Return is filed to report a foreign corporation's income, deductions, credits and tax to the United States.

This return must be filed by any foreign corporation that

An agent in the U.S. must file the return if the foreign corporation has no office or place of business in the U.S.

For foreign corporations with no office or place of business in the U.S., this return is due no later than the 15th day of the 6th month after the end of the tax year.

For foreign corporations with an office or place of business in the U.S., this return is due no later than the 15th day of the 3rd month after the end of the tax year.

This return is filed to report the income, deductions, credits, and tax of a foreign sales corporation (FSC).

This return is filed by corporations that have elected (by filing Form 8279) to be taxed as a FSC or small FSC. Form 8279 is no longer valid. If Form 8279 is filed, stamp on the Form 8279 "DENIED" and return to taxpayer and explain to the taxpayer that this form is no longer a valid form.

Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, for which no EIN is located will be researched and processed as follows:

If a taxpayer terminate their existing FSC election, input TC 065 - Notification of Revocation received.

If an existing FSC is terminated, input TC 061 - Revocation of a FSC or Small FSC election.

A PFIC can elect to defer their tax on undistributed earnings and capital gains.

Assign an EIN to a PFIC that has made an election to be a Electing Fund (QEF). This will be stated in the taxpayer's letter.

Establish the account with MFI "O" as no return will be filed.

Use NIC "A" with RI 00 when establishing this type of account.

Remittances may be received when an electing foreign corporation requests to be treated as a domestic corporation for the purpose of FIRPTA as prescribed by IRC § 1.897–3(c) of the regs.

These remittances may be routed to Entity for the assignment of an EIN.

EINs will be assigned to these entities on the BMF, MFI "O" .

Use NID when assigning the EIN to this type of entity.

Section 953(c)(3)(C) elections by foreign corporations may be routed to entity for assignment of an EIN.

All information needed to establish the entity will be on the first page of the election.

Establish the account with either a Form 1120–PC or 1120-L filing requirement. This will be indicated on the election.

Use NIA when assigning the EIN to this type of entity.

This return is filed to report the total liability under Section 1446 for the partnership tax year.

This return is also a transmittal form for Form 8805.

Refer to Form 8805 for processing procedures.

This form is filed to show the amount of effectively connected taxable income and tax payments allocated to the foreign partner for the partnership's tax year.

A separate Form 8805 must be filed for each foreign partner. Process as follows:

This form is filed to make payment to the Internal Revenue Service of withholding tax under IRC § 1446.

Establish on the BMF with MFI "O" .

Form 8288 will be forwarded to Entity to establish the account on the BMF.

When the Form 8288 is received take the following actions:

If the SSN is missing, research the account using the name of the buyer/transferee. If found, establish the account on BMF.

If you cannot locate the missing SSN by research, assign an IRSN (9NN-29-NNNN or 9NN-04-NNNN) with CC TMSSN. The IRSN is an invalid number and will be established on the BMF (MFT 17) with a Definer "W" at the end of the IRSN.

After the account has been established, send the Form 8288 back to one of two places:

The words Kabushiki Kaisha or Geisha are the Japanese translation of the words "stock company" or "corporation" Therefore, if these words appear in a name line, they will be moved to the end of the name where the word "corporation" would normally appear.
For example,
Form 8288 shows the name as "Kabushiki Kaisha Green Door" When name controlling and/or assigning an EIN, the name will be formatted "Green Door Kabushiki Kaisha"

Follow the procedures below, when the correspondence reveals that the taxpayer should file a return and the correspondence is received 30 days or more prior to the due date of that return:

If the taxpayer states "CCR PLEASE EXPEDITE" or "GOVERNMENT CONTRACTOR" on their correspondence or envelope, this case must be given expeditious treatment

An EIN is only assigned from correspondence when the required return due date is within 30 days or the correspondence accompanies a payment.

Follow the procedures below if correspondence is received from a representative of a pension trust (or multiple pension trusts) requesting assignment of an EIN in order to comply with the withholding requirement of the Tax Equity and Fiscal Responsibility Act (TEFRA):

If correspondence is received stating Form SS-4 has not been processed, process as follows.

If a CP 575/576 or 147C letter was sent within the last 30 days, do not send another 147C letter.

Instructions for processing requests for copies of Forms SS-4 by Taxpayers can be found in IRM 21.7.13.3.2.12, Assigning Employer Identification Numbers (EINs) - Form SS-4 Retention (Past and Present) and Requests for Copies of Form SS-4.

