3.12.278  Exempt Organization Unpostable Resolution (Cont. 2)

3.12.278.21 
UPC 329 Filing Requirement Mismatch

3.12.278.21.3  (01-01-2015)
UPC 329 Resolution RC 1 & 2 - Form 990/990EZ/990-N

  1. The tables below show the posting and compatible filing requirements for Form 990 and a quick reference chart for correction of unpostable Form 990 cases.

    Transaction Code Tax Class Document Code MFT FRC
    150 4 09/89/90/92/93 67 01, 02, 03, 06, 07, 13,
    Compatible Returns FRC-01 Over $50,000 FRC-02 Under $50,000 FRC-03 Group Return FRC-06 Church FRC-07 501(c)(1) GOVT FRC-13 Religious CL Code 7
    IRC 501(c), 501(e) and 501(f) 990T-01
    1120-POL-9
    1120L-03
    1120-04
    4720
    990T-01
    1120-POL-9
    1120L-03
    1120-04
    4720
    None 990T-01 None 990T-01
    4947(a)(1) 1041 1041        
  2. There is a type of organization (TO) for 990/990EZ determined from information on the return. If the TO is:

    • 1- it is a 501(c) filer

    • 3 - it is a 4947(a) filer

    • 9 - it is a "0" filer. This only applies to 2007 and prior revisions of Form 990/990-EZ.

  3. If the organization has a Form 990 FR, SS 91 (4947(a)(1) trust) or Form 990–PF FR, SS92, EO Status 12 and files a Form 1041A, the TC 150 for the Form 1041A will unpost as a UPC 329. A legislative change was made under Sec. 6034 of the IRC to exempt a charitable trust described in IRC 4947(a) from filing a Form 1041A. Correspond with the organization explaining they are not required to file a Form 1041A. Release the unpostable with URC 8, requesting Rejects cancel the DLN. Annotate "DLN Voided."

  4. If the subsection on the unpostable return is or can be determined to be 29, establish the EO section with Status 36. Part V lines 13a, 13b and 13c can be used to determine SS 29 since they should only be completed by 501(c)(29) organizations. These organizations must file Form 990. If the unpostable return is Form 990–EZ, correspond for Form 990 using 4588C letter.

3.12.278.21.3.1  (01-01-2015)
UPC 329 UP Form 990/990-EZ & BMF Has a Form 5227 Filing Requirement

  1. If a Form 990/990EZ is filed but Master File shows a Form 5227 filing requirement, take the following actions:

    IF Then
    another EIN is found with 990 filing requirements, release the unpostable using URC 6 and post to the correct EIN.
    another EIN is not found, check Form 990/990EZ to determine if the filer is filing as a 4947(a) trust.
    the 4947(a) trust box on Form 990/990EZ is checked, research EDS to confirm determination. change the subsection from 90 to 91. Release the unpostable with URC 0. Cycle to post after the TC 016.

    Note:

    If the 4947(a) box is checked, the type of organization code must be 3.

    the 4947(a) trust box on Form 990/990EZ is not checked,
    1. remove the status 12 subsection on the Master File with a TC 022.

    2. Put the account in the appropriate status (see IRM 3.12.278.3.5) using TC 016 Doc Code 80.

    3. Release the unpostable using URC 0 and cycle to post after the TC 022 and TC 016.

    there is a Form 1041A FRC of 1, research for last MFT 36 (1041A) module with a TC 150. Input TC 591 cc 020 using FRM49 for a period ending after the last posted TC 150. See IRM 3.13.12.9.16(8) to recall a module from retention.

    .

3.12.278.21.3.2  (01-01-2015)
UPC 329 UP Form 990/990EZ BMF FR 990-04(Form 990BL) on BMF

  1. If a Form 990 or 990-EZ is filed and the BMF has a 990 FRC of 4 (Form 990BL) and the Subsection Code is other than 21, check the subsection code on Master File to determine the proper filing requirements.

    If Then
    The Form 990 has a Subsection Code of 01, 02, 03 (with a Type of Foundation 10–18), 05–20, 22, 23, 24, 25, 50, 60, 70 or 91:
    1. Input TC 016 Doc. Code 80 Definer Code A to correct the filing requirements.

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

    The Form 990 has a Subsection Code of 03 with a Type of Foundation Code 02–04 (Form 990PF), 21 (Form 990BL), 40 (Form 1065), 90 (Form 5227), and 92 (Form 990PF):
    1. Call the organization using the number on the return or correspond with the organization to determine why the Form 990 was filed.

    2. Suspend the unpostable until reply is received or for 45 days.

    3. When a reply is received or there is no reply, follow procedures in 3.12.278.21.12 below.

3.12.278.21.3.3  (01-01-2015)
UPC 329 UP Form 990/990EZ - No 990/990EZ FR on BMF

  1. If the BMF 990 FRC is 00, the EO Entity Status is 01–19 and the Subsection Code is 01, 02, 03 (with TF 10–18), 04–20, 22–25, 50, 60, 70 or 91:

    1. Input TC 016 Doc. Code 80 Definer Code A to update the 990 FRC to 01.

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

  2. If the BMF 990 FRC is 00, the EO Entity Status is 01–19 and the subsection code is blank:

    If Then
    CC ENMOD/CC BMFOLO shows a blank SS:
    1. If Item 1 has a GEN, pull the pilot voucher to determine the proper SS. Also check the SGRI to ensure the organization should be included in the group.

    2. Line G may also be used to determine the correct SS.Caution: When using Item G to determine the SS, verify it by researching EDS.

    You cannot determine the proper SS from the return, Research EDS and determine the SS code.
    After research, you determine the right SS code from EDS research:
    1. Input TC 016 Doc. Code 80 to update the SS.

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

    After research, you cannot determine the proper SS:
    1. Determine if a list of activities is present on the return. If the list of activities is present, determine the subsection and classification code of the return by comparing the activities to the list of 501(c) definitions. Input a TC 016 Doc. Code 80 to update Master File. Release the unpostable with URC 0 and cycle to post after the TC 016.

    2. If the list of activities is not present, call or correspond with the organization for a list of activities. Suspend the unpostable for up to 45 days or until a reply is received. When a reply is received, determine the subsection and classification of the return. Input a TC 016 Doc. Code 80 to update Master File. Release the unpostable using URC 0 and cycle to post after the TC 016.

    3. If no reply is received, input a TC 016, Doc. Code 80, SS 04 to update Master File. Release the unpostable with URC 0 and cycle to post after the TC 016.

  3. If the BMF 990 FR is 00, the EO Status is 20–71 and there is a G Freeze on the account with a tax period prior to the final return, process as follows:

    1. Suspense the unpostable.

    2. Send a copy of the CC BMFOLI screen to EO Accounts indicating there is a freeze code on some tax period which needs resolution before the unpostable can be resolved.

    3. Monitor the account until the freeze code(s) is removed.

    4. When the freeze code is removed, update the EO Status to 01 and update the FR to 990 with TC 016 Doc. Code 80 Definer Codes AB. Release the unpostable with URC 0 to allow the return to post. Monitor the posting of the return. When the return has posted, input a second TC 016 Doc. Code 80 Definer B to update the EO Status to 20–71.

  4. If the BMF Form 990 FR is 00 and the EO Status is 28:

    1. Research the SGRI to determine if the subordinate was removed from the group ruling by the parent and CC EOGEN to determine if the group was dissolved.

      Note:

      If the prior status code is 01 or 02 and the tax period on the return is prior to the current status code date, refer to IRM 3.12.278.21.2(8) for further instructions. If the tax period is after the current status code date refer to the IF/Then table below.

      If Then
      The group was dissolved, Determine the subsection from the Form 990.
      The subsection is 03/09/17/20:
      1. Use a TC 022 to remove the EO section.

      2. Reestablish the EO section with an EO Status 40 using a TC 016 Doc. Code 80 Definer Code B.

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

      the subsection is other than 03/09/17/20:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with a Form 990 FR of 01, an EO Status of 36, a subsection code and a classification code.

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

      the status is 97
      1. Do not update the account to status 01.

      2. URC 0 to post the return. Status 97 will bypass the UPC 329 check and allow the return to post.

        Note:

        Any organization which is in status 97, cannot be included as part of a group until they re-apply individually.

    2. If the group has not been dissolved, review the SGRI to determine if the subordinate was removed from the group by the parent.

    3. If the subordinate was removed from the group ruling, research EDS to determine if they have applied for exempt status.

      If Then
      EDS indicates they have applied for exempt status but have yet to be approved:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with an EO Status 40 using a TC 016 Doc. Code 80 Definer Code B.

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

      EDS indicates they have applied for exempt status and are approved:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with the information on EDS using a TC 016 Doc. Code 80 Definer Codes ABC.

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

      EDS indicates they are disapproved,
      1. Remove the EO section with a TC 022

      2. Update information from EDS (ie. Status 22, 70-72)

      3. Update the EO Status to 99 using a TC 016 Doc. Code 80 Definer Code B.

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

      There is no information on EDS, determine the subsection from the Form 990. If the subsection is 03/09/17/20:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with an EO Status of 40 with a TC 016 Doc. Code 80 Definer Code B.

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

      There is no information on EDS and subsection on the Form 990 is other than 03/09/17/20:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with a Form 990 FR of 01, an EO Status of 36, a classification code and a subsection with a TC 016 Doc. Code 80 Definer Codes AB.

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

  5. If the SGRI indicates they are still a member of the group ruling, update the EO Status to 01 and the 990 filing requirement to 01 with a TC 016, Doc. Code 80, Definer Codes ABC. URC 0 to post the return and cycle to post after the TC 016.

  6. If the BMF 990 FR is 00, the EO Status 29 and the AF 6/8:

    1. Determine if the GEN was dissolved as part of the SGRI process or requested by the parent of the group. EO Unpostables must check the SGRI file located in EO Entity. The parent of a group exemption is required to submit information concerning their group to the IRS yearly. Prior to March 2012, if the parent fails to submit the Supplemental Group Ruling Information (SGRI) the group ruling was dissolved and the account updated to EO Status 29. The parent may continue to file under an individual ruling.

    2. If the group was dissolved due to the SGRI process, and has supplied the SGRI, update the account to an individual status. Input TC 016 Doc. Code 80 Definer Code G, Status 01, Subsection, Status date, classification code, FYM, From Gen, New Gen 9999, Affiliation code 3, 990 FR and Remarks. Release the unpostable with URC 0 after the EO Status on the parent's account is 01. . Once the unpostable has been closed, a TC 016 must be input to update the account to a Group exemption. To reactivate subordinates, if necessary, input TC 016, Doc. Code 80, Definer Code B, AF 9, Status 01, status date and the From GEN.

      Note:

      Releasing the unpostable prior to an EO Status of 01 on the parent account will result in a GEN file error.

      Note:

      The parent must be in Status 01 with a GEN before any subordinates can be added or updated.

    3. If the organization is now filing under an individual ruling, delete all subordinates under the dissolved GEN with TC 022. Input TC 016 to update the parent account to an individual status (Status code, Status date, FYM, Subsection, From GEN, New GEN 9999, Affiliation code 3, classification code and remarks. Update subordinate groups from dissolved GEN using status 40 if 501(c) 3, 9 or 17 or status 36 for all others.

  7. If the BMF 990 FR is 00 and the EO Status is 41/70-72 :

    Note:

    Do not correspond if the unpostable is an extension.

    If Then
    There is an open case on EDS:
    1. Remove the EO section with a TC 022.

    2. Reestablish the EO section to status 40 using TC 016 Doc. Code 80 Definer Code B.

    3. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is an approved closed case on EDS (EDS Status 01, 06 or 09):
    1. Update the EO section on BMF using TC 016 Doc. Code 80 Definer Codes ABC. Add the appropriate information from EDS and remove the 1065/1041/1120 FR on Master File.

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

    The account is in Status 41 and the unpostable is a return and there are prior year 990 returns posted and the subsection is a 501(c), (3), (9) (17) or (20) (or cannot be determined)
    1. update the EO section with a TC 016, Doc. Code 80, Definer Code B, to input EO Status Code 99.

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

    The account is in Status 41 and there are no prior year 990 return posted, and the subsection is a 501(c), (3), (9) (17) or (20) (or cannot be determined) and the unpostable is a return
    1. correspond with the organization using Letter 3909C informing them they do not have an exemption and in order to gain an exemption, they must file Form 1023 or 1024 with Cincinnati suspend the case for 45 days.

