3.13.2  BMF Account Numbers (Cont. 2)

3.13.2.7 
Unprocessable Returns and Documents/Rejects

3.13.2.7.27  (01-01-2014)
Forms CT-1, Employer's Annual Railroad Retirement and Unemployment Repayment Tax Return

  1. This return is filed by a railroad employer. See Figure 3.13.2–29.

  2. The return is processed only in the Cincinnati Submission Processing Center.

  3. This return is filed annually and is due by February 28th.

  4. All employers filing this return are on a calendar year end.

  5. There is no Form 940 filing requirement for these filers.

  6. See IRM 3.11.13, Returns and Document Analysis - Employment Tax Returns, for more information on Form CT–1 filers.

    Figure 3.13.2-29

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

3.13.2.7.28  (01-01-2014)
Form 8752, Required Payment or Refund Under Section 7519

  1. This return is filed by partnerships or Subchapter S corporations that filed and received approval of Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, and their election is still in effect for the tax year in question.

  2. The return must be filed by May 15th of the year following any tax year in which the election is effective. Personal Service Corporations that have made a Section 444 election will not file Form 8752.
    For example, S election is effective 7-1-13, FYM 09: Form 8752 is due May 15, 2014.

  3. Taxpayers can submit correspondence requesting an extension of time to file Form 8752. These requests must go to the Director or District Director for approval. Existing corporations are liable to file Form 8752 the first year of their Section 444 election if their deferral income is under $500,000. The taxpayer is not required to make a payment, but they must file a zero Form 8752.

  4. When a taxpayer is liable to file a Form 8752, the initial return must be filed for the first tax year the Form 8716 is effective.

    • If an existing C corporation with a required FYM of 12 made an S election effective Nov. 1, 2013, and received approval on Form 8716 to use FYM 10, Form 8752 is required to be filed for November and December of 2013 and is due May 15, 2015. The initial Form 8752 will post to 201312-15.

    • If a new corporation with a required FYM of 12 elects to have FYM 09 (Sept. 30th), the Form 8752 is due to be filed for the first year the Section 444 is in effect. If the TC 090 is effective Oct. 1, 2013, with FYM 09 (and TC 055 is for FYM 09), the Form 8752 is due May 15, 2014. The Form 8752 will be applied to the tax year ending Dec. 31, 2013 (201312-15).

3.13.2.7.29  (01-01-2014)
Form 8875, Taxable REIT Subsidiaries (OSPC)

  1. Forms 8875 must be signed by an officer of the taxable Real Estate Investment Trust (REIT) subsidiary and by an officer of the electing REIT. If either signature is missing, use Form 6800 to return Form 8875 to the taxable REIT subsidiary requesting the missing signature(s). if either are missing.

    • Your Form 8875 does not have the signature of the officer of the taxable REIT subsidiary. Please have the appropriate officer sign the attached Form 8875 and return it to our office.

    • Your Form 8875 does not have the signature of the officer of the electing REIT. Please have the appropriate officer sign the attached Form 8875 and return it to our office.

    • Your Form 8875 does not have the signatures of the officer of the taxable REIT subsidiary or the officer of the electing REIT. Please have the appropriate officers sign the attached Form 8875 and return it to our office.

  2. If Form 8875, Part I or Part II are incomplete, research IDRS for the missing information. If IDRS does not reveal the needed information, return the incomplete Form 8875 to the taxable REIT subsidiary. Below is suggested language for the letter to the taxpayer (Form 6800 may be used for returning Form 8875):

    • The EIN of the taxable REIT subsidiary is missing. Please complete the attached Form 8875 and return it to our office.

    • The EIN of the electing REIT is missing. Please complete the attached Form 8875 and return it to our office.

  3. If a Form 8875 is received with an attachment showing a list of taxable REITs, correspond with the taxpayer for additional information as follows:

    1. Inform the taxpayer that a separate Form 8875 must be submitted for each Taxable REIT Subsidiary (TRS) and that all portions of Form 8875 must be complete.

    2. Inform the taxpayer that each Form 8875 must be signed by persons authorized to sign the tax returns of the TRS and the electing REIT. The Form 8875 must contain the signatures of an officer of the taxable REIT subsidiary and an officer of the electing REIT.

    3. If Form 8875 is returned unsigned, return the Form 8875 to the taxpayer with a letter of explanation.

  4. On the EIN of the taxable REIT subsidiary, Input a fact of filing (TC 971) on CC ENMOD with CC FRM77 using Action Code 360 with the following components:

    • Transaction Date (today's date)

    • Name Control

    • Effective date (Form 8875, Part III, Line 11. If Line 11 is blank, use the earliest IRS received date.

    • X-REF TIN (EIN of electing REIT in Part II, Line 6 of Form 8875

  5. If words such as Protective Election, Automatic Election, Amended, etc. are present, research CC ENMOD for a TC 971 AC 360. If posted, do not process Form 8875; file per local procedures. If a TC 971 AC 360 is not posted, continue processing Form 8875.

  6. Taxpayer inquiries regarding Form 8875 will be routed to Accounts Management.

  7. If it appears that information/correspondence related to Form 8875 was detached from Form 8875 and routed to Entity, research CC ENMOD with the taxable REIT subsidiary's EIN for TC 971 AC 360. If not present, input per (4) above.

  8. If "Revocation" is indicated on Form 8875, input TC 972 AC 360. Enter "T/P revoked Form 8875" in the Remarks field.

3.13.2.7.30  (01-01-2014)
Miscellaneous Forms

  1. Substitute for Return (SFR) cases (Forms 940 and 941) - State Audit leads processed in the Collection Function require the establishment of an EIN if not present.

    • Perform all necessary research to determine if an EIN was previously assigned

    • If an EIN is found, notate the EIN on the SFR and return it to the Collection Function,

    • If no EIN is found, Assign an EIN via CC ESIGN with NIC "D" . Do not assign any filing requirements

  2. Schedule H (Form 1040 or Form 1041) Schedule H replaced Form 942. This schedule is filed to report household employee Social Security, Medicare and FUTA tax payments. This schedule may be routed to Entity attached to Form 1040, Form 1041 or may be a loose schedule from Document Perfection or AM/Adjustments. When schedule is received in Entity, the following actions will be taken:

    1. Perform the preliminary research to ensure that the taxpayer does not have an EIN.

    2. If an EIN is located, edit it on the EIN block of Schedule H and return to the originating function.

    3. If no EIN is located, assign an EIN using CC ESIGN, NIC "A" , Return ID "ZZ" and the tax period of the return involved.

  3. Form 1040-NR U. S. Nonresident Alien Income Tax Return, which has other than an individual’s name will be forwarded to Entity from Code & Edit (or Accounting) for assignment of EIN’s with the prefix of 98.

    1. IDRS CC CMODE will be used with the definer PH to access the international Master File at Austin Service Center.

    2. Master File Indicator "‘O’" will be used with Location code "’98’." NIC "D" will be used to stop notices to the taxpayer.

    3. Upon completion of the EIN assignment and audit trail, the document will be returned to the originator (Code & Edit or Accounting).

  4. Form 1120-IC-DISC Interest Charge Domestic International Sales Corporation Return, without EINs may be forwarded to Entity from Code and Edit. Perform all preliminary research to insure the taxpayer does not have an EIN.