If a taxpayer indicates they had a previous EIN and are requesting retention of the number, research NAMEE/NAMEB/INOLE/FINDE'D' to determine if the taxpayer can retain the old EIN.

If the taxpayer is notified of the assignment of a new EIN, but insists on retaining the "old" EIN,

EINs assigned over the Internet begin with prefixes 20, 26, 27, 45, 46 or 47. Prefixes 45, 46, and 47 were determined to be the least used of all established prefixes. Therefore, Master File currently contains EINs with these prefixes. Pay close attention to the TC 000 date to determine correct origin of EINs beginning with 45, 46, or 47.

Always research CCs NAMEE, NAMEB, ENMOD, FINDE and INOLE to verify the EIN.

Taxpayer's correspondence or Form SS-4 indicates the EIN was assigned over the Internet, process as follows:

Accounts Management/EIN Function has limited tax examining skills, therefore EIN Function will transfer correspondence and/or /taxpayer inquiries to BMF Entity for processing, specifically EINs with account activity.

See IRM 21.7.13.7.2.4 for categories transferred to Entity.

Below are the specific categories:

Non Resident Aliens may have a reason to file a federal tax return. To do this, they will need an Individual Taxpayer Identification Number (ITIN).

Form W-7 is filed to request an ITIN from the Austin Submission Processing Center. Taxpayers may obtain Form W-7 via:

Completed Forms W-7 will be mailed to:
Internal Revenue Service
ITIN Operation
PO Box 149342
Austin, TX 78714-9342

For packages being sent overnight express, the following address will be used:
Internal Revenue Service
AUSPC-ITIN Team
3651 S. Interregional Hwy 35
ATTN: ITIN Clerical Manager
Austin, TX 78741

ITIN ranges are 9NN-70-NNNN through 9NN-88-NNNN.
Beginning 1-1-11, expansion ranges of 9NN-90-NNNN through 9NN-92-NNNN and 9NN-94-NNNN through 9NN-99-NNNN will be available.

Any correspondence which indicates the taxpayer will be going out of business or is no longer liable for tax returns will be thoroughly researched. Follow the procedures below:

Correspondence may be received stating the taxpayer did not request the EIN and is not liable for filing. Verify the initiator is the taxpayer/owner of the EIN. See below:

You must correspond with the taxpayer acknowledging the action taken. However, name and address changes do not require an acknowledgement letter unless the taxpayer specifically requests one.

If a relationship between the initiator and the entity cannot be verified, send the case to the Fraud Detection Center via the "Funny Box" .

If correspondence is received requesting an EIN be re-activated and the taxpayer failed to supply the EIN, research IDRS for EIN. If EIN is found, see (3) below. If EIN cannot be located, send 45C requesting verification of EIN assignment and/or Form SS-4.

If correspondence is received requesting an EIN be re-activated, research IDRS for another EIN. If second EIN is located, process as needed, see IRM 3.13.2.9 or IRM 3.13.2.13.

If correspondence is received requesting an EIN be re-activated and IDRS research does not locate another EIN, see below:

Determine from the appropriate research if the new entity has an EIN.

If no EIN for the new entity is found, send Letter 45C. If the notification is a return or is associated with a return, assign an EIN using CC ESIGN. If it can be determined from the response, the EIN of the previous owner was used when filing the return, route a copy of the response to AM/Adjustments so the mis-applied returns can be moved to the correct EIN.

If it can be determined that the previous entity filed a return for the final period but it posted without the condition code "F" , input a TC 591 CC 20. If the final return has not posted, send 696C to previous owner requesting their final return(s).

Use the following table to determine if the taxpayer needs a new EIN. An EIN will not be assigned to correspondence unless you are processing a return, payment, or completed Form SS-4.

LLCs can change owners without acquiring a new EIN as long as the LLC remains structurally unchanged. When updating an LLC EIN to reflect a new owner, the X-REF TIN must also be updated.

If correspondence or notification from the taxpayer is received informing us of new officers, ensure this is not a change in ownership. Since we do not record officer information in the Entity module, take no action on IDRS. Acknowledge the taxpayer's correspondence including the phrase: we have updated our records accordingly.

Correspondence will be received notifying us of new LLC members. Update IDRS accordingly. If needed, update the X-REF TIN TYPE and TIN fields on the Entity module.

