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Part 3. Submission Processing

Chapter 5. Accounts Services

Section 61. Files Management and Services (Cont. 1)

3.5.61  Files Management and Services (Cont. 1)

3.5.61.3 
Receiving And Preparing Other Documents For Filing

3.5.61.3.25  (01-01-2012)
Form 5596, TE/GE Non-Examined Closings and Form 5599, TE/GE Examined Closing Record

  1. Receive documents from the originating office attached to the back of Form 1332, Block and Selection Record, with blocks of EO returns (e.g., Form 990, Form 990-PF).

  2. File and maintain in DLN order.

  3. Ensure that Form 1332 is attached to Form 5596 or Form 5599 when preparing the blocks of returns in the permanent retention area.

3.5.61.3.26  (01-01-2012)
Form 5650, EP Examined Closing Record

  1. Receive documents from the originating office attached to the back of Form 1332 or Form 813, Document Register, with blocks or originals or photocopies of Employee Plan (EP) returns (e.g. Form 5500 series).

  2. File, maintain and prepare for permanent retention in DLN order.

  3. Retire to the Federal Records Center one (1) year after end of processing year.

  4. Destroy six (6) years after end of processing year.

3.5.61.3.27  (01-01-2012)
Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns

  1. For Form 7004 submitted without remittance, destroy one (1) year after the end of the processing year.

  2. For Form 7004 submitted with remittance, retire to the Federal Records Center beginning July 1, eighteen (18) months after the end of the processing year.

  3. Destroy five (5) years after the end of the processing year.

3.5.61.3.28  (01-01-2012)
Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips (CSPC only)

  1. Form 8027 is numbered as Tax Class 5, Document Code 57.

  2. If received, route to the Cincinnati Submission Processing Campus.

  3. Retire to the Federal Records Center beginning January 2nd, one (1) year after the end of the year in which the returns were numbered and processed.

  4. Destroy six (6) years after the end of the processing year.

3.5.61.3.29  (01-01-2012)
Form 8038, Information Return for Tax Exempt Private Activity Bond Issues (OSPC only)

  1. File and retain Form 8038 in TIN (Issuer) order by year of receipt.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.30  (01-01-2012)
Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds (OSPC only)

  1. File Form 8038-CP in TIN (Issuer) order by year of receipt.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.31  (01-01-2012)
Form 8210, Self Assessed Penalties Return

  1. Receive Form 8210 in two (2) different ways:

    1. With remittance - Receipt of DLN from ISRP.

    2. Without remittance - Processed in the Accounts Management Function.

  2. Due to the different numbering methods, these forms are filed in different areas of the Files Function as this is important when these forms are ready for retirement.

3.5.61.3.32  (01-01-2012)
Form 8282, Donee Information Return (OSPC only)

  1. File and retain alphabetical order by year of receipt.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.33  (01-01-2012)
Form 8329, Lender's Information Return for Mortgage Credit Certificates (MCCs) (OSPC only)

  1. File and retain in TIN order (Reporting Authority) order by calendar year.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.34  (01-01-2012)
Form 8330, Issuer's Quarterly Information Return for Mortgage Credit Certificates (MCCs) (OSPC only)

  1. File and retain in TIN order by calendar year.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.35  (01-01-2012)
Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent.

  1. Form 8332 are required to be attached to the taxpayer's return.

  2. Route loose Form(s) 8332 (paper and electronically filed) to the Accounts Management Function for adjustment input that will provide for association of the form.

3.5.61.3.36  (01-01-2012)
Form 8453-X, Political Organization Declaration for Electronic Filing of Notice 527 Status, Form 8871, Political Organization Notice of Section 527 Status, and Form 8872, Political Organization Report of Contributions and Expenditures

  1. After electronically submitting Form 8871, an authorized official must sign, date and submit Form 8453-X to the Ogden Submission Processing Center.

  2. Research IDRS for DLN beginning with "91977" .

  3. Obtain IDRS print, stamp or write "In lieu of Form 5147" , highlight DLN, file and maintain.

  4. Retire to the Federal Records Center beginning January 2 through March 31 following the year in which the returns were numbered and processed.

  5. Destroy on or after January 16, six (6) years after the end of the processing year unless needed for the Collection Statute Expiration Date (CSED) Extract.

