3.12.278  Exempt Organization Unpostable Resolution

Manual Transmittal

December 10, 2013

Purpose

(1) This transmits a complete revision of IRM 3.12.278, Exempt Organization Unpostable Resolution, in IRM 3.12., SC Error Resolution.

Material Changes

(1) Various editorial changes throughout

(2) IRM 3.12.278.2 - IPU 13U0020 issued 01-02-2013 Increased the manual refund amount.

(3) IRM 3.12.278.3 - IPU 13U0020 issued 01-02-2013 Added alternative if SEIN is not available.

(4) IRM 3.12.278.5 - IPU 13U0098 issued 01-09-2013 Added FRM49 closing code format to three digits.

(5) IRM 3.12.278.3.5.8 IPU 13U0098 issued 01-09-2013 Added FRM49 closing code format to three digits.

(6) IRM 3.12.278.5 - IPU 13U0020 issued 01-02-2013 Added editing instructions when return is received after corresponding.

(7) IRM 3.12.278.9.1 - IPU 13U0020 issued 01-02-2013 Changed TC013 information regarding name changes

(8) IRM 3.12.278.9.2 -IPU 13U0020 issued 01-02-2013 Removed FTD information.

(9) IRM 3.12.278.14.3 IPU 13U0020 issued 01-02-2013 - Added correspondence information

(10) IRM 3.12.278.14.4 IPU 13U0020 issued 01-02-2013 - Added information regarding outstanding balances.

(11) IRM 3.12.278.16.2 IPU 13U0020 issued 01-02-2013 - Added editing information

(12) IRM 3.12.278.19.2 IPU 13U0020 issued 01-02-2013 - Added editing information

(13) IRM 3.12.278.21.2 IPU 13U0020 issued 01-02-2013 - Increased manual refund amount

(14) IRM 3.12.278.21.3.1 IPU 13U0098 issued 01-09-2013 - Added FRM49 closing code format to three digits.

(15) IRM 3.12.278.21.4 IPU 13U0341 issued 02-13-2013 - Corrected cross reference.

(16) IRM 3.12.278.21.8 IPU 13U1116 issued 06-18-2013 - Changed status 42 to status 40.

(17) IRM 3.12.278.21.8 - IPU 13U1245 issued 07-17-2013 Added separate instructions for extensions in status 41, 70, 71 or 72.

(18) IRM 3.12.278.21.11 IPU 13U0943 issued 05-17-2013 Changed extension instruction to input TC 460.

(19) IRM 3.12.278.28.2 IPU 13U0020 issued 01-02-2013 - Added direction to send 3810c ltr.

(20) IRM 3.12.278.31 IPU 13U0020 issued 01-02-2013 - Added RC 7 for UPC 359

(21) IRM 3.12.278.32.8 IPU 13U0745 issued 04-17-2013 - Added UPC 363 RC 8 processing instructions

(22) IRM 3.12.278.32.9 IPU 13U0745 issued 04-17-2013 - Added UPC 363 RC 9 processing instructions

(23) IRM 3.12.278.34.2 IPU 13U0943 issued 05-17-2013 Added note regarding federal credit unions and Form 990-T claiming 45R credit on account with Form 1120 FR.

(24) IRM 3.12.278.34.2 -IPU 13U1262 issued 07-22-2013 Added instructions for processing unpostable payments on Form 4720 Part II-A for an SSN.

(25) IRM 3.12.278.42.4 IPU 13U0020 issued 01-02-2013 - Added clarification on letter number and type

(26) IRM 3.12.278.42.4 IPU 13U0098 issued 01-09-2013 - Added FRM49 closing code format to three digits

(27) IRM 3.12.278.42.4 IPU 13U0943 issued 05-17-2013 Changed letter number to 4588C

Effect on Other Documents

Manual Transmittal 3.12.278 dated January 1, 2013 is obsolete. This IRM also incorporates the following IRM Procedural Updates (IPU)-13U0020, 13U0098, 13U0341, 13U1116, 13U1245, 13U0943, 13U0745, 13U1262,

Audience

This IRM is intended for use by the Ogden Campus Exempt Organization Entity and Unpostable personnel.

Effective Date

(01-01-2014)

Maria Hooke,
Director, Business
Systems Planning
SE:T:BSP

3.12.278.1  (01-01-2014)
Overview

  1. This IRM section provides instructions for the correction of Exempt Organization (EO) unpostables. These cases may be resolved in either the Entity function or the Unpostable function.

  2. These procedures were formerly contained in both IRM 3.12.179, IMF/BMF/IRAF/CAWR Unpostable Resolution and IRM 3.13.222, Entity Control Unpostables for IMF and BMF.

  3. This IRM contains instructions for the Unpostable functions as they pertain to Exempt Organizations. Some unpostable codes contain both EO and non-EO conditions. This IRM only covers EO and EO-related unpostable conditions and resolutions.

  4. Local management may decide to allow either function to correct these unpostable cases.

  5. Whenever an unpostable case is transferred between functions, it is imperative all research be notated and attached. This allows the receiving function to determine what actions to take.

  6. This IRM includes information and instructions to resolve EO unpostable cases and can not cover all situations, so judgment may be needed to work the case. Contact your Manager or Lead tax examiner to determine if your decision is valid. You should request an IRM change to add instructions if you encounter repeated problems or issues which are not currently in the IRM.

  7. The following IRMs are used in conjunction with this section:

    • IRM 3.12.32, General Unpostable Framework (GUF);

    • IRM 2.3, IDRS Terminal Responses;

    • IRM 2.4, IDRS Terminal Input;

    • IRM 3.13.12, Exempt Organization Account Numbers;

    • IRM 3.13.2, BMF Account Numbers;

    • IRM 3.13.222, BMF Entity Unpostable Correction Procedures

    • IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution

    • IRM 3.0.273, Administrative Guide;

    • IRM 3.11.12, Exempt Organization Returns

    • IRM 3.12.12, Exempt Organization Returns

    • IRM 3.17.79, Accounting Refund Transactions

    • IRM 21.4.4, Refund Inquiries

3.12.278.1.1  (01-01-2014)
CADE 2

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

    Note:

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

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

  3. With CADE 2 there will be changes to campus cycles which will begin with cycle 201201. The new BMF, EO and EPMF campus cycles are:

    1. Campus Cycle: Thursday – Wednesday

    2. Master File Processing: Friday – Thursday

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

    4. Unpostables: New available Tuesday; Closing Tuesday

  4. BMF, EO and EPMF transaction posting timeframes are outlined as follows:

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

    • Transactions will be viewable as posted transactions using IDRS command codes on Monday following the weekly Master File processing run on Thursday.

    Note:

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

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

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

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

3.12.278.1.2  (01-01-2014)
Glossary of Terms

  1. Account - One taxpayer identified by a Social Security Number (SSN) or Employer Identification Number (EIN). Each account is a record of the type of returns filed and the related tax periods.

  2. Accounts Maintenance Transcripts - A transcript generated when an unresolved credit or condition is identified on the Master File.

  3. Amended Return - A second return filed which changes the information submitted on the original return.

  4. `Asset Code - The code used to identify end of year total assets.

  5. Automated Collection System (ACS) - An automatic calling system for tax periods within an account which is in taxpayer delinquent investigation (TDI) or taxpayer delinquent account (TDA) status.

  6. Automatic Data Processing (ADP) - The handling and processing of data from electronic machines with a minimum of human intervention.

  7. Batch - A group of work of like documents within a program code.

  8. Block - Returns or documents grouped together for filing purposes; the ninth, and digits of the DLN indicate the blocking series where the return is filed. The eleventh digit of the DLN is the blocking series for examination purposes. It identifies whether the return was an original return, copy of the return, BRTVU/RTVUE print or no return and whether it was a survey or examined case file.

  9. Blocking Series - The blocking series is a three digit numeric field associated to the document or returns for posting to Master File.

  10. Business Master File (BMF) - A file containing information about organizations filing BUSINESS returns and related documents.

  11. Business Operating Divisions (BOD) - Effective 01/01/2000, all IMF and BMF taxpayers will be systemically assigned to a BOD code based on the characteristics of the tax return. IMF taxpayers will either be assigned to the SE (Small Business/Self-employed) BOD or to the WI (Wage and Investment) BOD. BMF taxpayers will be assigned to the LB & I (Large Business & International) BOD, to the TE (Tax Exempt) BOD or to the SE BOD.

  12. Calendar Year - The twelve month period from January 1 through December 31.

  13. Centralized Authorization File (CAF) - A file which contains information regarding the type of authorization taxpayers have given representatives for the various modules within their accounts.

  14. Check Digit - Consisting of two alphabetic characters, the check digit is determined by the application of a mathematical formula to the SSN or EIN.

  15. Command Code (CC) - A five character code used to input data and requests on IDRS.

  16. Computer Paragraph (CP) - Computer generated notices used to request information from or give information to an organization regarding certain aspects of their tax return. Also, certain notices are generated to inform the campus of posting to the Master File which require additional action.

  17. Consolidate - The moving of data when one organization has erroneously been given more than one TIN.

  18. Credit Balance - A term noting a credit outstanding on a tax module. It is identified by a minus sign (−) after the amount.

  19. Cross Reference (XREF) - An action which identifies related TINs and names (DBA).

  20. Cycle - One week's processing at the campuses, the Martinsburg Computing Center (MCC), and Tennessee Computing Center (TCC). The cycle is expressed as a six (6) digit code: the first four digits represent the processing year and the last two digits represent the processing week within the year.

  21. Document Code (DOC CODE) - A two digit code which identifies the specific type of return or document which was filed or processed; it is the fourth and fifth digits of the DLN.

  22. Document Locator Number (DLN) - A control number assigned to every return, document or transaction input through the ADP system. The fourteenth (last) digit is the year of processing and is assigned by the campus computer program at the time of original input. The DLN is used to control, identify and locate documents and transactions processed in the ADP system.

  23. Dummy Return - An input return not prepared by the organization or an input document treated as a return.

  24. Employee Number - A ten digit number assigned to each employee authorized to access IDRS.

  25. Employer Identification Number (EIN) - An assigned nine digit number used to identify a business tax account.

  26. Employment Code (EC) - A one letter code used to identify certain employers regarding Social Security taxes and Federal Unemployment tax.

  27. Entity - The portion of the Master File record which identifies the organization. It contains the name, address, social security or employer identification number, employment code if applicable, name control, location codes, filing requirement codes, fiscal period and date of establishment.

  28. Excess Collections - An account of unapplied credits transferred from an unidentified or Master File account.

  29. Federal Tax Deposit System (FTD) - Payments received by the Internal Revenue Service from a Federal Reserve Bank, indicating deposits made by an organization.

    Note:

    As of January 2011, FTDs are no longer accepted at Federal Reserve Banks or the Internal Revenue Service.

  30. Fiduciary - A person or institution entrusted to act on behalf of a taxpayer.

  31. File Source - A one digit code which follows the taxpayer identification number (TIN). The values are:

    Blank Valid SSN or EIN
    0 Invalid SSN on IMF
    V Valid SSN on BMF
    W Invalid SSN on BMF
    D Temporary TIN
    P Valid IRA SSN
    valid EPMF EIN
    X Invalid IRA SSN
    invalid EPMF EIN

  32. Filing Requirement Code (FRC) - This code identifies the type of return an organization must file.

  33. Fiscal Year Month (FYM) - Any month an organization elects to be the ending month of its accounting year.

  34. Group Exemption Number (GEN) - A four digit number issued to a parent organization and its subordinate chapters under a blanket "GROUP RULING."

  35. Group Exemption Roster (GER)/CC EOGEN - An alphabetic and numeric listing of organizations which were issued Group Exemption Numbers. Published semiannually as Document 6023, it was replaced by CC EOGEN, which allows on-line research using the GEN number of the group.

  36. Group Return - Form 990 filed by a parent organization for all of its subordinates which have elected to be covered by the group return. This return with its own EIN is filed in addition to the parent organizations own return.

  37. Income Code - A code used to identify yearly receipts for EO/BMF returns.

  38. Integrated Data Retrieval System (IDRS) - A computer system with the capability to instantaneously retrieve or update stored information which will work in harmony with our Master File or organization accounts. This system is aimed at quick resolution of problems and inquiries concerning current and prior taxpayer accounts.

  39. Julian Date - The numeric day of the year the return or document was numbered for processing; for example, January 15 would be shown as 015. The sixth, seventh and eighth digits of the DLN represent the Julian Date.

    Note:

    If the DLN is computer generated, the Julian Date is inflated by 400, so January 15 is shown as 415.

