2.3.41. Command Code PIEST

(1) CC PIEST is use to display estimated tax penalty on a tax module residing on the Taxpayer Information File (ITIF and BTIF only).

(2) Purpose: This transmits revised IRM 2.3.41, IDRS Terminal Input, Command Codes PIEST

(3) Audience: All IRS business areas.

(4) Policy Owner: The Chief Information Officer (CIO) is responsible for overseeing all aspects of our systems that operate the nation’s tax infrastructure.

(5) Program Owner: Account Services, which is under the Director, Internal Management

(6) Primary Stakeholders: Wage & Investment (W&I), Large Business and International (LB&I), Small Business Self-Employed (SB/SE), Tax Exempt and Government Entities (TE/GE), and Enterprise Operations (EOPS)

(7) Program Goals: This IRM provides the fundamental knowledge and procedural guidance for employees who work penalty on IDRS. By following the processes and procedures provided by this IRM, employees will process taxpayer estimated tax penalty explanation in a manner that follows IRS policy and procedures while promoting the best interests of the Government.

(1) Command code PIEST displays explanations of the computation of Estimated Tax Penalty. The computation uses only information accessed from the ITIF or BTIF tax module.

(2) Only tax periods subsequent to 198212 and MFT's 02, 05, 30, 33, 34 and 44 will be considered.

(3) For BTIF modules, only those that have a return posted cycle 198627 and subsequent can be considered for computation since the ESTIMATED-TX-BASE-AMT and other required elements were not extracted to the BTIF before then.

(4) Special processing was added for ITIF tax periods 198712 through 198811 to grant a partial waiver of estimated tax penalty for those persons with wages who would have normally been assessed penalty. For tax periods 198812 and beyond, normal penalty criteria will be applied.

(5) Command code PIEST will only attempt computation if master file has assessed the penalty (TC176). Command code PIEST's computation is basically a recompute of master file's computation plus consideration of any qualified TIF pending transactions.

(6) For a complete computation, the module must not contain any of the restrictive conditions specified in the list of messages in See IRM 2.3.41.2.

(7) The command code will allow the TIN, MFT, tax period and name control to be passed from a preceding command code such as TXMOD and other PINEX command codes; thus eliminating the requirement to always input the data on the screen.

(8) The various screens associated with command code PIEST are shown in See Exhibit 2.3.41-1 through See Exhibit 2.3.41-3.

(1)

(2) INVALID TIN — The requested TIN does not meet the standard validity criteria or is not IMF or BMF.

(3) INVALID MFT — The requested MFT code does not meet the standard validity criteria.

(4) INCONSISTENT MFT/TIN — The MFT code input is inconsistent with the type of account input.

(5) ONLY MFT 02, 05, 30, 33, 34 AND 44 VALID FOR CC PIEST — MFT 30, 02, 05, 33, 34 and 44 are the only types of tax valid for CC PIEST (MFT 05, 34 and 44 are only valid for tax period 198812 and subsequent).

(6) INVALID TXPD — The tax period input does not meet the standard validity criteria.

(7) TAXPERIOD 198212 AND PRIOR INVALID FOR CC PIEST— Any tax period 198212 and earlier is invalid for CC PIEST.

(8) ACCOUNT NOT ON TIF — The requested TIN does not match an account on File.

(9) REQUESTED TIN MATCHES DUMMY ACCOUNT ON TIF — The requested TIN matches a dummy account.

(10) REQUESTED TIN MATCHES MEMO ACCOUNT ON TIF — The requested TIN matches a memo account.

(11) ENTITY INDICATOR RECORD NOT ON TIF — There was no TIF Section TIF–02 on the tax module. Bad data on the module.

(12) INVALID FORMAT — CD ON POSTED RETURN — This indicates bad data on the TIF tax module. Notify Campus Control Staff.

(13) TAX MODULE NOT ON TIF — The requested MFT and tax period does not have a matching module for that account.

(14) REQUESTED TXPD MATCHES DUMMY MODULE ON TIF — The requested module is a dummy module.

(15) REQUESTED TXPD MATCHES MEMO MODULE ON TIF — The requested module is a memo module.

(16) UNABLE TO COMPUTE — NO POSTED RETURN ON TAX MODULE — There is no posted return associated with this specific tax module.

(17) UNABLE TO COMPUTE — NO TC176 ON MODULE ON TAX MODULE — Master file has not assessed estimated tax penalty on module.

(18) UNABLE TO COMPUTE — RESTRICTED TC ON MODULE — Estimated tax penalty was manually assessed.

(19) UNABLE TO COMPUTE — NET OF TC176/177 IS ZERO — Net amount of a qualifying transaction and its reversals is greater than zero.

(20) UNABLE TO COMPUTE — REVERSED TRANSACTION NET AMOUNT IS GREATER THAN ZERO — The reversal amount is greater than the amount being reversed. Bad data on the tax module.

(21) UNABLE TO COMPUTE — MODULE SHOWS NO PENALTY IS DUE — Self explanatory

(22) UNABLE TO COMPUTE — TOO MANY QUALIFYING TRANSACTIONS ON MODULE TO PROCESS — Self explanatory

(23) UNABLE TO COMPUTE — PROGRAM ERROR CODE XX — NOTIFY N.O. PROGRAMMER — Self Explanatory

(24) UNABLE TO COMPUTE — ESTIMATED TAX BASE AMT ON RETURN RECORD IS ZERO — This usually indicates an old module prior to 1/1/1986 and the tax base amount was not extracted to the TIF. If the tax period is after 198512, this would indicate bad data on the module and the Campus Control Staff should be notified.

(25) UNABLE TO COMPUTE — BMF RETURN POSTED PRIOR TO CYCLE 198627 — Necessary data for computation of estimated tax penalty is not available for extraction to the TIF from master file for returns posted prior to July, 1986.

(26) BMF ACCESS RESTRICTED — Employee is not authorized to access BMF accounts.

(27) IMF ACCESS RESTRICTED — Employee is not authorized to access IMF accounts.