3.12.278  Exempt Organization Unpostable Resolution (Cont. 1)

3.12.278.7 
UPC 301 No Account Present

3.12.278.7.2  (01-01-2014)
UPC 301 Resolution

  1. Process UPC 301 cases with a pending TC 000 and no EO section as follows:

    1. Research IDRS to determine when the TC 000 is going to post.

    2. Input TC 016 with the proper status code to establish the EO section. See IRM 3.13.12.6.18 for the proper status code.

    3. Input the proper posting delay code, if necessary, to allow the TC 000 to post first.

    4. Release the unpostable using URC 0 or 6, as appropriate, and cycle to post after the TC 016.

  2. Process UPC 301 cases needing EIN research as follows:

    If Then
    You find an existing EIN with an EO section for the organization using CC NAMEE/NAMEB:
    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.

    3. Send a 3910C Letter to the organization informing of their correct EIN.

    You find an existing EIN with no EO section for the organization using CC NAMEE/NAMEB:
    1. Perfect the document with the correct EIN.

    2. Input TC 016 Doc. Code 80 to establish the EO Section. See IRM 3.13.12.6.18 to determine the proper status code.

    3. Release the unpostable using URC 6 and cycle to post after the TC 016.

    4. Send a 3910C Letter to the organization informing them of their correct EIN.

    You cannot find an EIN for the organization using CC NAMEE/NAMEB:
    1. Use CC ESIGN with MFI O to assign a new EIN.

    2. Input a TC 016 Doc. Code 80 to establish the EO section. See IRM 3.13.12.6.18 to determine the proper status code.

    3. Use the appropriate posting delay code to allow the TC 000 to post first.

    4. Release the unpostable using URC 6 and cycle to post after the TC 016.

    Note:

    If you correct an Unpostable 301 on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.

  3. Process UPC 301 RC 1 cases for MFT 47 (Form 8871) or MFT 49 (Form 8872) with TC 150 as follows:

    Note:

    The TC 150 for the electronic version of the Form 8871 or Form 8872 will have a name control of ZZZZ and the DLN will have a Doc. Code of 86. It will post to Master File as a TC 150 beginning January 2006. If all modules on IDRS show name control of ZZZZ, change to correct name control.

    1. Research CC IDRS for a pending or posted TC 000.

    2. If the TC 000 has posted, 0 code the unpostable TC 150 and post the return.

    3. If the TC 000 is pending, cycle delay to release the unpostable after the posting of TC 000.

    4. If the TC 000 has not posted, research the IRS 527 political organization web site (www.irs.gov/polorgs) by the EIN listed on the Form 4251. If the record is found, print Form 8871/8872. If the record is not found, 8 code the unpostable TC 150 to Rejects asking the DLN be cancelled.

      Note:

      Retrieve the DLN of the TC 150 from TXMOD if not available on the For 4251 or UPTIN.

    5. If the Form 8871/8872 is found on the web site, research CC NAMEB/CC NAMEE using the screen print of the organization's information.

      If Then
      You find an existing EIN:
      1. Perfect the screen print with the correct EIN.

      2. Release the unpostable using URC 6.

      3. Send a 3910C Letter to the organization informing them of their correct EIN.

      You can not find an existing EIN:
      1. Use CC ESIGN with MFI O to assign a new EIN. See IRM 3.13.12.6.18.19 for complete instructions on how to set up the account for political organizations.

      2. Release the unpostable with URC 6 and cycle delay to post the TC 150 after the TC 000.

    6. Perfect the printed Form 8871/8872 with the correct EIN using a black pen. Make a second copy of the perfected Form 8871/8872 and send to Entity M/S 6273 requesting they update ORACLE..

    7. Send the perfected Form 8871/8872 to Imaging. Across the top of the form in invisible orange ink write, "Re-image and destroy."

3.12.278.8  (01-01-2014)
UPC 302 TC 000 Already on the BMF

  1. RC 1 - A TC 000 matched a TIN on the BMF.

3.12.278.8.1  (01-01-2014)
UPC 302 Resolution - Unpostables

  1. All UPC 302 cases are assigned by GUF to B3 Category .

3.12.278.8.2  (01-01-2014)
UPC 302 Resolution

  1. Unpostables will receive both open cases and cases already closed by GUF using URC 2 as follows:

    • Any TC 000 Doc. Code 80 with a blocking series other than 990–999 is assigned to Unpostables as an open case

    • All other cases will be assigned to Unpostables after being closed by GUF using URC 2

  2. Compare the entity of the unpostable document with the entity on the BMF.

    Note:

    If you correct an unpostable on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.

3.12.278.8.2.1  (01-01-2014)
UPC 302 Unpostable Entity Does Not Match BMF Entity

  1. If the entity on the unpostable does not match the entity on the BMF, research for a better EIN. If you can not find another EIN, proceed as follows:

    1. If the unpostable is a TC action, release the unpostable using URC D;

    2. If the unpostable is a return, use CC ESIGN with MFI O to assign a new EIN to the unpostable entity; and

    3. Input TC 016 Doc. Code 80 to add the EO section, using the information from the unpostable document.

  2. If you can find another EIN for the unpostable entity, compare the information on this number with the information on the unpostable document.

    If Then
    The information on the unpostable document is the same as on the new EIN, Release the unpostable with URC D.
    The information on the unpostable document will update the new EIN, Release the unpostable using URC 6 and change the TC 000 to TC 016.

3.12.278.8.2.2  (01-01-2014)
UPC 302 Unpostable Entity Matches BMF Entity

  1. If the entity on the unpostable case matched the BMF, check the filing requirements for compatibility per UPC 329.

    If Then
    The BMF contains an 1120, 1065 or 1041 FRC and the unpostable document contains EO Status 01–02:
    1. Input TC 016 Doc. Code 63 to delete the BMF FRC.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The BMF contains both a Form 941/944 and Form 940 FRC and the unpostable document contains Subsection Code 03, 50, 60 or 70:
    1. Input TC 016 Doc. Code 63 to delete the Form 940 filing requirement and add Employment Code W.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The BMF contains a Form 941/944 FRC and Employment Code W and the unpostable Subsection Code is other than 03, 50, 60 or 70:
    1. Input TC 016 Doc. Code 63 to delete the Employment Code W and add the Form 940 FRC.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

  2. If the entity on the unpostable matches the BMF, the filing requirements are compatible but the Affiliation Code of the unpostable is 7 or 9 (subordinate organization) and the Affiliation Code on the BMF is 6 (parent organization), research the BMF for a better EIN for the unpostable organization.

    If Then
    A better EIN is found and the names are the same, Release the unpostable using URC 6 and change the TC 000 to TC 016.
    A better EIN is found but the names differ: Determine which name line is correct from attachments and return. If unable to determine, contact the organization to verify the correct name
    The BMF name line is correct:
    1. Release the unpostable using URC D.

    2. Re-input a TC 016 using information from the unpostable document to update the BMF.

    The unpostable name line is correct, Release the unpostable using URC 6 and change the TC 000 to TC 016.
    A better EIN cannot be found:
    1. Use CC ESIGN with MFI O to assign a new EIN to the subordinate.

    2. Input a TC 016, using the information from the unpostable document to establish the EO section.

    3. Release the unpostable using URC 6. Cycle delay.

3.12.278.9  (01-01-2014)
UPC 303 Name Control Mismatch

  1. RC 1 - A transaction with:

    • A Document Code other than 80/81 (except for a TC 150 for MFT 36) /50/53/63 and

    • A Transaction Code other than 001, 019, 14X, 650 (Doc. Code 97) for MFT 01/03/16, 796, 90X or 99X but greater than 000

      failed to match either:

    • Three out of four positions of the entity name control; or

    • The old name control; or

    • Three out of the four left-most non-blank positions of the entity sort name line; or

    • The four left-most significant characters of the first three words of the entity primary name line and then the sort name.

  2. RC 2 - A TC 650 (Doc. Code 97) for MFT 01/03/16 which has:

    • Re-sequenced four cycles, or

    • The 23C Date is equal to or later than the end of the tax period,

      failed to match either:

    • Three out of four positions (using the proximal method) of the entity name control; or

    • The old name control; or

    • Three out of four of the left-most non-blank positions (proximal) of the entity sort name line; or

    • The four left-most significant characters of the first three words of the entity primary name line and then the sort name line.

  3. RC 3 - A transaction (except TC 150 for MFT 36) with:

    • A Doc. Code 80/81/50/53/63, and

    • A transaction other than TC 001/019/14X/796/90X/99X but coded greater than 000

      failed to match either:

    • All four positions of the entity name control; or

    • The old name control; or

    • The four left-most non-blank positions of the entity sort name line; or

    • The four left-most significant characters of the first three words of the entity primary name line and then the sort name line.

3.12.278.9.1  (01-01-2014)
UPC 303 Resolution RC 1 & 3 - Unpostables

  1. Compare the transcribed name control with the name as shown on the BMF. If there was a spelling or transcription error, release the unpostable using URC A.

