3.11.20  Exempt Organization and Employee Plan Applications for Extension of Time to File

Manual Transmittal

November 11, 2014

Purpose

(1) This transmits a revised IRM 3.11.20, Returns and Document Analysis, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns.

Material Changes

(1) Various grammatical, editorial, and link corrections throughout.

(2) IRM 3.11.20.2.14 - Removed (3) and added the information to (2).

(3) IRM 3.11.20.3.4(5) IPU 14U0998 issued 06-12-2014 - Added: edit the received date to match the postmark or shipment date.

(4) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(5) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(6) IRM 3.11.20.5(6) - Added Entity will return to C&E to last then box.

(7) IRM 3.11.20.5(8)(b) - Changed Circle to X.

(8) IRM 3.11.20.5(9) - Added On form version 06-2011.

(9) IRM 3.11.20.5(11) IPU 14U1245 issued 08-13-2014 - Added: Note: For lists indicating Forms 5558 have been sent for each plan number listed, consider the list as classified waste and destroy.

(10) IRM 3.11.20.5.2(4) - Added On form version 06-2011.

(11) IRM 3.11.20.8 to 3.11.20.13.16 - Changed to OUO.

(12) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(13) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(14) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(15) Exhibit 3.11.20-9 IPU 14U0155 issued 01-22-2014 - Added Illinois disaster 4157.

(16) Exhibit 3.11.20-9 IPU 14U0682 issued 04-11-2014 - Added Washington Disaster 4168.

(17) Exhibit 3.11.20-9 IPU 14U0822 issued 05-06-2014 - Added Arkansas, Mississippi and Alabama Disasters 4174, 4175, and 4176.

(18) Exhibit 3.11.20-9 IPU 14U0982 issued 06-10-2014 - Added Florida Disaster 4177.

(19) Exhibit 3.11.20-9 - Removed disasters for 2013.

Effect on Other Documents

IRM 3.11.20 dated December 03, 2013 is superseded. IRM 3.11.20 also incorporates the following IRM Procedural Updates (IPU) - "14U0155, 14U0682, 14U0822, 14U0982, 14U0998, 14U1245, 14U1403, 14U1470" .

Audience

Code & Edit and Error Correction employees in Large Business and International Division (LB&I), Small Business/Self-Employed (SB/SE), Tax Exempt/Government Entities (TE/GE), and Wage & Investment (W&I), and Error Correction employees in LB&I, SB/SE, TE/GE, and W&I.

Effective Date

(01-01-2015)

Maria Hooke,
Director, Business Systems Planning, Tax Exempt and Government Entities

3.11.20.1  (01-01-2015)
Overview

  1. IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns, contains Code and Edit (C&E) and Error Resolution System (ERS) procedures for processing Form 8868, Application for Extension of Time to File an Exempt Organization Return, and Form 5558, Application for Extension of Time to File Certain Employee Plan Returns.

3.11.20.1.1  (01-01-2015)
Purpose and Scope

  1. Included in IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns, are instructions for editing and correcting errors on Forms 8868 and 5558.

  2. Instructions in IRM 3.11.20.2, Document Perfection Procedures, through IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only), are procedures specific to the C&E function.

  3. Instructions in IRM 3.11.20.6, Error Resolution/Reject Procedures - General, through IRM 3.11.20.13 #, Error Codes Form 8868, are procedures specific to the Error Correction and Rejects functions.

3.11.20.1.2  (01-01-2015)
Forms Covered by this Internal Revenue Manual (IRM)

  1. The following Business Master File (BMF) forms are covered by IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns:

    • Form 8868, Application for Extension of Time to File an Exempt Organization Return.

    • Form 5558, Application for Extension of Time to File Certain Employee Plan Returns.

3.11.20.1.3  (01-01-2015)
Taxpayer Advocate Service (TAS)

  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage & Investment (W&I) Division, Small Business & Self-Employed (SB/SE) Division, Tax Exempt & Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals and Large Business and International Division (LB&I) Divisions. This Service Level Agreement (SLA) outlines the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or the delegated authority to complete case transactions rests outside of TAS.

  2. The SLAs are located at tas.web.irs.gov under the heading "Policy/Procedures/Guidance."

3.11.20.1.3.1  (01-01-2015)
TAS is an Independent Organization

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

  2. TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA)). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

3.11.20.1.3.2  (01-01-2015)
Same Day Resolution

  1. A referral to a TAS office is not necessary even if a TAS case criterion is met if an Operating Division or Function can immediately resolve the issue within 24 hours. It is important that all IRS employees handle potential TAS cases with the taxpayer’s best interest in mind. More information on "24 hour" same day resolution can be found in IRM 13.1.7.4, Same Day Resolution by Operations.

  2. If action can be taken within 24 hours to resolve the taxpayer’s issue, however, the taxpayer still requests TAS assistance or is not satisfied with the service provided, refer the taxpayer to the NTA toll-free number, 1-877-777-4778 or TTY/TDD 1-800-829-4059. Refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

3.11.20.1.3.3  (01-01-2015)
Referral to TAS

  1. If the IRS employee receives taxpayer contact that meets TAS criteria, and the employee cannot initiate action to resolve the taxpayer's inquiry or provide the relief requested by the taxpayer, refer the case to TAS. A taxpayer should not have to request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer to support the requested relief, or when required by the IRM.

  2. In preparation for a case being referred to a W&I Division function, TAS is responsible for:

    1. Preparing Form 12412, Operations Assistance Request (OAR);

    2. Securing all necessary supporting documentation;

    3. Forwarding Form 12412 and documentation on Form 3210, Document Transmittal, to the W&I Division Liaison;

    4. Clearly identifying an OAR requiring expedited processing.

  3. W&I Division is responsible for:

    1. Assigning a liaison in each office or campus where a Taxpayer Advocate is located;

    2. Acknowledging receipt of the case via Form 3210 within one workday for expedite processing and within three workdays for non expedite cases;

    3. Reviewing the case for appropriate assignment;

    4. Assigning the case to the appropriate employee within the function;

    5. Providing TAS with the name and telephone number of the W&I employee assigned the case;

    6. Determine a reasonable time frame for case resolution;

    7. Providing TAS with written approval to input an adjustment or issue a manual refund, in accordance with TAS delegated authorities, after a W&I determination has been made;

    8. For cases requiring expedited processing, responding to TAS within three workdays in writing via facsimile or hand delivery of resolution;

    9. Return Form 12412 within three workdays from the date all actions have been completed and transactions input.

  4. For additional information, see IRM 13.1.19, TAS Operations Assistance Request (OAR) Process.

3.11.20.1.3.4  (01-01-2015)
Exceptions to TAS Criteria Cases

  1. The following types of cases should not be referred to TAS:

    • The taxpayer's complaint or inquiry only questions the constitutionality of the tax system.

    • Cases where the focus of the taxpayer's inquiry is solely to employ frivolous tax strategies to avoid or delay filing or paying federal taxes.

3.11.20.1.3.5  (01-01-2015)
CADE 2

  1. The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal to implement a single, modernized programming solution which provides daily processing of taxpayer accounts.

    Note:

    The CADE Master File, as it existed from 2004-2011, will transition from Production and be retired at the end of 201152.

  2. The CADE 2 solution is comprised of several components, to modernize the IRS to daily processing environment with several Transition States.

  3. With CADE 2 there will be changes to campus cycles which will begin with cycle 201201.

  4. The new BMF, EO and EPMF campus cycles are:

    1. Campus Cycle: Thursday - Wednesday.

    2. Master File Processing: Friday-Thursday.

    3. Notice Review Saturday: Monday (8+ days).

  5. BMF, EO and EPMF transaction posting time frames are outlined as follows:

    • Transactions will be viewable using CFOL command codes on Saturday following the weekly Master File processing run on Thursday.

      Note:

      With the acceleration of the Integrated Data Retrieval System (IDRS) weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

  6. Cycle posting dates will reflect a format of YYYYCCDD. YYYY will indicate the year. CC will indicate the posting cycle. For IMF transactions, the following values for DD are defined:

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

    BMF, EO and EPMF cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY will indicate the year. CC will indicate the posting cycle. BMF cycle posting dates in TXMOD will reflect a format of YYYYCCDD. The DD value will be 08.

3.11.20.2  (01-01-2015)
Document Perfection Procedures

  1. IRM 3.11.20.2, Document Perfection Procedures, provides instructions for processing exempt organization and employee plan returns in the IRS Processing Center C&E Function.

3.11.20.2.1  (01-01-2015)
Do Not Math Verify

  1. It is generally not the purpose of Document Perfection to mathematically verify or check the validity of the documents being processed. The computer will normally perform this function if the documents are coded and edited as prescribed in the applicable parts of IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns.

3.11.20.2.2  (01-01-2015)
Letter Requests

  1. A taxpayer wanting an extension of time for filing a return may submit a letter to the submission processing center where the return is to be filed.

  2. If the letter request is for a Non Master File (NMF) form, forward to CSPC NMF Accounting. See IRM 3.11.20.2.3, Transshipping Extensions, for the list of NMF forms.

  3. The submission processing center may process the letter application in one of two ways. They may input the extension information as a TC 460 directly into IDRS , or they may prepare a "dummy" IRS extension form from the information in the letter and input it as a paper extension form to the system.

    1. Follow normal approval/denial criteria. All information required by a form is also required if the request is made via a letter.

    2. Correspond with the taxpayer indicating the status of the application and the correct form to use in the future, unless instructed otherwise in the specific application form instructions.

3.11.20.2.3  (01-01-2015)
Transshipping Extensions

  1. BMF extensions must be transshipped if received in an IMF site, and IMF extensions must be transshipped if received in a BMF site. See the Transshipping Page on the link on the Submission Processing Web Site http://win.web.irs.gov/SP/Programs_Information/Transshipping.htm

  2. It is not usually necessary for extension requests to be processed in the same submission processing center where the return will be processed, but a few requests must be transshipped to the appropriate campus for processing. Unless specified in the following paragraphs, the extension request should be processed in the receiving center.