  40. Martinsburg Computing Center (MCC) - The Martinsburg Computing Center, located in Martinsburg, WV, is where both business and individual transactions are posted to the various Master Files.

  41. Master File (MF) - A record containing all information with respect to the organizations filing of returns and related documents. The Business Master File (BMF) contains records on each organization, divided into two sections, the entity section and the returns section.

  42. Master File Tax Account Code (MFT) - A two digit number which identifies the type of tax form.

  43. Merger - When two or more corporations combine and one is the successor corporation, the other corporation files final returns on their number. DO NOT confuse this with Consolidation (TC 011).

  44. Microfilm - A media to provide photographic records of tax data on a reduced scale.

  45. Name Control (NC) - The first four letters of an entity's last name (in the case of an individual) or the first four letters of an entity's business name (in the case of corporations, etc.). The name control is used to check the Master File and ensure the TIN corresponds with the proper organization.

  46. Name Search Facility (NSF) - This facility provides the capability to search a national data base for an unknown TIN (EIN or SSN) using name and address information. The NSF provides search capability for primary, secondary and Doing-Business-As (DBA) filers. The command codes used to search the NSF are CC NAMES (SSN) and CCs NAMEE (EIN)/NAMEB.

  47. National Account Profile (NAP) - A national TIN file of entities on the IMF, BMF, EPMF and IRAF. It is used to validate the TIN or TIN/name control for IDRS input command codes and for researching with CC INOLE.

  48. Parent - The governing body of a controlled group of corporations or an exempt organization with a group ruling.

  49. Pending Transaction - A transaction input to IDRS but not yet effective on the Master File account.

  50. Pilot Voucher - An Exempt Organization/BMF Entity voucher prepared for processing group exemptions. This is a file copy only.

  51. Pilot Voucher File (PVF) - This file of all pilot vouchers is kept in GEN order. The pilot vouchers are used in establishing new subordinates of a group ruling.

  52. Power Of Attorney (POA) - The authorization of a third party by a taxpayer to represent the taxpayer in certain tax matters. See CENTRALIZED AUTHORIZATION FILE (CAF).

  53. Primary Location Code (PLC) - The PLC is the Area Office code based on the address where the taxpayer receives mail. The BMF should generate the PLC, or we can create or change it by CC BNCHG, Document Code 50 or 63. The PLC is issued to identify the service center controlling the account.

  54. Prior Year - A tax period which precedes the current processing year.

  55. Re-Input - The reentry into the processing system of a return or document which has not posted to the Master File.

  56. Refile - A refile is sending the return or document back to Files to be filed in its original position in the block.

  57. Reject - A return or document which was not accepted by the campus computer because of incorrect or incomplete information.

  58. Reprocessable - The reentry into the processing system of a return or document which previously posted to the Master File.

  59. Resequence - A resequence occurs when a transaction cannot be posted or processed until the following week (cycle) at MCC.

  60. Return - A legal form or written evidence used by an organization to record tax information.

  61. Revocation - A revocation is an organization initiated correspondence used to revoke the election to be exempt.

  62. Subordinate - A subordinate is a local affiliate of a Parent organization.

  63. Subsection Code - This code designates the type of exemption an organization has received.

  64. Supplemental Group Ruling Information (SGRI) - An SGRI is a letter submitted to the IRS each year by the Parent organization of a group ruling detailing any changes to its subordinates.

  65. Tax Module - A tax module is part of an organizations account which reflects tax data for each type of tax and tax period.

  66. Tax Period - This is the period of time for which a return is filed. The Service uses a six digit code to indicate the end of the tax period for a given return. The first four digits represent the year and the last two digits represent the month.

  67. Taxpayer Delinquent Account (TDA) - A TDA is a tax module in collection status in which a return was filed but not fully paid.

  68. Taxpayer Delinquency Investigation (TDI) - A TDI is a tax account in collection status which has a filing requirement for which a return has not been received.

  69. Taxpayer Identification Number (TIN) - The TIN is a generic term representing either an EIN or SSN.

  70. Transaction Code (TC) - This three digit code is used to identify transactions being processed, to maintain a history of actions posted to taxpayer accounts on the Master File, and to identify actions being taken on an organizations account.

  71. Transcript - A transcript is a copy of entity and tax data from the Master File concerning an organizations account.

  72. Unpostable (UP) - An unpostable is an input return or transaction which attempted to post to the Master File but could not because of inconsistencies with prior posted transactions, filing requirements or the input data.

  73. Unprocessable - An unprocessable is a document which is incomplete, illegible or otherwise unsatisfactory for input.

3.12.278.1.3  (01-01-2014)
Section 3705(a), IRS Employee Contacts

  1. Background

    1. The Restructuring and Reform Act of 1998, Section 3705 provides identification requirements for all IRS employees working tax–related matters.

    2. IRS employees are required to give their name and unique identification number during taxpayer telephone, face-to-face and manually generated correspondence. In addition a telephone number the taxpayer may contact is required on all taxpayer correspondence.

    3. This will provide taxpayers with enough information to identify an IRS employee who previously assisted with tax-related matters.

  2. All IRS employees, in the field, national, and regional office, who communicate by telephone, correspondence, or face-to-face with taxpayers or their personal representatives on tax-related matters are required to provide (at a minimum) the following information:

    • Telephone Contact - title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID card) number

    • Face-to-Face - title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID card) number provided at the appropriate time during the conversation

    • Correspondence - title (e.g., Mr., Mrs., Ms., Miss); last name; IDRS, letter system or badge identification (ID card) number; and telephone number where the taxpayer's question can be answered

      Note:

      The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the ID card (badge) number must be used.

  3. Toll-free employees may also provide their location for identification purposes. E-mail and faxes to taxpayers on tax-related matters, are considered manually-generated correspondence and must include the required information.

  4. Manually generated correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

  5. When a taxpayer insists on speaking with a specific employee who previously handled their inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

  6. Correspondence letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  7. It is not necessary to repeat the ID card (badge) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in person) their ID card (badge) number on the first contact.

  8. Before disclosing any tax information in all types of taxpayer contact, you must be sure you are speaking with an authorized representative of the organization.

    Note:

    Please see the discussion of tax exempt organizations at IRM 11.3.2.4.6. Also, before leaving any messages on an answering machine, please review IRM 11.3.2.6.1. Fax procedures contained in IRM 11.3.1.10 must be reviewed prior to faxing confidential information.

3.12.278.1.4  (01-01-2014)
National Service Level Agreements (SLAs)

  1. National Service Level Agreements (SLAs) were established between Operating Divisions. This section contains specifics regarding SLAs which pertain to activities performed by use of this IRM.

3.12.278.1.4.1  (01-01-2014)
Taxpayer Advocate Service Level Agreement

  1. National Service Level Agreements (SLAs) were established between the Taxpayer Advocate Service (TAS) and each Operation Division. The SLAs contain basic requirements for handling TAS-referred cases, and include specific action to take on a TAS referral and specific time frames for completing those actions.

  2. The SLAs can be found at http://tas.web.irs.gov/ under Policy/Procedures/Guidance..

  3. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems which have not been resolved through normal channels, or who believe an IRS system or procedure is not working as it should. TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA)). TAS is responsible for assisting taxpayers who have unresolved problems within the IRS See IRM 13.1.7 Taxpayer Advocate Service (TAS) Case Criteria if additional information is required.

  4. While the Internal Revenue Service (IRS) is continually working to serve customers in a quality manner, some taxpayers still have difficulty getting solutions to their problems or getting timely and appropriate responses to their inquiries. Per IRC Section 7803(c), Congress established the office of the NTA and its functions within the IRS to assist these taxpayers. TAS has identified criteria that qualifies taxpayers for TAS assistance. The Case Advocate will conduct an independent review of actions taken or need to be taken to resolve the problems taxpayers are experiencing.

  5. Employees should not view TAS Case Criteria as a means of excluding taxpayers from TAS, but rather as a guide to TAS case acceptance. The criteria under which TAS accepts a case should not govern whether a taxpayer is entitled to relief.

  6. Refer taxpayers to TAS when the contact meets TAS criteria. (see IRM 13.1.7, TAS Case Criteria) and you cannot resolve the taxpayer's issue on the same day. The definition of same day is within 24 hours. Same day cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward it to TAS in accordance with your local procedures. Check the TAS box on AMS, if applicable.

    Note:

    It is important all IRS employees handle potential TAS cases with the taxpayer's best interest in mind. Refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) guidelines for more information.

    Provide the taxpayer with the NTA toll-free case intake line, 1-877-777-4778 or TTY/TDD 1-800-829-4059. The taxpayer should be advised TAS is available if the taxpayer is not satisfied with the service received.

  7. An IRS employee should make a referral to a TAS office if the employee receives a taxpayer contact, and cannot initiate action to resolve the inquiry or provide the relief requested. A taxpayer does not have to specifically request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer if it is needed to support the requested relief or required by the IRM.

  8. The following types of cases should NOT be referred to TAS:

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

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

  9. Any taxpayer contact that meets any of the criteria listed below should be forwarded to the local Taxpayer Advocate for special handling using a Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order).

    • The taxpayer is experiencing economic harm or is about to suffer economic harm.

    • The taxpayer is facing an immediate threat of adverse action.

    • The taxpayer will incur significant costs if relief is not granted (including fees for professional representation).

    • The taxpayer will suffer irreparable injury or long - term adverse impact if relief is not granted.

    • The taxpayer has experienced a delay of more than 30 days to resolve a tax account problem.

    • The taxpayer has not received a response or resolution to their problem or inquiry by the date promised.

    • A system or procedure has either failed to operate as intended, or failed to resolve the taxpayer's problem or dispute within the IRS.

    • The manner in which the tax laws are being administered raise considerations of equity, or have impaired or will impair the taxpayer's rights.

    • The NTA determines compelling public policy warrants assistance to an individual or group of taxpayers.

      Note:

      The case criteria listed above is not meant to be all inclusive; each taxpayer situation should be evaluated based on the unique facts and circumstances of each case.

  10. The Operation Assistance Request (OAR) process is used to refer TAS cases when TAS either lacks the statutory or delegated authority to resolve a taxpayer's problem. TAS utilizes Form 12412, Operations Assistance Request, to initiate the OAR process.

  11. The Operating Divisions and Functions will acknowledge receipt and provide the name and phone number of the IRS employee assigned to work the case within one (1) workday of receipt of the OAR involving an economic hardship case. The Operating Divisions and Functions will provide a relief/no relief decision with three (3) workdays of acknowledging receipt of an OAR. The decision will be in writing, via facsimile, or hand delivery to the TAS case advocate.

  12. the Operating Divisions and Functions will acknowledge receipt and provide the name and phone number of the IRS employee assigned to work the case within three (3) workdays of receipt of the OAR involving a systemic or procedural hardship. The TAS employee will then negotiate a reasonable time frame with the IRS employee to resolve the case.

  13. In cases requiring an OAR, TAS will complete Form 12412 and forward the case to the Operating Division Liaison via Form 3210. The Operating Division Liaison will review the case, assign it to the appropriate area, and monitor the case through its conclusion.

  14. Every effort must be made to expedite completion of OAR cases. Time frames for the assigned area to complete the case will be indicated on Form 12412.

    1. If resolution of the taxpayer's case cannot be completed by the requested time frame or by a negotiated extension date, the employee will immediately notify his or her manager.

    2. The manager/employee will work with the Taxpayer Advocate contact listed on Form 12412 to arrive at agreed upon time frames for follow-up based on the facts and circumstances of the particular case.

    3. The manager/employee assigned the case will discuss his or her findings and recommendations on the final disposition of the case with the appropriate TAS contact. The TAS contact is responsible for communicating the final decision on the case to the taxpayer; however, this does not prohibit the manager/employee from also communicating the decision to the taxpayer.

    4. If the TAS contact and the manager/employee assigned the case cannot agree upon the resolution to the taxpayer's problem, the TAS employee will elevate this disagreement to his or her manager who will discuss it with the appropriate Operating Division manager. The manager/employee assigned the case will also elevate any disagreement to his or her manager.

  15. Refer to IRM 13.1.7, Taxpayer Advocate Case Processing, for Taxpayer Advocate case criteria. If during a taxpayer contact it appears a hardship situation may exist, complete Form 911, Application for Taxpayer Assistance Order, and refer the taxpayer to the Taxpayer Advocate Service (TAS). See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

3.12.278.2  (01-01-2014)
Manual Refunds

  1. Refer to IRM 21.4.4, Refund Inquiries, IRM 3.17.79, Accounting Refund Transactions, and IRM 3.13.222.15, BMF Entity Unpostable Correction Procedures, Unpostables Requiring Manual refunds to identify the need for a manual refund. Also, refer to the Servicewide Electronic Research Program (SERP) for the most current and accurate manual refund alerts and IRM procedural updates (IPU).