    1. If an EIN is located, enter it on the return and forward to the Document Perfection Operation/Code & Edit Department.

    2. If an EIN is not located, assign one using CC ESIGN, MFI "0" .

  5. Form 1725, Routing Slip, is utilized by many customers, specifically Compliance Revenue Agents and Officers, to notify Entity that a FRC change is needed on an EIN that has been examined. These requests will be honored if legible.

  6. Form 2363 Master File Entity Change. This document is used to request an Entity change by IRS personnel that do not have access to IDRS. Entity TEs will ensure the Form 2363 is complete, specifically the "Prepared By" box, then evaluate the request and update the Master File if the request is valid.

    1. Forms 2363 will be submitted by Examination Agents to update Filing Requirement Codes for entities under examination.

    2. Forms 2363 will reflect the taxpayer's name, name control and TIN on the FROM side of Form 2363. The taxpayer's X-REF TIN will be in the TO side of Form 2363. Across the body of Form 2363 (in FIRST NAME LINE and SECOND NAME LINE fields) the words "ADD X-REF TIN" will be hand written.

    3. The requested information will be added to the TIN indicated.

  7. Form 4219, Statement of Liability of Lender, Surety, or other Person for Withholding Taxes. This form will be received from RCO when an EIN needs assigned/found. Perform all necessary research to determine if an EIN exists before assigning a new one. NIC "D" will be used to suppress generation of a CP 57X. Send 147C notifying taxpayer of EIN assignment.

  8. Form 4442, Inquiry Referral

    If... Then....
    a) Form 4442, Inquiry Referral is received, The case must be completed within 20 days of the date stamped by the fax machine. Process the taxpayer inquiry, Section B according to your IRM procedures. Complete Section C, Response/Final Resolution in blue or black ink according to the actions taken. Track and keep an inventory of the work.
    b) A fax number is present, Fax the Form 4442 back to the originating office.

    Note:

    If the issue is an EIN consolidation, retain the Form 4442 as part of your consolidation case. It is not necessary to return Form 4442 to originator.

    c) Form 4442 is received by Entity and the inquiry is not an Entity related issue, Send the Form 4442 to your campus transshipping coordinator. The coordinator will alert the originating transshipping site of their error. The case must be processed in the receiving site to avoid delay.

  9. Form 4876-A, Election to be Treated as an Interest Charge DISC will be forwarded to Entity from Code and Edit for processing.

    • If EIN on document is valid, remove the 1120-01 FRC

    • If EIN on document is not valid, research for valid EIN. If found, edit on document and remove 1120-01 FRC

    • If valid EIN cannot be located, assign one via CC ESIGN. Use NIC "D" . Send 147C instructing taxpayer to complete and return Form SS-4.

    Process the Form 4876-A by removing the Form 1120 Filing Requirement. Input a TC 016 into CC BNCHG and 00 out the Form 1120 Filing Requirement to keep the taxpayer's account from being delinquent. After processing the 4876-A, send it back to Code and Edit.

  10. Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business—These forms will be sent directly to the Detroit Computing Center. No action is to be taken in Entity.

  11. Form 8329, Lender's Information Return for Mortgage Credit Certificates (MCCs), and
    Form 8330, Issuer's Quarterly Information Return for Mortgage Credit Certificates (MCCs).

    • Generally, these forms are non-remit. However, payment may be received for penalty payment. If so, apply to the 20-2325, Miscellaneous Forfeiture Receipts account.

    • These forms have a signature area, but are not required to be signed.

    • The address on Master File will never be updated from these forms unless a Form 8822-B is attached.

    • Never update the name on Master File from one of these forms. It is possible several entities share an EIN for bond issuing purposes. Edit the name control from Master File onto the form.

    • It is also possible that two entities will file the form together. If so, circle out the second name and EIN entered. Name control the form per Master File.

    • If EIN is not on form and unable to locate an EIN through IDRS research, contact the organization by phone for their EIN.

    • If an EIN must be assigned, use NIC 'D' and send a 147C requesting the organization to complete and return Form SS-4.

    • These forms are maintained in Files by TIN and calendar year.

  12. Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships. Do not process Form 8865: route to Accounts Management-Correspondence.

  13. Form 8873, Extraterritorial Income Exclusion. Do not process Form 8873 as a stand alone form. Form 8873 will be attached to a partnership, corporation or some other primary return. If Form 8873 is submitted as a stand alone form, return the form back to the taxpayer, so it can be associated and filed with a primary return.

  14. Form 8875, Taxable REIT Subsidiary Election is forwarded to Code and Edit, if an EIN is present. If Form 8875 is received without an EIN, assign EIN and forward to Code and Edit for processing.

  15. Form 9956, Request for Temporary IRSN (Internal Revenue Service Number). This form is routed to Entity by other areas of the service when an IRSN is needed. See IRM 3.13.5.

  16. Form 8941, Credit for Small Employer Health Insurance Premiums. This form is new for processing year 2011. These documents may be received in Entity for EIN research and/or Name (control) verification. Perform necessary research, perfect document, and enter audit trail in lower left corner of document.

3.13.2.7.31  (01-01-2014)
"Funny Box" Returns

  1. Compliance has asked Submission Processing (SP) for assistance in identifying returns that are out of the ordinary, or "funny" . Entity TEs that work returns will assist both Examination (Exam) and Criminal Investigation (CI) in identifying questionable returns. A "Funny Box" will be created and placed in a central location for the deposit of questionable returns.

  2. Identifying returns for Exam promotes the highest degree of voluntary compliance. Exam will provide support and assist SP during processing.

  3. CI investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC are defined as willful and deliberate attempts to evade or defeat the income tax.

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3.13.2.8  (01-01-2014)
International Returns and Documents

  1. This section provides instructions for working unprocessable foreign returns. The Estate and Gift program (Forms 706 and 709 series) and Excise (Forms 2290, CT-1, 11-C, 720, and 730) are centralized at the Cincinnati Submission Processing Center. All other foreign returns are processed at Ogden Submission Processing Center.

  2. If it is necessary to assign an EIN to an international taxpayer, the prefix 98 will be used. The prefix 66 will be used for taxpayers residing in Puerto Rico, Guam, Virgin Islands, American Samoa, Northern Mariana Islands and Palau.

3.13.2.8.1  (01-01-2014)
Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

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

  2. This return must be filed by any foreign corporation that

    1. Has income from any US source subject to U.S. withholding tax that was not paid to the U.S. government and reported on a U.S. withholding tax return by a U.S. withholding agent;

    2. Is engaged in a trade or business in the U.S.;

    3. Has tax preference items that affect the corporation's computation of its unrelated business income;

    4. Has overpaid income tax that it wants refunded;

    5. Is no longer engaged in a U.S. trade or business, but has deferred income from that US trade or business, or has gain from the disposition of property that ceased to be used in a U. S. trade or business within the last 10 years;

    6. Or concludes that its U.S. activities do not give rise to gross income which is effectively connected with the conduct of a trade of business within the U.S., but wishes to preserve its right to claim deductions and credits attributable to such gross income by filing a protective return. See IRC Treasury Regulation 1.882-4(a)(3)(iv).

    7. Claims the benefits of an income tax treaty with the U.S.

  3. 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.

