The following forms may be used to request an extension of time to file a return.

Form 8868, Application for Extension of Time to File an Exempt Organization Return, except as noted below, is used to request an automatic 3-month extension of time to file the following forms and also to apply for an additional (not automatic) 3-month extension if the original 3-month extension was not enough time. Effective TY 2010, both Part I and Part II of Form 8868 may be filed electronically.

Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, is used to request an automatic 6-month extension of time to file Form 1120–C and all other 1120 series returns. A copy of Form 7004 must be attached to the return when filed.

Organizations that submit a Form 8868 should receive one of the following notices:

Research for extensions and the related notices using SUMRY/TXMOD/BMFOLT.

This section contains a list of forms that may be used to request an extension of time to file an EP–related return.

Currently, the only extensions being denied are extensions that are filed late.

Form 5330 extensions are posted to the BMF. If a customer states he/she submitted an extension for Form 5330 and it is not present on Master File, advise him/her to attach a copy of the Form 5558 he/she filed when submitting the return.

During the period from January 2004 through December 31, 2008, Form 5500 series extensions that were denied posted to the EPMF, blocking series 800 (prior to January 2004, Form 5500 series extensions were not posted to the EPMF). Reconsiderations also posted whether they were approved or denied. If a customer states he/she submitted an extension for Form 5500 during this period:

Beginning January 1, 2009, all extensions (approved, denied, and reconsiderations) post to IDRS as TC 460s.

If the caller has received a CP 216 series notice about an extension and states that no extension was requested, suggest to the caller that he/she contact the plan POA and/or administrator to see if that individual filed an extension request. If the authorized caller asks whether a copy of the filed extension can be sent to his/her attention, prepare a Form 4442 referral to your team's Office Assistant requesting that a copy of the extension be mailed to the caller's attention.

Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, is used to request:

Plan sponsors that submit a Form 5558 to extend the due date of their Form 8955-SSA or Form 5500 series return should receive one of the following notices:

Plan sponsors that submit a Form 5558 to extend the due date of their Form 5330 should receive one of the following notices:

Form 7004 or Form 4868 may be used in lieu of filing Form 5558 for Form 5500, Form 5500-SF, or Form 5500–EZ if the following criteria are met:

Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, is used to request an automatic 6–month extension of time to file all 1120 series returns.

Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, may be filed to give a sole proprietor an automatic 6–month extension of time to file an Individual Income Tax Return (Form 1040 series).

When OSPC receives an incomplete TEGE return (e.g., 990, 8038), they issue a letter to the taxpayer/POA requesting the missing information to complete the processing of the return. Letters may also be issued for entity, penalty and other miscellaneous purposes.

These letters are issued via IDRS. Once issued, ENMOD displays the following for each letter:

Each of these letters may address more than one situation. ENMOD does not display the paragraph numbers that were issued. Letter information remains on ENMOD until the account has had no activity for a period of time.

See Exhibit 21.3.8-11 for a list (not all-inclusive) of common campus letters issued to TEGE customers. You may view a copy of these letters through the Correspondex Letters on SERP.

If an authorized caller received an ERS notice and indicates that the organization needs a copy of the return as submitted in order to respond to the notice requesting missing information (e.g., because the organization did not keep a copy of the return it submitted), prepare a Form 4442 referral to ERS.

A CP 80 is issued when a taxpayer makes a payment(s) to the IRS but fails to file a tax return within 6 months after the return due date. CP 80’s continue to generate every 6 months until the credit condition no longer exists or until 6 months prior to the statute date.

A CP 81 is a final notice that is generated six months prior to the refund statute expiration date.

If the caller received a CP 80 or 81, advise the caller to respond to the notice.

CPs 140/144 were last issued in December 2007. They were replaced by the e-postcard (Form 990-N) initiative. See IRM 21.3.8.12.24, "Annual Electronic Notice Filing Requirement, Form 990-N."

These notices are generated when an information return is received late and/or incomplete and the Daily Delinquency Penalty is asserted. See IRM 21.3.8.10.3.1, "Daily Delinquency Penalty (TC 238/234)," and IRM 21.7.7 , Exempt Organizations and Tax Exempt Bonds, for a full discussion of how to process these calls. See IRM 21.3.8.4.1.5, "Taxpayer Authentication Procedures," for third party contacts.