  2. Any unpostable return can potentially require a manual refund. Unpostable employees are required to identify when a manual refund is necessary and take actions to initiate the manual refund.

  3. Common criteria for issuing a manual refund include:

    • A hardship situation requires an expeditious refund (TAS)

    • The 45 day interest free period is in jeopardy and the refund is ≡ ≡ ≡ ≡ or more

      Note:

      A refund is in jeopardy if the current date is 20 days beyond the later of the Return Due Date, Return Received date or Correspondence Received date (CRD) also referred to as the Return Processable Date (RPD).

    • The refund is one million dollars or more

    Note:

    Manual refunds are no longer input by EO Unpostables. Manual refunds should be sent to Rejects for input.

  4. If a manual refund is required:

    • Resolve the unpostable condition

    • Release the unpostable using URC 8

    • Route the return with a request for the manual refund to Rejects

3.12.278.3  (01-01-2014)
Research and Resolution Information, Methods, and Tools

  1. IDRS Command Codes which create posting transactions have their TIN and name control combinations validated prior to the "Request Completed" response. These transactions are passed against the Taxpayer Identification File (TIF) and the National Account Profile (NAP) to ensure the transaction will post properly at the Master File.

  2. Research is required on all unpostable cases unless:

    • The unpostable is an obvious transcription error; or

    • Resolution procedures for the particular Unpostable Code (UPC) specifically state otherwise.

  3. Proper research is essential to ensure accurate resolution and closure of unpostable cases. There are four types of research you can perform:

    • Corporate Files On-Line (CFOL)

    • Integrated Data Retrieval System (IDRS)

    • EP/EO Determination System (EDS)

    • SOI EO Imaging Network (SEIN)

  4. If the return is not provided with the F4251, online SEIN should be used to resolve unpostables and initiate correspondence if necessary to resolve unpostables timely. If SEIN is not available order Document with the D2, D3 process.

  5. Complete analysis of each unpostable return is necessary to ensure all unpostable conditions are corrected to avoid unnecessary repeating of unpostable returns.

  6. If a return from SEIN is used, leave a history on ENMOD indicating a return from SEIN was used including the MFT and Tax Period of the SEIN return.

  7. In 2006, congress mandated all tax-exempt organizations, except churches and church related groups, file annual return starting in the 2007 tax year. Congress also mandated any organization that failed to file for three consecutive years would automatically lose their tax-exempt status. Beginning May 17, 2010, exempt organizations who fail to file for three consecutive years will lose their tax exempt status. The organization's status will automatically be changed to Status 97 and Form 1120 or 1041 filing requirements will be added to their account beginning in 2011. Those organizations who file Form 990–N were given an extension of time to file until October 15, 2010. In order to ensure organization's whose return is in an unpostable condition are not erroneously revoked, a transaction 599 cc 18 should be input on every unpostable 990 or 990-PF return if the return was received by the due date or extended return due date. and if the unpostable condition is not corrected within 12 weeks of the revocation process. Use the table below to determine when to input the TC 599 cc 18.

    Due Date Month of the return: Input TC 599/18 if you are working the unpostable 12 weeks or less of:
    May 17, 2010 November 1 , 2010
    June 15, 2010 December 1, 2010
    July 15, 2010 January 1, 2011
    August 16, 2010 February 1, 2011
    September 15, 2010 March 1, 2011
    October 15, 2010 April 1, 2011
    November 15, 2010 May 1, 2011
    December 15, 2010 June 1, 2011
    January 17, 2011 July 1, 2011
    February 15, 2011 August 1, 2011
    March 15, 2011 September 1, 2011
    April 15, 2011 October 1, 2011

3.12.278.3.1  (01-01-2014)
Corporate Files On-Line (CFOL)

  1. CFOL provides nationwide access, meaning information processed through any area office or campus and posted to any Master File is available.

  2. CFOL command codes provide on-line access to Master File information, residing at MCC, via IDRS.

  3. CFOL command codes are available even when IDRS is not; however, you still need a password to sign on and access the command codes.

  4. CFOL command codes do not show pending transactions, case controls, history items or unpostables. IDRS research must be performed in addition to CFOL research.

  5. Some of the more common CFOL command codes you will use include:

    1. BMFOL - The B usiness M aster F ile O n–L ine provides research of nationwide entity and tax data information posted to the BMF. It displays a summary or index (definer code I) of tax modules, showing the tax years available. The Business Master File is updated every Thursday morning at MCC. Therefore, any transaction which is updating the BMF can be seen on BMFOL on Thursday prior to the weekend campus update.

    2. BRTVU - BRTVU provides a display of the transcribed line items on all business tax returns and their accompanying schedules or forms as the returns are processed at the campuses. Use BRTVU in lieu of ordering returns whenever possible.

    3. EOGEN - EOGENP can find a Parent organization using the GEN of the group. EOGENS will also provide a list of subordinate organizations for the parent organization. This list is limited to 30 pages, with 20 subordinates per page. You can narrow the search for subordinates by entering the optional state abbreviation ("." for foreign addresses). This is especially helpful when researching large organizations such as Little League, Lions Club International, etc. EOGEN will not research by EIN. If you know the EIN but not the GEN, research CC BMFOL definer O to get the GEN, then research CC EOGEN. EOGEN does not provide full entity information for subordinates. It provides a starting point for further research.

    4. INOLE - INOLE provides access to the NAP, which contains selected entity information for all Master File accounts. The NAP contains vital information which can identify the taxpayer, but does not contain all of the entity data for the taxpayer. Additional research must be done using CC ENMOD or CC BMFOL. CC INOLE is updated each Wednesday at the computing centers.

3.12.278.3.2  (01-01-2014)
IDRS

  1. Integrated Data Retrieval System (IDRS): IDRS is a computer system with the capability to retrieve and update stored taxpayer account information on the Master Files. You perform research on IDRS through the use of various command codes (CC) input to an IDRS terminal.

3.12.278.3.2.1  (01-01-2014)
Common IDRS Research Command Codes

  1. NAMEE/NAMEB is used to search for an EIN.

  2. ENMOD is used to display the entity information of a specific TIN.

  3. SUMRY is used to display a list of the tax modules (TXMODs) currently available via IDRS.

  4. TXMOD is used to display specific tax module information for a specific TIN.

  5. UPTIN is used to display all open cases and cases which were closed within the last 90 days for a specific TIN.

3.12.278.3.2.2  (01-01-2014)
Universal IDRS Access

  1. Universal IDRS Access is part of the Tax Systems Modernization (TSM) effort to provide IDRS users the ability to research data on another campus' Taxpayer Information File (TIF) database. It allows the user to access the most current account data available, including pending transactions, unpostables, facts of filings, etc.

  2. Universal IDRS Access is actually a combination of two separate initiatives: "Remote Access" and "National Account Index" .

  3. "Remote Access" allows the IDRS user to input certain research command codes in other campus databases by rerouting the request. This is done by the input of the command code followed by the routing symbol ("@" ), the two digit campus location code, and transmitting.

  4. The "National Account Index (NAI)" is a national index which tracks the campus location of all IDRS TIF accounts where the account is up. If there is "no data available" on the local database, the NAI will automatically search for other locations where the account is up. If another location is found, a message will be displayed at the bottom of the screen.

  5. For more information, see IRM 2.3, IDRS Terminal Responses.

3.12.278.3.2.3  (01-01-2014)
Common IDRS Input Command Codes

  1. BNCHG is used to input entity information changes to the BMF.

  2. ENREQ is used to generate the screen format for BNCHG.

  3. LETER is used to input information and generate a C letter.

  4. EOCHG is used to input changes to the EO sub-module of BMF accounts.

  5. EOREQ is used to generate the screen format for EOCHG;.

  6. FRM49 is used to input TC 59X transactions.

  7. REQ49 is used to generate the screen format for FRM49.

  8. UPDIS is used to display a specific unpostable case and generates command code UPRES.

  9. UPRES is used to input closing action(s) on an unpostable case.

3.12.278.3.2.4  (01-01-2014)
IDRS Pending Codes

  1. Transactions which are pending are identified on IDRS with a unique code. The most common of these pending codes are:

    1. Unnn - the transaction has unposted (nnn represents the number of the unpostable code).

    2. CU - the transaction is a corrected unpostable.

    3. DU - the transaction unposted and was deleted (will not post to Master File).

    4. DN - the transaction was deleted during IDRS batch processing.

    5. RJ - the transaction is in Reject status.

    6. NU - the transaction unposted and was nullified (sent to the Reject function for resolution).

    7. DC - the transaction was deleted by Rejects.

      Note:

      See LEM 3.27.68 or Document 6209, IRS Processing Codes & Information, for more information on these and additional pending transaction codes.

3.12.278.3.3  (01-01-2014)
TE/GE (EP/EO) Determination System (EDS)

  1. EDS is an automation of certain segments of the EP/EO determination process. EDS is a menu-driven system. The Inventory Control Subsystem and the Letter Generation Subsystem are the two segments the EO Unpostable Unit will use.

  2. EDS research is required to determine correct status for most exempt organization unpostable accounts. EDS information should be used to update an exempt organization's filing status. EDS research should be used in conjunction with all other research tools to ensure accounts reflect current and accurate exempt organization data.

  3. The Inventory Control System replaces the Exempt Organization Application Control System (EACS) as the system which tracks cases from opening to closing; however, EACS, which is renamed Master File Pipeline System continues to function in the campuses as the link between EDS and Master File.

  4. The Letter Generation Subsystem provides a means to automatically generate requests for additional information and the viewing and generation of closing letters.

  5. The following is a list of the Open Status Codes:

    Open Status Codes Definition
    31 In Review
    32 Returned on Review Memo
    33 Return from Review
    34 Area Council Approval
    35 30 Day Letter Sent
    37 Group Suspense
    38 Review Suspense
    39 Technical Screening Suspense
    40 Proposed Adverse Determination
    41 Proposed Technical Advice
    50 Area Office Receipt
    51 Unassigned Inventory (Non-merit)
    52 Assigned to Specialist (Non-merit)
    53 Manager Returned to Specialist
    54 Transferred to Appeals
    55 Waiting for Closing Approval
    56 Technical Advice Transfer (Suspense)
    57 TEDS Awaiting Closure on EDS
    58 Workload Transfer
    59 EDS Manual Process (Case is no longer being processed on TEDS)
    60 Open in Technical Screening
    61 Unassigned Inventory (Merit)
    62 Assigned in Technical Screening (now reflects the associated Specialist Number on the case history page)
    63 New Case Establishment (TEDS) (Cases established on EDS have an initial status of 50.)
    64 Manager returned to specialist (Technical Screening)
    71 Unassigned Inventory (Accelerated Processing)
    72 Case Assignment (Accelerated Processing)
    73 Manager Returned to Specialist (Accelerated Processing)
    74 Awaiting Managerial Review
    75 Group Inventory
    91 Unassigned Inventory (Washington)

  6. The following is a list of Closed Status Codes:

    Closed Status Codes Definition
    01 Approved
    02 Disapproved
    03 Returned Incomplete
    04 Withdrawn by T/P
    06 Merit Closure No Contact
    08 Refusal to Rule
    09 Merit Closure with Contact
    11 Failure to Establish
    12 Other
    30 Correction Disposal

  7. The following is a list of Type of Request Codes:

    Type of Request Codes Definition
    I Initial
    A Amendment
    T Termination of Exempt Status
    P Termination of Private Foundation Status
    F Private Foundation Follow-up
    R Returned, Post Review

    Note:

    For additional EDS codes, see Document 6379, Exempt Organization Management Systems Codes.

