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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 212. Applications for Extension of Time to File

3.11.212  Applications for Extension of Time to File

All Official Use Only content has been replaced with ≡.

3.11.212.1  (01-01-2010)
Overview

  1. The purpose of this document is to provide Code and Edit procedures for the extension requests and miscellaneous forms with DLN Document Code 77 listed below.

  2. Instructions in subsections 3.11.212.1.1 through 3.11.212.2.6 are general instructions that apply to all extension requests unless instructions for the specific form are different. In that case, the specific instructions for the form take precedence.

3.11.212.1.1  (01-01-2009)
Forms Covered by this Internal Revenue Manual (IRM)

  1. The Individual Master File (IMF) extension request forms are as follows:

    • Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

    • Form 2350, Application for Extension of Time to File U.S. Income Tax Return (Austin Submission Processing Center (AUSPC) only)

  2. The Business Master File (BMF) extension request forms are:

    • Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other 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

    • Form 8892, Payment of Gift/GST Tax and/or Application for Extension of Time To File Form 709

    Note:

    Procedures for processing extension requests on Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, are included in IRM 4.25.2, Campus Procedures for Estate Tax.

  3. This IRM also includes miscellaneous forms to be perfected for input to Master File:

    • Form 3177, Notice of Action for Entry on Master File

    • Form 5466-B, Multiple Record of Disclosure

3.11.212.1.2  (01-01-2003)
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 this subsection.

3.11.212.1.3  (01-01-2010)
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 contains a request for gift tax only (Form 709), transship to Cincinnati Submission Processing Center (CSPC).

  3. If the letter request is for a Non Master File (NMF) form, forward to CSPC NMF Accounting. See IRM 3.11.212.1.4 (6) for the list of NMF forms.

  4. If the taxpayer requests an extension for Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, or Form 941, Employer's Quarterly Federal Tax Return, see IRM 3.11.212.10 and IRM 3.11.212.11 for processing instructions.

  5. Extension requests for Form 2290, Heavy Vehicle Use Tax Return, must be forwarded to CSPC at the following address: CSPC Excise Operation, Stop 5701G, Team 101.

  6. Individual taxpayers out of the country who need an extension longer than the 6 months provided with Form 4868 are instructed to send their request in a letter to Austin Submission Processing Center. If received at another center, transship to Austin. Only Austin can grant an extension longer than 6 months.

    • The request must be received on or before the expiration date of the extension provided on Form 4868 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or postmarked on or before the expiration date of the automatic extension. The original extension expires on 10/15.

    • If the request is not received timely, deny the request and notify the taxpayer.

    • No notification will be sent to the taxpayer unless the request is denied.

    • See IRM 3.11.212.5.6.2 for instructions for processing these requests.

  7. 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 (Integrated Data Retrieval System), 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.

  8. Letter requests for IMF extensions of time to file should be reported under function 210, using the appropriate program for the type of extension being requested (example: request for extension for Form 1040 should be reported as Form 4868).

  9. Tax preparation firms may submit a list of taxpayers with a cover letter instead of filing separate Forms 4868. See IRM 3.11.212.5.9 for processing instructions.

3.11.212.1.4  (01-01-2010)
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

  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.

    Note:

    Form 7004 should never be transshipped to an IMF campus.

  3. Form 2350 must be transshipped to Austin Submission Processing Center. These extension requests are used to grant an extension beyond 6 months, so must be processed in AUSPC.

  4. Form 4868 with a foreign address may be processed in the receiving campus unless there is a notation or attachment indicating the taxpayer is requesting an extension longer than six months. Those requests must be transshipped to AUSPC.

  5. Form 4868 filed for a Form 1040NR estate or trust must be transshipped to CSPC. See IRM 3.11.212.5.7 for special instructions. Only an extension request with all of the following conditions is considered to be for Form 1040NR estate or trust:

    • The Social Security Number (SSN) block contains an EIN (formatted NN-NNNNNNN) or states that an EIN has been applied for AND

    • The taxpayer name includes the words "estate" or "trust" , or notates "estate" or "trust" on the 4868 or an attachment.

      Note:

      All other Forms 4868 with only an EIN and no SSN, see IRM 3.11.212.1.11.

  6. All Non Masterfile (NMF) extension requests must be transshipped to CSPC:

    • Form 7004 for 8612, 8613, 8725, 8831, 8876.

    • Form 8868 for 990-BL and 6069.

  7. Form 8892 must be transshipped to CSPC.

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

    Note:

    Form 8868 for Form 8870 is routed to OSPC Exempt Organizations Compliance Unit (EOCA) Mail Stop 1112.

  9. Form 7004 for 1120-C and 1120-F must be transshipped to OSPC.

  10. There is no extension form for taxpayers to use to request an extension for Form 2290, Heavy Vehicle Use Tax Return, but taxpayers may make the request in a letter or by making a notation on an extension form to indicate they want an extension for Form 2290. These requests must be forwarded to: CSPC Excise Operation, Stop 5701G, Team 101.

  11. These instructions are condensed in the following table:

    Form Number Route to
    2350





    AUSPC
    4868 with an extension request longer than 6 months.
     
    4868 for 1040NR estate or trust.




    CSPC     		 
    7004 for 8612, 8613, 8725, 8831, and 8876  
    8868 for 990-BL and 6069  
    8892  
     
    7004 for 1120-C and 1120-F,


    OSPC    		  
    8868

    Exception:

    8868 for 990-BL and 6069

    		  
    5558  
    8868 for Form 8870 OSPC - EOCA Mail Stop 1112  

  12. When transshipping extensions to another campus, do not send Letter 86C . Extensions are exempted from Action 61 which requires the Letter 86C.

3.11.212.1.5  (01-01-2010)
6 Month Extension Limit

  1. Under normal circumstances, an extension of time to file can legally be granted for no longer than a total of 6 months (including first and second extension requests for Form 8868) from the due date of the return. Internal Revenue Code (IRC) section 6081(a) and Treas. Reg. section 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.

    Exception:

    The maximum extension time for Forms 1041, 1065 and 8804 is 5 months from the due date of the return.

  2. In some cases, however, individual taxpayers who are abroad may receive more than 6 months. Only AUSPC may grant extensions beyond 6 months for individual taxpayers. See IRM 3.11.212.5.6.2.

  3. OSPC may grant an extension longer than 6 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.

3.11.212.1.6  (01-01-2007)
Correspondence From the Taxpayer

  1. All taxpayer correspondence is governed by the guidelines in IRM 1.10.1, IRS Correspondence Manual.

  2. If the taxpayer correspondence is requesting an extension of time to file, see IRM 3.11.212.1.3.

  3. If the correspondence is requesting a reconsideration of a previously denied extension request, route to the area specified in your campus for working extension reconsiderations (some campuses work these in Accounts Management, some in Code and Edit). See IRM 3.11.212.1.13.

  4. Other taxpayer correspondence is normally handled by 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 so indicate and the extension is for the current year's return, Detach the correspondence, route it to Accounts Management, and process the extension request.

3.11.212.1.7  (01-01-2010)
Determination of Timely Filing - General

  1. Code and Edit must use extreme care when 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 (or no received date in the case of calendar year Forms 4868).

    • All extensions will be stamped with an IRS received date except timely filed calendar year Form 4868.

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

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

      Example:

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

      ≡ ≡ ≡

  4. For all extension requests with a late received date, Code and Edit must review the extension form for indications the extension may have a later due date. Some indications are:

    • Form 4868 - if either box 8 or box 9 is checked, the extension is due 6/15 instead of 4/15. See IRM 3.11.212.5.3.