3.5.61.3.37  (01-01-2012)
Form 8606, Nondeductible IRAs

  1. File and retain Form 8606 (loose) in alphabetical order by year of receipt.

3.5.61.3.38  (01-01-2012)
Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund (OSPC only)

  1. File and retain Form 8621 in alphabetical order by year of receipt.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.39  (01-01-2012)
Form 8703, Annual Certification of a Residential Rental Project (OSPC only)

  1. File and retain Form 8703 in TIN (owner of project) order by calendar year.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.40  (01-01-2012)
Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)

  1. Retain Form 8833 (loose) in alphabetical order by year of receipt.

  2. Retire to the Federal Records Center beginning January 2 through March 31 following the year in which returns were numbered and processed.

  3. Destroy on or after January 16, six (6) years after the end of the processing year unless needed for the Collection Statute Expiration Date (CSED) Extract.

3.5.61.3.41  (01-01-2012)
Form 8840, Closer Connection Exception Statement for Aliens (AUSPC Only)

  1. File and maintain loose Form 8840 in alphabetical order by year of receipt.

  2. Retire to the Federal Records Center beginning January 2nd through March 31st following the year in which returns were numbered and processed.

  3. Destroy on or after January 16, six (6) years after the end of the processing year unless needed for the Collection Statute Expiration Date (CSED) Extract.

  4. For Form 8840 (loose) that cannot be filed alphabetically due to insufficient information (e.g., information is illegible, missing, blank, etc.), designate a storage area/box with the notation "Form 8840 - Unidentified or Unable to Associate" and file by year of receipt.

  5. At the end of the calendar year, collect all the unidentified/unable to associate loose Form 8840

  6. Retain the documents for one (1) year (in the event a future association can be made) and then destroy.

  7. Form 8840 (loose) is processed at the Austin Submission Processing Campus.

3.5.61.3.42  (01-01-2012)
Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition (For Use by Alien Individuals Only) (AUSPC Only)

  1. File and maintain Form 8843 (loose) in alphabetical order by year of receipt.

  2. Retire to the Federal Records Center beginning January 2 through March 31 following the year in which returns were numbered and processed.

  3. Destroy on or after January 16, six (6) years after the end of the processing year unless needed for the Collection Statute Expiration Date (CSED) Extract.

  4. For loose Form 8843 that cannot be filed alphabetically due to insufficient information (e.g., information is illegible, missing, blank, etc.), designate a storage area/box with the notation "Form 8843 - Unidentified or Unable to Associate" and file by year of receipt.

  5. At the end of the calendar year, collect all the unidentified/unable to associate loose Form(s) 8843.

  6. Retain the documents for one (1) year (in the event a future association can be made) and then destroy.

  7. Form 8843 (loose) is processed at the Austin Submission Processing Campus.

3.5.61.3.43  (01-01-2012)
Form 8857, Request for Innocent Spouse Relief (CSPC only)

  1. If received, route Form 8857 to the Cincinnati Submission Processing Campus (CSPC).

3.5.61.3.44  (01-01-2012)
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships

  1. Route loose Form 8865 to the Accounts Management Function for association with the taxpayer's tax return.

3.5.61.3.45  (01-01-2012)
Form 8868, Application for Extension of Time to File an Exempt Organization Return (OSPC Only)

  1. File and maintain in Employer Identification Number (EIN) order by year of receipt.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.46  (01-01-2012)
Form 8879, IRS e-file Signature Authorization (CSPC only)

  1. When an electronic return is filed, Form 8879 is required to be completed and retained by the Electronic Return Originator (ERO).

  2. Beginning January 2011, Form 8879 will be shipped directly from the EROs to the Files Area at CSPC for retention.

  3. Receive, sort, retain and retrieve Form 8879 by Electronic Filing Identification (EFIN) order.

  4. Acknowledge and return to the originator Form 3210 per instructions in IRM 3.5.61.1.2.5, Form 3210, Document Transmittal.

3.5.61.3.47  (01-01-2012)
Form 8918, Material Advisor Disclosure Statement (OSPC only)

  1. File in reportable transaction number order if the reportable transaction number is present.

  2. File in alphabetical order by year of receipt if the reportable transaction number is not present (application denied).

  3. Form 8918 replaces Form 8264, Application for Registration of Tax Shelter.

  4. If received, route to the Ogden Submission Processing Campus.

3.5.61.3.48  (01-01-2012)
Form 8925, Report of Employer-Owned Life Insurance Contracts

  1. Form 8925 is required to be attached to the policyholder's return for each year.

  2. Route Form 8925 (loose) to the Account Management Function for adjustment input that will provide for association of the form.