3.12.278.3.4  (01-01-2014)
Subsection and Classification Code

  1. The table below includes a complete listing of EO Subsection and Classification Codes:

    SS Code Class. Code Type of EO 1986 IR Code 1939 IR Code
    01 1 Government instrumentality 501(c)(1) 101(15)
    02 1 Title holding company 501(c)(2) 101(14)
    03 1 Charitable corporation 501(c)(3) 101(6)
    03 2 Educational organization 501(c)(3) 101(6)
    03 3 Literary organization 501(c)(3) 101(6)
    03 4 Org to prevent cruelty to animals 501(c)(3) 101(6)
    03 5 Org to prevent cruelty to children 501(c)(3) 101(6)
    03 6 Org for public safety testing 501(c)(3) 101(6)
    03 7 Religious organization 501(c)(3) 101(6)
    03 8 Scientific organization 501(c)(3) 101(6)
    04 1 Civic league 501(c)(4) 101(8)
    04 2 Local association of employees 501(c)(4) 101(8)
    04 3 Social welfare organization 501(c)(4) 101(8)
    05 1 Agricultural organization 501(c)(5) 101(1)
    05 2 Horticultural organization 501(c)(5) 101(1)
    05 3 Labor organization 501(c)(5) 101(1)
    06 1 Board of trade 501(c)(6) 101(7)
    06 2 Business league 501(c)(6) 101(7)
    06 3 Chamber of commerce 501(c)(6) 101(7)
    06 4 Real estate board 501(c)(6) 101(7)
    07 1 Pleasure, recreations or social clubs 501(c)(7) 101(9)
    08 1 Fraternal beneficiary society or association 501(c)(8) 101(3)
    09 1 Voluntary employees beneficiary assoc-Non- government 501(c)(9) 101(16) & (19)
    09 2 Voluntary employees beneficiary assoc- government 501(c)(9) 101(16) & (19)
    10 1 Domestic fraternal societies and associations 501(c)(10) N/A
    11 1 Teachers retirement fund association 501(c)(11) 101(17)
    12 1 Benevolent life insurance association 501(c)(12) 101(100)
    12 2 Mutual ditch or irrigation company 501(c)(12) 101(100)
    12 3 Mutual or cooperative telephone company 501(c)(12) 101(100)
    12 4 Organization like those on three preceding lines 501(c)(12) 101(100)
    13 1 Burial association 501(c)(13) 101(5)
    13 2 Cemetery company 501)c)(13) 101(5)
    14 1 Credit union 501(c)(14) 101(4)
    14 2 Other mutual corporation or association 501(c)(14) 101(4)
    15 1 Mutual insur co or assoc other than life 501(c)(15) 101(11)
    16 1 Corporation financing crop operation 501(c)(16) 101(13)
    17 1 Supplemental unemployment comp. trust or plan 501(c)(17) NA
    18 1 Empl funded pension trust created before 6-25-59 501(c)(18) NA
    19 1 Post or organization of members of the armed forces 501(c)(19) NA
    20 1 Legal service 501(c)(20) NA
    21 1 Black lung benefit trust 501(c)(21) NA
    22 1 Multiemployer pension plan 501(c)(22) NA
    23 1 Veterans association founded prior to 1880 501(c)(23) NA
    24 1 Trust described in Section 4049 or ERISA 501(c)(24) NA
    25 1 Title-holding company for pensions etc 501(c)(25) NA
    26 1 State sponsored high risk health ins. org 501(c)(26) NA
    27 1 State sponsored workers compensation reinsurance 501(c)(27) NA
    28 1 National Railroad Retirement Investment Trust 501(c)(28) NA
    29 1 State Health Care Insurance 501(c)(29) NA
    40 1 Apostolic and religious organization 501(d) 101(18)
    50 1 Cooperative hospital service organization 501(e) NA
    60 1 Coop service orgs of operating education orgs 501(f) NA
    70 1 Child care center 501(k) NA
    71 1 Charitable risk pool 501(n) NA
    80 1 Farmers Cooperative 521 NA
    81 1 Qualified state sponsored tuition program 529 NA
    82 1 Political Organizations 527 NA
    90 1 Nonexempt charitable trust 4947(a)(2) (split interest) 4947(a)(2) NA
    91 1 Nonexempt charitable trust (public charity) 4947(a)(1) NA
    92 1 Nonexempt charitable trust (treated as Pvt. Fdn.) 4947(a)(1) NA
    93 1 Taxable farmers cooperative 1382(a)(2) NA

3.12.278.3.5  (01-01-2014)
EO Status Codes

  1. The following table is a list of EO Status Codes:

    EO Status Description
    Blank EO Section established without a status.
    01 Unconditional Exemption
    02 Conditional Exemption
    06 State University filing Form 990–T
    07 Church Filing a Form 990–T
    10 Pre-Examination of Church
    11 School Certification
    12 A Formal Exemption Not Granted-Filing an EO Return
    Form 990 Under IRC 4947(a)(1)
    Form 990-PF Under IRC 4947(a)(1)
    Form 5227 Split-Interest Trust
    Form 1120-CTaxable Farmers Cooperative
    18 Temporary Revocation of Pvt. Foundation (Trust) (Required to file Forms 990-PF and 1041)
    19 Revocation of Pvt. Fdn. (Required to file Forms 990-PF and 1120
    20 Termination - Inactive (Out of Business, etc.)
    21 Unable to locate - (New Address Needed)
    22 Revocation - (Required to file Form 1120)
    23 507(a) Termination
    24 507(b)(1)(A) Termination
    25 507(b)(1)(B) Termination
    26 Termination Merger
    28 No longer a member of a Group Ruling

    Note:

    Status 28 is not used for campus processing

    29 A Group Ruling was dissolved

    Note:

    Status 29 is not used for campus processing

    30 Churches who voluntarily File Form 990
    31 Small organizations other than Private Foundations
    32 (Obsolete January 1, 2008) Non-responders to CP 140/144
    33 Foreign Pvt. Fdn.- No Exemption - Required 4% Tax on Investment Income
    34 527 Political Organization
    35 Foreign Entities Exempt by Treaty with U.S.
    36 Non 501(c)(3), (9) or (17) Organizations - No ruling or determination
    40 Return Filed - No Record of Exemption
    41 No Reply to Solicitation - No Exemption
    42 Extension filed/posting payments to 1st EO Return - No Exemption
    70 Denied - No Exemption
    71 Incomplete Form 1023/1024 - No Exemption
    72 Refusal to Rule - No Exemption
    97 Revoked - Failure meet their filing requirements for three consecutive years. (Organizations lose exempt status and are required to file Form 1120. All EO return filing requirements will be removed.)
    98 Terrorist Organization - No Exemption
    99 Dump Code - No Exemption

3.12.278.3.5.1  (01-01-2014)
EO Status Code 01

  1. When an organization is granted an exemption, Cincinnati EO Determinations or NO SE:T:EO will input the information on the BMF to create the EO account, or add the exemption data to an already existing account. When Status Codes 01 or 02 are present on the BMF/EO account, they indicate an exemption was granted to the organization. IRC 501(c)(3), 501(c)(9), 501(c)(17), and 501(c)(20) organizations are required to notify the Service they are seeking tax-exempt status; therefore, they must file a Form 1023 or 1024 as applicable with EO Determinations.

    Exception:

    Churches, conventions of churches, integrated auxiliaries of churches, and organization with gross receipts of less than $5,000 are not required to apply for tax-exempt status.

    Note:

    Section 501(c) organizations other than IRC 501(c)(3), IRC 501(c)(9), IRC 501(c)(17), and IRC 501(c)(20) organizations are not required to file an application for exemption, though they may do so. They are considered exempt even though they do not apply for exemption.

    Note:

    Beginning January 2004 a Form 990-T or a payment for a Form 990-T will automatically post to an account in EO Status 01-02 if the name control and EIN on the return or payment match the name control and EIN on Master File. A Form 990-T filing requirement will be added to the module.

  2. If research of EDS on first screen indicates status 01, 06 or 09 update the BMF for the EO section, using the procedures in IRM 3.13.12.5.

    Caution:

    If the status code on EDS is other than 01, 06 or 09 do not update the EO Status Code to 01.

  3. If the entity is an Non-Integrated Auxiliary (NIA), the Form 990 FRC should be 13, with SS 03 and Type of Foundation Code 10. Research CC ENMOD.

    If Then
    The account is on the BMF, Add the EO section with CC EOREQ/CC EOCHG, Doc. Code 80, TC 016, Definer Codes ABC and add the EO data from the pilot voucher (Form 2363A). The following fields must be added from the Form 2363A: subsection, foundation code (if applicable), classification code, affiliation code, type of organization, status code and date, ruling date, deductibility code and year, new GEN, pension plan, employment code, FYM, NTEE, NAICS code and filing requirements.
    The account is not on the BMF, Add the account to the BMF. Use CCs EOREQ/EOCHG with Doc. Code 80, TC 000 and use the pilot voucher or EDS as the source information to update the BMF.
    The ruling date is available, Use the ruling date when returning the EO Status to 01.

3.12.278.3.5.2  (01-01-2014)
EO Status Code 06

  1. Use Status Code 06 to create an EO section on the BMF for an account which is a state operated university or college or a Re-insurance company, required to file Form 990-T for unrelated business income.

    Note:

    To identify a Re-insurance company, check the top of Form 990-T for the words "Re-insurance Company" or similar wording. If unable to determine whether the 990-T is filing for a re-insurance company, put the account in the appropriate status code.

  2. When a Form 990-T is received for this type of entity and research shows it does not have an exemption, use EO Status 06 to add an EO section to the EIN on the BMF. Input a TC 971 AC 319 for the tax period indicated on the return.

  3. Input this status code with a TC 012 or 016 using CC EOREQ/CC EOCHG. If a return is received without an EIN and research does not locate an EIN, assign an EIN.

  4. The following items must be present for EO Status 06:

    • Doc. Code 80

    • TC 012 or 016

    • Definer Codes - AB

    • STS-CD/DT - 06YYYYMM

    • FYM

    • Filing Requirements 990-T - 1

    • REMARKS

3.12.278.3.5.3  (01-01-2014)
EO Status Code 07

  1. When the EO section is not on the BMF, use Status Code 07 to create an EO section for an account which is a church filing Form 990-T.

  2. When a Form 990-T for a church is received and research does not reveal an exemption, use Status Code 07.

  3. Never use this status code under the following conditions:

    1. The GEN is shown in item F on the return. In these cases, use the pilot voucher.

    2. 401(a) trust is checked on the return or the name contains words such as "Pensions," "Retirement," "Welfare," or " Profit Sharing Plans." See IRM 3.13.12.9.11.4 for information on 401(a) and 408 IRA Trusts filing Form 990-T.

    3. The organization name does not clearly indicate a church, or you are in doubt whether the organization is a church. In these cases, use Status Code 40.

  4. Add the EO section to the BMF with CCs EOREQ/EOCHG. The items shown below must be present when processing a TC 016.

    • Doc. Code 80

    • TC 016

    • Definer Codes - AB

    • STS-CD/DT - 07YYYYMM

    • FYM

    • Filing Requirements 990-T - 1

    • REMARKS

    If Then
    The account is not on the BMF, Use CC EOREQ/CC EOCHG with Doc. Code 80 and TC 000.
    The account is on the BMF, Use CC EOREQ/CC EOCHG with Doc. Cod 80, TC 016 and Definer Codes AB.

3.12.278.3.5.4  (01-01-2014)
EO Status Code 10

  1. Use Status Code 10 to create an EO section for a church which was examined by the EO Area Office in Dallas.

  2. The Form 990 which will be received will be prepared by the EO Area Office Examination. It will be a dummy return, input to create a tax module on the BMF to allow the examination closing record to post.

  3. Add the EO section to the BMF through IDRS with CC EOREQ/CC EOCHG.

    If Then
    The account is not on the BMF, Use CC EOREQ/CC EOCHG with Doc. Code 80 and TC 000.
    The account is on the BMF, Use CC EOREQ/CC EOCHG with Doc. Code 80, TC 016 and Definer Codes A and B. The items shown below must be present.
    • Doc. Code 80

    • TC 016

    • Definer Codes - AB

    • STS-CD/DT - 10YYYYMM

    • FYM

    • Filing Requirements 990-06

    • REMARKS

3.12.278.3.5.5  (01-01-2014)
EO Status Code 12

  1. Use Status Code 12 to create an EO section for returns filed under IRC Section 4947(a)(1) or 4947(a)(2) or Taxable Farmer's Cooperatives when the EO section is not on the BMF.

  2. If Forms 990 or 990-PF under IRC 4947(a)(1), 990-C/1120-C or 5227 are received and research does not reveal an exemption, use Status Code 12.

    Note:

    Use Status Code 12 for a Form 990 filer if EDS shows a 1071 Letter was sent to the organization.