    • Form 7004 - if either box 2 or 4 is checked, the extension is due on the 15th day of the 6th month after the end of the tax year (6/15 for calendar year extensions). See IRM 3.11.212.3.2.

    • All extension forms - indication the taxpayer is affected by an officially declared disaster that allows for a postponement of the normal due date. If the extension request is postmarked on or before the date the disaster period ends, it must be treated as a timely filed extension.

      Note:

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

  5. For all extension requests with a late received date, Code and Edit must review for a timely postmark date.

    1. The postmark date is the date the 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 section 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 Revenue Ruling 2002–23, 2002-1 C.B. 811.

  6. 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).

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

    • Form 2350 - See IRM 3.11.212.6.2 for specific instructions.

    • Form 4868 - See IRM 3.11.212.5.3 for specific instructions.

    • Form 7004 - See IRM 3.11.212.3.2 for specific instructions.

    • Form 5558 - See IRM 3.11.212.7.1. and IRM 3.11.212.7.2. for specific instructions.

    • Form 8868 - See IRM 3.11.212.4.3 for specific instructions.

    • Form 8892 - See IRM 3.11.212.8.1 for specific instructions.

  8. If you determine that 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 unless the Commissioner has extended the due date for filing due to a situation covered in Policy Statement P-2-67. Policy Statement P-2-67 states, "Late filed applications for extensions of time to file returns will not be approved. The Service will neither consider nor approve on a case-by-case basis late filed applications for extensions of time to file returns. The Commissioner may extend the due date for filing returns for broad classes or groups of taxpayers, but only in cases of natural disaster, catastrophe or other extraordinary situations."

3.11.212.1.8  (01-01-2010)
Error Resolution System Coding

  1. Form 7004, Form 8868, Form 4868, Form 5558 (MFT 76), Form 2350, Form 8892, Form 5466-B, and Form 3177 are processed on the Error Resolution System (ERS). The only form in this IRM that is still processed on the paper Error Register is Form 5558 filed to extend Form 5500/5500-SF/5500-EZ/8955-SSA (MFT 74).

    Note:

    ERS instructions for approved Forms 4868, program 4470X, processed through Lockbox and Revenue Receipts, Document Code 17 and 19, are contained in IRM 3.12.10, Revenue Receipts.

  2. Action Codes may be assigned by Code and Edit 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. The presence of a valid Action Code will place the record in the Rejects Suspense Inventory, either Workable or Unworkable.

  4. 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.

3.11.212.1.9  (01-01-2006)
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

3.11.212.1.10  (01-01-2010)
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.

  2. If no better address is included in the correspondence returned to the Service, research IDRS for a better address. See IRM 3.11.212.1.19.

    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.

3.11.212.1.11  (01-01-2010)
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. If Form W-7, Application for IRS Individual Taxpayer Identification Number, or Form 9465, Installment Request, is attached to the extension document, see IRM 3.11.212.1.14 and IRM 3.11.212.1.16.

  4. Extension requests filed on the wrong form must be converted to the correct extension application if possible.

    Note:

    Form 7004 may be filed using a SSN if the taxpayer is requesting an extension for Form 706-GS(D) and the distributee is an individual. It cannot be used to request an extension for an individual. Do not convert Form 7004 to a Form 4868.

  5. Form 4868 received with an indication of "gift tax" should be processed normally as Form 4868. Gift tax is automatically extended if the extension is granted for the taxpayer's individual income tax return.

  6. If the taxpayer files a Form 4868 but appears to be requesting an extension for a BMF tax form (there is only an EIN with no SSN present, and there is only a business name present with no individual's name), do not process.

    Note:

    If the business name contains an individual's name, such as Mary Jones Card Shop, continue processing as an individual extension for Mary Jones.

    1. If the request is a timely filed Form 4868, return it to the taxpayer with a Form 6401. Check the box for "Please complete items" and include the text"Your name and your social security number. Form 4868 is used to request an extension of time to file an individual income tax return. If you need an extension for your business, please see instructions for Form 7004."

    2. If the request is not timely filed, return it to the taxpayer with Form 6513. Check both the second box and the fourth box (4/2009 revision).

    Note:

    If there is an SSN and/or an individual's name present, process as an IMF extension request.

  7. 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 specifies otherwise. See IRM 3.11.212.1.20. for correspondence instructions.

  8. 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 is missing or illegible so that the extension cannot be processed, nor correspondence issued, give it to your supervisor for preparation to be destroyed.

3.11.212.1.12  (01-01-2007)
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" ; or

    2. No received date; or

    3. Signature is not original ink/stamp.

    Exception:

    Form 7004 only - If the extension request is more than two months delinquent, it is not necessary for any of the conditions listed above to be present.

  2. If any of these 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, 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 this IRM.

3.11.212.1.13  (01-01-2010)
Reconsiderations/Amendments of Extension Requests

  1. If an extension request is sent back to IRS for reconsideration of a denied request, or a request for abatement of failure to file penalties due to a denied extension, send it directly to the function specified by your campus for processing.

  2. If a taxpayer files an amended application for whatever reason, send it directly to the function specified locally to be researched and associated with the original request.

  3. If an extension request is sent to the IRS for reconsideration of a request, and upon research there is no record of the account, the document will be sent to Entity Control to establish the account.

  4. If the original request was denied as late filed, and the taxpayer supplies proof that the original request was postmarked timely, approve the request and follow approval processing procedures.

    Reminder:

    If an extension request for a prior year tax period must be reprocessed as an approved extension, ensure that all necessary editing, especially of the tax period and received date, reflects the information appropriate for the prior year.

  5. If the original extension was timely filed, and the taxpayer has supplied all the information necessary for approving an extension in the reconsideration request, approve the application. For example, if the signature, or TIN, or reasonable cause was missing from the original application and is present in the reconsideration, approve the extension.

  6. If the reconsideration request is not approved, return it to the taxpayer notifying him/her to file the return as soon as possible.

  7. If the reconsideration is approved, input the extension through normal processing. These should be batched and processed using the appropriate program code. When the approved extension posts to master file, the failure to file penalties will be automatically reversed.

3.11.212.1.14  (01-01-2006)
Installment Agreement

  1. If a Form 9465, Installment Agreement Request, or letter requesting an installment agreement is attached to an extension, route the Form 9465 or letter to Compliance Services. Notate on the transmittal which extension form the attached Form 9465 was received with. Before routing the Form 9465 to Compliance Services, verify that the taxpayer(s) name, SSN, form number and tax period are on both the installment agreement and the extension. Continue processing the extension request according to established procedures.

3.11.212.1.15  (01-01-2003)
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.

3.11.212.1.16  (01-01-2009)
Forms W-7

  1. If Form W-7, Application for IRS Individual Taxpayer Identification Number, is attached to a Form 4868 or Form 2350 , follow instructions below:

    If the extension Then
    Is unnumbered without an SSN Transship the entire submission (extension, W-7, supporting documentation) to AUSPC ITIN Unit at the address in (2) below.
    Is numbered or unnumbered with an SSN Detach the Form W-7 and its supporting documentation and send to the AUSPC ITIN Unit at the address in (2) below. Continue processing the extension request at the receiving center. Notate on the routing documentation that an extension was attached and was processed under SSN ___-__-____(enter the SSN used on the extension).
    Is numbered without an SSN. Leave the Form W-7 and its supporting documentation attached and continue processing without an SSN.

  2. The AUSPC ITIN Unit will input the Form W-7. They will also notate "ITIN to be requested" on the extension and will forward the extension for processing. Use the following address:

    AUSPC ITIN Unit
    Austin, TX 73301–0057

3.11.212.1.17  (01-01-2008)
Acknowledgments

  1. If the taxpayer requests acknowledgment of receipt of an extension form, and there is no indication that Receipt and Control has sent an acknowledgment, send an acknowledgment to the taxpayer.