  2. If the return or document contains evidence of a name change or the established name line was misspelled, check for a pending TC 013. Process as follows:

    If Then
    A TC 013 is pending, Release using appropriate URC and cycle to post after the TC 013, if necessary.
    No TC 013 is pending and the return is not signed, Release the unpostable using URC A.
    No TC 013 and the return is signed, Input a TC 013. Release the unpostable using appropriate URC and cycle to post after the TC 013.
    No TC 013 and the name was misspelled Input a TC 013. Release the unpostable using appropriate URC and cycle to post after the TC 013.

    Note:

    See IRM 3.13.12.11.5, Exempt Organization Account Numbers for more information on name changes.

  3. If research indicates the unpostable EIN belongs to another organization, research for a better EIN.

    If Then
    A better EIN is found:
    1. Ensure the name control is correct.

    2. Perfect the document with the correct EIN.

    3. Ensure subsection is correct

    4. Release the unpostable using appropriate URC.

    5. Send a 3910C Letter to the organization informing them of their correct EIN.

3.12.278.9.2  (01-01-2014)
UPC 303 Resolution RC 2 - Unpostables

  1. Compare the transcribed name control with the name as shown on the BMF. If there was a spelling or transcription error, release the unpostable using URC A.

  2. If there is no transcription error, research BMF for a pending TC 013.

    If Then
    A TC 013 is pending, Release using appropriate URC and cycle to post after the TC 013, if necessary.
    No TC 013 is pending, Release the case with appropriate URC and change the name control to match the BMF.

  3. If the EIN on the unpostable belongs to another organization, research IDRS for a better EIN. If a better EIN is found:

    1. Ensure the name control is correct.

    2. Perfect the document with the correct EIN.

    3. Release the unpostable using URC 6.

    4. Send a 3910C Letter to the organization informing them of their correct EIN.

  4. If a better EIN can not be found, proceed as follows:

    If Then
    A better EIN cannot be found and there is a phone number for the organization:
    1. Contact the organization to resolve the discrepancy.

    2. Release the unpostable using the appropriate URC after making any needed changes.

    A better EIN cannot be found and you are unable to find a phone number for the organization,
    1. Assign a new EIN and put account in Status 40.

    2. Release the unpostable using URC 0.

    3. Cycle to post following the TC 016.

3.12.278.9.3  (01-01-2014)
UPC 303 Resolution

  1. UPC 303 cases will occur when a name change or the need for a new EIN is indicated.

  2. When an organization requests a name change, appropriate documentation may be required in order for the name change to be made.

    1. If the type of organization is a 1 on EDS or on CC BMFOLO, the organization is incorporated with the state. An amendment to the articles of incorporation along with proof of filing with the state are required.

    2. If the type of organization is a 2 on EDS or on CC BMFOLO, the organization is a trust. An amendment to the trust agreement is required along with the trustee(s) signature.

    3. If the type of organization is a 5 on EDS or on CC BMFOLO, the organization is an unincorporated association. An amendment to the articles of association, constitution, bylaws, or other organizing documents are required along with signature of at least two officers/members.

    If Then
    Accompanying information is present, Input a TC 013 with Doc. Code 63. Send a 252 C Letter to the organization acknowledging the change to its name.
    Accompanying information is NOT present, Inform the taxpayer with Letter 1224C the name change can not be made, unless one of the items listed above is present.

  3. Any request to change a name on an Exempt Organization account must be accompanied by appropriate documentation in order to be considered.

    Caution:

    See IRM 3.13.12.12.12.4.1 before changing a subordinate's name.

  4. Release the unpostable using appropriate URC and cycle to post after the TC 013.

    Note:

    If you correct an unpostable on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.

  5. If the appropriate documentation is not attached, inform the organization the name change cannot be made until the required information is provided using Letter 1224C. Release the unpostable with URC 6.

  6. If documentation of the name change is not required, proceed as follows:

    1. Input the TC 013 to change the name.

    2. Release the unpostable using appropriate URC and cycle to post after the TC 013.

    3. Send Letter 1224C to the organization acknowledging the name change.

  7. When the name lines differ and the return or document is for the subordinate of a group ruling, check for similarities (such as the lodge number, etc.).

    If Then
    You determine the organization is the same (lodge numbers agree, etc.):
    1. If the BMF NC is correct, release with appropriate URC.

    2. If the BMF NC is not correct, correct the subordinate's primary name line using instructions from IRM 3.13.12.12.12.4.1. Change the NC on the same TC 013. Release with URC 6.

    The organization is not the same, Research for correct EIN.

  8. When the need for a new EIN is indicated, research IDRS to determine if another EIN is already established for the organization.

    If Then
    You find another EIN for the organization, Check to ensure the name lines are the same.
    The name lines are the same:
    1. Release the unpostable using appropriate URC and the correct EIN.

    2. Research EDS to determine if Cincinnati has the correct EIN. Notify Cincinnati of the correct EIN if necessary.

    The name lines are different:
    1. Follow procedures above for determining which name is correct.

    2. Release the unpostable using appropriate URC with the correct EIN (and name, if necessary).

    3. Research EDS to determine if Cincinnati has the correct EIN. Notify Cincinnati of the correct EIN if necessary,

    You find another EIN but it’s not on CC INOLE/CC ENMOD and does not have a GEN:
    1. Input TC 000 using CC BNCHG or CC EOREQ to establish the action on the BMF.

    2. Input a TC 016 Doc. Code 80 to establish the EO section, using the appropriate PDC to post after the TC 000.

    3. Release the unpostable using appropriate URC and cycle to post after the TC 016.

    You find another EIN but it’s not on CC INOLE/CC ENMOD and does have a GEN:
    1. Input TC 000 using CC BNCHG or CC EOREQ to establish the action on the BMF.

    2. Input a TC 016 Doc. Code 80 to establish the EO section using the pilot voucher. Input the appropriate PDC to post after the TC 000.

    3. Release the unpostable using appropriate URC and cycle to post after the TC 016.

  9. If you do not find another EIN, proceed as follows:

    If Then
    The return has GEN:
    1. Use CC ESIGN to assign a new EIN to the organization.

    2. Use the pilot voucher and input a TC 016 to establish the EO section, using the appropriate posting delay code to allow the new EIN to establish first.

    3. Release the unpostable using URC 6 with the new EIN and cycle to post after the TC 016.

    The return does not have a GEN:
    1. Use CC ESIGN to assign a new EIN to the organization.

    2. Input a TC 016 to establish the EO section, using the appropriate posting delay code to allow the new EIN to establish first.

    3. Release the unpostable using URC 6 with the new EIN and cycle to post after the TC 016.

3.12.278.10  (01-01-2014)
UPC 304 Pre - ADP Tax Periods

  1. RC 4 - An input transaction for MFT 02/05/06/10/11/34 attempts to establish a tax module with a tax period prior to 6112.

  2. RC 5 - An input transaction for MFT 37/44/50 attempts to establish a tax module with a tax period prior to 7001.

  3. RC 6 - An input transaction for MFT 36/67 attempts to establish a tax module with a tax period prior to 7012.

3.12.278.10.1  (01-01-2014)
UPC 304 Resolution

  1. Unpostables 304 are all auto-closed by GUF. See IRM 3.12.279.

3.12.278.11  (01-01-2014)
UPC 305 FTD Discrepancy

  1. Due to the sensitive nature of these unpostable cases, it is imperative all tax examiners resolve them using the same instructions.

  2. Please refer to IRM 3.12.279 for resolution procedures for UPC 305 unless the 305 is for Form 8868 TC 620. To resolve UPC 305 RC 1 for a Form 8868 TC 620 refer to 3.12.278.12.

3.12.278.12  (01-01-2014)
UPC 305 Form 8868

  1. A TC 620/460 will unpost as a UPC 305 RC 1 for the following conditions:

    • TC 620 with Notice Code 3 attempts to post and there is a posted TC 620/460 with Notice Code 2 (denied 1st extension).

    • TC 620/460 with Notice Code 1 or 3 (approved extension) attempts to post to MFT 34 and there is no EO subsection or organization code is 00.

3.12.278.12.1  (01-01-2014)
UPC 305 Form 8868 Resolution

  1. Form 990-T has two due dates.

    • 401(a) & 408 are due 31/2 months following the tax period.

    • Corporations filing 990-T are due 41/2 months following the tax period.

  2. The above due dates should be used in determining the extended due date which should be granted on the Form 8868 for Form 990-Ts

  3. If the extension due date is incorrect; it may be necessary to delete the unpostable and input the TC 460 on REQ 77 to ensure the correct extended due date is input.

  4. Research all UPC 305 RC 1 Form 8868 to ensure the correct extended due date will post to Master File.

  5. The notice code is edited in the top middle portion on Form 8868 and is input to generate a notice to the filer indicating whether an extension of time to file their return was approved or denied. The following Notice Codes are used on Form 8868:

    • 1 = Approved 3 month extension or 6 months for 990-T corporations

    • 3 = Approved 2nd 3 month extension

    • 2 = Denied extension not timely

    • 4 = Denied 2nd extension missing signature

    • 5 = Denied no reason on 2nd extension

    • 6 = Denied 2nd extension not timely filed

    • 7 = Denied Miscellaneous

  6. The unposted extension is for MFT 34 (990-T corp. only), 37, 44, or 67 do the following:

    IF THEN
    Notice code 3 is edited on the top of the 8868, research IDRS to determine if a TC620/460 with a notice code 2 is posted to the same tax period.