  3. Add the EO section to the BMF through IDRS with CC EOREQ/CC EOCHG.

    1. If the account is not on the BMF, use CC EOREQ/CC EOCHG with Doc. Code 80 and TC 000.

    2. The items shown below must be present for processing TC 000.
      Doc. Code 80
      TC 000
      Name Control
      Primary Name
      Street Address
      City, State, ZIP
      Subsection Code
      Classification Code
      STS-CD/DT - 12YYYYMM
      FYM
      Filing Requirements
      REMARKS

    3. For updating EO Status to 12, use the following table:

      Forms Received Type of Filer Subsection Code
      5227 4947(a)(2) 90
      990 4947(a)(1) 91
      990-PF 4947(a)(1) 92
      990-C/1120-C Taxable Farmer's Co-Op 93

  4. If the account on the BMF is without an EO section or with an incorrect EO section due to a Form 5227 or Form 1120 FRC, use CC EOREQ/CC EOCHG with Doc. Code 80, TC 016 and Definer Codes AB. To correct, do the following:

    1. Use the applicable subsection codes as shown above.

    2. For Forms 5227, check line B and G.

      If Then
      Line G indicates the trust has unrelated business income, or box 1 or 4 is checked on line B, use FRC 2. Research BMF to ensure a Form 1041 FRC is present, adding if necessary.
      Line G indicates the trust has no unrelated business income, or box 2 or 3 is checked on line B Use FRC 1. Research BMF and delete any Form 1041 FRC, if present.

    3. For Forms 990 and 990-PF:

      If Then
      The BMF has an EO section for Form 5227, Delete the Form 5227 and 1041 FRC on the same input as adding the Forms 990 or 990-PF FRC. Always enter ST 12 and use the current date.
      A Form 1041-A FRC is also present on the BMF, You must input a TC 591, Closing Code 20, to the tax period of the latest posted MFT 36 tax module.

    4. For Forms 990-C/1120-C, always delete the incompatible 1120 FRC.

    5. For Doc. Code 80, TC 016 input use Definer Codes AB, Subsection Code, Status Code/Date 12YYYYMM, FYM, filing requirements and remarks.

3.12.278.3.5.6  (01-01-2014)
EO Status Codes 18 and 19

  1. Status Codes 18 and 19 are input by Cincinnati when a private foundation exemption is revoked. The organization is required to continue filing the Form 990-PF return.

  2. Status 18 is used when the organization is a trust. Cincinnati will change the Type of Organization to a 6 and the Subsection Code to a 92. The type of foundation code will be deleted by the BMF. The organization will be required to file both a Form 990-PF and a Form 1041.

  3. Status Code 19 is used when the organization is a corporation. The organization will be required to file both a Form 990-PF and a Form 1120.

3.12.278.3.5.7  (01-01-2014)
EO Status Code 20

  1. Status Code 20 ("Terminated/Out of Business" ) is used when the organization with an individual ruling is terminated or out of business. The filing requirement for all EO returns will be updated to zero automatically.

    1. This status can be input by the campus when correspondence from the organization contains statements such as "out of business" , "no longer in operation" , or "terminated" .

      Note:

      Status 20 is only used for organizations with individual rulings. If the organization is a subordinate of a group and the parent indicates it is no longer part of the group, the subordinate is put in Status 36 or 40 depending on the subsection.

    2. Input this status with a Doc. Code 80, TC 016 and Definer Code B. and the current date is input for the status date (YYYYMM).

    3. If the organization has a 501(c)(3) exemption with end of year assets greater than $100,000 (see Line 21 Part l on Form 990, Line 27 Part l on Form 990-EZ, Line 6 Part lll on Form 990-PF), do not input Status 20. Forward the case to Cincinnati. Annotate on the transmittal to establish a T case.

    4. When the organization responds to a delinquency notice with statements such as "out of business" , "no longer in operation" , "terminated," etc., a TC 591 cc 20 will be input. When this transaction posts to the tax module which is a primary return, the EO Entity Status will be updated to 20 with the date the TC 591 posted.

      Exception:

      If the BMF shows the account to be a subordinate of a group ruling; i.e., a GEN is present and the AF is 7 or 9, the update will be to a Status Code 28.

    5. When a final return is filed and Computer Condition Code F is input, the EO Entity Status is automatically updated to 20.

      Exception:

      If the BMF shows the account to be a subordinate of group ruling; i.e., a GEN is present and the AF is 7 or 9, the update will be to a Status Code 28.

3.12.278.3.5.8  (01-01-2014)
EO Status Code 21

  1. Status Code 21 ("Unable to locate " ) is used when we are unable to locate the organization. Status Code 21 is generated by the input of CC FRM49 with a TC 593 cc 082. The posting of the TC 593 cc 082 removes all EO filing requirements.

  2. When working an unpostable return which requires the updating of the EO Status Code from 21 to 01:

    1. Check EDS for a "T" case. If a "T" case is found, update the Status Code to 40. Notify the organization they have terminated and must apply for a formal exemption.

    2. If no "T " case is found, update the EO Status to 01 and post the return. Research CC BMFOLI to determine for what years the organization did not file a return and input a TC 474 to create a tax liability for those years.

  3. Update the filing requirements as follows:

    1. If the return indicates gross receipts greater than $50,000, update the 990 filing requirements to 990-01.

    2. If the return indicates gross receipts less than or equal to $50,000, update the 990 filing requirements to 990-02.

    3. If there is no indication or you are unable to determine the gross receipts, update the 990 filing requirements to 990-02.

3.12.278.3.5.9  (01-01-2014)
EO Status Code 22

  1. Status Code 22 ("Revocation" ) is used when the organization's exemption is revoked. This status will generate a Form 1120 filing requirement. If the Form 1120 FR is missing, add it to the account.

    Note:

    An organization in EO Status 22 cannot become a member of a group ruling without receiving an individual ruling first.

  2. If the organization files a Form 990-PF but there is an Form 1120 FR, change the status to 01 to post the Form 990-PF, return the account to its previous status after the return has posted. If the organization files a Form 990 but there is a Form 1120 FR, check the Docketed Case listing to determine the disposition of the return. Check the Docketed Case List for the assigned attorney and contact the attorney for information on how to dispose of the case.

  3. Follow the lawyer's instructions given and do not correspond with the organization. If not, on the Docketed Case listing, continue working the unpostable using the normal procedures.

3.12.278.3.5.10  (01-01-2014)
EO Status Codes 23 and 24

  1. Status Code 23 ("Termination Under 507(a)" ) is used when the organization is terminated under 507(a). The filing requirements of all EO returns will be updated to a zero, except Form 990-PF which will not change.

  2. Status Code 24 ("Termination Under 507(b)(1)(A)" ) is used when the organization is terminated under 507(b)(1)(A). The filing requirement for all EO returns will be updated to zero, except Form 990-PF which will not change.

3.12.278.3.5.11  (01-01-2014)
EO Status Code 25

  1. Status 25 Background Information

    1. Status 25 represents private foundations which have received an advance ruling letter from Cincinnati indicating they are terminating under 507(b)(1)(B), also known as a 60-month termination. Cincinnati will update the EO Status to 25 and input an Advance Ruling Date using Form 2363A. There will be a TC 016 with Cincinnati's DO code on CC BMFOLE to indicate the EO status was changed and advance ruling date input.

    2. These organizations will continue to file a Form 990-PF for 5 years, but may elect not to pay tax on net investment income. If they elect not to pay tax, a Form 872B (Consent to Extend the Time to Assess Miscellaneous Excise Taxes) must be attached to the Form 990-PF when filed. The interest on the tax should continue to accumulate in this case, but the organization should not receive notices or penalties. At the end of the 5 years, the organization must show they meet public support test.

    3. If they do meet the public support test, Cincinnati will issue a new determination letter, update the EO Status to 01, change the FR to Form 990 and remove the advance ruling date. If the organization did not choose to pay their excise tax, they will not owe the interest which has accumulated. If the organization chose to pay the tax during the 60-month termination, they may apply for a refund.

    4. If the organization does not meet the public support test, Cincinnati will remove the advance ruling date, update the EO Status to 01 and the filing requirement will remain a Form 990-PF. If the organization did not pay any excise tax during the 60-month termination, the organization will owe back taxes plus interest.

    5. In the last year of the 60-month termination, the organization may file a Form 990 if they provide the necessary information to Cincinnati as stated in the Form 990-PF instructions and Cincinnati determines they meet the public support test and issues them a new determination letter. Process as follows:

      If Then
      The organization files a Form 990 for the final year of their termination period:
      1. Research EDS to determine if they were approved as a public charity.

      2. If they were approved, update the BMF with a TC 016 Doc. Code 80 Definer Codes AB. Input URC 0 to release the unpostable and cycle to post after the TC 016.

      3. If they have not been approved, correspond with the organization indicating they are required to supply Cincinnati with the necessary information to determine if they are a public charity before they can file a Form 990. Also indicate if they have supplied the necessary information to Cincinnati to please send a copy along with their response. If they did not supply Cincinnati with the necessary information, they are required to file a Form 990-PF for the last year of their termination period.

      The organization responds with a copy of the information supplied to Cincinnati,
      1. Contact ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in Cincinnati asking for a determination of the organization's public charity status.

      2. If Cincinnati indicates the organization is a public charity, update the BMF with a Form 990 filing requirement and EO Status of 01 with a TC 016 Doc. Code 80 Definer Codes AB. Input URC 0 to release the unpostable and cycle to post after the TC 016.

      3. If Cincinnati indicates the organization is still a private foundation, update the BMF with a Form 990 filing requirement an EO Status of 01 with a TC 016 Doc. Code 80 Definer Codes AB. Input URC 0 to release the unpostable and cycle to post after the TC 016. Monitor for posting. After the return posts, input a TC 016 and update the filing requirements to 990-PF.

      The organization responds with a completed Form 990-PF:
      1. URC 8 to release the unpostable. Ask Rejects to cancel the DLN.

      2. Attach the Form 990 to back of the Form 990-PF and send the Form 990-PF through for processing.

      .
      The organization does not respond:
      1. Update the BMF with a Form 990 filing requirement an EO Status of 01 with a TC 016 Doc. Code 80 Definer Codes AB. Input URC 0 to release the unpostable and cycle to post after the TC 016.

      2. Monitor for posting. After the return posts, input a TC 016 and update the filing requirements to 990-PF.

  2. If a Form 990-PF with the 60 - month termination box checked is received from Code & Edit, research EDS to determine if an Advance Ruling Letter 2245 was issued. There will be no advance ruling date on EDS. Also research IDRS with CC INOLE to determine if the EO Status is 25 and if there is an advance ruling date present. If no advance ruling date is present, it can be found by reprinting the 2245 Letter through the Letter Generation system on the Inventory Control System Menu on EDS.

    1. If an Advance Ruling Letter 2245 was issued to the organization as shown on EDS and the termination period began prior to January 1, 2002, but Master File has not been updated, update the advance ruling date as indicated in the advance ruling letter using CC EOREQ/EOCHG, TC 016 Doc. Code 80. It is not necessary to update the EO Status to 25 because the Termination Code 1 will update the status systemically. Edit Termination Code 1 on the return if Code & Edit has not already done so.

      Caution:

      It is imperative these instructions are followed. Otherwise, there is adverse impact on the taxpayer as well as other processing areas.

    2. If no advance ruling letter was issued to the organization, the EO Status is 25, and there is no advance ruling date on Master File, notify the organization with Letter 4588C they must apply for an advance ruling to qualify for the 507(b)(1)(B) termination per Publication 578. Also notify the organization they will receive a balance due notice. Input a TC 016 Definer Code B to update the EO Status to 01. Circle out the Termination Code 1 on the return.

3.12.278.3.5.12  (01-01-2014)
EO Status Code 26

  1. Status Code 26 ("Termination/Merger " ) is used for the account which is no longer in existence when two exempt organizations are merged (both accounts were exempt either by individual rulings or by a group ruling). All the EO filing requirements will be updated to zero.

    Note:

    When returning an account to Status 01, use the ruling date as the status date, if available.

  2. When updating an account to EO Status Code 26, always input the x-reference EIN if available.

3.12.278.3.5.13  (01-01-2014)
EO Status Code 28

  1. Status Code 28 ("No longer a member of a group ruling" ) is input systemically if a parent account is placed into Status 29. All the EO filing requirements will be updated to zero.

  2. If an account is in Status Code 28 on Masterfile, update the account to Status 36 or 40. Status 40 should be used if the subsection is 501(c)(3), (9) or (17). Status 36 should be used for all subsections other than 501(c)(3), (9) or (17).

  3. An organization in Status 28 must file an application for exemption if their subsection is 03, 09, or 17. If these organizations file a return, update the Status to 40 and post the return. If the organization in Status 28 has a subsection other than 03, 09, or 17, update the Status to 36 to post the return. If the organization has already filed for and received exempt status as indicated on EDS, update the Status to 01, using the ruling date as the status date.