There are three different types of CP 141s:

A CP 504/504B is a final balance due notice advising the taxpayer of the intent to levy their assets and informing them how to prevent collection action.

Probe to determine which notice the caller received. If the caller received the 504/504B, determine what the previous notice was.

If the current (or previous) notice is a CP 141I or CP 141C, regarding missing information, advise the caller the missing information must be provided to complete the return, as well as an explanation for not supplying the information with the originally-filed return. If the caller cannot provide the missing information, advise the caller to provide a detailed explanation why the missing information cannot be provided. Instruct the caller to pay the penalty. If the caller feels they have reasonable cause for removing the penalty, instruct the caller to provide a detailed explanation requesting that the penalty be abated and submit the request to the address shown in (7)(b) and follow (7)(c) below if applicable.

If the current (or previous) notice is a CP 141L, account assistors may abate the penalty only if one of the following applies:

If you are unable to abate the penalty (i.e., none of the bullets in (6) applies) and the caller has reasonable cause for penalty abatement, instruct the caller to:

CP 142, Request for Reason of Late Filing, is issued on late filed Tax Exempt Bond Forms 8038, 8038-G, and 8038-GC, filed without a reason for filing late. This is not an assessment notice; it is requesting an explanation for what IRS believes is a late-filed return.

The customer must respond within 30 days from the date of the notice either to the address on the notice or by faxing the response to the fax number on the notice.

CP 143, Late filing Accepted, is issued after an acceptable response to CP 142 is received. If the caller received a CP 143 notice, inform the caller the reason they provided was accepted and no further action is required.

Unless given other guidance (e.g., via a SERP Alert for specific situations), prepare a Form 4442 referral for the TEB subject matter expert in EO Accounts (fax 801-620-5555) for all questions relating to the CP 142.

CPs 217–219 and 221 are issued to organizations that file a "zero" Form 940 and based on the type of organization they are, they don't have to file a Form 940.

Transfer the caller per the TTG if she/he has questions about one of these CP notices.

Taxpayer Delinquent Returns Notices and Taxpayer Delinquent Investigations (TDIs) are issued from Master File on accounts that have not received a return (Form 990/990-EZ, Form 990–PF, Form 990–T, Form 990-N, Form 5227, and Form 1120-POL) to satisfy the filing requirement. The following table lists the forms, and the order the applicable notices are sent.

If the caller received the CP 259-E about failing to submit a Form 990-N, instruct him to follow the guidance in the first section of the notice, "Why Are You Getting This Notice?"

If the caller received a 1st or 2nd notice from the 259/42X series (other than the CP 259E), use the following table to provide appropriate advice to the caller:

If the caller received a CP 259-B/421 (990-PF), but research indicates that the entity is a presumptive PF and there is no open "F" case on LINUS or EDS/TEDS:

If the caller received a CP 259-C/422 or CP 427, research EDS/TEDS for a favorable "F" case. If none is found, instruct the caller to submit a Form 8940, a Form 8734 completed for the five most recent tax periods, and the appropriate user fee ( see Rev. Proc. 2012-8 2012-1 IRB 235 or its successor for the current fee) to the Cincinnati Campus and a response to the notice to the Ogden Campus.

If the caller received a CP 425 through 429 notice and states a response was previously sent and attached to the CP 259-A/420 through 259-F/424 or 259-G, verify disclosure, per IRM 21.3.8.4. Check for the following:

If the caller indicates that he/she sent a return under separate cover from the CP 259-A/420 through 259-F/424 or 259-G, inform the caller that it could take up to three months to appear on our system.

Refer to IRM 3.13.12, Exempt Organization Account Numbers, for additional information.

Organizations must file returns as required by law. If they want to request a change in current filing requirements, they must submit the pertinent information to EO Determinations. Organizations that intend to submit such a request must still respond to OSPC's notices in a timely manner.

The CP 213 Notice is not a bill. Except for the CP 213R, it contains a "proposed" penalty amount due to a late filed and/or incomplete Form 5500, Form 5500-SF, or Form 5500–EZ.

DOL's ERISA - Filing Acceptance System (EFAST/EFAST2) may correspond twice asking for missing information and/or addressing the late-filed return. If the customer does not respond to either of the letters, the return is processed as is, and the information is provided to the IRS.

