • Field is other than "0" , "1" , "2" , or "3" .

   • Tax Period is before 201912

3. Correction Procedures:

   If	Then
   Field 06TSF was transcribed incorrectly,	Enter the correct code from Schedule B, Question 27.
   The "Yes" box is checked,	Enter a "1" in Field 06TSF.
   The "No" box is checked,	Enter a "2" in Field 06TSF.
   Both boxes are checked,	Enter a "3" in Field 06TSF.
   Neither box is checked,	Enter a "0" in Field 06TSF.
   Other than "0" , "1" , "2" , or "3" ,	Delete the field.
   Tax Period is before 201912,	Delete the field.

3.12.15.9.25 (01-01-2024)

Field 0629a - Is the partnership required to file Form 7208 under the applicable foreign corporation rules.

1. Field 0629a is found on Schedule B, Question 29a, Form 1065.

2. Invalid Condition:

   • Field is other than numeric.

   • Field is other than "0" , "1" , "2" , or "3" .

   • Tax Period is before 202301.

3. Correction Procedures:

   If	Then
   Field 0629a was transcribed incorrectly,	Enter the correct code from Schedule B, Question 29a.
   The "Yes" box is checked,	Enter a "1" in Field 0629a.
   The "No" box is checked,	Enter a "2" in Field 0629a.
   Both boxes are checked,	Enter a "3" in Field 0629a.
   Neither box is checked,	Enter a "0" in Field 0629a.
   Other than "0" , "1" , "2" , or "3" ,	Delete the field.
   Tax Period is before 202301,	Delete the field.

3.12.15.9.26 (01-01-2024)

Field 0629b - Is the partnership required to file Form 7208 under the covered surrogate corporation rules.

1. Field 0629b is found on Schedule B, Question 29b, Form 1065.

2. Invalid Condition:

   • Field is other than numeric.

   • Field is other than "0" , "1" , "2" , or "3" .

   • Tax Period is before 202301.

3. Correction Procedures:

   If	Then
   Field 0629b was transcribed incorrectly,	Enter the correct code from Schedule B, Question 29b.
   The "Yes" box is checked,	Enter a "1" in Field 0629b.
   The "No" box is checked,	Enter a "2" in Field 0629b.
   Both boxes are checked,	Enter a "3" in Field 0629b.
   Neither box is checked,	Enter a "0" in Field 0629b.
   Other than "0" , "1" , "2" , or "3" ,	Delete the field.
   Tax Period is before 202301,	Delete the field.

3.12.15.9.27 (01-01-2024)

Field 06DAC - Digital Assets checkbox

1. Field 06DAC is found on Schedule B, Line 30, Form 1065.

2. Invalid Condition:

   • Field is other than numeric.

   • Field is other than "0" , "1" , "2" , or "3" .

   • Tax Period is before 202301.

3. Correction Procedures:

   If	Then
   Field 06DAC was transcribed incorrectly,	Enter the correct code from Schedule B, Line 30.
   The "Yes" box is checked,	Enter a "1" in Field 06DAC.
   The "No" box is checked,	Enter a "2" in Field 06DAC.
   Both boxes are checked,	Enter a "3" in Field 06DAC.
   Neither box is checked,	Enter a "0" in Field 06DAC.
   Other than "0" , "1" , "2" , or "3" ,	Delete the field.
   Tax Period is before 202301,	Delete the field.

3.12.15.9.28 (01-01-2025)

Field 06ELC - Partnership Audit Election Code

1. Field 06ELC is found on Schedule B, Line 33 on Form 1065.

2. Invalid Condition:

   • Blank

   • An entry other than "0" , "1" , "2" , or "3"

   • Tax Period is before 201812.

3. Correction Procedures:

   If	Then
   Field 06ELC was transcribed incorrectly,	Enter the correct code from Schedule B, Line 33.
   The "Yes" box is checked,	Enter a "1" in Field 06ELC.
   The "No" box is checked,	Enter a "2" in Field 06ELC.
   Both boxes are checked,	Enter a "3" in Field 06ELC.
   Neither box is checked,	Enter a "0" in Field 06ELC.
   Tax Period is before 201812,	Enter a "0" in Field 06ELC.

3.12.15.9.29 (01-01-2025)

Field 06SK1 - Total Number of Schedules K-1 (From Schedule B-2, Part III, Line 3)

1. Field 06SK1 is found on Schedule B, Line 33 next the statement "Enter the total from Schedule B-2, Part III, Line 3" , on Form 1065.

2. Invalid Condition:

   • Not numeric.

   • Entry other than one to 999.

   • Tax Period is before 201812

3. Correction Procedures:

   If	Then
   Field 06SK1 was transcribed incorrectly,	Enter the correct number from Schedule B, Line 33. ### Exception: If greater than 999, see below.
   Field 06SK1 is more than 999,	Delete the amount and enter 001.
   Field 06SK1 is blank or not numeric,	Enter 000.
   Tax Period is before 201812,	Delete the amount and enter 000.

