3.13.12  Exempt Organization Account Numbers

Manual Transmittal

November 06, 2014

Purpose

(1) This transmits revised IRM 3.13.12, Exempt Organization Account Numbers, in IRM 3.13, SC Document Services.

Material Changes

(1) Grammatical changes made throughout the IRM.

(2) IRM 3.13.12.20.4(5) - IRC 401 plans added to EO-EIN instructions.

(3) Incorporated IPU 14U0911 issued 05-23-2014 IRM 3.13.12.2(3) &(4) - Added requirement to input TC 590/014 for group returns, and check for posting of returns.

(4) Incorporated IPU 14U0911 issued 05-23-2014 IRM 3.13.12.6.2.3(5) - Transaction code corrected.

(5) Incorporated IPU 14U0911 issued 05-23-2014 IRM 3.13.12.6.2.4 - Added instructions for filing requirements when account is in a good status.

(6) Incorporated IPU 14U0911 issued 05-23-2014 IRM 3.13.12.9.10.1 - e-Postcard instructions corrected.

(7) Incorporated IPU 14U0911 issued 05-23-2014 IRM 3.13.12.11.4(6) - Requirement to send list for subordinates removed.

(8) Incorporated IPU 14U0911 issued 05-23-2014 IRM 3.13.12.12.3(6) - Letter number corrected.

(9) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.11.4 - Status 97 input chart and instructions updated.

(10) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.6.2.2(5) - ENREQ/BNCHG added.

(11) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.6.2.3(5) - ENREQ/BNCHG added.

(12) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.6.5(7) - ENREQ/BNCHG added.

(13) Incorporated IPU 14U0306 issued 02-11-2014 IRM 3.13.12.11.4(2) - 944 removed.

(14) Incorporated IPU 14U0306 issued 02-11-2014 IRM 3.13.12.6.18.23(1) Table - 944 removed.

(15) Incorporated IPU 14U0306 issued 02-11-2014 IRM 3.13.12.7.1(5) - 944 removed.

(16) Incorporated IPU 14U0306 issued 02-11-2014 IRM 3.13.12.20.4 Table - Subsection and classification code added.

(17) Incorporated IPU 14U0006 issued 01-02-2014 IRM 3.13.12.11.4 - Additional instructions added to Status 97.

(18) Incorporated IPU 14U0006 issued 01-02-2014 IRM 3.13.12.12.12.4.13 - Letter corrected.

(19) Incorporated IPU 14U0006 issued 01-02-2014 IRM 3.13.12.14.4.6 - Removed Imaging requirement.

(20) Incorporated IPU 14U0006 issued 01-02-2014 IRM 3.13.12.14.1.2 - Instructions not to send F8453X back.

(21) Incorporated IPU 14U0006 issued 01-02-2014 IRM 3.13.12.21.3(1) - Additional information added concerning undeliverable SGRI.

(22) Incorporated IPU 14U0251 issued 02-03-2014 IRM 3.13.12.6.18.7 - Status 11 added.

(23) Incorporated IPU 14U0251 issued 02-03-2014 IRM 3.13.12.12.12.4.4(2) and (3) - Additional group ruling information added.

(24) Incorporated IPU 14U0265 issued 02-05-2014 IRM 3.13.12.20.4 - EO-EIN Transcript procedures added.

(25) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.9.10 - Login information added.

(26) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.9.21.1(2) - Form 5227 question corrected.

(27) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.12.12.4.4(2) -"Similar wording" added.

(28) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.14.3 - Imaging instructions added.

(29) Incorporated IPU 14U0653 issued 04-08-2014 IRM 3.13.12.21.1(8) - Procedure to destroy notices for Status 97 added.

Effect on Other Documents

IRM 3.13.12, dated 01-01-2014 is superseded.

Audience

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

Effective Date

(01-01-2015)

Maria D. Hooke,
Director, Business
Systems Planning SE:T:BSP
Tax Exempt Government Entities

3.13.12.1  (01-01-2015)
Overview

  1. This IRM provides procedures for:

    • Establishing entities on the BMF

    • Maintaining entities on the BMF

    • Updating entities on the BMF

    • Processing Form 1128, Application to Adopt, Change or Retain a Tax Year

    • Processing Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security Taxes

    • Processing Form SS –16, Certificate of Election of Coverage Under the Federal Insurance Contribution Act

    • Processing taxpayer correspondence relating to entity

    • Processing requests for Federal Tax Deposit Coupons

    • Consolidating multiple EINs

    • Maintaining exempt organizations

    • Processing exempt organization delinquent notices

    • Processing supplemental group ruling information (SGRI)