    • If the taxpayer has included a photocopy of the form, stamp or edit the acknowledgement including the campus name and the received date and return it to the taxpayer.

    • If no photocopy is included, but the taxpayer requests an acknowledgement, you may either make a photocopy or send a letter to acknowledge receipt of the request. See IRM 3.11.212.1.20.

  2. If the taxpayer requests notification of approval or denial of the extension, and normal procedures for the particular extension form do not require notification, send a copy of the approval or denial to the taxpayer.

3.11.212.1.18  (01-01-2010)
Notification to Taxpayer

  1. When Form 4868, Form 7004, Form 2350 and Form 8892 are denied, Code and Edit must initiate manual correspondence to inform the taxpayer that the extension was denied. There is no automatic notice generated to the taxpayer for these forms. See IRM 3.11.212.6.2 for Form 2350 notification instructions and see IRM 3.11.212.1.20 for correspondence instructions.

    Note:

    For Form 2350, Code and Edit must also notify the taxpayer when the extension request is approved and the extension date.

  2. Especially in the case of disapproved extension requests, the taxpayer must be notified of the status of his request as soon as possible.

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

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

  5. On EPMF Form 5558 (MFT 74), a notice is generated on denied extensions based on the blocking series on the extension.

    1. Blocking series 800-899 generates a notice for denied not timely.

    2. Blocking series 100–699 is used for approved extensions. No notice is issued.

3.11.212.1.19  (01-01-2010)
Research Command Codes

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

    • Taxpayer's name and address

    • Taxpayer's name control

    • Filing requirements (for BMF and Employee Plan Master File (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 BMFOR 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, and 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, and FINDE, for more information on the use of these command codes.

3.11.212.1.20  (01-01-2010)
Correspondence

  1. When correspondence with the taxpayer is necessary, the following letters are available with their suggested uses. It is up to the employee to determine the letter best suited to the particular situation and to choose the appropriate paragraphs:

    1. Letter 3699C , 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 0296C , 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 0297C , 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 0333C , 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. Notate on the extension form the letter that was sent. For example, "3699C letter sent" .

    4. All extensions except EPMF Form 5558 are now processed through ERS, so you will reject the extension document by entering Action Code 211 in the bottom left corner of the form and leave the form in the batch.

      Exception:

      EPMF Form 5558 extension for Form 5500/5500-SF/5500-EZ/8955-SSA errors are still on paper registers, so you will edit CCC U in the upper left corner.

  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.

3.11.212.1.21  (01-01-2010)
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 & Mid-Size Business (LMSB) Division, that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

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

3.11.212.1.22  (01-01-2008)
Acceptable Signature

  1. A signature is required on Form 2350, Form 5558 extension for Form 5330, and Form 8868 (Part II).

  2. Return preparers may sign extension requests on the return preparer signature line using a rubber stamp, mechanical device, or computer software program. Only Form 2350 has a separate return preparer signature line, "Signature of preparer other than taxpayer." If the preparer is signing for the taxpayer, however, the signature must be handwritten.

  3. Tax Examiners are not expected to be handwriting experts. Treas. Reg. Section 301.6064-1 allows us to presume that the signature on a return, statement, or other document is the true signature of the person who actually signed the document.

3.11.212.2  (01-01-2006)
Document Perfection

  1. This subsection contains general processing information for 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.

3.11.212.2.1  (01-01-2009)
Name Control

  1. Underline the Name Control of the taxpayer. The ampersand (&) and hyphen (-) are the only special characters allowed in the Name Control. See the Name Control Job Aid for Individual Master File (IMF), Document 7071 and BMF Name Control Job Aid, Document 7071A.

    Caution:

    Form 7004 has different types of name control based on the type of return for which the extension is requested. To determine the Name Control, use the portion of the BMF Name Control Job Aid appropriate to the type of tax form the taxpayer has indicated on the extension. Figure 3.11.212-1 shows editing for corporation, estate and trust name controls.

    Figure 3.11.212-1
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 7004 Name Control Editing

  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 IMF:

    • The Name Control consists of four alpha characters.

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

    • Blanks may be present but only at the end of a Name Control.

    • No character may follow a blank.

  5. For BMF:

    • 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 be present but only at the end of a Name Control.

    • No character may follow a blank.

  6. Name Control for "BANKRUPTCY ENTITIES" :

    • Individuals—Use the first 4 characters of the last name of the Trustee, receiver, or debtor in possession.

    • Corporations and Partnerships—If the trustee or receiver is a corporation, use the first 4 characters of the corporation name.

      Exception:

      For corporations or partnerships filing an extension request for liquidating trust Form 1041, use the name control from the trustee or receiver's last name. If the trustee or receiver is a corporation, use the name control from the first 4 characters of the corporation.

  7. The Name Control for an estate (indicated by "Estate" or "Est." in the name line or Form Code 04 on Form 7004) 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.

    • See BMF Name Control Job Aid, Document 7071A , for more examples.

3.11.212.2.2  (01-01-2010)
Taxpayer Identification Number (TIN)

  1. For specific instructions for Form 8892, see IRM 3.11.212.8. All others, follow these instructions unless specific instructions for the form instruct otherwise.

  2. If illegible, other than 9 digits, or missing, check attachments.

    If TIN not found or there are multiple TINs and extension is Then
    Numbered Take no action.
    Unnumbered

    1. Research.

    2. If found, process extension.

    3. If not found: IMF-correspond requesting valid TIN.

    4. If not found: BMF-suspend to Entity for assignment of EIN.

    Exception:

    Form 4868 only. If no SSN is found and there is a Form W-7 attached, or the taxpayer has notated, "ITIN applied for" , do not correspond. See IRM 3.11.212.2.2(3) below.

  3. ITIN Issues-Form 4868 Only.

    1. If there is a Form W-7 attached, see IRM 3.11.212.1.17.

    2. If there is a notation "ITIN to be requested" , or other indication that an ITIN will be applied for, review the extension for normal approval/disapproval criteria and take the following action:

    IF THEN
    The extension request is NOT approved Follow normal procedures to notify the taxpayer that the extension request was not approved. Give the original extension request to your manager for preparation for destruction as classified waste. Since it has no SSN, it cannot be processed.
    The extension request IS approved Return the original request to the taxpayer with Form 6401. Check the box on Form 6401 that says, "You indicated on your extension request that you have requested or will request an Individual Taxpayer Identification Number..." Enter the extended due date on the blank line.

  4. If the address is missing or no reply is received after 30 days, give the extension to your manager for preparation for destruction as classified waste.

    Note:

    If you must correspond, and the taxpayer's address cannot be found (only the representative's or agent's address is present), correspond with the representative for the taxpayer's address. If no reply, give the extension to your manager for preparation for destruction as classified waste.

  5. When a Form SS-4, Application for Employer Identification Numbers, is attached to an extension, detach and route the Form SS-4 and related documents to the Entity Control function for immediate assignment of a TIN.

3.11.212.2.3  (01-01-2010)
Tax Period

  1. The Tax Period is four digits (YYMM) which define the year and month in which the taxpayer's tax year ends (e.g., if the tax year ending is September 30, 2010, edit Tax Period 1009). 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 (on Form 7004, edit to the right of "File a separate application for each return" ) 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 (0912).

  3. Determine the Tax Period from:

    1. The taxpayer's entry on Line 5a of the Form 7004

      Exception:

      Extensions for Forms 706-GS(D), 706-GS(T) and 1042 are always calendar year (no editing necessary).