3.12.15.10 (01-01-2024)

Section 07 Errors

1. This subsection gives instructions for correcting Section 07 error conditions.

3.12.15.10.1 (01-01-2024)

General Information

1. Section 07 has money amounts from the tax and payment section of Form 1065.

2. Section 07 is transcribed in dollars only.

3.12.15.10.2 (01-01-2026)

Error Record Format

1. Listed below are fields in Section 07 from Form 1065.

2. The field designators, title and location where the data it obtained from is shown in the table below:

   Field Designator	Field Length	Field Title	Positive/ Negative	Location
   0724	15	Interest due under look-back method - completed long-term contracts (attach Form 8697)	(+)	Form 1065, Line 24.
   0725	15	Interest due under look-back method - income forecast method (attach Form 8866)	(+)	Form 1065, Line 25.
   0726	15	BBA AAR imputed underpayment	(+)	Form 1065, Line 26.
   0727	15	Other taxes	(+)	Form 1065, Line 27.
   0728	15	Total balance due. Add lines 24 through 27	(+)	Form 1065, Line 28.
   07EPE	15	Elective payment election amount from Form 3800	(+)	Form 1065, Line 29.
   07EPV	15	Elective Payment election amount verified	(+)	Form 1065, Line 29
   0730	15	Payment	(+)	Form 1065, Line 30.
   07B/R	15	Amount Owed/Overpayment	(+/-)	Form 1065, Lines 31/32a.

3.12.15.10.3 (01-01-2026)

Field 0724 and Field 0725 Form 8697 Interest Computation Under the Look-Back-Method for Completed Long-Term Contracts and Form 8866 Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method

1. Field 0724 is transcribed from Line 24, Form 1065.

2. Field 0725 is transcribed from Line 25, Form 1065.

3. Invalid Conditions: Fields 0724 and 0725 are invalid if:

   • Tax period is before 202301.

   • Fields are other than all numeric or blank.

   • Field lengths are more than 15 characters.

   • Fields are negative.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. If the tax period is before 202301, delete the field.

   If	Then
   A refund is claimed on Form 8697 or Form 8866	1. Disallow the credit, 2. Delete the credit amount from Form 1065 refund, if included 3. Detach and route Form 8697 or Form 8866 to Accounts Management, ### Note: IRM 3.12.15.2.14, Perfection of Attachments.
   Form 8697 or Form 8866 is paid in full or has a balance due,	No action is needed.

3.12.15.10.4 (01-01-2026)

Field 0726 BBA AAR Imputed Underpayment

1. This Field is transcribed from Line 26, Form 1065.

2. Invalid Conditions: Field 0726 is in invalid if:

   • Tax period is before 202301.

   • Field is other then all numeric or blank.

   • Field length is more than 15 characters.

   • Field is negative.

3. Correction Procedures:

   1. Correct coding and transcription errors.

   2. If the tax period is before 202301, delete the field.

3.12.15.10.5 (01-01-2026)

Field 0727 Other Taxes

1. This field is transcribed from Line 27, Form 1065.

2. Invalid Conditions: Field 0727 is invalid if:

   • Tax period is before 202301.

   • Field is other then all numeric or blank.

   • Field length is more than 15 characters.

   • Field is negative.

3. Correction Procedures:

   1. Correct coding and transcription errors.

   2. If the tax period is before 202301, delete the field.

3.12.15.10.6 (01-01-2026)

Field 0728 Total Balance Due

1. This field is transcribed from Line 28, Form 1065.

2. This field is the total of Fields 0724, 0725, 0726, and Field 0727.

3. Invalid Conditions: Field 0728 is invalid if:

   • Tax period is before 202301.

   • Field is other than numeric or blank.

   • Field length is more than 15 characters.

   • Field is negative.

4. Correction Procedures:

   1. Correct coding and transcription errors.

   2. Compare lines 24 - 27 of Form 1065 to the displayed fields, if incorrect, overlay the screen with the correct information.

   3. If the tax period is before 202301, delete the field.

3.12.15.10.7 (01-01-2026)

Field 07EPE Elective Payment Election Amount

1. This field is transcribed from Line 29, Form 1065 and represents the taxpayers amount of Elective payment election (EPE) amount claimed on Form 3800.

2. Invalid Conditions: Field 07EPE is invalid if.

   • Tax period is before 202301.

   • Field is other than numeric or blank.

   • Field length is more than 15 characters.

   • Field is negative.

3. Correction Procedures:

   1. Correct coding and transcription errors.

   2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

   3. If the tax period is before 202301, delete the field.

   4. If there is an amount present in Field 07EPE and a supporting Form 3800 is not attached and the amount claimed for EPE is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, then SSPND with Action Code 211 and correspond using Letter 1355C.

   5. If No Reply to correspondence, then disallow the EPE credit shown and remove the amount claimed in Field 07EPE. See IRM 3.12.15.22.26 Error Code 731, Elective payment election (EPE) Disallowance for more information.

3.12.15.10.8 (01-01-2026)

Field 0730 Payments

1. This field is transcribed from Line 30, Form 1065.

2. Invalid Conditions: Field 0730 is invalid if:

   • Tax period is before 202301.

   • Field is other than numeric or blank.

   • Field length is more than 15 characters.

   • Field is negative.

3. Correction Procedures:

   1. Correct coding and transcription errors.

   2. If the tax period is before 202301, delete the field.

   3. Accept the Taxpayers amount.

3.12.15.10.9 (01-01-2026)

Field 07B/R Amount Owed/Overpayment.

1. This field is transcribed from Lines 31 and 32a, Form 1065.

2. Line 31 is Amount Owed and will always be positive.

3. Line 32a is Overpayment Amount and will always be negative.

4. Invalid Conditions: Field 07B/R is invalid if:

   • Tax period is before 202301.