    Note:

    A denied extension will appear on the module as a TC 620/460 but will have the original RDD and not an extended due date.

    There is a previously denied extension for the same MFT and tax period, and there is not an approved extension subsequent to the denied extension,
    1. Request rejects to input a notice code 7 on the record. Note: This will generate a denied notice for the 2nd extension since the organization did not have an approved 1st extension.

    2. "8" code the UPC to Rejects and request they change the notice code to 7.

    There is a denied TC 620 followed by an approved TC 460,
    1. Determine if the second extension is timely filed.

    2. If timely filed and notice code 3 is on the Form 8868, input the extension with TC 460.

    3. URC "D" to release the unpostable condition.

    4. If not timely filed, URC 8 the unpostable and request Rejects to change the notice code to 7.

    There is all ready an approved TC620/460 for the same MFT and tax period and the extended due date on the module is for 6 months, URC "D" to release the unpostable.
    The notice code is a 1 or 3, MFT 34, box checked is for a 990-T corporation, and no EO subsection is present,
    1. add EO subsection, using CC EOREQ, TC 016, Doc. Code 80, Definer Code B, Status Code 40 and FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post. Refer to IRM 3.13.12.9.12 for classification instructions.

    The notice code is 3 but Part I of Form 8868 is complete and there is not an approved first extension (notice code 1) on Master File, URC "8" the unpostable to Rejects and request they change the notice code to 1 (approved extension).

  7. The unposted extension is for MFT 34 401(a) or 408 trust and/or the words IRA are present in the name, take the following actions:

    IF THEN
    The notice code on the Form 8868 is a 1 or a 3, Research IDRS to determine if a TC 620/460 posted to the account for the same tax period.
    There is a previously denied extension (Notice Code 2) for the same MFT and tax period,
    1. URC 8 to release the unpostable to Rejects and request they input notice code 7.

    There is a previously approved extension (notice code 1 or 3) and the Form 8868 is requesting an additional 3 months. Master File indicates the organization has all ready been granted the maximum 6 month extension, URC D to release the unpostable.
    There are no filing requirements on Master File and the 401(a) or 408 box is checked or the words IRA is present, Add 990-T 2 FR to the account. URC 0 to release the unpostable. Cycle delay to allow the TC 016 to post.
    There is a notice code 3 on the Form 8868 and review of Master File indicates a previously approved extension (Notice Code 1) and RDD or extended due date is correct on Master File, URC 0 to release the unpostable
    The notice code is 3 but Part I of Form 8868 is complete and there is not an approved first extension (notice code 1) on Master File,
    1. URC "8" the unpostable to Rejects. Request they change the notice code to 1. Note: This will generate a denied notice for the 2nd extension since the organization did not have an approved 1st extension.

3.12.278.13  (01-01-2014)
UPC 307 Fiscal Month Discrepancy

  1. RC 1 - The fiscal month of Forms 990T (MFT 34), 1041A (MFT 36), 5227 (MFT 37), 990PF (MFT 44), or 990/990EZ (MFT 67) input transaction attempting to establish a tax module did not match the Fiscal Month of the account entity and:

    • It was not a transaction coded 150, 290 (B.S. 4XX), 460 (MFT not equal to 37/44/67), RPS 610, 620, 650, 660 (MFT not equal to 33/34/44) trying to establish the first 990T, 1041A, 5227, 990PF or 990 tax module; or

    • It was not a TC 150 containing Condition Code F or Y; or

    • It was not a TC 620 with Condition Code W.

  2. RC 2 - Any transaction except TC 421 and 424 with SPC 039, Source Code 60 and Employee Group Code 1000/2000 attempting to open a module whose period ending is greater than machine 23C date plus 12 months.

  3. RC 7 - TC 150 with Condition Code Y or TC 620 with Condition Code W not matching on the entity Fiscal Month with the input FYM not equal to 12 attempting to post to an account with a TC 054/055 posted. A corrected UPC 307 RC 7 will bypass this check.

3.12.278.13.1  (01-01-2014)
UPC 307 Resolution - Unpostables

  1. All UPC 307 cases with EO MFTs (except MFT 36, Form 1041A) are assigned by GUF to Entity Unpostables.

  2. Form 1041A (MFT 36) is not a primary return and will not unpost due to FYM mismatch; the organization must also file a Form 1041 or Form 5227. If a Form 1041 or Form 5227 was filed by the organization, release the unpostable using URC 6 to change the FYM to agree with the BMF FYM.

3.12.278.13.2  (01-01-2014)
UPC 307 Resolution All RCs

  1. EO Unpostables will correct UPC 307 unpostables for all MFTs except MFT 36 for Form 1041A. MFT 36 will bypass the UPC 307 check.

3.12.278.13.2.1  (01-01-2014)
UPC 307 UP is a TC 157

  1. Process as follows:

    If And Then
    Research shows there is no posting, TC 157, for any month in the year prior to the tax period of the unpostable,  
    1. Edit the correct tax period from Master File to the Form 5578.

    2. Resolve unpostable using URC 6 to the correct tax period.

    Research shows there is no posting, TC 157, for any month in the year prior to the tax period of the unpostable, there are no prior exempt returns posted
    1. Input TC 016 to change FYM to match the Form 5578.

    2. Resolve unpostable using URC 0 to post and cycle as necessary.

    Research shows there is a posting, TC 157, for any month in the year prior to the tax period of the unpostable, the Tax Period on the F5578 is between 12 and 18 months in the future,
    1. URC 8 to Rejects.

    2. Edit the correct tax period from Master File.

    3. Prepare Form 13271. Annotate in remarks for Rejects suspend as an early filed until 12 months prior to the tax period ending.

    Research shows there is a posted TC 157 for any month in the prior year the Tax Period on the F5578 is 18 months or more in the future,
    1. Correspond for a correct year ending.

    2. If the filer responds with a tax period 12 months or less in the future, release the unpostable by URC 6 to the correct tax period.

    3. If reply indicates the tax period on the Form 5578 is correct. URC 8 to Rejects. Prepare Form 13271. Annotate in remarks for Rejects to void the DLN and return the Form 5578 to the taxpayer telling them to file when the return is due.

    4. If no reply, URC 8 to Rejects. Prepare Form 13271. Annotate in remarks for Rejects to void the DLN.

3.12.278.13.2.2  (01-01-2014)
UPC 307 UP is a TC 590 cc 14

  1. If the unpostable is a TC 590 cc 14, check the Doc. Code of the transaction. If the Doc. Code is 90, indicating the transaction was generated from the posting of the group return:

    1. Input TC 016 to correct the BMF FYM to agree with the TC 590 FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

  2. Process as follows:

    If Then
    The Doc. Code is 49, indicating the transaction was manually input:
    1. Research for the GEN of the organization.

    2. Use CC EOGEN to determine the FYM of the group return.

    The TC 590 FYM agrees with the group return FYM:
    1. Input TC 016 to correct the BMF FYM to agree with the TC 590 FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    The TC 590 FYM does not agree with the group return FYM:
    1. Input TC 016 to correct the BMF FYM to agree with the parent FYM.

    2. Release the unpostable using URC 8, request Rejects change the FYM to agree with the parent FYM and cycle to post after the TC 016.

3.12.278.13.2.3  (01-01-2014)
UPC 307 UP is a TC 150

  1. If the unpostable is a TC 150, research CC BMFOL and OLSEIN to determine the organization's previous filing pattern and intent.

    If And Then
    The organization was filing using the same FYM as on the unpostable, yet the FYM on the BMF is different::  
    1. Input TC 016 to correct the BMF FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    If the organization is filing an FYM on the unpostable which is different from the BMF, check CC BMFOLI to determine the filing pattern: there is no lapse in filing history
    1. Change the FYM on the unpostable to match the BMF FYM.

    2. Release the unpostable using URC 6.

    If the organization is filing an FYM on the unpostable which is different from the BMF, check CC BMFOLI to determine the filing pattern: there is a lapse of one year or more in filing history
    1. Input TC 016 to correct the BMF FYM to match the unpostable FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    The organization was filing using the same FYM as on the unpostable and the unpostable is for a short period,   See 3.12.278.13.2.5 below.
    The organization's filing pattern does not indicate a preference:  
    1. Release the unpostable with URC 8 to change the FYM on the unpostable to agree with the BMF FYM.

  2. If the unpostable is a final return and the FY does not match Master File, use TC 016 Doc. Code 80 to change the FY to agree with the FY on the return.

  3. If "Rev. Proc. 85-58" is annotated on the return, process as follows:

    If Then
    The organization is exempt under 501(a), 501(c), or 501(d) and has not changed its tax year any time during the last 10 calendar years:
    1. Rev. Proc. 85-58 does apply and the organization does not have to file a Form 1128.

