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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 12. Exempt Organization Returns (Cont. 5)

3.11.12  Exempt Organization Returns (Cont. 5)

3.11.12.13 
Form 1120-POL

3.11.12.13.11  (01-01-2008)
Lines 21-25
Perfection and
Correspondence

  1. Line 21: Perfect. Circle brackets if present. Correspond if Line 21 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the required supporting form(s) are missing and you are not corresponding for another item.

  2. Line 22: If blank, subtract Line 21 from Line 20. Circle brackets if present.

  3. Line 23a: Perfect from attachments if necessary. Circle brackets if present.

  4. Line 23b: If an amount of ≡ ≡ ≡ ≡ ≡ ≡ is present, Form 2439 must be attached. Circle brackets if present. Correspond for Form 2439 if missing and the credit claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Line 23c: If an amount is present, Form 4136 must be attached. Correspond for Form 4136 if missing.

  6. Line 23d (2006 form revision): If an amount of ≡ ≡ ≡ ≡ ≡ ≡ is present, Form 8913 must be attached. Correspond for Form 8913 if missing and the credit claimed is ≡ ≡ ≡ ≡ ≡ ≡ . See IRM 3.11.12.13.2.1.

    1. Edit the amount on Line 23d to the space to the right of Line 23c.

    2. "X" Line 23d.

  7. Line 24 or 25: If blank, compute per (a)-(c) below. If Line 25 is $1,000,000 or more, see IRM 3.11.12.1.33.

    1. Line 24: Subtract Ln 23d from Ln 22.

    2. Line 25: Subtract Ln 22 from Ln 23d.

    3. If Line 24 contains penalty or interest, subtract the penalty or interest and recompute Line 24.

3.11.12.13.12  (01-01-2008)
♦Paid Preparer Checkbox Indicator♦

  1. The Paid Preparer Checkbox is located next to the taxpayer signature area. It indicates whether the taxpayer has elected, or not elected, to allow the Paid Preparer to represent them in order to answer questions about the return as it is processed.

  2. No action is required on amended returns.

  3. Take the following actions when present:

    If Then
    Only the "Yes" box is checked Take no action.
    The "No" box is checked,
    Neither of the boxes are checked, or
    Both boxes are checked     		Circle the Paid Preparer's Telephone Number.

3.11.12.13.12.1  (01-01-2008)
♦Paid Preparer SSN or PTIN♦

  1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature at the bottom-right corner of Page 1.

  2. The Preparer's SSN must be a nine-digit alpha-numeric number. The SSN cannot be all zeroes or all nines.

  3. A Preparer Tax Identification Number (PTIN) is a valid entry in the Preparer's Social Security Number area at the bottom of Form 1120–POL. The PTIN is nine-digits beginning with the alpha "P" (e.g., PXXXXXXXXX).

  4. Circle-out the Preparer's SSN or PTIN if it is invalid.

3.11.12.13.12.2  (01-01-2008)
♦Paid Preparer EIN♦

  1. The Preparer's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 1.

  2. The Preparer's EIN must be a nine-digit numeric number. The EIN cannot be all zeroes or all nines.

  3. Circle-out the Preparer's EIN if it is invalid.

3.11.12.13.12.3  (01-01-2008)
♦Paid Preparer Telephone Number♦

  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner.

  2. No action is required on Amended returns.

  3. If a complete Paid Preparer's Telephone Number is on the Preparer Telephone Number line, no editing of this line is necessary.

    Note:

    If more than 10–digits are present continue processing. ISRP will input the first 10–digits only.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10–digits, review the return and all attachments.

    If Then
    A complete Paid Preparer's Phone Number is located Edit to the "Phone No." line.
    A complete Paid Preparer's Telephone Number is not located or the number is illegible Circle the incomplete or illegible phone number.

3.11.12.13.13  (01-01-2008)
Form 4136
Perfection

  1. If Fuel Tax Credit is claimed on Form 1120–POL, Line 23c, Form 4136 must be attached.

  2. No editing is required for Form 4136 for TY2001 and subsequent.

  3. Conversion of CRN's is required when a significant amount is present for TY2000 and prior. For prior year CRN conversions, see Exhibit 3.11.12-27.

3.11.12.14  (01-01-2008)
Form 8872

  1. Form 8872 is an information return that is filed by tax-exempt section 527 political organizations (unless exception applies) to report certain contributions received and expenditures made.

    Note:

    All Forms 8872 must be scanned through the imaging process. See IRM 3.11.12.1.29.

3.11.12.14.1  (01-01-2008)
Form 8872 General Instructions

  1. Exhibit 3.11.12–20 identifies the transcribed "T" lines.

  2. Perfect all "T" lines as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave a "T" line blank only if it cannot be perfected in the steps above.