3.5.61.3.49  (01-01-2012)
Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent (CSPC only)

  1. File and maintain in TIN (SSN) order by year of receipt.

  2. If received, route to the Cincinnati Submission Processing Campus.

3.5.61.3.50  (01-01-2012)
Form SS-4, Application for Employer Identification Number

  1. Form SS-4 received from the Accounts Management (EIN Function) and Entity Function will have this information shown on the outside of the folder:

    • Julian Date or Calendar Date and Year

    • Employee Number

  2. File forms by employee number sequence by date.

  3. Retire to the Federal Records Center at the end of June and at the end of December those forms and related documents over six (6) months old.

  4. Destroy five (5) years after the end of the year in which processed.

3.5.61.3.51  (01-01-2012)
Schedule K-1 (CSPC & OSPC only)

  1. Schedule K-1 is no longer re-associated with the parent return (Form 1041, Form 1065, or Form 1120s).

  2. Schedule K-1 will be received on batch carts or "stat " boxes in individual gusset/blue folders in parent DLN order.

  3. The parent return DLN will be written/stamped on the individual gusset/blue folder for each set of Schedule K-1.

  4. Retain Schedule K-1 under the parent return DLN.

  5. Pull/retrieve Schedule K-1 whenever a request for the parent return indicates they are needed.

  6. Retain Schedule K-1 with the parent return once they have been pulled and associated.

  7. Return to the originator those schedule) K-1 received for association with an electronically filed parent return as there is nothing in Files with which to associate the schedule(s).

3.5.61.3.52  (01-01-2012)
Oversize Administrative Files

  1. Each Submission Processing Files Function has a different capacity for storage. The major concern is the accountability of all paper under documents under DLN control whether it be at the Campus or retired to a Federal Records Center.

  2. In those instances where a taxpayer's file contains excessive documents (schedules, audit reports, etc.), which precludes filing in the normal block of documents, determine/devise a consistency filing system for all oversize administrative files based on local space availability.

    Note:

    Consider an Administrative File containing documents of 4 inches or more as overly large.

  3. Stamp the upper right hand portion of the return"Administrative File" being careful to avoid stamping over any other information.

  4. Write this information on the front of any cartons/folders prepared for storage:

    • DLN

    • Taxpayer Name Control

    • Tax period

    • Form Number

  5. Update all administrative files to show the new controlling DLN for the taxpayer when a return is renumbered.

  6. Process/fill requests for returns having administrative files with the complete file.

3.5.61.3.53  (01-01-2012)
Citizenship Status Statements (OSPC only)

  1. Citizenship Status Statements from the Correspondence Function consists of these categories:

    • Citizen

    • Section 911

    • Other

  2. File these statements within category, by year as received for retirement as outlined in IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records.

3.5.61.3.54  (01-01-2012)
Foreign Investment in Real Property Tax Act (FIRPTA) Correspondence (OSPC only)

  1. File and maintain FIRPTA correspondence in alphabetical order by year of receipt.

  2. If the taxpayer name/identifying information is not readily identifiable on the correspondence, route to the Accounts Management Function for a determination as to the taxpayer name, etc.

3.5.61.3.55  (01-01-2012)
United Mine Workers of America Benefit Claims

  1. File claims in alphabetical order by year of receipt.

3.5.61.3.56  (01-01-2012)
Unidentified Remittance and Excess Collection Paper Files

  1. Annotate folders with this information:

    • Date

    • Employee Number (full 10 digit number)

    • Type of Input

  2. File folders by date, then employee number sequence by type of input.

  3. Service requests for these documents by following instructions for IDRS source document requests.

  4. These folders should not be considered as IDRS source document folders as they have a separate and unique retention period.

  5. For retention and destruction information, see IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records, Item 158.

3.5.61.3.57  (01-01-2012)
SCRIPS Processed Form 940 and Form 941

  1. Form 940 (2006 and later) and Form 941 (2005 and later) processed via SCRIPS will not be stapled together.

  2. Form 940 (2006 and later) and Form 941 (2005 and later) processed via SCRIPS may have a folder within the gusset folder that contains the return attachments. Both the return and attachments will have a unique number stamped in the upper left margin of the return and on the top of the attachment(s).