    • Assigning group exemption numbers (GEN)

    • Processing returns without an employer identification number or a change of organization

  2. The following IRMs are used in conjunction with IRM 3.13.12:

    • IRM 3.12.278, Exempt Organization Unpostable Resolution

    • IRM 3.12.32, General Unpostables

    • IRM 3.12.279, BMF/IRAF/CAWR/Unpostables Resolution

    • IRM 3.13.2, BMF Account Numbers

    • IRM 3.11.12, Exempt Organization Returns

    • IRM 3.12.12, Exempt Organization Returns

    • IRM 3.13.2, BMF Account Numbers

    • IRM 3.10.72, Extracting, Sorting and Numbering

    • IRM 3.13.62, Media Transport and Control

    • IRM 3.30.123, Processing Timeliness

    • IRM 3.5.17, Federal Tax Deposit System

    • IRM 3.8.46, Discovered Remittance

    • IRM 3.17.220, Excess Collection File

    • IRM 3.5.61, Files Management and Services

    • IRM 21.2.3, Transcripts

    • IRM 2.4, IDRS Terminal Input

    • IRM 2.4.10, CC EOREQ and EOCHG

    • IRM 2.4.9, CC ENREQ and BNCHG

    • IRM 2.3, IDRS Terminal Responses

    • IRM 21.7.13, Assigning Employer Identification Numbers

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

  4. The instructions for processing Form SS-4, Application for Employer Identification Number, and using the CC ESIGN are located in IRM 21.7.13, Assigning Employer Identification Numbers. You should refer to this IRM when processing Form SS-4 or using CC ESIGN to assign an Employer Identification Number (EIN) for a return. The following table should be used when assigning an EIN to determine the Business Operational Date (BOD):

    IF THEN
    The entity is a trust The date the trust was funded
    The entity is an estate
    • The date of death of the decedent, or

    • The date the estate was legally funded (that is, when probate completed and assets flowed into the account).

    • A BOD is not indicated, and

    • The entity has employees and has indicated a wages paid date (line 15 of the Form SS-4)

    The Wages Paid Date EXCEPTION: If the Wages Paid Date is later than the current date, use the current date as the BOD.
    • A BOD is not indicated

    • The entity does not have employees, and/or

    • A wages paid date is not indicated

    The current date.
    • A BOD is not indicated, and

    • The taxpayer is required to file Form 1042, Form 730, or Form 2290

    The current date

3.13.12.1.1  (01-01-2015)
IRM Format

  1. The format of this IRM was changed:

    • Indented bullets (•) are used when the order of items is not important.

    • Indented numerical listings are steps usually done in the order listed.

    • Indented alphabetical listings are procedures done in no particular order.

3.13.12.1.2  (01-01-2015)
Glossary of Terms

  1. Account: One taxpayer identified by a Social Security number or employer identification number. Each account is a record of the type of returns filed and the related tax periods.

  2. Accounts Maintenance Transcripts: A transcript generated when an unresolved credit is on the Master File.

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

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

  5. Asset Code:Used to identify end of year total assets.

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

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

  8. Blocking Series: A special identification within a Document Locator Number (DLN) which requires or identifies special action.

  9. Business Master File - (BMF): A magnetic tape file containing information about organization filing business returns and related documents.

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

  11. Calendar Year: The 12 month period from January 1 through December 31.

  12. Command Code - (CC): Five-character code used to input data on the Integrated Data Retrieval System (IDRS).

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

  14. Consolidate: The moving of data when one organization has erroneously been given more than one Taxpayer Identification Number (TIN).

  15. Credit Balance: A term noting a credit outstanding on a module. Identified by a minus (−) after the amount.

  16. Cross Reference – (X-Ref):Identifies related Taxpayer Identification Numbers (TINs) and sort names (DBA).

  17. Cycle: One week's processing at the campuses and Martinsburg Computing Center. The cycle is expressed by a 6 digit code. The first four digits represent the processing year and the last two digits represent the processing week in the year.

  18. Document Locator Number - (DLN): A controlled fourteen digit number assigned to every return or document input through the Automatic Data Processing (ADP) system. The last digit is the year of processing and is assigned by the Campus Computer Program at the time of the original input. The DLN is used to control, identify, and locate documents processing in the ADP system.

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

  20. Employer Identification Number - (EIN):An assigned nine (9) digit number which identifies a business tax account.

  21. Employment Code - (EC): A one-letter code used to identify certain employers regarding Social Security Taxes and Federal Unemployment Tax.