    2. Input TC 016 Doc. Code 80 to correct the BMF FYM.

    3. Release the unpostable using appropriate URC and cycle to post after the TC 016.

    The organization is exempt under Sections 526, 527 or 528:
    1. Rev. Proc. 85-58 does not apply.

    2. Contact the organization and correct the unpostable according to their response.

    3. If the organization does not reply, release the unpostable with URC 8 and request Rejects change the FYM on the unpostable to agree with the BMF FYM.

    The organization is exempt under Section 401(a):
    1. Rev. Proc. 85-58 does not apply.

    2. Contact the organization and correct the unpostable according to their response.

    3. If the organization does not reply, release the unpostable with URC 6 with an FYM of 12.

    The organization is a parent or subordinate of a group, See Rev. Proc. 76-10 below.

  4. Revenue Procedure 76-10 applies to parent organizations who apply for a change in tax year on a group basis. Rev. Proc. 76-10 does not apply if the organization:

    • Has unrelated business taxable income

    • Is a private foundation defined in Section 509(a)


  5. If the EO Status is 28, release the unpostable with a URC D. Since there are no filing requirements, the return will unpost as an UPC 329.

    Note:

    An organization in Status 28 does not have exempt status. To obtain exempt status, they must apply for exemption (only if they are 501(c)(3), 501(c)(9), 501(c)(17), or 501(c)(20) filers) by filing a Form 1023 or 1024 with the Cincinnati campus. If the organization files an EO return, they will be put in Status 40 while they apply for exemption.

  6. If "Rev. Proc. 76-10" is annotated on the return, process as follows:

    1. Input TC 016 Doc. Code 81 to change the FYM on all the subordinates.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

3.12.278.13.2.4  (01-01-2014)
UPC 307 UP is a TC 460 or TC 620

  1. If the unpostable is a TC 460 or 620, research CC INOLE or CC BMFOLE to determine the FYM.

  2. Look on the extension to determine if the extension is denied or approved by Code & Edit.

    1. If Code & Edit edited a Notice Code "2," "4," "5," "6" or "7" in the top middle portion of Form 8868 , the extension was denied.

    2. If Notice Code "1" or "3" is edited, the extension was approved.

  3. If the application was filed after the due date of the return for which an extension was requested:

    1. Re-input the TC 460 as a denied extension. See IRM 3.12.278.13.2.7 for instructions on how to input a denied TC 460.

    2. URC D the unpostable.

    3. Black out the DLN and send the extension to the organization with a 297C Letter.

  4. If the application was timely filed but the FY is incorrect:

    1. Determine the extended due date for the return using Exhibit 3.11.20-2. Circle out the incorrect due date and write the new extended date on the extension.

    2. Re-input the TC 460 with the correct extended due date. See IRM 3.12.278.13.2.7(4) and (5) for instructions on how to input an approved TC 460.

    3. URC D the unpostable.

    4. Black out the DLN on the extension.

    5. Send the extension to the organization with a 333C Letter explaining the extended due date of the return was changed.

  5. If a TC 150 is posted, and the application was filed after the due date of the return for which an extension was requested, follow the instructions in paragraph (3) above. If a TC 150 is posted, and the application was filed timely, follow the instructions in paragraph (4) above.

3.12.278.13.2.5  (01-01-2014)
UPC 307 Short Period Returns

  1. If the unpostable is for a short period (less than 12 months):

    If Then
    The return is marked "Final" but Condition Code F is not on the return, Release the unpostable using URC 6 and add the Condition Code F to the record.

    Note:

    If the CCC field is full, URC 8 the unpostable to have the F Code added to the record.

    The return indicates a change in accounting period and the unpostable is a Form 990 and the BMF FRC is 990–02:
    1. Input TC 016 to correct the BMF FYM to agree with the return.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    The return indicates a change in accounting period and all other cases require proof of change in accounting period, Proceed as in 3.12.278.13.2.6 below.

3.12.278.13.2.6  (01-01-2014)
UPC 307 Change in Accounting Period

  1. Research for an approved Form 1128 (TC 053) indicating a change in accounting period. Process as follows:

    Note:

    Assume Forms 990, 990PF and 990T filers are changing their accounting period under Revenue Procedure (Rev. Proc.) 85–58. See below. Whenever changing the BMF FYM, be sure to transfer any prepaid credits to the new module.

    If Then
    A TC 053 is on the account:
    1. Request the Form 1128 from Files, using the TC 053 DLN.

    2. Contact the organization and request an explanation for the discrepancy in their accounting period using 3916C ltr.

    You receive a Form 1128 and the period on the Form 1128 agrees with the unpostable return:
    1. Input TC 016 using CC EOCHG/CC BNCHG to correct the tax period on the Master File.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    You receive a Form 1128 and the period on the Form 1128 does not agree with the unpostable return, Contact the organization, request an explanation for the discrepancy in their accounting period, and correct the unpostable according to their reply.
    You don’t receive a Form 1128 and there is no reply from the taxpayer:
    1. For taxable returns, release the unpostable with URC 8 and change the unpostable FYM to agree with the BMF FYM.

    2. For nontaxable returns, release the unpostable with URC 6 and cycle to post after the TC 016.

  2. If the TC 053 is not on the account and the return is not a 990, 990PF or 990T, contact the organization and request an explanation for the discrepancy in their accounting period.

    If Then
    The organization responds with the appropriate evidence (previously approved Form 1128, etc.):
    1. Input TC 053 using CC BRCHG to correct the tax period on the BMF.

    2. Release the unpostable using appropriate URC and cycle to post after the TC 053.

    The organization responds the change is being made under IR Regulation 1.44 and the unpostable is a return:
    1. Input TC 053 using CC BRCHG to change the BMF FYM.

    2. Release the unpostable using URC 8, request Rejects add the audit code 3 and condition code Y to the record and cycle to post after the TC 053.

    The organization responds it has complied with Rev. Proc. 76–10 or 85–58 in the past:
    1. Input TC 016 using CC EOCHG to correct the tax period on the BMF.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The organization responds it now qualifies for a change in accounting period under Rev. Proc. 85–58, See 3.12.278.13.2.7 below.
    No response or the organization does not give adequate evidence:
    1. For taxable returns, release the unpostable with URC 8 and change the unpostable FYM to agree with the BMF FYM.

    2. For nontaxable returns, release the unpostable with appropriate URC..

3.12.278.13.2.7  (01-01-2014)
UPC 307 Short Period Returns and Extensions Filed Under Rev. Proc. 85–58 or Rev. Proc. 76-10

  1. See IRM 3.12.278.13.2.3(4) and (5) for Rev. Proc. 85-58 and 76-10 criteria.

  2. Process short period returns as follows:

    If Then
    The criteria above are met:
    1. Input TC 016 using CC EOCHG or CC BNCHG to change the FYM.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The criteria above are not met:
    1. URC D the unpostable.

    2. Black out the DLN.

    3. Inform the organization the change is not allowed using Letter 2233C. Attach the return to the 2233 C Letter.

  3. Process short period extensions as follows:

    If Then
    The criteria above are met:
    1. Send the extension to the organization with a 333C Letter explaining the extended due date of the return was changed.

    2. URC D the TC 620.

    3. Determine the extended due date for the return using Exhibit 3.12.212–2. Write the extended due date on the extension.

    4. Black out the DLN on the extension.

    5. Input a TC 460 using CC REQ77/FRM77 with the new extended due date for the return. See paragraphs (4) and (5) below for the TC 460 input instructions.

    The criteria above are not met:
    1. Re-input the TC 460 as a denied extension. See paragraphs (4) and (5) below for the TC 460 input instructions.

    2. Release the unpostable using URC D.

    3. Black out the DLN on the extension.

    4. Send the extension back to the organization with the 2233C Letter.

  4. To input a TC 460:

    • Access CC ENMOD with EIN

    • Access CC REQ77 with EIN, MFT 00, Tax Period 000000 , Name Control

  5. From the CC FRM77 screen, input:

    • TC>460

    • EXTENSION-DT>04-01-2010

    • DLN-CD>(See Note)

      Note:

      For MFT 34, input DLN Code 20 if approved or 25 if disapproved. For all other MFTs, leave the DLN Code blank if approved or 000 if disapproved.

    • REMARKS

3.12.278.13.2.8  (01-01-2014)
UPC 307 Unresolved UP

  1. If the unpostable cannot be resolved:

    If Then
    The unpostable is a return: Release the unpostable using URC 8 and request Rejects add audit code 3 and Condition Code Y to the record.
    The unpostable is an extension:
    1. Release the unpostable using URC 2 or 8, as appropriate.

    2. Inform the organization the extension cannot be approved due to the discrepancy of the tax periods.

    Note:

    Any remittances received should be posted to the BMF FYM.

3.12.278.14  (01-01-2014)
UPC 308 Employment Code/FR Mismatch

  1. RC 3 - Form 8872 (MFT 49) input on an odd numbered year and tax period on the Form 8872 is other than YYYY06 or YYYY12 or Form 8872 is filed in an even numbered year and tax period month = 01, 02, 04, 05, 07, 08, 10 or 11.