3.12.278.3.5.14  (01-01-2014)
EO Status Code 29

  1. Status Code 29 is used when a group ruling was dissolved. All the EO filing requirements will be updated to zero.

  2. To update a parent to an individual ruling, input TC 016, Doc. Code 80, Definer Code G, From GEN (must not be 0000 or 9999), Affiliation Code of 1 or 3, New GEN 9999, EO Status Code 01 with ruling date as the status date, Form 990 FR (must be 01, 02 or 06), FYM, Classification Code, Subsection Code, Foundation Code of 10 - 18 is SS - 03, and Remarks.

  3. Do not place organization in Status 29 during campus processing. See IRM 3.13.12.12.7 "Dissolving a Group Ruling" for information on dissolving a group ruling.

3.12.278.3.5.15  (01-01-2014)
EO Status Codes 30 - 33

  1. Status Code 30 applies to churches, their integrated auxiliaries, and conventions or associations of churches as described in IRC 501(c)(3) who voluntarily file Form 990 though not required to file returns or apply for exemption.

    1. When the church without an exemption files the Form 990, it will unpost as a UPC 366.

    2. Establish the EO section with EO Status Code 30 using the current month and year as the status date with TC 016 Doc. Code 80 Definer Code B. No filing requirement is necessary. Status Code 30 will bypass the UPC 329 check and allow the Form 990 to post in the future.

      Caution:

      If a church has filed for and received an exemption, do not update the EO Status from 01 to 30

    Note:

    Beginning January 2004 a Form 990-T or a payment for a Form 990-T will automatically post to account in EO Status 30 if the name control and EIN on the return or payment match the name control and EIN on Master File. A Form 990-T filing requirement will not be added to the module.

  2. Status Code 31 applies to small organizations other than churches and private foundations who normally have annual gross receipts less then $5,000 and who voluntarily file Form 990 though not required to file returns or apply for exemption.

    1. When these types of small organizations file their Form 990, it will unpost as a UPC 366.

    2. Establish the EO section with EO Status Code 31 using the current month and year as the status date with TC 016 Doc. Code 80 Definer CodeAB and add the appropriate filing requirement.

    3. If an organization applied under a particular subsection and was denied (Status 70), do not update the Status to 31 under the denied subsection.

    Caution:

    Do not update an account to EO Status 31 unless the following criteria is met: During the first taxable year the organization received gross receipts of $7,500 or less, or during the first two taxable years, the organization's aggregate gross receipts were $12,000 or less, or during the first three taxable years or if the organization is in existence for three or more years, the aggregate gross receipts received by the organization in the immediately preceding two taxable years plus the current year are $15,000 or less.

    Note:

    . Status 31 applies to 501(c)(3) organizations (excluding churches) with gross receipts normally $5,000 or less which have filed a Form 990.

  3. Status 31 Transcripts will be issued weekly if a Form 990 posts to an account in EO Status 31 and the gross receipts are $50,000 or greater. The transcripts will be titled "Status 31 over $50,000" and contain the following information: organization name, EIN, tax period of the Form 990 and gross receipts. Process the transcripts as follows:

    1. Research CC BRTVU to determine the gross receipts for the last three years.

    2. An organization's gross receipts are considered normally not more than $5,000 if:
      During the first taxable year it receives gross receipts of $7,500 or less,
      During the first two taxable years, its aggregate gross receipts are $12,000 or less, and
      During the first three taxable years or if the organizations was in existence for three or more years, the aggregate gross receipts received by the organization in the immediately preceding two taxable years plus the current year are $15,000 or less.

    3. If the organization's gross receipts are found to be greater than $5,000, update the EO Status Code to 40 with a TC 016 Doc. Code 80 Definer Code B if the subsection is 03/09/17/20. If the subsection is other than 03/09/17/20, update the EO Status to 36.

    4. If the organization's gross receipts are found to be less than $5,000, continue processing.

    5. Check EDS for any change in the organization's status code. Update if necessary with a TC 016 Doc. Code 80 Definer Code B.

    6. After the transcript is worked, destroy per local service center procedures.

  4. Status Code 32 applies to CP 140s and CP 144s with no response to the notice. If no TC 150, 460, 590, 591, 594-599 has posted to a tax module with a Form 990 filing requirement within 90 days of the issuance of the notice, the system will automatically update the EO Status to 32 with a TC 016 Doc. Code 80 Definer Code B.

    Note:

    Due to the difference between the receipt of a return and the posting of a return, EO Status Code 32 may not be updated to 01 Status. If a return is received and account is in Status 32, update the account to Status 01.

    Note:

    Status Code 32 should not be used after January 1, 2008 since the CP 140 and 144 notices are obsolete.

  5. Status Code 33 applies to foreign private foundations described in IRC 4948(b) which are not required to apply for exemption but are required to file a Form 990-PF to pay 4% tax on gross investment income derived from sources with the United States.

    1. When these types of foreign private foundations file their Form 990-PF, it will unpost as UPC 366.

    2. Establish the EO section with EO Status Code of 33 using the current month and year as the status date with TC 016 Doc. Code 80 Definer B. No filing requirement is necessary. Status Code 33 will bypass the UPC 329 and will allow the Form 990-PF to post in the future.

3.12.278.3.5.16  (01-01-2014)
EO Status Code 34

  1. Status Code 34 applies to political organizations operating under the rules of IRC 527. Generally, there are two types of 527 organizations:

    Type Description
    Federal Organizations
    1. FEC political committee: A political organization (including federal candidate committees, political party committees and PACs) which is required to report as a political committee under the Federal Election Campaign Act.

    2. Other federal political organization: A political organization attempting to influence federal elections which is not required to report as a political committee under the Federal Election Campaign Act.

    State/Local Organizations
    1. Candidate committee: A campaign committee of a state or local candidate.

    2. Party committee: A state or local committee of a political party.

    3. Qualified state or local political organization (QSLPO): A state or local committee whose political activities relate solely to a state or local public office, is subject to state law which requires it to report to a state agency information about contributions and expenditures, makes reports publicly available, and no federal candidate or office holder controls it, participates in its direction, or solicits contributions for it.

    4. Caucus or association: a group of state or local officials attempting to influence elections.

    5. Other political organization: any other state or local political organization.

    1. Filing Requirements: The filing requirements in the chart below apply to those tax-exempt political organizations which receive or expect to receive $25,000 or more in gross receipts in any taxable year.

      If the Organization is a It May Be Required to File
      FEC political committee, state or local candidate committee or state or local committee of a political party, Form 1120POL.
      Qualified state or local political organization (QSLPO)*, Form 8871;
      Form 1120POL; and
      Form 990.
      Caucus or association of state or local officials*, Form 8871;
      Form 8872; and
      Form 1120POL.
      Any other political organization, including other federal political organizations and other state or local political organizations, Form 8871;
      Form 8872;
      Form 1120POL; and
      Form 990 or Form 990-EZ.

      *An organization may be both a QSLPO and a caucus or association of state or local officials. If so, it is not required to file Form 8872 and Form 990.

      Note:

      If the political organization does not have gross receipts of at least $25,000, it must file Form 1120 POL if it has taxable income after taking the $100 specific deduction for any taxable year.

    2. See IRM 3.13.12.14.1 for Form 8871/8453X instructions. See IRM 3.13.12.14.3 for Form 8872 instructions.

3.12.278.3.5.17  (01-01-2014)
EO Status Code 35

  1. Status Code 35 applies to foreign entities the IRS has agreed are exempt by treaty with the participating country but have no foundation code. For example, Canadian charities would be set up on Master File with an EO Status Code of 35.

    1. When this type of foreign entity files a Form 990-PF, Form 990 or Form 990-T, it will unpost as UPC 366.

    2. Establish the EO section with EO Status Code 35 using the current month and year as the status date with TC 016 Doc. Code 80 Definer B. No filing requirement is necessary. Status Code 35 will bypass the UPC 329 check and will allow the return to post in the future.

3.12.278.3.5.18  (01-01-2014)
EO Status Code 36

  1. Status Code 36 applies to Form 990 filers with a Subsection other than (3), (9), (17), or (20).

    If Then
    The return is an Unpostable 366:
    1. Determine the classification code using Document 6379 (II-3) if the return is marked with a Subsection other than (3), (9), (17) or (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.

    2. If the return does not have a subsection, put the account in Status 40 using a TC 016, Definer code B. URC 0 code the unpostable and cycle to post after the TC 016.

    Note:

    Beginning January 2004 a Form 990-T or a payment for a Form 990-T will automatically post to account in EO Status 36 if the name control and EIN on the return or payment match the name control and EIN on Master File and the Type or Organization code is 3 and a Form 990 FRC of 01/02/04/06 or Form 990-PF FRC of 01. A Form 990-T filing requirement will be added to the module.

3.12.278.3.5.19  (01-01-2014)
EO Status Code 40

  1. Use Status 40 to create an EO section for a return marked with SS 03, 09, or 17 which has not been granted an exemption at the time the return was filed.

  2. Each month (except January) "Status 40" information is downloaded from Master File to the EO Status 40 System in Ogden.

  3. If Forms 990 (SS 03/09/17/20) or Forms 990-PF (other than 4947(a)(1)) are received and research does not reveal an exemption, use Status 40. If a BMF FRC for Forms 1041, 1065 or 1120 is on the BMF account, zero out the applicable FRC.

  4. Add the EO account to BMF through IDRS with CC EOREQ/CC EOCHG.

    If Then
    The account is not on the BMF, Input a TC 000 with Doc. Code 80, Status Code 40, FYM, and remarks..
    The account is on the BMF, Input a TC 016 Doc. Code 80 Definer Codes B, Status Code 40, FYM and remarks..

3.12.278.3.5.20  (01-01-2014)
EO Status Codes 41 and 42

  1. Status Code 41 ("Failed to Reply to Solicitation for Application" ) is used by Entity for purported 501(c)(3)/(9)/(17)/(20) organizations which have finished the Status 40 process. When processing "Status 40" cases, the organization is contacted with a CP 120 to solicit an application for exemption. If the organization does not apply and receive a form exemption, the system will automatically update the account to Status 41. When inputting this status, a filing requirement for Forms 1041or 1120 will be input. . If an organization in Status Code 41 files a subsequent return, process following the specific instructions for the type of unpostable.

  2. Status Code 42 will no longer be used as of September 2011.

3.12.278.3.5.21  (01-01-2014)
Eo Status Codes 70 - 72

  1. Status Code 70 ("Exemption Denied " ) is input by Cincinnati when, on the merits of the application, an exemption cannot be granted. This status will generate a Form 1120 filing requirement of 01.

  2. Status Code 71 application is incomplete and a response to a request was not received.i This status will generate a Form 1120 filing

  3. Status Code 72 ("Refusal to Rule " ) is input by Cincinnati when the applicant is unable to furnish a detailed description of its planned activities. This description would clearly indicate whether the organization was exempt or not. This status will generate a Form 1120 filing requirement of 01.

3.12.278.3.5.22  (01-01-2014)
EO Status Code 97

  1. Status 97 is automatically updated on Master File when an organization fails to file Forms 990/990EZ, 990-N or 990–PF for three consecutive years. All EO filing requirements will be removed. This status will automatically generate a Form 1120 filing requirement.

  2. An account in Status 97 is required to file Form 1120 or 1041 or re-apply for tax exempt status by filing Form 1023 or 1024 and paying all applicable fees.

    Note:

    Do not update any accounts to or from Status 97. If any correspondence is received stating erroneous revocation and requesting reinstatement and research indicates the account should be updated, close the case as no action (URC 0 to post return) and forward to the TEGE Analyst at M/S 1110. Do not update the status.

3.12.278.3.5.23  (01-01-2014)
EO Status Codes 98 and 99

  1. Status 98 is input when an organization is identified as a terrorist organization by National Office. This status will automatically generate a Form 1120 filing requirement. When an organization Status 98 files an exempt organization return, it will unpost. Process the unpostable as follows:

    1. URC 8 and request Rejects cancel the DLN.

    2. Give the return to the Lead so the return can be forwarded to EO Classification in Dallas.

  2. Status 99 is input when an organization in EO Status 22, 41, 70-72 files another exempt organization return and they still do not have an exemption. The status will automatically generate a Form 1120 filing requirement. All exempt organization returns and any associated payments filed in future tax years will automatically post . This status code will replace the procedure of shelving status 22, 41, 70-72 returns which could not be posted in the past. EO or SBSE Examination will use Status 99 to determine what organizations require an audit. When a return unposts because the Status is 22, 41, 70-72, process as follows:

    1. Research EDS to determine if the organization has filed a new application for exemption is pending on EDS. If new application is pending, input a TC 016 Definer Codes AB to update the Status Code to 40 and remove the Form 1120 filing requirement. URC 0 to post the return and cycle to post after the TC 016.