  22. Entity: The portion of the Master File record which identifies the organization. The entity contains:

    • name

    • address

    • social security (SSN) or employer identification number (EIN)

    • employment code (EC), if applicable

    • name control (NC), four characters from the organization name

    • location codes

    • filing requirement codes (FRC)

    • fiscal period

    • date of establishment

  23. Excess Collections: An account of unapplied credits transferred from an unidentified or Master File Account.

  24. Exempt Organization - (EO): Those organizations exempt from federal income tax under IRC 501(a) of 1986. IRC 501(c)(3), IRC 501(c)(9) IRC 501(c)(17), and IRC 501(c)(20) organizations are required to notify the Service they are seeking tax-exempt status; they must file a Form 1023 or Form 1024 as applicable. IRC 501(c) organizations other than IRC 501(c)(3), IRC 501(c)(9) IRC 501(c)(17), and IRC 501(c)(20) are not required to file an application for exemption, though they may do so. They are considered exempt even though they do not apply for exemption. Organizations which are recognized as tax-exempt and their actual activities are not what they described in their application or are not appropriate for their subsection code, can have their tax-exempt status revoked retroactively.

  25. File Source: A one-digit code which follows the Taxpayer Identification Number (TIN). The common values are:

    • Blank - valid SSN or EIN

    • * - invalid SSN on IMF

    • V - valid SSN on BMF

    • W - invalid SSN on BMF

    • D - temporary TIN

    • P - valid IRA SSN

    • X - invalid IRA SSN

    • P - valid EPMF EIN

    • X - invalid EPMF EIN

  26. Filing Requirement Code - (FRC): Identifies the type of return an organization must file.

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

  28. Group Exemption Number - (GEN): A four-digit number issued to a parent and its subordinate chapters under a blanket group ruling.

  29. Group Exemption Roster - (GER): Document 6023 - GER is an alphabetic and number listing of organizations which were issued Group Exemption Numbers. Command Code (CC) EOGEN allows online research of the GER using the GEN number of the group.

  30. Group Return: Form 990 marked "Group Return" or "Consolidated" is a return filed by the Parent Organization for all subordinates electing to be covered under the group return. This return is in addition to the Parent's own return.

  31. Income Code:Used to identify yearly receipts for Exempt Organization (EO) Business Master File (BMF) returns.

  32. Integrated Data Retrieval System – (IDRS):A computer system with the capability to instantaneously retrieve or update stored information. IDRS works with the Master File or organization accounts. The purpose of the system is quick resolution of problems and inquires concerning current and prior taxpayer accounts.

  33. Martinsburg Computing Center – (MCC): The Martinsburg Computing Center is located in Martinsburg, WV, where business and individual transactions are posted to the various Master Files (MFs).

  34. Master File – (MF): A magnetic tape record containing information about business and individual returns and related documents. The Business Master File (BMF) contains records on each entity, divided into two sections, entity section and returns section.

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

  36. Merger: A combination of two or more corporations. One is the successor corporation and the other corporation finals out their return. Do not confuse merger with consolidate (TC 011).

  37. Microfilm: A media to provide photographic records of printed tax data on a reduced scale.

  38. Name Control - (NC): In the case of individuals and most trusts, NC is the first four letters of the taxpayer's last name; in the case of corporations, the first four letters of the business name. The name control is used to check the Master File and ensure the Taxpayer Identification Number (TIN) corresponds with the proper organization.

  39. National Account Profile - (NAP): A national Taxpayer Identification Number (TIN) file of entities on the Individual Master File (IMF), Business Master File (BMF), Employee Plans Master File (EPMF) and IRAF. It is used to validate the Taxpayer Identification Number (TIN) or TIN/Name Control for the Integrated Data Retrieval System (IDRS) input command codes (CCs) and for researching with CC INOLE.

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

  41. Pilot Voucher: An Exempt Organization and Business Master File (BMF) Entity Voucher prepared for processing group exemptions. This information can be accessed via the shared drive onlyy.

  42. Pilot Voucher File – (PVF): A file of all pilot vouchers kept in Group Exemption Number (GEN) order. The pilot vouchers are used in establishing new subordinates of a group ruling.

  43. Prior Year: A tax period which precedes the processing year.

  44. Re-input: Reprocessing the return.

  45. Refile: Sending the return or document back to files to be filed in its original position in the block.

  46. Reject: A return or document which was not acceptable by the campus computer because of incorrect or incomplete information.