  4. 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.

  5. 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.

3.13.2.8.2  (01-01-2014)
Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation

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

  2. 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.

  3. 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:

    1. If... And... Then...
      a) The EIN is not on the BMF,   Research to ensure the EIN is for that taxpayer, and establish on the BMF via CC BNCHG with a TC 060.
      b) The EIN is on the BMF, IDRS does not have a TC 060 posted, 1. Input a TC 060.
      2. Transcribe the EIN from the letter to the Form 1120-FSC and route the Form 1120-FSC for processing.
      3. If applicable, annotate the Form 1120-FSC "Form 8279 received, approved and input"

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

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

3.13.2.8.3  (01-01-2014)
Passive Foreign Investment Company (PFIC)

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

  2. 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.

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

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

3.13.2.8.4  (01-01-2014)
U.S. Real Property Holding Corporation under Foreign Investment Real Property Tax Act (FIRPTA) for Corporation Filing Election Under IRC Section 897(i)

  1. 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.

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

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

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

3.13.2.8.5  (01-01-2014)
Captive Insurance Elections

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

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

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

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

3.13.2.8.6  (01-01-2014)
Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

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

  2. This return is also a transmittal form for Form 8805.

  3. Refer to Form 8805 for processing procedures.

3.13.2.8.7  (01-01-2014)
Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax

  1. 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.

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

    If... Then...
    a) The partner is a foreign corporation, Establish on the BMF with a Form 1120–FRC of 06.
    b) The partner is a foreign partnership, Establish on the BMF with a Form 1065 FRC of 1.
    c) The partner is a foreign trust or estate, Establish on the BMF with a Form 1041 FRC of 1.

3.13.2.8.8  (01-01-2014)
Form 8813, Partnership Withholding Tax Payment (IRC Section 1446)

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

  2. Establish on the BMF with MFI "O" .

3.13.2.8.9  (01-01-2014)
Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests (OSPC Only)

  1. The following forms are used for reporting and paying the taxes due to the acquisition of U.S. real property interests:

    • Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests,

    • Form 8288-A , Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests

    • Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests

  2. The transferees use the forms to report and pay any tax withheld on the acquisition of U.S. real property interests. These forms are used by individuals, corporations, partnerships, estates, and trusts to withhold tax on distributions and other transactions involving U.S. real property interests from a foreign seller.

  3. The transferee and entity subject to withholding must have a TIN (SSN/EIN/ITIN) or an IRSN to post the payments and to process the income tax withholding returns.

  4. When the Form 8288/8288-A/8288-B is received take the following actions:

    1. Verify the TIN entered is correct. If not correct, verify it does not belong to another taxpayer.

    2. Establish the account on the BMF using CC BNCHG (TC 000) under MFT 17.

    3. Establish the SSN account using one of the following File Source Codes:
      V - valid SSN on BMF
      W - invalid SSN on BMF

    Note:

    There is not a Filing Requirement Code (FRC) for the Form 8288 family.

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

  6. If you cannot locate the missing TIN 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.

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

    • Deposit - only if remittance is attached, or

    • Code and Edit - if no remittance is attached.

  8. If the transferee or entity subject to withholding does not have a valid TIN, assign an IRSN or EIN. Use CC TMSSN'B' to establish the IRSN on the BMF.

  9. After the account is established, forward the remittance Forms 8288/8288-A/8288-B to the Deposit Unit.

  10. 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"

3.13.2.9  (01-01-2014)
Correspondence Received

  1. Timeliness guidelines for acknowledging and processing taxpayer correspondence are outlined in IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates. Correspondence can be defined as follows:

    1. All written communications from a taxpayer whether solicited or unsolicited.

    2. Written communication in response to IRS requests for information or data.

    3. Written communication which requests information, including that which may accompany tax returns.

    4. Written communication, including annotated notice responses, that provide additional information or dispute a notice.

    5. A statement that explains if the taxpayer needs to contact the Service, they should return a copy of the letter with their telephone number and the best time to call.

    6. Correspondence pertaining to assignments of EINs, name changes, address changes (that involve other entity changes), differences in filing requirements, terminations, mergers and supplemental listings under a group ruling will be forwarded to Entity Control Team for necessary action.

    7. Correspondence received from the taxpayer or other area of the campus where the action requested has already been taken will be destroyed per local procedures.

  2. When a taxpayer replies to an IRS notice or letter and requests an Entity change, it is not necessary that the taxpayer sign the request. This is IRS initiated clarification.

  3. If a mis-routed taxpayer reply to IRS correspondence is discovered in a batch of documents, and/or contains a non-Entity issue, do not process the reply. Route the reply or issue to the appropriate functional area. If correspondence, route based on the IDRS number located in the "In reply refer to:" area of the IRS generated letter. However, if there is an Entity issue, it will be addressed and an interim letter sent.

  4. Correspondence received from taxpayers requesting an action must be answered and the following statement or similar reference must also be included in the reply: "This is in reply to your correspondence of (date)" and explain the action taken, even if the action was exactly what the taxpayer requested.
    EXCEPTION: Correspondence requesting any type of name or address change will only be acknowledged if there is a direct demand from the taxpayer for confirmation. This direction applies to Internet EINs also.

    Note:

    If the taxpayer's correspondence is not dated, use the postmark date. If that date is unknown, use the date three days prior to the earliest IRS received date.

  5. If the words Federal Deposit Insurance Corporation (FDIC) is on any of the name lines, do not change the name or address on Master File. Truly, you should never receive this type of correspondence.

  6. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information: the nature of the taxpayer's inquiry and our actions taken.

  7. When corresponding with the taxpayer, use the appropriate letter that accurately addresses the taxpayer's situation and always use the selective paragraphs that are available in the correspondex letters before using open paragraphs. For example, do not use a 385C to inform the taxpayer of their valid EIN or denied/rejected election. Do not use a 147C on any election issues.

  8. When using CC LETER, you must determine the Taxpayer's correct address. If the address on the correspondence matches Master File (mailing or location), use that address. If the address on the correspondence does not match Master File use the address on the correspondence and direct the taxpayer to complete and return Form 8822–B (or Form 8822 for Estate and Gift taxpayers).

  9. When using CC LETER, do not select the paragraph codes for blank forms/documents. Every Correspondex letter has a hard coded paragraph instructing taxpayers to call 1-800-TAX-FORM if forms/documents are needed. If a blank form must be sent to the taxpayer, print and enclose as an attachment to the Correspondex letter.

  10. If correspondence is received from an unauthorized representative (no POA attached or on CC CFINK), a letter must be sent to the taxpayer explaining the action we can or cannot take. The letter must begin with: "This is in response to the inquiry of (date), from (representative). We have no record that you authorized (representative) to act for you in this matter. Please notify (representative) that we have replied directly to you."

    Note:

    If third party's address is the taxpayer's mailing address, do not send the above paragraph to taxpayer. By having the third party's address on Master File, the taxpayer has authorized the third party to receive information.

  11. If the correspondence cannot be resolved within thirty days, an interim letter (2645C) will be sent explaining the reason and when final action can be expected. The interim reply will include the appropriate toll free number.

  12. Signatures will be accepted according to the terms of prima facie Evidence which means if the signature is below a perjury statement, the validity of the signature will not be questioned.