  3. When a request for a return is received, look for the folder within the gusset folder. If found, search the interior folder for all pages associated with the return. Staple the return together (with attachment when appropriate) and send to the requester.

  4. When documents (returns and attachments) are received for re-filing, staple and re-file together. Do not separate the attachments(s) from the return and re-file separately.

3.5.61.3.58  (01-01-2012)
Lockbox Processed Documents

  1. Lockbox processed forms are sent to the Files Function after all transactions in the block have gone to good tape (i.e. cleared Error Resolution System).

  2. Check received documents against the CPL/ACPL as appropriate.

  3. Perform a cursory review of audit trail legibility that is printed on the back of the form. This assists in identifying any checks that may have been left in the block.

  4. Associate the Optical Character Recognition (OCR) Remittance Register or Form 813, Part 2, Document Register, with the documents prior to shelving.

  5. When filing request for blocks of documents, include the document lister tape with the block.

  6. Form 4868/ Form 4868V, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, is processed through Lockbox. Form 4868V is the tear-off bottom portion of the form and is numbered by Lockbox.

  7. Form 4868V (top portion of the form) is placed in the back of the folder in the order of input.

  8. Form 4868V is numbered using the FLC and shows a Tax Class/Document Code of "217" .

  9. Service these requests by pulling the numbered Form 4868V only.

  10. Report any unusual problems to the Submission Processing Campus Lockbox Coordinator.

3.5.61.3.59  (01-01-2012)
Integrated Submission and Remittance Processing System (ISRP)

  1. ISRP replaces the Remittance Processing System (RPS) for entering data from tax returns and processing remittances.

  2. ISRP documents along with Lockbox bank remittance transaction data are consolidated into the Remittance Transaction Research System (RTR) which images remittance transaction information and makes it available to authorized users who need to research remittance transactions.

  3. ISRP assigns a DLN to each payment record. This DLN posts to the Master File and does not appear on the paper source posting document when the imaged archive does not fulfill research needs.

  4. The RPSID number consists of a three digit deposit date followed by a six digit numerical control number 000000 through 999999.

  5. The RPSID number does not appear on the Cycle Proof Listing (CPL)/Automated Cycle Proof Listing (ACPL).

3.5.61.3.59.1  (01-01-2012)
ISRP Identification

  1. ISRP can be recognized by the SP center assigned FLC with a 17, 19, 20, 27, 70 and 76 document code.

  2. ISRP documents are identified by the File Location Code in the DLN.

    SPC FLC Overflow FLC
    Andover 08 01
    Atlanta 07 58
    Austin 18 74
    Brookhaven 19 N/A
    Cincinnati 17 N/A
    Fresno 89 95
    Kansas City 09 41, 45, 46, 47, 48
    Memphis 49 57, 61
    Ogden 29 81, 83, 84, 85, 86, 99
    Philadelphia 28 54, 55, 66, 98

3.5.61.3.60  (01-01-2012)
Adjustment Documents

  1. Route case files with erroneous data attached to the originating/responsible area.

  2. After BMF output processing is completed, pull Form 709 and related documents and file them in alphabetical order.

  3. See IRM 3.5.61.3.61, IDRS Source Documents, for special procedures for adjustments input via IDRS.

3.5.61.3.61  (01-01-2012)
IDRS Source Documents - Sending to the Files Function

  1. The information listed below must be shown on Form 6502, Employee Source Document Folder Label, when sending source documents to the Files Function for storage:

    • Employee Number (full 10 digit number)

    • Input Date

    • Sequence Number

    • Type of Input

  2. Position Form 6502, Employee Source Document Label, on the front of the folder in the upper right corner.

    Note:

    Source document folders are shelved/stored with the label positioned to the outside for easy visual recognition. Failure to place the label in the proper location can result in problems associated with locating the source documents.

  3. If the source document for a transaction is too bulky to fit into a folder, they should be routed to the Files Function in one or more boxes with Form 3210, Document Transmittal. Form 3210 should contain the same information that is required on Form 6502, Employee Source Document Folder Label.

  4. If the information required on Form 6502, Employee Source Document Folder Label, is not provided, return the folder to the functional area to obtain it.