Once IRS receives the information from EFAST/EFAST2, a module is established on Master File with a return condition code of 'I' for an incomplete return and/or an 'N' for a late filed return. At that time, a tape is produced to generate the CP 213N or I Notices.

The CP 213 Notice gives the filer 30 days after the date of the notice to respond. The proposed penalty listed on the notice is assessed after 60 days, unless Ogden Accounts Management Center (OAMC):

If the caller needs additional time to respond to the CP 213, he/she may fax that request to EP Accounts at 801-620-5670. The assistor may also request additional time for the caller to respond by inputting a history item on TXMOD. Input the history item to read "H, TPREPLY" . This gives the customer 14 days to respond before the assessment is processed.

How to handle inquiries regarding the CP 213 notice:

A CP 213R is generated when EP Accounts accepts reasonable cause and no penalty will be assessed. For these modules, EMFOLT shows a TC 971 with the applicable Action Code. See IRM 21.5.11.6.1,"Processing CP 213" , for additional details.

The CP 283, Penalty Charged on Your Form 5500 Return, is issued to notify the Form 5500 series filer of a balance due resulting from the assessment of a penalty. The filer already received the CP 213 (I or N), which proposed a penalty for an incomplete or a late filed return (or both).

Based on the response (or lack of response) to the CP 213, a Transaction Code (TC) 971 with a specific Action Code (AC) posts to the EPMF. TC 971 and the applicable Action Code appears on TXMOD and BMFOL. The following is a list of the Action codes and the definitions that trigger a file to be sent to BMF:

If reasonable cause was denied (AC 291), instruct the caller to follow the Payment Instructions and to submit the check with the Payment and Response Stub. If the caller wishes to appeal the denial, he/she should follow the Penalty Appeals instructions included in the 854C letter previously received.

If the caller wants to respond, instruct the caller either to fax or to mail the response to the address/fax number on the notice. A final response should be initiated within 30 days of the earliest IRS received date. Tell the caller that interest will continue to accrue until the penalty is abated or until the account is full paid.

The CP 295, Request for Payment - Form 5500, is an annual reminder notice as a follow up for the accounts in balance due. Refer to the CP 283 instructions above for resolution.

CP 403 and CP 406 notices are sent to plan sponsors who have not filed a Form 5500 series return for a particular plan year and our records indicate that the plan is still active. Both of these notices are computer generated.

The CP 403 notice is generally sent out to the taxpayer 15 months after the original due date of the return to remind delinquent filers to file a return. This notice has a 30-day response time frame.

The CP 406 notice is the second and final notice sent to the plan sponsor for a delinquent return, if we have not received a timely response from the taxpayer. The CP 406 notice is generally issued 15 weeks after the CP 403 notice. This notice also has a 30-day response time frame.

Use the following information to respond to callers' inquiries on these notices:

Advise the caller to respond in writing to the address or fax number on the notice. The appropriate contact information shown below may also be provided to the caller in lieu of or in addition to referring the caller to the contact information on the notice:

Filers who respond to the CP 403 or CP 406 with a copy of their unprocessed Form 5500 will have the return sent back to them with a Notice 1393 instructing them to file the return electronically. Advise the caller that the processing of the delinquent return may result in a notice of proposed penalty (CP 213 series) and that he/she should be prepared to supply proof that the return was originally timely filed or a reasonable cause statement requesting that the penalty not be assessed should he/she receive such a notice. See IRM 21.3.8.13.2, "Form 5500/Form 5500-SF/Form 5500–EZ," if the caller has questions about filing the return.

Notice 9774 is an annual notice that is generated from the Automated Non-Master File (ANMF) when the balance due is below the ACS tolerance.

These notices are generated only on Form 5500 Series returns processed before January 1, 2006. These notices are generated from Cincinnati SP Accounting.

If the caller is responding to the Notice 9774, determine if they have responded in the past.

If the caller states he/she would like to pay the amount shown on Notice 9774, advise the caller to mail the amount due to the address located on the bottom of the form/notice.

If the caller's question/issue requires NMF research to resolve, prepare a Form 4442 referral to EP Accounts (fax 801-620-5670).

When an organization files an SS-4 and indicates that it is a political organization, the entity is coded with a "1" in the new 527 Indicator field located on INOLES, "527-POL-ORG-CD #" . This sets in motion the follow-up on these organizations. If certain filing requirements are not met, the IRS sends the CP 249 series of notices.