    2. The taxpayer's entry on Line 1, 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 necessary).

    3. The tax period line immediately below the title of the Form 4868

    4. The taxpayer's entry on Line 1 of the Form 2350

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

    6. Form 8892. These must always be calendar year (no editing necessary).

    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 3.11.212.2.3(10), (11), and (12) below.

  5. A calendar year is 12 months that ends in December (Tax Period 0912-not necessary to edit).

  6. A fiscal year is 12 months that ends in any month other than December (edited Tax Period could be 0901 through 0911).

  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 6 days before, and not more than 3 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 (1009). If the ending date is October 25, use the numeric designation for October (1010).

    2. If the tax period is for more than 12 months or 53 weeks, follow procedures in 3.11.212.2.3(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 Forms 1042, 706-GS(D), 706-GS(T), 1041-A, and 5227 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, 2009 0912 (do not edit)
    Nov. 30, 2009 0911
    Feb. 28, 2010 1002
    Oct. 3, 2010 (52–53 week document) 1009
    Oct. 3, 2010 (Final Short period) 1010
    Oct. 25, 2010 (52–53 week document) 1010
    Oct. 25, 2010 (Final Short period) 1010

  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 3.11.212.1.20. 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.

3.11.212.2.4  (01-01-2010)
Received Date

  1. Every extension request form received by the IRS should be stamped by the receiving area (usually Receipt and Control) with a date indicating when it was received except timely filed, calendar year Forms 4868.

  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. If the Received Date entered on the form does not contain "IRS" or "Internal Revenue" , it is not a valid received date. Circle it out.

  5. If the received date makes the extension delinquent, and the postmark date is timely, circle out the received date and edit a timely received date on all extensions except timely filed calendar year Form 4868. See IRM 3.11.212.1.7.

    Note:

    A timely foreign postmark also makes the extension timely.

  6. On a timely filed calendar year Form 4868, just circle out the received date. No received date is necessary on a timely Form 4868. Figure 3.11.212-2 shows that the received date is circled out when the postmark date is timely. See Figure # 3.11.212-2 #.

    Note:

    This procedure must be followed for all Form 4868 determined to be timely filed, including those filed timely in June with box 8 or 9 checked and those with a postponed due date as a result of an official disaster declaration.

    Figure 3.11.212-2
    This image has been removed because it contains Official Use Only.
    Please click here for the text description of the image.

    This image has been removed because it contains Official Use Only.

  7. If a received date is required, and 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 U.S. Postal Service postmark date, private meter postmark, or date from a designated private delivery service.

    2. Revenue Officer's signature date.

    3. Signature date.

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

    5. Current date minus 10 days.

  8. 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.

3.11.212.2.5  (01-01-2010)
Computer Condition Codes

  1. A Computer Condition Code (CCC) may be used on Form 7004 and Form 8868.

  2. When required, edit the Computer Condition Code (CCC) in the upper middle margin of the form.

  3. Only one Computer Condition Code may be entered on each extension.

  4. The only valid code for Form 8868 is W. W is edited in ERS for this form.

  5. The valid codes for Form 7004 are L, Y (Y is reserved), and W.

    CODE FORMS USAGE
    L 7004 Edit when form is denied.
    W 7004 Edit if form covers a short tax period and an acceptable explanation is given for the short period. This bypasses the ERS check on tax period mismatches.
    Y 7004 Reserved.

  6. Only one CCC may be used on each document. If the Form 7004 extension is late, edit CCC "L" only. Do not edit CCC "W" .

  7. CCC is not edited on any other type of form.

3.11.212.2.6  (01-01-2010)
Extended Due Dates

  1. The Extended Due Date is the date the extension period ends. It is only edited on the following forms:

    • Form 2350 (AUSPC only)

    • Disapproved Form 4868

    • Extension for more than 6 months (AUSPC only)

    • Form 8892

    • EPMF Form 5558 extensions for Form 5500/5500-SF/5500EZ/8955-SSA.

  2. On approved Forms 4868, all Form 5558 extensions for Form 5330, all Forms 7004 and all Forms 8868, the extended due date is generated by the master file when the extension transaction posts.

    1. On approved Forms 4868 the extended due date will be generated using the taxpayer's legal return due date plus 6 months.

      Example:

      Return due date is 4/15/YYYY = generated extended due date will be 10/15/YYYY. Taxpayer's return due date is 6/15/YYYY = generated extended due date will be 12/15/YYYY.

    2. On approved Forms 7004 the extended due date will be generated using the taxpayer's legal return due date plus 6 months for extension requests for all returns except Forms 1041, 1065 and 8804. For those returns, the generated extended due date will be return due date plus 5 months for tax period 200809 and later.

    3. On approved Forms 8868, the extended due date is generated as return due date plus 3 months when Notice Code 1 is edited and as return due date plus 6 months when Notice Code 3 is edited.

    4. On approved Forms 5558 for Form 5330, the extended due date is generated as return due date plus 6 months when Notice Code 1 is edited.

3.11.212.3  (01-01-2010)
Processing Forms 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns

  1. This subsection contains instructions for processing Form 7004.

3.11.212.3.1  (01-01-2010)
General Information

  1. An approved Form 7004 grants an automatic extension of time to file for 6 months from the return due date for all forms except Forms 1065, 1041 and 8804. No signature and no reason for the extension is required. No additional extension of time to file is allowed. Forms 1065, 1041 and 8804 automatic extensions are for 5 months from the return due date for tax periods ending September, 2008 and later.

  2. The taxpayer will indicate the type of return being extended by entering a Form Code in the boxes on line 1a or 1b of the form.

    1. The Form Codes are listed on the bottom of the Form 7004.

      Example:

      If the taxpayer enters Form Code 09 in the boxes on line 1a, the extension request is for Form 1065.

    2. The Form Code is not transcribed, but is used by Code and Edit to determine which MFT to edit. See IRM 3.11.212.3.4.

    Note:

    If the Form Code is blank or illegible, the Form 7004 will be batched as a Form 1120 series by the Batching Function.

  3. Extension requests for Form 1120-C, Form Code 34, and Form 1120-F, Form Code 15, have different due dates and different processing instructions from other extensions for 1120 series returns. If you find one of these extensions batched with other types of extensions, separate and rebatch. See IRM 3.11.212.3.3.1 and IRM 3.11.212.3.3.3.

  4. Extensions for Form 1120–F (Form Code 15) must be processed in OSPC using an international File Location Code in the first two digits of the DLN. If the extension request is for Form 1120-F, take the following action:

    If Then
    Unnumbered Withdraw from the batch and send to the Ogden Submission Processing Center, per local procedures.
    Numbered Enter Action Code "650" to the bottom left margin of the form, prepare Form 4227 sending to OSPC, and leave in batch.

  5. If duplicate Forms 7004 are received (forms with the same EIN, name, form type, and tax period), the duplicate may be destroyed as classified waste.

    Exception:

    If the taxpayer has included a copy because the taxpayer wants a notification that the request was approved, send the notification per IRM 3.11.212.1.17.

  6. It is very important that Form 7004 is blocked and numbered correctly.

    • Extensions for Form 1120 series and Form 1066 must be Tax Class 3.

    • All other extensions must be Tax Class 2.

    • Extensions for forms other than 1120 series or 1066 must not be included in the same batch as extensions for 1120 series or 1066. If they are, separate and rebatch with Tax Class 2 forms.

    Note:

    Form 7004 with blank or illegible Form Code will be batched as Form 1120 series by the batching function.

  7. Consolidated Extensions – special procedures apply to corporations filing Form 1120, 1120-C, 1120-L, or 1120-PC only. See IRM 3.11.212.3.3.4for instructions.

