Background -

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

Correspondence - All correspondence must include a telephone number where the taxpayer's questions can be answered. In addition, manually generated letters must include:

The IDRS numbers for the Correspondex letter system are automatically generated. If it is not generated, or a handwritten note is prepared, your unique IDRS number must be used.

Faxes to taxpayers on tax related matters, are considered manually-generated correspondence and must include the required information. See IRM 11.3.1.10 for Disclosure requirements on faxing.

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

When sending a correspondex letter and Receipt and Control Operation was not required to date stamp the return, determine the received date using the following priorities:

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

An Entity phone number must be provided in letters regarding Entity specific forms. When returning incomplete documents to the taxpayer, an Entity phone number must be used unless an Entity Check Box Letter (6800sce or 6801sce) is used. The BMF Toll Free Number (1-800-829-0115) may be provided in general BMF correspondence letters. If the 6800sce or 6801sce are used, input a history item on CC ENMOD that says which letter sent on the first line and the document returned on the second line. The number of characters allowed on each line of a history item are limited therefore keep each line under eight characters. For example:

6800SCE
W2553

or

6801SCE
4UNDEL

Before writing the taxpayer, examine the case completely so that all of the issues/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.

Before returning a document to the taxpayer for completion, a blue 'X' will be placed over all IRS received dates. This will ensure the validity of the received date if/when the taxpayer responds.

If there is an election on record and the taxpayer erroneously submits another document (Form 8832, Form 2553, Form 1128, etc.), prepare the document for destruction per local procedures. Do not return the document to the taxpayer.

Entity may be contacted by internal customers (other IRS employees) for assistance with Entity issues. For example, assigning EIN's, correcting effective dates, updating Entity information on an account, etc. Ask them to fax you any pertinent data so you can service their request. Take an In & Out count for each EIN that received Entity action. Below are some examples of requests received from internal customers:

Letters generated by Submission Processing must be approved by Headquarters when they are intended for dissemination to 10 or more persons. These letters are numbered in accordance with IRM 1.17.1 and IRM 1.17.2, Printing and Publication. Form letters, pattern letters, and pattern paragraphs are prescribed by Headquarters for use in service centers. DO NOT make changes to text format, date of issue (or revision), or physical characteristics of these letters and paragraphs without prior Headquarters approval. In addition, Quick Notes that are computer generated must be forwarded to Headquarters for approval. Submit requests for new letters using Form 1767, Publishing Services Requisition, following procedures outlined in IRM 1.17.1 and 1.17.2. For minor changes or additions to current letters, follow procedures in IRM 3.0.275, Business Results Measures for Submission Processing Functions.

When sending a correspondex letter and Receipt & Control was not required to date stamp the return, determine the received date using the following priorities:

The following are basic procedures for all work processed in Submission Processing BMF Entity:

Various colors of ink are used by Entity TE's. See chart below.

Throughout this IRM the words expeditious treatment/treated expeditiously are used. This means the case will be worked immediately upon assignment. You will put your other work aside and give this work expeditious treatment. Batches of work labeled expedite are low in volume. Once finished with the expedite work, the batch of work put aside will be worked.

Providing instructions that will cover all combinations of changes that might appear on a given case is not possible. Therefore, where procedures are given for a specific situation (for example, name change) and the case also needs other actions, make all changes necessary to 'perfect' the account. This includes perfecting effective dates and FYM's.

Anytime an Entity Tax Examiner discovers a return or payment posted incorrectly, they must route a Form 3465, Adjustment Request, to AM/Adjustments to have the return/payment moved and posted correctly.

If taxpayer is making payments electronically (Electronic Federal Tax Payment System-See ' ELEC PAY IND E EFT TRACE # on CC's TXMOD'A' or BMFOL'T') do not send FTD coupons unless specifically requested by taxpayer.

Signatures on returns, forms, and correspondence will be accepted according to the terms of Prima Facia Evidence, which means if you have no contradicting evidence to dispute the authority of that person, you must accept the signature. An all inclusive authorization list will not be provided, because an inclusive list is not possible.

It may become necessary for Entity TE's to create 'Dummy' documents for use as source documents for the input of certain transactions: TC 053, TC 054, TC 055, TC 076, TC 090, TC 094, TC 098 etc. To create and work a 'Dummy' document you will:

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Whenever feasible, Entity Tax Examiners will initiate telephone contact with the taxpayer before returning an incomplete document to them. When returning incomplete documents to the taxpayer, all internal documents must be removed from the enclosure and the IRS received dates will be X'd out in blue ink.