When a call is received concerning CP 249A or CP 249C, check INOLES for the indicator. The indicator should be "1" at the time of the initial call.

The table below indicates the valid values for that field:

If this new field needs updating, use CC ENREQ/BNCHG Doc Code 63. If the 527 political organization calls Customer Account Services (CAS) and states:

To input the code:

If you cannot resolve the caller's CP 249 series issue using the procedures and information above (i.e., the issue involves more than simply changing the political organization indicator on IDRS), advise the caller that you are unable to take an appropriate action based on the phone call and that he/she needs to respond to the notice in writing by completing the appropriate section of the notice.

CP 138, Notification That the Overpayment on the Return was Offset Against Another Tax Period with a Balance Due, is issued to notify filers that an overpayment on a return has been offset to another tax period with a balance due.

Refer to IRM 21.3.1.4.76, "CP 138 Notice of Credit Applied," to respond to callers who have questions about this notice.

CP 231, Undelivered Refund Check, informs the taxpayer a refund check was returned undelivered and requests a correct address.

If the caller is authorized and able to provide the required information, update the address of record.

If the caller is unauthorized or unable to provide the required information, instruct the caller to respond to the notice.

Once the TC 014 posts to Master File the S- freeze is released and the refund check is reissued. Refer to IRM 3.14.2.4.10.19, "Undelivered Refund Check Freeze (S-)," for other actions that will release the freeze.

CP 214 is a reminder notice (new as of January 2012) sent to all filers with a Form 5500-EZ filing requirement two months before their plan ending date. The notice generates monthly.

The notice summarizes the filing requirements for one-participant plans and tells the recipient to verify whether or not the plan will need to file. The notice also explains the potential penalties that may be assessed for not filing a timely return.

While the notice does not require a response, it provides the TEGE toll-free number if the filer has any questions.

If the caller states that he/she should not have received the reminder because the plan had filed a final return in a previous period, research IDRS to verify that a proper final return had been filed and processed.

The Daily Delinquency Penalty (DDP) under IRC section 6652(c) (TC 238) is computed based on various factors such as the Return Due Date (RDD), Return Received Date (RRD), Correspondence Received Date (CRD), and the Correspondence Indicator Code (CIC).

The DDP is a dual penalty and may be assessed if either or both of the following apply (without reasonable cause):

In those cases where a return is incomplete, the return posts with Incomplete Return Item Codes (IRI Codes). See IRM 21.7.7.4.23.1.3.1 , "Incomplete Return Item (IRI) Codes," for a complete list of IRI Codes and the related missing or incomplete items and associated notice paragraphs.

The IRI code is located on TXMODA under the "posted return information" section as "IRI-CD> #" . See "IRI Code Example" in the job aids section of the TEGE Research Portal on SERP.

The DDP may be assessed for either a late-filed or incomplete return. CIC's are input during processing to help identify why the penalty was assessed. The CIC also identifies the type of information requested in the correspondence (e.g., Non-IRI or IRI) and the response, if any, that was received from the organization. A Correspondence Received Date (CRD) is also entered indicating the date the missing/incomplete information was provided.

Missing information is divided into two categories:

Penalty rates:

For additional information regarding the DDP, including all applicable codes, an explanation of penalty computation, and abatement procedures, see IRM 21.7.7, Exempt Organizations and Tax Exempt Bonds, IRM 20.1.1, Introduction and Penalty Relief, and IRM 20.1.8, Employee Plans and Exempt Organizations Penalties.

If a taxpayer fails to make timely and sufficient deposits of tax amounts with an authorized financial institution or by using the Electronic Federal Tax Payment System (EFTPS), when required by regulations, a Failure to Deposit Penalty (FTD) under IRC section 6656 may be assessed. The penalty is equal to the applicable percentage of the amount of the underpayment. The penalty may be abated upon showing reasonable cause (and not willful neglect) for the failure.

Certain government entities should not be assessed a Failure to Deposit penalty for employment taxes, so long as they are depositing such employment taxes with a timely-filed employment tax return. See Notice 2003-70, 2003-2 C.B. 916, and Rev. Proc. 80-4, 1980-1 C.B. 581. The Service places an Employment Code A on the BMF account of these entities. Thus, these entities have a reasonable cause for penalty abatement in these limited circumstances.