   • Field (lines 31 and 32a) are other than numeric or blank.

   • Field (line 31 and 32a) are more than 15 characters.

   • Line 31 is negative.

   • Line 32a is positive.

5. Correction procedures:

   1. Correct coding and transcription errors. See IRM 3.12.15.22.31 Error Code 739 - Amount Owed/Overpayment.

   2. If the tax period is before 202301, delete the field.

3.12.15.11 (01-01-2026)

Section 10 - Schedule D (Form 1065), Form 8949 and Form 8996

1. This subsection gives Section 10 error conditions.

3.12.15.11.1 (01-01-2022)

General Information

1. Section 10 has alpha numeric characters, checkboxes, money amounts, dates and percentages.

2. Section 10 is transcribed in dollars only with the exception of Field 10Q15, which is transcribed in dollars and cents.

3. There is no math check on these fields.

3.12.15.11.2 (01-01-2026)

Error Record Format

1. Listed below are the fields in Section 10 from Form 1065, Schedule D, Capital Gains and Losses, Form 8949, Sales and Other Dispositions of Capital Assets, and Form 8996, Qualified Opportunity Fund.

2. The field designators, title and location where the data is obtained from is shown in the table below:

   Field Designator	Field Length	Field Title	Positive/Negative	Location
   10OID	1	Checkbox - Did the Partnership dispose of any Investment(s) in a qualified opportunity fund during this year?	N/A	Schedule D, above Part I
   101AD	15	Line 1a, Short Term Proceeds (Sales price)	(+)	Schedule D, Part I, Line 1a, Column (d)
   101AE	15	Line 1a, Short Term Cost or Other Basis	(+)	Schedule D, Part I, Line 1a, Column (e)
   101BD	15	Line 1b, Short Term Proceeds (Sales price)	(+)	Schedule D, Part I, Line 1b, Column (d)
   101BE	15	Line 1b, Short Term Cost or Other Basis	(+)	Schedule D, Part I, Line 1b, Column (e)
   101BG	15	Line 1b, Short Term Adjustments to Gain or Loss	(±)	Schedule D, Part I, Line 1b, Column (g)
   102D	15	Line 2, Short Term Proceeds (Sales price)	(+)	Schedule D, Part I, Line 2, Column (d)
   102E	15	Line 2, Short Term Cost or Other Basis	(+)	Schedule D, Part I, Line 2, Column (e)
   102G	15	Line 2, Short Term Adjustments to Gain or Loss	(±)	Schedule D, Part I, Line 2, Column (g)
   103D	15	Line 3, Short Term Proceeds (Sales price)	(+)	Schedule D, Part I, Line 3, Column (d)
   103E	15	Line 3, Short Term Cost or Other Basis	(+)	Schedule D, Part I, Line 3, Column (e)
   103G	15	Line 3, Short Term Adjustments to Gain or Loss	(±)	Schedule D, Part I, Line 3, Column (g)
   1005	15	Line 5, Short Term Capital Gain/Loss	(±)	Schedule D, Part I, Line 5
   108AD	15	Line 8a, Long Term Proceeds (Sales price)	(+)	Schedule D, Part II, Line 8a, Column (d)
   108AE	15	Line 8a, Long Term Cost or Other Basis	(+)	Schedule D, Part II, Line 8a, Column (e)
   108BD	15	Line 8b, Long Term Proceeds (Sales price)	(+)	Schedule D, Part II, Line 8b, Column (d)
   108BE	15	Line 8b, Long Term Cost or Other Basis	(+)	Schedule D, Part II, Line 8b, Column (e)
   108BG	15	Line 8b, Long Term Adjustments to Gain or Loss	(±)	Schedule D, Part II, Line 8b, Column (g)
   109D	15	Line 9 Long Term Proceeds (Sales price)	(+)	Schedule D, Part II, Line 9, Column (d)
   109E	15	Line 9, Long Term Cost or Other Basis	(+)	Schedule D, Part II, Line 9, Column (e)
   109G	15	Line 9, Long Term Adjustments to Gain or Loss	(±)	Schedule D, Part II, Line 9, Column (g)
   1010D	15	Line 10 Long Term Proceeds (Sales price)	(+)	Schedule D, Part II, Line 10, Column (d)
   1010E	15	Line 10, Long Term Cost or Other Basis	(+)	Schedule D, Part II, Line 10, Column (e)
   1010G	15	Line 10, Long Term Adjustments to Gain or Loss	(±)	Schedule D, Part II, Line 10, Column (g)
   1013	15	Capital Gain Distributions	(+)	Schedule D, Part II, Line 13
   101AZ	9	EIN from description of property	N/A	Form 8949, Part I, Line 1 Column (a), if Code "Z" in Column (f)
   101BZ	8	Date Acquired (YYYYMMDD)	N/A	Form 8949, Part I, Line, Column (b), if Code "Z" in Column (f)
   101GZ	15	Amount of adjustment	(+)	Form 8949, Part I, Line, Column (g), if Code "Z" in Column (f)
   101Z	1	Form 8949 Indicator	N/A	Form 8949, right margin of Part I, Line 1, Row 1, if Code "Z" in Column (f)
   101AY	9	EIN from description of property	N/A	Form 8949, Part I, Line 1, Column (a), if Code "Y" in Column (f)
   101CY	8	Date sold or disposed of (YYYYMMDD)	N/A	Form 8949, Part I, Line 1, Column (c), if Code "Y" in Column (f)
   101GY	15	Recaptured amount	(+)	Form 8949, Part I, Line 1, Column (g), if Code "Y" in Column (f)
   101Y	1	Form 8949 Indicator	N/A	Form 8949, right margin of Part I, Line 1, Row 1, if Code "Y" in Column (f)
   102AZ	9	EIN from description of property	N/A	Form 8949, Part II, Line 1 Column (a), if Code "Z" in Column (f)
   102BZ	8	Date Acquired (YYYYMMDD)	N/A	Form 8949, Part II, Line 1 Column (b), if Code "Z" in Column (f)
   102GZ	15	Amount of adjustment	(+)	Form 8949, Part II, Line 1 Column (g), if Code "Z" in Column (f)
   102Z	1	Form 8949 Indicator	N/A	Form 8949, Part II, right margin Line 1, Row 1, if Code "Z" in Column (f)
   102AY	9	EIN from description of property	N/A	Form 8949, Part II, Line 1 Column (a), if Code "Y" in Column (f)
   102CY	8	Date sold or disposed of (YYYYMMDD)	N/A	Form 8949, Part II, Line 1, Column (c), if Code "Y" in Column (f)
   102GY	15	Recaptured amount	(+)	Form 8949, Part II, Line 1, Column (g), if Code "Y" in Column (f)
   102Y	1	Form 8949 Indicator	N/A	Form 8949, right margin of Part II, Line 1, Row 1, if Code "Y" in Column (f)
   10Q5	1	Checkbox	N/A	Form 8996, Part I, Line 5
   10Q6	1	Reserved for Future Use	N/A	Form 8996, Part I, Line 6
   10Q7	15	Total qualified opportunity zone property held 6 months	(+)	Form 8996, Part II, Line 7 * Line 6 - 2019 * Line 5 - 2018 and 2017
   10Q8	15	Total assets held 6 months	(+)	Form 8996, Part II, Line 8 * Line 7 - 20189 * Line 6 - 2018 and 2017
   10Q10	15	Total qualified opportunity zone property held last day of year	(+)	Form 8996, Part II, Line 10 * Line 9 - 2019 * Line 8 - 2018 and 2017
   10Q11	15	Total assets held last day of year	(+)	Form 8996, Part II, Line 11 * Line 10 - 2019 * Line 10 - 2018 and 2017
   10Q14	3	Divide Line 12 by 2.0 (Line 13 is expressed as a decimal amount 0.00)	N/A	Form 8996, Part III, Line 14 * Line 13 - 2019 * Line 12 - 2018 and 2017
   10Q15	15	Is Line 13 equal to or more than .90	(±)	Form 8996, Part III, Line 15 * Line 14 - 2019 * Line 13 - 2018 and 2017