If a request is received requesting copies of documents via correspondence, Form 4506, Form 4506T, etc., Ogden Entity Department will forward the request to the Return And Income Verification Services (RAIVS) Team, mail stop 6734. Cincinnati Entity Department will forward the request to the RAIVS Team mail stop 2800F.

If you are working a case and the taxpayer requests a photocopy of his Entity related form (Form 2553, Form 8716, Form 1128, etc.), use CC ESTAB to retrieve the document from Files. Once received, make a photocopy and write the word ‘COPY’ on the document. Include the photocopy in a letter to the taxpayer. If you are not working a case, write the taxpayer informing him of Form 4506, Request for Copy of Tax Return. Inform the taxpayer that a fee is required.

Correspondence Imaging System (CIS) is an inventory system for scanning all documents received in Accounts Management (AM) and creating digital images of the documents/correspondence. AM works their cases from these images. The original documents are not retained.

GUF report 55-40 will be monitored for the erroneous creation of unpostables by Entity TE's. This report will be worked weekly as there may be unpostable transactions awaiting an Entity correction. See IRM 3.12.32 and IRM 3.12.279. This report is available on Control D.

Report CCA 42-43 will be monitored for IDRS open control bases created by the auto closure of certain unpostables. This report must be worked weekly to ensure all accounts touched by Entity reflect correct information, including FRC's and FYM's. This report is available on Control D.

To view tax returns electronically filed on Modernized e-file (MeF), users must first request access to the Employee User Portal (EUP).

Incoming mail and cases are either delivered to the Entity Clerical Support area or picked up by an Entity designee from the appropriate area(s) on a daily basis.

If Entity receives taxpayer replies for other functional areas, verify the IDRS number located in the 'In reply refer to:' area of any IRS generated letter. If the IDRS number does not belong to an Entity employee, do not batch it. Route it to the appropriate functional area without delay.

The time frames for processing BMF Entity work start from the IRS received date unless otherwise specified. See IRM 3.30.123.

If it is discovered that work was batched under an incorrect category, the batch may be re-batched to the correct category, but only during the week the batch was created.

In some circumstances, work needs to be routed to a more experienced Tax Examiner for resolution. Batching clerks will adjust the volume of the original batch and immediately re-assign the remaining documents.

In order to meet the program completion date, all BMF returns must be processed according to the required time frames.

The time frame for all returns and documents that are received via transshipment, must be given an additional 5 processing days, however this additional time cannot be granted if the BMF return is in jeopardy of exceeding the program completion date.

The time frame for processing Form 4442, Inquiry Referral, is 20 days. If the Form 4442 is for a government contractor, this work must be worked immediately. Do not wait 20 days. The Form 4442 for government contractors can be identified by the following: " Expedite Government Contractor" .

If it is determined that an item meets the criteria of several categories, it will be sorted according to the most technical category that applies. An example is BMF correspondence other than an address change. If the correspondence clearly gives information concerning a Form 2553 problem, categorize this item for a twenty day time frame.

Batch sizes are based on a theory of volume. The largest volumes received by Submission Processing Entity are Forms 2553. All entity cases are to be worked within a time frame based on IRS received date; all work must be batched by the end of each day (or whatever time the Campus designates as end of day). Therefore, working batches late in the day most likely will not meet maximum batch size. Other circumstances may dictate that batch sizes be smaller than prescribed.

It is important to be able to readily identify types of work and the working time frame without having to look at each individual batch. One way of achieving this is to use colored folders for the batches of work.

There are certain types of cases that are generally not delivered to Submission Processing Entity through mail. They are hand carried to the manager or a designee. It is the responsibility of the manager or designee to batch these cases with the appropriate working time frames.

To ensure Files Department operates as efficiently as possible, there are certain actions every Files customer should take and Entity Control Team will:

Individual EIN and Social Security Numbers (SSN) Accounts—The primary name line cannot contain numeric characters or the special character ampersand (&). Although a numeric character or ampersand (&) is a valid input for the primary name line, an individual's name in that field cannot contain a numeric character or ampersand.

Corporate Name—Suffixes such as P.A. (Professional Association), P.C. (Professional Corporation), and INC. (Incorporated), indicate a Corporate entity.

Partnership Name—The partnership primary name line will be the legal name of the partnership (for example, the list of partners or the business/trade name).