If a return is not filed on or before the due date, including any extension, a Failure to File (FTF) penalty under IRC section 6651(a)(1) may be assessed. The portion of the penalty attributable to a deficiency must be assessed using deficiency procedures. The penalty may be abated upon showing reasonable cause for the failure.

When a return is received without sufficient data to calculate the tax liability shown on the return (supporting schedules and/or forms) or without a signature, the processing center corresponds to try to obtain the missing information. If the taxpayer does not respond, a FTF penalty may be assessed.

If the amount shown on a return is not paid on or before the date prescribed for payments, a Failure to Pay (FTP) penalty under IRC section 6651(a)(2) may be assessed. The penalty may be abated upon showing reasonable cause for the failure.

If an Examination/DP Adjustment is not paid within 21 calendar days from the notice and demand date (10 business days if the amount equals or exceeds $100,000), an FTP penalty under IRC section 6651(a)(3) may be assessed. The penalty may be abated upon showing reasonable cause for the failure.

Most exempt organizations are required to make estimated tax payments on their unrelated business income tax as if they were corporations.

Form 990-T and Form 990-PF are subject to estimated tax penalties under IRC section 6655. Political organizations are not required to make ES payments; therefore, Form 1120-POL filed by a political organization is not subject to ES payments. However, filers of Form 1120-POL that are not political organizations are required to make ES payments. The rules for computing, assessing and abating these penalties are basically the same as those for Form 1120.

Tax exempt corporations use Form 990-W or Form 1120-W to compute their estimated tax. Estimated tax must be paid by EFTPS, if required.

Estimated tax payments must be made if the total expected tax (income tax minus credits) for the tax year is $500 or more.

See IRM 21.7.7.4.23.2, "Estimated Tax Penalty," for additional information.

Reasonable cause is based on all the facts and circumstances in each situation and allows the Service to provide relief from a penalty that would otherwise be assessed. Reasonable cause relief is generally granted when the taxpayer exercises ordinary business care and prudence in determining its tax obligations, but is unable to satisfy those obligations.

Reasonable cause relief is not available for all penalties. However, other exceptions may apply. For those penalties where reasonable cause can be considered, any reason which establishes that the taxpayer exercised ordinary business care and prudence, but was unable to comply with a prescribed duty within the prescribed time, is considered.

Generally, excise taxes cannot be abated due to reasonable cause.

Interest is required by law and cannot be abated due to reasonable cause.

Refer to the chart below when responding to inquiries on the status of a penalty abatement request:

For more information regarding reasonable cause, refer to the following IRMs:

Requests for installment agreements on EO and EP returns should be handled by TEGE notice assistors. If the request is made on a TEGE tax law application, transfer the caller to the appropriate TEGE notice application.

If the caller requests an installment agreement to pay off a balance due on an exempt organization return, route/refer the caller based on the collection status of the module:

If the caller requests an installment agreement to pay off a penalty assessed on an employee plan return, explain to the caller that we are unable to set up an installment agreement at this time. Instruct the caller to begin making payments and inform him/her that a yearly reminder notice will be sent to the address of record for the plan. Remind the caller that interest will continue to accrue until the penalty is paid in full.

When an application for recognition of exemption is received, an acknowledgement letter (Notice 3367) is generated to the applicant and to the primary (first listed) authorized Power of Attorney, if applicable. The applicant should allow up to three weeks from the mailing date of the application to receive the acknowledgement letter. If an insufficient user fee was paid, or if the application is an obsoleted revision, the applicant will not receive the acknowledgement letter described in this subsection. See IRM 21.3.8.11.5, "Applications with No/Insufficient Fee and/or on Obsoleted Forms," for additional details. Applications that are substantially incomplete are not processed beyond initial screening. See IRM 21.3.8.11.1.1.1, "Processing Applications That Are Substantially Incomplete (Letter 1042) and Other Status 03 Closures," for additional information.

The acknowledgement letter shows the organization’s Employer Identification Number and the Document Locator Number assigned to the application for tracking purposes. The letter also shows the application form number and, for exempt organization applications, the amount of user fee that was received with the application.

The acknowledgement letter explains to the applicant that the IRS does not issue "tax exempt numbers" or "tax exempt certificates" for state or local sales or income tax purposes and instructs the applicant to contact his/her state or local tax office for information on those topics.