  3. All NMF extension requests must be transshipped to CSPC:

    • Form 8868 for Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Person.

    • Form 6069, Return of Excise Tax on Excessive Contributions of Black Lung Benefit Trust.

    • Form 4720, Return Code 03.

  4. Forms 5558 and 8868 must be transshipped to Ogden Submission Processing Center (OSPC).

    Note:

    Form 8868 for Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, (Return Code "12" ) is routed to OSPC Exempt Organizations Compliance Area (EOCA) Mail Stop 1112.

  5. These instructions are condensed in the following table:

    Form Number Route to
    8868 for 990-BL, 6069, and 4720 with Return Code 03 CSPC
    8868

    Exception:

    8868 for 990-BL, 6069 and 4720 with Return Code 03 (see above)




    OSPC
    5558
     
    8868 for Form 8870 OSPC - EOCA Mail Stop 1112  
  6. When transshipping extensions to another campus, do not send Letter 86-C, Referring Taxpayer Inquiry/Forms to Another Office. Extensions are exempted from P 21-3, which requires the Letter 86-C.

3.11.20.2.4  (01-01-2015)
Six Month Extension Limit

  1. Under normal circumstances, an extension of time to file can legally be granted for no longer than a total of six months (including first and second extension requests for Form 8868) from the due date of the return. IRC 6081(a) and Treas. Reg. 1.6081-1 (a) state that an extension of time to file generally "shall not be granted for more than 6 months" from the due date of the return required to be filed.

  2. OSPC may grant an extension longer than six months for business taxpayers. These requests must be processed through IDRS using command code REQ77. "60" must be entered in the ULC field on line 9 of the FRM77 screen. For input instructions, see IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A.

3.11.20.2.5  (01-01-2015)
Reconsiderations/Amendments/Correspondence From the Taxpayer

  1. All taxpayer correspondence is governed by the guidelines in Document 11426, IRS Correspondence Manual.

  2. If the taxpayer correspondence is requesting an extension of time to file, see IRM 3.11.20.2.2, Letter Requests.

  3. If an extension request is sent back to IRS for reconsideration or if the correspondence is requesting a reconsideration of a previously denied extension request, route to Accounts Management.

    If Then
    The taxpayer indicates the extension attached to correspondence is a copy, or the attached extension is for a prior year's tax return, Route the entire submission to Accounts Management.
    Taxpayer does not indicate the extension attached to correspondence is a copy, and the extension is for the current year's return, Detach the correspondence, route it to Accounts Management, and process the extension request.
  4. If a taxpayer files an amended application for whatever reason, route to Accounts Management.

3.11.20.2.6  (01-01-2015)
Determination of Timely Filing - General

  1. C&E must use extreme care in determining when the extension request was filed because timely filing is an important requirement for approving the extension request. Erroneously denied extensions affect both the taxpayer and the Service by resulting in erroneous notices, increased calls to Customer Service lines, and increased volume of reconsiderations.

  2. All extensions with a timely postmark date are considered timely filed, no matter when they are received.

  3. The received date is the date the extension request was delivered to the IRS. It is not necessary to review the postmark date if the extension has a timely received date.

    • All BMF extensions will be stamped with an IRS received date..

      Exception:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Example:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. For all extension requests with a late received date, C&E must review the extension form for indications the extension may have a later due date.

  5. If the taxpayer is affected by an officially declared disaster that allows for a postponement of the normal due date, the extension request must be postmarked on or before the date the disaster period ends to be treated as a timely filed extension, Exhibit 3.11.20-9, Disaster Extension Due Dates - Alphabetical by State.

    Note:

    An alert will be issued whenever there is a delayed due date because of a declared disaster.

  6. For all extension requests with a late received date, C&E must review for a timely postmark date.

    1. The postmark date is the date the United States Postal Service (USPS) or other designated delivery service has stamped on the envelope to indicate the date the item was mailed.

    2. Receipt and Control will attach the envelope to any extension with a late received date. If more than one extension request was included in an envelope, the postmark date will be stamped on each additional extension.

    3. IRC 7502 contains the "timely mailing treated as timely filing/paying" rule. This rule says that any document or payment is considered timely filed even if it is received after the due date if the postmark date is on or before the due date.

    4. If the request has a postmark date on or before the due date, the extension is timely filed.

      Caution:

      When the due date falls on a weekend or holiday, the extension request is considered timely filed if it is postmarked by the next day that is not a weekend or holiday.

    5. Consider any postmark when making this determination.

    6. An extension with a timely foreign postmark will be considered timely filed based on Rev. Rul. 2002-23, 2002-1.

  7. Exception for weekends and holidays - if the due date falls on a Saturday, Sunday, or legal holiday, the legal due date does not change, but the extension request will be considered timely filed if it is postmarked by the next day that is not a weekend or holiday. For example, if the due date is April 15, and April 15 is a Saturday, the extension would be timely filed if postmarked by April 17 (the following Monday).

  8. The due date of the extension request is the Return Due Date (RDD) of the type of return the request covers for the taxpayer's tax year ending. The tax year ending is the Tax Period of the extension.

    • Form 5558 - See IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only), for specific instructions.

    • Form 8868 - See IRM 3.11.20.4, Form 8868 Document Perfection Procedures (OSPC Only), for specific instructions.

  9. If you determine the extension request is late based on examination of the received date and postmark date, there is no reasonable cause for late filing of extensions attached, the extension will not be approved.

    Note:

    Any IRS Commissioner may extend the due date for filing returns for broad classes of groups or taxpayers, but only in cases of natural disaster, catastrophe or other extraordinary situations as stated in Policy Statement P 2 67.

3.11.20.2.7  (01-01-2015)
Error Resolution System Coding (ERS)

  1. Forms 8868 and Forms 5558 are processed on the ERS.

  2. Action Codes may be assigned by C&E for ERS returns. They will be transcribed into the record and will be used to suspend the case for correspondence and for routing within the campus. Descriptions for each Action Code are generally sufficient with no further explanation except for "Other Research" when a note of explanation concerning the missing information must be attached to the return.

  3. Action Codes may also be generated by the Modernized e-File (MeF) system. Process the MeF extensions using the same procedures used for paper extensions in IRM 3.11.20.7.4,Action Codes.

  4. The presence of a valid Action Code will place the record in the Rejects Suspense Inventory, either Workable or Unworkable.

  5. If the Action Code assigned by Document Perfection is invalid or incomplete, the record will be assigned to the Error Inventory for correction or deletion of the code. Only one Action Code may be assigned at one time to a record. The priority of the Action Codes will be 310, 4xx, 6xx, 3xx, 2xx.

3.11.20.2.8  (01-01-2015)
Error Resolution System Action Codes

  1. Below is a complete list of ERS Action Codes, showing which codes are valid for Error Resolution, and which codes are not. The suspense period should be used for controlling Suspense documents, not for determining which code to assign.

    Action Codes Description Suspense Period Function Used In
    001 Input Document 0 EC
    211 First Correspondence 40 CE, EC, S
    213 Correspondence to other 40 CE, EC, S
    215 International Correspondence 45 CE, EC, S
    220 Correspondence Input 21 CE, EC, S
    225 Signature Only-Domestic 40 CE, EC, S
    226 Signature Only-International 45 CE, EC, S
    310 Statute Control 10 CE, EC, S
    320 Entity Control 10 CE, EC, S
    331 Frivolous Filer Review 3 CE, EC
    332 QRDT Review 3 CE, EC
    333 Prompt Audit 10 CE, EC, S
    334 Joint Committee 10 CE, EC, S
    335 Frivolous Filer Case 10 CE, EC, S
    343 Other Accounting 10 CE, EC, S
    351 TIN Research 0 EC, S
    352 Name Research 3 CE, EC, S
    353 Address Research 3 CE, EC, S
    354 Filing Requirement Research 3 CE, EC, S
    355 Other MFTRA Research 5 CE, EC, S
    360 Other In-House Research 10 CE, EC, S
    410 Technical Assistance 0 EC
    420 Management Suspense—A 5 CE, EC, S
    430 Management Suspense—B 10 CE, EC, S
    440 Management Suspense—C 15 CE, EC, S
    450 Management Suspense—D 20 CE, EC, S
    460 Management Suspense—E 25 CE, EC, S
    480 Early Filed 150 CE, EC, S
    490 System Problem 5 EC, S
    510 Missing Document 0 CE
    511 Missing Document 1st Suspense 25 EC, S
    512 Missing Document 2nd Suspense 20 S
    513 Missing Document 3rd Suspense 20 S
    515 Missing Document Short Term 5 EC, S
    550 Mag Tape Attachments 3 CE
    551 Mag Tape Inconsistent Data 3 CE
    610 Renumber 0 CE, EC
    611 Renumber with-remit 0 CE, EC
    620 NMF/Non-ADP 0 CE, EC
    630 Reinput 0 EC
    640 Void 0 CE, EC
    650 International 0 CE, EC
    651 International-AUSPC 0 CE, EC
    660 Data Control Delete (TEP Delete) 0 CE, EC, GEN
    670 Rejected Missing Documents 0 EC, S
    700 Duplicate Block DLN 0 GEN
    711 Duplicate Document DLN from CE NA GEN
    712 Duplicate Document DLN from Error NA GEN
    713 Duplicate Document DLN from Unpostables NA GEN
    714 Duplicate Document DLN from Unworkable Suspense NA GEN
    715 Duplicate Document DLN from Workable Suspense NA GEN
    900 Unpostable Record 0 GEN

3.11.20.2.9  (01-01-2015)
Undeliverables

  1. When approval/denial notification or correspondence is returned to the Service due to a wrong or erroneous address, and there is another address included on the returned documents, re-send the correspondence to that address.