    2. If the organization responds with a copy of their determination letter, and there is no information on EDS, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . If they validate the determination letter's content, update the EO section on BMF using TC 016, Doc. Code 80, Definer Codes ABC with the appropriate information from the determination letter.

    3. Release the unpostable, URC 0 and cycle to post after the TC 016.

    4. If the organization fails to reply or their reply is incomplete, update the account to status 40 using TC 016, Doc. Code 80, Definer Code B.

    5. Release the unpostable, URC 0 and cycle to post after the TC 016.

    The account is in Status 41 and there are no prior year 990 return posted, and the subsection is a 501(c), (3), (9) (17) or (20) (or cannot be determined) and the unpostable is an extension
    1. Update the account to status 40 using TC 016, Doc. code 80, Definer code B.

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

    Note:

    Due to incompatibility, you must update the account to status 42 for a cycle then update to status 40. Do not leave account in status 42.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11 - Failed to Establish - EO Status 70 -71) and the subsection on the return is 03, 09, 17 or 20 and the unpostable is a return

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. Correspond with the filer using letter 3877C.

    2. If the organization responds with a copy of their determination letter, update the EO section on BMF using TC 016, Doc. Code 80, Definer Codes ABC with the appropriate information from EDS or the determination letter the filer provided.

    3. Release the unpostable, URC 0 and cycle to post after the TC 016.

    4. If the organization fails to reply or their reply is incomplete, and they have previously filed an exempt organization return, update the status to 99 with a TC 016 Doc. Code 80 Definer Code B.

    5. Release the unpostable, URC 0 and cycle to post after the TC 016.

    6. If the organization fails to reply or their reply is incomplete, and this is their first exempt organization return, remove the EO section with a TC 022.

    7. Reestablish the EO section to status 40 using TC 016, Doc. Code 80, Definer Code B.

    8. Release the unpostable, URC 0 and cycle to post after the TC 016.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11 - Failed to Establish - EO Status 70 -71) and the subsection on the return is 03, 09, 17 or 20 and the unpostable is an extension

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. If they have previously filed an exempt organization return, update the status to 99 with a TC 016 Doc. Code 80 Definer Code B.

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

    3. If there is no exempt organization return, remove the EO section with a TC 022.

    4. Re-establish the EO section to status 40 using TC 016, Doc. Code 80, Definer Code B.

    5. Release the unpostable, URC 0 and cycle to post after the TC 016.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11 - Failed to Establish EO Status 70 - 71) and the subsection on the return is other than 03, 09, 17 or 20 or is blank and the unpostable is a return or an extension

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. If the subsection is present on the return or can be determined and is other than 501(c)(3), (9), (17), or (20) and the organization was not denied exemption (EDS Status 02 specifically) under the purported subsection, input a TC 016 Doc. Code 80 Definer Codes AB to update the EO section with a Form 990 FR, EO Status Code 36, FYM, subsection, and classification code (use Doc. 6379 ). URC 0 to cycle to post after the TC 016.

    2. If the subsection is not present or cannot be determined, remove the EO section on BMF using TC 022.

    3. Re-establish the EO section to status 40 using TC 016 Doc. code 80, Definer code B.

    4. Release the unpostable, URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS (EDS status 02) or there is no case on EDS and the unpostable is a return
    1. If the subsection is determined to be other than 501(c)(3), (9), (17), or (20) and the organization has not been denied exemption under the purported subsection, input a TC 016 Doc. Code 80 Definer Codes AB to update the EO section with a Form 990 FR, EO Status Code 36, FYM, subsection, and classification code (use Doc. 6379 ). URC 0 to cycle to post after the TC 016.

    2. If the subsection is determined to be other than 501(c)(3), (9), (17), or (20) and the organization was denied exemption under the purported subsection, correspond with the organization using the 3877C Letter informing them they were denied exemption and must file a Form 1041/1120 return. If the organization responds with a determination letter, update Master File with the appropriate information using a TC 016 Doc. Code 80 Definer Codes ABC. URC 0 to release the unpostable and cycle to post after the TC 016. If there is no reply, update the EO Status Code to 99 with a TC 016 Doc. Code 80 Definer Code B, release the unpostable with URC 0 to allow the return to post, and cycle the unpostable to post after the TC 016.

    3. If the subsection is determined to be 501(c)(3), (9), (17), or (20), correspond with the organization using the 3909C Letter (Status 41) or the 3877C Letter (Status 70-72) informing them they don't have an exemption and must file a Form 1041/1120 return. If the organization responds with a determination letter, update Master File with the appropriate information using a TC 016 Doc. Code 80 Definer Codes ABC. URC 0 to release the unpostable and cycle to post after the TC 016. If there is no reply, update the EO Status Code to 99 with a TC 016 Doc. Code 80 Definer Code B, release the unpostable with URC 0 to allow the return to post, and cycle the unpostable to post after the TC 016.

    There is a disapproved closed case on EDS (EDS status 02) or there is no case on EDS and the unpostable is an extension:

    Note:

    Do not correspond if the unpostable is an extension.

    1. Remove the EO section using TC 022.

    2. Re-establish the EO section to status 40 using TC 016 Doc. Code 80, Definer code B.

    3. Cycle to post the TC 460 after the TC 016.

    4. Input another TC 016 to change the EO status code back to 70 or 72.

    5. Cycle to post the second TC 016 after the TC 460.

    6. If a TC 022 can not be done to update the EO status code to 40 because a freeze code is present, URC D the unpostable.

    The organization is under IRC 501(c)(3) and the gross receipts are less than $5,000:
    1. Reestablish the EO status to 31 with a TC 016 Doc Code 80 Definer code AB and add appropriate filing requirement if the organization meets the gross receipt criteria. See IRM 3.13.12.18.18(2). Cycle to post after the TC 022.

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

  8. If the account is in status 97 take the following action:

    IF Then
    The account is in status 97
    1. Research to determine if the filer failed to file for three consecutive years.

      Note:

      If FYM is 12, Form 990/990–EZ returns must have a received date of May 17, 2010 or prior. Form 990–N filers were given an extension to file until October 15, 2010.

    2. If received date was prior to May 17, 2010, for 990/990–EZ filers or October 15, 2010 for 990–N filers, Photocopy the front page of return and envelope showing the postmark and send to the TEGE Analyst at M/S 1110.

    3. URC 0 the unpostable and cycle to post after the TC 016.

    4. If the filer failed to file for three consecutive years research for another EIN.

    another EIN is found in a good status
    1. URC 6 the unpostable to the correct EIN with the good status.

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

    3. Consolidate the accounts if the organization has duplicate EINs.

    another EIN is not found
    1. URC 0 to post the return. Status 97 will bypass the UPC 329 check and allow the return to post.

  9. If the BMF Form 990 FR is 00 and Line I 527 box is checked:

    1. Check BMFOLI and CC BMFOLE for the TC 150 MFT 47 or TC 971 ac 350/351. If present, establish the EO section using CC EOREQ/CC EOCHG, TC 016, Doc. Code 80, Definer Codes AB, Subsection 82, Classification Code 1, EO Status Code 34/date, Form 1120-09 and 990 FR 01. URC 0 to post the return and cycle the unpostable to post after the TC 016.

    2. If no TC 971 ac 350/351 or TC 150 MFT 47 is present, correspond using a 3710C Letter telling the organization they must file a Form 8871 electronically and a Form 8453X by paper.

    3. If they file a Form 8871 electronically, set up the EO section using CC EOREQ/CC EOCHG, TC 016, Doc. Code 80, Definer Codes AB, Subsection 82, Classification Code 1, EO Status Code 34/date, Form 1120 of 09, and Form 990 FR of 01. URC 0 to allow the return to post and cycle the unpostable to post after the TC 016.

    4. If no reply, set up of the EO section using CC EOREQ/CC EOCHG, TC 016, Doc. Code 80, Definer Codes AB, Status Code 40/date, and FYM. .

3.12.278.21.3.4  (01-01-2015)
UPC 329 UP Form 990/990 – 4947(a) Box Checked

  1. If the 4947(a)(1) box in Item I is checked on the return:

    1. If the organization filed a Form 990 with 4947(a)(1) trust box checked, correspond with the organization explaining only non-exempt charitable trusts which were classified as a public charity under IRC 509(a) of the Internal Revenue Code are entitled to file a Form 990. Request a determination letter classifying the non-exempt charitable trust as a public charity.

    2. If the organization responds with a letter of determination, input TC 016 to update to Form 990, Status 12, and release the unpostable after the 016 with URC 0.

    3. If the organization does not respond, input TC 016 to update to Status 40, and release the unpostable after the 016 with URC 0.

3.12.278.21.3.5  (01-01-2015)
UPC 329 UP Form 990/990EZ - GEN

  1. If the Form 990 has a GEN on line Hc and no EO subsection on IDRS:

    1. Pull the pilot voucher .

    2. Check to see if the filer was included on the SGRI.

    3. If the filer was included on the SGRI, input TC 016 Doc. Code 80 Definer Codes ABC to add the EO section and remove the Form 1120 FRC.

    4. Release the unpostable using URC 0 and cycle 3 cycles to post after the TC 016.

  2. If the account is not included on the SGRI and the subsection is 501(c)(3), (9), (17) or (20), put the account in status 40. Input a TC 016, Doc Code 80, Definer Code B. URC 0 the unpostable. Cycle delay to ensure the unpostable posts after the TC 016.

  3. If the account is not included on the SGRI and is other than subsection 501(c)(3), (9), (17) or (20), put the account in status 36. Input a TC 016, Doc. Code 80, Definer Code B, FYM and 990 filing requirements. URC 0 the unpostable. Cycle delay to ensure the unpostable posts after the TC 016.

  4. If the Form 990 has a GEN and the EO Status is 28, research the SGRI to determine if the organization was removed from the group by the parent. If the group was deleted on the SGRI, remove the EO Section with a TC 022. If the organization is a 501(c)(3), (9), (17) or (20) input a TC 016, Doc. Code 80, Definer Code B, Status 40. URC 0 the unpostable to allow the return to post and cycle the unpostable to post after the TC 016. If the organization is other than a 501(c)(3), (9), (17) or (20), input a TC 016, Doc. Code 80, Definer Code B, FYM, Status 36 and 990 filing requirements. URC 0 the unpostable. Cycle the unpostable to post after the TC 016.

  5. If the Form 990 has a GEN and the EO Status is 28, the SGRI indicates the organization should be included in the group, follow the procedures in paragraph (1) above.

3.12.278.21.3.6  (01-01-2015)
UPC 329 UP Form 990/990EZ with 990-PF FR on BMF

  1. On September 8, 2008, the IRS issued new regulations eliminating the advance ruling process and the need to file Form 8734. Organizations will use their advance ruling letter to provide donors proof of their public charity status until the IRS changes the status and publishes notice of the change. Under the new regulations, section 501(c)(3) organizations that received advance rulings that expired on or after June 9, 2008, were classified as publicly supported charities and file the Form 990/990–EZ as long as they continue to meet one of the public support tests; otherwise they are required to self-identify as a private foundation by filing Form 990-PF. Organizations whose advance ruling expired before June 9, 2008, and that did not submit Form 8734 to the IRS will be reclassified as private foundations, unless they submit documentation to the IRS including Form 8940 and the appropriate user fee, establishing they met the public support test.

  2. Since the regulations pertain to organizations with an advance ruling expiration date less than 90 days of the issuance of the regulations and forward, the campus may continue to see organizations with a foundation follow-up. Follow the procedures listed below when an advance ruling follow-up was completed in Cincinnati.

  3. During the advance ruling period, the organization will file a Form 990. When the advance ruling period is up, the EDS system in Cincinnati will automatically send a 1046 letter to the organization requesting the organization's financial support information. Presently, the 1046 letter does not show up on the "I" case on EDS.

  4. If foundation follow-up was done, there will be an "F" case on EDS. Based on the financial information which was received from the organization. The "F" case will indicate the ruling letter which was sent to the organization by Cincinnati; e.g., 1050, 1075, 1076, 1078 and 5548. If the financial information was not supplied by the organization, Cincinnati will issue a 1048 letter (Presumptive PF) which states the organization is presumed to be a private foundation and change the filing requirement to Form 990PF.

  5. Check CC SUMRY. If there is an open control assigned to EOCA (IDRS number begins with "40" ), contact the employee with the open control for instruction to resolve the unpostable. Do not cancel the DLN.

  6. Research EDS to determine if the foundation follow-up was done by Cincinnati.

    If Then
    There is no "F" case on EDS, Check CC BMFOLE to determine if Cincinnati updated the filing requirement to Form 990PF or Form 990.
    Cincinnati updated the filing requirement to Form 990PF:
    1. Assume the organization was issued a 1048 Letter (presumptive PF).