Incoming applications which are substantially complete and which are submitted on a current revision and with the correct user fee undergo an initial review (Screening Group) and are separated into three categories:

Organizations whose applications fall in the first or second categories described above can expect to receive their exemption letter or a request for additional information within approximately 90 days of the date the application was submitted.

Applications that fall in the third category are assigned to an EO determination specialist in the order they are received. The organization will be contacted by the determination specialist when the application is assigned and is generally requested to submit additional information to develop the application.

If, after additional development, the determination specialist concludes that the organization qualifies for exemption, a determination letter is generated and sent to the organization.

If the determination specialist concludes that the organization does not qualify for exemption, the organization is sent a letter explaining the Service’s reason for denying the exemption. This letter includes a complete explanation of the organization’s appeal rights ( Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues).

The EP acknowledgement letter is Letter 3336C.

If a caller requests an affirmation letter for an organization that shows an ARED of 200806 or later, the new process applies. Prepare Letter 4168C for the organization or Letter 4170C for third parties.

If a caller requests an affirmation letter for an organization that shows an ARED of 200805 or earlier, the "old" rules apply and the organization must submit a Form 8734.

The information above does not pertain to organizations undergoing termination of their private foundation status by operating under 170(b)(1)(A)(vi) or 509(a)(2), i.e., organizations in status 25. These organizations must submit a completed Form 8734 or the applicable support schedule from the Schedule A of the Form 990 within 90 days after the end of their 60-month termination. If a caller asks for an affirmation letter for an organization in status 25 with an unexpired ARED, prepare a Form 4442 to the Correspondence Unit (fax 513-263-4330). If the ARED has expired and there is no final "P" case on EDS/TEDS, prepare an affirmation letter with the appropriate private foundation paragraph selected.

If the caller asks about the requirement to file a return during (or after) the initial five years of operation, explain that the normal tolerance rules apply, as well as the requirement to submit a Form 990-N if the annual gross receipts of the organization are normally $50,000 or less. In other words, during the first five years of operation, the organization must file a Form 990/990-EZ if its annual gross receipts are normally more than $50,000; otherwise it must submit a Form 990-N.

Regardless of their gross receipts, the organization should be encouraged to prepare a Schedule A for the fifth year of operation to determine whether it is meeting a public support test.

Beginning with the organization’s sixth year, again regardless of its gross receipts, it should complete the Schedule A of the Form 990 to determine whether it has met an applicable public support test.

Based on the organization's initial filing of the Form 990-PF, Ogden will update the organization’s filing requirement and foundation classification. EO Determinations will list the organization in the Internal Revenue Bulletin as one whose foundation status was reclassified. This procedure will apply whenever a public charity files a Form 990-PF based on a failure to meet the public support test for two consecutive years.

If the organization wishes to be reclassified as a public charity once it has filed a Form 990-PF, it must undergo the 60-month termination procedure under IRC section 507(b).

The following table summarizes an organization's foundation classification based on its passing or failing a public support test during its initial five years of operation and its sixth year:

If an organization with an EO submodule indicates it has dissolved or intends to dissolve (including organizations that merge into an organization that does not have formal exemption), provide the following guidance based on the organization's filing requirement (see (2) below if the organization is not required to file a return or to submit a Form 990-N).

Instruct organizations with individual rulings that are not required to file a return or to submit a Form 990-N (i.e., 990-06, 990-13, or 990-14 filing requirement) to send the following dissolution documentation to:
TEGE Correspondence Unit
P.O. Box 2508, Room 4024
Cincinnati, OH 45201

The information may also be faxed to 513-263-4330:

If IDRS shows that the organization is already in status 20, tell the authorized caller that our records indicate that the organization has terminated and that no additional action is required. Tell an unauthorized caller that the organization is no longer exempt by virtue of an approved application as of the status code date.

If the organization is a subordinate under a group ruling, advise the caller that the IRS does not require written documentation from a subordinate. The subordinate should file its final return, if required, and inform the central organization, which will notify the IRS.

If the organization does not have an EO submodule and/or EO filing requirements (or if no information comes up for the EIN), instruct the caller to send a letter requesting the closing of their account to:
IRS
Attn.: EO Entity, MS 6273
Ogden UT 84201

They may also fax it to 801-620-7116). The organization should state the reason they wish to close their account. If they have a copy of the EIN Assignment Notice that was issued when their EIN was assigned, they should include that when they write. Otherwise, they should be sure to include the complete legal name of the entity, the EIN, and the address.