  13. A CP 576 is issued when an EIN is assigned from a return. CP 576 requests a Form SS-4 from the taxpayer. When the SS-4 is received, input additional data from the SS-4 to IDRS, use CC ESIGN modifier " U" to update the NIC. Dispose of the Form SS-4 per IRM 21.7.13, Assigning Employer Identification Numbers-Disposition of Form SS-4 and Supporting Documentation.

  14. If correspondence is received concerning a trust filing under Section 645, refer to IRM 3.13.2.29.

  15. When you correspond, examine the case completely so that all of the conditions can be included in the same correspondence. If additional information is needed, the second correspondence must include a paragraph of apology for any inconvenience.

  16. If the taxpayer's inquiry is able to be resolved over the phone and the taxpayer does not want a written response, annotate the facts of the phone conversation on the taxpayer's correspondence.
    Add the following history item to IDRS with CC ACTON:
    CALL2TP
    RE: ENTITY

3.13.2.9.1  (01-01-2014)
Request for EINs

  1. 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... And... Then...
    a) The correspondence reveals that the taxpayer should file a return, The correspondence is received within 30 days of the due date of the return. Perform all necessary research to determine if an EIN was previously assigned.
    b) No EIN is located,   Assign an EIN. Use the CC ESIGN procedures located in IRM 21.7.13, Assigning Employer Identification Numbers.
    c) The EIN is changed from the one the taxpayer entered,   Issue Letter 147C as a non suspense letter to the address on the return.
    d) Sufficient information is not available to assign an EIN with the proper filing requirements, fiscal year month, etc.,   Acknowledge the taxpayer's correspondence with Letter 45C and forward a Form SS–4 for completion.

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

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

  4. 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... And... Then...
    a) The correspondence is not clear as to the taxpayer's intent, The representative is acting as payer for multiple plans, Correspond to inform the representative that the withholding may be reported on their Form 945 filed under their previously assigned EIN unless they want an individual EIN assigned specifically for use in reporting withholding for multiple pension trusts under their control.
    b) Individual EINs are requested,   Inform taxpayer that individual Forms SS–4 must be submitted for each pension trust. Refer taxpayer to Modernized Internet EIN application at www.irs.gov.
    c) An EIN is requested solely for use in reporting for TEFRA, An EIN is not located with all available research, Refer the taxpayer to the AM/EIN function (1-800-829-4933) or Mod IEIN (internet EIN application).
    e) The taxpayer has changed their EIN, The EIN is on the BMF, 1. Issue Letter 147C as a non suspense letter to the address on the return.
    2. Do not issue Letter 147C if the taxpayer transposes 3 or less characters of the EIN or the taxpayer fails to include the EIN.
    f) Employees are indicated,   1. Update the account to reflect a Form 945 FRC of 01.
    2. Forward to the taxpayer those tax forms required for current filing, when necessary.
    g) An EIN is located on another MF,   1. Notify the taxpayer of the previously assigned (Letter 147C).
    2. Establish the account on the BMF with a Form 945 FRC of 01.

3.13.2.9.2  (01-01-2014)
Form SS-4 Issues

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

    If... And... Then...
    a) Previously assigned EIN is located on IDRS, Your research does not match the address on the correspondence. Send 147C to address on correspondence requesting verification of address.
    b) The EIN is changed from the one the taxpayer entered,   1. Issue 147C as a non suspense letter to the address on the return.
    2. Do not send 147C if the taxpayer transposes 3 or less characters of the EIN or the taxpayer fails to include the EIN.
    c) No previously assigned EIN was located,   Send Letter 45C to the taxpayer.

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

  3. 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.

3.13.2.9.3  (01-01-2014)
Retaining Old EIN

  1. 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... And... Then...
    a) Research indicates the EIN is Valid, The EIN is not on the BMF. Input a TC 000 with the taxpayer's current information.
    The EIN is on the BMF. Update the account with the current information and notify the taxpayer appropriately.
    b) Research cannot verify the EIN is valid, It can be determined the EIN is a 6, 7, 8 million number assigned from a group/block of EINs. Input a TC 000 and notify the taxpayer appropriately.
    The EIN is within a valid range and the taxpayer has proof of applying through a state program. Input a TC 000 and notify the taxpayer appropriately.
    The taxpayer provides a copy of a CP notice. Input a TC 000 with the current information and notify the taxpayer appropriately.
    The taxpayer does not have verification of the EIN. Correspond requesting verification or a completed Form SS-4.

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

    1. Research other EINs thoroughly. Research all information utilizing IDRS.

    2. Determine from the information if the taxpayer can retain the "old" EIN.

    3. Update the account if needed.

    4. Consolidate the accounts (TC 011) if necessary.

    5. A CP 209 is generated notifying the taxpayer of the actions taken. CP 209 can be suppressed on the TC 011 input with Paragraph Select Code "Z."

    6. If the taxpayer cannot retain the EIN requested, correspond informing the taxpayer the reasons the new EIN must be used.

3.13.2.9.4  (01-01-2014)
Modernized Internet EIN (Mod IEIN)

  1. 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.

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

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

    If... And... Then...
    a) MOD IEIN is not on Master File, SS-4 is received Fax SS-4 to Cincinnati AM EIN department at 859–669–5289. Hold documents for one week monitoring IDRS for EIN assignment. If not assigned after seven workings days, ESIGN EIN with appropriate Notice Information Code.
    BMF return or form is received. ESIGN new EIN on the BMF with appropriate Notice Information Code
    Correspondence and/or calls are received. Refer taxpayer to the Accounts Management EIN function at 1-800-829-4933.
    b) EIN is on Master File and belongs to a different taxpayer, SS-4 is received. Fax the form to:
    AM in Cincinnati - 859-669-5760
    BMF return or form is received. Assign a new EIN with NIC "A."
    Correspondence is received. Correspond with the taxpayer telling him/her the EIN does not belong to him/her and he must apply for a new EIN.

3.13.2.9.5  (01-01-2014)
Correspondence Referred from Accounts Management/EIN Function

  1. 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.

  2. See IRM 21.7.13.7.2.4, Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EINs), for categories transferred to Entity.

  3. Below are the specific categories:

    • Form 8716 and Form 1128 Issues/FYM Changes with Account Activity. See IRM 3.13.2.21 for Form 8716 processing instructions. See IRM 3.13.2.20 for processing Form 1128 issues.

    • Consolidations Regardless of Account Activity. See IRM 3.13.2.13

    • Closing an Account Regardless of Account Activity. See IRM 3.13.2.9.7

    • Transferring Filing Extensions between Accounts - Use CC ESTAB to request posted extension from Files. If extension is posted incorrectly, prepare Form 3465 to Accounts Management to have extension moved to correct tax period. Input TC 590-020 on tax period that currently holds the extension. Input TC 016, PDC 1 to correct FYM. If extension appears to be posted correctly, correspond with taxpayer asking for verification of correct FYM. The taxpayer's response will be processed according to the information the taxpayer provides.

    • Account Consolidations Regardless of Account Activity. See IRM 3.13.2.13.

    • Estates claiming No Liability for Form 1041. See IRM 3.13.2.9.14.