    Note:

    Do not research undeliverable CP 211A, Application for Extension of Time to File an Exempt Organization Return - approved, and CP 216F, Application for Extension of Time to File an Employee Plan Return Approved, give to your manager for proper preparation of documents to be destroyed.

  2. If no better address is included in the correspondence returned to the Service, research IDRS for a better address. See IRM 3.11.20.2.15, Research Command Codes.

    If research Then
    Indicates a better address, Re-send the letter to that address.
    Does not indicate a better address or if the "resent" letter comes back again, Give to your manager for proper preparation of documents to be destroyed.
  3. Do not input address changes based on address changes on the extension. The taxpayer is instructed to file Form 8822, Change of Address. If the taxpayer has attached a Form 8822, detach and forward to the Entity function.

3.11.20.2.10  (01-01-2015)
Erroneous & Unidentified Documents

  1. If an original tax return is attached to an extension request, with no explanation, and both documents are for the same taxpayer, Master File Tax (MFT) Code and tax period, leave the extension attached to the back of the tax return and batch the tax return for processing.

  2. If a schedule or other form that is normally attached to a tax return is received and it is stapled to the extension request, leave it attached to the back of the extension and continue processing.

  3. Form 9465, Installment Agreement Request, is attached to the extension document, refer to IRM 3.11.20.2.12, Installment Agreement.

  4. If additional information is needed (such as whether a first extension was filed, or an explanation for the delay), research and/or correspond with the taxpayer unless instructions for a specific extension form specify otherwise. See IRM 3.11.20.2.16, Correspondence, for correspondence instructions.

  5. If correspondence is necessary, allow 10 workdays for a response:

    1. When a reply is received, process the extension.

    2. If no reply is received after 10 workdays, process the extension as denied.

    Note:

    If the Taxpayer Identification Number (TIN) and taxpayer's name are missing or illegible so that the extension cannot be processed, nor correspondence issued, give it to your supervisor for preparation to be destroyed.

3.11.20.2.11  (01-01-2015)
Erroneously Detached Copies of Extension Forms

  1. If the extension form appears to be a copy that may have been detached from the taxpayer's return in error and it is more than one month delinquent, examine the extension form for any of the following:

    1. The word "copy" or "photocopy" ;

    2. No received date; or

    3. Signature is not original ink/stamp.

  2. If any of the above indications are present, research for TC 460 posted to the account for the same MFT and Tax Period as the extension. If research indicates a TC 460 is present, pull from batch and give to your supervisor for proper preparation of documents to be destroyed.

  3. If no TC 460 indicated, process as an original request per instructions outlined in IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns.

3.11.20.2.12  (01-01-2015)
Installment Agreement

  1. If a Form 9465, or letter requesting an installment agreement is attached to an extension, route the Form 9465 or letter to Collections. Note on the transmittal the extension form that was attached to Form 9465. Before routing the Form 9465 to Collections, verify that the taxpayer(s) name, Social Security Number (SSN), form number and tax period are on both the installment agreement and the extension. Continue processing the extension request according to established procedures.

3.11.20.2.13  (01-01-2015)
Access to IDRS

  1. When using IDRS, only access those accounts required to accomplish your official duties. Any unauthorized accesses or browsing of tax accounts by employees to satisfy personal curiosity or for fraudulent reasons are prohibited by IRS and are subject to disciplinary actions.

3.11.20.2.14  (01-01-2015)
Notification to Taxpayer

  1. Notification of disapproved extension requests must be returned to the taxpayer within 10 days of the day the extension is disapproved.

  2. On BMF Form 5558 (MFT 76), all Forms 8868, and on EPMF Form 5558 (MFT 74) a notice is automatically generated to the taxpayer based on the edited Notice Code when the extension transaction posts.

3.11.20.2.15  (01-01-2015)
Research Command Codes

  1. Command Code INOLE definer S (INOLES) with the taxpayer's Employer Identification Number (EIN) or SSN is used to find the following information:

    • Taxpayer's name and address

    • Taxpayer's name control

    • Filing requirements (for BMF and EPMF taxpayers)

    • Fiscal Year Month (FYM) - this is the month the taxpayer's tax year ends.

      Example:

      If the taxpayer's FYM is 12, his tax year ends in December.

    • See IRM 2.3.47, Command Codes INOLE, EOGEN and SPARQ, for more information on the use of this command code.

  2. Command code BMFOL definer I (BMFOLI) with the taxpayer's EIN or SSN (the SSN must be followed by a "V" ) is used to find the following information for a BMF taxpayer:

    • Taxpayer's name control

    • Taxpayer's filing history. BMFOLI will list the tax periods on the master file and whether a return has posted to the tax period. A "Y" under RET PST column indicates that a return (TC 150) has posted to that module.

      Note:

      Definer T may be used to display information from a specific Tax Period.

    • See IRM 2.3.59, Command Codes BMFOL and BMFOLR, for more information on the use of this command code.

  3. Command Code ENMOD with the taxpayer's EIN or SSN is used to find the following information:

    • Taxpayer's name control

    • Pending entity transactions such as TC000 which establishes the taxpayer's account, name changes (TC013) which may change the name control, or transactions that may change the taxpayer's tax year (such as TC053).

    • See IRM 2.3.15, Command Code ENMOD, for more information on the use of this command code.

  4. Command Codes NAMEE and NAMES, NAMEI and NAMEB, FINDS and FINDE.

    • Research for a taxpayer's EIN or SSN on the BMF or EPMF using the taxpayer's name (and address information if known) .

    • Research for a taxpayer's SSN on the IMF by entering the taxpayer's name (and address information if known) .

    • The most efficient search uses the taxpayer's name and ZIP Code.

      Note:

      If researching for an SSN and the taxpayer is using a foreign address, enter the fully spelled country name or a double asterisk (**) in the country field of CC NAMES to access the International Account Profile.

    • Command Code NAMEI is used to research for the taxpayer's SSN.

    • Command Code NAMEB is used to research for the taxpayer's EIN or SSN for a BMF entity.

    • Command Codes FINDS (SSN) and FINDE (EIN) are used to find a name and address for a TIN.

    • See IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE and TPIIP, for more information on the use of these command codes.

3.11.20.2.16  (01-01-2015)
Correspondence

  1. Following are letters to use when corresponding with the taxpayer. It is up to the employee to determine the letter best suited to the particular situation and to choose the appropriate paragraphs:

    1. Letter 3699-C, Extension of Time to File (BMF) - this letter is used for correspondence on BMF extensions of time to file. It may be used to request additional information, to notify the taxpayer of the correct extended due date, to notify the taxpayer of the correct extension form to use, or to notify the taxpayer that the extension is disapproved.

    2. Letter 296-C, Extension of Time to File (IMF/BMF) Incomplete for Processing - this letter is used to request additional information for both IMF and BMF extensions.

    3. Letter 297-C, Extension of Time to File (IMF/BMF); Denial Explained - the letter is used to notify the taxpayer that the extension request was disapproved.

    4. Letter 333-C, Extension of Time to File (IMF/BMF) Approved - this letter is used to request information and to notify the taxpayer of the extended due date for both IMF and BMF extensions.

  2. When using one of these letters, prepare Form 3696, Correspondence Action Sheet, or other local use correspondence action sheet.

    1. Enter the taxpayer's name, address, and TIN.

      Exception:

      If the extension indicates that the taxpayer wants notification or correspondence to be sent to a name and/or address other than the taxpayer's, enter that name and address on the correspondence action sheet.

    2. Enter the number of the letter to be used and list the appropriate paragraphs and fill-ins for the letter.

    3. Note on the extension form the letter that was sent. For example, "3699-C letter sent" .

    4. Reject the extension document by entering Action Code 211 in the bottom left corner of the form and leave the form in the batch.

  3. Form 6513, Extension of Time to File, may be used when appropriate in place of a correspondex letter. It is not necessary to reject the document when this form is used.

    1. When notifying the taxpayer that the extension request is approved, always check the first box on Form 6513.

    2. When notifying the taxpayer that the extension request is not approved, always check the second box on Form 6513. Also check the appropriate box to indicate the reason for disapproval.

    3. To use Form 6513, you must either photocopy the extension request or attach a label with the name and address to which the form will be mailed. It is the option of the campus to decide how this is done.

  4. Form 6401, Request for Missing Information, may also be used in place of a correspondex letter when appropriate. It is not necessary to reject the document when this form is used. Enter the current date in the Date block at the top of the form.

3.11.20.2.17  (01-01-2015)
Acceptable Signature

  1. A signature is required on Form 5558 extension for Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, and Form 8868 (Part II).

  2. A signature can consist of either an original signature (including printed signature), rubber stamped, mechanical device or signed by a software program.

  3. Tax examiners are not expected to be handwriting experts. Treas. Reg. 301.6064-1 allows us to presume that the signature is the true signature of the person whose name it appears to be.

3.11.20.3  (01-01-2015)
Document Perfection - General

  1. IRM 3.11.20.3, Document Perfection - General, contains general Document Perfection information for processing extension requests.

  2. These general instructions should be followed for processing of all extension requests unless the procedures for a specific form contain differing instructions. In that case, the specific instructions take precedence.

3.11.20.3.1  (01-01-2015)
Name Control

  1. Underline the Name Control of the taxpayer. The ampersand (&) and hyphen (-) are the only special characters allowed in the Name Control.

  2. If the name is not present on the name line but can be determined from elsewhere on the extension or on attachments, edit the name control to the name line. If it cannot be determined:

    • On a numbered request, take no action;

    • On an unnumbered request, research for the taxpayer's name using the TIN.

  3. If name and address and TIN are all missing, consider the document unprocessable. Give to your manager for preparation for destruction.