  5. File source documents folders by Input Date and Employee Number Sequence.

  6. For timeliness requirements when processing source document folders, see IRM 3.5.61.1.8, Timeliness Requirements.

3.5.61.3.61.1  (01-01-2012)
IDRS Source Documents - Receipt in the Files Functions

  1. If a folder of source documents or documents within a folder has no generated transactions, hold and check the following day's output. If no transaction record is received, but transaction record was generated (based on adjustment/blocking series, etc.), return the folder to the originating function.

    Note:

    If systemic problems occur, it may be necessary to hold the folders for a longer period of time.

  2. When needed, check/verify each block of documents (CFs 5147) using CTRL D to verify receipt.

  3. Note the following dispositions when handling source documents:

    • Document Code (DC) 54 with Transaction Code (TC) 534 and Blocking Series (BS) 199 will generate for both IMF and BMF accounts.

    • Route Non-Master File (NMF) IDRS transaction records, Document Codes 28, 45, 50, and 77 to the Accounting Function.

    • Route Document Code 63 (except Transaction Codes 53, 54, 55 and 70) to the Accounting Function.

    • Do not pursue missing blocks for NMF IDRS transaction records.

    • If a Document Code 47 or 54 re-file DLN is received without a source document or the source document appears invalid, route a copy of the transaction record to the initiator's manager.

      Note:

      Do not route copies of Document Code 47 transaction records that indicate Examination Disposal Codes 28, 29, 33 or 36-47 OR those with Blocking Series 100-199, 130-179, 190-199, 280-299 and 400-479.

    • Do not route copies of Document Code 47 transaction records that indicate Examination Disposal Codes 29 or 99 ( Employee Plans (EP) or Exempt Organizations (EO) as these will not have source documents.

    • Do not route Document Code 54 transactions records with a Reference Code 616 as these will not have source documents

    • After stapling of appropriate source documents to the corresponding transaction record, sort CF 5147 into DLN sequence except Form 709 adjustments. See IRM 3.5.61.3.60, Adjustment Document.

    • Prepare For 1332 and file folder or Block Divider Card for each block of documents and file in DLN order.

    • Prepare additional block file folders when necessary to eliminate over-stuffing of folders.

    • Do not return transaction records indicating "CIS-NSD" using Blocking Series 00 to the originator. Block and shelve.

    • Certain Tax Delinquency Investigations (TDIs) used as source documents for IDRS input by the Campus TDI Function are held temporarily for subsequent action. These documents are sent to the Files Functions as Re-files and are labeled with the input date and employee number. Re-file source documents in the appropriate source document folder.

3.5.61.3.61.2  (01-01-2012)
IDRS Source Documents - Source Document Retained (SDR)/ Non Source Document (NSD)/Source Document (SD)

  1. When an adjustment (Document Code 54) is made to a taxpayer's account, it can be based on any of the following:

    • Source Document Retained (SDR)

    • Non-Source Document (NSD)

    • Source Document (SD)

  2. Certain Document Code 54 source documents may be deliberately held/retained by the Accounts Management Function for further action.

  3. These source documents can be identified by the annotation of SDR (Source Document Retained) in the "Remarks" field.

  4. Process the SDR documents as follows:

    1. Photocopy SDR transaction records and file the copy (by DLN) as a charge-out.

    2. Route original SDR transaction records to specific activity annotated in the Remarks field for association with retained source document.

    3. Route original SDR transaction records without special notation to the originator.

  5. If the transaction record indicates Non-Source Document (NSD) or indicates the adjustment was completed based on oral statement/testimony, file the document as this denotes no source document will be sent to the Files Function.

  6. If the transaction record indicates Source Document (SD) but is received without a source document, return and request the needed documents from the originator.

  7. Mail time can sometimes delay the association of the source document with the transaction record. In lieu of waiting, note the following:

    • Photocopy those transaction records requiring documentation for use as suspense items.

    • Associate source documents when received and route to Re-files for placement in its original block.

  8. If the source document is still not received after allowing the appropriate amount of time and contacting the originator/originator's function, do the following:

    • Write or stamp "No Source Document Received " on the transaction record.

    • Date and sign

    • File by Input Date and Employee Number.

3.5.61.4  (01-01-2012)
Elections/Election Statements

  1. This section describes the processes for receiving and processing elections and/or election statements received in the Files Function.

  2. Receive and process all types of elections and consents (includes IRC Section 83(b), Form 8023 and elections where there is no record of the return) alphabetically by type of return by year of receipt unless otherwise specified in this section.