Refer to Publication 4779, Facts about Terminating or Merging Your Exempt Organization, if additional information is required.

Exempt organizations which undergo a merger are required to notify the Service of the merger.

If the merging organizations are required to file an annual information return other than the Form 990-N, the merger should be reported on the return and the merger documents (see (6) below) should be submitted with the return.

If the merging organization has an individual ruling and is not required to file an annual information return or is required only to submit the Form 990-N, it should mail/fax the documents referenced in (6) below to:

If the surviving entity does not already have formal recognition of tax exempt status, it must submit the appropriate application and pay the applicable user fee in order to receive a letter of determination.

If none of the merging organizations has formal exemption, they should send the documentation and a letter of explanation to EO Entity at the address shown above. If only one or more of the merging organizations (not the surviving organization) have formal exemption, they must notify the Service of their termination. See IRM 21.3.8.12.5.1 , "Dissolution," for additional information.

The merger documentation required to be submitted by the organization(s) is determined by the entity type:

If an organization with an individual ruling of formal exemption wants approval on proposed changes to its activities and purpose:

Private letter rulings (in redacted form) are open to public inspection under IRC section 6110. See IRM 21.3.8.4.1.3 , "IRC Section 6110," for additional details.

If an organization with an individual ruling of formal exemption has already begun engaging in an activity that was not included in its application for exemption or has made changes to its organizing documents and/or by-laws, it must attach a complete description of the new activity/changes, including a conformed copy of any amendment(s) to its organizing document and/or by-laws, if applicable, to its annual information return (if it is a Form 990-PF filer) or it must fully describe the change(s) on Schedule O of the Form 990/990-EZ if it is a Form 990 series filer.

If the organization with an individual ruling of formal exemption is not required to file an annual return (990-02, 990-06, 990-13, or 990-14 filing requirement), it may submit the information to the TEGE Correspondence Unit. (The information may also be faxed to 513-263-4330.)

IRS
TEGE Attn. Correspondence Unit, Room 4024
P.O. Box 2508
Cincinnati, OH 45201

If an organization, including a subordinate in a group exemption, wants to change its foundation classification as shown on IDRS, it must make the request in writing (a cover letter summarizing the request and signed by an authorized individual) and submit the appropriate documentation to support the request as noted in the table below.

Organizations requesting a change of their foundation classification should send the documentation described above, along with Form 8940, Request for Miscellaneous Determination (available to the public some time after January 31, 2011), and the required user fee (currently $400 per Rev. Proc. 2011-8) to:

IRS
P.O. Box 12192
Covington, KY 41012-0192

Requests to change foundation classification (other than IRC section 507(b)(1)(B) terminations) are processed as "Amendment" or "A" cases. The organization will receive a determination letter in response to its request for reclassification indicating whether a change in public charity classification has been made.

If, based on an original ruling letter or a subsequent determination letter designating its foundation classification, an organization believes that its foundation classification is incorrect on IRS records, the organization must request correction. The organization must mail or fax a copy of the determination letter showing the correct foundation classification, along with a cover letter requesting correction, to:
EO Correspondence Unit
P.O. Box 2508, Room 4024
Cincinnati, OH 45201

Fax 513-263-4330

For information specific to 509(a)(3) organizations and the Pension Protection Act of 2006, see IRM 21.3.8.12.5.4.2, "509(a)(3) Organizations Affected by the Pension Protection Act of 2006 and Types of 509(a)(3) Organizations."

If IDRS shows that an organization has an expired ARED and there is no "F" case or foundation classification-affecting "A" case on EDS/TEDS (but there is an indication that Letter 1048 was issued):

If a 501(c)(3) organization shows as a presumptive private foundation or as a foundation code 09 on IDRS, research EDS/TEDS to see whether a ruling of foundation classification has been made. If found, update Master File accordingly. If not found (and the caller is authorized to act on behalf of the organization), instruct the organization to provide the information described in (1) and (2) above. See IRM 21.3.8.5.1.3.1, "Verification of Tax Exempt Status and Foundation Classification," if the caller is unauthorized.