Correspondence may be received from the taxpayer indicating his Fiscal Year Month (FYM) was erroneously changed to December during Form SS–4 processing.

If the taxpayer is not required to use a specific tax year ending, input a TC 016 to update their FYM. Correspond with he taxpayer stating our records have been updated to show the requested FYM.
If the taxpayer is required to use a particular FYM, refer them to Form 1128.
If the taxpayer has already filed an annual return, refer them to Form 1128.

If correspondence or notification is received from a taxpayer and the taxpayer is informing us of a change in BOD:

When correspondence from the taxpayer is received notifying us of a change in their WPD:

Determine from appropriate research if entity data for the surviving corporation is correct. If not, correct the entity as required.

Input 3008C "Letter to Surviving Corporation Concerning the Merger and Correct EIN" . In the outgoing letter to the surviving corporation, there must be a statement to notify the merged corporation to file its "Final Return" if correspondence doesn't indicate taxpayer's intent to do so.

Closeout the merged corporations' filing requirements (TC 591 CC 20), if specific dates are given.

DO NOT INPUT TC 011.

Supplemental Group Ruling Information (SGRIs) are processed exclusively at Ogden Submission Processing Center.

If received at another site, transship to:
Internal Revenue Service
Ogden Submission Processing Center - MS 6273
1973 N. Rulon White Blvd.
Ogden, Utah 84404

If correspondence is received regarding Publication 78, transship to
Internal Revenue Service
TEGE Customer Account Service
PO Box 2508
Cincinnati, Ohio 45201

IRC § 1.6012–2(a)(2) of the Income Tax Regulations, reads in part as follows: If a corporation has received a charter but has never perfected its organization and has transacted no business and has no income from any source, it may, upon presentation of the facts to the service (campus) be relieved from the necessity of making a return. In the absence of a proper showing of such facts, a corporation will be required to make a return. Process "Relief from Filing" requests as follows:

An executor/administrator of an estate is required to file Form 1041 if the estate has gross income of $600 or more in a tax year. Correspondence or Forms 1041 are regularly received indicating "No Liability" . If received, input TC 590-20 for the tax period(s) involved.

Grantor trusts are not required to file Form 1041. This type of trust does not become liable for Form 1041 until the assets of the trust are distributed to the beneficiary. When correspondence or Forms 1041 are received indicating "Grantor Trust-Not Liable" , input TC 590-20 for the tax period(s) involved.

Non-Service organizations may request verification of EINs by submitting a list of names and EINs. You can only provide verification of their EIN listing with proper authorization. Authorization is a signed and dated Form 8821/2848 or an Oral Disclosure Consent. See IRM 21.1.3 for additional procedures on an Oral Disclosure Consent.

Individuals may request verification of EINs. Most of these requests will be in the form of a letter with the taxpayer’s name and EIN. If the individual is a third party, you can only provide verification of their EIN with proper authorization. Authorization is a signed and dated Form 8821/2848 or an Oral Disclosure Consent. See IRM 21.1.3 for additional procedures on an Oral Disclosure Consent. If the taxpayer asks for a duplicate CP 57X, send a 147C explaining that the original notice of EIN assignment cannot be duplicated.

If the EIN provided is incorrect, belongs to another taxpayer, is not valid or if the EIN is not provided and cannot be found through research, contact the taxpayer with a 147C letter requesting the correct EIN that needs to be verified. Refer the taxpayer to Form SS-4 if needed.

If the taxpayer and/or their authorized representative asks for a faxed 147C letter, prepare the 147C TEMPLATE and fax EIN confirmation. Enter a history item on CC ENMOD. See IRM 2.3.12.

Correspondence will be received requesting EIN verification clearly stating the taxpayer received a Backup Withholding notice from a bank or other financial institution. This notice is sent to taxpayers that have not provided the correct name and/or Taxpayer Identification Number. The taxpayer may be subject to backup withholding or TIN Penalties until the EIN is validated by IRS. The taxpayer should provide you with a copy of the notice. These taxpayers' accounts will be added to and/or updated on the MF to prevent future erroneous notices. The following are examples of entities that request TIN verification:

Requests for a TIN validation will be processed on an expedite basis (same day) since the taxpayer must respond to the payor within a limited time frame.

The taxpayer will request a 147C letter for the validation of the EIN and name as it appears on IRS records and the taxpayer may reference "per requirements of Revenue Procedure 93–37 " . Provide the taxpayer with the information exactly as it is on IRS records, unless the taxpayer is requesting a valid name change.