Trust Names—The trust name must appear on the primary name line.

Estate Names—The estate name (the name of the deceased person) must be included in the primary name line.

The sort name is another way to locate the taxpayer on IDRS.

When a sort name is input, the BMF will identify the sort name which allows it to be used on the Name Search Facility (NSF). The NSF is accessed with CC's NAMES and NAMEE to locate and identify the taxpayer.

If the sort name is an individual name, complete the sort name line field with the taxpayer's name as indicated by the taxpayer followed by their title. Prior to 11-30-08, Entity entered the Sort Name with the taxpayer's last name first, followed by their first name, middle initial and title. This was referred to as the 'sort line format.'

The special characters hyphen (-) and ampersand (&) can be in the sort name. If the taxpayer uses any other special character, omit the character and leave a blank space. For example, 'Taxpayer.com' will be entered as 'Taxpayer com.'
EXCEPTION: If the taxpayer includes an apostrophe in their name, omit the apostrophe, but do not leave a blank space.
For example, JANE'S STORE becomes JANES STORE

The sort name will be used for the following:

Do not identify the following as a sort name:

To delete the sort name, input "$$" in the first two positions of the sort name line.

Only remove or update the sort name line (doing business as, dba name) if there is a direct request from the taxpayer, or the name is different, and the document being processed is signed by someone with authorization. Do not add the sort name (dba), if it is exactly the same as the primary name line. Even if the sort name line is similar to the primary name line, input the sort name (dba). The sort name line is used for research purposes and will be input accurately.

An 'in care of' name is a name used to direct mail to a specific person within an organization that is not the taxpayer's primary address. The abbreviation 'c/o' is often used to represent 'in care of.' However, for IDRS purposes the percent sign (%) is used.

If the 'in care of' name is input, a '%' must be in the first position and a blank space in the second position of the 'in care of' name field.

To delete an 'in care of' name, input "$$" in the first two positions of the ' in care of' name line.

The name control consists of four alpha and/or numeric characters.

The ampersand (&) and hyphen (-) are the only special characters allowed in the name control. However, these characters cannot be in the first position of the name control.

The name control can have less, but no more than four characters. Blanks may be present only as the last three positions of the name control.

The name control for a sole proprietor's name is the first four significant characters of the last name.

When the taxpayer has a true name and a trade name, the name control is derived from the first four characters of the individual's last name.

When two last names are used, the name control is the first four letters of the second last name.

When two last names connected by a hyphen are shown for one individual, the name control is the first four letters of the first last name.

On joint returns with different last names, the name control is the first four letters of the last name of the individual appearing first.

For Spanish names, when two last names are shown for an individual, the name control is the first four letters of the first last name.

The Spanish phrases "de" , "De" "del" and "de la" are considered part of the name control.

For last names that have only two letters:

Vietnamese names will often have a middle name of Van (male) or Thi (female).

If the individual is newly arrived in the U.S., the last name may appear first on the name line. On the signature line, the last name will usually appear first.

The name control for a corporation is the first four significant characters of the corporation.

Omit the word "The" when followed by more than one word.

Include "The" in the name control when it is followed by only one word.

Corporate name control rules apply if an individual name contains the abbreviations PC (Professional Corporation), SC (Small Corporation), PA (Professional Association), PS (Professional Service), or PSC (Personal Service Corporation).

When the organization name contains the words "Fund" or "Foundation" , corporate name control rules apply. See IRM 3.13.12.
For example, Kathryn Canary Memorial Foundation.

When an individual name and a corporate name appear, the name control is the first four letters of the corporation name.
Barbara J. Zinnia
ZZ Grain, Inc. Input name control as ZZGR

The name control for a partnership will be derived in the following order of selection:

The name control for estates is the first four characters of the last name of the decedent.

The last name of the decedent must be followed by the word "Estate" in the primary name line.

The name control of a trust will be derived by the following selection:

For GNMA Pools use the first four digits of the trust number, disregarding any leading zeroes and/or trailing alphas. If there are fewer than four numbers, use the letters "GNMA" to complete the name control. Disregard any other alphas following the pool numbers.

If none of the above information is present, use the first four characters of the last name of the trustee (TTEE) or beneficiary (FBO).

If needed, contact the taxpayer via telephone for above information. If contact cannot be made, correspond via Letter 45C.

For Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, corporate name control rules apply.