  4. For Forms 5558 filed for Forms 5500 (MFT 74), always perfect the name control by underlining or editing the first four characters of the name Part 1 Section A as follows:

    Note:

    The Name Control for these returns must ALWAYS be the first four characters of the name of the plan that is listed in Part 1 Section A of Form 5558; see IRM 3.11.20.3.1(4) and IRM 3.11.20.3.1(5) below.

    1. If the plan belongs to an individual, use the first four characters of the individual's first name.

      Note:

      IRS will accept the primary name line information received as long as there is no impact to the filer and will name control the first four characters. Do not change the EPMF primary name line based on BMF name line rules. The posting will be considered filer's intent.

    2. If the plan belongs to a partnership, LLC or corporation, use the first four characters of the partnership, LLC or corporation name.

    3. If the plan belongs to a Trust or 401K, use the first four characters of the Trust or 401K.

    4. Disregard the word "The" in the Name control only when more than one word follows. Example: The Flamingo Tree, Name Control: FLAM.

    5. Include the word "The" when it is only followed by one word. Example: Name: The Hawk, Name Control: THEH.

    6. Employee Plans specific name control examples to be used are:

    1. Jim Snow Profit Sharing Plan - Edit JIMS

    2. Retirement Plan for A Tree Inc - Edit RETI

    3. Jane Doe Trust - Edit JANE

    4. John Doe 401K Plan - Edit JOHN

  5. If unable to determine the name control by following the instructions above, route to entity.

  6. For Form 8868:

    • The Name Control consists of four alpha and/or numeric characters.

    • The Name Control can have less than, but no more than, four characters.

    • Blanks may only be present at the end of a Name Control (i.e., no character may follow a blank).

  7. The Name Control for an estate (indicated by "Estate" or "Est." in the name line) is the first four characters of the last name of the decedent.

    Example:

    Estate of Fred Maple - name control MAPL. Janice Elm Est.- name control ELM

  8. The Name Control for a trust is edited according to the following priority:

    • Individuals - the first four characters of an individual's last name. Michael I. Azal ea Trust.

    • Businesses - the first four characters of the business name if the name of the trust is a business instead of an individual. Maple Corporation Employee Benefit Trust.

    • GNMA Pools - the first four digits of the trust number, disregarding any leading zeroes and/or trailing alphas. If there are fewer than four numbers, use the letters GNMA to complete the name control.

      Example:

      0000941 GNMA Pool-Name Control 941G, GNMA Pool No. 00100A - Name Control 100G.

    • For Forms 1041-A and Forms 5227, Return Codes 08 or 10, trust name control rules apply even if "Fund" or "Foundation" is in the organization's name.

  9. See IRM 3.11.12, Exempt Organization Returns, for more examples.

3.11.20.3.2  (01-01-2015)
Taxpayer Identification Number (TIN)

  1. Follow these instructions unless specific instructions for the form instruct otherwise.

  2. If illegible, other than nine digits, or missing, check attachments.

    If TIN is not found or there are multiple TINs and extension is Then
    Numbered Take no action.
    Unnumbered
    • Send to Entity for assignment of EIN.

3.11.20.3.3  (01-01-2015)
Tax Period

  1. The Tax Period is four digits (YYMM) indicating the year and month in which the taxpayer's tax year ends (e.g., if the tax year ending is September 30, 2014, edit Tax Period 1409). The Integrated Submission and Remittance Processing (ISRP) program will generate the rest of the year (20) when the extension document is input through Data Conversion.

  2. Edit the Tax Period in YYMM format in the upper right portion of the form unless otherwise indicated in specific instructions for the form.

    Exception:

    It is not necessary to edit the Tax Period if the taxpayer's year end is the current calendar year (1412).

  3. Determine the Tax Period from:

    1. The taxpayer's entry on Line 1 check box, Part I or line 5 Part II of the Form 8868

      Exception:

      On extensions for Forms 1041-A and 5227, the Tax Period is always calendar year (no editing is necessary).

    2. The taxpayer's entry on Section C plan year ending block of Form 5558.

    Note:

    If it appears that the taxpayer has erroneously entered a prior year as the year on a calendar year extension, because all other items that are present (received date, postmark date, DLN Julian date, signature date) on the extension indicate that the extension is for the current calendar year, assume the extension is for the current calendar year, so no tax period editing is necessary.

  4. The tax period should end on the last day of a month and must be for 12 months or less, except as otherwise specified below (ignore a minor discrepancy such as October 30 instead of October 31). If the ending date is other than as specified, then follow procedures outlined in 3.11.20.3.3(10), (11), and (12) below.

  5. A calendar year is 12 months that ends in December (Tax Period 1412-not necessary to edit).

  6. A fiscal year is 12 months that ends in any month other than December (edited Tax Period could be 1401 through 1411).

  7. 52-53-Week Rule—Tax periods reported under the 52-53-Week Rule end on a particular day of the week that is nearest to the last day of that month. This tax period may end not more than six days before, and not more than three days after, the end of a month.

    1. When editing these tax periods, use the numeric designation of the month, the last day of which is closest to the actual ending date.

      Example:

      If the ending date is October 3, use the numeric designation for September (1409). If the ending date is October 25, use the numeric designation for October (1410).

    2. If the tax period is for more than 12 months or 53 weeks, follow procedures in IRM 3.11.20.3.3(11), (12) and (13) below.

  8. Short tax year - This is a tax year shorter than 12 months.

  9. If the taxpayer indicates that a final, short period tax return ("Final return" box is checked and a short year is indicated) will be filed, the tax year ends on the date the taxpayer went out of business. This may be any day of the month.

    1. Edit the short tax period, as indicated by the taxpayer, in YYMM format.

    2. If the date the taxpayer went out of business cannot be determined, use the calendar month that precedes the received date.

      Exception:

      Extensions for Form 1041-A, U.S. Information Return Trust Accumulation of Charitable Amounts, and Form 5227, Split-Interest Trust Information Return, are always calendar year.

  10. If the taxpayer indicates that an initial short period return will be filed, edit the short period as indicated by the taxpayer, in YYMM format.

  11. The following examples are of the Tax Period Format:

    Tax Period Ends Numeric Designation
    Dec. 31, 2014 1412 (do not edit)
    Nov. 30, 2014 1411
    Feb. 28, 2015 1502
    Oct. 3, 2014 (52-53 week document) 1409
    Oct. 3, 2014 ( Final Short period) 1410
    Oct. 25, 2014 (52-53 week document) 1410
    Oct. 25, 2014 ( Final Short period) 1410
  12. If the Tax Period is missing, illegible, invalid, or is longer than one year, assume the Tax Period to be the current calendar year if it makes the form timely.

  13. If the tax period is missing, illegible, invalid, or is longer than one year, and the extension is not timely filed for the current calendar year:

    1. Request research to determine correct fiscal year month (FYM).

    2. If FYM is determined, edit the correct tax period on the extension form. If this causes the form to be untimely, follow normal denial procedures for that form.

    3. If the Tax Period cannot be determined through IDRS research, correspond with the taxpayer. See IRM 3.11.20.2.16, Correspondence. The application need not be sent back to the taxpayer.

  14. Replies to tax period correspondence—edit the Tax Period indicated by the taxpayer and continue processing.

  15. No replies to tax period correspondence—follow local procedures to destroy the document.

3.11.20.3.4  (01-01-2015)
Received Date

  1. Every extension request form received by the IRS should be stamped or edited in MMDDYY format on the front of the first page by the receiving area (usually Receipt and Control) with a date indicating when it was received.

  2. The Received Date is used to determine if the extension request was timely filed.

  3. If more than one Received Date is stamped on the form, circle all but the earliest Received Date.

  4. Circle the Received Date entered on the form if it does not contain "IRS" or "Internal Revenue" . It is not a valid received date.

  5. If the received date makes the extension delinquent, and the postmark date is timely, circle the received date and edit the received date to agree with the postmark or shipment date. See IRM 3.11.20.2.6, Determination of Timely Filing - General.

    Note:

    A timely foreign postmark also makes the extension timely.

  6. If the date stamping area has failed to date stamp the form or the date is illegible, and an Area Office date stamp is not present, determine and enter the Received Date in MMDDYY format in the center of the form. Determine the Received Date using the following priority:

    1. Legible USPS postmark date, private meter postmark, or date from a designated private delivery service.

    2. Revenue Officer's signature date.

    3. Service Center Automated Mail Processing System (SCAMPS) Date - the IRS SCAMPS machine date generated on the envelope.

    4. Signature date.

    5. DLN control (Julian) date minus 10 days.

    6. Current date minus 10 days.

  7. If the extension request was addressed and mailed to a state agency by the taxpayer, accept only the IRS received date on the return. If the extension request was addressed to the IRS by the taxpayer, but was incorrectly delivered to a state agency, use the postmark on the envelope as the received date.

  8. If a Form 5558 is received from EBSA/DOL/Other Government Agencies that deals with the Form 5500, IRS will accept the filing.

    1. If the Form 5558 is timely filed based on the postmark date, approve the extension.

    2. If the Form 5558 is not timely filed based on the postmark date, deny the extension.

    3. If other non-Governmental organization such as the gas company, phone company, etc. is received and is not timely filed, deny the extension.

3.11.20.3.5  (01-01-2015)
Computer Condition Codes

  1. A Computer Condition Code (CCC) may be used on Form 8868.

  2. The only valid code for Form 8868 is W edited in the top middle margin.

    CODE FORMS USAGE
    W 8868 Edit if form covers a short tax period. This bypasses the ERS check on tax period mismatches.
  3. A CCC is not edited on Form 5558.

3.11.20.3.6  (01-01-2015)
Extended Due Dates

  1. The Extended Due Date is the date the extension period ends. It is only edited on Form 5558 extensions for Form 5500 series or Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits.

  2. On approved Forms 5558 extensions for Form 5330 and all Forms 8868, the extended due date is generated by the master file when the extension transaction posts.