      Note:

      EO applications are imaged and available through MEDS Documentum.

    2. If EDS shows an F case, input a TC 016 Doc. Code 80 Definer Codes AB to remove the 1120 filing requirement and add the information on EDS to Master File. URC 0 to post the return and cycle to post after the TC 016.

    3. If EDS does not show a good exemption, correspond with the organization using the 3909C Letter for Status 41 organizations or the 3877C Letter for Status 70-72 organizations. If a determination letter is provided ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If a determination letter is not provided, or a new application for exemption submitted, or there is no reply, update the EO Status to 99 with a TC 016 Doc. Code 80 Definer Code B; URC 0 to post the return and cycle to post after the TC 016. If the organization provides information indicating exemption, update Master File per the organization's response with a TC 016; URC 0 to post the return and cycle to post after the TC 016. Occasionally, both Form 1120 and 1041 filing requirements will post to the account. If this occurs, remove the EO subsection with TC 022. You may then remove the incompatible filing requirement and close the unpostable with URC 0.

3.12.278.3.6  (01-01-2014)
EO Foundation Codes

  1. The following table is a list of EO Foundation Codes:

    Foundation Codes Description
    00 4947(a)(1)
    02 Exempt Operating Foundation with an ruling under 4940(d)(2)
    03 Private Operating Foundation
    04 Private Non-Operating Foundation
    09 Suspense (a specific type not identified)
    10 Church - Section 170(b)(1)(A)(i)
    11 School - Section 170(b)(1)(A)(ii)
    12 Hospital - Section 170(b)(1)(A)(iii)
    13 Organizations operated for the benefit of a College or University -170(b)(1)(A)(iv)
    14 Federal State or Local Government unit (Section 170(b)(1)(A)(v)
    15 Organization receiving support from governmental unit or general public (Section 170(b)(1)(A)(vi)
    16 General - Public Charity 509(a)(2)
    17 Public Charity supporting (FC 09-15) (Section 509(a)(3)
    18 Public Safety (Section 509(a)(4)
    21 Supporting organization - 509(a)(3) - Type I
    22 Supporting organization - 509(a)(3) - Type II
    23 Supporting organization - 509(a)(3) - Type III functionally integrated
    24 Supporting organization - 509(a)(3) - Type III not functionally integrated

  2. See IRM 3.13.12.6.14, Exempt Organization Account Numbers for more information.

3.12.278.3.7  (01-01-2014)
Affiliation Code

  1. The following table lists EO Affiliation Codes:

    Affiliation Code Description
    1 Central Organization - (individual ruling)
    2 Intermediate Organization - (individual ruling)
    3 Independent Organization - (individual ruling)
    6 Parent of a group ruling (not a church)
    7 Intermediate Parent (subordinate by state)
    8 Parent of a church
    9 Subordinate of a group ruling (also group return)

    Note:

    For instructions on inputting the Affiliation Code (AF) with CC EOREQ/EOCHG, See IRM 3.13.12.6.16.

3.12.278.3.8  (01-01-2014)
Type of Organization

  1. The following table lists type of organizations:

    Type of Organization Description
    1 Corporation
    2 Trust
    3 Cooperative
    4 Partnership
    5 Association
    6 Non-Exempt Charitable Trust - NECT

3.12.278.3.9  (01-01-2014)
Processing Time Frames

  1. The GUF 1140 report is accessed on Control-D. The GUF 1140 report shows all new unpostables received in GUF.

  2. Unpostables should be closed within 60 days of appearing on the 1140 report or they will age.

  3. The acceptable old age for Exempt Organization unpostables is 10%.

3.12.278.3.10  (01-01-2014)
Accessing the GUF

  1. GUF is accessed by the employee via IDRS. Sign on to IDRS using your password prior to attempting GUF access. You are authorized to access only those accounts necessary to resolve your assigned cases. You are forbidden to access your own or your spouse's account, the account of a friend, relative or coworker, or any account in which you have a financial interest.

  2. Employees who engage in unauthorized access or browsing of tax accounts are subject to disciplinary actions and possible criminal prosecution. BROWSING is defined as looking at a tax account to satisfy a personal curiosity or for fraudulent reasons.

  3. GUF is accessed using the IDRS command codes UPDIS, UPASG, UPCAS, UPBAT, UPTIN, UPRES and UPREV.

3.12.278.3.10.1  (01-01-2014)
Unpostable Command Codes

  1. CC UPTIN displays all open unpostables for a specific TIN and will maintain the unpostable on its file for display purposes for 90 days after it is closed.

  2. CC UPBAT is used to batch (mass) close non-RPS unpostable cases.

  3. CC UPASG is used to assign or reassign an unpostable case or group of unpostable cases.

  4. CC UPCAS/UPCASZ, is used to suspend a case, request research, order missing documents and add history items to the screen display. EO Clerical should use the following procedures to obtain missing documents:

    1. If the Form 4251 is received without the return, check SEIN to see if return is available before proceeding with the instructions below.

    2. If the first or second request does not have a document attached, check to see if the document is charged out to another area. If the document is charged out, contact the area by phone for a copy of the return. Otherwise, take no action.

    3. If the third request does not have a document attached, initiate a special search to Files by stamping in red "SPECIAL SEARCH" on the Form 4251. Indicate SPECIAL SEARCH in the Remarks of CC UPCAS.

    4. The fourth request automatically results in an URC 8 to Rejects have the DLN cancelled.

      Note:

      Tax Examiners should not ask Rejects to do a special search on the fourth request.

  5. CC UPDIS/UPRES is valid for all Master Files, and is used to display an unpostable record.

    1. When UPDIS is input, the automatic screen display shown will be UPRES. UPDIS will display the unpostable information which was previously displayed on UPCAS.

    2. The following table lists the Unpostable Resolution Codes for CC UPRES.

    URC USE
    0 No change made to transaction; the information on UPCAS will match the Master File.
    1 Transaction to be re - input with same DLN.
    2 Void - Transaction to be deleted. Creates IDRS control base.
    6 Change name control; add name line or identification number; or a combination of TIN, name control, transaction code, transaction date, computer condition code, tax period or MFT (if transaction code and tax class are compatible.
    8 A transaction will be corrected by Rejects or when the DLN should be voided.
    A Automatic correction of name control.
    B Special closure made by the Unpostable-GUF.
    D VOID - Transaction deleted when no further action is necessary. Does not create an IDRS control base.

  6. The valid unpostable command code definers and definer- modifiers are as follows:

    CC Definer Values Definer-Modifier Values Definer Meanings
    UPASG B
    R
    blank
    blank
    Batch case reassignment.
    Single case reassignment.
    UPBAT D,0,1,2,8
    T
    W
    blank
    blank
    blank
    Valid resolution codes.
    Deletes previous batch input
    Reverses previous batch input.
    UPDIS blank NONE Display unpostable case. When CC UPDIS is input the displayed CC UPRES will be shown displaying all previous standard UPCAS information. Also, if there are other cases on CC UPTIN with the same TIN as the unpostable case, GUF will display the message "other cases with the same TIN on UPTIN."
    UPCAS blank blank No longer exists.
      M A Specific tax module MRS transcript request - display.
      M B Specific tax module MRS transcript request - hard copy.
      M C Complete - All modules MRS transcript request - display.
      M D Complete - All modules MRS transcript request - hard copy.
      M E Entity module MRS transcript request - display.
      M F Entity module MRS transcript request - hard copy.
      M G BMF quarterly for year MRS transcript request - display.
      M H BMF quarterly for year MRS transcript request - hard copy.
      M I Specific - for Spousal account tax module MRS - display.
      M J Specific - for spousal account tax module MRS - hard copy.
      M K Complete - for spousal account all modules MRS - display.
      M L Complete - for spousal account all modules MRS - hard copy.
      M M Entity module - for spousal account MRS - display.
      M N Entity module - for spousal account MRS - hard copy.
      M O Specific - for valid and invalid accounts tax module MRS - display.
      M P Specific - for valid and invalid accounts tax module MRS - hard copy.
      M Q Complete - for valid and invalid accounts all modules MRS - display.
      M R Complete - for valid and invalid accounts all modules MRS - hard copy.
      S A Places or updates a case in suspense status. Valid on all Master Files.
      M S Entity module - for valid and invalid account MRS - display.
      M T Entity module - for valid and invalid account MRS - hard copy.
      D 1 Original request for charge - out document (Form 4251).
      D 2 2nd request for charge - out document.
      D 3 3rd request for charge - out document.
      D 4 4th request (special search) Form 4251 and GUF will automatically close the case with URC 8.
      S B Places or updates a case in suspense status because of a document request not directly related to the unpostable case. Valid on all Master Files.
    Note: Tax Examiners will need to input in the remarks field the specific type of document you are requesting.
      S C Places or updates a case in suspense status because of correspondence action with the taxpayer. Valid on all Master Files.
      Z blank Request to display update/modify an unpostable history section.
    UPRES D blank Transaction to be deleted (voided). Valid on all Master Files. NO IDRS control base established.
      0 blank No change made to unpostable transaction. Attempt to repost at Master File. Valid on all Master Files. GUF will validate all TIN and name controls through the NAP for UPCs 151, 152, 153, 156, 301, 303, 701, and 703 only. All TINS and name controls must validate or GUF will not allow the closure.
      0 B Use to bypass the NAP checks.
      1 blank Transaction to be re–input. Valid on all Master Files except CAWR and PMF.
      2 blank Transaction to be deleted (voided). Valid on all Master Files. An IDRS control base is established.
      6 blank BMF: Changes any combination of name control, TIN, transaction code, MFT, tax period transaction date, TIN prefix. Error delay code. Attempt to re-post to Master File.
      6 blank Condition code O to TC 150 for MFT 02, 05, 34. Allows the input of the follow Computer Condition Codes: 3, 5, 6, A, F, G, U, R, Y, L OR W (L & W is for TC 150 and 620 Only). NOTE: CCC can be input for TC 150s only and for TC 620 if CCC L or W.
      6 B Use to bypass NAP checks.
      8 blank Transaction sent to reject register or error resolution system (ERS) suspense status. Valid on all Master Files except CAWR, IRAF (TC 150) and PMF. NOTE: It will not be necessary to close the unpostable case with URC 8 for 4th request action. GUF will automatically close the case with URC 8 with CC UPCAS with Definer D and Definer-Modifier 4 is input.
      A blank Correction of name control, using Master File name control. Valid on all Master Files but only for Unpostable Code 003 (CAWR), 152, and 156 (IMF), 303 (BMF), 703 (IRAF). If UPC 152/156, the TC must be 140, 150, or 430 and the entity code must be a 2 or 3. NOTE: The input definer URC A will convert and equal URC 6 with the unpostable record is updated.
      B blank Special closure of open, assigned cases. Valid only IMF and BMF.
    UPTIN blank NONE Displays all open and closed (up to 3 months) unpostables.

3.12.278.3.10.2  (01-01-2014)
Unpostable Resolution Codes (URC)

  1. Unpostable resolution codes (URC) are used as definers with CC UPRES to correct/close an unpostable case.

  2. The valid URCs for MF unpostables are listed below along with a brief definition.

  3. URC A is used to correct unpostable name control to read exactly the same as the Master File name control

  4. URC B - See IRM 3.12.32.

  5. URC D deletes (voids) transactions and is valid for all Master Files. A URC D removes the record from the SCUPMF and should be used for transactions with no money amounts. Use a URC D to void a transaction when no further action is necessary. A URC D will not create an IDRS control base. Always enter remarks (line 8 of UPRES) when closing an unpostable with URC D. If remarks are not entered, the system will not accept the correction and display an error message. Remarks must state why the case is being voided with a URC D.

  6. URC 0 allows the unpostable record to attempt to post again with no change at the Master File.

  7. URC 1 allows transactions to be re-input with the same DLN. It is valid for all Master Files except CAWR and PMF. A URC 1 removes the record from the S.C. Unpostables Master File (SCUPMF). These records are not corrected (at this time) for an attempted second posting at Master File as would URC 0, 5 and 6.

    1. Each unpostable record which is corrected with URC 1 is placed in "re-input" status on the Service Center Control Files (SCCF). If the document is to be re-input, enter Nullify Area Code 01, prepare From 3893 and route to Batching for input. No further action is needed on the SCCF. If the document is not to be re-input, enter the appropriate Nullify Area Code and route the Nullified Distribution List to the function which is responsible for the next action.