3.12.15.11.3 (01-01-2021)

Field 10OID - Qualified Opportunity Fund Investments

1. Field 10OID - Checkbox is transcribed from Form 1065, Schedule D, above Part I.

2. Invalid Condition - Field 10OID is invalid if:

   • Checkbox values are not 0, 1, 2 or 3.

   • Field length is more than 1.

   • Tax Period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

      If	Then
      Form 1065, Schedule D checkbox is marked "Yes" ,	Enter "1" in Field 10OID.
      Form 1065, Schedule D checkbox is marked "No" ,	Enter "2" in Field 10OID.
      Both the "Yes" and "No" checkboxes are marked,	Enter "3" in Field 10OID.
      Neither box is checked,	Delete Field 10OID.

3.12.15.11.4 (01-01-2020)

Field 101AD through Field 10014 - Form 1065, Schedule D

1. Field 101AD through Field 10014 are transcribed from Form 1065, Schedule D, Parts I and II.

2. Invalid Condition - Section 10 Field Errors will display if Field 101AD through Field 10014 are not numeric.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

3.12.15.11.5 (01-01-2021)

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

1. Field 101AZ and Field 102AZ must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer.

2. Invalid Condition - Field 101AZ and Field 102AZ are invalid if:

   • EIN is not numeric.

   • Field length is not 9 characters.

   • Tax Period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

   If	And	Then
   Field 101AZ has an entry,	Form 8949, Part I, Column (f) does not have a "Z" present in the same row,	Delete the EIN.
   Field 101AZ has an entry,	The EIN is incomplete or invalid,	Delete the EIN.
   Field 102AZ has an entry,	Form 8949, Part II, Column (f) does not have a "Z" present in the same row,	Delete the EIN.
   Field 102AZ has an entry,	The EIN is incomplete or invalid,	Delete the EIN.

3.12.15.11.6 (01-01-2021)

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

1. Field 101AY and Field 102AY must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

2. Invalid Condition - Field 101AY and Field 102AY are invalid if:

   • The EIN is not numeric.

   • Field length is not 9 characters.

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

   If	And	Then
   Field 101AY has an entry,	Form 8949, Part I, Column (f) does not have a "Y" present in the same row,	Delete the EIN.
   Field 101AY has an entry,	The EIN is incomplete or invalid,	Delete the EIN.
   Field 102AY has an entry,	Form 8949, Part II, Column (f) does not have a "Y" present in the same row,	Delete the EIN.
   Field 102AY has an entry,	The EIN is incomplete or invalid,	Delete the EIN.