    1. On approved Forms 8868, the extended due date is generated as return due date plus three months or as return due date plus 6 months when Notice Code 3 is edited (six months for Form 990-T, Exempt Organization Business Income Tax Return, corporations) when Notice Code 1 is edited.

    2. On approved Forms 5558 for Form 5330, the extended due date is generated as return due date plus six months when Notice Code 1 is edited.

    3. On approved Forms 5558 for Form 5500 series, the extended due date is generated as return due date plus 2 1/1 months when Notice Code 1 is edited.

3.11.20.4  (01-01-2015)
Form 8868 Document Perfection Procedures (OSPC Only)

  1. IRM 3.11.20.4, Form 8868 Document Perfection Procedures (OSPC Only), contains instructions for Forms 8868.

3.11.20.4.1  (01-01-2015)
General Information

  1. Form 8868 filer enters a two-digit Return Code indicating the return to be extended. C&E will no longer edit the Return Code unless it has not been entered by the filer or is illegible.

    Caution:

    A Return Code must be present. The MFT Code and extended return due date are generated based on the Return Code (Edited below the name and address section on prior versions).

  2. Form 8868 is filed to request an extension for Forms 990, 990-BL, 990-EZ, 990-PF, 990-T (corporation), 990-T (Sec. 401(a) or 408(a) trust), 990-T (other trust), 1041-A, 4720, 5227, 6069, and 8870.

    Note:

    If Form 8868 is received for Form 8870 (Return Code "12" ), forward to Ogden EOCA Mail Stop 1112.

  3. Page 1 of Form 8868 is used to request an automatic three month extension for all forms except 990-T (corporation), or an automatic 6-month extension for Form 990-T (corporation).

  4. Page 2 of Form 8868 is used to request an additional three month extension for all returns except Form 990-T (corporation).

  5. Form 8868 filed for Forms 990-BL, 6069 and 4720 with Return Code 03, must be processed to NMF in CSPC. Transship if filed at another campus.

  6. Extensions on Form 8868 may not be granted for more than six months.

  7. If duplicate Forms 8868 are received (same EIN, name, type of return, and tax period), do not process separately. Cross out ("X" ) the duplicate and attach to the back of the original.

    Exception:

    It is not necessary to "X" Part II if the extension is for Part I and Part II only contains a signature.

  8. If the filer attached a Form SS-4, Application for Employer Identification Number, to the Form 8868, route both forms to Entity to have an EIN assigned before determining approval or denial.

3.11.20.4.2  (01-01-2015)
Document Perfection

  1. Perfect only Part I or Part II of Form 8868 as follows: (See Exhibit 3.11.20-11, Form 8868 T-Lines, Page 1, and Exhibit 3.11.20-12, Form 8868 T-Lines, Page 2, for T-Lines)

    ≡ ≡ ≡ ≡ ≡ ≡
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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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  2. As a general rule, the taxpayer may receive a three-month extension for a timely filed Part I, Form 8868. Second and subsequent extensions (Part II, Form 8868) are granted only if approval criteria have been met. See IRM 3.11.20.4.7, Form 8868, Part II - Approval Criteria.

    Exception:

    Extensions for Form 990-T (corporation) filed on Part I, Form 8868, are automatically granted for the full six months.

  3. If Form 8868 is filed for a form other than those listed in IRM 3.11.20.4.1(2) above, take the following action:

    Exception:

    If there is an indication Form 8868 is being filed to extend Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required to file Form 990 or Form 990-EZ, treat the extension as though it were for a Form 990 and Edit Return Code "01" per 3.11.20.4.2(5) below.

    If the request is Then
    Unnumbered Remove from the batch and follow local procedures to ensure the return is re-batched correctly.
    Numbered Edit ERS Action Code "610" to Reject and attach Form 4227, Intra-SC Reject or Routing Slip, to Form 8868. Note" renumber" on Form 4227.
  4. Perfect the Name Control, EIN, Tax Period, and Received Date as outlined in IRM 3.11.20.3Document Perfection - General.

  5. Perfect the two-digit Return Code entered in the boxes below the name and address section only if blank or illegible.

  6. If the taxpayer indicates the Form 8868 is for the "45R Credit Only" and the Return Code is blank, enter 07 in the Return Code Box, otherwise DO NOT change the return code.

  7. If you are unable to determine the return code, research for the organization's filing requirement and enter the Return Code that corresponds to the filing requirement as follows:

    Organization's Filing Requirement Form 8868 Return Code Organization's Filing Requirement Form 8868 Return Code
    Form 990/Form 990–EZ 01 Form 990-T (corporation) 07

    Note:

    Not valid for Part II process, research for TC 460 posted to the account for the same MFT and Tax Period as the extension. If no TC 460 indicated, process following Part I procedures. See IRM 3.11.20.4.3,Form 8868, Part I - Approval Criteria, through IRM 3.11.20.4.6, Part I - Disapproval Actions. If research indicates a TC 460 is present, return Form 8868 to the filer using letter 3699C stating they have already filed an extension and do not need to file a Form 8868 Part II for a Form 990-T Corporation.

    Form 990-BL 02 Form 1041-A 08
    Form 4720 (Individual) 03 Form 4720 (Corporation) 09
    Form 990-PF 04 Form 5227 10
    Form 990-T (sec. 401(a) or 408(a) trust 05 Form 6069 11
    Form 990-T (trust other than above) 06 Form 8870 12*

    Reminder:

    *If return code is 12, send to OSPC, EOCA M/S 1112.

    Note:

    A Return Code

    MUST be present. The MFT Code and extended return due date are generated based on the Return Code. Always convert prior year return revisions using the current year T-Lines; see Exhibit 3.11.20-10, Prior Year MFT/Return Code Conversion Chart.

  8. If the taxpayer has indicated multiple return types, and research shows only one filing requirement, enter the Return Code that corresponds to the filing requirement.

  9. If the taxpayer has indicated multiple form types, and research shows they have matching multiple filing requirements, a "dummy" extension must be prepared for each return code.

    1. Photocopy the Form 8868.

    2. Edit one return code per copy.

    3. Make additional photocopies if necessary, so there is a separate Form 8868 for each return code.

  10. If, after research, you are unable to determine the organization's filing requirement, route to Entity. Entity will determine the return code and forward to C&E to continue processing.

  11. Extension requests for Forms 6069, 990-BL, and 4720 with Return Code 03, must be processed to NMF in CSPC.

    1. Follow normal approval/denial procedures.

    2. Extensions for Forms 6069 and 990-BL are due on or before the 15th day of the fifth month after the end of the Tax Period (05/15/2015 for Tax Period 201412).

    3. A copy of the approved or denied extension should be mailed to the taxpayer.

    4. The IRS original should be forwarded to NMF Accounting.

  12. If the extension request is for a Form 990, or if one of the following conditions is met, you may also need to edit a Group Code. See IRM 3.11.20.4.2.1, Group Return/IRA Trusts.

    • A GEN is present.

    • The "whole group" box is checked.

    • The "part of the group" box is checked.

    • A list of subordinates is attached.

    • "Group Return" is indicated on the extension.

  13. If the extension request is for a Form 990-T (sec. 401(a) or 408(a) trust), the extension may be for an Individual Retirement Account (IRA) trust. See IRM 3.11.20.4.2.1., Group Return/IRA Trusts.

3.11.20.4.2.1  (01-01-2015)
Group Return/IRA Trusts

  1. Form 8868 is considered a group return if any of the following apply:

    1. A GEN is present.

    2. The "whole group" box is checked.

    3. The "part of the group" box is checked.

    4. A list of subordinates is attached.

    5. "Group Return" is indicated on the extension.

    Note:

    A group return can only be filed on Form 990. If other than the Form 990 box is checked, and any of a) through e) above apply, research for the organization's filing requirements. If the filing requirement is other than "03" , do not consider the extension as a group return and do not edit a Group Code or follow group return processing instructions. If the filing requirement is "03" , change the Return Code to 01 and process the extension as a Form 990 group return.

  2. If the extension is a Group Return, in addition to normal editing of the return, also edit Group Code "8" in the middle right margin of Part I or Part II, as follows:

    If And Edit Group Code Then
    The GEN is present A list of subordinates is not attached, Do not edit a group code.

    Exception:

    Edit Group Code 8 if GEN 0229 is present.

    Continue processing.
    The GEN is present and the "whole group" box is not checked A list of subordinates is attached, 8

    Exception:

    Do not edit a group code for GEN 0928.

    Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
    The "whole group" box is checked A list of subordinates is not attached,   Continue processing.
    The "whole group" box is checked A list of subordinates is attached,   Continue processing.
    The "part of the group" box is checked A list of subordinates is not attached,   Research for the organization's filing requirement.
    1. If filing requirement is other than "03" , do not edit a Group Code.

    2. If filing requirement is "03" , correspond for a list of subordinates to be included in the request for an extension.

    The "part of the group" box is checked A list of subordinates is attached, 8

    Exception:

    Do not edit a group code for GEN 0928.

    Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
    The return appears to be a group return but neither of the group return boxes are checked and a GEN is present A list of subordinates is attached, 8

    Exception:

    Do not edit a group code for GEN 0928.

    Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
    The return appears to be a group return but neither of the group return boxes are checked and a GEN is not present A list of subordinates is attached, 8

    Exception:

    Do not edit a group code for GEN 0928.

    Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
  3. Form 8868 is considered an IRA Trust if all of the following apply:

    1. The organization name includes "IRA" and/or "Trust" .

    2. The Form 990-T sec. 401(a) or 408(a) trust box is checked.

    3. A GEN is not present.

    4. Neither the "whole group" nor "part group" box is checked.

    5. A list of names with EINs is attached.

  4. Process an IRA Trust extension as follows:

    IF THEN
    Form 8868 is approved and an EIN of the trust is present, Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
    Form 8868 is approved and an EIN of the trust is not present, Route to Exempt Organization (EO) Entity via Form 4227 to research for an EIN for the trust. Entity will determine the EIN of the trust, annotate the extension, and forward to C&E to continue processing.
    Form 8868 is not approved, Follow denial procedures for Form 8868, Part I or Part II as applicable.