  47. Return: A legal form or written evidence used by the organization to record tax information.

  48. Revocation:

    • Tax exempt organizations who fail to file for three consecutive years will be revoked.

    • Tax exempt organizations may also be revoked due to a review by an agent.

    • A Church-initiated correspondence to revoke the election to be exempt from social security taxes.

  49. Subordinate: Members of a group of exempt organizations controlled by a parent organization.

  50. Subsection Code – (SS): A code designating the type of exemption an organization has received.

  51. Supplemental Group Ruling Information - (SGRI): A letter submitted to IRS each year by the Parent Organization of a Group Ruling detailing any changes to its subordinates.

  52. Tax Module: The part of an organization's account which reflects tax data for each type of tax and tax period.

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

  54. Taxpayer Delinquent Account - (TDA):A tax module where a return was filed, but not fully paid, and is in collection status.

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

  56. Taxpayer Identification Number - (TIN): Either an Employer Identification Number (EIN) or a Social Security Number (SSN).

  57. Transaction Code - (TC): Used to identify transactions being processed and to maintain a history of actions posted to taxpayer accounts on the Master File. A three digit code used to identify actions being taken to an organization account.

  58. Transcript: A copy of entity and tax data from the Master File concerning an organization's account.

  59. Unpostable - UP: An input transaction which attempted to post to the Master File but could not because of inconsistencies with the posted transactions, filing requirements, or the input data.

  60. Unprocessable: A document which is incomplete, illegible, or otherwise unsatisfactory for input.

3.13.12.1.3  (01-01-2015)
CADE2

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

    Note:

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

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

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

    1. Campus Cycle: Thursday – Wednesday

    2. Master File Processing: Friday – Thursday

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

    4. Unpostables: New available Tuesday; Closing Tuesday

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

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

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

    Note:

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

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

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

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

3.13.12.1.4  (01-01-2015)
Transaction Codes

  1. The following is a list of transaction codes (TCs) used by the Entity Control Function.

    TC Description
    000 Establish an account
    001 Resequence an account due to a TIN change (generated transaction)
    002 TIN change failed to resequence (generated transaction)
    003 Duplicate tax modules are not re-sequenced (general transaction)
    004 BMF Partial Merge. This transaction code is shown on IDRS only.
    005 Resequenced account for merge.
    006 Account Resequenced to Master File location
    007 Carrier transaction (generated transaction)
    008 IDRS generated—Complete Merge
    011 EIN change
    012 Reopen entity account
    013 Name change
    014 Address change
    016 Change entity codes
    020 Closes account
    022 Deletes EO section
    023 Reverse the election to lobby
    024 Election to lobby
    026 Delete changed TIN (generated transaction)
    030 Update location codes out-of-campus account
    052 Reversal of TC 053
    053 Form 1128 Accepted
    059 Form 1128 Rejected
    070 Church exemption from social security taxes
    071 Revocation of church exemption from social security taxes
    072 Deletion to TC 070 input in error
    073 Reverses TC 071 input in error by the service
    080 Denies election of exemption from FICA
    081 Reverses TC 080
    150 Return Filed
    474 Delay TDI or Accelerate TDI Issuance
    475 Reverses TC 474 and allows TDI Issuance
    590 Not liable this period
    591 No longer liable
    592 Reverses 59X
    593 Unable to locate
    594 Return previously filed
    599 Return secured