3.12.15.11.7 (01-01-2021)

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

1. Field 101BZ and Field 102BZ must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer.

2. Invalid Condition - Field 101BZ and Field 102BZ are invalid if:

   • Field length is other than 8 characters (YYYYMMDD).

   • Date acquired is other than numeric.

   • Month is zero or greater than 12.

   • Day range does not match the number of days in the month.

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

   If	And	Then
   Field 101BZ has an entry,	Form 8949, Part I, Column (f) does not have a "Z" entered by the taxpayer in that same row,	Delete the date.
   Field 101BZ has an entry,	The date is not complete. For example, only the year is present,	Delete the date.
   Field 102BZ has an entry,	Form 8949, Part II, Column (f) does not have a "Z" entered by the taxpayer in that same row,	Delete the date.
   Field 102BZ has an entry,	The date is not complete. For example, only the year is present,	Delete the date.

3.12.15.11.8 (01-01-2021)

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

1. Field 101CY and Field 102CY must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

2. Invalid Condition - Field 101CY and Field 102CY are invalid if:

   • Field is other than 8 characters (YYYYMMDD).

   • Field is other than numeric.

   • Month is zero or greater than 12.

   • Day range does not match the number of days in the month.

   • Tax period is before 201712.

3. Correction Procedures

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

3.12.15.11.9 (01-01-2021)

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

1. Field 101GZ and Field 102GZ must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer.

2. Invalid Condition - Field 101GZ and Field 102GZ are invalid if:

   • Field length is more than 15 characters.

   • Amount is other than numeric, positive and dollars only.

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If a field is negative, delete the field.

   3. If the tax period is before 201712, delete the field.

3.12.15.11.10 (01-01-2021)

Field 101GY and Field 102GY - Form 8949 - Recaptured Amount

1. Field 101GY and Field 102GY must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

2. Invalid Condition - Field 101GY and Field 102GY are invalid if:

   • Field length is more than 15 characters.

   • Amount is other than numeric, positive and dollars only.

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding errors, transcription errors, and misplaced entries.

   2. If a field is negative, delete the field.

   3. If the tax period is before 201712, delete the field.

3.12.15.11.11 (01-01-2024)

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

1. An indicator will be entered in Field 101Z and Field 102Z when Form 8949, Part I or Part II has more than one row with a "Z" present in Column (f). C&E will edit Z - 1 in the right margin of Part I or Part II, Line 1, Row 1. See Exhibit 3.12.15-6, Form 8949 - Sales and Other Dispositions of Capital Assets.

2. Invalid Condition - Field 101Z and Field 102Z are invalid if:

   • Field length is more than 1 character.

   • Indicator is other than 0 (default) or space or "1" (more than one row with a "Z" in Column (f)).

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

3.12.15.11.12 (01-01-2021)

Field 101Y and Field 102Y - Form 8949 Indicator

1. An indicator will be entered in Fields 101Y and 102Y when Form 8949, Part I, has more than one row with a "Y" in Column (f) or Part II, has more than one row with a "Y" in Column (f). C&E will edit Y-1 in the right margin of Part 1, Line 1, Row 1 or Part II, Line 1, Row 1.

2. Invalid Condition - Field 101Y and Field 102Y are invalid if:

   • Field length is more than one character.

   • Field is other than "blank" (default) or zero or "1" (more than one row with a "Y" in column (f).

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

3.12.15.11.13 (01-01-2026)

Field 10Q5 - Form 8996 Checkbox, Line 5

1. Field 10I5 Checkbox is found on Form 8996, Part I Line 5.

2. Form 8996 is valid for tax periods ending 201712 and later, see the table below for Form 8996 revision line numbers.

   Form 8996 Revisions for Field 10I5

   2021 and later	2020	2019	2018 and 2017
   Line 5	Line 5	Line 5	N/A
   Line 6	N/A	N/A	N/A
   Line 7	Line 7	Line 6	Line 5
   Line 8	Line 8	Line 7	Line 6
   Line 10	Line 10	Line 9	Line 8

    

3. Invalid Condition - Field 10Q5 is invalid if:

   • Checkbox values are not 1, 2 or 3.

   • Field length is more than 1.

   • Tax period is before 201712.

4. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

      If	Then
      Form 8996, Part I, Line 5 checkbox is marked "Yes" ,	Enter "1" in Field 10Q5.
      Form 8996, Part I, Line 5 checkbox is marked "No" ,	Enter "2" in Field 10Q5.
      Both the "Yes" and "No" checkboxes are marked,	Enter "3" in Field 10Q5.
      Neither checkbox is marked,	Delete Field 10Q5.

3.12.15.11.14 (01-01-2022)

Field 10Q6 - Form 8996 - Reserved for Future Use

1. Field 10Q6 - Checkbox is transcribed from Form 8996, Line 6.

2. Invalid Condition - Field 10Q6 is invalid if:

   • The checkbox value is not "0" or "1."

   • The field length is more than 1 character.

   • The tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If the tax period is before 201712, delete the field.

   If	Then
   Form 8996, Line 6, box is "Yes"	Enter "1" in Field 10Q6.
   Box 6 is not checked,	Delete Field 10Q6.

3.12.15.11.15 (01-01-2026)

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

1. Fields 10116, 10117, 10119 and 1010 are transcribed from Form 8996, Part II, Lines, 7, 8, 10 and 11.

2. Invalid Condition - Fields 10Q7, 10Q8, 10Q10 and 10Q11 are invalid if:

   • Field length is more than 15 characters.