    2. Suspend the unpostable.

    3. Correspond with the organization telling them we can not process their Form 990 and they must file a Form 990PF for the tax period in question.

    4. If no response is received from the filer by the end of the suspense period, update Master File with a Form 990 FR and Foundation Code 15 using a TC 016. URC 0 and cycle the TC 150 to post after the TC 016. Input a second TC 016 to re-establish the Form 990PF FR and Foundation Code 04. Cycle the second TC 016 to post after the TC 150.

    Cincinnati updates the filing requirement to Form 990:
    1. Update Master File with CC EOREQ/EOCHG TC 016 Doc. Code 80 (if necessary).

    2. Release the unpostable with a URC 0 and cycle (2) to post after the TC 016.

    The organization responds with a determination letter indicating the organization should file a Form 990:
    1. Contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to validate the determination letter's content.

    2. If they validate the information in the Determination letter, update Master File with CC EOREQ/EOCHG TC 016 Doc. Code 80 (if necessary).

    3. Release the unpostable with a URC 0 and cycle (2) to post after the TC 016.

  7. If the foundation follow-up was done and there is an "F" case on EDS, determine the ruling letter which was sent to the organization and process as follows:

    If Then
    The organization was sent a 1050 Letter (Form 990 FR):
    1. Input a TC 016 Doc. Code 80 to update Master File with the EDS EO section information for a Form 990 filer.

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

    The organization was sent a 1075 letter (Form 990PF FR):
    1. Call the organization using the number on the return or correspond with the organization using a 4588C Letter, informing them they have filed the wrong return according to the determination letter which was sent to them. Suspend the case for 45 days.

      Note:

      If the organization questions their determination, refer them to Cincinnati.

      Exception:

      If the assets are $0 or the organization gives some indication they are inactive on the Form 990, post the Form 990 return by updating the FR to Form 990. When the return posts, input a TC 016 to change the filing requirements back to 990-PF.

    2. If the organization responds with a determination letter indicating they should file a Form 990 or Master File research indicates Cincinnati has changed the filing requirement to Form 990, update Master File with the correct EO section information with a TC 016 Doc. Code 80. Release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the organization responds with a Form 990-PF, write DO NOT PROCESS on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN. Release the unpostable using URC 8 and request Rejects cancel the DLN. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed. Edit the received date from the unpostable return to the return being sent for processing. Request Rejects forward the correct return for processing .

    4. If the organization does not supply documentation of exempt status as a 990 filer or does not reply, input a TC 016 to change the filing requirements to 990, URC 0 to post the return. Monitor the account until the return posts. When the 990 return posts input a TC 016 to change the filing requirements back to 990-PF.

    The organization was sent a 5548 letter (generic letter, FR unknown):
    1. Input a TC 016 Doc. Code 80 Definer Code A to change the filing requirement to Form 990 using the prior foundation code.

    2. Release the unpostable with URC 0 and cycle to post the TC 150 after the TC 016.

    3. Input a second TC 016 Doc. Code 80 Definer Code A to change the filing requirement back to Form 990PF. Cycle the second TC 016 to post after the TC 150.

      Note:

      Change the filing requirement back to Form 990PF because the content of the Letter 5548 is unknown. Once a determination is made by Rulings & Agreements, EDS will be updated and the organization's filing requirement and EO section information will roll over to Master File.

  8. If a private foundation is in IRC 507(b)(1)(B) termination, it must file a Form 990PF for each year in the 60-month termination period, if the period has not expired before the due date of the return. In the last year of the termination period, the organization may file a Form 990 if it determines it has met the public support test. Cincinnati may or may not have issued their final determination yet. If no final determination is made, the Form 990 will unpost as a UPC 329. Process as follows:

    1. Research CC INOLE to determine if the account is in EO Status 25 and the advanced ruling date is present. If there is no advanced ruling date, research EDS to determine if an Advanced Ruling Letter 2245 was sent or if a final determination letter was sent to the organization.

    2. If an Advanced Ruling Letter 2245 was sent, the final determination letter was not sent, and the organization is in the last year of its termination period, update the FR to Form 990 and post the return. If the final determination letter was sent and it has a Form 990 FR, update Master File accordingly with a TC 016 Doc. Code 80. Release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the final determination letter was sent and it has a Form 990PF FR, call the organization using the number on the return or correspond with the taxpayer informing them Cincinnati determined they did not meet the public support and they must file a Form 990PF. Suspense the case for 45 days. If the organization responds with a Form 990PF, write DO NOT PROCESS on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN. Release the unpostable using URC 8 and request Rejects cancel the DLN. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed. Edit the received date from the unpostable return to the return being sent for processing. Request Rejects forward the correct return for processing. If the organization does not respond after 60 days, input a TC 016 to change the FR to Form 990, URC 0 the unpostable and post the return. Monitor the account and when the 990 posts, input a TC 016 to update the FR to 990-PF.

    4. If there is no advanced ruling date on Master File, no Advanced Ruling Letter 2245 sent to the organization, and the EO Status is 25, contact the organization by phone or correspond with the organization. Inform the organization it can not terminate under IRC 507(b)(1)(B) without an advanced ruling from Cincinnati. Therefore it is required to file a Form 990PF whether it is terminating its private foundation status or not. Suspense the case for 45 days. If the organization responds with a Form 990PF, write DO NOT PROCESS on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN. Release the unpostable using URC 8 and request Rejects cancel the DLN. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed. Edit the received date from the unpostable return to the return being sent for processing. Request Rejects forward the correct return for processing. If the organization does not respond after 60 days, input a TC 016 to change the FR to Form 990, UPC 0 the unpostable and post the return. Monitor the account and when the 990 posts, input a TC 016 to update the FR to 990-PF.

  9. If the unpostable is an approved Form 8868 and the organization has indicated Form 990 on the form, release the unpostable with URC 6 to change the MFT from 67 to 44. Correspond with the organization explaining they have filed an extension for the wrong return. Notify them of their correct filing requirements.

    Note:

    If a previous letter was sent on the same tax period, same MFT by an EO Employee, do not issue another letter.

3.12.278.21.4  (01-01-2015)
UPC 329 Resolution RC 1 & 2 Form 1120C/990C

  1. See IRM 3.13.222.73.8 for instructions.

3.12.278.21.5  (01-01-2015)
UPC 329 RC 1 & 2 Converted Forms 1120 & 1041 EO Exams

  1. EO Exam will secure a Form 1120 or 1041 when proposing a revocation of an organization before EO Exams mandatory review is complete and a Form 2363-A is submitted to update the EO Status to 22 by submitting the Form 2363-A. If a Form 1120 or 1041 attempts to post to an account in a good EO status the return will unpost as a UPC 329 1 or 2.

3.12.278.21.5.1  (01-01-2015)
UPC 329 RC 1 & 2 Converted Forms 1120 & 1041 EO Exams Resolution

  1. When a Form 1120 or 1041 is secured by Exam while proposing a revocation the agent will write across the top of the form either "Form 990 converted to Form 1120 by TEGE Operating Division " or" Form 990 converted to Form 1041 by TEGE Operating Division" . If these statements or similar wording is on the Form 1120 or 1041 do not correspond.

  2. To post the Form 1120 or 1041 do the following, place the account in EO Status 20 and add 1120 or 1041 filing requirements depending on the unpostable return.

  3. Resolve the unpostable using URC 0 and cycle to post the return after the TC 016.

  4. Monitor the return (F1120 or 1041) until it posts and then return the account to the previous EO Status.

    Note:

    If the account is all ready in Status 22 (revoked), you do not need to monitor the Form(s) 1120 or 1041 for posting. Do not update the EO status.

3.12.278.21.6  (01-01-2015)
UPC 329 Resolution RC 1 - Form 990-N

  1. Form 990N is an electronic filed form for organizations whose gross receipts are $50,000, or less. If a Form 990N unposts as a UPC 329 RC 1, correct the unpostable condition using the same procedures, correspondence and compatibility checks as for Form 990.

3.12.278.21.7  (01-01-2015)
UPC 329 Resolution RC 1 & 2 Form 990PF

  1. The table below shows the FRCs which are compatible with a Form 990PF and a quick reference chart to correct unpostable Forms 990PF.

  2. The Form 990PF has a type of organization (TO) determined by information on the return. If the TO is:

    • 3 - it is a 4947(a) filer

    • 6 - it is a 501(c)(3) filer

  3. The following defines the filing requirements for Form 990PF:

    • FRC 1 - Form 990-PF required to be filed.

    • FRC 2 - Revocation of private foundation status (Status 22; Form 1120 and 990-PF required to be filed.

    • FRC 3 - Presumptive PF; Form 990-PF required to be filed.

  4. The table below shows the Form 990-PF compatible tax returns:

    FRC Compatible Tax Returns
    1 Form 990-T, SS 03
    Form 1041, ST 12, IRC 4947(a)(1)
    Form 1041, ST 18, Revocation of private foundation trust
    Form 1120, ST 19, Revocation of private foundation corporation
    2 Form 1120, ST 22 revocation

3.12.278.21.7.1  (01-01-2015)
UPC 329 Resolution RC 1 & 2 - Form 990PF and Payments for Charitable Trusts (509(a)(3) and Non-exempt Charitable Trusts (4947(a)(1)

  1. The information in this section is for historical purposes due to filing requirement changes because of the Pension Protection Act of 2006. The organizations will not receive a new determination letter indicating the change in filing requirements unless they request a new determination letter by filing Form 8940 and paying a user fee. Once the organization has identified itself as required to file Form 990–PF, they must continue to file that form unless they request and receive a new determination letter.

  2. The Pension Protection Act of 2006 eliminated the charitable trust test, effective August 17, 2007. Consequently many trusts previously classified as a Type III supporting organization filing Form 990 are now classified as a private foundation and required to file Form 990-PF.

  3. If a payment or Form 990-PF is received on organizations which have a previous Subsection of 91 or Subsection 03 Foundation code 15, 16 or 17, take the following actions:

    If Then
    the unpostable is a payment (TC 670, 610) for MFT 44 and Subsection is 91 on Master File, research Master File for a rejected or unposted TC 150 for Form 990 for 2007. If a TC 150 for Form 990 for 2007 has posted, update the Subsection to 92 990-PF - 01 and "0" code the unpostable. Cycle delay to allow TC 016 to post. If a TC 150 for Form 990 2007 is rejected, follow the procedures above and then change the account back to Subsection 91, 990-01, 990PF-00 to allow the rejected 990 to post.
    the unpostable is a payment (TC 610, 670) for MFT 44 and Subsection is 03, Foundation code 15, 16 or 17 on Master File, research Master File for a rejected or unposted TC 150 for Form 990 for 200712. If a TC 150 for Form 990 for 2007 has posted, update the Subsection to 03 Foundation Code 04, 990-PF - 01 and "0" code the unpostable. Cycle delay to allow TC 016 to post. If a TC 150 for Form 990 2007 is rejected, follow the procedures above and then change the account back to subsection 03 Foundation Code 15, 16 or 17, 990-01, 990PF-00, to allow the rejected 990 to post.
    the unpostable is a TC 150 MFT 44, Subsection 91 on Master File and the filer has written "Notice 2008-6-Status Change" or similar wording at the top of the return or box G, initial return of a former public charity is checked, research Master File for a rejected or unposted TC 150 for Form 990 for 2007. If a TC 150 for Form 990 for 2007 has posted, update the Subsection to 92, 990-PF - 01 and "0" code the unpostable. Cycle delay to allow TC 016 to post. If a TC 150 for Form 990 2007 is rejected, follow the procedures above and then change the account back to Subsection 91, 990-01 990PF-00 to allow the rejected 990 to post. Once the rejected 990 for 2007 posts the account should be updated to Subsection 92 and 990PF-01.
    the unpostable is a TC 150 MFT 44, Subsection 03 Foundation Code 15, 16 or 17 on Master File and the filer has written "Notice 2007-Status Change" or similar wording at the top of the return, or box G, initial return of a former public charity is checked, research Master File for a rejected or unposted TC 150 for Form 990 for 2007. If a TC 150 for Form 990 for 2007 has posted, update the Subsection to 03 Foundation Code 04, 990-PF - 01 and "0" code the unpostable. Cycle delay to allow TC 016 to post. If a TC 150 for Form 990 2007 is rejected, follow the procedures above and then change the account back to Subsection 03, Foundation Code 15, 16 or 17, 990-01, 990PF-00 to allow the rejected 990 to post. Once the rejected 990 for 2007 posts the account should be updated to Subsection 03, Foundation Code 04 and 990PF-01.
    the unpostable is a TC 150 MFT 44, Subsection 03 Foundation Code 15, 16 or 17 and a GEN is present on Master File and the filer has written "Notice 2007-Status Change" or similar wording at the top of the return, or box G, initial return of a former public charity is checked,
    1. research EDS for an individual ruling.