  8. Attached Form 1138 - If Form 1138, Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback, is attached to Form 7004, take the following action:

    1. Make sure the taxpayer's name and EIN are present on the Form 1138. If missing or incomplete, edit from the Form 7004.

    2. Edit the Received Date from the Form 7004 onto the Form 1138.

    3. Detach and route the Form 1138 to Accounts Management BMF Carryback Team.

    4. Continue normal processing of Form 7004.

3.11.212.3.2  (01-01-2010)
Form 7004 Determination of Timely Filing

  1. It is extremely important that Code and Edit review the entire extension and attachments to correctly determine whether the extension was filed timely or not. See IRM 3.11.212.1.7 for general instructions.

  2. Extensions are often denied in error when the wrong received date is used in the determination or when the postmark date is not considered. This results in erroneous failure to file penalties, notices to the taxpayer and an increase in reconsideration requests.

  3. To be timely filed, the Form 7004 received date must be on or before the due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or the postmark date must be on or before the due date≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . See due date charts in 3.11.212.3.2(10).

    Note:

    If the due date falls on a weekend or holiday, consider the extension timely filed if received/postmarked on the following business day. In 2010, May 15 is a Saturday, so if the extension is due on May 15, an extension request with a postmark of May 17 would be timely.

  4. The following Figure 3.11.212-3 shows Form 7004 received date editing when the postmark date is timely:

    Figure 3.11.212-3

    This image has been removed because it contains Official Use Only.
    Please click here for the text description of the image.

    This image has been removed because it contains Official Use Only.

  5. Final short period Form 1120S (Form Code 25) - If the taxpayer files a short period extension for a final Form 1120S, consider the extension timely filed if it is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or postmarked on or before the due date of the full year return.

    1. Form Code 25 is entered on line 1a or 1b.

    2. A short tax year must be indicated on line 5a.

    3. "Final return" box must be checked on line 5b.

    Example:

    Form 7004 is filed for Form 1120S showing tax year beginning January 1, 2009 and ending June 30, 2009. The "Final return" box on line 5b is checked. Extension request received date is 03/02/2010. Although this would be late for tax period 200906, in this case, the extension request is considered timely filed because the due date of the full year return would be 04/15/2010.

  6. Foreign postmark - extensions with a timely foreign postmark should be considered timely filed.

  7. Line 2 box checked - Foreign corporation with no office or place of business in the U.S. exception to normal due date - if the taxpayer checks the box on line 2 of Form 7004, the extension request is timely filed if received/postmarked by the 15th day of the 6th month after the end of the tax period. It is not necessary for the extension to show a foreign address.

    Example:

    If the tax period on the extension is 200912, the extension request is due on 6/15/2010.

  8. Line 4 box checked - organization "qualifies under Regulations section 1.6081-5" exception to normal due date - Taxpayer checks line 4 (line 3 on earlier revision) box or otherwise indicates qualification under Treas. Reg. section 1.6081-5 - Corporations and partnerships are allowed an automatic extension of time to file and pay their taxes if they qualify under Treas. Reg. section 1.6081-5. Taxpayers may obtain this extension without filing an extension request (they are told to attach a statement to their return when they file), but may file a Form 7004 if they are unable to file their returns within the extended period.

    1. If the taxpayer indicates Treas. Reg. section 1.6081-5 relief, or checks the box on line 4 (line 3 on earlier revision) on Form 7004, consider the extension request to be timely filed (approve the request) if received/postmarked by the 15th day of the 6th month after the end of the tax year (6/15/YYYY for calendar year taxpayers).

    2. Leave the original received date on the extension.

    Note:

    It is not necessary for the extension to show a foreign address.

  9. Rejected electronically filed extension - If there is an indication on the extension or an attachment that the taxpayer attempted to file the extension electronically and it was rejected, the paper request must be filed by the later of the due date or 5 calendar days after the date the taxpayer was notified of the last rejection per instructions in Publication 4163, Modernized e-File (MeF) Information for Authorized e-File Providers of Forms 1120/1120S. The instructions to Authorized e-File Providers in Publication 4163 also cover the electronic filing of Form 7004.

  10. Officially declared disaster

    1. If the address on the extension is in a state covered by an officially declared disaster, and the extension is postmarked on or before the postponed due date granted by the Commissioner in the Federal Emergency Management Agency (FEMA) disaster memo, the extension is timely filed.

    2. An alert will be issued via Submission Processing Hot Topics web site whenever there is a change to extension due dates because of a disaster.

  11. Form 7004 due dates:

    1. Extension requests for Forms 706-GS(D), 706-GS(T), and 1042 - these forms are always filed for a calendar year (200912):

      Form Timely Postmark Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Master File Generated Extended Date
      706-GS(D)/706-GS(T) 04/15/10 ≡ ≡ ≡ ≡ ≡ 10/15/10
      1042 03/16/10 ≡ ≡ ≡ ≡ ≡ 09/15/10

    2. Extension requests for Form 1120 series (except Forms 1120-C and 1120-F) and Form 3520-A ( See IRM 3.11.212.3.3.1 for Form 1120-C due dates):

      Tax Period Timely Postmark Date* ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Master File Generated Extended Date
      200909 12/15/09 ≡ ≡ ≡ ≡ ≡ ≡ 06/15/10
      200910 01/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 07/15/10
      200911 02/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 08/15/10
      200912 03/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 09/15/10
      201001 04/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 10/15/10
      201002 05/17/10 ≡ ≡ ≡ ≡ ≡ ≡ 11/15/10
      201003 06/15/10 ≡ ≡ ≡ ≡ 12/15/10
      201004 07/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 01/15/11
      201005 08/16/10 ≡ ≡ ≡ ≡ 02/15/11
      201006 09/15/10 ≡ ≡ ≡ ≡ ≡ ≡ 03/15/11
      201007 10/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 04/15/11
      201008 11/15/10 ≡ ≡ ≡ ≡ ≡ ≡ 05/15/11
      201009 12/15/10 ≡ ≡ ≡ ≡ ≡ ≡ 06/15/11
      201010 01/18/11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 07/15/11

      Note:

      If taxpayer quotes Treas. Reg. section 1.6081-5, or checks box 4, consider the extension request timely filed if postmarked by the first business day on or after the 15th day of the 6th month after the end of the tax period (6/15/2010 for tax period 200912).

    3. Extensions requests for Forms 1041 (estate & trust), 1041-QFT, 1041-N, 1065, 1065-B, 1066 & 8804:

      Tax Period Timely Postmark Date* ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Master File Generated Extended Date (6 month ext) Master File Generated Extended Date (5 month ext-for 1041, 1065 & 8804)
      200908 12/15/09 ≡ ≡ ≡ ≡ ≡ ≡ 06/15/10 05/15/10
      200909 01/15/10 ≡ ≡ ≡ ≡ ≡ ≡ 07/15/10 06/15/10
      200910 02/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 08/15/10 07/15/10
      200911 03/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 09/15/10 08/15/10
      200912 04/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 10/15/10 09/15/10
      201001 05/17/10 ≡ ≡ ≡ ≡ ≡ ≡ 11/15/10 10/15/10
      201002 06/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 12/15/10 11/15/10
      201003 07/15/10 ≡ ≡ ≡ ≡ ≡ 01/15/11 12/15/10
      201004 08/16/10 ≡ ≡ ≡ ≡ ≡ 02/15/11 01/15/11
      201005 09/15/10 ≡ ≡ ≡ ≡ ≡ ≡ 03/15/11 02/15/11
      201006 10/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 04/15/11 03/15/11
      201007 11/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 05/15/11 04/15/11
      201008 12/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 06/15/11 05/15/11
      201009 01/18/11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 07/15/11 06/15/11

      Note:

      If the extension is for Form 1065 or 1065-B, and the taxpayer quotes Treas. Reg. section 1.6081-5, or checks box 4, consider the extension request timely filed if postmarked by the first business day on or after the 15th day of the 6th month after the end of the tax period (6/15/2010 for tax period 200912).