   • Fields are other than numeric, positive and dollars only.

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If a field is negative, delete the field.

   3. If the tax period is before 201712, delete the field.

3.12.15.11.16 (01-01-2026)

Field 10Q14 - Form 8996, Line 14

1. Field 10Q14 is a percentage found on Form 8996, Part III, Line 14. It is expressed as a decimal amount (0.00).

   Note:

   The ERS screen will display 000 (the decimal is implied), for example, 50 percent will display as 050.

2. Invalid Condition - Field 10Q14 is invalid if:

   • The field is not numeric.

   • Field length is more than 3 characters.

   • The value exceeds 1.00.

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   If	Then
   Field 10Q14 is more than 3 characters, For example, 0.456,	Enter the first 3 characters, for example enter 0.45.
   Field 10Q14 is greater than 1, For example, 1.456,	Delete the field.
   The tax period is before 201712,	Delete the field.

3.12.15.11.17 (01-01-2026)

Field 10Q15 - Form 8996, Line 15

1. Field 10Q15 is found on Form 8996, Part III, Line 15.

   Form 8996 Revisions for Field 10Q15

   Prior Year Revision	Line
   2020	Part III, Line 15
   2019	Part III, Line 14
   2018 and 2017	Part III, Line 13

2. Invalid Condition - Field 10Q15 is invalid if:

   • Field length is more than 15 characters.

   • Field is not numeric, positive and entered as dollars and cents.

   • Tax period is before 201712.

3. Correction Procedures:

   1. Correct coding and transcription errors and misplaced entries.

   2. If a field is negative, delete the field.

   3. If the tax period is before 201712, delete the field.

3.12.15.12 (01-01-2026)

Section 12 - Form 4797, Sales of Business Property

1. Section 12 has data from Form 4797, Sales of Business Property. See Exhibit 3.12.15-5 for ERS field locations.

3.12.15.12.1 (01-01-2026)

Field 121A

1. Fields 121A must be entered if Form 4797, Line 1a has an entry.

2. Invalid Condition - Fields 121A is invalid if:

   • The Tax Period is before 202501.

   • The field is not 15 numeric characters.

   • The field is negative.

3. Correction Procedures:

   1. Correct coding errors, transcription errors, and misplaced entries.

   2. If the Tax Period is before 202501, delete the field.

   3. If a field is negative, delete the field.

   4. If Line 1a is illegible, delete the field.

3.12.15.12.2 (01-01-2026)

Field 121B and Field 121C

1. Field 121B and 121C must be entered if Form 4797, Lines 1b and 1c have an amount.

2. Invalid Conditions:

   • The field is not numeric, positive, and dollars only.

   • The field is more than 15 characters.

   • The tax period is before 201712.

3. Correction Procedures:

   • Correct coding errors, transcription errors, and misplaced entries.

   • If either field is negative, delete the field.

   • If the tax period is before 201712, delete the field.

   • If Lines 121B or 121C are illegible, delete the field.

3.12.15.12.3 (01-01-2026)

Field 1207

1. Field 1207 must be entered if Form 4797, Line 7 has an entry.

2. Invalid Conditions:

   • The field is more than 15 characters.

   • The tax period is before 202501.

3. Correction Procedures:

   • Correct coding errors, transcription errors, and misplaced entries.

   • If the tax period is before 202501, delete the field.

   • If Line 7 is illegible, delete the field.

3.12.15.12.4 (01-01-2026)

Field 1208 and Field 1209

1. Fields 1208 and 1209 must be entered if Form 4797, Line 8 or Line 9 has an entry.

2. Invalid Conditions:

   • The Tax Period is before 202501.

   • The field is not 15 numeric characters.

   • The field is negative.

3. Correction Procedures:

   1. Correct coding errors, transcription errors, and misplaced entries.

   2. If the Tax Period is before 202501, delete the field.

   3. If a field is negative, delete the field.

   4. If Line 8 or Line 9 is illegible, delete the field.

3.12.15.12.5 (01-01-2026)

Field 1217 and Field 1218B

1. Fields 1217 and 1218B must be entered if Form 4797, Line 17 or Line 18a has an entry.

2. Invalid Condition:

   • The Tax Period is before 202501.

   • The field is not 15 numeric characters.

3. Correction Procedures:

   1. Correct coding errors, transcription errors, and misplaced entries.

   2. If the Tax Period is before 202501, delete the fields.

   3. If Line 17 or Line 18a is illegible, delete the field.

3.12.15.12.6 (01-01-2026)

Field 1218A

1. Field 1218A must be entered if Form 4797, Line 18a has an entry.

2. Invalid Condition:

   • The Tax Period is before 202501.

   • The field is not 15 numeric characters.

   • The field is negative.