3.13.12.1.5  (01-01-2015)
IDRS Letters and CP Notices

  1. The following is a list of letters which can be used:

    Letter Use Title
    45C SS – 4 EIN Application Requested or Received (Form SS–4)
    86C General Referring Taxpayer Inquiry or Forms to Another Office
    104C Correspondence Address Change Acknowledged
    112C Payment or overpayment Credit Applied; No Record of Return Filed
    131C General Information Insufficient or Incomplete for Processing Inquiry
    135C General Power of Attorney Needed to Furnish Information
    139C General EIN Assigned in Error
    145C Delinquent returns Insufficient Response or No Record
    252C General Name of Business Shown on Return Needs Verification
    282C TDIs Return Not Received, Copy Requested or Received
    309C General Forms, Publications, or Schedules to Taxpayer
    335C FTD FTD Coupons Requested or Issued
    696C General Return Requested for Discontinued Business
    1169C EO Correspondence Exempt Organization Group Ruling
    1224C EO Correspondence Exempt Organization’s Answers to Questions
    1921C Form 8274 Employment Code C, Form 941
    2191C Form SS-16 Certificate of Election Coverage
    2233C EO Correspondence Accounting Period Change Denied
    2314C Form 1128 Application to Adopt, Change or Retain a Tax Year
    2694C EO Correspondence Request for Missing Information
    2695C EO Correspondence Request for Missing Information
    2696C EO Correspondence Miscellaneous Forms Request for Missing Information
    2697C EO Correspondence Form 990-PF Request for Missing Information
    2698C EO Correspondence Form 990 Request for Missing Information
    2699C EO Correspondence Form 990-EZ Request for Missing Information
    3064C General Special Letter
    3710C 527 Pol. Org. Request for Completed Form 8871
    3877C EO Correspondence No Application for Tax-Exempt Status
    3905C Form 5768 Form 5768
    3909C EO Correspondence Application for Tax-Exempt Status Not Approved
    3997C EO Correspondence Form 940 Filing Requirements for Exempt Organizations
    3910C Correspondence/Returns Information Regarding Assignment of EIN for Exempt Organizations
    4588C EO Miscellaneous Request for miscellaneous information.

    Note:

    Please use the hard-coded paragraph (If you have any questions, please call us toll free at 877-829-5500) in lieu of the "fill-in" paragraph in all letters listed above, except 135C and 139C.

    Note:

    If correspondence was issued within the last 60 days for the same issue, do not issue another letter.

    Note:

    Specific letters are mentioned throughout the IRM; however, it is appropriate to use any letter as long as the content addresses the issue.

  2. The following is a list of CP notices which are sent to the taxpayer:

    CP Title
    119 SGRI Notice (replaced the 1582O letter)
    120 Confirmation of Tax Exempt Status Required
    120A Notice of Revocation of Tax Exempt Status (Status 97)
    169 Missing Return
    209 EIN Assigned in Error
    249A Form 8871 Not Filed
    249B Form 8872 Filed Late
    249C Form 8872 Not Filed
    259A Request for Information About Your Form 990 Return - First TDI Notice
    259B Request for Information About Your Form 990-PF Return - First TDI Notice
    259C Request for Information About Your Form 990-PF Return - First TDI Notice (Presumptive Form 990-PF)
    259D Request for Information About Your Form 990-T - First TDI Notice
    259E Request for Information About Your Form 990–N - First TDI Notice
    259F Request for Information About Your Form 5227 - First TDI Notice
    259G Request for Information About Your Form 1120-POL - First TDI Notice
    259H Request for Information About Your Form 990 - Section 527 Organization - First TDI Notice
    425 Your Form 990 is Overdue - Second TDI Notice (Obsolete January 1, 2013)
    426 Your Form 990-PF is Overdue - Second TDI Notice (Obsolete January 1, 2013)
    427 Your Form 990-PF is Overdue - Second TDI Notice (Presumptive Form 990-PF) (Obsolete January 1, 2013)
    428 Your Form 990-T is Overdue - Second TDI Notice (Obsolete January 1, 2013)
    429 Your Form 5227 is Overdue - Second TDI Notice (Obsolete January 1, 2013)
    430 Your Form 1120-POL is Overdue - Second TDI Notice (Obsolete January 1, 2013)
    431 Your Form 990 (Section 527 Political Org) is Overdue - Second TDI Notice (Obsolete January 1, 2013)
    575 Notice of New Employer Identification Number Assigned from Form SS-4 or TeleFax
    576 Notice of New Employer Identification Number Assigned from Return or SGRI
    577 Notice of New Employer Identification Number Assigned from a Change in Organization Requiring a New EIN
  3. The following list of CP notices are for internal use:

    CP Title
    172 Follow-up Action on an Entity Established as an Exempt Organization
    192 Employment Code Exempts FICA/FUTA Filing
    200 TIN Change - Inactive Account
    201 TIN Change - Name Control Mismatch
    202 EI Number Change - Filing Requirement Mismatch
    206 Notice of No Merger - TDA Module

3.13.12.1.6  (01-01-2015)
National Service Level Agreements (SLAs)

  1. National Service Level Agreements (SLAs) were established between Operating Divisions. IRM 3.13.12 contains specifics regarding SLAs which pertain to activities performed by use of this IRM.

3.13.12.1.6.1  (01-01-2015)
Taxpayer Advocate Service (TAS)

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

  2. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer if it is needed to support the requested relief or required by the IRM.

  3. A referral to a TAS office is not necessary even if TAS case criteria is met if the IRS employee can resolve a taxpayer's inquiry or provide the relief requested, as outlined in IRM 13.1.7.4, Same Day Resolution.