Thorough research will be performed to ensure the T/P submitted their TIN in the correct format (EIN vs. SSN, etc.) Thorough research will be performed for all TINs that may have been assigned.

Do not tell the taxpayer the EIN is valid because it is within the valid range if research shows the EIN is not on the Master File. If taxpayer has supplied enough information to establish the account update the Master File without filing requirements via CC ESIGN. Suppress the notice of the EIN assignment. If taxpayer has not supplied enough information contact will be needed.

If the EIN provided is incorrect, belongs to another taxpayer, is not valid or if the EIN is not provided and cannot be found through research, contact the taxpayer with a 147C letter requesting the correct EIN that needs to be verified. Refer the taxpayer to Form SS-4 if needed.

If taxpayer A inadvertently uses the EIN of taxpayer B, correspond using a 147C letter with special paragraph informing them of their correct EIN, and the corrective action taken.

If the first and second name lines have been reversed, make the corrections according to procedures and send the taxpayer a 147C letter informing them of their correct name/EIN assignment.

After a second notification of a name/TIN mismatch, the taxpayer (payee) is required to provide the bank, or other business entity (payor) with a copy of the 147C letter in order to stop backup withholding.

Form 8821 is not a Power of Attorney (POA) form. Form 8821 authorizes any individual, corporation, firm, organization, or partnership the taxpayer wants to designate to inspect and/or receive confidential information in any office of the IRS for the type of tax and the years or periods he/she has listed on this form. Form 8821 does not authorize an appointee to advocate the taxpayer's position with respect to the Federal tax laws . This form is good for only one year. If this form comes to Entity for verification of the EIN number, and it has a Centralized Authorization File (CAF) Number and an S-DLN number, it has been processed. Verify the EIN and send it to Files. If a CAF Number or S-DLN is not located after verification of EIN, return to Return and Income Verification Services (RAIVS) for processing.

If a taxpayer disagrees with any information on the CP 57X they received, they will return the notice indicating changes should be made to the account. Entity TEs will add any missing information and update any item the taxpayer indicates should be corrected.

Correspondence may be received requesting assistance because the taxpayer received a notice or returns stating that based on information contained on their Form SS–4, they may be liable for past due or current due returns. Check the EIN and name on all returns or copies of returns that may be submitted. Ensure that the return is for the same taxpayer that any notice went out for. Ensure that all returns and copies of returns are date stamped. When a TC 594/599 has been input send a copy of the correspondence to the campus Compliance Operation with instructions to file in suspense.

You must correspond with the taxpayer acknowledging the action taken. However, name and address changes do not require an acknowledgement letter unless the taxpayer specifically requests one.

Correspondence received from taxpayer indicating a bankruptcy, receiver/receivership or state receivership will be routed to the Philadelphia Campus, Centralized Insolvency Operation.

Title 11 of the United States Code (the Bankruptcy Code) provides a way for a debtor to resolve certain debts under the protection of the bankruptcy court through liquidation or reorganization.

Corporations—Separate taxable entities are not created for a bankrupt corporation and its trustee, or debtor in possession as stated in IRC § 1399. Tax returns that become due after a petition is filed in bankruptcy, are the responsibility of the trustee, or debtor in possession. When a return is received indicating a corporation is in bankruptcy or a fiduciary has been appointed in a state insolvency proceeding, update the Master File (see example below) to show the receiver's, trustee's, or debtor in possession's name and address. If a signature name is present, put the signature name as the sort name. If this information or signature is not present, correspond with the taxpayer a non-suspense letter requesting the missing information. . For example:

Individual—A bankrupt individual who has filed a Chapter 7 or 11 petition (for example, sole proprietor) and the bankruptcy estate are separate entities and are entitled to have their own EINs pursuant to IRC § 1398. Husband and wife that file bankruptcy under Chapter 7 or Chapter 11 must have their own EINs.

Partnerships (and LLCs that file as partnerships): For bankruptcy purposes, separate taxable entities will not be created for the bankrupt partnership and its trustee, etc. Follow the instructions in (3) above, except Form 1065 will be filed instead of Form 1120.

When Forms 1041 are filed for Corporations, Partnerships, or LLCs that are in bankruptcy, do not assign a new EIN unless the words "Liquidating Trust" are present on Form 1041. If these words are not present, send 177C requesting correct return for entity type. Route return back to originator.:

A bankruptcy estate and a decedent estate are different types of entities. A bankruptcy estate pertains to bankruptcy and a decedent estate is a legal entity that is created as the result of a person's death.