  3. Put Form 8872 in the following order:

    1. Form 8872

    2. Schedule A

    3. Schedule B

3.11.12.14.2  (01-01-2008)
Form 8872 Filers Defined

  1. Every section 527 tax-exempt political organization that accepts a contribution or makes an expenditure for a tax-exempt function during a calendar year must file Form 8872, except:

    1. a political organization that is not required to file a Form 8871,

    2. a political organization that is subject to tax on its income because it did not file or amend a Form 8871, or

    3. a qualified state or local political organization (QSLPO).

3.11.12.14.3  (01-01-2008)
Perfection, Editing, and Corresponding

  1. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.1.12

    2. Computer Condition Codes, IRM 3.11.12.1.15 (F, G); Edit the CCC to the right of Line B.

    3. Entity Perfection, IRM 3.11.12.1.24 through 3.11.12.1.24.6

      Note:

      If the "Change of Address" box is marked, route to Entity per IRM 3.11.12.1.10(1)(m).

    4. Received Date, IRM 3.11.12.1.32

    5. Tax Period, IRM 3.11.12.1.42

  2. Tax period: If the period ending date is missing, perfect as follows in YYMM format:

    1. Line 8(a)-8(e): If checked, edit the "due by" month and the year the return was received.

      Example:

      If Line 8b is checked and the return was received in August 2006, the tax period would be edited as 0607.

    2. Line 8f : If checked and a month is present edit the month and the year the return was received.

      Example:

      If Line 8f is checked, and April is annotated, and the return was received in May 2006, the tax period would be 0604.

    3. Line 8g : If checked and a month and year are present on 8(g)(2), edit the month and year as the tax period.

      Example:

      If 8(g)(2) has a date of August 24, 2006, the tax period would be 0608.

    4. Line 8h : If checked and a month and year are present on 8(h)(1), edit the month and year as the tax period.

      Example:

      If 8(h)(1) has a date of May 9, 2006, the tax period would be 0605.

  3. Caution: A tax period must be edited on current year returns unless the period ending date is missing and you are corresponding for Line 8. In this instance, leave the tax period blank.

3.11.12.14.4  (01-01-2008)
Page 1
Correspondence
(Form 8872)

  1. Correspond with the organization if they have filed a Form 8872 for the wrong year (odd or even) based on the box marked on Line 8.

    If the box checked is Then the tax period must be the following type of year
    8a-8d Even
    8e Odd
    8f Even
    8g & 8h Even or Odd

    Example:

    If the tax period is 200712 and box 8a is marked, you must correspond with the organization informing them they have not filed the correct report. If the tax period is 200812 and box 8a is marked, continue processing the return.

  2. Correspond if Line 8 is blank or has more than one box checked.

3.11.12.14.5  (01-01-2008)
Page 1
Perfection
(Form 8872)

  1. Line 8: Edit a "1" - "8" representing the box that is checked for "a" - "h" in the right margin of Line 8. See below:

    1. 8a = 1

    2. 8b = 2

    3. 8c = 3

    4. 8d = 4

    5. 8e = 5

    6. 8f = 6

    7. 8g = 7

    8. 8h = 8

  2. If Line 8 has no box checked, but there is a date on Line 8(f)-8(h), check the corresponding box.

  3. If Line 8 is blank or has more than one box checked, do NOT code Line 8. Edit ERS Action Code 211 and correspond for the correct box.

  4. Line 9:

    1. If blank, edit the total from Schedule A. If the total from Schedule A is blank, compute and edit to Line 9. If Schedule A is missing or blank, leave blank.

    2. If over $50,000 and the organization indicates they could not file electronically because they did not have a user ID or password, continue processing the return.

    3. If over $50,000 and the organization did not provide a reason for NOT filing electronically, attach Form 4227, annotate "Form 8872 over $50,000" , and route to Entity.

  5. Line 10: If blank, edit the total amount from Schedule B. If the total is blank, compute the total from Schedule B and edit to Line 10. If Schedule B is missing or blank, leave Line 10 blank.

3.11.12.14.6  (01-01-2008)
Schedule A
Correspondence
(Form 8872)

  1. Schedule A lists each contributor that made contributions of $200 or more during the calendar year.

  2. If an amount is present on Line 9, a Schedule A must be attached. If missing, edit ERS Action Code 211 and correspond for the missing Schedule.

3.11.12.14.7  (01-01-2008)
Schedule B
Correspondence
(Form 8872)

  1. Schedule B lists each recipient of expenditures of $500 or more during the calendar year.

  2. If an amount is present on Line 10, a Schedule B must be attached. If missing, edit ERS Action Code 211 and correspond for the missing Schedule.