    4. Extension requests for Forms 1120-F and all requests with line 2 or line 4 box checked or taxpayer notation the business qualifies under 26 CFR section 1.6081-5:

    Tax Period Timely Postmark Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    200906 12/15/09 ≡ ≡ ≡ ≡
    200907 01/15/10 ≡ ≡ ≡ ≡ ≡ ≡
    200908 02/15/10 ≡ ≡ ≡ ≡ ≡ ≡
    200909 03/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡
    200910 04/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    200911 05/17/10 ≡ ≡ ≡ ≡ ≡
    200912 06/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡
    201001 07/15/10 ≡ ≡ ≡ ≡ ≡ ≡
    201002 08/16/10 ≡ ≡ ≡ ≡ ≡
    201003 09/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡
    201004 10/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    201005 11/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡
    201006 12/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡
    201007 01/18/11 ≡ ≡ ≡ ≡ ≡ ≡

3.11.212.3.3  (01-01-2010)
Special Instructions

  1. Certain extension requests require specific processing instructions:

    • Extensions for Form 1120-C (Form Code 34) - have later due dates than other Form 1120 series extensions. See IRM 3.11.212.3.3.1.

    • Extensions for Non-Master File (NMF) forms. See IRM 3.11.212.3.3.2.

    • Extensions for Form 1120-F (Form Code 15) must always have an edited Return Code. See IRM 3.11.212.3.3.3.

    • Extensions for consolidated returns. See IRM 3.11.212.3.3.4.

  2. The following subsections contain the specific instructions for processing extensions for these forms.

3.11.212.3.3.1  (01-01-2010)
Form 7004 for Form 1120-C OSPC

  1. Extensions for Forms 1120-C have special due dates. The following table shows the due dates for Form 7004 filed for Form 1120-C:

    Tax Period Timely Postmark Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Master File Generated Extended Date
    200903 12/15/09 ≡ ≡ ≡ ≡ 06/15/10
    200904 01/15/10 ≡ ≡ ≡ ≡ 07/15/10
    200905 02/15/10 ≡ ≡ ≡ ≡ 08/15/10
    200906 03/15/10 ≡ ≡ ≡ ≡ 09/15/10
    200907 04/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 10/15/10
    200908 05/17/10 ≡ ≡ ≡ ≡ 11/15/10
    200909 06/15/10 ≡ ≡ ≡ ≡ 12/15/10
    200910 07/15/10 ≡ ≡ ≡ ≡ ≡ ≡ 01/15/11
    200911 08/16/10 ≡ ≡ ≡ ≡ ≡ ≡ 02/15/11
    200912 09/15/10 ≡ ≡ ≡ ≡ ≡ ≡ 03/15/11
    201001 10/15/10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 04/15/11
    201002 11/15/10 ≡ ≡ ≡ ≡ ≡ 05/15/11
    201003 12/15/10 ≡ ≡ ≡ ≡ 06/15/11
    201004 01/18/11 ≡ ≡ ≡ ≡ ≡ ≡ 07/15/11

3.11.212.3.3.2  (01-01-2010)
Non-Master File Form 7004

  1. Form 7004 filed for Forms 8612, 8613, 8725, 8831, 8876 8924 and 8928 is processed to the Non-Master File (NMF) under program 75800. All are processed at CSPC.

    Note:

    The processing procedures for extensions for Form 8924 and Form 8928 have not been finalized. If you receive a Form 7004 with Form Code 35 (Form 8924) or 36 (Form 8928), it should be forwarded to NMF in CSPC and held until processing instructions are issued.

  2. CSPC only - If any Form 7004 filed for a NMF return is erroneously batched with master file Forms 7004 or vice versa, take the following action:

    • Unnumbered - pull from batch and follow local procedures to have the document rebatched under the correct program.

    • Numbered - edit Action Code 610 and prepare Form 4227 to request the document be renumbered to the correct program.

  3. These extension requests will be approved if timely filed.

    1. If the extension request is for Form 8725 or 8876 or 8924, always assume the extension is timely filed.

    2. If the extension request is denied, notify the taxpayer. See IRM 3.11.212.1.20.

  4. The following table has the due dates for NMF forms:

    Form Due Date
    8612/8613 15th day of the 3rd month after the tax period ending
    8831 15th day of the 4th month after the tax period ending
    8725 No determination of timeliness is necessary
    8876 No determination of timeliness is necessary
    8924 No determination of timeliness is necessary

3.11.212.3.3.3  (01-01-2010)
Form 7004 - Foreign Corporation - Form 1120-F OSPC Only

  1. Extensions for Form 1120-F (Form Code on line 1a or 1b is 15) must be processed in the OSPC only. Transship if filed at another campus.

  2. If the extension request is for Form 1120-F, consider the request timely filed if received/postmarked ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ by the 15th day of the 6th month after the end of the tax period. See IRM 3.11.212.3.2 for the timely postmark date chart.

  3. You must edit a Return Code in the margin to the right of Line 1a on all extensions for Form 1120-F. See Figure 3.11.212-4.

    1. If the line 2 box is checked, edit Return Code 6. Figure 3.11.212-4 shows editing of Return Code 6.

    2. If the line 2 box is not checked, edit Return Code 7.

  4. The File Location Code in the DLN for Form 1120-F extensions must be "60" . If it is not, have the Form 7004 renumbered for the correct File Location Code ("60" ).

  5. Follow all other normal editing procedures for Form 7004. See IRM 3.11.212.3.4.

    Figure 3.11.212-4
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Return Code Editing Form Code 15 (1120-F)

3.11.212.3.3.4  (01-01-2010)
Form 7004 Consolidated Applications

  1. These procedures apply to timely filed extensions for Form 1120, 1120-C, 1120-L, or 1120-PC only. If the taxpayer has indicated the extension request is for another type of return, process normally; this is not a consolidated application.

  2. Examine all applications to determine whether they are from parent corporations requesting extensions of time for subsidiary corporations in addition to parent. This requires examining all attachments as well as the applicable lines on the extension for evidence of consolidation.

    Exception:

    It is not necessary to review for subsidiaries if the extension request is denied. Follow normal disapproval actions. See IRM 3.11.212.3.6.

  3. If the consolidated application was filed in a site other than where the parent corporation would file (based on the parent's address), examine the entire extension request (front, back and attachments) to determine whether it is a "pseudo" application as further explained below.

    1. A "pseudo" application is merely an information copy of a bona fide application previously filed by a parent corporation on behalf of a subsidiary (or subsidiaries) located in a different area.

      Example:

      A Form 7004 bearing a parent address in Michigan was stamped received in Columbia, SC. On the reverse side, it listed two subsidiaries with South Carolina addresses and had the following notation: "Form 7004 is being filed in Detroit Michigan. The consolidated return will be filed in Detroit Michigan."

    2. If you find some notation which gives a clear indication of a "pseudo" condition, do not process the application. Give it to your supervisor. If there is not a clear indication of a "pseudo" condition, consider this an actual extension request.

  4. If the extension request is for Form 1120, 1120-C, 1120-L, or 1120-PC, use the following items to identify a consolidated Form 7004:

    • Box is checked on line 3 indicating that the parent intends to file a consolidated return, and/or

    • There is an attached list of subsidiaries

      Note:

      When Form 7004 is received with an attached list of the names of company shareholders with their SSNs, process normally. This is not a consolidated Form 7004.