    2. If an individual ruling is found, update the account by removing the GEN and input of the information from EDS. Input a TC 016, Doc Code 80 using EOREQ/EOCHG.

    3. Release the unpostable using URC 0. Cycle delay to post after the TC 016.

    4. If an individual ruling is not found, remove the GEN subsection by inputting a TC 022.

    5. Input a TC 016 using CC EOREQ/EOCHG to update the account to status 40.

      Note:

      Organizations who are part of a group and fail the public support test can not be included in a group exemption and must file for an individual ruling.

    6. Release the unpostable URC 0. Cycle delay to post after the TC 016.

3.12.278.21.7.2  (01-01-2015)
UPC 329 UP Form 990PF with Form 5227 on BMF

  1. Check to see if the entities match:

    If Then
    The entities match:
    1. If 4947(a) block is checked on the return, input TC 016 Doc. Code 80 Definer Codes ABC to update the BMF.

    2. If there is a BMF Form 1041A FRC of 01, input TC 591 cc 20 after the last posted 1041A.

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

    The entities do not match,
    1. Research for another EIN or ESIGN as applicable.

    2. Process as a UPC 366.

3.12.278.21.7.3  (01-01-2015)
UPC 329 UP Form 990PF No 990-PF Filing Requirement on BMF

  1. When the BMF Form 990PF FRC is 0 and the EO Status is 01–19:

    If Then
    CC ENMOD/CC BMFOL shows SS 03 with a TF of 02, 03 or 04 or a SS of 92:
    1. Input TC 016 Doc. Code 80 Definer Code A and update the filing requirement.

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

    The EO section has missing information:
    1. Research EDS for the missing information.

    2. Update Master File with the necessary information with a TC 016.

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

  2. When the BMF form 990–PF FRC is 0, the EO Status is 20, and there is a Form 990–PF and/or corresponding unpostable TC 610, 650, 660 or 670:

    1. Update the Status to 01 and the Form 990PF FR to 1 with TC 016 Doc. Code 80 Definer Codes AB. Release the unpostable using the appropriate URC and cycle to post after the TC 016.

    2. Process the unpostable payment before resolving the associated unpostable TC 150. Cycle to post the Form 990–PF after the payment.

3.12.278.21.7.4  (01-01-2015)
UPC 329 UP Form 990PF with Form 990 FR on BMF

  1. The unpostable is a Form 990-PF and the BMF has Form 990 FRC, research EDS for a better filing requirement.

    If Then
    An open case is found on EDS and enough information is available to determine the correct FR:
    1. make the FR change using TC 016, Doc Code 80, Definer Codes AB, Subsection Code 03, correct foundation code (03 or 04) and 990-PF- 1 FR.

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

    An open case is found on EDS but there is not enough information to determine the correct FR
    1. Use the employee number on EDS to contact the Determination Area to discuss the disposition of the Form 990-PF. Follow the instructions provided by the Determination Area.

    2. Request Cincinnati expedite the case.

    There is no open case on EDS:
    1. Call using the number on the return or correspond with the organization using Letter 4588C informing them our records indicate they should file a Form 990. The organization can self-identify if they no longer meet the public support test and should file a 990-PF. If the filer indicates they no longer meet the public support test, update the filing requirements to 990-PF. URC 0 the unpostable to post following the TC 016.

    2. If the filer indicates they still meet the public support test, suspend the case for 45 days pending a change in the filing requirement or the filing of a Form 990.

    There is a corresponding TC 610, 650, 660 or 670 payment with the 990-PF
    1. update the FR to Form 990PF and the Foundation Code to 04 with TC 016 Doc. Code 80 Definer A. Use appropriate URC to release the unpostable payment and cycle to post after the TC 016. Use appropriate URC to release the TC 150 and cycle to post after the payment. After the TC 150 has posted, change the FR back to Form 990 and remove the TF with a TC 016 Doc. Code 80 Definer Code A.

    2. Send a 4588C letter to notify the organization they have filed the incorrect return.

    The organization responds with a Form 990:
    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 organization responds with a new ruling letter which indicates they are now a private foundation, Update the EO section with a TC 016 Doc. Code 80. URC 0 to release the unpostable and cycle to post after the TC 016.
    The organization does not respond:
    1. Change the filing requirement to Form 990PF and the Foundation Code to 04 with a TC 016 Doc. Code 80 Definer Code A.

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

    3. Monitor the posting of the return. When the return posts, change the filing requirement back to 990 and change or remove the Foundation Code with a TC 016 Doc. Code 80 Definer Code A and cycle delay 3 or more cycles.

    Line G "Initial return of a former public charity" box is checked
    1. Change the filing requirement from 990 to 990-PF and update the Foundation Code 04 with a TC 016 Doc. Code 80, Definer Code A.

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

  2. If the unpostable is an approved Form 8868 and the organization has marked Form 990PF on the form, release the unpostable with URC 6 to change the MFT from 44 to 67. Correspond with the organization explaining they have filed an extension for the wrong return. Notify them of their correct filing requirements.

    Note:

    If a previous letter was sent on the same tax period, same MFT by an EO employee, do not issue another letter. If the MFT was edited incorrectly or the organization filed the correct return, do not issue a letter.

  3. If an organization is in EO Status 97, 98 or 99 and filed an extension Form 8868 for an exempt organization return, input the extension with TC 460 on MFT 02 Form 1120 using CC REQ77 and URC "D" to release the unpostable condition.

  4. If after research of CC INOLE, you determine the organization filed the incorrect extension form (Form 7004), correct the form number on the extension, write "cancel DLN" to the left of the DLN, release the unpostable with URC 8, attach Form 13271, and request Rejects cancel the DLN and renumber for the correct MFT.

3.12.278.21.7.5  (01-01-2015)
UPC 329 UP Form 990PF Account in EO Status 41, 70-72

  1. If the BMF EO Status is 41, 70-72:

    Note:

    Do not correspond if the unpostable is an extension.

    If Then
    There is an open case on EDS:
    1. Remove the EO section with a TC 022.

    2. Reestablish the EO section to status 40 using TC 016 Doc Code 80 Definer Code B.

    3. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is an approved closed case on EDS (EDS Status 01, 06, or 09):
    1. Update the EO section BMF using TC 016 Doc. Code Definer Codes ABC; input the EO Status as indicated on EDS, add the appropriate FR, and delete the 1065/1041/1120 FR.

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

    There is a disapproved closed case on EDS or there is no case on EDS:
    1. If the EO Status Code is 41, and there are prior year 990-PF returns posted, update the EO section with a TC 016, Doc. Code 80, Definer Code B, to input EO Status Code 99. Release the unpostable with URC 0 and cycle to post after the TC 016.

    2. If the EO Status Code is 41 and there are no prior year 990-PF returns posted, correspond with the organization using Letter 3909C informing them they do not have an exemption and in order to gain an exemption, they must file Form 1023 or 1024 with Cincinnati suspend the case for 45 days.

    3. If the EO Status Code is 70, correspond with the organization using Letter 3877C informing them their exemption was denied and they are required to file Form 1120. Suspend the case for 45 days.

    4. If the EO Status Code is 71, correspond with the organization using Letter 3877C informing them their Form 1023 or Form 1024 was incomplete and they do not have an exemption. Suspend the case for 45 days.

    5. If the EO Status Code is 72, correspond with the organization using 3877C informing them they do not have an exemption.

    6. If the organization responds with a letter of determination, update the EO section with a TC 016. Release the unpostable with URC 0 and cycle to post after the TC 016.

    7. If the organization fails to reply, update the EO section with a TC 016 Doc. Code 80, Definer Code B, to input EO Status Code 99. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The EO status is 41 with prior year returns posted and the unpostable is an extension:
    1. Update the EO section using TC 016 Doc. Code 80 Definer Code B to input EO Status Code 99.

    2. Input the extension with TC 460 on MFT 02 Form 1120 using CC REQ77 and URC D to release the unpostable

    The EO status is 41 without prior year returns posted and the unpostable is an extension:
    1. Update the EO section to status 40 using TC 016 Doc. Code 80 Definer Code B.

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

    Note:

    Due to incompatibility, update the account to status 42 then cycle to update to status 40. Do not leave account in status 42.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11- EO Status 70-71) and there are prior exempt returns posted and the unpostable is an extension:
    1. Update the EO section with a TC 016 Doc Code 80 Definer Code B, to update EO Status code to 99.

    2. Input the extension with TC 460 on MFT 02 Form 1120 using REQ77 and release the unpostable with URC D.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11- EO Status 70-71) and there are no prior exempt returns posted and the unpostable is an extension:
    1. Remove the EO section with a TC 022.

    2. Re-establish the EO section to status 40 using TC 016 Doc. Code 80 Definer code B cycle delay to post after the TC 022.

    3. Use appropriate URC to close the unpostable and cycle to post after the TC 016.

    There is a disapproved closed case on EDS (EDS status 02) and the unpostable is an extension:
    1. Remove the EO section using TC 022.

    2. Re-establish the EO section to status 40 using TC 016 Doc. Code 80 Definer code B.

    3. Cycle delay to post the extension after the TC 016.

    4. Input another TC 016 to change the EO status code back to status 70 or 72. Cycle to post after the TC 460.

    The 4947(a) box is checked on Form 990-PF,
    1. Update the Status to 12, Subsection Code 92, FYM and 990-PF filing requirements.

    2. URC "0" and cycle to post following the TC 016.

  2. For further instructions, see IRM 3.12.278.21.12, All returns/extensions-BMF EO Status is 20-26, 28, 29, 40, 41, 70-72.

3.12.278.21.7.6  (01-01-2015)
UPC 329 UP Form 990PF TC 660/670

  1. Perform the following research:

    1. Research CC INOLE to determine the current filing requirement.

    2. Research CC BMFOLI to determine filing pattern.

    3. Based on the findings on CC BMFOLI, research CC BMFOLT to determine if FTD payments were made on a different MFT; e.g., MFT 34. If found, URC 6 the unpostable to post on a different MFT.

  2. If nothing can be found on IDRS, research EDS for an "F" case or an "A" case. If either type of case is present, update the EO section, using CC EOREQ/CC EOCHG TC 016 Doc Code 80 Definer Code A to remove the 990 filing requirement (if necessary), and add the Form 990PF filing requirement, the appropriate foundation code, subsection code, classification code and remarks. URC 0 the unpostable and cycle to post after the TC 016.

  3. If there is no "F" case or an "A" case on EDS, order the document to determine where the payment needs to be applied. Make any necessary changes to Master File to post the payment.

  4. If still unable to resolve the unpostable and there is a 990 filing requirement on the module, change the EO section with a TC 016 Doc Code 80 Definer Code A to remove the 990 FR and add the Form 990PF FR of 1, Foundation Code of 04, Subsection Code of 03, Classification Code of 1, and Remarks. URC 0 the unpostable and cycle to post after the TC 016. After the TC 660 or 670 has posted, change the filing requirement back to 990 with another TC 016.

3.12.278.21.8  (01-01-2015)
UPC 329 Resolution RC 1 & 2 Form 990T

  1. The list below defines the FRCs for Forms 990T:

    • FRC 1 - Form 990-T required to be filed.

    • FRC 2 - Form 990-T for IRC 401(a) filers or 408 IRA.

  2. Use the table below to determine compatible filing requirements and a quick reference for correcting unpostable 990-T.

    FRC Compatible Tax Returns
    1 Form 990, 990-PF, 1120-POL, 1120-PC and 4720
    2 Form 941, 940, 944
  3. The Form 990T has a Type of Organization (TO) on the return. If the TO is:

    • 1, it is an exempt trust with a domestic address.

    • 2, it is an exempt trust with a foreign address.

    • 3, it is a 401(a) or 408 IRA trust, employee plan organization.

    • 4, it is an exempt corporation with a domestic address.

    • 5, it is an exempt corporation with a foreign address.

  4. TO 1, 2, 4 or 5 are filed by exempt organizations and must have a BMF Form 990 FRC of 01, 02, 04, 06 or 13 or a BMF Form 990PF FRC of 1.