3.11.20.4.2.2  (01-01-2015)
Approval/Denial Notice Code

  1. Edit a Notice Code on Forms 8868 to indicate whether the application is approved or denied, and the reason for the denial.

    1. The Notice Code causes a notice to generate to the taxpayer and generates the appropriate extended due date.

    2. If the extension request is denied, the generated notice will explain the reason for the denial based on the Notice Code.

      Example:

      Notice Code 2 will generate a notice explaining that the extension request was denied because it was not filed by the due date.

  2. Edit the Notice Code in the top middle margin of Form 8868 according to whether the application is approved or disapproved.

  3. Part 1 Notice Codes - edit only one Notice Code:

    1. 1 - Approved first extension

      Note:

      This Notice Code will generate a three -month extension unless the taxpayer files Form 990-T 501(c)(3) corporation, which will generate a six-month extension.

    2. 2 - Disapproved first extension - not timely.

  4. Part II Notice Codes - edit only one Notice Code:

    1. 3 - Approved second extension

    2. 6 - Disapproved second extension - not timely filed.

    3. 5 - Disapproved second extension - no reason for extension or reason not valid

    4. 4 - Disapproved second extension - missing signature

    5. 7 - Disapproved second extension - other

      Note:

      If there is more than one reason for denial, choose the appropriate Notice Code using the order given above.

3.11.20.4.3  (01-01-2015)
Form 8868, Part I - Approval Criteria

  1. A request for an automatic three-month extension of time to file an exempt organization return (Part I, Form 8868), will be approved if there is a timely postmark or the Received Date is on or before the return due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    Note:

    Rejected electronically filed extension request - if there is an indication that the taxpayer attempted to file the extension electronically and it was rejected, the paper request is timely if postmarked by the regular due date or five calendar days after the date the taxpayer was notified that the electronic submission was rejected, whichever is later.

  2. See Exhibit 3.11.20-2, Due Dates - Form 8868 Extensions for Form 990-T 401(a) and 408(a) Trusts - Return Code 05, Exhibit 3.11.20-3, Due Dates - Form 8868 Extensions for Form 1041-A and Form 5227 - Return Codes 08 and 10, and Exhibit 3.11.20-4, Due Dates - Form 8868 Extensions for Form 990, Form 990-EZ, Form 990-PF, Form 990-T (corporation), Form 990-T (trust other than above) and Form 4720 - Return Codes 01, 03, 04, 06, 07 and 09, to determine whether the extension is timely:

3.11.20.4.4  (01-01-2015)
Form 8868, Part I - Approval Actions

  1. If the request is timely filed, Edit Notice Code 1.

  2. When the extension transaction posts to the Master File, Notice Code 1 will generate a three-month extension of time to file for all return types.

    Exception:

    Notice Code 1 will generate the full six-month extension for Form 990-T (corporation).

    Note:

    It is not necessary to take any other action if the taxpayer has requested more than three-month (six-month for Form 990-T (corporation)) extension. The notice will notify the taxpayer of the length of the extension.

3.11.20.4.5  (01-01-2015)
Form 8868, Part I - Disapproval Criteria

  1. A request for an automatic three-month (six-months for Form 990-T (corporation)) extension of time (Form 8868, Part I) will be disapproved if the Received Date is after the Return Due Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , unless timely postmarked. See Exhibit 3.11.20-2, Due Dates - Form 8868 Extensions for Form 990-T 401(a) and 408(a) Trusts - Return Code 05, Exhibit 3.11.20-3, Due Dates - Form 8868 Extensions for Form 1041-A and Form 5227 - Return Codes 08 and 10, and Exhibit 3.11.20-4, Due Dates - Form 8868 Extensions for Form 990, Form 990-EZ, Form 990-PF, Form 990-T (corporation), Form 990-T (trust other than above) and Form 4720 - Return Codes 01, 03, 04, 06, 07 and 09, Exhibit 3.11.20-2 to Exhibit 3.11.20-4..

3.11.20.4.6  (01-01-2015)
Form 8868, Part I - Disapproval Actions

  1. If the extension request is not approved, edit Notice Code 2.

  2. Notice Code 2 will cause a notice to generate to notify the taxpayer the extension has been denied because the application was not filed on time.

3.11.20.4.7  (01-01-2015)
Form 8868, Part II - Approval Criteria

  1. A request for an additional extension of time to file (Form 8868 Part II) will be approved only if all the following conditions are met:

    • The received date is on or before the previously granted extended due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or there is a timely postmark date. See Exhibit 3.11.20-2, Due Dates - Form 8868 Extensions for Form 990-T 401(a) and 408(a) Trusts - Return Code 05, Exhibit 3.11.20-3, Due Dates - Form 8868 Extensions for Form 1041-A and Form 5227 - Return Codes 08 and 10, and Exhibit 3.11.20-4, Due Dates - Form 8868 Extensions for Form 990, Form 990-EZ, Form 990-PF, Form 990-T (corporation), Form 990-T (trust other than above) and Form 4720 - Return Codes 01, 03, 04, 06, 07 and 09

    • A statement is present on Part II, Line 7, or on an attachment giving an acceptable reason why an extension is needed. See Exhibit 3.11.20-7, Guidelines for Acceptable Reason for Needing an Extension of Time to File - Used for Form 5558 (MFT 76) and Form 8868 only.

    • The request is signed.

3.11.20.4.8  (01-01-2015)
Form 8868, Part II - Approval Actions

  1. Edit Notice Code 3 on an approved extension request.

  2. If the taxpayer requests an extension longer than allowed, a notice will be generated to inform taxpayer of approved extended due date.

3.11.20.4.9  (01-01-2015)
Form 8868, Part II - Disapproval Criteria

  1. A request for an additional 3 month extension of time will be disapproved if any of the following conditions are met:

    • The received date is after the previously granted extended due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and there is not a timely postmark date. See Exhibit 3.11.20-2, Due Dates - Form 8868 Extensions for Form 990-T 401(a) and 408(a) Trusts - Return Code 05, Exhibit 3.11.20-3, Due Dates - Form 8868 Extensions for Form 1041-A and Form 5227 - Return Codes 08 and 10, and Exhibit 3.11.20-4, Due Dates - Form 8868 Extensions for Form 990, Form 990-EZ, Form 990-PF, Form 990-T (corporation), Form 990-T (trust other than above) and Form 4720 - Return Codes 01, 03, 04, 06, 07 and 09..

    • A statement is not present on Part II, Line 7, or the statement is not an acceptable reason for delay. See Exhibit 3.11.20-6, Guidelines for Acceptable Reason for Needing an Extension of Time to File - Used for Form 5558 (MFT 76) and Form 8868 only.

    • The extension request is not signed.

    • A previous extension was not filed or was not approved. See IRM 3.11.20.4.2, Document Perfection.

3.11.20.4.10  (01-01-2015)
Form 8868, Part II - Disapproval Actions

  1. Edit the appropriate Notice Code in the top middle margin as follows:

    If denied because Then, edit
    Not timely filed 6
    Reason given does not meet Acceptable Reason Criteria 5
    No reason given 5
    Not signed 4
    Part I not filed or not approved
    (Exception: Extensions for F990-T (Corp) file Part I only to receive an automatic 6-month extension)
    7

    Note:

    Only one Notice Code may be used. If more than one reason for disapproval exists, edit the Notice Code using the order above.

  2. An automatic notification will be generated to the taxpayer.

3.11.20.5  (01-01-2015)
Form 5558 Document Perfection Procedures (OSPC only)

  1. Form 5558 is processed at Ogden Submission Processing Center only. If received in another center, transship.

  2. Processing of extensions must be completed within 16 days of the initial received date as outlined in IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates.

  3. Extension requests for Form 5500 Series and Form 8955-SSA are processed and posted to the EPMF as MFT 74. The MFT is not edited on this form; see Exhibit 3.11.20-13, Form 5558 T-Lines for Form 5500 Series and 8955-SSA, for T-Lines.

  4. Extension requests for Form 5330 are processed and posted to the BMF as MFT 76. The MFT is not edited on this form see Exhibit 3.11.20-14, Form 5558 T-Lines for Form 5330, for T-lines.

  5. Form 5558 extensions are processed through on-line ERS .

  6. Box B of the Form 5558 contains fields for an EIN and SSN. An SSN can be entered by the filer filing an extension for Part III only.

    IF THEN
    An SSN is present and only Part II has an entry, Send to Entity. Entity will determine the EIN and return to C&E to continue processing.
    Both an EIN and SSN are present and only Part II has an entry, circle out the SSN and continue processing.
    Both an EIN and SSN are present and only Part III has an entry, send to Entity. Entity will determine the correct TIN and Entity will return to C&E to continue processing.
  7. Use the following criteria to determine the type of extension:

    IF AND THEN
    Part II has an entry on line 2 and line 3,

    Note:

    On form version 06-2011 use Part II Lines 1 and 2.

      process the extension for a Part II Form 5500 Series and Form 8955–SSA.
    only Part II (line 2 and/or line 3) has an entry

    Note:

    On form version 06-2011 use Part II Lines 1 and 2 and Part III Lines 3a, 3b, 3c and 4.

    Part III (lines 4a, 4b, 4c, and 5) has only blank, hyphen, or zero,

    Note:

    On form version 06-2011 use Part III Lines 3a, 3b, 3c and 4.

    process the extension for Part II Form 5500 Series and Form 8955-SSA. See IRM 3.11.20.5.2., Form 5558 for Form 5500 Series and Form 8955-SSA
    If only Part III (lines 4a, 4b, 4c, and 5) has entries

    Note:

    On form version 06-2011 use Part III Lines 3a, 3b, 3c and 4.