3. Correction Procedures:

   1. Correct coding errors, transcription errors, and misplaced entries.

   2. If the Tax Period is before 202501, delete the field.

   3. If Line 18a is illegible, delete the field.

3.12.15.12.7 (01-01-2026)

Error Record Format

1. The field designators, title and location of the field are shown in the table below:

   Field Designator	Field Length	Title	Positive/ Negative	Location on Form 4797
   121A	15	Gross Proceeds from Sales or Exchanges from Forms 1099-B or 1099-S	+	1a
   121B	15	Gain due to Partial Dispositions of MACRS Assets	+	1b
   121C	15	Total Amount of Loss from Partial Dispositions of MACRS Assets	+	1c
   1207	15	Total Gain or Loss Amount	+/-	7
   1208	15	Non-recaptured net Section 1231 Losses from Prior Years Amount	+	8
   1209	15	Total Gain Less Non-recapture Section 1231 Losses Amount	+	9
   1217	15	Total Ordinary Gain or Loss Amount	+/-	17
   1218A	15	Form 4684 Property Held Total Loss Amount	+	18a
   1218B	15	Form 4797 Gain or Loss Minus Form 4684 Property Held Total Loss Amount	+/-	18b

3.12.15.13 (01-01-2016)

Section 21 Errors -

Small Employer Health Insurance Premiums (Form 8941)

1. This subsection identifies Section 21 field errors.

3.12.15.13.1 (01-01-2019)

General Information

1. Section 21 has money amounts.

2. Dollar and cent fields must be dollars only, and positive only.

   Note:

   Field 21LN1, 2102, 2113, and 2114 must be 4 numbers.

3. Valid characters are numeric and blank only.

4. Any entry on Line 2 with a decimal point will be rounded down, e.g., 8.5 would be 8.

5. The credit is not valid for any tax period before 201012.

3.12.15.13.2 (01-01-2017)

Error Record Format

1. Section 21 data is obtained from Form 8941, Credit for Small Employer Health Insurance Premiums.

2. This section is not required.

3. All fields in Section 21 are numeric and are transcribed as dollars only.

4. All fields in Section 21 must be positive.

5. Fields 21CBX and 21BXC cannot be blank, the default is zero for no boxes checked.

6. Field 21LN1 cannot be all zeros.

7. The field designators, title and location on the return where the data is obtained is shown below:

   Field Designator	Field Length	Title	Positive/Negative	Location on Form 8941
   21CBX	1	SHOP checkbox indicator	(+)	Box A
   21LNB	9	EIN Employment report	(+)	Box B
   21BXC	1	Previous Forms 8941 Filed	(+)	Box C
   21LN1	4	Number of Full Time Employees	(+)	Line 1
   2102	4	Number of Full time Employees	(+)	Line 2
   2103	15	Average Annual Wages	(+)	Line 3
   2104	15	Health Insurance Premiums Paid	(+)	Line 4
   2105	15	Premiums You Would Have Paid	(+)	Line 5
   2110	15	Premium Subsidies Paid	(+)	Line 10
   2113	4	Number of Employees With Premiums Paid Under Qualified Arrangement	(+)	Line 13
   2114	4	Number of Full Time Employees With Premiums Paid Under Qualified Arrangement	(+)	Line 14
   2115	15	Credit for Small Employer Health Insurance Premiums from Partnerships, S Corporations, Estates, and Trusts	(+)	Line 15
   2116	15	Sum of Lines 12 and 15	(+)	Line 16

8. Invalid Conditions - Any field in Section 21 will be invalid if not all numeric or a dollar amount.

9. Correction Procedures - Correct all misplaced entries, coding errors, and transcription errors.

3.12.15.14 (01-01-2016)

Section 22 Errors - New Hire Retention Credit (Form 5884-B)

1. Form 5884-B, New Hire Retention Credit, is used to figure the new hire retention credit for retained workers. This credit was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act on March 18, 2010. While the credit expired December 31, 2011, it is possible for Form 5884-B to be attached to Form 1065 (with Lines 12 and 13 completed) if the partnership claimed the credit on their year 2011 K-1 for a fiscal filed year.

3.12.15.14.1 (01-01-2016)

General Instructions

1. Section 22 has numbers and money amounts.

2. All fields must be dollars only, and positive only.

3.12.15.14.2 (01-01-2026)

Error Record Format

1. Section 22 has been reserved for future use.

3.12.15.15 (01-01-2025)

Section 23, 24 and 25 - Form 3800 - General Business Credit

1. Sections 23, 24, and 25 are transcribed from Form 3800, General Business Credit, part III, which may be attached to Form 1065 to support the Elective Payment Election (EPE) on line 29. This credit is valid for Tax Periods 202301 and later.

2. All fields, except registration numbers and the indicator, are numeric and transcribed in dollars only. Registration numbers are alpha numeric and the indicator field is numeric only.

   Note:

   Field 25RNI> is computer-generated and is not correctable.

3. Form 3800, General Business Credit, Part III, Column F can be positive or negative (+/-). The remaining fields must be positive (+) only.

4. Correction Procedures:

   1. Correct coding errors, transcription errors, and misplaced entries.

   2. If the tax period is before 202301, delete the field.

   3. If Form 3800, General Business Credit, is not attached and the EPE credit claims on Form 1065 Line 29 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then SSPND with Action Code 211 and correspond using Letter 1355C.