  5. If the box on line 3 is checked, the parent corporation is required to attach a list with the names, addresses, and EINs of all members of the group that will be covered by the consolidated return. This is a legal requirement in order for the subsidiaries to be included in the extension to file.

    1. If no list of subsidiaries is attached, correspond for the listing. Use the 3699C letter and mail to the address of the parent corporation. When the reply is received, attach the listing to the Form 7004.

    2. If a list of subsidiaries is attached, and 5 or fewer subsidiary EINs are missing or invalid, research for the EINs for the subsidiaries. If not found, route to Entity Control for assignment of EIN(s).

    3. If a list of subsidiaries is attached, and the list shows "NONE" , " PENDING" , or "APPLIED FOR" for the subsidiary's EIN(s), research for the EIN. If not found, route to Entity Control for assignment of EIN.

    4. If a list of subsidiaries is attached, and more than 5 EINs are missing or invalid (this does not include those showing the words "NONE" , "PENDING" , or "APPLIED FOR." ) for the listed subsidiaries (with domestic address or U.S. Possession), correspond for the missing EIN's. Use the 3699C letter and mail to the address of the parent corporation. Continue processing the extension request. When the reply is received, associate it with the Form 7004.

    Exception:

    If the extension request is disapproved, don't correspond for subsidiary information. Follow normal disapproval actions. See IRM 3.11.212.3.6.

  6. Process the Form 7004 normally for the parent corporation.

    Note:

    It is not necessary to input a TC 460 for the subsidiaries.

3.11.212.3.4  (01-01-2010)
Editing Instructions - Form 7004

  1. Underline the Name Control. See IRM 3.11.212.2.1.

  2. There must be a valid TIN. See IRM 3.11.212.2.2.

  3. Edit the appropriate Tax Period based on the tax year the taxpayer has entered on line 5a. It's not necessary to edit the Tax Period if it is for the current calendar year (200912). See IRM 3.11.212.2.3.

    Exception:

    If the extension is for a short tax year, see change in accounting period instructions in IRM 3.11.212.3.4.1.

  4. The Received Date must be present. See IRM 3.11.212.2.4.

  5. The Figure 3.11.212-5 shows the location of edited lines for Form 7004:

    Figure 3.11.212-5

    This image is too large to be displayed in the current screen. Please click the link to view the image.

  6. Special SSN instructions for extensions for Form 706-GS(D)-TIN Type

    1. Extensions for Form 706-GS(D) may be filed using an EIN, if the distributee is a trust, or a SSN, if the distributee is an individual.

    2. If the taxpayer is filing for an extension for Form 706-GS(D), and the Taxpayer Identification Number on Form 7004 is formatted as a SSN (nnn-nn-nnnn), and the taxpayer's name is the name of an individual, not the name of a trust, assume the TIN is a SSN. Edit a "0" (zero) after the SSN. Otherwise, do not edit a TIN Type.

      Example:

      Taxpayer identification number is 111-23-4567, Name is Mary Smith, and Form Code entered on line 1 is 01 - assume the TIN is an SSN, and edit "0" at the end of the SSN.

  7. Edit the MFT - edit the two digit MFT code in the upper left corner of Form 7004 to indicate the type of return for which the taxpayer wants the extension. Figure 6 shows MFT editing when the taxpayer has requested an extension for Form 1065.

    1. If the extension is for one of the following Form Codes, this extension must be processed to NMF in CSPC - 28, 29, 30, 32, 33, 35.

    2. Determine the correct MFT based on the form code the taxpayer has entered on line 1a or line 1b . The list is in the following table.

      Note:

      The form code that is entered by the taxpayer in the boxes is not transcribed, so the correct MFT must be edited.

    If line 1 Form Code is The extension is for Form Then edit MFT
    01 706-GS(D) 78
    02 706-GS(T) 77
    04-07 1041 series 05
    08 1042 12
    09, 10 1065/1065-B 06
    11 1066 07
    12-26 1120 series 02
    27 3520-A 42
    31 8804 08
    34 1120-C 02

    Figure 3.11.212-6
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 7004 MFT Editing

  8. Follow these procedures for Form 7004 if multiple Form Codes or no Form Code is entered on line 1a/1b:

    1. Search the extension and attachments for a clear indication of which type of return the taxpayer is attempting to extend. Taxpayers may circle the form in the list at the bottom of the Form 7004 instead of entering a code on line 1a or 1b.

    2. If no indication, initiate research for filing requirements and edit the MFT based on filing requirements.

      Exception:

      If the taxpayer has indicated multiple form types, but they all have the same MFT (for example, 1120 and 1120-C are both indicated), no research is necessary. Just edit the appropriate MFT.

    3. Also edit the appropriate Form Code in the boxes on Line 1a or Line 1b as an aid to Batching.

    4. If the taxpayer doesn't have open filing requirements for any of the forms listed on the Form 7004, leave the MFT blank and continue processing. You are unable to determine timeliness, so no further editing is necessary.

  9. Edit the Return Code Form 1120-F extension only - the Return Code must be edited if the taxpayer is requesting an extension for a Form 1120-F. Edit the Return Code to the right of the boxes on line 1a:

    If Form Code is: And Then edit Return Code:
    15 Box on line 2 is checked (foreign corporation which does not maintain an office in US) 6
    15 Box on line 2 is not checked (foreign corporation which maintains an office in US ) 7

  10. Computer Condition Code (CCC) - when required, the CCC is edited in the middle of the top margin of the Form 7004

    1. Edit CCC "L" when the extension is denied.

    2. Edit CCC "W" to indicate a short tax year when the taxpayer has checked one of the boxes on line 5b. See IRM 3.11.212.3.4.1.

    3. Only one CCC may be edited. If both CCC "L" and CCC "W" apply, only edit CCC "L" .

  11. No editing is necessary to line 6 or line 7.

  12. If the extension request is filed late, follow disapproval actions. See IRM 3.11.212.3.6.

    1. Although the balance due must be paid in full to obtain the extension for some types of returns, it is difficult to make a determination of whether the balance due was paid with the extension request.

    2. If a balance due is shown on line 8, assume the balance due was paid using Electronic Federal Tax Payment System (EFTPS), a Federal Tax Deposit (FTD) coupon, or Electronic Funds Withdrawal (EFW).

3.11.212.3.4.1  (01-01-2010)
Short Tax Year—Form 7004

  1. Follow these instructions only if the taxpayer has indicated a tax year shorter than 12 months on line 5a.

  2. The taxpayer may indicate a tax period of less than 12 months because an initial return will be filed, a final return will be filed, the taxpayer is changing his accounting period, or the corporation is becoming or ceasing to be a member of a consolidated group.

  3. If a short year is indicated on line 5a and the "Initial return" , "Final return" , or "Change in accounting period" box is checked on line 5b of Form 7004, edit CCC "W" and edit the tax period as indicated by the taxpayer in YYMM format to the right of the words "File a separate application for each return." Figure 3.11.212-7 shows editing of CCC "W" .

    Figure 3.11.212-7
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Editing of CCC W

  4. If the extension is for a Form 1120 series return, and it is filing a short period extension (line 5a indicates a tax year shorter than 12 months) because it has become part of a consolidated group (may mention "Treas. Reg. section 1.1502.-76" , or "changing tax year to get in step with parent" , "will file a consolidated return" , or something similar, or may check "Consolidated return to be filed" box on line 5b), edit CCC "W" and edit the tax period as indicated by the taxpayer in YYMM format to the right of the words "File a separate application for each return."

  5. Only one CCC may be used on a document. If the extension is late, only edit CCC "L" . Do not edit CCC "W" .

3.11.212.3.5  (01-01-2010)
Form 7004 Approval Actions

  1. The Form 7004 will be approved if filed timely based on the return due date of the form being extended. See IRM 3.11.212.3.2.