  5. TO 3 is filed by employee plan organizations and cannot have an EO section. The name may contain words such as "pension" , "welfare" , "benefit" , "profit-sharing " , "IRA" or " retirement" .

  6. The Form 990T will unpost if the TO on the return does not agree with the BMF FRC. If the TO is 1, 2, 4, or 5:

    • The Form 990T FRC must be a 1, and

    • Either the Form 990 FRC must be 01, 02, 04, 06 or 13, or

    • The Form 990PF FRC must be 1 or

    • The EO Status must be 06, 07, 10 or 11.

  7. If the TO is a 3, the Form 990T FRC must be a 2 without any EO section on the BMF.

  8. Use the following table to resolve the unpostable:

    Subsection Code 990 FRC 990PF FRC TF EO Status
    02–27, 50, 60, 70, 71, 81 01, 02, 04, 06, 13      
    03 01, 02   10–18  
    03   01 02–04  
  9. If the 990T FRC is 0 and the TO is 1, 2, 4 or 5, process as follows:

    If Then
    CC INOLE/CC ENMOD/CC BMFOL shows a SS of 02–27, 50, 60, 70, 71, or 81 and 990 FRC is 01, 02, 04, 06 or 13:
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990T FRC to 1.

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

    CC INOLE/CC ENMOD/CC BMFOL shows a SS 03, 990 FRC of 01 or 02, and TF of 10–18:
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990T FRC to 1.

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

    CC INOLE/CC ENMOD/CC BMFOL shows a SS of 03, Form 990PF FRC of 1, and TF of 02–04,
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990T FRC to 1.

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

    CC INOLE/CC ENMOD/CC BMFOL shows no SS, 990 FRC of 06, and EO Status of 06, 07, 10 or 11,
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990T FRC to 1.

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

    INOLE/ENMOD shows a SS of 02–27, 50, 60, 70, 71, or 81 and 990-03 (Group Return)
    1. Research IDRS for another EIN for the organization shown on the 990-T

    2. If another EIN is found, release the unpostable with URC 6 to the correct EIN.

    3. If another EIN is not found, correspond with the organization using letter 4588C suspense for 45 days and inform them an exempt organization cannot file a Form 990-T as a group return. Title Holding Companies can file a consolidated 990-T with their exempt parent, however, this should not be referred to as a group return. Request a separate Form 990-T for each subordinate. Suspense the unpostable.

    4. If the organization replies and provides the correct EIN, release the unpostable with URC 6 and process to the correct EIN.

    5. If the organization does not reply or the response is incomplete, release the unpostable with URC 6 and post the 990-T to the parent organization's EIN.

      Note:

      Do not send a 3910 C letter.

  10. If the unpostable can not be resolved using the above table:

    1. Research EDS to determine the appropriate filing requirements.

    2. Research TRDBV to ensure TO code is correct.

    3. If the TO code is "3" , update the FR to 990-T-2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    4. If the appropriate filing requirements are found, update the BMF using TC 016 Doc. Code 80. Release the unpostable using URC 0 and cycle to post after the TC 016.

    5. If you are unable to determine the appropriate filing requirements, input a TC 016, Doc. Code 80, Definer B and status 40. URC 0 the unpostable. Cycle delay to close following the posting of the TC 016.

  11. If the TO is 1, 2, 4 or 5, the BMF Form 990T FRC is 0, the BMF Form 990 FRC is 0, and the EO Status is 41/70–72:

    If Then
    There is an open case on EDS:
    1. Update the EO Status Code to 40 using TC 016 Doc. Code 80 Definer Code B.

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

    There is an approved closed case on EDS (EDS Status Code 01, 06 or 09):
    1. Update the EO section on BMF using TC 016 Doc. Code 80 Definer Codes ABC; input the EO status as indicated on EDS, add the appropriate FRs, and delete the 1065/1041/1120 FR.

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

    The EO Status Code is 41, and there are prior year EO returns posted, and the subsection is 501(c) (3), (9), (17) or (20) (or cannot be determined,

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. update the EO section with a TC 016, Doc. Code 80, Definer Code B, to input EO Status Code 99.

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

    The EO Status Code is 41 and there are no prior year EO returns posted and the subsection is 501(c) (3), (9), (17) or (20) (or cannot be determined,

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. correspond with the organization using Letter 3909C informing them they do not have an exemption and in order to gain an exemption, they must file Form 1023 or 1024 with Cincinnati suspend the case for 45 days.

    2. If the organization responds with a copy of their determination letter, contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to verify the letter's validity. If the letter is validated, update the EO section on BMF using TC 016, Doc. Code 80, Definer Codes ABC with the appropriate information from the determination letter.

    3. Release the unpostable with URC 0 and cycle to post after the TC 016.

    4. If the organization fails to reply or their reply is incomplete, update the account to status 40 using TC 016, Doc. Code 80, Definer Code B.

    5. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS or there is no case on EDS:
    1. Update the EO Status Code to 99 with a TC 016 Doc. Code 80 Definer Code B. Do not remove the 1065/1041/1120 FR.

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

    There is a disapproved closed case on EDS or there is no case on EDS and the unpostable document is an extension in EO status 41:

    Note:

    Do not correspond if the unpostable is an extension.

    1. Allow the extension to post by changing the EO status code to 42 with a TC 016 Doc. Code 80 Definer code B.

    2. Cycle to post the TC 620/460 after the TC 016.

    3. Input another TC 016 to change the EO status code back to 41.

    4. Cycle to post the second TC 016 after the TC 620/460.

      Note:

      Due to incompatibility, you must update the account to status 42 for one cycle. Do not leave in status 42.

    There is a disapproved closed case on EDS or there is no case on EDS and the unpostable document is an extension in EO status 70, 71 or 72:
    1. Allow the extension to post by changing the EO status code to 31 with a TC 016 Doc. Code 80 Definer code B.

    2. Input another TC 016 to change the EO status code to 42.

    3. Cycle delay the TC 620/460 to post after the TC 016.

    4. Input another TC 016 to change the EO status code back to 70, 71 or 72.

    5. Cycle delay the third TC 016 to post after the TC 620/460.

  12. If the UPC 329 is for Form 990–T claiming the Small Business Health Care Credit, follow the instructions in 3.12.278.34.2 to resolve the unpostable.

  13. For further instructions, see IRM 3.12.278.21.12, All returns/extensions—BMF EO Status is 20-26, 28, 29, 40, 41, 70-72.

  14. If an organization files a Form 7004 extension , research CC INOLE to determine if the organization is a Form 990 or Form 990PF filer. If they are an exempt organization which has filed the wrong extension, release the unpostable with URC 8. Request Rejects cancel the DLN and change the MFT from 34 to 44 or 67.

3.12.278.21.9  (01-01-2015)
UPC 329 Resolution RC 1 & 2 Form 5227

  1. Form 5227, Split-Interest Information Return, is filed by Non-exempt Charitable Trusts under IRC 4947(a)(2). The entity SS must be 90 with an EO Status of 12.

  2. When the BMF 5227 FRC is 0 and the EO Status is 01–19:

    If Then
    CC ENMOD/CC BMFOL shows a SS of 90:
    1. Input TC 016 Doc. Code 80 Definer Code AB to update the Form 5227 FR and EO Status to 12.

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

    CC ENMOD/CC BMFOL shows the SS is blank and the EO Status is 12:
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 5227 FR and SS to 90.

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

    CC ENMOD/CC BMFOL shows the SS is 01–23, 40, 50, 60, 70, 80 or 91–93 or the SS is blank with an EO Status of 01–11 or 13–19:
    1. Research for another EIN with Form 5227 filing requirements. If found, URC 6 the unpostable to the correct EIN. If not found, follow instructions below.

    2. Assign a new EIN. Edit the new EIN on the return.

    3. Input TC 016 Doc. Code 80 Definer Code AB to update the Form 5227 FR and EO Status 12.

    4. URC 6 the unpostable to the corrected EIN. Cycle to post following the posting of the EIN and TC 016.

  3. For further instructions, see IRM 3.12.278.21.12, All returns/extensions —- BMF EO Status is 20-26, 28, 29, 40, 41, 70-72.

3.12.278.21.10  (01-01-2015)
UPC 329 Resolution RC 1 & 2 Form 5578

  1. Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax, is filed by private schools which are exempt under IRC 501(c)(3).

  2. The compatible filing requirement with Form 5578 is a Form 990 FRC of 01, 02 or 06 with:

    • a SS of 03, TF of 10 or 11, and EO Status of 01 or 02.

    • a SS of 03, and EO Status of 07, 10 or 11.

  3. When the BMF Form 990 FRC is 00 with a TF of 10 or 11 and the EO Status is 01–19:

    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990 FR.

    2. If the TF is 10, use Form 990 FRC of 06.

    3. If the TF is 11, use Form 990 FRC of 01 and 02.

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

3.12.278.21.11  (01-01-2015)
All Returns/Extensions - EO Status is Blank on BMF

  1. If CC INOLE/CC ENMOD shows the EO status is blank, research EDS.

    If Then
    There is an open case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Codes B to update the EO Status to 40 if the unpostable is a return or an extension if necessary.

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

    There is an approved closed case on EDS (EDS Status Code 01. 06 or 09 ):
    1. Input TC 016 Doc. Code 80 Definer Codes ABC to update the EO status as indicated on EDS and add the appropriate FR.

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

    There is a disapproved closed case on EDS:
    1. Call the organization using the number on the return or correspond with the taxpayer using the 4588C Letter informing them their recent application was disapproved and request additional information.

    2. If they respond with a letter of determination, update the EO status with TC 016 Doc. Code 80 Definer Codes ABC as indicated in the letter of determination and add the appropriate FR.

    3. If they respond with documentation indicating reapplication, update the EO Status to 40 if the unpostable is a return or an extension, with TC 016 Doc. Code 80 Definer Codes B.

    4. If no reply, update the EO Status to 99 with a TC 016 Doc. Code 80 Definer Code B. Release the unpostable with URC 0 and cycle to post after the TC 016.

    5. If the unpostable is an extension, input the extension with TC 460 on MFT 02 Form 1120 using CC REQ77. .Release the unpostable with URC D.

    There is no case on EDS: See IRM 3.12.278.34.2.
  2. Refer to the extension form. If the organization checked the incorrect box on the extension , edit the correct MFT on the extension. Call the organization using the number on the return or correspond with the taxpayer using Letter 4588C informing them of the correct return to file. Release the unpostable with URC 6.

  3. If an organization is in EO Status 97, 98 or 99 and filed an extension Form 8868 for an exempt organization return, input the extension with TC 460 on MFT 02 Form 1120 using CC REQ77 and URC "D" to release the unpostable condition.

3.12.278.21.12  (01-01-2015)
All Returns/Extensions - EO Status is 20–22, 26, 28, 29, 40, 41, 42, 70–72 on BMF

  1. If the unpostable return is a Form 990PF and the EO Status is 41 and 70–72, see IRM 3.12.278.21.7.5.

  2. If the unpostable return is a Form 990 and EO Status is 41/71, see IRM 3.12.278.21.3.3(7).

  3. If the unpostable return is a Form 990–T and EO status is 41 and 70–72, see IRM 3.12.278.21.8(11).

  4. If the EO status is 20–22, 26, 28, 29, 40, and 42 on CC INOLES/CC ENMOD:

    IF THEN
    There is an open case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Codes AB to update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/ 1120 FR if necessary.

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

    There is an approved closed case on EDS (EDS Status Code 01 or 06):
    1. Input TC 016 Doc. Code 80 Definer Codes ABC to update the EO status as indicated on EDS and add the appropriate FR.

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

    There is a disapproved closed case on EDS:
    1. Call the organization using the number on the return or correspond with the taxpayer using Letter 4588C informing them their recent application was disapproved and request additional information.

    2. If they respond with a letter of determination, update the EO status with TC 016 Doc. Code 80 Definer Codes ABC as indicated in the letter of determination and add the appropriate FR.

    3. If they respond with documentation indicating reapplication, update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/1120 FR with TC 016 Doc. Code 80 Definer Codes AB.

    4. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is no case on EDS and the EO Status is 20:
    1. Research to determine when and how the organization was terminated; e.g., final return, TC 591 or TC 016 Doc. Code 80.

    2. If the account was terminated in error, update the EO Status to 01 and add the appropriate FR with TC 016 Doc. Code 80 Definer Codes AB, release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the account was not terminated in error, call the organization using the number on the return or correspond with the organization with Letter 4588C informing them they were terminated or are out of business.