  3. Return to the originator all Elections and Consents received without the following information shown on the documents:

    • Name Control

    • MFT

    • Tax Period

    • No Received Date

  4. Retire elections as part of the administrative file of the related return, if known. Otherwise, retain in the SPC.

3.5.61.4.1  (01-01-2012)
Internal Revenue Code Section 613A(c)(10) Election Statement

  1. This election statement is filed by individual taxpayers electing the exception provided by Internal Revenue Code(IRC) Section 613A(c)(10).

  2. Time stamp the statements and file in alphabetical order by year of receipt.

3.5.61.4.2  (01-01-2012)
Form 2553, Election by a Small Business Corporation

  1. Receive and maintain Form 2553 in DLN sequence by year of receipt.

  2. Retire to the Federal Records Center one (1) year after the end of the processing year.

  3. Destroy seventy five (75) years after end of the processing year.

3.5.61.4.3  (01-01-2012)
Form 4876-A, Election to be Treated as an Interest Charge DISC (Domestic International Sales Corporation)

  1. File and retain in alphabetical order by year of receipt.

3.5.61.4.4  (01-01-2012)
Form 8328, Carryforward Election of Unused Private Activity Bond Volume Cap (OSPC only)

  1. File and retain in alphabetical order by year of receipt.

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.4.5  (01-01-2012)
Form 8842, Election to Use Different Annualization Periods for Corporate Estimated Tax (CSPC only)

  1. File and retain in alphabetical order by year of receipt.

  2. If received, route to the Cincinnati Submission Processing Campus.

3.5.61.4.6  (01-01-2012)
Form 8855, Election to Treat a Qualified Revocable Trust as Part of an Estate

  1. Form 8855 may be received in Files in the following ways:

    • As an attachment to Form 1041 (paper)

    • As a source document to be associated with TC 290, Additional Tax Assessment

    • As a source document to be associated with TC 930, Return Required Suspense, awaiting Form 1041

  2. If return (Form 1041) does not post within the prescribed timeframes (TC 930), file and retain Form 8855 in alphabetical order.

  3. Form 8855 is processed at the Cincinnati Submission Processing Campus and the Ogden Submission Processing Campus.

3.5.61.4.7  (01-01-2012)
Form 8869, Qualified Subchapter S Subsidiary Election

  1. Receive Form 8869 from the Entity Control Function via Form 9856, Attachment Alert.

  2. Associate with Form 2553.

  3. Route Form 8869, received without the Form 2553 DLN noted for association to the Entity Control Function.

3.5.61.4.8  (01-01-2012)
IRC Section 243 Election

  1. Obtain the latest Form 1120 DLN.

  2. Attach the election document to the return and refile under the most recent controlling DLN.

3.5.61.4.9  (01-01-2012)
IRC Section 103 Election

  1. Process statements filed by municipalities electing the five (5) million dollar exemption provided under this IRC section.

  2. Receive and maintain elections as received by calendar year.

3.5.61.4.10  (01-01-2012)
Net Leases of Real Property Election

  1. This election can be made by taxpayers via letter, by filing Form 843, Claim for Refund and Request for Abatement, or by amended return (Form 1040X).

  2. When received in the Files area, the election document should contain the DLN, taxpayers name, address, taxpayer identification number and the tax year.

  3. Associate the election document with the individual income tax return for the taxable period indicated on the election.

  4. If the DLN or "No Record" is not annotated on the election document, return it to the originator.

3.5.61.4.11  (01-01-2012)
IRC Section 6222(b) Election

  1. Attach the notice/election document to the return and re-file under the return DLN (Form 1065, U.S. Return of Partnership Income.).

  2. If the DLN information is not provided, return election document to the originator.

  3. If the originator cannot be determined, route to the Accounts Management Function and request DLN determination.

3.5.61.4.12  (01-01-2012)
Form 8875, Taxable REIT Subsidiary Election (OSPC only)

  1. Form 8875 is used by an eligible corporation and Real Estate Investment Trust (REIT) to jointly elect to treat the corporation as a taxable REIT subsidiary under IRC Section 856(1) .