5. Listed below are the fields displayed in Sections 23, 24, and 25 of Form 3800.

   Section 23

   Field Designator	Field Title	Filed Length	Positive/Negative	Location Form 3800, Part III
   231BB	Form 7207 (Registration Number)	12	N/A	Line 1b, column b
   231BF	Form 7207 (Credit Transfer Election Amount)	15	+/-	Line 1b, column f
   231BG	Form 7207 (Credit Allowed After Passive Activity Limit)	15	+	Line 1b, column g
   231BH	Form 7207 (Gross Elective Payment Election)	15	+	Line 1b, column h
   231BJ	Form 7207 (Net Elective Payment Election Amount)	15	+	Line 1b, column j
   231DB	Form 3468 Part III, Line 1 (Registration Number)	12	N/A	Line 1d, column b
   231DF	Form 3468 Part III, Line 1 (Credit Transfer Election Amount)	15	+	Line 1d, column f
   231DG	Form 3468, Part III, Line 1 (Credit Allowed After Passive Activity Limit)	15	+	Line 1d, column g
   231FB	Form 8835, Part II (Registration Number)	12	N/A	Line 1f, column b
   231FF	Form 8835, Part II (Credit Transfer Election Amount)	15	+	Line 1f, column f
   231FG	Form 8835, Part II (Credit Allowed After Passive Activity Limit)	15	+	Line 1f, column g
   231GB	Form 7210, (Registration Number)	12	N/A	Line 1g, column b
   231GF	Form 7210 (Credit Transfer Election Amount)	15	+/-	Line 1g, column f
   231GG	Form 7210 (Credit Allowed After Passive Activity Limit)	15	+	Line 1g, column g
   231GH	Form 7210 (Gross Elective Payment Election)	15	+	Line 1g, column h
   231GJ	Form 7210 (Net Elective Payment Election)	15	+	Line 1g, column j

    

   Section 24

   Field Designator	Field Title	Field Length	Positive/Negative	Location on Form 3800, Part III
   241OB	Form 3468, Part IV (Registration Number)	12	N/A	Line 1o, column b
   241OG	Form 3468, Part IV (Credit Allowed After Passive Activity Limit)	15	+	Line 1o, column g
   241OH	Form 3468, Part IV (Gross Elective Payment Election)	15	+	Line 1o, column h
   241OJ	Form 3468 Part IV (Net Elective Payment Election)	15	+	Line 1o, column j
   241QB	Form 7218, Part II (Registration Number)	12	N/A	Line 1q, column b (Valid 202401 and later)
   241QF	Form 7218, Part II (Credit Transfer Election Amount)	15	+	Line 1q, column f (Valid 202401 and later)
   241QG	Form 7218, Part II (Credit Allowed After Passive Activity Limit)	15	+	Line 1q, column g (Valid 202401 and later)
   241SB	Form 8911, Part I (Registration Number)	12	N/A	Line 1s, column b
   241SF	Form 8911, Part I (Credit transfer Election amount)	15	+	Line 1s, column f
   241SG	Form 8911, Part I (Credit Allowed After Passive Activity Limit)	15	+	Line 1s, column g
   241UB	Form 7213, Part II (Registration Number)	12	N/A	Line 1u, column b
   241UF	Form 7213, Part II (Credit Transfer Election Amount)	15	+	Line 1u, column f
   241UG	Form 7213, Part II (Credit Allowed After Passive Activity Limit)	15	+	Line 1u, column g
   241VB	Form 3468, Part V (Registration Number)	12	N/A	Line 1v, column b (valid 202401 and later)
   241VF	Form 3468, Part V (Credit Transfer Election Amount)	15	+	Line 1v, column f (valid 202401 and later)
   241VG	Form 3468, Part V (Credit Allowed After Passive Activity Limit)	15	+	Line 1v, column g (valid 202401 and later)
   241XB	Form 8933 (Registration Number)	12	N/A	Line 1x, column b
   241XF	Form 8933 (Credit Transfer Election Amount)	15	+/-	Line 1x, column f
   241XG	Form 8933 (Credit Allowed After Passive Activity Amount)	15	+	Line 1x, column g
   241XH	Form 8933 (Gross Elective Payment Election)	15	+	Line 1x, column h
   241XJ	Form 8933 (Net Elective Payment Election Amount)	15	+	Line 1x, column J

    

   Section 25

   Field Designator	Field Title	Field Length	Positive/Negative	Location on Form 3800, Part III
   25AAB	Form 8936, Part V (Registration Number)	12	N/A	Line 1aa, column b
   25AAG	Form 8936, Part V (Credit Allowed After Passive Activity Limit)	15	+	Line 1aa, column g
   25GGB	Form 7211, Part II (Registration Number)	12	N/A	Line 1gg, column b (Valid 202401 and later)
   25GGF	Form 7211, Part II (Credit Transfer Election Amount)	15	+	Line 1gg, column f (Valid 202401 and later)
   25GGG	Form 7211, Part II (Credit After Passive Activity Limit)	15	+	Line 1gg, column g (Valid 202401 and later)
   254AB	Form 3468, Part VI (Registration Number)	12	N/A	Line 4a, column b
   254AF	Form 3468, Part VI (Credit Transfer Election Amount)	15	+	Line 4a, column f
   254AG	Form 3468, part VI (Credit Allowed After Passive Activity Limit)	15	+	Line 4a, column g
   254EB	Form 8835, Part II (Registration Number)	12	N/A	Line 4e, column b
   254EF	Form 8835, Part II (Credit Transfer Election Amount)	15	+	Line 4e, column f
   254EG	Form 8835, Part II (Credit Allowed After Passive Activity Limit)	15	+	Line 4e, column g
   25IND	Indicator that Part V, column b, has significant date	1	N/A	Form 3800, Part III, (edited bottom right margin of Page 4).