    4. If they respond with a letter of determination or documentation showing our records are in error, update the EO Status to 01 and add the appropriate FR with TC 016 Doc. Code 80 Definer Codes AB, release the unpostable with URC and cycle to post after the TC 016.

    5. If no reply or an insufficient response, update the EO Status to 01 and add the appropriate FR with TC 016 Doc. Code 80 Definer Codes AB, release the unpostable with URC and cycle to post after the TC 016. Monitor the account until the return posts. When the return posts, return the account to status 20

    There is no case on EDS and the EO Status is 21,
    1. Update the address if different from Master File.

    2. Research IDRS for a better address. If a better address is found, send the organization a 2475C Letter with a Form 8822 included. Do not update the address.

    3. Update the EO Status to 01 and add the appropriate FR with a TC 016 Doc. Code 80 Definer Codes AB, URC 0 to release the unpostable and cycle to post after the TC 016.

    EO status is 22 and TC 150 is unpostable,
    1. Check the docketed case listing. If the case is on the docketed case listing contact the attorney assigned to the case for resolution. Follow the attorney’s instructions. If the account is not on the docketed case listing, follow the instructions below.

    2. Call the organization using the number on the return or correspond with the organization using Letter 4588C informing their exemption was revoked and they are required to file a Form 1120/1041/1065.

    3. If the reply is a new letter of determination or documentation indicating our records are in error, update the EO Status 01 and add the appropriate FR with TC 016 Doc. Code 80 Definer Codes AB, release the unpostable with URC 0 and cycle to post after the TC 016.

    4. If no reply or an insufficient response update the EO Status to 99. Release the unpostable with URC 0 and cycle to post after the TC 016.

    EO status is 22 and extension is unpostable, URC 8 to release the unpostable. Ask Rejects to renumber to a Form 7004 for MFT 02 or 05.
    There is no case on EDS and the EO Status is 26:
    1. Call the organization using the number on the return or correspond with the organization using Letter 4588C informing them they were terminated and merged with another organization.

    2. If the reply is a new letter of determination or documentation indicating our records are in error, update the EO Status 01 with TC 016 Doc. Code 80 Definer Code AB, release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If no reply or an insufficient response, remove the EO section with a TC 022 and re-establish the EO section with a EO Status Code 40 if the SS=03/09/17/20 or EO Status Code 36 if the SS on the return is other than 03/09/17.

    There is no case on EDS and the EO Status is 28: See 3.12.278.21.3.3(4)
    There is no case on EDS and EO Status is 29: See 3.12.278.21.3.3(6) & 3.13.12.6.18.17
    There is no case on EDS and EO Status is 42:
    1. If the entity is a 501(c)(3), and the gross receipts are less than $5,000, update the EO Status Code to 31 with a TC 016 Doc Code 80 Definer Code B.

    2. If the entity is a church, update the EO Status Code to 30 with a TC 016, Doc Code 80 Definer Code B.

    3. If the return is marked with a Subsection Code of other than 03/09/17/20, establish the EO Section with a Form 990FR of 01, EO Status Code 36 using the current month and year as the status date, FYM, subsection code as indicated on the return, classification code and remarks with a TC 016 DOC. Code 80 Definer Codes AB.

    4. If the Subsection Code on the return is 03/ 09/17/20, update the EO Status Code to 40 with a TC016 Doc Code 80 Definer Code B.

    5. Release the unpostable with URC 0 and cycle to post after the TC 016.

  5. If the EO status is 23–25 on CCINOLES/ENMOD:

    IF THEN
    There is a 990-PF FR on the BMF:
    1. Call the organization using the number on the return or correspond with the taxpayer using Letter 4588C informing them our records indicate they should be filing a Form 990PF.

    2. If the organization replies with a Form 990PF, URC 8 to release the unpostable return and send to Rejects using a Form 13271 to cancel the DLN. Attach the unpostable return to the back of the return to be processed.

    3. If they do not reply, change the 990-PF FR to 990-01 using TC 016, Doc. Code 80, Definer Codes AB, correct Foundation Code, Status Code 01, 990-01

    4. URC 0 the unpostable and cycle to post after the TC 016.

    5. After the return posts, change the FR back to 990-PF.

    There are no FRs and an open case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Codes AB to update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/ 1120 FR if necessary.

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

    There are no FRs and an approved closed case on EDS (EDS Status Code 01 or 06):
    1. Input TC 016 Doc. Code 80 Definer Codes AB to update the EO status to an active status and add the appropriate FRs.

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

    There are no FRs and a disapproved closed case on EDS:
    1. Call the organization using the number on the return or correspond with the taxpayer using Letter 4588C informing them their recent application was disapproved and request additional information.

    2. If they respond with a letter of determination, add the appropriate FR and status code with TC 016 Doc. Code 80 Definer Codes AB.

    3. If they respond with documentation indicating reapplication, update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/1120 FR if necessary with TC 016 Doc. Code 80 Definer Codes AB.

    4. If no reply, update the EO status to 99.

    5. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There are no FRs and no case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Codes AB to update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/ 1120 FR if necessary.

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

  6. For further instruction on Status 25 refer to 3.12.278.21.3.6(8).

3.12.278.21.13  (01-01-2015)
UPC 329 All Returns and the Organization's Response to Correspondence

  1. When the unpostable is an EO return:

    If Then
    The organization responds with a completed return which agrees with the BMF FRC:
    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 .

    6. If there are posted prepaid credits on the unpostable MFT, transfer them to the correct tax module.

    The organization responded with information they are no longer exempt or out of business as an exempt organization, etc.:
    1. Release the unpostable using URC 0.

    2. Input TC 016 Doc. Code 80 Definer Codes AB to update the Status to 20 if there is no GEN on the BMF. If there is a GEN on the BMF, change status to 40 if the subsection is 501(c)(3), (9) or (17). Change to status 36 if subsection is other than 501(c)(3), (9) or (17). Cycle to post after URC 0.

      Exception:

      If the organization is a 501(c)(3) with assets greater than $100,000, input the Status 20 and send the correspondence to Cincinnati indicating Status 20 was input and a T case needs to be established.

    3. Use the current date as the status date.

    The organization responds their exemption was revoked and attaches the revocation letter:
    1. Release the unpostable using URC 0.

    2. Input TC 016 Doc. Code 80 Definer Code B and update the Status to 22. Cycle to post after the URC 0.

    3. Use the date of the letter for the status date.

    The organization did not reply or responded with information they filed the correct return or you are unable to make a determination from the response, Follow the specific instructions for each type of return found in this IRM.
  2. A determination letter received in response to a letter issued by Unpostables should be processed using the procedures in 3.12.278.21.14 below.

3.12.278.21.14  (01-01-2015)
UPC 329 Determination Letters From Organizations

  1. When the organization responds with a copy of a Letter 948(DO), 1194(DO), 1051(DO), 1075(DO), 1076(DO), a memo from Cincinnati, or a Form M4280 (the old Determination Form Letter), the organization was granted an exemption.

    1. Research EDS to verify the same information is contained on EDS and no later determination was issued. If EDS is in agreement with the letter, input a TC 016 Doc. Code 80 with the appropriate definer code to update BMF. Release the unpostable with URC 0 and cycle to post after the TC 016. If EDS is not in agreement with the determination letter, contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the correspondence team in Cincinnati to determine the proper determination letter.

    2. If there is no record in EDS, update the account with a TC 016 Doc. Code 80 with the appropriate definer code according to the filing requirements contained in the determination letter. Release the unpostable with URC 0 and cycle to post after the TC 016.

3.12.278.21.15  (01-01-2015)
UPC 329 Lead Instructions for Completing Status 22/41/70-72 Cases

  1. After the tax examiner has worked an UPC 329 in Status 22 (No open court case) or /41/70-72 and was unable to post the return, the EO Status Code should be updated to 99 and the return is allowed to post.

  2. In determining the disposition of a case, every effort should be made not to cancel the DLN and remove the return from processing unless the correct return for the same tax period and filer was secured through contact with the filer or instructed to do so by counsel.

  3. If the tax examiner is working an UPC 329 in Status 22 with an open court case, process as follows:

    1. If the purge date has expired and there is still no resolution, have the tax examiner close the case with URC 8 to have rejects cancel the DLN. Put the case in the ST 22, 28 or 29 basket.

    2. Create an open control on TXMOD and file the cases in a suspense file. The file should be monitored on a biweekly or monthly basis for resolution.

3.12.278.22  (01-01-2015)
UPC 331 Return Liability and Assessment Inconsistency

  1. RC2 - Non-math error zero liability return containing a remittance (not applicable to Forms 990, 990EZ, 990PF, 1041A, or 1065 for tax period 7912 and later).

3.12.278.22.1  (01-01-2015)
UPC 331 Resolution

  1. If a non-math error has a liability, re-input the return with a notation "To Pick Up Tax Liability." Release with URC 8.

  2. See IRM 3.12.279.

3.12.278.23  (01-01-2015)
UPC 341 TIN Resequenced

  1. RC 1 - An input transaction attempted to establish a tax module in an account in which all FR codes are 8.

  2. RC 2 - A TC 474 or TC 960 attempts to post with no related filing requirement code. Exception:

    • TC 474 for MFT 01/10 (Form 941/940) when the TC 474 Doc. Code is 77 and the Blocking Series is 5XX

    • TC 474 with MFT 14.

3.12.278.23.1  (01-01-2015)
UPC 341 Resolution - Unpostables

  1. When the UPC 341 RC 1 TC is not 120, 132, 141, 142, 147, 30X, 42X, 470–475, 480–483, 488, 489, 582, 583, 590–599, 920, 922, 930 or 96X, the case is assigned by GUF to B3 category.

  2. All RC 2 cases are closed by GUF using URC 2 and routed back to the initiator.

  3. TC 59X transactions are closed by GUF using URC 2 and routed back to the initiator.

  4. TC 914 cases are assigned to Criminal Investigation.

  5. All other cases, verify the EIN.

    If Then
    The EIN is valid, Release the unpostable using URC 6 and the cross reference EIN.
    The cross reference EIN is all zeroes:
    1. Research for an active EIN.

    2. Release the active EIN and unpostable using URC 6, if an active EIN is found.

3.12.278.23.2  (01-01-2015)
UPC 341 Resolution

  1. Research for another EIN as a result of an EIN consolidation. Verify the original consolidation was correct.

  2. If the entities on both EINs are the same, do not reopen the unpostable EIN. Release the unpostable using URC 6 and the correct EIN.

  3. Use caution when reopening an account which has all 8's due to a no-merge condition.

  4. An account which has all 8's due to the posting of a TC 020 may be reopened.

    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. Use TC 012, Doc. Code 80, Definer Code A to reopen an EO account.

  6. If the unpostable EIN should not be reopened, research for a better EIN:

    If Then
    A better EIN is found:
    1. Release the unpostable using URC 6 and the correct EIN.

    2. Send Letter 3910C informing the organization of the correct EIN.

    No better EIN is found:
    1. Use CC ESIGN and assign a new EIN.

    2. Release the unpostable using URC 6 and cycle to post after the establishment of the new EIN.

    3. Notify Cincinnati of the new EIN, if necessary.

3.12.278.24  (01-01-2015)
UPC 342 RC 9 Form 8038-CP

  1. An unpostable 342 RC 9 occurs when a TC 290/300 credit reference number 297/298 failed to match exactly to a prior posted CRN 297/298.

3.12.278.24.1  (01-01-2015)
UPC 342 RC 9 Form 8038-CP Resolution

  1. Resolve the unpostable with URC 2 to originator for correction.

3.12.278.25  (01-01-2015)
UPC 347 RC 1

  1. A unpostable 347 RC 1 occurs when a transaction attempts to post to a module which has been removed to the Retention Register.

  2. Use CC BMFOLB to request the tax module be reestablished to the Master File. Release using URC 0 to post after the module is reestablished.

  3. If BMFOLB does not indicate the module is being reestablished, research for the unpostable tax period on CC BMFOLV. If the module is on BMFOLV, input CC UPCASMB to generate a request for the microfilm transcript.

  4. If the transcript and document are not an exact match and no TC 150 is on the transcripts, complete Form 5248, Transfer Request and send to Accounting to transfer-in the module. See IRM 3.12.279.153 for more instructions.

3.12.278.26  (01-01-2015)
UPC 351 Form 5768

  1. RC 1 - A TC 024 (Form 5768) attempts to post an entity with a Subsection Code other than 03.

  2. RC 2 - A TC 024 (Form 5768) attempts to post to an entity with a Subsection Code of 03 and a Foundation Code of 02, 03, 04,10, or 11.