  2. If received, route to the Ogden Submission Processing Campus.

3.5.61.5  (01-01-2012)
Retirement Of Returns And Documents to the Federal Records Centers (FRCs)

  1. This subsection describes the processes for retiring returns and documents to the Federal Records Centers (FRCs).

  2. These instructions include procedures for:

    • Retirement of Files

    • Retired Document File (RETF)

    • Retirement of IRS Records to the Federal Records Centers (FRCs)

    • Requests and Refiles to the FRCs

3.5.61.5.1  (01-01-2012)
Retirement of Files

  1. Submission Processing Campus (SPC) File Functions retire returns and related documents in accordance with IRM 1.15.4, Records Management - Retiring and Requesting Records. File Functions are to follow retention instructions found in IRM 1.15.29, Records Control Schedule for Submission Processing Campus Records. Unless otherwise coordinated with the FRC, File Functions are to comply with the IRS-NARA Memorandum of Understanding (MOU).

  2. Destroy documents received as Re-files if the original block has already been destroyed.

3.5.61.5.2  (01-01-2012)
Retired Document File (RETF)

  1. This computer file contains information indicating whether a return or other document is retained in the SPC or has been retired to the Federal Records Center. This enables the computer to sort IDRS terminal input requests (Forms 4251) into three groups, as follows:

    • FRC retained

    • SPC retained

    • Out-of-SPC

  2. Update the Retired Document File using IDRS Command Code ESTAB, Modifier "R" by close of business on day of shipment. Instructions for inputting CC ESTADR are contained in IRM 2.3.56, IDRS Terminal Responses - Command Code ESTABR.

3.5.61.5.3  (01-01-2012)
Retirement of IRS Records to the FRCs

  1. Transfer records to the FRCs according to these procedures.

  2. Arrange to ship tax returns according to IRM 1.15.29, Records Management - Records Control Schedule for Submissions Processing Campus Records, or other schedules mutually agreed upon by the primary or alternate IRS Campus contact and the appropriate FRC primary or alternate contact. Tax returns/documents shall be shipped per local procedures to the loading dock of the appropriate FRC servicing the IRS Campuses as set forth below:

    IRS Campus Federal Record Centers (FRCs)
    Andover Boston, MA
    Atlanta Atlanta, GA
    Austin Fort Worth, TX
    Brookhaven Dayton (Springboro), OH
    Cincinnati Dayton (Springboro), OH
    Fresno San Bruno, CA
    Kansas City Lenexa, KS
    Memphis Dayton (Kingsridge), OH
    Ogden Lenexa, KS
    Philadelphia Philadelphia, PA

  3. Furnish the FRC with the projected volume of records to be retired by the File Location Code(s) and Tax Class/Document Code. Provide annual estimates followed by exact volumes in advance of each shipment.

  4. Coordinate timeframes for retiring records to the FRC. The timeframes must be agreed upon by the receiving FRC. If an agreement cannot be made, contact the NARA COTR immediately so that a compromise can be reached.

  5. Provide Standard Form -135 (SF-135), Records Transmittal and Receipt, as prescribed by IRM 1.15.29, Records Management - Records Control Schedule for Submissions Processing Campus Records.

    Note:

    Form SF-135 must be approved by the local Area Records Manager prior to being sent to the FRC at least one week before the shipping of records.

  6. Two weeks prior to the retirement, prepare pre-printed shipping labels, with the accession number and individual box number (1, 2, 3, etc.), for each box in the shipment. At that time, affix these labels to the boxes maintaining the numbered order.

  7. Supervise loading of the tax returns to ensure that the boxes are loaded securely, and in reverse numerical sequence so that when the shipments reach the FRC, the first box off loaded will be Box #1 enabling the boxes to be moved directly onto the shelves without being rearranged.

  8. Ensure that all records transferred to the FRC are in strict DLN sequence within the boxes.

  9. At the time of shipment, provide an estimate to the FRC of the number of missing blocks or segments of tax returns that are being withheld from the shipment pending further processing. This will enable the FRC to reserve adequate shelf space for the missing blocks/returns.

3.5.61.5.4  (01-01-2012)
Requests to the Federal Record Centers (FRCs)

  1. This section covers the handling of Requests:

    • Regular

    • Expedite/Priority and

    • Special Search Requests (Form 2275)

3.5.61.5.4.1  (01-01-2012)
Regular Requests

  1. Batch all requests in strict DLN sequence by order of digits including the 14th digit. .

  2. Multiple list years can be sent in the same shipment (oldest list year first.)

  3. Batch each list year separately using a transmittal/batch sheet.

  4. The transmittal/batch sheet must contain the following information:

    • Volume/count

    • List Year


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