    Note:

    It is important all IRS employees handle potential TAS cases with the taxpayer's best interest in mind. The definition of "same day resolution" is within 24 hours. However, although you cannot completely resolve the issue within 24 hours, if you have taken steps within 24 hours to resolve the taxpayer's issue, these cases also meet the definition of "same day." Do not refer these cases to TAS unless the taxpayer asks to be transferred to TAS and the case meets TAS criteria. When you refer cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance, and application for Taxpayer Assistance Order and forward to TAS.

    Refer also to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information. The NTA toll-free number, 877–777–4778 or TTY/TDD 800–829–4059, should be provided to the taxpayer and the taxpayer should be advised TAS is available if the taxpayer is not satisfied with the service he or she received.

  4. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage & Investment (W&I) Division, Small Business & Self-Employed (SB/SE) Division, Tax Exempt Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals and Large Business & International (LB&I) Division that outline the procedures and responsibilities for the processing of TAS casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs). The SLAs are located at http://tas.web.irs.gov under the heading "Policy/Procedures/Guidance" .

  5. TAS uses the Operations Assistance Request (OAR) process when either the statutory or delegated authority to complete a case transaction rests outside of TAS. TAS utilizes Form 12412, Operations Assistance Request, to initiate the OAR process.

  6. In preparation for a case referral, the TAS employee is responsible for preparing Form 12412, Operations Assistance Request, securing all necessary supporting documentation, identifying cases which require expedite processing (requests for expedite processing will be made on a case-by-case basis) and forwarding Form 12412 and documentation to the business unit liaison.

  7. The Operating Divisions and Functions are responsible for assigning a liaison in each office or Campus where a Taxpayer Advocate is located and acknowledging receipt of the case within one workday for cases requiring expedite processing or within three workdays for all other cases. The Operating Division and Functions will provide TAS with the name and telephone number of the group manager or employee assigned to the case and determine a reasonable time frame for case resolution. Upon closing the OAR, the employee will complete Section VI of Form 12412 and return it to the TAS employee assigned to the case.

  8. For more detailed information about the OAR process, please refer to IRM 13, Taxpayer Advocate Service .

3.13.12.2  (01-01-2015)
Processing Procedures

  1. Observe the following basic procedures for all work processed in Entity Control:

    1. Batch all work with appropriate local form.

    2. Make all edit markings and Entity Control action trails in purple pen or pencil. This color indicates EO Entity has reviewed the document.

    3. Make corrections to the name, address, subsection, or TIN fields directly on the return. In addition, edit all transaction codes, letters sent, and employee stamp on the left side of the return. Attach a Form 4227 or Form 13271 when necessary.

    4. Perfect the entity for processing: underline the name control per exception, correct the name (as needed per research of the Secretary of State’s office via the internet), EIN, name control, address, Fiscal Year Month (FYM) or tax period, Filing Requirement Codes (FRCs) etc. if needed, and annotate your actions in the lower left corner of the document.

    5. Always utilize a CC INOLE on an EIN before taking any action.

  2. If an organization sends in an original document (not a return) with their correspondence, prepare a Form 3699, Return of Documents to Taxpayer, and return the item to the organization.

  3. Check all returns to determine if the return has all ready posted. If an organization sends in an original return, the first page of the return or a copy of a return with their correspondence and if the same return has already posted for the tax period, "X" out of the return and send the return to Files to be associated with the posted return.

  4. When a Form 990 group return is submitted and box H(b) is submitted a list of subordinates should be attached. Entity will input a TC 590/014 for all subordinates on the list. Once the TC 590/014s are complete, stamp the left side of the return indicating the 590/014 input.

  5. If the return has not been stamped by the Imaging Unit, check to see if the return has posted, if not route the return to Imaging after completing all entity actions including TC 590/014 for subordinates of a group return. If the return was previously stamped by Imaging, route the return for processing. If the return has already posted, X out the return and send the return to Files to be associated with the posted return. Do no send to Imaging or to be processed.

3.13.12.2.1  (01-01-2015)
Processing Time Frames and Batching Requirements

  1. Incoming mail and cases are either delivered to the EO Entity Clerical Support area or are picked up by an EO Entity designee from the appropriate areas on, at least, a daily basis.

  2. All time frames start from local received date unless otherwise specified. The turnover time frames are as follows:

    • Returns from Receipt and Control is five (5) days from the IRS received date.