3.12.278.26.1  (01-01-2015)
UPC 351 Resolution - Unpostables

  1. All UPC 351 cases are assigned by the GUF system to B3 category.

  2. A charge out is generated to Files for routing of the documents to Unpostable.

3.12.278.26.2  (01-01-2015)
UPC 351 Resolution of Voided Documents

  1. Form 5768, Election/Revocation of Election by an Eligible IRC 501(c)(3) Organization to Make Expenditures to Influence Legislation, is filed by an organization which is exempt under IRC 501(c)(3) and files a Form 990. A TC 024 indicates an election; a TC 023 indicates a revocation.

  2. Form 5768 is posted with a TC 024 (election) or TC 023 (revocation).

  3. If the unpostable transaction is TC 024.

    If Then
    There is no EO section on the BMF and no "I" case on EDS.
    1. Correspond with the organization requesting they attach the Form 5768 to their Form 1023 when they file for tax-exempt status. Include the Form 5768 with the letter.

    2. Resolve the unpostable with URC D.

    There is no EO section on the BMF but there is an "I" case on EDS:
    1. Correspond with the organization requesting they send the Form 5768 to:
      IRS - TEGE
      P.O. Box 2508
      Cincinnati, OH 45201

      IRS - TEGE
      Room 4024
      550 Main St.
      Cincinnati, OH 45202
      Include the Form 5768 with the letter.

    2. Resolve the unpostable with URC D.

    There is an EO section on the BMF but the EO subsection is other than 03:
    1. Notify the organization they are ineligible to file Form 5768 and the form can not processed. Attach the Form 5768 to the letter.

    2. Release the unpostable with URC D.

    There is an EO section on the BMF, the EO subsection is 03, but the Foundation Code is 02, 03, 04, or 10:
    1. Notify the organization they are ineligible or disqualified to file Form 5768 and the form can not be processed. Attach the Form 5768 to the letter.

    2. Release the unpostable with URC D.

    Note:

    When sending the return back to the taxpayer, black out the DLN and circle out the date stamp.

  4. If the unpostable transaction is TC 023, research for a better EIN.

    If Then
    No EIN is found:
    1. Notify the organization we have no record of an election to influence legislation. Attach the Form 5768 to the letter.

    2. Release the unpostable with URC D.

    A better EIN is found, Release the unpostable with URC 6 to correct the EIN.

3.12.278.27  (01-01-2015)
UPC 355 Form 990PF

  1. RC 1 - A TC 150 for MFT 44 (Form 990PF) attempts to post with:

    • An Operating Foundation Test Score of zero, and

    • The current Foundation Code in the entity EO section is 03.

  2. RC 3 - A TC 150 for MFT 44 attempts to post with:

    • A 4940 Code of 2,

    • A tax period of 198612 or subsequent, and

    • The current Foundation Code in the EO entity section is not 02.

    Note:

    A corrected UPC 355 will not bypass this reason code.

  3. RC 4 - A TC 150 for MFT 44 attempts to post with:

    • An Operating Foundation Test Score of zero, and

    • The current Foundation Code in the EO entity section is 02.

    Note:

    A corrected UPC 355 will not bypass this reason code.

3.12.278.27.1  (01-01-2015)
UPC 355 Resolution - Unpostables

  1. All UPC 355 cases are assigned to category B3 by the GUF system.

3.12.278.27.2  (01-01-2015)
UPC 355 Resolution Background Information

  1. For RC 1 and 4, the Operating Foundation Test Score is generated by the system. An Operating Foundation Test Score of zero (which will unpost the return) is generated when:

    • The tax period is prior to 197412, OR

    • There are no positive amounts in Part XIV, OR

    • Part I, Line 27c is equal to zero AND Part XIV, Line 2a, column e is equal to zero.

  2. For RC 3,

    1. The 4940 code of 2 indicates domestic exempt operating foundations (SS 03, TF 02) described in IRC 4940(d)(2) do not owe any excise tax on net investment income if they have a ruling letter from IRS establishing tax exempt operating foundation status.

    2. The 4940 code of 3 indicates private operating foundations (SS 03, TF 03), private non-operating foundations (SS 03, TF 04), and non-exempt charitable trusts (SS 92, TF 00) qualify for the tax reduction of 1% on net investment income; i.e., Line 8 is equal to or greater than Line 7 in Part V.

  3. There are three private foundation classifications:

    • TF 02, Exempt Operating Foundation covered under IRC 4940(d)(2), excise tax rate on net investment income - 0%

    • TF 03, Private Operating Foundation, excise tax rate on net investment income - 2% or 1%

    • TF 04, Private Non-Operating Foundation, excise tax rate on net investment income - 2% or 1%

  4. Reduction in excise tax on net investment income - For tax years beginning after 1984, the tax rate on net investment income reduced from 2% to 1% for any private foundation which meets the following distribution requirements:

    1. The foundation makes qualifying distributions during the tax year at least equal to the sum of the assets of the foundation for the tax year multiplied by its average percentage pay out for the base period, plus 1% of the foundation's net investment income for the tax year, and

    2. The foundation was not liable for Chapter 42 excise taxes for any year of the base period.

  5. Effective for tax years beginning after 1984, certain private operating foundations, know as exempt operating foundations, are not subject to the tax on net investment income. To qualify as an exempt operating foundation for a tax year, a private foundation must meet all the following requirements:

    1. It must be a private foundation,

    2. It was publicly supported for at least 10 tax years or was a private operating foundation on January 1, 1983, or for its last tax year ending before January 1, 1983,

    3. Its governing body, at all times during the tax year, consists of individuals less than 25% of whom are disqualified individuals, and is broadly representative of the general public, and

    4. It has no officer who is a disqualified individual at any time during the tax year.

      Note:

      A disqualified person is a substantial contributor, a foundation manager, a person who owns more than 20% of a business which is a contributor, a family member of a disqualified person, and certain government officials.

  6. If the organization is claiming to be an Exempt Operating Foundation (TF 02), the following parts of the Form 990PF should be completed:

    • Part VI, box on Line 1a checked

      Note:

      If this box is checked, the organization must provide a determination letter of foundation classification or the ruling date of the letter. This is a second letter of determination, not the first determination letter of tax exempt status.

      Caution:

      Foundation Code 02 requires an organization have public support for a period of at least 10 years before it can qualify for the tax exemption granted in this category. To screen the return, research CC INOLE/CC ENMOD for the establishment year of this entity; it should be at least 10 years prior to the tax year for which the return is being filed.

    • Part VII-A, Line 9 is Yes

    • Part XIV

    Note:

    For TF 02, Part XIV, Line 2a is equal to the lesser amount of either Part X, Line 6, or Part I, Line 27c. This amount must be greater than zero.

  7. A private operating foundation is an organization which is described under IRC 4942(j)(3) or (5). It means any private foundation which spends at least 85% of the smaller of its adjusted net income (figure in Part I) or its minimum investment return (figured in Part X) directly for the active conduct of the exempt purpose of functions for which the foundation is organized and operated and also meets the assets test, the endowment test, or the support test (discussed in Part XIV).

  8. If the organization is claiming to be a Private Operating Foundation (TF 03), the following parts of Form 990PF should be completed:

    • Part I, column c

    • Part VII-A, Line 9 is Yes

    • Part VI, Box on Line 1b is checked (only if the organization is applying for 1% reduced tax on net investment income)

    • Part XIII ( if applying for 1% reduced tax on net investment income

    • Part XIV (the ruling date on Line 1a must be completed if received during the current tax period)

  9. A non–operating private foundation is a private foundation which is not a private operating foundation.

  10. If the organization is claiming to be a Private Non-Operating Foundation (TF 04), the following part of Form 990PF should be completed:

    • Part I, column c

    • Part VII-A, Line 9 is No

    • Part VI, Box on Line 1b is checked (only if the organization is applying for reduced tax on net investment income of 1% instead of 2%)

    • Part XIII

    Note:

    Parts X, XI and XII must also be completed by TF 04. The parts indicated above for each foundation code are to distinguish one foundation code classification from another. It is not meant to indicate all parts of the form which need to be completed. For example, Part X and XII are to be completed by TF 02, TF 03 and TF 04.

3.12.278.27.3  (01-01-2015)
UPC 355 Resolution Specific Instructions RC 1

  1. This 990PF return unposted because the Operating Foundation Test Score is zero and the TF is 03. Verify the organization is an operating foundation with IDRS/EDS research.

  2. Determine if the organization completed the Form 990PF as a TF 03.

    1. Check Part I, column c for entries.

    2. Check Part VII-A, Line 9 for a yes answer.

    3. If marked No, change to YES and correct the 2 edited in the margin to 1.

    4. Check Part XIV for a positive value in column (e) and a ruling date on Line 1a.

      Note:

      Often the organization will incorrectly complete the return by answering yes to Part VII-A, Line 9 but there are no entries in Part I, column c and Part XIV.

  3. If the organization answered yes to Part VII-A, Line 9 but there is a negative amount in Part XIV, column (e), check Line 6, Part X and Line 27c, Part I. If either or both of these lines have a value greater than zero:

    1. If there are negative amounts in Part XIV, Line 2a, columns (b) through (d), changes those amounts to zero.

    2. Enter the lesser (positive) amount from Part I or Part X on Line 2a, column (a) and the corrected total (positive) amount on Line 2a, column (e).

    3. Release the unpostable using URC 8.

    4. Request Rejects add all the information from Part XIV to the proper section.

  4. If the organization answered yes to Part VII-A, Line 9 but there are no entries in Part XIV, check Line 6, Part X and Line 27c, Part I. If either or both of these lines have a value greater than zero:

    1. Enter the lesser (positive) amount on Line 2a, column (a) and column (e).

    2. Release the unpostable using URC 8.

    3. Request Rejects add all the information from Part XIV to the proper section.

  5. If an amount for Line 2a, column (a) and column (e) can not be determined because there is no positive amount on either Part X, Line 6 or Part I, Line 9 and you have verified the organization is an operating foundation through research, Part XIV is required),

    1. Edit $1 in Part XIV on Line 2a, Columns (a) and (e).

    2. Release the unpostable with URC 8.

    3. Request Rejects add all the information from Part XIV to the proper section and continue processing.

    Note:

    Limited Forms 990PF will always unpost as UPC 355 because they are not required to complete Part XIV. The Form 990PF is marked "Limited" or "Rev. Proc. 79–8 " . Only the entity sections and Part I, Column (b) are completed usually; though there may also be entries in Parts II through XVII. Add a $1 to Part XIV line 2a, columns (a) and (e) to post the return. If part XIV is omitted, make a copy of part XIV, edit a $1 as instructed above and post return.

  6. If the organization did not complete the return as TF 3, follow the instructions in paragraph (5) above.

3.12.278.27.4  (01-01-2015)
UPC 355 Resolution Specific Instructions RC 2

  1. UPC 355 RC 2 only applies to 990PF returns for tax periods 198501 through 198611 and should no longer be generated .

3.12.278.27.5  (01-01-2015)
UPC 355 Resolution Specific Instructions RC 3

  1. This 990PF return unposted because there is a 4940 Code of 02 but the TF on MF is not 02.

  2. Determine if the organization completed the Form 990PF as a TF 02 filer:

    • Check to see if the box is checked on Line 1a, Part VI.

      Note:

      If the box is checked, the organization must provide a determination letter of foundation classification or the ruling date of the letter. Also the organization must have public support for a period of at least 10 years before it can qualify for the tax exception granted in this category. Be sure to research CC INOLE/CC ENMOD for the establishment year of this entity; it should be at least 10 years prior to the tax year for which the return is being filed.

    • Check to see if Line 9, Part VII-A is marked Yes.

    • If marked No, change to YES and correct the 2 edited in the margin to 1.

    • Check to see if Part XIV is completed.

  3. If the organization is claiming to be an Exempt Operating Foundation covered under IRC 4940(d)(2), correspond with the organization using Letter 4588C indicating our records show the organization is a different type of Form 990PF filer. Request a determination letter of foundation classification or the necessary information.

    1. If the organization provides the determination letter of foundation classification, use CC EOCHG to input a TC 016 Doc. Code 80 Definer Code A to update the TF to 02, release the unpostable using URC 8, and request Rejects add the information from the organization to the return.