    Note:

    Exception: tax period month is 01 and filer type indicator = 01 or 05.

  2. RC 4 - Any return (TC 150) input to Form 940 tax module (MFT 10) and the entity Employment Code equals (G) "7" .

  3. RC 5 - Any transaction except:

    • TC 370 (Doc. Code 51); and

    • TC 650 (Doc. Code 97, 19(EFTP)),


    input to establish a MFT 10 tax module with alpha employment code and number 1 equivalent (W) "3" , (C) "8" , (F) "6" , or (T) "1" . The following transaction codes can establish a tax module and will unpost if the MFT is 10:

    • TC 150 return

    • TC 610 through 670 payments

    • TC 700, 710 generated from prior tax period credit transfer

    • TC 840 manual refund

    • TC 611 reversal of TC 610

    • TC 520 cc 85-88, 89 (bankruptcy) and cc 81 (bankruptcy)

    • TC 370 account transfer in

    • TC 474 return pending

    • TC 59X taxpayer reply transaction

    • TC 930 push code transaction

    • TC 940 Strike Force

    • TC 941 Intelligence Active

    • TC 960 Central Authorization

    Note:

    This check will be bypassed on a corrected UPC 308 RC 5 with EC W.

  4. RC 7 - Any MFT 34, TC 150, with a dollar amount greater than zero on Line 44f and the EO Status is other than 01, 02, 06, 07, 10, 11, 21, 24, 25, 30, 31, 40 or 42.

  5. RC 8 - Any MFT 01 TC 150, Doc. Code 35/36/41, with Condition Code "T" if the entity Employment Code is F and the 941 Filing Requirement Code is 00/01/02/03/04/41/06/07/11/12/13/14.

  6. RC 9 - Any transaction input to establish an MFT 10 tax module, except TC 650 (Doc. Code 97), if:

    • the entity EC is zero,

    • the entity EO Status is 01–19, and

    • the Subsection Code is 03/50/60/70.

  7. Beginning January of 2011, programming was added to restrict the input of employment codes A, F, G & T to employees in Compliance, Federal, State and Local Government (FSLG). Send cases that need input of those restricted government employment codes to FSLG for input. Perform all needed actions except the input of the employment code and mail the case with a completed transmittal, Form 3210 to FSLG at the following address:
    IRS
    FSLG
    300 East 8th ST
    Stop 4098AUS
    Austin, TX 78701

3.12.278.14.1  (01-01-2014)
UPC 308 Resolution All RC - Unpostables

  1. UPC 308 cases with MFTs 33, 34, 36, 37, 44, 46, 60 or 67 are assigned to B3 category by the GUF system. UPC 308 RC 9 with MFT 10 are assigned to B3 category as well.

3.12.278.14.2  (01-01-2014)
UPC 308 RC 3 Resolution

  1. Form 8872 is required to be filed monthly, quarterly, or semi annually dependant on the year. Even numbered years (i.e. 2006, 2008) must file quarterly or monthly. Odd numbered year (i.e. 2007, 2009) must file semi annually or monthly.

  2. For returns with a tax period for an even numbered year (i.e. 2008) check BMFOLI if filing a quarterly or monthly return and then take the following actions:

    IF THEN
    Research indicates the Form 8872 was filed each month or on a quarterly basis, release the unpostable using URC "0" .

    Note:

    The unpostable condition will by-pass the check .

    Research indicates the organization is filing semi-annually, release the unpostable using URC "0" . The organization will automatically be issued a CP 249B notifying them of a late filed Form 8872.

  3. Check BMFOLI to determine if the organization is filing a semi-annual or monthy return. For returns with a tax period for an odd numbered year (i.e. 2009) take the following actions:

    IF THEN
    Research indicates the Form 8872 was filed semi-annually or monthly, release the unpostable using URC "0" .

    Note:

    The unpostable will by-pass the check.

    Research indicates the organization is filing quarterly release the unpostable using URC "0" . The organization will automatically be issued a CP 249B notifying them of a late filed Form 8872.

3.12.278.14.3  (01-01-2014)
UPC 308 RC 4 Resolution

  1. "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them their Form 940 was received but they are not required to file.

  2. Verify the employment code is correct; see IRM 3.13.12.6.29 for assigning employment codes.

  3. If the employment code is correct and if the BMF has a Form 940 FRC, use CC BNCHG with TC 016 and delete the Form 940 FRC.

    1. Research for the tax period on the unpostable return.

    2. Determine if a manual refund is necessary. If a refund is necessary, close the unpostable and send to the information to Rejects for refund to be issued.

      Note:

      If the refund is for an employment code F, refer to the instructions in IRM 3.13.12.20.2 If/Then chart prior to sending to Rejects.


    3. Prepare a Form 13271 for routing to Rejects. Annotate the DLN should be canceled because taxpayer is not required to file Form 940.

    4. Correct the unpostable with CC UPRES and URC 8.

    5. Send 3997C letter unless a 3997C or 858C letter has been sent for same MFT and tax period.

  4. If the employment code is not correct:

    1. Use CC BNCHG and delete the employment code.

    2. Add 940 filing requirement if not present on Master File.

    3. Correct the unpostable with CC UPRES and URC 0.

3.12.278.14.4  (01-01-2014)
UPC 308 RC 5 Resolution

  1. "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them their Form 940 was received but they are not required to file.

  2. Process RC 5 as follows:

    1. Verify the employment code as in IRM 3.13.12.6.29.

    2. To avoid having erroneous tax modules established for the type of employer, any transactions which will create a tax module will unpost.

    3. Verify the document’s MFT was transcribed correctly. If transcribed incorrectly, correct the MFT on the unpostable.

    4. When the account is in status 97 with a Form 1120 filing requirement the employment code is not valid and the taxpayer is required to file Form 940. Remove the employment code and allow the return to post. Cycle delay as needed.

    5. If the unpostable document is a Mag. Tape Deposit, follow instructions in IRM 3.13.222.18. Before contacting the taxpayer, request CC BMFOL for any open module balances. If there are no outstanding balances, apply the money according to the taxpayer's instructions.

    6. Any payment TC 610, 650, 660, 670 etc. should be applied to outstanding balances beginning with the oldest tax period first before refunding. See procedures in IRM 3.13.222.58.

    7. If the unpostable is a TC 610 with a return DLN, and can be resolved without the return, then process as in IRM 3.13.222.58. If the return is needed to resolve the unpostable, hold the unpostable document until the unpostable TC 150 is received, then process both the payment and the return using instructions in IRM 3.12.278 and IRM 3.13.222.58.

    8. If the unpostable is a payment and (e) above does not apply, follow procedures in IRM 3.13.222.58.

    9. If the payment is not to be applied to another tax period or is to be refunded, transfer the credit per local campus procedures, and include a copy of the taxpayer correspondence and any research material.

    10. If payments are made to previous or future tax periods, apply to another tax period or initiate a manual refund as applicable.

    11. If TC 700 or TC 710, credit transfer, contact the preparer for the corrective action needed.

    12. If TC 840, manual refund, contact Accounting for the corrective action needed. Ensure the module is not a dummy account on IDRS. Research CC ENMOD/CC INOLE to verify the FRC if the second account is not on the BMF.

    13. If TC 611, reversal of TC 610, contact the preparer for the corrective action needed.

    14. If TC 520, cc 85-88, 89 (bankruptcy), or cc 81 (bankruptcy), contact Collection for corrective procedure.

    15. A TC 370 account transfer must not post just because it is a Doc. Code 51 or 52. If the employment code is correct, contact the initiator and inform them the employment code is correct, and the taxpayer does not owe this tax and an abatement will be required. Hold this case until the initiator responds. When the response is received, change the employment code to allow the return to post and cycle as appropriate. Close the case with URC 0. Route the case to EO Accounts to review the case for possible adjustment and abatement of taxes. Use Form 3210 to route the case to EO Accounts. If the Doc. Code 51 was prepared because of an account maintenance transcript, the money on the tax module can be refunded. After the money is refunded, input TC 591 for the tax period on the BMF.

      Note:

      If the Transaction Code is 590 or 591 and the Employment Code is C, F, G, T, or W, the system will URC 2 back to the originator.


    16. If TC 59X, check for a Form 940 FRC in the entity. If the Form 940 FRC is on the BMF, use CC BNCHG and delete the FRC. Use CC UPRES with URC D and void the document. If the Form 940 FRC is not on the BMF, use CC UPRES with URC D and void the document.

    17. If TC 930, 940, 941 or 960, contact the preparer for the corrective action needed. If unable to resolve with contact, void the unpostable with URC D.

    18. If the unpostable is the credit portion of a Doc. Code 34 credit transfer, apply to the account where the debit posted and route to the preparer. Close the unpostable with URC 6.

3.12.278.14.5  (01-01-2014)
UPC 308 RC 7 Resolution

  1. The F990T TC 150 will unpost as 308 RC 07 if the 'Small Business Health Care Tax Credit' field (line 44f) is greater than zero and the EO Status in the entity EO Status is other than 01, 02, 06, 07, 10, 11, 21, 24, 25, 30, 31, 40 or 42.