    • Change in Corporate Officers, General Partners, or Members. See IRM 3.13.2.9.9.

    • EIN Verification for Backup Withholding; see IRM 3.13.2.9.16.

    • Changes to BOD and/or Wages Paid Date (WPD). See IRM 3.13.2.9.10.

    • Changes to Primary Name Line

3.13.2.9.6  (01-01-2014)
Requests for ITINs

  1. 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).

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

    • IRS walk in centers world wide

    • 1-800-TAX-FORM (1-800-829-3676)

    • www.irs.gov

    • acceptance agents (may charge taxpayer a fee)

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

  4. 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

  5. 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.

3.13.2.9.7  (01-01-2014)
Going Out of Business, No Longer Liable, or Not Liable

  1. 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:

    If... Then...
    a) There are no FRCs or they have been closed out, Acknowledge taxpayer's letter with 696C. Update DT-WG-L-PD> and DT-BUS-CLD> fields of CC BNCHG. See IRM 2.4.9, IDRS Terminal Input - Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG. If the taxpayer does not supply the specific day of the month, use the last day of the month when entering DT-WG-L-PD> and DT-BUS-CLD> fields.
    b) It can be determined that the taxpayer has filed their final returns, Close the filing requirements using TC 591 CC 020. Send 696C Update DT-WG-L-PD> and DT-BUS-CLD> fields of CC BNCHG. See IRM 2.4.9. If the taxpayer does not supply the specific day of the month, use the last day of the month when entering DT-WG-L-PD> and DT-BUS-CLD> fields.
    c) It can be determined that the taxpayer has not filed their final returns (all Form 2290 filers), 1. Send 696C to request a final return.
    2. Inform the taxpayer to mark "final" on the return.
    d) The taxpayer states the business never opened. 1. Close any filing requirements via TC 591 CC 020.
    2. Send a 696C to notify the taxpayer their account has been closed.

  2. If correspondence is received stating the taxpayer is not liable for Form 3520-A because the Mexican Land Trust (MLT) owns a single piece of property or is not liable per Revenue Ruling 2013-14, input TC 591-20 on the last tax period. If you need to write taxpayer for another issue, insert a fill-in paragraph stating: Your liability under Revenue Ruling 2013-14 may be examined at a future date.

  3. 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:

    If... Then...
    a) The taxpayer indicates no liability for the period indicated, Input TC 590 CC 020.
    b) The taxpayer indicates possible future liability, Input TC 590 CC 020 up to the present quarter or the date that may be indicated.
    c) The taxpayer indicates no employees and never will have employees, Input TC 591 CC 020 for all employment tax filing requirements. TC 591 will be input on the first period of no liability.
    d) The taxpayer indicates they are not a Form 941 filer but a Form 943 filer, Establish a Form 943 FRC and input TC 591 CC 020 on first quarter Form 941. Make sure they have a Form 940 FRC (repeat this transaction whenever a new employment tax FRC is added).
    e) The original tax returns are attached, Input TC 599 CC 024 on all returns secured and route the returns for processing.
    f) Copies of the tax returns are attached, Input TC 594 CC 022 on appropriate modules.
    g) The taxpayer indicates they have 2 EINs, Research both numbers. Consolidate if appropriate. CP 209 will generate to the taxpayer.
    h) The taxpayer stated they filed an extension, Send 696C asking taxpayer to indicate FINAL on their final return.
    i) The taxpayer attaches a return and shows no liability and the document is not signed, Input TC 590 CC 020 and destroy the document.
    j) The taxpayer attaches a return and shows no liability and the document is signed, Edit CCC "F" on the return and route to Code & Edit for processing.
    k) The taxpayer changes their name and/or address, and the correspondence is signed, Make the name and address changes.
    l) The taxpayer receives a notice for current liability and sends the notice back stating the return is not yet due, Take no action.
    m) The taxpayer states they are an exempt organization that doesn't have to file Form 1023 and has no FRCs, Send 2645C to taxpayer. Forward correspondence to EO Entity at Ogden Submission Processing Center.
    n) A consolidated return is filed and an original return is filed with the notice under the wrong EIN, Check to see if TC 150 posted. If so, send the return to AM/Adjustments. If TC 150 is not posted, correct the EIN and send for processing. If a copy of the return is submitted and a TC 150 posted, send the copy to Adjustments. No TC 150 posted, route return for processing.
    o) The taxpayer does not write a message, simply returning the notice, Take no action.
    p) The taxpayer states the business has discontinued, Input TC 591 CC 020 on the first period of each FRC.
    q) The taxpayer states they filed the return and it has been less than 10 weeks, Take no action.
    r) The taxpayer states they filed the return and it is more than 10 weeks, Contact the taxpayer. Tell them we have no record of their return and to send us a copy of what was submitted.
    s) There is an open TDI status, Send a copy of the correspondence to Service Center Compliance Operation.
    t) Taxpayer states an incorrect BOD or WPD was entered on Form SS-4, Input TC 016 to update MF with correct date. Input TCs 590/591 to satisfy appropriate modules and stop erroneous notices.

  4. 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.

  5. If a relationship between the initiator and the entity cannot be verified, send the case to the Fraud Detection Center via the "Funny Box" . Entity TEs can remove the Form 944 FRC in this situation.

3.13.2.9.8  (01-01-2014)
Resuming Business After Being Inactive or Change from Non-Employing to Employer

  1. 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.

  2. 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.

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

    If... And.. Then...
    a. EIN is "inactive" due to posting of TC 020, 1. The EIN supplied by the taxpayer is "inactive" due to the posting of a TC 020, Input TC 012, activating the FRCs requested by the taxpayer. Send 147C
      2. The EIN has FRCs that were not requested by the taxpayer, Update IDRS as needed, adding the FRCs requested by the taxpayer. Send 147C
    b. EIN is on Master File, Reflects the FRCs requested by the taxpayer, Input TCs 590-020 as needed. Update address as indicated by taxpayer. Send 147C
      Does not reflect the FRCs requested by the taxpayer, Update IDRS to reflect the FRCs and address indicated by the taxpayer. Send 147C.

  4. Entity TEs can add a Form 944 FRC in this situation.

3.13.2.9.9  (01-01-2014)
Change in Ownership or Change in Officers, Partners, or Members

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

    If... And... Then...
    Correspondence is received, It indicates a change in organization and no new EIN has been assigned, Send 45C requesting Form SS-4
    It indicates purchased going business and no new EIN has been assigned, Send 45C requesting Form SS-4
    It indicates purchased existing corporate charter, Do not assign a new EIN. Send 147C
    It indicates a merger, See IRM 3.13.2.9.11
  2. 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.

  3. 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 020. If the final return has not posted, send 696C to previous owner requesting their final return(s).

  4. 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.