    2. If the organization does not provide the necessary information, URC 8 and request Rejects delete the 4940 code.

3.12.278.27.6  (01-01-2015)
UPC 355 Resolution Specific Instructions RC 4

  1. This 990PF return unposted because the Operating Foundation Test Score is zero and the TF on MF is 02. Verify the organization is an exempt operating foundation with IDRS/EDS research.

  2. Determine if the organization completed the Form 990PF as a TF 02 filer:

    • Check to see if the box is checked on Line 1a, Part VI.

      Note:

      If the box is checked, the organization must provide a determination letter of foundation classification or the ruling date of the letter. Also the organization must have public support for a period of at least 10 years before it can qualify for the tax exception granted in this category. Be sure to research CC INOLE/CC ENMOD for the establishment year of this entity; it should be at least 10 years prior to the tax year for which the return is being filed.

    • Check to see if Line 9, Part VII-A is marked Yes.

    • If marked No, change to YES and correct the 2 edited in the margin to 1.

    • Check to see if Part XIV has positive amounts entered on Line 2a, columns (a) and (e).

      Note:

      Often the organization will incorrectly complete the return by answering yes to Part VII-A, Line 9 but there are no entries in Part XIV.

  3. If the organization answered yes to Part VII-A, Line 9 but there are no entries in Part XIV, check Line 6, Part X and Line 27c, Part I. If either or both of these lines have a value greater than zero:

    1. Enter the lesser (positive) amount on Line 2a, column (a) and column (e).

    2. Release the unpostable using URC 8.

    3. Request Rejects add all the data to the proper section.

  4. If the organization answered yes to Part VII-A, Line 9 but there is a negative amount in Part XIV, Line 2a, columns (e), check Line 6, Part X and Line 27c, Part I. If either or both of these lines have a value greater than zero:

    1. If there are negative amounts in Part XIV, Line 2a, columns (b) through (d), change those negative amounts to zero.

    2. Enter the lesser (positive) amount from Part I or Part X on Line 2a, column (a) and the corrected total (positive) amount on Line 2a, column (e).

    3. Release the unpostable using URC 8.

    4. Request Rejects add all the data to the proper section.

  5. If an amount for Line 2a, column (a) and column (e) can not be determined because there is no positive amount on either Part X, Line 6 or Part I, Line 27c and you have verified the organization is an exempt operating foundation through research (therefore Part XIV is required),

    1. Edit $1 in Part XIV on Line 2a, Columns (a) and (e).

    2. Release the unpostable with URC 8.

    3. Request Rejects add all the information from Part XIV to the proper section and continue processing.

      Note:

      Limited Forms 990PF will always unpost as UPC 355 because they are not required to complete Part XIV. The Form 990PF is marked "Limited" or "Rev. Proc 79–8" . Only the entity section and Part I, Column (b) are completed usually; though there may also be entries in Part II through XVII. Add a $1 to Part XIV line 2a columns (a) and (e) to post the return. If part XIV is omitted, make a copy of part XIV, edit $1 as instructed above, and post return.

  6. If the organization did not complete the return as a TF 2, suspend the unpostable and correspond with the organization to determine why they did not complete the Form 990PF as an Exempt Operating Foundation.

    1. If the organization responds with a correctly completed Form 990PF, URC 8 to cancel the DLN on the unpostable return, attach the unpostable return behind the correct Form 990PF, and send the corrected return through for processing.

    2. If the organization responds with a determination letter indicating they have a Foundation Code of 3 or 4, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If the letter is valid, update the foundation code with a TC 016 Doc. Code 80 Definer Code A. URC 0 to the post the return and cycle to post after the TC 016.

    3. If the organization fails to respond, follows the instructions in paragraph (5) above.

3.12.278.28  (01-01-2015)
UPC 356 Form 5578

  1. RC 1 - A Form 5578 (TC 157 Document Code 84) attempts to post and a TC 157 for the same tax period has already posted to the tax module.

    Note:

    TC 157 should post to the controlling entity listed on Line 1b of the Form 5578. Multiple forms may be filed by a church under their EIN for the schools they control.

3.12.278.28.1  (01-01-2015)
UPC 356 Resolution - Unpostables

  1. Any UPC 356 cases received in Unpostables should be assigned to B3 category.

3.12.278.28.2  (01-01-2015)
UPC 356 Resolution

  1. Check the entity on the Form 5578 with the BMF. If the entity on the Form 5578 matches the BMF, check the tax period of the document.

    If Then
    The wrong tax period was coded on the return:
    1. Perfect the document with the correct tax period.

    2. Resolve the unpostable with URC 6.

    The tax period was coded properly and the Form 5578 was filed by a church for the schools they control:
    1. Cross out the DLN and URC D the unpostable.

    2. Route the return to Files for association with the posted TC 157.

  2. If the entity on the Form 5578 does not agree with the BMF, research for another EIN.

    If Then
    Another EIN is found:
    1. Perfect the document with the proper EIN.

    2. Resolve the unpostable with URC 6.

    3. Send 3910C letter.

    No EIN is found:
    1. Assign a new EIN using CC ESIGN and MFI O.

    2. If a GEN is on the return, or the organization appears to be part of a group ruling, use the information from the pilot voucher and input a CC EOCHG TC 016, Doc. Code 80 with Status Code 01, and the appropriate posting delay code.

      Note:

      You must research the SGRI to determine if the organization was removed from the group ruling. If the organization was removed, follow the instructions in paragraph (c) below.

    3. If no GEN number is on the return and the organization does not appear to be part of group ruling, input CC EOCHG TC 016, Doc. Code 80 with Status Code 40 and the appropriate posting delay code.

    4. Resolve the unpostable with URC 6.

3.12.278.29  (01-01-2015)
UPC 357 EO Entity/Examination Criteria

  1. RC 1 - Reserved.

  2. RC 2 - A TC 424 without Source Code 80 is input to an EO account and the entity Taxpayer Compliance Measurement Program (TCMP) Sample Code indicates this tax period is covered by TCMP.

3.12.278.29.1  (01-01-2015)
UPC 357 Resolution - Unpostables

  1. All UPC 357 cases are closed by GUF using URC 2.

  2. A charge out is generated for Files to route the document back to the originator.

  3. If any UPC 357 cases are received, they should be routed back to the originator.

3.12.278.30  (01-01-2015)
UPC 358 Incompatible EO Status

  1. RC 1 - Any transaction which attempts to update the Entity EO Status as follows:

    FROM
    (EO Entity Status)
    TO
    (Input Status/Subsection)
    01–03 06, 07, 10, 11, 30, 31, 33–36, 40, 41, 70–72, 99
    06 01–03 (If input TC has a non-zero subsection code), 07, 10–12, 18, 19, 22–26, 28, 29, 30–36,40, 41, 97-99
    07, 10, 11 01–03 (If input TC has a non-zero subsection code), 06, 12, 18, 19, 22–26, 28, 29, 40, 41, 97-99
    12 02, 03 (If input TC has a non-zero subsection code) 06, 07, 10, 11, 18, 19, 22–26, 28, 29, 40, 41, 99
    18, 19 06, 07, 10–12, 28, 29, 40, 41, 70–72, 99
    20 18,19, 40, 41, 70–72, 99
    21 Anything except 97 or 99
    22 06, 07, 10, 11, 18, 19, 30–36, 40, 41, 70–72, 97
    23–25 06, 07, 10-12, 18, 19, 28, 29, 30–36, 40, 41, 70–72, 98, 99
    26 06, 07, 10–12, 18, 19, 22–25, 40, 41, 70–72, 98, 99
    28,29 Anything except 01–03, 22, 28, 29, 97-99
    30 06, 12, 18, 19, 22–26, 28, 29, 31–36, 40, 41, 99
    31 06, 07, 10-12, 18, 19, 22-26, 28, 29, 30, 32-35, 41, 99
    32 06, 07, 10–12, 18, 19, 23–25, 28, 29, 30, –31, 33–36, 40–42, 70–72, 99
    33 01–03 (If input is TC 016 with zero subsection code), 06, 07, 10–12, 18, 19, 22–26, 28–32, 34–36, 40, 41, 99
    34 01–03, 06, 07, 10–12, 18, 19, 22–25, 28–33, 35, 36, 40, 41, 70–72, 99
    35 01–03, 06–07, 10–12, 18, 19, 22–25, 28–34, 36, 40, 41, 70–72, 97, 99
    36 06, 07, 10–12, 18, 19, 20–25, 28, 29, 30–35, 40, 99
    40 01–03 (If input is TC 016 with zero subsection code), 18–20, 22–26, 28, 29, 32, 97, 99
    41 01–03 (If input is a TC 016 with a zero subsection code), 18- 20, 22–26, 28, 29, 30, 32–35, 40
    42 01–03 (If input is a TC 016 with a non-zero subsection code), 18, 19, 20–26, 28, 29, 32, 97-99
    70 Anything except 01–03, 31, 36, 42, 70–72 , 97-99
    71 Anything except 01–03, 31, 36, 70-72, 97-99
    72 Anything except 01–03, 31, 36, 42, 70–72 , 97-99
    97 06-12, 18-22, 26, 28-30, 33, 35, 40-42, 70-72, 98, 99
    98 Anything except 01, 02, 20-22, 26, 31, 32, 36, 40-42, 70-72, 97
    99 Anything except 01–03, 20, 70-72, 97

3.12.278.30.1  (01-01-2015)
UPC 358 Resolution - Unpostables

  1. All UPC 358 cases are closed by GUF using URC 2. .

3.12.278.30.2  (01-01-2015)
UPC 358 Resolution

  1. Review the unpostable document and the current EO status.

    1. If the EO status still needs updating, re-input the transaction using the correct status and subsection codes along with any other required elements. See IRM 3.13.12.6.2.4 for more information on required elements.

    2. If no updating is required, destroy the unpostable document using local procedures.

  2. If you did not input the unpostable transaction and cannot determine the originator's intent, contact the originator.

    1. If the originator still needs the status updated, re-input the transaction using the correct status and subsection codes along with any other required elements. See IRM 3.13.12.6.2.4 for more information on required elements.

    2. If no updating is required or you cannot contact the originator, destroy the unpostable document using local campus procedures.

3.12.278.31  (01-01-2015)
UPC 359 TC 020/022

  1. RC 1 - A TC 020 attempts to post to the BMF and the entity EO Status is 01–03, 06, 07, 10–12, 18, 19, 25.

  2. RC 2 - A TC 022 attempts to post and the Affiliation Code is either 6 or 8 (parent of a group).

  3. RC 3 - A TC 022 attempts to post and a tax module for MFT 34/37/44/50/67 has:

    • An unreversed TC 424 or 420, or

    • A TC 427 not followed by a subsequent TC 421.

  4. RC 4 - A TC 022 attempts to post and:

    • There is a –T freeze on the account; or

    • Any MFT 34/37/44/50/67 tax module contains one or more of the following freezes: –A, E–, –F, J–, –J, N–, O–, P–, –R, –S, T–, –U, –V, W–, –W, X–, –X, –Y, –Z.

  5. RC 5 - A TC 420/424 addressing MFT 34/37/44/50/67 attempts to post and a TC 022 is previously posted (no EO section).

    Note:

    This condition is bypassed if the input MFT is 34 and the Form 990T FRC is 2.

  6. RC 6 - A TC 022 is input to delete the EO Subsection and the account does not contain an EO Subsection.

  7. RC 7 - A TC 971 AC 777 (means Form 990-BL has posted to NMF) will unpost if FRC=01 (FRC=04 is the correct value for Form 990-BL)

3.12.278.31.1  (01-01-2015)
UPC 359 Resolution All RC - Unpostables

  1. All UPC 359 cases are closed by GUF using URC 2.

3.12.278.31.2  (01-01-2015)
UPC 359 Resolution RC 1 – 5

  1. Review the unpostable document and the current EO status.

    1. If there is no reason to re-input the unpostable transaction, no further action is required.

    2. If the unpostable transaction needs to be re-input, you must resolve the unpostable condition prior to re-inputting the transaction.

  2. Caution must be used when resolving the unpostable condition. Keep the following items in mind:

    • EO accounts are normally terminated by Cincinnati with EO Status 20, 22, 23, 24, or 26 when they become inactive.

    • Processing of final returns, EO Delinquency Notices (CP 420-429), and CP 140/144 Notices sometimes result in the input or generation of EO Status 20.

    • Parents of Group Rulings, through the submission of their annual SGRI data, identify subordinates which are terminated. EO Status 28 is systemically input to these accounts when the parent organization is in Status 29.

      Note:

      Status 28 and 29 are not used for campus processing.

  3. Destroy the unpostable document following local procedures.


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