  2. Use the following table to correct UPC 308 RC 7:

    IF Then
    the EO status is other than those listed in 1 above
    1. Research EDS and prior filings to determine the correct status.

    2. If research provides a valid status, update the account by input of a TC 016, Doc Code 80.

    3. Zero code the unpostable and cycle delay to allow time for the TC 016 to post.

    the EO Status is other than those listed in 1 above and research does not provide a valid status
    1. 8 code the unpostable to Rejects.

    2. Instruct Rejects to remove the credit from line 44f and continue processing the Form 990-T.

    there is no EO Subsection for Forms 2009 and prior Follow instructions in number 11 of IRM 3.12.278.34.2" UPC 366 Resolution RC 1" to resolve the unpostable for Form 990–T claiming the Small Business Health Care Tax Credit.
    there is no EO subsection for Forms 2010 and subsequent Follow instructions in number 11 of IRM 3.12.278.34.2"UPC 366 Resolution RC 1" to resolve the unpostable for Form 990–T claiming the Small Business Health Care Tax Credit.

3.12.278.14.6  (01-01-2014)
UPC 308 RC 8 Resolution

  1. Effective with the first quarter of 1989, Form 941 filers who have employees on a seasonal or intermittent basis or Form 941E filers who do not have distributions every quarter can file their Form 941 on a seasonal/intermittent basis. However, at least one return must be filed every year, even if no wages or distributions were made during the year. To identify these filers, Computer Condition Code T is used.

    1. Seasonal/intermittent taxpayers who fail to check the seasonal/intermittent box on Forms 941 will be changed back to normal Form 941 filers.

    2. Federal agencies cannot file Forms 941 on a season/intermittent basis. Verify the employment code.

  2. Use the following chart to resolve UPC 308 RC 8:

    IF AND THEN
    The unpostable is Form 941: The employment code is correct,
    1. Input TC 016 to change the FRC to 02.

    2. Close with URC 8.

    3. Request Rejects remove the Computer Condition Code "T " and re-input the document.

      The employment code is correct and the FRC is 02,
    1. Input URC 8 to resolve the unpostable.

    2. Request Rejects remove the Computer Condition Code "T " and re-input the document

      If the employment code is incorrect,
    1. Input TC 016 to delete the employment code or input the correct employment code.

    2. Correct with URC 0 and cycle appropriately.

3.12.278.14.7  (01-01-2014)
UPC 308 Resolution RC 9

  1. "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them Form 940 was received but they are not required to file.

  2. Verify the unpostable entity is the same as the BMF.

    If Then
    The entities are not the same, Process as a UPC 301 or UPC 303 case.
    The entities are the same, Continue processing below.

  3. If the unpostable is Form 940 (TC 150), research to verify the subsection 03, 50, 60, or 70 is correct and update the Employment Code to W with CC BNCHG.

    1. Research for outstanding balances. If outstanding balances are found, print BMFOLI and send to Rejects.

    2. If no outstanding balances are located, send to Rejects for a manual refund.

    3. Notify the taxpayer the Form 940 should be not be filed using Letter 3997C.

    4. Release the unpostable with URC 8 requesting Rejects cancel the DLN because the taxpayer is not required to file Form 940.

  4. If the unpostable is a payment other than an RPS TC 610, research the BMF for any open modules with a balance due.

    If Then
    There is a balance due module(s):
    1. Apply the payment to the module(s).

    2. Notify the organization they are not liable for the Form 940 and inform them of the application of the money using 3997C letter.

    There are no debit balance modules:
    1. Initiate a manual refund of the unpostable payments per local procedures.

    2. Contact the taxpayer and inform them they do not have to file Form 940 using 3997C letter.

  5. If the unpostable is an RPS TC 610:

    1. Research for the TC 150, which should also be unpostable

      Note:

      If TC 150 is not unpostable, resolve the TC 610 if possible without waiting for the TC 150 to post.

      .

    2. Coordinate the resolution of both unpostables with the other assigned tax examiner.

    3. Notify the organization they are not liable for Form 940 using 3997C letter.

    4. Release both unpostables using URC 8 and request Rejects cancel the DLNs.

    5. Eight code the money to Unidentified if there are no other open modules for the organization by completing Form 3244, attach a copy of the appropriate CC TXMOD, URC 8 the unpostable TC 610 to Rejects indicating the organization is not liable for the money. Attach the Form 3244 to the Form 13271 which is sent to Rejects.

  6. If TC 59X, check for a Form 940 FRC in the entity. If the Form 940 FRC is on the BMF, use CC BNCHG and delete the FRC. Use CC UPRES with URC D and void the document. If the Form 940 FRC is not on the BMF, use CC UPRES with URC D and void the document.

  7. If the unpostable is the credit portion of a Doc. Code 34 credit transfer, apply to the account where the debit posted and route to the preparer. Close the unpostable with URC 6.

  8. Input TC 016 and add Employment Code W to the account.

3.12.278.15  (01-01-2014)
UPC 311 - Form 8038GC

  1. RC1 Reason Code 1 occurs when an input transaction coded other than TC 370 (Doc Code 51) with secondary TC 402 attempts to post to a tax module whose status is 29 (Account Transferred Out of MF).

3.12.278.15.1  (01-01-2014)
UPC 311 Resolution

  1. - The following table provides instructions for resolving UPC 311 RC 1:

    IF THEN
    a. the unpostable is not addressing the correct module, release using URC 6, 8 or 1, as appropriate.
    b. the unpostable is addressing the correct module, research for a posted or pending TC 402.
    1. located, release using URC 0 and cycle to post after TC 402.
    2. not located, release using URC 2 (route to the originator), or 8 (renumber to NMF), as appropriate.

3.12.278.16  (01-01-2014)
UPC 313 - No Related Transaction

  1. RC 1 - An input transaction failed to find its related transaction posted to the tax module of the same MFT code and tax period. The Exempt Organization related transactions are shown below:

    • TC 023 attempting to post and there is no open TC 024 in the entity module.

    • TC 071/072 attempting to post and there is no open TC 070 in the entity module.

    • TC 073 attempting to post and there is no open TC 071 in the entity module.

    • TC 073 unpostables are automatically closed by GUF using URC D.

    • TC 081 attempting to post and there is no TC 080 in the entity module.

  2. RC 8 - Any MFT 67 TC 290 with Civil Penalty Reference Number 689, unless there is a previously posted TC 6XX for an equal amount.

3.12.278.16.1  (01-01-2014)
UPC 313 Resolution - Unpostables

  1. UPC 313 RC 1 cases referenced in 3.12.278.16above are assigned to B3 category by GUF.

  2. All RC 8 cases will be released using URC 2 and routed back to the preparer.

3.12.278.16.2  (01-01-2014)
UPC 313 Resolution

  1. If the unpostable is a TC 023, check the Form 5768 to see if the proper transaction code was input.

    If Then
    Line 1 of Form 5768 is filled out:
    1. The transaction code should be a TC 024.

    2. Release the unpostable using URC 6. If unable, Release the unpostable using URC 8 and request Rejects correct the TC.

    The transaction code TC 023 is correct:
    1. Notify the organization using a 3905C Letter the lobby election reversal cannot be processed since there is no record of the original election to lobby. Black out the DLN on return and circle out date stamp. Send the Form 5768 back to the organization with the 3905C Letter.

    2. Release unpostable using URC D.

  2. If the unpostable is a TC 071, research UPTIN for an unpostable TC 070 for the organization.

    If Then
    The TC 070 for the organization is unpostable, Check to see if it is assigned.
    The unpostable TC 070 is unassigned:
    1. Have it assigned to you.

    2. Resolve both unpostables to post the TC 070 followed by the TC 071.

    The unpostable TC 070 is already assigned, Coordinate the resolution of both cases with the assigned tax examiner.
    There is no TC 070:
    1. Notify the organization the reversal of exemption from Social Security taxes can not be made since there is no record of the original exemption.

    2. Release the unpostable using URC D and destroy the form per local campus procedures.

  3. If the unpostable is a TC 072, research CC UPTIN for an unpostable TC 070 for the organization.

    If Then
    The TC 070 for the organization is unpostable, Check to see if it is assigned.
    The TC 070 unpostable is unassigned:
    1. Have it assigned to you.

    2. Resolve both unpostables to post the TC 070 followed by the TC 072.

    The TC 070 unpostable is already assigned, Coordinate the resolution of both cases with the assigned tax examiner.
    There is no TC 070, Release the unpostable using URC D.

  4. If the unpostable is a TC 081 and there is no TC 080 (denial):

    1. Notify the organization the reversal of a denial of exemption from Social Security taxes can not be made since there is no record of the denial.