    If... And... Then...
    (a) Entity does not already have an EIN, but is required to show an EIN on any return , payment, or an SS-4 is present, Return's due date has passed, Assign EIN with NIC 'D'. Send 147C requesting a completed Form SS-4.
    (b) Taxpayer Started a New Business, 1. T/P is a corporation, and opened an additional DBA, Send 147C explaining the same EIN will be used for all businesses operated under one corporation or sole proprietorship.
      2. T/P is a partnership or LLC, Send 147C asking if new DBA is part of original partnership/LLC agreement. Action taken will be determined by taxpayer's response.
    (c) Taxpayer hired (or will hire) employees, including household employees, Does not already have an EIN, Send 147C instructing taxpayer to review Publication 15, Circular E, and if necessary apply for an EIN.
    (d) Taxpayer opened a bank account for his business, Needs an EIN for banking purposes only, Send 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    (e) Taxpayer changed type of organization, Either the legal character of the organization or its ownership changed (for example, a sole proprietorship incorporated or forms a partnership),
    • Research "old" entity. If FRCs present, send 696C asking for Final return(s).

    • Research for EIN of new entity based on taxpayer's letter.

    • If found, send 147C to new entity.

    • If new EIN is not found, send 45C instructing taxpayer to apply for new EIN via Form SS-4 or www.irs.gov.

    (f) Taxpayer purchased an existing business, Does not already have an EIN. Send 45C instructing taxpayer to apply for EIN via Form SS-4 or www.irs.gov. Also tell taxpayer he should not use the EIN of the previous owner.
    (g) Taxpayer is a foreign person, Needs an EIN to avoid withholding on portfolio assets, or claim tax treaty benefits Entities applying to be a Qualified Intermediary (QI) need a QI-EIN even if they already have an EIN. Send 45C explaining this requirement. See IRM 21.7.13.3.2.7.3 , Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EINs).
    (h) Taxpayer created a Trust, The trust is other than a grantor trust or an IRA trust Send 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    (i) Taxpayer created a pension plan as a plan administrator. A plan administrator is the person or group of persons specified as the administrator by the instrument under which the plan is operated, Needs an EIN for reporting purposes Send 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    (j) Taxpayer is administering an estate, Needs an EIN to report estate Income on Form 1041 Send 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    (k) Taxpayer is a withholding agent for taxes on non-wage income paid to an alien (for example, individual, corporation, or partnership, etc.), Needs an EIN for reporting purposes, Send 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    (l) Taxpayer is a state or local, or health and welfare agency, Serves as a tax reporting agent for public assistance recipients under Rev. Proc. 80–4, 1980–1 C.B. 581. State and local agencies may need an EIN for other reasons, for example, hired employees. Send 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    (m) Taxpayer is a single-member LLC, Domestic does not need an EIN and generally will not file a Form SS-4. The LLC will use the name and EIN of its owner for all tax purposes unless the LLC will be filing employment tax returns as specified in Notice 99–6, 1991–1 C.B. 321. If the LLC will be filing employment returns, it should file using the LLCs Name and EIN. If the LLC-applicant indicates in box 13 that it has employees or expects to have employees, the owner (whether an individual or other entity) of a single-member domestic LLC will also be assigned its own EIN (if it does not already have one) even if the LLC will be filing the employment returns, Needs an EIN to file employment tax returns, Send 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    (n) Taxpayer is an S corporation, Has filed Form 2553, Election by a Small Business Corporation An existing corporation that is electing or revoking S corporation status will use its previously assigned EIN. If a new corporation, an EIN will be assigned from Form 2553. Research for EIN. If CP 575, 576, or 261 has generated within the last six cycles, take no action.

  5. 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.

  6. 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.

  7. 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.

3.13.2.9.10  (01-01-2014)
Change in Fiscal Year Month (FYM), Business Operational Date (BOD), Wages Paid Date (WPD)

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

    • All trusts must use a December FYM except Section 501(a) trusts, Section 4947(a)(1) charitable trusts and grantor trusts.

    • Partnerships, Personal Service Corporations, and Subchapter S corporations are required to use the FYM of their owner, which is usually December. If the taxpayer states they would like to use a fiscal tax year, explain that they are required to use the tax year of their owner by the Tax Reform Act of 1986. If the taxpayer indicates he would like to make a Section 444 election, ensure he qualifies before referring him/her to Form 8716.


    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.

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

    • If the "new" BOD is later than that on Master File (CCs ENMOD and BMFOL'E'), input TCs 590-020 on all necessary MFTs and modules. Input TC 016 to update the BOD.

    • If the "new" BOD is earlier than the date on Master File, input TC 016 to update BOD.

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

    • If the "new" WPD is later than that on Master File (CCs ENMOD and BMFOL'E'), input TCs 590-020 on all intervening MFTs and modules. Input TC 016 to update the WPD.

    • If the "new" WPD is earlier than that on Master File, input TC 016 to update WPD.

3.13.2.9.11  (01-01-2014)
Corporation Merger and Exempt Organization Mergers

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

  2. 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.

  3. Closeout the merged corporations' filing requirements (TC 591 CC 020), if specific dates are given.

  4. DO NOT INPUT TC 011.

3.13.2.9.12  (01-01-2014)
Supplemental Listings Under a Group Ruling

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

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

3.13.2.9.13  (01-01-2014)
Inquiries Concerning Publication 78 (Cumulative List of Organizations)

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

3.13.2.9.14  (01-01-2014)
Relief from Filing

  1. 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:

    1. Research the entity using IDRS.

    2. If research shows the entity has been established on the BMF, input TC 591 CC 020 on the tax period of the BOD. Enter "Section 1.6012" in the remarks field.

    3. Send Letter 696C to the taxpayer to inform the taxpayer that he/she is not required to file a return under Section 1.6012.

  2. 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 590-020 for the tax period(s) involved.

  3. 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 590-020 for the tax period(s) involved.

3.13.2.9.15  (01-01-2014)
Verification of EIN

  1. 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, Accounts Management and Compliance Services Operations - Operational Guidelines Overview, for additional procedures on an Oral Disclosure Consent.

  2. 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.

    1. Perform necessary research to verify the EIN(s).

    2. For organizations, indicate opposite each name on the list whether the number is valid or invalid.

    3. If the listing provided is a request from a banking institution to verify the correct EIN’s for trust accounts (bulk assignment verified list reply), route the request to AM/EIN Function in Cincinnati for processing. Send interim letter if needed.

    4. Return the validated list to the controlling unit within the campus.

    5. For BMF taxpayers, use Letter 147C to acknowledge a valid EIN. Send the letter to the address requested by the taxpayer. If a specific address is not requested, send the letter to the address on Master File.

  3. 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.

    Note:

    A non-Internal Revenue Service organization is any organization and/or individual who requests verification of EIN’s of another taxpayer. In most cases, these organizations or individual are not responsible for filing a return or obtaining an EIN for the taxpayer.

  4. 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, IDRS Terminal Responses - Command Code ACTON.

3.13.2.9.16  (01-01-2014)
Verification of EINs for TIN Penalty/Backup Withholding Purposes

  1. 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:

    • EINs that were assigned for" banking purposes,"

    • T/Ps using their SSNs for accounts that should bear an EIN,

    • EINs that have fallen off of MF due to non-liability of returns,

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

3.13.2.9.17  (01-01-2014)
Correspondence Received From CP 57X

  1. 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.

  2. 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.