    2. The other times URC 1 can be used are when there are program problems or when an IRA TC 150 needs to be input to IMF.

    3. Do not route re-inputs (URC 1) documents to Data control, except at the request of the function.

    4. Always enter remarks (Line 8 of CC UPRES) when closing an unpostable with URC 1. If remarks are not entered, the system will not accept the correction and display an error message. Remarks must state why the unpostable is being closed with URC 1.

  8. URC 2 deletes (voids) a transaction and creates an IDRS control base and should be used for transactions with no money amounts.

  9. URC 6 is valid for all MF, and is used when:

    • Changing any combination of name control, name line, adding or deleting a spouse and/or spouses SSN, TIN, TIN type POD, transaction codes, transaction date, error delay code, computer condition code, tax period ending of IMF, IRAF, and the following nontaxable BMF.

    • Changing MFT. The following table shows MFT, Doc. Code and Form for BMF.

    MFT Code Doc. Code Form
    02 20 1120POL
    01 41 941
    02 09 1120A
    02 10 1120
    02 16 1120S
    06 65 1065
    09 11 CT-1
    10 40 940
    11 43 943
    12 25 1042
    14 49 944
    15 23 8752
    16 37/97/44 945
    34 93 990T
    36 81 1041A
    37 83 5227
    44 91 990PF
    46 61 8038
    46 62 8038G
    46 72 8038GC
    46 74 8038T
    47 61 Form 8871
    49 62 Form 8872
    50 71 4720
    56 88 990BL
    67 90 990
    67 09 990EZ
    67 89 990N
    67 92 990EZ (2008 revision)
    67 93 990 (2008 revision)
    72 02 CT-2
    76 35 5330
    77 29 706GST
    78 59 706GSD
    84 01 Form 8703
    85 85 Form 8038-B
    86 86 Form 8038-TC

  10. URC 8 is used to reject a transaction (see IRM 3.12.32). Attach a completed Form 13271 to the document.

    1. If the document is not a final return and a CCC F is edited on the return , request Rejects remove the CCC F. Indicate on the Form 13271 the CCC F should be removed and circle out the CCC F on the return.

    Note:

    When using URC 1, 2 or 8, you must include a nullification code and remarks on the CC UPRES screen. See IRM 3.12.278.3.10.4 for the Nullified Area Codes.

3.12.278.3.10.3  (01-01-2014)
Unpostable Status Codes

  1. The use of the command codes and definers, and definer modifiers will establish or update the "Status Code" of an unpostable case. The status code identifies what action was taken on an unpostable case. The status date indicates when this action was taken.

  2. The following is a list of status codes and their definitions:

    • A - assigned, not corrected

    • C - corrected, not removed from the SCUPMF

    • H - Quality Assurance hold

    • S - Suspense, input when return has to be held (e.g., corresponding with taxpayer)

    • Q - Accepted by Quality Assurance

  3. The status code and date will appear on line two of the CC UPCAS screen display following the literal "ST" .

    Note:

    Refer to IRM 3.12.32, Unpostable - Generalized Unpostable Framework (GUF), for more detailed information concerning status codes and dates.

3.12.278.3.10.4  (01-01-2014)
Nullified Area Codes

  1. Whenever closing an unpostable with URC 1, 2, or 8, a nullified area code must be entered to identify the receiving area for closed unpostables. A Nullified Distribution listing will be printed for each of these areas based on nullification code used.

  2. The nullify area code is entered on Line 2, in positions 6 and 7 of the new CC UPRES screen.

  3. If an nullification code is not entered, an error message will be displayed.

  4. The table below shows the nullify area codes which can be used for specific resolution codes.

  5. See Nullified Distribution Listing procedures in IRM 3.12.32,General Unpostables for further information.

    Resolution Code Nullify-Definer (Area) Code Receiving Area Literal Comments
    1 01 Re-input - No further action Only use when case is being re-input
      23 Dishonored checks  
      30 FTD Function - Accounting  
      31 Data Controls  
      32 RACS  
      41 Accounting  
      50 Customer Service  
    D Blank/01 Void - No further action Only used on cases which do not need to be worked by any other area.
    2 02 Adjustments  
      03 Collection/SCCB  
      04 Statute Only used for cases which need to be closed to Statutes.
      05 Examination Only used for cases closed to SC Examination.
      06 IRP  
      07 Disclosure Officer  
      08 Taxpayer Relations  
      09 Notice/Output Review  
      10 Unpostables Should only include cases prepared by Unpostables
      11 * Auto-Void-Emp# problem Should only include cases which are auto voided.
      12 Refund Inquiry  
      13* Manual Void-Emp# problem. Should only include cases manually voided.
      14 CAF  
      15 CAWR  
      16 URP  
      17 CI  
      19 Collection DO  
      20 Exam DO  
      21 Taxpayer Service DO  
      22 SCWR–SC  
      23 Dishonored Checks  
      24 Technical  
      25 Entity  
      40 Unidentified/Excess Collections  
      41 Accounting  
      42 Transhipped to PSC  
      43 TEGE  
      44 PRP  
      45 Electronic Filing  
      46 CI/DO  
      47 TEGE AO  
      48 PRP/DO  
      49 ERS/Rejects  
      50 Customer Service  
    8 01 Reject Resolution Should only include cases to be resolved by Rejects. NO OTHER AREA WILL WORK CASE.
      02 Adjustments  
      03 Collection/SCCB  
      04 Statutes  
      05 Examination  
      06 IRP  
      07 Disclosure Office  
      08 Taxpayer Relations  
      09 Notices/Output Review  
      12 Taxpayer Service refund inquiry Can be used for refund inquiry cases which go to Accounting or Taxpayer Service. Notate area in REMARKS for easy association.
      14 CAF  
      15 CAWR  
      16 URP  
      17 CI  
      19 Collection DO  
      20 Exam DO  
      21 TPS DO  
      22 SCWR–SC  
      23 Dishonored Checks  
      24 Technical  
      25 Entity  
      40 Unidentified/Excess Collection  
      41 Accounting  
      42 Transhipped to PSC  
      43 TEGE  
      44 PRP  
      45 Special EPMF Processing  
      46 CIB/DO  
      47 EP/EP DO  
      48 PRP/DO  
      49 ERS/Rejects  
      50 Customer Service  
    * Nullify Area Code 11 and 13 are computer generated for the purpose of routing nullified unpostable cases for which a control base cannot be established due to a problem with the IDRS employee number. These codes are not to be input by an individual tax examiner.

3.12.278.4  (01-01-2014)
Routing of Documents to Cincinnati/Dallas Area Office

  1. Photocopy any unpostable case which needs to be routed to an area office outside the campus.

  2. To ensure proper control, do the following steps:

    1. Form 3499 is used to route documents. Three types were prepared in advance.

    2. If you are sending cases to Cincinnati which are out of business, mergers, or amendments, use the Form 3499 which has IRS TEGE, PO BOX 2508, CINCINNATI, OHIO, 45201 in the "TO" section at the top of the form. At the bottom of the form, circle any action codes if necessary, check the appropriate type of case in "Remarks" , your name in the "From" section, and indicate your location, phone and date.

    3. If the taxpayer is requesting a determination letter, use the Form 3499 which has IRS TEGE, 550 MAIN ST, RM 4024, ATTN: RECORDS UNIT, CINCINNATI, OHIO, 45201 in the "TO" section at the top of the form. At the bottom of the form, circle any action codes if necessary, check the appropriate type of case in "Remarks" , your name in the "From" section, and indicate your location, phone and date.

    4. If you are forwarding a Form 1023, Form 1024, Form 8718, or Form 8734, use the Form 3499 which has CINCINNATI SERVICE CENTER, PO BOX 12192, COVINGTON, KY, 41012, in the "TO" section at the top of the form. At the bottom of the form, circle any action codes if necessary, check the appropriate type of case in "Remarks" , your name in the "From" section, and indicate your location, phone and date.

    5. Route the copies of returns and Forms 3499 to the Dallas Area Office or Cincinnati using Form 3210, Document Transmittal. List each case on the Form 3210.

    6. Retain a suspense copy of each Form 3499 and the Form 3210 on which they were sent.

    7. If you are expecting a response from Cincinnati or Dallas, suspend the unpostable case using Command Code UPCAS, Definer "S" , modifier "A" , and enter remarks. Upon receipt of the case back from the Dallas Area Office/Cincinnati, follow their instructions for final disposition of the case. Since Dallas, in many cases, may attempt to contact the organization to determine its proper status, it may take some time for Dallas to close each case.

    8. To recharge the document to the Dallas Area Office/Cincinnati, if necessary, use CC ESTABDT via IDRS. The computer will generate the necessary paperwork for Files.

3.12.278.5  (01-01-2014)
Editing Returns

  1. In the unpostable resolution process, it may be necessary to edit entity information on the return. Refer to IRM 3.11.12 Exhibits for the placement of edited information on the return.

    1. For Form 990, see Exhibit 3.11.12-1.

    2. For Schedule A, see Exhibit 3.11.12-2.

    3. For Form 990EZ, see Exhibit 3.11.12-4.

    4. For Form 990PF, see Exhibit 3.11.12-9.

    5. For Form 990T, see Exhibit 3.11.12-12.

  2. If you receive correspondence with a return attached while working any unpostable, take the following actions:

    1. Edit the correct name control, EIN, Tax period, Received date from the return and TE date stamp

    2. Edit CCC RV when appropriate.

    3. Edit the Correspondence Received Date (CRD) and Correspondence Code on the form.

    4. Edit a Computer Condition Code (CCC) of 3 in the upper right margin of the return if necessary.

    5. Refer to IRM 3.12.12 for the correct correspondence codes.

    6. Input TC 599018 using CC FRM49.

    7. Send perfect return for processing

3.12.278.6  (01-01-2014)
Employer Identification Number (EIN) Corrections

  1. This section contains correspondence procedures to be used when a corrected Employee Identification Number (EIN) is different from the EIN provided on the return.

  2. Perform all the necessary research to determine if the EIN on the return is correct using CC NAMEE/NAMEB.

  3. If the EIN is correct, continue processing.

  4. If the EIN on the return is not correct, correspond using Letter 3910C to notify the filer of their correct EIN. Use the most current address on the filer's module.

  5. The 3910C Letter does not need to be sent if the following conditions apply:

    1. Filer is using an SSN.

    2. The EIN is missing digits, the digits are transposed, or only one digit is incorrect excluding transposed digits.

    3. The EIN has merged with another number.

    4. The EIN was recently established with a TC 000.

    5. A 3910C Letter was previously sent to the filer.

3.12.278.7  (01-01-2014)
UPC 301 No Account Present

  1. RC 1 - An input (non-generated) transaction coded

    • Other than TCs 000, 019, 141, 142, 650 (Doc. Code 97) for MFTs 01/03/16/47/49, 990, 991, 992, 993, 996, OR

    • Other than a TC 150 with entity information addressing a Form 706/709 module, fails to match on TIN with an account on the BMF.

3.12.278.7.1  (01-01-2014)
UPC 301 Resolution - Unpostables

  1. Research IDRS to determine if there is a pending TC 000 for the unpostable EIN. If a TC 000 is pending, research for a pending TC 016 Doc. Code 80 which will indicate the EO sub-module is being added.

    If Then
    You find a pending TC 016 Doc. Code 80:
    1. Release the unpostable using URC 0.

    2. Cycle the unpostable to allow it to post after the TC 000 and TC 016.

    No pending TC 016 Doc. Code 80 is found:
    1. Determine the correct subsection based on the specific type of return and information found on the return, and add the subsection to Master File using TC 016 Doc. Code 80.

    2. Release the unpostable using URC 0.

    3. Cycle the unpostable to allow it to post after the TC 000 and TC 016.

  2. If there is no pending TC 000, research for a better EIN. If you find a better EIN for the taxpayer, look to see if there is an EO section.

    If Then
    There is an EO section,
    1. Perfect the document with the correct EIN, release the unpostable using URC 6.

    2. Use a 3910C Letter for both returns and extensions.

    There is no EO section but you locate a pending TC 016, Doc. Code 80 (which will indicate the EO sub-module is being added):
    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.

    3. Cycle to post after the TC 016.

    4. Use a 3910C Letter for both returns and extensions.

    There is no EO section and you cannot locate a pending TC 016 Doc. Code 80:
    1. Based on the information on the return and specific instructions for the form, add the appropriate subsection to the account using TC 016 Doc Code 80.

    2. Release the unpostable with URC 0.

    3. Cycle to post after the TC 016.


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