    • Returns from all other functions is five (5) days from receipt in the Entity function.

    • Expedite cases are two (2) days from receipt.

  3. Basic sorting categories with the working time frames and batch sizes are as follows:

    BBTS Category Required Time Frame Work Type Suggested Batch Size Acceptable Overaged %
    SS – 4 5 Form SS – 4 25 5
    Returns 5 BMF/EO 25 20
    EO Extensions 5 Form 8868 25 20
    Rejects 10 Error Correction 25 20
    1128 30 Form 1128 25 20
    Corr. 30 Correspondence ( pilot vouchers) 25 20
    EO Undeliverables 30 Undeliverable notices, undeliverable SGRI's 25 20
    SGRI 60 SGRI 20 20
    EO TDI 30 EO TDI 20 20
    All Other 30 Address Changes, CPs, 59X Transcripts, Form 2363 Changes 25 or less 20
    REV EMP C 45 REV EMP C Transcripts 25 or less 20
    Private Activity Bonds 30 Private Activity Bonds 25 or less 20
    527 Political Organizations 2 Forms 8453X/8872 25 or less 5
    Special Projects 30 Special Projects 25 20
  4. The campuses may expand the basic categories. In this case, base the batch size of each category on batch sizing theory.

  5. If, in sorting the mail, an item belongs in another category, sort as appropriate.

  6. The sorter must have a better than average knowledge of Taxpayer Advocate cases. If the item meets prescribed Taxpayer Advocate criteria, do not sort as previously instructed. Instead, refer these items to the Manager or designee for expedite handling. See IRM 13.1.7 for TAS case criteria.

  7. Base batch sizes on a theory of volume. The largest volumes received for BMF Entity are Forms SS - 4; by comparison, other case volumes are minimal. Small batches of SS-4 cases allow a better distribution of the work within Entity Control. Also, based on the fact all entity cases are to be worked within a time frame based on IRS received date, batch all work by the end of each day or whatever time the campus designates as end of day. Therefore, work batched late in the day most likely will not meet maximum batch size. In addition, other circumstances may dictate batch sizes be smaller than prescribed.

  8. Although not required, combine partially worked batches of like cases and same date in order to keep the work flowing and reduce inventories. An example is, an examiner has a batch of 100 Forms SS - 4 with 25 completed cases and a batch of 100 Forms SS–4 with 75 completed cases. Both batches have the same received date. Combine the 25 and 75 completed items and release as one batch leaving the examiner with one unworked batch of 100 Forms SS - 4.

  9. 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.

  10. There are certain types of cases which are generally not delivered to EO Entity by mail. Instead, they are hand-carried to the Manager or a designee. It is the Manager's responsibility to batch these cases with the appropriate working time frames.

  11. The point of count is a step in the process when work is counted, released, completed and/or resolved. A document, module, transcript etc., is counted as one. Refer to IRM 25.8.1, OFP codes Overview. For example; consolidations should be counted once under the specific category of the document being worked and once for each additional employer identification number being consolidated excluding the original number.

3.13.12.2.2  (01-01-2015)
Re-batching Work

  1. If, during a given week, work was batched under an incorrect category, re-batch the work to the correct category, but only during the initial week.

  2. If work is batched under a given category and it is necessary to suspend any of the items in the batch or the entire batch, do not move the batch or work to a category with a longer aging criteria. It is recognized cases cannot always be worked within the given time frame and will result in aged cases; however, by aging the cases, the yearly receipts will not be unnecessarily inflated.

3.13.12.2.3  (01-01-2015)
Section 3705(a), IRS Employee Contacts

  1. Background

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

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

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

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

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

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

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

      Note:

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

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

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

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

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

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

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

    Note:

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

3.13.12.2.4  (01-01-2015)
Quality Analysis

  1. The EO Entity Manager, Lead or tax examiner should monitor recurring problems in processing areas. The EO Entity manager will initiate a Quality Analysis (appraisal) when appropriate. The Ogden TEGE Processing Center Program Staff at Mail Stop 1110 must be notified of all quality analysis reviews. The Quality Analysis should include examples and figures showing volumes and percentages. Any information copy will be forwarded to the Chief, Planning and Analysis Staff.

  2. The Quality Review tax examiner is assigned the following:

    • To review the area responsible for the error.

    • To respond to their Manager within five (5) workdays with recommended corrective action.

    • To follow-up on significant problems to assure corrective actions were taken.