    2. Release the unpostable using URC D and destroy the form per local campus procedures.

3.12.278.17  (01-01-2014)
UPC 316 Date/Money Amount Mismatch

  1. If any Unpostable 316 is received by EO Unpostable Control, reassign it to the originator.

3.12.278.18  (01-01-2014)
UPC 317 Inconsistent Extension Transactions

  1. This unpostable condition occurs when there is an inconsistent Extension Transaction.

  2. This unpostable occurs when a TC 620 attempts to post to a tax module and the extension date of the TC 620 is not equal to or greater than the due date of the return as extended; determine if the extension date was input correctly,

3.12.278.18.1  (01-01-2014)
UPC 317 Resolution - Unpostables

  1. If not input incorrectly, release using URC D. Input TC 460 with correct date. If module contains a TC 160, prepare Form 3465 to Accounts Management requesting abatement of penalty. If input correctly and posted TC 620/460 has a later extension date, release using URC D.

3.12.278.19  (01-01-2014)
UPC 323 Duplicate Transactions

  1. RC 2 - A TC 024 attempts to post to an entity which contains an unreversed TC 024.

  2. RC 3 - A TC 070 attempts to post to an entity, and

    • An unreversed TC 070 is already posted, or

    • A TC 071 is posted cycle 8440 or subsequent.

3.12.278.19.1  (01-01-2014)
UPC 323 Resolution - Unpostables

  1. All UPC 323 RC 2 and RC 3 cases referenced above are assigned by GUF to B3 category.

3.12.278.19.2  (01-01-2014)
UPC 323 Resolution RC 2

  1. Check the Form 5768 to see if the proper transaction code was input.

    If Then
    Line 1 is filled out, The transaction code should be a TC 024.
    Line 2 is filled out, The transaction code should be a TC 023.

  2. If the transaction code should be a TC 023, release the unpostable using URC 8 and request Rejects correct the transaction code.

  3. If the TC 024 is correct:

    1. Notify the organization this is the second election received and their Form 5768 can not be processed using a 3905C Letter. Include the Form 5768 with the letter. Blackout the DLN and circle out the date stamp on Form 5768.

    2. Release the unpostable using URC D .

3.12.278.19.3  (01-01-2014)
UPC 323 Resolution RC 3

  1. Request the Form 8274 source document folder from Files.

  2. Verify the entity on the Form 8274 matches the BMF.

3.12.278.19.3.1  (01-01-2014)
UPC 323 Entities Do Not Match

  1. If the entities do not match, research for another EIN. If you find another EIN:

    If Then
    You find another EIN for the Form 8274 organization, Check to see if there is an unreversed TC 070 or a TC 070/TC 071 combination already posted to the entity.
    There is a TC 070 posted:
    1. Perfect the Form 8274 with the correct EIN.

    2. Check CC BMFOLI for MFT 01 filings.

    3. If there are MFT 01 filings, check CC BRTVU to determine if the organization was paying FICA and Medicare for 3 consecutive quarters. If so, they have reversed their exemption from Social Security and Medicare taxes. Input TC 071 with an effective date determined from CC BRTVU research. If 10 years has past since the reversal of exemption, another election (TC 070) can be posted.

    4. Release the unpostable using URC D and place the Form(s) 8274 back in the source document folder and return the folder to Files.

    There is a TC 070/071 posted,
    1. Perfect the Form 8274 with the correct EIN.

    2. Notify the organization of their correct EIN and their Form 8274 can not be processed because their exemption has already been reversed.

    3. Release the unpostable using URC D and place the Form(s) 8274 back in the source document folder and return the folder to Files.

  2. If you cannot find another EIN for the organization:

    1. Use CC ESIGN to assign a new EIN to the organization.

    2. Perfect the Form 8274 with the new EIN.

    3. Release the unpostable using URC 6 with the new EIN.

3.12.278.19.3.2  (01-01-2014)
UPC 323 Entities Match

  1. If the entities match and there is a TC 070 already posted:

    1. Correspond with the organization, letting them know an election is already in place and furnish the election date.

    2. Release the unpostable using URC D.

    3. Place the Form 8274 back in the source document folder and return the folder to Files.

  2. If the entities match and there is both a TC 070 and a TC 071 posted:

    1. Correspond with the organization letting them know the election has already been reversed.

    2. Release the unpostable using URC D.

    3. Place the Form(s) 8274 back in the source document folder and return the folder to Files.

3.12.278.20  (01-01-2014)
UPC 324 Magnetic Tape Code

  1. RC 2 - An input transaction attempts to set the Form 940 indicator of the Magnetic Tape Code and any of the following conditions exist:

    • The entity Employment Code is T, W, F, G, or C; or

    • The entity EO Status is 01–19 and the current Subsection Code is 03/50/60/70; or

    • The Form 940 FRC is 07.

3.12.278.20.1  (01-01-2014)
UPC 324 Resolution - Unpostables

  1. ALL UPC 324 cases are assigned to B3 category by the GUF system.

3.12.278.20.2  (01-01-2014)
UPC 324 Resolution

  1. TheMAG-TAPE)/FTD-CD on CC ENMOD and the "MTC" on CC ACTRA and hard copy transcripts indicate which return is being filed on magnetic tape.

  2. The Magnetic Tape Codes are as follows:

    Code Definition
    0/blank No returns filed on magnetic tape
    1 Form 941 filed on magnetic tape
    2 Form 940 filed on magnetic tape
    3 Forms 941 and 940 filed on magnetic tape

  3. Research to determine if the employment code, EO status and subsection code, or Form 940 filing requirement is correct.

    If Then
    The employment code, EO status and subsection code, or Form 940 filing requirement is correct and the unpostable is a Doc. Code 63:
    1. Release the unpostable using URC D.

    2. Determine if the correct Mag. Tape Code was input. If an incorrect code was input, use CC BNCHG to input the correct Mag. Tape Code. If the correct code was input, do nothing else.

    The employment code, EO status and subsection code, or Form 940 filing requirement is correct and the unpostable is a TC 960 or 962: URC 2 back to the originator.
    The Employment Code, EO Status and Subsection Code, or Form 940 filing requirement is incorrect:
    1. Input TC 016 using CC BNCHG or CC EOCHG, as appropriate, to correct the BMF.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

3.12.278.21  (01-01-2014)
UPC 329 Filing Requirement Mismatch

  1. RC 1 - An input transaction attempting to update the filing requirements or create a tax module which is inconsistent with the current filing requirements.

  2. RC 2 - An input transaction meeting the RC 1 criteria and the entity contains an EO section with a current EO Status of 22, 41, 70-72.

3.12.278.21.1  (01-01-2014)
UPC 329 Resolution RC 1 & 2 - Unpostables

  1. All UPC 329 RC 1 cases for TC 150, TC 157 and TC 620/460 (EO MFTs) are assigned by GUF to B3 category.

  2. All UPC 329 RC 2 cases for TC 150, TC 157, and TC 620/460 (EO MFTs) are assigned by GUF to B3 category..

3.12.278.21.2  (01-01-2014)
UPC 329 Resolution RC 1 & 2 General Instructions

  1. These instructions are general in nature. Specific instructions can be found in 3.12.278.21.3 through 3.12.278.21.13.

  2. Always perform complete research. See IRM 3.12.278.3 for research procedures. If a return has posted on Master File which matches exactly with the unpostable return, 8 code the unpostable return to cancel the DLN and associate with the posted return.

    Note:

    Some organizations are mandated to file electronically. If the unpostable return is Form 990 or 990–PF and was filed electronically and a paper return has been filed, post the e-filed return and do not request to cancel the DLN. You can identify an organization mandated to file electronically by the E-file mandate indicator of 1 posted to IDRS on page 1 of CCTXMOD.

  3. A TC 022 cannot be input if certain freeze codes are on the accounts. Many of the following instructions require a TC 022 input. If a freeze code condition prevents a TC 022, the freeze code must be resolved prior to input of the TC 022. If possible, update to a good status without input of the TC 022. If an account cannot be updated without input of a TC 022 and freeze codes on the module prevent input of the TC 022, contact EO Accounts to resolve the freeze codes. The IDRS Unit and USR Database (IUUD) can be used to locate contact numbers for EO Accounts teams 04374, 04375 or 04376 at the following web address: http://iors.web.irs.gov/homeIUUD.aspx.

    Note:

    If the freeze code is an -L freeze input by a TC 424, it may be necessary to contact EO Exam for resolution. If a freeze code condition prevents updating or if a -L freeze is present and you are unable to resolve, the Lead will contact the TEGE Analyst with oversight of the EO Unpostable process for resolution.

  4. If the unpostable entity and BMF entity are the same, research CC INOLE/CC ENMOD/EDS to determine if the BMF or the unpostable filing requirements are correct.

    If Then
    It appears the unpostable is correct:
    1. Input TC 016 to correct the BMF.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    It appears the Master File is correct, Contact the taxpayer to find out why the unpostable return was filed.
    The taxpayer responds the correct return was filed and provides a copy of the exemption letter and the BMF is incorrect, See IRM 3.12.278.21.12 to change the filing requirements.
    The taxpayer responds with the correct return and a remittance was paid with the unpostable:
    1. Prepare Form 3244 and post the credit as a payment to the proper account if the taxpayer wants it applied to another type of tax.