Exhibit 3.11.12-1  (01-01-2008)
Form 990, Return of Organization Exempt from Income Tax

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Exhibit 3.11.12-2  (01-01-2008)
Schedule A (Form 990 or 990–EZ)

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Exhibit 3.11.12-3  (01-01-2008)
Schedule B (Form 990, 990–EZ, or 990–PF)

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Exhibit 3.11.12-4  (01-01-2008)
Form 990–EZ, Short Form Return of Organization Exempt From Income Tax

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Exhibit 3.11.12-5  (01-01-2008)
Form 1041–A, U. S. Information Return Trust Accumulation of Charitable Amounts

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Exhibit 3.11.12-6  (01-01-2008)
Form 5227, Split Interest Trust Information Return

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Exhibit 3.11.12-7  (01-01-2008)
Form 4720, Return of Certain Excise Taxes on Charities

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Exhibit 3.11.12-8  (01-01-2008)
Form 4720–A

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Exhibit 3.11.12-9  (01-01-2008)
Form 990–PF, Return of Private Foundation

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Exhibit 3.11.12-10  (01-01-2008)
Form 4136, Credit for Federal Tax Paid on Fuels

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Exhibit 3.11.12-11  (01-01-2008)
Form 4626, Alternative Minimum Tax — Corporations

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Exhibit 3.11.12-12  (01-01-2008)
Form 990–T, Exempt Organization Business Income Tax Return

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Exhibit 3.11.12-13  (01-01-2008)
Form 5578, Annual Certification of Racial Nondiscrimination

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Exhibit 3.11.12-14  (01-01-2008)
Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization

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Exhibit 3.11.12-15  (01-01-2008)
Form 2220, Underpayment of Estimated Tax by Corporations

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Exhibit 3.11.12-16  (01-01-2008)
Form 1041, Schedule I, Alternative Minimum Tax

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Exhibit 3.11.12-17  (01-01-2008)
Schedule D (Form 1041) and Form 4952

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Exhibit 3.11.12-18  (01-01-2008)
Form 8913

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Exhibit 3.11.12-19  (01-01-2008)
Form 1120-POL

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Exhibit 3.11.12-20  (01-01-2008)
Form 8872

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Exhibit 3.11.12-21  (01-01-2008)
Attachment Routing Guide

ATTACHMENT ROUTING GUIDE
FORM/DOCUMENT APPLICABLE FORMS DETACH ACTION

Note:

If Form or Document is not listed below, leave attached.
Form 56 and 56–F, Notice Concerning Relationship and Notice Concerning Fiduciary Relationship of Financial Institution All Yes Route to Entity. Also route with Form 56 any of the following if attached to the return:
• Certified will or codicil
• Certified copy of court order appointing a fiduciary
• Copy of valid trust instrument and attachments
• Any other evidence of creation of fiduciary relationship.
Form 729 All No Route entire form to the appropriate Area Office.
Form 843, Claim All Yes Route to OAMC, EO Accounts if there is no indication OAMC, EO Accounts has worked the claim. NOTE: Be sure that the name and EIN are legible. If Form 2439 is also attached, copy and route original with Form 843. Leave copy with return.
Form 872, Form 872–C, Consent to Extend Statute of Limitations 990–PF No Supports IRC 507 (b)(1)(B) Termination. See IRM 3.11.12.7.14.
  All others No If Form 872–C appears to be an original and is not signed by the District Director, detach Form 872–C and route to CSPC. If Form 872–C is a copy, do not detach. In either case, continue to edit and process the return.
Form 851, Affiliations Schedule 990–T No Support for consolidated 990–T return. See IRM 3.11.12.8.4.
911, Application for Taxpayer Assistance Order (ATAO) All Unnumbered - No

Numbered - Yes 		Unnumbered - Forward entire return to TAS.

Numbered - Photocopy the return, mark the copy "COPY" , attach the copy to Form 911 and forward to TAS.
Form 926, Transfer of Stock or Securities to a Foreign Operation All No Leave attached and continue processing.
Form 990 Series All Yes If an original return, detach and process.
Form 1023, 1024, or 1028, Applications for Exemption All Yes Route to CSPC.
Form 1041–A, U.S. Information Return All Yes If an original return, detach and process.
Form 1042, Return of Income Tax to be Paid at Source, and Form 1042–S (Copy A only), Income Subject to Withholding Under Chapter 3 of IRC. All Yes Write the received date of the return on Form 1042 or Form 1042–S, photocopy it and attach the copy to the return. Route the original 1042 or 1042–S to PSPC.
1042–S (Copy B Only) Income Subject to Withholding Under Chapter 3 of IRC. 990–PF, 990–T No