If the bankruptcy case number is available, input it on the primary name or continuation of primary name. Do not correspond for this information.

Leave all forms attached to bankruptcy cases if they are received from another area for EIN assignment.

A bankruptcy petition filed by either a shareholder or the corporation does not terminate an S election.

If a payroll company with POA submits correspondence stating they are responsible for the payroll of their client, take no action. The POA has already established their filing obligation.

If a payroll company with POA submits correspondence stating the company (client) is no longer liable for their tax obligation (leasing employees), input TCs 591-20 on appropriate modules.

If a payroll company without a POA submits correspondence stating they are responsible for the payroll of their client for payroll purposes, take no action. Do not input a TC 59X on any of the taxpayer's filing requirements. Do not switch the taxpayer's filing obligation over to the payroll company. Send Letter 104C to taxpayer informing him to return a completed Form 8822.

If an Entity reorganizes/converts at the state level and maintains the same structure (officers, employees, type of business), the entity may retain their EIN. Entity TEs will:

One of the most common types of reorganization is an S corporation reorganizing into a newly formed entity. If a Subchapter S election needs moved from one EIN to another, the effective date on the TC 090 input will be the same as the original TC 090. Prepare a Dummy Form 2553, see IRM 3.13.2.1.4 (7). Suppress the generation of CP 261. Include information about the Subchapter S election in the 3064C. It is not necessary to input a TC 090 to reflect the reorganization/conversion date.

Ensuring our records are current prevents returns, both paper and MeF, from being Rejected or going Unpostable.

Taxpayers that have experienced problems while utilizing MeF will submit a request for an account update. The request will state When I attempted to e-file my return it was rejected because of a filing requirement mismatch. Please update my filing requirements so that I can file a Form _____. and be signed by an officer of the organization. Input the necessary transaction(s) to ensure the taxpayer's FRCs are correct. .Correspond with the taxpayer informing them that our records have been updated.

If the taxpayer is a Subchapter S corporation and their MeF Form 1120S rejected because Master File does not reflect an 1120-02 FRC, input TC 092, prepare a Dummy 2553 reflecting the same effective date and FYM of the original election, see IRM 3.13.2.1.4 (7). Use PDC when inputting TC 090 and suppress CP 261. Tell taxpayer they will be able to e-file in three weeks.

If correspondence (or Form 4442) is received indicating the taxpayer received an EIN without filing a Form SS-4 and they are a victim of identity theft, the following actions will be taken:

Many EIN’s have been assigned to entities that had a ‘nominee’ name and Taxpayer Identification Number (TIN) entered on Form SS-4 (Internet or paper). A nominee is someone who is given limited authority to act on behalf of an entity, usually for a limited period of time, and usually during the formation of the entity.

An announcement was posted on one of the web pages on the Modernized Internet EIN application asking entities that received EIN’s with a "nominee" name and/or TIN to submit a letter with the name and TIN of the current principal officer, general partner, grantor, owner, or trustor.

This correspondence will be received via fax and/or mail and will be batched under 10006.

Entity will update the "XREF-TIN-ITIN-IND" (0 if SSN; 2 if EIN) and "XREF-TIN-ITIN" fields of CC BNCHG with the information provided in the taxpayer’s letter. If the TIN is missing, research IDRS. If unable to locate, return the correspondence to the taxpayer informing him that we cannot fulfill their request due to missing information.

Upon completion of the transaction, Entity will send a 3064C to the taxpayer notifying him that we have updated our records with the information provided.

Correspondence citing a Section 83(b) election will contains words such as "property transfer," "fair market value " , "transfer dates," and should be forwarded to Accounts Management.

If received in Entity, this correspondence should be forwarded to Accounts Management.

Correspondence may be received from partnerships indicating they are participating in a Cost Sharing Arrangement (CSA) within the partnership. The CSA does not require IRS action until the account is examined

This correspondence will be associated with the last posted Form 1065.

The response to the taxpayer will be straightforward: Thank you for notifying us of the CSA. We have attached the statement to your last filed return. The letter should be professional and contain all required elements of a letter.

If a return is not posted, return election to taxpayer informing them we cannot process the election until a return is filed and to attach the election to their initial Form 1065.