    2. Post it to a settled account to allow the refund if the taxpayer wants the payment refunded.

    3. Do not refund any amount without researching for open balances first.

    The taxpayer responds with the correct return and there was no remittance:
    1. Write "DO NOT PROCESS" on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN.

    2. Release the unpostable using URC 8 and request Rejects cancel the DLN.

    3. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed.

    4. Edit the received date from the unpostable return to the return being sent for processing.

    5. Request Rejects forward the correct return for processing .

    The return filed is an 1120 and the account on IDRS shows they are ruled as a 501(c)(12) or 501(c)(15) Add 1120 filing requirements using BNCHG, Doc Code 63, FYM and 1120-01 FR for 501(c)(12) and 1120-04 FR for 501(c)(15)..

    Note:

    1120 and 990 FR are compatible if the organization is ruled as a 501(c)(12) or 501(c)(15) organization.

    The unpostable is Form 1120 or 1041 and another EIN is not found:
    1. Update the account to EO status 20 and add the correct filing requirements as necessary for the form filed.

    2. Use appropriate URC to release the unpostable and cycle delay to post after the TC 016.

    3. Update the account with the previous status using TC 016. Delay 3 or more cycles to post after the return.

    No reply from the organization, Follow the specific instructions for each form found in IRM 3.12.278.21.3 through 3.12.278.21.13.

  5. If the BMF entity and unpostable entity are not the same, another EIN is found, and the filing requirements are compatible:

    If Then
    Refer to the compatibility chart below)
    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.

    3. Send a 3910C Letter indicating the correct EIN to the organization.

    Upostable MFT Filing Requirement is not compatible with
    01 (941) 941 (FRC = 09 or 10) (with Doc. code not equal to 51 or 52)
    02 (1120) 942, 1041 , 1065 706GS(T), 1041-A, 5227, 1066
    990C/1120-C (FRC = 1 unless F1120 FRC = 07)
    990-T (FRC = 1 unless F1120 FRC = 03, 04 or 09)
    990-T (FRC = 2)
    990-PF (FRC = 1 unless EO Entity Status = 19 0r 22)
    990 (FRC = 03 or 07)
    990 (FRC = 04, 06 or 13 unless F1120 = 09)
    990 (FRC = 01 or 02 unless F 1120 = 01 and EO Subsection = 12 or F1120 FRC = 03, 04 or 09)
    8752 (unless F1120 FRC = 02)
    05 ( 1041) 1120, 1065, 990-C/1120-C, 990-T, 1066, 8752
    990 (FRC = 03-07)
    990 (FRC 01-02 unless EO Subsection = 91)
    990-PF (unless EO Subsection = 92)
    06 (1065) 942, 1120, 1041, 1066, 990-C/1120-C, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 706GS(T)
    07 (1066) 1120, 1065, 1041, 8752, 990-C/1120-C, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 942, 706GS(T)
    15 (8752) 942, 1041, 1066, 990-C/1120-C, 990-T, 1041-A, 5227, 706GS(T), 1120 (FRC not equal to 02)
    33 (990-C/1120-C) 942, 1041, 1065, 1066, 8752, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 942, 706GS(T), 1120 (FRC not equal to 07) if 990-C/1120-C (FRC = 1)
    34 (990-T) 942, 1041, 1065, 1066, 8752, 990-C/1120-C, 1041-A, 5227, 706GS(T), 990 (FRC = 03), 990 (SS = 91), 1120 (FRC = 01, 02, 06, 07, 10, 11, or 14 - 19
    36 (1041-A) 1066, 8752, 1120, 1065, 990-C/1120-C, 990-T, 990-PF, 990
    37 (5227) 1120, 1065, 1066, 8752, 990-C/1120-C, 990-T, 990-PF, 990, 1041/706GS(T), (unless EO Subsection = 90)
    44 (990-PF) 942, 1065, 1066, 8752, 990-C/1120-C, 1041-A, 5227, 990
    1120 (FRC = 01 unless EO Entity Status = 19 or 22)
    1120 (FRC = 02, 06, 10, 11, 14-19
    1041/706GS(T) (unless EO Subsection = 92)
    990-T (FRC = 02)
    50 (4720) 942, 1065, 1066, 8752, 990-C/1120-C
    1120 (FRC = 02, 06, 07, 10 or 11)
    990 (FRC = 03)
    67 942, 1065, 1066, 8752, 990-C/1120-C, 1041-A, 5227, 990-PF
    1120 (FRC = 02, 06, 07, 10,11,14 - 19)
    1120 (FRC = 09 and SS-15)
    1041/706GS(T) (unless EO Subsection = 91)
    1120 (FRC = 01 unless 990 FRC = 01 or 02 and EO Subsection = 12)
    990-T (FRC = 02)
    990-T (Subsection = 91)
    77 (706GS(T) 8752, 990-C/1120-C, 990-T, 1066, 1120, 1065
    990 (FRC = 03, 04, 06, 07 or 13)
    990 (FRC = 01 or 02 unless EO Subsection = 91)
    990-PF (unless EO Subsection = 92)

  6. If the BMF entity and unpostable entity are not the same, do the following:

    If Then
    Another EIN is found and the filing requirements are incompatible, Research to determine if the BMF or the unpostable filing requirements are correct.
    It appears the unpostable is correct:
    1. Input TC 016 to correct the BMF.

    2. Release the unpostable using URC 6 with the correct EIN and cycle to post after the TC 016.

    The unpostable is for a Form 1120 or 1041 and another EIN is not found
    1. Place the account in Status 20 and add the correct filing requirements as necessary for the form filed. (i.e. if the unpostable is a Form 1041 add 1041 filing requirements).

    2. URC "0" the unpostable. Cycle to post after the TC 016.

    The unpostable is for a Form 1120 or 1041 and another EIN is not found and the organization is part of a GEN
    1. Place the account in Status 28 and add the correct filing requirements as necessary for the form filed. (i.e. if the unpostable is a Form 1041 add 1041 filing requirements).

    2. URC "0" the unpostable. Cycle to post after the TC 016.

    The unpostable is for a Form 1120S Refer to IRM 3.13.222.64 BMF Entity Unpostable Correction Procedures
    It appears the Master File is correct, Contact the taxpayer by phone or correspondence to determine why the return was filed. If correspondence is required, suspense the case for up to 45 days or until a response is received.
    The taxpayer responds the correct return was filed and provides a copy of the exemption letter and the BMF is incorrect,
    1. Use TC 000, 012 or 016, Document 80, to add a positive FRC to the BMF. The validity and consistency checks will be performed when the input FRC is positive; i.e., greater than zero.

    2. To delete an EO FRC, use Document Code 80 or 63. If the input is only to delete a BMF FRC, use CC BNCHG. No definer code is necessary as long as the only change being made is to delete the FRC. However, if you are using CC EOCHG and the only action is to delete a FRC, the input must be as follows:
      Document Code must be 80.
      TC must be 016.
      Remarks must be input.
      Input zero in FRC being deleted

      Note:

      Never use CC EOCHG to delete or update a Form 990T, or a non-EO FRC, unless there is an EO Section already on the BMF, or you are adding an EO Section for the first time.

    3. Always input the fiscal year month if the FRC is for Forms 990, 990PF, 990T, 5227, 1041, 1065 or 1120.

    The taxpayer responds with the correct return and a remittance was paid with the unpostable:
    1. Prepare Form 3244 and post the credit as a payment to the proper account if the taxpayer wants it applied to another type of tax.

    2. Post it to a settled account to allow the refund if the taxpayer wants the payment refunded.

      Note:

      If amount is greater than $25,000, follow manual refund procedures.

    3. Do not refund any amount without researching for open balances first.

    The taxpayer responds with the correct return and there was no remittance:
    1. Write "DO NOT PROCESS" on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN.

    2. Release the unpostable using URC 8 and request Rejects cancel the DLN.

    3. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed.

    4. Edit the received date from the unpostable return to the return being sent for processing.

    5. Request Rejects forward the correct return for processing .

    No reply from the organization, Follow the specific instructions for each form found in IRM 3.12.278.21.3 through 3.12.278.21.13.

  7. If the BMF entity and unpostable entity are not the same and another EIN can not be found use CC ESIGN to assign a new EIN.

  8. If the prior EO Status Code is 01 or 02 and the current EO Status Code is an inactive code, process as follows:

    If Then
    The current EO Status Code is 20, 22, 28, 29, 41, 70-72 and the tax period on the return is prior to the current status code date:
    1. Update the EO Status to 01 with a TC 016 Doc Code 80, Definer Codes AB.

    2. URC 0 to post the return and cycle to post after the TC 016.

    3. Return the status code to its prior status with another TC 016 and delay for 3 cycles to allow posting after the TC 150.

      Note:

      If the account was in Status 28 , you must allow the TC 150 to post prior to input of the TC 016 to return it to the prior status. The GEN file does not recognize cycle delays and will cause an error to generate to the GEN file.

    The current EO Status Code is 21:
    1. Update the EO Status Code to 01 with a TC 016 Doc. Code 80 Definer Codes AB.

    2. URC 0 to post the return and cycle to post after the TC 016.

  9. If you correct an unpostable on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.


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