    If... Then...
    a. The taxpayer indicates no liability for the period indicated, Input TC 590 CC 020.
    b. The taxpayer indicates possible future liability, Input TC 590 CC 020 up to the present quarter or the date that may be indicated.
    c. The taxpayer indicates no employees and never will have employees, Input TC 591 CC 020 for all employment tax filing requirements. TC 591 will be input on the first period of no liability.
    d. The taxpayer indicates they are not a Form 941 filer but a Form 943 filer, Establish a Form 943 FRC and input TC 591 CC 020 on first quarter Form 941. Make sure they have a Form 940 FRC (repeat this transaction whenever a new employment tax FRC is added).
    e. The original tax returns are attached, Input TC 599 CC 024 on all returns secured and put the returns through for processing.
    f. Copies of the tax returns are attached, Input TC 594 CC 022 on appropriate modules.
    g. The taxpayer indicates they have 2 EINs, Research both numbers. Consolidate if appropriate. CP 209 will generate to the taxpayer.
    h. The taxpayer stated they filed an extension, No action needed regardless of what type of tax is due.
    i. The taxpayer attaches a return and shows no liability and the document is not signed, Input TC 590 CC 020 and destroy the document.
    j. The taxpayer attaches a return and shows no liability and the document is signed, Send the return through for processing.
    k. The taxpayer changes their name and/or address, and the correspondence is signed, Make the name and address changes.
    l. The taxpayer receives a notice for current liability and sends the notice back stating the return is not yet due, Take no action.
    m. The taxpayers states they are an exempt organization that doesn't have to file Form 1023 and has no FRCs, Send 2645C to taxpayer. Forward correspondence to EO Entity at Ogden Submission Processing Center.
    n. A consolidated return is filed and an original return is filed with the notice under the wrong EIN, Check to see if TC 150 posted. If so, send the return to AM/Adjustments. If TC 150 is not posted, correct the EIN and send for processing. If a copy of the return is submitted and a TC 150 posted, send the copy to Adjustments. No TC 150 posted, route return for processing.
    o. The taxpayer does not write a message, simply returning the notice, Take no action.
    p. The taxpayer states the business has discontinued, Send 696C requesting Final return(s).
    q. The taxpayer states they filed the return and it is less than 10 weeks, Take no action.
    r. The taxpayer states they filed the return and it is more than 10 weeks, Contact the taxpayer. Tell them we have no record of their return and to send us a copy of what was submitted.
    s. There is an open TDI status on CC BMFOL'I', Send a copy of the correspondence to Service Center Compliance Operation.
    t. Taxpayer states an incorrect BO or WPD was entered on Form SS-4, Input TC 016 to update MF with correct date. Input TCs 590/591 to satisfy modules and stop erroneous notices.

  3. 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.

3.13.2.9.18  (01-01-2014)
Correspondence of Bankruptcy, Receiver/Receivership and State Receivership

  1. Correspondence received from taxpayer indicating a bankruptcy, receiver/receivership or state receivership will be routed to:
    Internal Revenue Service
    Centralized Insolvency Operation
    PO Box 7346
    Philadelphia, PA 19101-7346

  2. 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.

  3. 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:

    ABC Corporation ABC Corporation
    1234 Main Street John Smith Receiver
    Detroit, Michigan 48216 4321 State Street
      Detroit, Michigan 48216

    Exception:

    If a corporation or partnership that is in bankruptcy establishes a liquidating trust that is a separate entity for tax purposes, an EIN for that trust is required. See Treasury Reg. § 301.7701–4(d). The same rule applies if a bankrupt corporation establishes an escrow account, settlement fund or similar fund to liquidate or distribute assets.
    Correspondence may be necessary in these cases.

  4. 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.

    • If processing a return and an EIN must be assigned, assign to the person whose SSN is entered on the Form 1041. If an SSN has not been entered, assign the EIN to the first name listed.

    • A taxable bankruptcy estate is not a separate taxable entity in an individual Chapter 13 case.

    • A trustee may be appointed to oversee more than one bankruptcy case. Each time the trustee will request a new EIN. All requests will be honored. The individual debtor's name will be entered in the Primary Name Line. The trustee's name will be entered on the Sort Name Line. Establish a Form 1041 filing requirement.

    • If employees are indicated, establish with a 1041-2 filing requirement. See below for examples of the correct entity format.

    • On BMF the individual was established with EIN 32–5671234 and reads
      DAISY ROSE
      DAISYS BAR & GRILL
      1245 CENTER ST.
      FLOWER CA 92201

    • Now that the business is bankrupt, a new EIN 32–6145345 is assigned to the bankruptcy estate and reads
      DAISY]ROSE]BANKRUPTCY ESTATE
      ROBERT FISHER TTEE
      2023 WILSHIRE BLVD STE 4
      LEAF CA 90012

      Note:

      Situations may occur where the bankrupt individual and the trustee are the SAME individuals, because the individual is acting as the debtor in possession. Separate entities are created for Chapter 7 and 11 because the individual and the bankruptcy estate are nonetheless separate taxable entities. EINs are to be assigned on an expedite basis.

    • On BMF the individual was established with EIN 32–1234567 and reads
      SUSAN BEECH
      BAY CUISINE
      1214 BAY VIEW ST.
      ROSEBUD CA 92124

    • Now that the business is bankrupt a new EIN 32–7654321 is assigned and reads
      SUSAN]BEECH]BANKRUPTCY
      BAY CUISINE
      1214 BAY VIEW ST.
      ROSE BUD CA 94124

    • An individual operating more than one business may file a Chapter 7 or 11 bankruptcy petition for only one business. In this situation the trustee or debtor in possession will be assigned an EIN and FRCs only for the bankrupt business. This is a very rare situation. In the majority of cases, the individual’s entire business operation is included in the proceedings.

  5. 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.

  6. 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.

  7. 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.

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

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

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

3.13.2.9.18.1  (01-01-2014)
Foreclosures

  1. The EIN of these types of entities will always be that of the taxpaying entity. If a bank forecloses on a business and keeps the business open under the business name, a new EIN will be assigned to the bank with the business name in the Sort Name field. Taxpayer contact may be necessary to determine when a new EIN is needed.

  2. Corporations-Separate entities are created if the corporation went out of business and then re-opened with a new charter.

  3. Partnerships-A new entity is created if a different partnership is created.

  4. Individuals/Sole Proprietors-An individual will retain their EIN if they stay in business or open the business in a new location.

3.13.2.9.19  (01-01-2014)
Payroll Company

  1. 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.

  2. If a payroll company with POA submits correspondence stating the company (client) is no longer liable for their tax obligation (leasing employees), input TCs 591-020 on appropriate modules.

  3. 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/her to return a completed Form 8822-B.

3.13.2.9.20  (01-01-2014)
State Reorganization/Conversion

  1. 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:

    • Secure a copy of the taxpayer's state paperwork showing the reorganization/conversion.

    • Update the taxpayer's name and/or address as needed. Update LLC indicator as needed.

    • Prepare a "dummy" Form 8832, see IRM 3.13.2.1.4(7), with the state paperwork attached. Input TC 076 effective the date the entity reorganized/converted. Utilize PSC "Z" on the TC 076 input. If needed, see IRM 3.13.2.26.6(2) for input of TC 076.

    • Send the taxpayer a 3064C telling him/her our records have been updated to reflect the state reorganization/conversion.

  2. One of the most common types of reorganization occurs under IRC § 368(a)(1)(F) and is called an F reorganization. This occurs when an S corporation reorganizes 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, not the reorganization/conversion date. 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.