  2. Although the balance due must be paid in full to obtain the extension for some types of returns, it is difficult to make a determination of whether the balance due was paid with the extension request. Assume the balance due was paid.

  3. Edit the form as instructed in IRM 3.11.212.3.4.

  4. If the taxpayer requests an extended due date of more than 6 months from the original return due date, continue processing the Form 7004 as approved, but correspond to notify the taxpayer that the extended due date can be granted for no more than 6 months. See IRM 3.11.212.1.20.

    Exception:

    If the extension request is greater than 6 months by one or two days because the 15th falls on a Saturday, Sunday, or holiday, approve the extension, but do not correspond.

3.11.212.3.6  (01-01-2010)
Form 7004 Disapproval Actions

  1. If the Form 7004 extension request is not approved, edit CCC "L" in the middle of the top margin of the form. The CCC "L" will prevent the computer from granting an extension of time for filing.

  2. Correspond to notify the taxpayer that the extension was denied and the reason for denial. See IRM 3.11.212.1.20. The application will remain in the process flow.

  3. If it appears that the taxpayer is requesting an ADDITIONAL extension beyond the original 5 or 6 month period (submitting a second extension request), research using BMFOL. If a TC 460 is posted, use the following guidelines:

    If Then
    Unnumbered extension

    • Return the extension request to the taxpayer using Form 6513.

    • Notate DENIED and enter the text " the Maximum Amount of Extension Time Allowed by Law is 6 months" . If available, a stamp may be used.

      Exception:

      If the extension is for Form 1041, 1065 or 8804, enter "the maximum amount of extension time allowed by law is 5 months."

    Numbered extension

    • Enter Action Code "640" on the bottom left margin of the form.

    • Correspond with the taxpayer to explain that the maximum extension allowed by law for taxpayers within the United States is 6 months (5 months for Form 1041, 1065 or 8804). Use 297C letter or Form 6513. See IRM 3.11.212.1.20.

    • Prepare Form 4227 and notate, "Return the Form 7004 to the taxpayer" .

    • Leave the application in the batch.
     
     
     

    Exception:

    If the request is for a foreign corporation or taxpayer abroad that does not have an office or place of business in the United States (box is checked on line 2 or there is a notation on the request or attachment), these should be worked in OSPC only. See IRM 3.11.212.3.3.3.

3.11.212.4  (01-01-2010)
Form 8868, Application for Extension of Time to File an Exempt Organization Return

  1. This subsection contains instructions for Forms 8868. See Figure 3.11.212-8a and 8b.

3.11.212.4.1  (01-01-2010)
General Information

  1. New for 2010 - a new code, the Return Code, must be edited on all extension requests for Form 990-T. See IRM 3.11.212.4.2.

  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, forward to Ogden EOCA Mail Stop 1112.

  3. Page 1 of Form 8868 is used to request an automatic 3-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 3-month extension for all returns except Form 990–T (corporation).

  5. Form 8868 filed for Forms 990-BL (MFT 56) and 6069 (MFT 57) 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 6 months.

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

    Figure 3.11.212-8a
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8868 Page 1

    Figure 3.11.212-8b
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8868 Page 2

3.11.212.4.2  (01-01-2010)
Document Perfection

  1. Perfect only Part I or Part II of Form 8868 as follows:

    If Then And If Then
    Taxpayer has entered information on both Parts I and II, or submitted a second request on a form that doesn't require a reason for the extension, Research to determine if the request is for the first or second extension. Previous extension has not been granted,
    		Assume the request is for an automatic 3-month extension.
    Previous extension has been granted, Assume the request is for an additional 3 months and deny the request if no reason is present.
    Taxpayer has completed only Part II, Verify the box in the upper right corner is checked. Box is checked, Continue processing.
    Box is not checked, Research BMFOLT to verify a previous extension has been granted. If not, deny the request for an extension unless sufficient need is shown for the full six month extension.

  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 has been met ( see IRM 3.11.212.4.7.).

    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 3.11.212.4.1(2) above, take the following action:

    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 to Form 8868. Note"renumber" on Form 4227.

  4. Perfect the Name Control, EIN, Tax Period, and Received Date as outlined in IRM 3.11.212.2.

  5. Determine the type of return to be filed from the box checked in the "check type of return to be filed" portion of Form 8868.

  6. Edit the MFT Code for the type of return in the upper left margin as follows:

    Form MFT
    990/990-EZ 67
    990-BL 56*
    990-PF 44
    990-T 34
    1041-A 36
    4720 50
    5227 37
    6069 57*

    Reminder:

    MFT 56 and MFT 57 must be processed to NMF in CSPC.

  7. If the type of return checked is a type of 990-T, a one digit numeric Return Code must be edited in the margin to the right of the section, "Check type of return to be filed" . See Figure 3.11.212-9 and Figure 3.11.212-10 for Return Code editing.

    If Then edit Return Code
    Form 990-T (corporation) box is checked 5
    Form 990-T (sec. 401(a) or 408(a) trust) box is checked 4
    Form 990-T (trust other than above) box is checked 5
    None of the Form 990-T boxes are checked Leave it blank

    Note:

    The Return Code is only edited on extensions for Form 990-T.

    Figure 3.11.212-9
    Return Code editing on Form 8868 Part I
    Please click here for the text description of the image.

    Return Code editing on Form 8868 Part I

    Figure 3.11.212-10
    Return Code editing on Form 8868 Part II
    Please click here for the text description of the image.

    Return Code editing on Form 8868 Part II

  8. Extension requests for Forms 6069 and 990-BL 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 5th month after the end of the Tax Period (05/15/2010 for Tax Period 200912).

    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.

  9. If multiple or no return boxes are checked, search Form 8868 and attachments for a clear indication of the type of return for which the taxpayer wants to extend the filing due date.

    If Then
    Unable to determine the MFT, Research using local procedures for the organization's filing requirements.
    Research is unsuccessful, Route to Entity.

  10. 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 3.11.212.4.2.1.

    • A Group Exemption Number (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 return

  11. 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 3.11.212.4.2.1.

3.11.212.4.2.1  (01-01-2010)
Group Return/IRA Trusts

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

    1. A Group Exemption Number (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 return

    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" , process the extension as a Form 990 group return.

  2. If return is a Group Return, in addition to normal editing of the return, also edit Group Code of "7" or "8" in the middle right margin of Part I or Part II, and do one of the following:

    If And Edit Group Code Then
    The GEN is present A list of subordinates is not attached, 7

    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 Input TC 460 for each subordinate organization on the list.
    The "whole group" box is checked A list of subordinates is not attached, 7 Continue processing.
    The "whole group" box is checked A list of subordinates is attached, 7 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 Input TC 460 for each subordinate organization on the list.
    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 Input TC 460 for each subordinate organization on the list.
    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 Input TC 460 for each subordinate organization on the list.

  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 Group Exemption Number (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, Input TC460 for each name/EIN on the list and continue processing the extension.
    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 Code and Edit to continue processing.
    Form 8868 is not approved, Follow denial procedures for Form 8868, Part I or Part II as applicable.

3.11.212.4.2.2  (01-01-2010)
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. Figures 3.11.212-11 and 3.11.212-12 show editing of the Notice Code.

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

    1. 1 - Approved first extension

      Note:

      This Notice Code will generate a 3-month extension unless the taxpayer files Form 990-T 501(c)(3) corporation, which will generate a 6-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.

    Figure 3.11.212-11
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8868 Part I Notice Code Editing

    Figure 3.11.212-12
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 8868 Part II Notice Code Editing


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