For organizations other than individuals/sole proprietorships, partnerships, corporations, estates and trusts, use the following rules for determining name control:

If the organization's name indicates a political organization, use the individual's name as the name control.

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"

PREFIX on Sole Proprietor Individual.

SUFFIX on Sole Proprietor Individual.

The information for inputting individual names is derived from the following:

When establishing the account or changing the name lines for an individual use the examples below to determine the input.

Names of Spanish Extraction—Many names will include two surnames. In these cases the mother's surname (matronymic) will be the last name and must be a part of the input.

The information for inputting partnership names is derived from the following sources:

Input the partnership name from these returns filed without an EIN (Form 941, Form 943, Form 944, Form 945, Form 720, Form 730, Form 11–C, or Form 2290) in the following priority:

Input the partnership name from a Form 1065 filed without an EIN in the following priority:

These common Spanish words may appear in business names.

The information for inputting corporation names is derived from the following:

The information for inputting trust names are derived from.

Always abbreviate the primary name to 70 characters (two name lines). In addition, always abbreviate the following words or phrases. All dates in the trust name line will be entered as MMDDYYYY:

Always make the individual trustee, personal representative, etc. a sort name.

The following are examples of inputting trust names:

Mortgage Backed Security for example GNMA.

The information for inputting REMIC names is derived from the following:

When establishing the account or changing the name lines, the examples below will be used to determine the input.

For Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, name control the first four characters of the REMIC name.

Always input the word "REMIC" at the end of the primary name.

The information for inputting estate names is derived from the following:

Always abbreviate the primary name to 70 characters (two name lines). Always abbreviate the following words or phrases:

Always use the following street address abbreviations. If the input of the cities and towns will not fit into the available space, abbreviate them to make them fit.

Plurals for street, road, avenue, etc., will be entered as STS, RDS, AVES, etc. Street address for First, Second, Third, 1st, 2nd, or 3rd will be entered as the taxpayer entered.

The following abbreviations will only be used if needed to limit street address fields to 35 characters:

The following are state codes and must be used in place of the city and state. Always enter APO and FPO in the address:

The following territories and possessions are not entered as foreign addresses and require a valid state code and ZIP code:

If the name of the foreign country is not present and cannot be determined, research using a geographical dictionary.

The following fields will be used for foreign entities:

DO NOT abbreviate the country. The country is input in the city field of the mailing city/state/ZIP line.

The state field must always be a comma (,) and period (.).

The ZIP code field must always be a blank.

The foreign street address and mailing street address must be present when the state code is a period:"." .

To delete a foreign street address, "$$" must be input in the first two positions of the foreign street address. The mailing address (city, state and zip) must be present and state and ZIP code fields must not be "b" .

To input a foreign address as a location address:

To delete a foreign address as a location address, input "$$" in the first two positions of the location street address. The location city, state, and ZIP will not be input.

If the name of the foreign country is not present and cannot be determined, research online or in a geographic dictionary.

When updating the address to a foreign country and IDRS gives an error message that the foreign country code is invalid, enter a '1' in the Foreign Country Override Indicator (FCOI) field of CC BNCHG.

The following is an example of a foreign address change:

Figure 3.13.2-1

The Incorrect Mail Label Data Register is produced and sent to each campus from MCC.

The ZIP Code is equal to zero (no ZIP Code) and there is a valid state code.

The State Code is blank and the ZIP Code is present.

If a valid state code or ZIP Code cannot be found, use available resources to locate a valid telephone number for the entity. If a valid telephone number cannot be found, see your supervisor for disposition of the case.

This EC is given to government agencies acting as employer/payer's fiscal agents under IRC Section3504. These agents may refer to themselves as:

The employer/payer's may be disabled individuals or other welfare recipients receiving home-care services through a state or local government program.

A fiscal agent may:

The words Fiscal Agent will be behind the name of the governmental entity acting as a fiscal agent. If missing, add "Fiscal Agent" behind the agent's name.

This code is generated from a posted TC 070 to churches or qualified church-controlled organizations which have filed Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes.

Forms 8274 are worked exclusively at OSPC.

This code is assigned to agencies of the United States Government.