3.13.2.9.21  (01-01-2014)
Updating Account Information for Modernized e-File (MeF)

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

  2. 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.

  3. 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.

3.13.2.9.22  (01-01-2014)
Identity Theft Issues

  1. 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:

    • Ensure another EIN is not on the system for this taxpayer name. If found, initiate TC 011 procedures if needed.

    • Input TCs 591 CC 020 on all open FRCs.

    • Add Identity Theft to the "Continuation-Of-Primary-Name" field of CC BNCHG.

    • Input TC 020, PDC 2 with Identity Theft entered in the "Remarks" field of CC BNCHG.

  2. Using X-REF-TIN-ITIN data, research CCs ENMOD and IMFOL for a TC 971 Action Code 501, 504, 505, 506, 522, 523, or 524 on the IMF account. If present, take no action. If not present, forward to Accounts Management/Identity Theft.

3.13.2.9.23  (01-01-2014)
Updating "X-REF-TIN-ITIN" Field - Removing Nominee TINs

  1. Owners of EINs are required to notify IRS when any of the ownership data on the EIN changes.

  2. Notifications will be received in the form of correspondence and/or Forms SS-4.

  3. Many EINs have been assigned to entities that entered the Taxpayer Identification Number (TIN) of a "nominee" 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.

  4. In 2010, an announcement was posted on irs.gov 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.

  5. This correspondence will be received via fax and/or USPS mail and will be batched under 390-10006.

  6. Entity will update the "XREF-TIN-ITIN-IND" (0 if SSN; 2 if EIN: 3 if Parent's 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/her that we cannot fulfill their request due to missing information. This field will not be completed for non profit organizations.

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

3.13.2.9.24  (01-01-2014)
Section 83(b) Elections

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

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

3.13.2.9.25  (01-01-2014)
Section 1.482-7T Elections

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

  2. This correspondence will be associated with the last posted federal income tax return (of the owner).

  3. 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 federal income tax return. The letter should be professional and contain all required elements of a letter.

  4. If a return is not posted, return election to taxpayer informing them we cannot process the election until a federal income tax return is filed and to attach the election to their initial federal income tax return.

3.13.2.9.26  (01-01-2014)
Section 1.663 Elections

  1. 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.

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

  3. 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.

3.13.2.9.27  (01-01-2014)
Mis-Applied Extensions

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

    • Returns for "incorrect" tax periods,

    • Taxpayer correspondence,

    • Taxpayer replies to delinquency notices,

    • Internal requests for FYM verification

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

    • If extension is posted incorrectly, prepare Form 3465 to Accounts Management to have extension moved to correct tax period. Input TC 590-020 on tax period that currently holds the extension. Input TC 016, PDC 1 to correct FYM.

    • If extension is posted to the tax period indicated on extension, correspond with taxpayer asking for verification of correct FYM. The actions taken on taxpayer's response will be determined by the information provided by the taxpayer.

3.13.2.9.28  (01-01-2014)
Changes to Primary Name Line

  1. Correspondence from the taxpayer and/or their representative will be received from the taxpayer and/or their representative notifying us of a name change to a BMF entity. Some name changes are truly entity changes. Perform all necessary research and respond to the letter author accordingly. 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:

    1. Corporate name changes can be verified through the respective Secretary of State's office via the Internet.

    2. Partnership name changes cannot be verified through any outlet available to IRS employees. Therefore, we must rely on information provided by the taxpayer. More than a 50% shift in ownership constitutes a new partnership and a new EIN is required.

    3. Limited Liability Companies (LLCs) must register name changes with their respective states. Research the Secretary of State's web site to verify any name changes.

    4. If a Sole Proprietor requests a change to their personal name, research the taxpayer's SSN for same name change. If SSN is unchanged, request documentation showing the name change is legal. This documentation can be a copy of a marriage certificate, court order, etc. When response is received, the appropriate action will be determined by the taxpayer's response. If taxpayer's SSN reflects the requested name change, input appropriate transaction to update the BMF.

    5. Before a Trust name can be changed with correspondence, the trustee must provide a copy of the trust instrument. This enables us to determine if a new trust has been created, which would require a new EIN. However, successor fiduciaries often alter the trust name line on Forms 1041 without actually changing the name of the trust.

    6. As a rule, the decedent's name on an Estate will not change.

    7. Business Plans should mimic the name change of the Business entity. Follow procedures above as they apply.

    8. For Exempt Organization name changes, see IRM 3.13.12, Exempt Organization Account Numbers. If the taxpayer is in status 19, 22, 41, 70, 71, 72, 97, 98, or 99, BMF Entity should make the name change. All other statuses will be processed by Ogden Entity. Fax requests to EO Entity at ≡ ≡ ≡ ≡ ≡ ≡ .

    Note:

    Fax number is for internal use only.

  2. If unable to verify the name change via Secretary of State's office, the terms of prima facie apply, therefore, the name on Master File should be updated as requested by the taxpayer.

  3. If the request is from a third party that is not on CC CFINK and the taxpayer has been CCd or has signed the letter, make the name change.

  4. If the name change request is from a third party that is not on CC CFINK and the taxpayer is not included in the correspondence, research the Secretary of State's office on the internet for name change verification. If unable to verify, contact the taxpayer.

  5. Input TC 013 as needed.

  6. If taxpayer submits documentation that does not agree with the taxpayer's specific request, update the account per the documentation.

  7. Do not send an acknowledgement letter unless there is a direct demand for such from the taxpayer and/or their representative.

3.13.2.9.29  (01-01-2014)
Correspondence from Incarcerated Taxpayers

  1. Correspondence will be received from individuals that are currently incarcerated.

  2. This type of taxpayer should be treated the same as any other taxpayer per IRM 5.19.1.4.7, Liability Collection - Balance Due.

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

3.13.2.9.30  (01-01-2014)
Correspondence requesting an Address Change

  1. Correspondence will be received from the taxpayer and/or his representative requesting an address change. The correspondence must state the current and correct name of the entity, EIN, old address and new address.

  2. Correspondence will be accepted according to the terms of prima facie. If there is no contradicting evidence to dispute the authority of that person, the signature must be accepted.

  3. The name, title, and phone number if present will be entered in the Remarks section of the transaction updating the taxpayer's address.

  4. Address changes will be input by the standards of IRM 3.13.2.3.

3.13.2.9.31  (01-01-2014)
Correspondence regarding a Fiduciary Relationship

  1. Form 56 is the correct avenue for a taxpayer to notify IRS of a fiduciary relationship.

  2. If correspondence is received asking to establish or terminate a fiduciary relationship, a "dummy" Form 56 should be prepared and used as a source document for the input of TC 098/099.

  3. See IRM 3.13.2.18.

3.13.2.10  (01-01-2014)
Railroad Retirement Board (RRB)

  1. This section contains information on Railroad Retirement Board Numbers and Requests.

  2. The Railroad Retirement Board (RRB) assigns one four-digit number to each railway labor organization employer and to each carrier. When assigned to a railway labor organization employer, the number is used not only by the parent organization but also by each subordinate unit.

  3. When a RRB number is also used by a subordinate unit of a railway labor organization employer, it is expanded to eight digits. The last four digits of the number represent a parent organization and the first four digits represent a subordinate unit.


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