Show Tax Return Woes Too Many Errors Errors In arithmetic made on business Income tax returns have slowed down processing for corporations in Utah and the nine other states in the Western Region of the Internal Revenue Service ROLAND V V. V WISE IRS District District District Dis Dis- Director for Utah said Bald re returns returns returns re- re turns that contain errors or are incomplete have to be set aside and corrected manually This makes processing less efficient and will delay any refund a taxpayer taxpayer taxpayer tax tax- payer is expecting All business and Individual u a 1 returns filed by Utah taxpayers this year are being processed by computers installed by IRS in its automatic data processing system UNDER TH IRS computer system Information from tax returns Is transcribed from the returns to punched cards and then to magnetic tape Utilizing the tremendous speed and efficiency efficiency efficiency effi effi- of the computers re returns returns returns re- re turns with possible errors can be more effectively Identified permitting a more systematic classification for audit examination examination examination nation Mr Wise said The arithmetic on business returns filed Is verified by computer computer computer com com- puter and errors were found In both the governments government's favor as aswell aswell aswell well as In the taxpayers' taxpayers Mr Wise Vise said FAILURE TO include an anEm- anEm Employer Em Em- Employer Identification number or orthe orthe orthe the listing of an inaccurate number number number num num- ber has slowed the processing of business returns re received received received re- re so 50 far by the IRS service center at Ogden Most corporate taxpayers are furnished preaddressed Income tax forms which contain the name address and employer Identification number as they appear In IRS business master films These labels should be used for proper Identification Mr Wise said If there is any error on the label it should be lightly ruled out and the correct information entered IF THE preaddressed return or label Is correct but is not used Mr Ir Wise said the taxpayers taxpayer's taxpayers taxpayer's taxpayers taxpayer's tax tax- payers payer's name address and identifying nu number ber should be entered in the appropriate r I ate ateI I spaces on a blank return exactly as shown on the preaddressed preaddressed preaddressed pread pread- dressed return Even a slight discrepancy creates a problem in the automatic automatic automatic auto auto- matic processing cycle And ifa If Ifa ifa a name is misspelled or digits in an Identification number are transposed accurate posting to the master file account must be made by slower and more ex expensive expensive expensive ex- ex pensive manual methods after correspondence or other contact contact contact con con- tact with the taxpayer THE EMPLOYER Ef Identification tion number should also be placed on all forms schedules and other atta attachments filed with the tax return Mr Wise added One of the major errors be being being being be- be ing made by corporations this year is the failure to include the business code number for the principal business activity or orthe orthe orthe the use of an incorrect one Mr Ir Wise said So far this year a total of business returns filed at the IRS service center in Ogden had to be set aside for this Codes are listed on page 7 of the instructions for Form 1120 EMPLOYMENT tax returns received ved without all the re required required required re- re depositary receipts has slowed the processing of some 2447 business returns filed so far with the Western Service Center Mr Wise said returns cannot be processed wi without these receipts since they show the taxes employers have withheld withheld withheld with with- with with- held from payrolls and paid to the government |