    Part II (line 2 and line 3) is blank,

    Note:

    On form version 06-2011 use Part II Lines 1 and 2.

    process the extension for Part III Form 5330. See IRM 3.11.20.5.1, Form 5558 for Form 5330 - Approval/Disapproval Criteria and Action
    If both Part II and Part III has entries   see (8) below.
    unable to determine,   process as an extension for Part II Form 5500 Series and Form 8955-SSA.
  8. If a single Form 5558 is requesting an extension for both a Part II Form 5500 Series or Form 8955-SSA and a Part III Form 5330, a "dummy" extension must be prepared for the Form 5330 extension. Both forms must be processed separately following the specific instructions for each type. See IRM 3.11.20.5.1, Form 5558 for Form 5330 - Approval/Disapproval Criteria and Action, and IRM 3.11.20.5.2, Form 5558 for Form 5500 Series and Form 8955-SSA.

    1. Photocopy the Form 5558.

    2. "X" out Part III on the original and Part II on the photocopy.

    3. Both forms must be processed separately following the specific instructions for each type. See IRM 3.11.20.5.1, Form 5558 for Form 5330 - Approval/Disapproval Criteria and Action, and IRM 3.11.20.5.2, Form 5558 for Form 5500 Series and Form 8955-SSA.

  9. On form version 06-2011, the filer may include up to three plans on one Form 5558; if there is more than one plan number on the Form 5558, a "dummy" extension must be prepared for each of the additional plan numbers.

    1. Photocopy the Form 5558 and circle all but one plan number. Make additional photocopies if necessary so there is a separate Form 5558 for each plan number.

    2. Notate "dummy(ies) prepared" on each Form 5558 as an audit trail.

    3. If unable to determine Plan Number, attache Form 4227, note "plan number" , and route to Entity. Entity will determine the plan number and return to C&E to continue processing.

  10. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  11. If the taxpayer attaches a list; detach and send the list back to the filer and continue processing the Form 5558.

    Note:

    For lists indicating Forms 5558 have been sent for each plan number listed, consider the list as classified waste and destroy.

    IF AND THEN
    Correspondence attached   Detach list and return to sender:
    1. To the attention of the person who signed the correspondence if available and legible

    2. Use the mailing address listed on the correspondence.

    No correspondence attached There is an envelope attached with a return address detach list and return to sender using the address shown on the envelope.
    No correspondence attached no envelope attached or no return address on envelope. "X" the list and leave attached behind the Form 5558.

    Note:

    DO NOT send the list to the filer or address listed on Form 5558.

    .
  12. If correspondence is necessary and there is no address for the filer on the Form 5558, correspondence should be sent to the taxpayer's address of record.

3.11.20.5.1  (01-01-2015)
Part III Form 5558 for Form 5330 - Approval/Disapproval Criteria and Action

  1. The extension will be approved up to six-months if all of the following conditions are met:

    • Extension is timely, and

    • An acceptable reason for delay is given.

    • The extension request is signed.

  2. Determine if the extension was timely filed.

    1. The return due date of Form 5558 filed for Form 5330 is determined by the IRC section imposing the tax entered on line 4a.

    2. If no code section is entered or is not valid, edit Action Code 211 in left bottom margin and initiate correspondence for the code section using Letter 3938-C, Form 5330 & 5558 Incomplete for Processing (BMF).

      Exception:

      Do not correspond for the code section if there is no signature or no acceptable reason. Follow disapproval procedures.

    3. If the due date falls on a weekend or holiday, consider the extension timely filed if the extension is postmarked on or before the next business day. See Exhibit 3.11.20-5, Due Dates - Form 5558 for MFT 76 (Form 5330), to determine whether the extension is timely:

  3. Approval Action - edit Notice Code 1 in the top middle margin of the Form 5558.

  4. Disapproval Criteria - Requests for extension of time to file will be denied if all the requirements for approval in paragraph (1) are not met.

  5. Disapproval Actions:

    If Then
    The extension is not timely, edit Notice Code 2
    The extension is not signed, edit Notice Code 8
    The extension does not have an acceptable reason, edit Notice Code 9

    Note:

    Only one Notice Code may be edited .if the request meets more than one of the disapproval criteria, choose the Notice Code in the order listed above.

  6. Editing Form 5558 for Form 5330:

    1. Underline or edit the name control. See IRM 3.11.20.3.1, Name Control.

    2. Edit the tax period. See IRM 3.11.20.3.3, Tax Period.

    3. Check for valid TIN. See IRM 3.11.20.3.2, Taxpayer Identification Number (TIN).

    4. If the TIN is an SSN (entered in the SSN block on the form), edit a 0 (zero) at the end of the SSN.

    5. Ensure there is a three-digit plan number in line 2 plan number box. If no plan number is present, or it is more or less than three digits, edit Action Code 320 in left bottom margin. Attach Form 4227, note "plan number" , and route to EP Entity. If there is more than one plan number present, see IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only).

    6. Ensure a received date is present. See IRM 3.11.20.3.4, Received Date.

    7. Edit the Notice Code according to instructions in IRM 3.11.20.5.1(3) & (5) above.

3.11.20.5.2  (01-01-2015)
Part II Form 5558 for Form 5500 Series and Form 8955-SSA

  1. All Forms 5558 for Form 5500 Series or 8955-SSA are processed and posted to the EPMF.

  2. If the filer submitted a Form 5558 with a remittance, that is not designated as an extension for Form 5330, a manual deposit Form 3244, Payment Posting Voucher, should be prepared for NMF Accounting. If a money amount is edited on the Form 5558 or a "green rocker" is present indicating a remittance, continue processing. If a copy of the Form 3244 is attached, do not mail it back to the filer. NMF Accounting should process the original Form 3244. Route the original Form 3244 to NMF and keep a copy with the extension.

  3. Determine if the extension request was received timely.

    1. The return due date for Forms 5558 for Form 5500 Series and Form 8955-SSA is the last day of the seventh month after the end of the plan year.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. See Exhibit 3.11.20-6Due Dates - Form 5558 for Form 5500 Series and Form 8955-SSA , to determine whether the extension is timely:

  4. On form version 06-2011, Employers may request extensions for up to three plans on one Form 5558 if all the plan years end on the same date. Follow the approval/denial criteria as outlined in IRM 3.11.20.5.2(7) through (12) below.

    Note:

    "Dummy" extensions must be prepared so each has only one EIN and plan number. IRM 3.11.20.5(8)

    .

  5. Extensions cannot be amended. Treat any extensions marked "amended" as a reconsideration and follow procedures in IRM 3.11.20.5.2(6)(d) below.

  6. Routing of miscellaneous forms and attachments:

    1. Leave Schedules A, B, C, D, E, F, G, H, I, P, R, or T (these schedules are filed with Form 5500) attached to the Form 5558.

    2. If Form 8955-SSA is attached, detach and route to Extracting.

    3. Detach lists of additional plans from Form 5558, and return to the filer. See IRM 3.11.20.5(11).

    4. Route correspondence concerning penalties, returned Letter 3699c, reconsideration of denied extensions, or timeliness to EP Accounts.

    5. Detach Form 8822 and route to Entity.

    6. Detach original Form 2848, Power of Attorney and Declaration of Representative, edit a received date, and route to the POA (Power of Attorney) Unit.

    7. If there is a request for forms attached to the extension, copy the Form 5558. Detach the correspondence request and attach it to the photocopy of the Form 5558. Route to CRX Letters and continue to process the original Form 5558.

    8. Leave CP 213, EPMF Proposed Penalty Notice, attached. Move the extension request to the back and forward the entire package to EP Accounts.

  7. Route the Form 5558 to Entity if:

    1. There is a name change.

    2. There is an EIN change.

    3. The EIN is missing and the Form 5558 is not timely.

    4. If the filer attached a Form SS-4 to the Form 5558, route both forms to Entity to have an EIN assigned before determining approval or denial.

    5. Part II Line 1 check box is checked, route to Entity to establish the account before determining approval or denial.

  8. Approval Criteria:

    1. The Form 5558 will be automatically approved if the extension is timely. See Exhibit 3.11.20-6, Due Dates - Form 5558 for Form 5500 Series and Form 8955-SSA, to determine if the extension is timely filed.

      Reminder:

      A signature is not required for extensions for Forms 5500 Series or Form 8955-SSA. An unsigned but timely filed extension should be approved.

    -

  9. Approval actions:

    1. All extensions will be processed and posted to the EPMF.

    2. Underline or edit the name control. See IRM 3.11.20.3.1, Name Control.

    3. Edit the tax period. See IRM 3.11.20.3.3, Tax Period.

    4. Check for a valid TIN. See IRM 3.11.20.3.2, Taxpayer Identification Number (TIN).

    5. Ensure there is a three digit plan number in line 2 plan number box. If no plan number is present, or it is more or less than 3 digits, Attach Form 4227, note "plan number" , and route to EP Entity. If there is more than one plan number present, see IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only).

    6. Ensure a received date is present. See IRM 3.11.20.3.4, Received Date.

    7. Edit Notice Code 1 in the upper center margin of the form.

  10. Disapproval criteria:

    1. The Form 5558 will be denied if the extension is late.

      Exception:

      Some of the Forms 5558 are being sent to the IRS by the Department of Labor (EFAST2) vendor. These forms will not have an envelope attached, normally have staple holes in the upper left margin, and are at least one month delinquent. Extensions for Form 5500 Series and Form 8955-SSA are not required to be signed, but if there is a signature present, check the signature date. Consider these extensions received from the vendor to be timely if the signature date is timely.

    2. Organizations may enter their establishment date as the plan year ending date. This generally makes the extension late and therefore it must be denied.