If a new EIN needs EC "F" , or if an entity changes and becomes eligible for EC "F" :

The following agencies will be assigned EC "F" :

An agency of the U.S. Government that is not part of any executive department or its components at the National Headquarters of the agency or in the field such as the following:

Corporation wholly or principally owned by the U.S. Government which has been created by law and which performs a governmental function such as the following:

Federal instrumentalities such as the following:

Organizations that are closely connected to, but not an official part of the U.S. government establishment are entitled to EC "F" if they meet strict standards. These organizations conduct financial, social, morale or housekeeping activities such as the following:

Before assigning EC "F" to these organizations, a statement should be obtained from the Post, Camp, Station or Base Commander stating the following:

Do not assign EC "F" to any of the following:

If the type of entity cannot be determined or if the entity is a questionable "F" Code filer, take the following actions:

If the organization is not a true "F" Code, take the following actions:

Assign this code to all state and local government agencies.

When assigning EC "G" , also assign a Form 941 filing requirement of 01, because these taxpayers are responsible for income tax withholding even if they are not responsible for social security and Medicare taxes. However, if the taxpayer is from Guam or American Samoa, assign a filing requirement of 06, for the Form 941–SS.

If you cannot determine from Form SS–4 that the entity is an agency of a state or local government or it is a privately owned organization, contact the entity to clarify the status prior to the assignment of EC "G" . If contact cannot be made using the telephone, input Letter 45C .

The following organizations will be assigned EC "G" :

If a state or local government instrumentality requests and receives an exemption under IRC Section 501(c)(3), the EC remains a "G"

Assign EC "I" to Indian Tribal Governmental (ITG) entities. Chief Counsel ITG will determine if an entity requires an EC 'I'. If so, verify that the BOD Code is TE. Update the Business Operation Date (BOD) Client Code to I. Add a Form 940 FR of either 3 (compliant) or 4 (non-compliant) at the time the EC 'I' is added. Chief Counsel ITG will determine whether the tribe is compliant or non-compliant.

If an Indian Tribal Governmental entity also has a 501(c)(3) exemption, the EC must be "W" without a Form 940 filing requirement.

If Master File research indicates the Exempt Organization (EO) Status is 41, 70-72, treat the entity as if they are a "regular " ITG entity with a BOD Code of TE, EC of I, BOD Client Code of I or 1, and a Form 940 FR of 3 or 4.

If the EO Status of 40 or 42, the BOD Code should be TE, but make no changes to the EC, BOD Client Code or filing requirements. If the EO Status has been in 40 for several years and the organization is continuing to file Forms 941 only and there is no "I" case on EDS, update the EO Status to 41 and treat as a "regular" ITG entity.

Assign this code to those Maritime Industry entities which have made payments for employment taxes not yet reported.

This situation arises when a shipping company estimates liabilities and makes payments currently; however, the actual liability is reported on a supplemental Form 941 filed at the termination of the voyage.

This code is assigned to a domestic business that has applied for another EIN to extend social security coverage to certain employees of its Foreign Affiliate(s). by filing Form 2032, Contract Coverage under Title II of the Social Security Act.

The filing of Form 2032 secures the election to withhold Social Security from the paychecks of American citizens working overseas.

This code is to be assigned to state and local governmental agencies that have obtained social security coverage for employees under an agreement between the state and the Commissioner of the Social Security Administration. Under IRC 42 Section 218, they are to pay social security tax directly to IRS.

This code will be input through CC BNCHG upon notification from Chief Counsel that a Section 218 agreement has been entered into by a state or local governmental agency. This code may also be input as a response from Letter 136C (Attachment 8492) or verification from the social security administrator.

Updating the EC from a "G" to a " T" :

This code is assigned to tax exempt organizations of the type described in IRC Sections 501(c)(3), 501(e), 501(f) and 501(k).

These will be organizations operated exclusively for religious, charitable, scientific, literary, educational, or humane purposes, or for the purposes of testing for public safety, and indicates that the organization is not subject to Federal Unemployment Tax Act (FUTA).

The organization is accorded this exemption from FUTA tax until their application for exempt status is ruled on or it is determined that an application has not been submitted.

This code is assigned to Federal Credit Unions. This code is used to identify Federal Credit Unions.

This Employment Code does not behave like other Employment Codes as Federal Credit Unions are liable for Form 940.

Research must be performed to determine if there is an EIN already assigned to a taxpayer before a new EIN is assigned. Be sure to research using the Entity 'sort line format' and the Accounts Management-Internet EIN 'enter as taxpayer did' format. See IRM 21.7.13. Many consolidation cases have been created due to the taxpayer being on IDRS with two different name controls. Be very cautious so as not to create new work.

There are several systems available in the campus for research as follows.