IRC § 1.663 covers an election made by certain trusts. The elements of the election do not require any IRS action until the account is examined.

This correspondence will be associated with the last posted Form 1041.

The response to the taxpayer will be straightforward: Thank you for notifying us of the CSA. We have attached the statement to your last filed return. The letter should be professional and contain all required elements of a letter.

Notification of mis-applied extensions will be received in various forms:

Always use CC ESTAB to retrieve the extension (TC 460) before determining if it is posted correctly.

Correspondence will be received notifying us of a name change to a BMF entity. There are different verification procedures for the various types of entities. These procedures are in place to ensure the name change is legitimate and does not require the assignment of a new EIN. See below for further instructions:

Input TC 013 as needed.

Do not send an acknowledgement letter unless there is a direct demand for such from the taxpayer.

Correspondence will be received from individuals that are currently incarcerated.

This type of taxpayer should be treated the same as any other taxpayer per IRM 5.19.1.4.7.

The taxpayer's "prisoner number" must be included in the address line otherwise the letter will be undeliverable.

Correspondence from the Railroad Retirement Board (RRB) will be sent directly to the Cincinnati Submission Processing Center at the following address:
Internal Revenue Service -Wage & Investment
Submission Processing, DPO/Dept 3 - Entity
Lead, Control Team
201 W. Rivercenter Blvd, Stop 343G
Covington, KY 41011

The correspondence provides documentation for the approval or removal from the RRB of the employer status of the applicant.

Entity Control will verify that the entity is, in fact, established on the BMF as a Form CT-1 and Form 941 filer.

If the documentation from RRB is for approval follow the procedures below for input of Form CT-1:

If the documentation from RRB is for removal, follow the procedures below for the deletion of Form CT-1 FR:

Under Combined Annual Wage Reporting (CAWR), SSA processes Forms W–3. When SSA receives a Form W-3 without an EIN, research is performed to obtain the EIN.

When this effort is not successful, SSA will request the IRS to research the files and either provide the EIN on the file or assign an EIN." SSA List 4479" is submitted to request this information.

The Entity department will receive the requests and perform the research.

SSA Lists 4479 are to be processed and completed within 30 calendar days of receipt in Entity.

Establish the filing requirements based on the following:

Take the following action:

The Social Security Administration (SSA) at times will request verification of an exempt organization's status in regard to FICA coverage for their employees for tax years prior to 1–1–84.

SSA will request this verification in a memo format. You will include the name and EIN of the subject organization and the periods in question along with a designated address in your response.

) Both the "To" and the "From" numbers will be researched using CCs INOLE, ENMOD, and BMFOL. Ensure that both accounts are for the same entity.

When the entity of the consolidation action is a financial institution, do not attempt to consolidate the account of the EIN assigned from the six million series. Financial institutions reporting withholding from pension trust under their control, requesting an EIN solely for use in reporting this tax, have been assigned a second EIN. This EIN will be assigned from the six million series for ease in identifying its purpose. The name of the financial institution will also show a sort name line—Account under TEFRA.

Prior to consolidating the EINs, research to ensure:

Once it has been determined that a taxpayer has been assigned more than one EIN, and no previous action has been taken, initiate the following action:

.

Figure 3.13.2-30

When posting Transaction Code 011 to the Master File, the following occurs:

Transaction Code 001 is generated as a result of TC 011. A TC 001 accomplishes a consolidation of accounts or a resequence of an account to a new EIN. If the "TO" EIN does not match a number on the BMF, the TC 001 establishes the account in the vacant slot under the new EIN. If the "TO" EIN matches a number on the BMF, a consolidation of accounts takes place unless either account contains an unreversable TC 914, or the "TO" account is INACTIVE, or the Name Controls do not match.

If conditions for consolidating accounts are present, the entire "TO" account's data is placed on the Resequence File with a 005 Transaction Code together with the 001 Transaction Code. A memo type entity is retained in the vacated BMF slot, to reserve the slot for the consolidated account. The 005 and 001 entities are consolidated and the consolidated entity is resequenced to the Master File with a 006 Transaction Code. The tax modules for both accounts are consolidated unless the following conditions are present:

When a consolidation fails, one of the following will be issued:

For tax module consolidation fail conditions the following will be issued:

Transactions are generated (TC 002, 003, 005, 006, and 026) for Consolidation of Accounts. See KEY TO CONSOLIDATION TRANSACTION CODES Table below.