  11. Disapproval actions:

    1. All extensions will be processed and posted to the EPMF.

    2. Underline or edit the name control. See IRM 3.11.20.3.1, Name Control.

    3. Extensions must have a valid EIN, name, and address. If necessary, route to Entity for missing, illegible information.

    4. Edit the tax period. See IRM 3.11.20.3.3, Tax Period.

    5. Check for a valid TIN. See IRM 3.11.20.3.2, Taxpayer Identification Number (TIN).

    6. Ensure there is a three digit plan number in Line 2 plan number box. If no plan number is present, or it is more or less than three digits, enter Action Code "320" in left bottom margin. Attach Form 4227, note "plan number" , and route to EP Entity. If there is more than one plan number present, see IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only).

    7. Ensure a received date is present. See IRM 3.11.20.3.4, Received Date.

    8. Edit Notice Code 2 in the upper center margin of the form.

3.11.20.6  (01-01-2015)
Error Resolution/Reject Procedures - General

  1. IRM 3.11.20.6, Error Resolution/Reject Procedures - General, through IRM 3.11.20.13 #, Error Codes for Form 8868, incudes instructions for correcting errors on applications for extensions of time to file.

  2. IRM 3.11.20.6, Error Resolution/Reject Procedures - General, through IRM 3.11.20.13 #, Error Codes for Form 8868, should be used in conjunction with Document Perfection IRM 3.11.20.1, Overview, through IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only), above.

  3. Included are instructions for using ERS.

  4. The instructions in IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns, cover the processing of the following forms:

    Form Title
    5558 Application for Extension of Time To File Certain Employee Plan Returns
    8868 Application for Extension of Time To File an Exempt Organization Return
  5. Form 5558 extensions for Form 5330 (BMF MFT 76) are processed on ERS using program number 15560.

    1. Form 5558 is numbered with Tax Class 4 in the DLN. Document Code is 04, Blocking Series is 000-499, Transaction Code is 620.

    2. The MFT is generated for each record based on the program 15560.

    3. A Notice Code is edited on each Form 5558 by C&E to indicate whether the extension request has been approved or not and if not, the reason for denial.

    4. When the extension transactions posts to the BMF, the Notice Code causes a notice to generate to the taxpayer with the appropriate text to explain the denial; no manual response to the taxpayer is required.

    5. The notice code also causes the generation of the extended due date. The extended due date is not edited or input.

  6. Form 5558 extensions for Form 5500 Series and Form 8955-SSA (EPMF MFT 74) are processed on ERS using program number 72880.

    1. Form 5558 is numbered with Tax Class 0 in the DLN, Document Code is 55, Blocking Series is 100-699, Transaction Code is 460.

    2. The extended due date is edited and transcribed.

    3. A Notice Code is edited on each Form 5558 by C&E to indicate whether the extension request has been approved or not.

    4. When the extension transactions posts to the EPMF, the Notice Code causes a notice to generate to the taxpayer with the appropriate text to explain the denial; no manual response to the taxpayer is required.

  7. Form 8868 is processed on ERS using program code 15540.

    1. Form 8868 is numbered with Tax Class 4 in the DLN. Document Code is 04, Blocking Series is 500-999, Transaction Code is 620.

    2. The Return Code is edited and transcribed on each record.

    3. A Notice Code is edited on each Form 8868 by Code and Edit to indicate whether the extension request has been approved or not and if not, the reason for denial.

    4. When the extension transactions posts to the BMF, the Notice Code causes a notice to generate to the taxpayer with the appropriate text to explain the denial; no manual response to the taxpayer is required.

3.11.20.6.1  (01-01-2015)
Related Forms

  1. The following forms may be referred to in this section. The chart below shows their form number, form title and use. Refer to IRM 3.12.212, Applications for Extensions of Time to File Tax Returns, for more information on these forms.

    Form Title Use
    3244 Payment Posting Voucher To post payments on accounts
    3696 Correspondence Action Sheet To initiate correspondence to the taxpayer
    4227 Intra-SC Reject or Routing Slip To identify the unprocessable condition
    6401 Request for Missing Information To inform taxpayer of erroneous filed extensions
    8161 ERS Return Charge-Out To charge out returns on the new Suspense List, Rejected Records List and Duplicate Document DLN Register. Input Correction Operation will also use as a routing slip and history item.
    6882 IDRS/MF Information Request To request IDRS research
    13482 Letter 3699C Extension Correspondence Action Sheet To initiate correspondence to the taxpayer using 3699C letter

3.11.20.6.2  (01-01-2015)
ERS Inventories

  1. Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction. Once the Error Resolution tax examiner accesses the record and it is displayed on the screen, it must either be fully corrected, placed in suspense for additional information, or rejected from pipeline processing. Corrections will include correcting errors in editing or transcription.

  2. IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns, is the main source of information in correcting the record on the screen and the related return. Procedures will also be found in IRM 3.12.38, BMF General Instructions, which contain general instructions for correcting records on the screen, document control, inventories, and management reports.

3.11.20.6.3  (01-01-2015)
Error Inventory Report

  1. Each day the Error Inventory Report will be furnished showing the blocks by the block control number and block Document Locator Number (DLN) in DLN order. Each batch will be on separate pages. Blocks received from Block Out of Balance (BOB) Correction will also be listed separately.

  2. A copy of the Error Inventory Report can be placed on the carts of documents and used as a charge-out. This will help to determine when a cart is completed.

  3. The first line of the Error Inventory Report will show the number of working days the records on that page have been in the Error Inventory. This will enable work left from a previous day to have priority.

3.11.20.6.4  (01-01-2015)
Workable Suspense Inventory Report

  1. Each day the Workable Suspense Inventory Report will be furnished showing the records by program in DLN order for various statuses. Separate pages for each program with totals will be provided.

  2. The report will show the number of working days that the records have been in the Workable Suspense Inventory. This is on the first line of the report. This will allow priority to be given to the older work.

3.11.20.6.5  (01-01-2015)
Unprocessable Documents

  1. Error Resolution System (ERS) - When perfection of a document is not possible because it is necessary to correspond, perform research or refer the document to another area of the Campus, suspend the unprocessable record by entering Command Code SSPND followed by the appropriate Action Code.

  2. Error Register - If at any time a document is found to be unprocessable, enter an Action Code 3 to the left of Section 01 on the Error Register and charge the document out of the block, indicating "Rejecting U" , and date. Attach and prepare Form 3696, Form 4227, or Form 6882, to the rejected document.

3.11.20.6.6  (01-01-2015)
Non Master File Extensions

  1. When an ERS document is for a non-ADP (Automated Data Processing) period (prior to 1962) or is extending the time to file a Non Master File (NMF) return (Form 990-BL, 6069 or 4720 with Return Code 03, the record must be rejected from ERS.

    1. For non-remittance NMF items SSPND 620. If necessary, Rejects will suspend with Command Code (CC) RJECT.

    2. For the NMF item with payment follow instructions in IRM 3.12.38, BMF General Instructions, by first SSPND 343 to Accounting for research before finally rejecting from ERS and transferring to NMF or Unidentified, depending upon the instruction from Accounting.

  2. When an Error Register document is found to be Non-ADP, charge it out of the block as "Non-ADP" with the date. Prepare a Form 4227, attach it to the document and enter Action Code 3 to the left of Section 01 on the error register.

  3. For international returns with and without remittance refer to instructions in IRM 3.12.38, BMF General Instructions.

3.11.20.6.7  (01-01-2015)
Perfection of Attachments

  1. If unrelated or unanswered taxpayer correspondence or questions are attached or written on the document and no action has been taken, detach or photocopy and route to the appropriate area.

  2. If unanswered taxpayer correspondence relating to the extension application forms is attached, make a photocopy of the attachment and forward it to the appropriate area.

  3. Be sure that any attachment or photocopy of an attachment routed elsewhere contains name, address, TIN, received date, and an audit trail is noted on the extension form.

3.11.20.6.8  (01-01-2015)
Research

  1. Command Code (CC) INOLE definer S (INOLES) with the taxpayer's EIN or SSN is used to find the following information:

    1. Taxpayer's name and address.

    2. Taxpayer's name control.

    3. Filing requirements (for BMF and EPMF taxpayers).

    4. Fiscal Year Month (FYM) - this is the month the taxpayer's tax year ends.

      Example:

      If the taxpayer's FYM is 12, his tax year ends in December.

    5. See IRM 2.3.47, Command Codes INOLE, EOGEN and SPARQ, for more information on the use of this command code.

  2. Command Code BMFOL definer I (BMFOLI) with the taxpayer's EIN or SSN is used to find the following information:

    1. Taxpayer's name control.

    2. Taxpayer's filing history. BMFOLI will list the tax periods on the master file and whether a return has posted to the tax period.

    3. See IRM 2.3.59, Command Codes BMFOL and BMFOR, for more information on the use of this command code.

  3. CC ENMOD with the taxpayer's EIN or SSN is used to find the following information:

    1. Taxpayer's name control.

    2. Pending entity transactions such as Transaction Code (TC) 000 which establishes the taxpayer's account, name changes (TC 013) which may change the name control, or transactions that may change the taxpayer's tax year (such as TC 053).

    3. See IRM 2.3.15, Command Code ENMOD, for more information on the use of this command code.

  4. Command Codes NAMEE and NAMES, NAMEB and NAMEI, and FINDE and FINDS.

    1. Research for a taxpayer's EIN or SSN on the BMF or EPMF using the taxpayer's name (and address information if known).

    2. Research for a taxpayer's SSN on the IMF by entering the taxpayer's name (and address information if known).

    3. The most efficient search uses the taxpayer's name and ZIP Code.

    4. Command Code NAMEI is used to research for the taxpayer's SSN.

    5. Command Code NAMEB is used to research for the taxpayer's EIN or SSN for a BMF entity.

    6. Command Codes FINDS (SSN) and FINDE (EIN) are used to find a name and address for a TIN.

    7. See IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP, for more information on the use of these command codes.


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