  3. All EO entity work needs to be submitted timely to Quality Review to ensure the Quality Review tax examiner can review the work in a timely manner. See IRM 21.3.8 and IRM 3.30.28 for further information.

  4. Any instructions written at the service center (e.g., desk procedures) to clarify IRM 3.13.12, EO Account Numbers, may be implemented once the instructions are approved by the Document Perfection Section Chief and the Ogden TEGE Processing Center Program Staff at Mail Stop 1110.

3.13.12.3  (01-01-2015)
Employer Identification Numbers (EIN)

  1. For instructions on how to assign an Employer Identification Number (EIN), see IRM 21.7.13.

3.13.12.4  (01-01-2015)
Research Tools

  1. Before assigning a new EIN, always perform research to determine if there is an EIN already assigned to any organization.

  2. Use the following systems for research:

    • Taxpayer Information File (TIF) Command Code ENMOD

    • National file of name and address Command Code NAMEE/NAMEB

    • BMF with Command Codes INOLE, BMFOL, or BRTVU

    • Tax modules which are on IDRS with Command Code TXMOD

    • Everything available on IDRS with Command Code SUMRY

    • BMF Retention Register on microfilm

    • Alpha and Numeric ZTIF Register for NMF EINs on microfiche

3.13.12.4.1  (01-01-2015)
Group Exemption Roster - CC EOGEN

  1. This listing is numeric by GEN (Group Exemption Number) showing EIN and parent name. It also has an alpha listing with the following information:

    • Name of organization—first 50 characters as it appears on BMF

    • GEN - group exemption number

    • EIN - employer identification number

    • SS - subsection number

    • TF - type of foundation

    • CL - classification code

    • RD - ruling date

    • ST - status code

    • FF - file folder number

    • AC - activity code

    • DT - deductibility code and year

    • City and state where parent organization is located

  2. The data for this listing is extracted twice a year and is printed as Document 6023.

  3. Command Code (CC) EOGEN can do the following:

    • Find a parent organization using CC EOGENP.

    • Provide a list of subordinate organizations for the parent organization by using CC EOGENS. This list is limited to 30 pages with 20 subordinates per page.

    • Narrow the search for subordinates using the state abbreviation or "." for foreign addresses. This is especially helpful when researching large organizations such as Little League, Lions Club International, etc.

  4. Command Code (CC) EOGEN cannot do the following:

    • Research by EIN. If you know the EIN but not the GEN, research CC BMFOL, definer O to get the GEN, then research CC EOGEN.

    • Provide full entity information for subordinates. It provides a starting point for further research.

  5. Command code EOGEN with definer code "P" will generate BMFOLO for the parent's EIN.

  6. Command code EOGEN with definer code "S" will generate a list of the subordinates for the GEN.

  7. For further information on the proper format and use of CC EOGEN, see IRM 2.3.

3.13.12.4.2  (01-01-2015)
Name Search Facility

  1. The Name Search Facility (NSF) provides national centralized name search capability which replaces the Key Index File (KIF).

  2. Access NSF using CC NAMES for SSN searches and CC NAMEE/NAMEB for EIN searches. Command Codes NAMES and NAMEB allow you to query a national file of name and address data at the Martinsburg Computing Center (MCC), using a taxpayer name and address to locate a Social Security Number (SSN) or Employer Identification Number (EIN).

  3. The NSF will match the data you entered to data in the files and will return the SSNs or EINs of possible matches. The more information you enter, the narrower the search and the better the possibility for a match.

  4. You can query using either the primary filer name or a secondary filer name. For an EIN, both primary name and "Doing-Business-As" (DBA) name will be searched. The NAMES and NAMEE Command Codes will adjust for some spelling errors and will perform phonetic matches.

  5. Two command codes, FINDS (SSN/IRSN/ITIN) and FINDE (EIN), were added to the NSF. They use the input TIN to access the NSF data base, and return the name(s), address(es), etc. for the TIN. Users are required to enter the command code name, the definer, and the 9-digit TIN (with no hyphens), including leading zeros, if present. The domestic search requires the definer D and the international search requires the definer I. If users do not enter a definer, they receive an error message. The FINDS/FINDE results are sorted first by primary TIN (when the search was for the secondary TIN), then by activity cycle, and then by name. The activity cycle is displayed in descending order, with the most current data first.

  6. Refer to IRM 2.3, Terminal Response , for more information.

3.13.12.4.3  (01-01-2015)
TE/GE (EP/EO) Determination System (EDS)

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

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

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

  4. Use the EDS Instructional Job Aid to operate the menu-driven system.

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

    Open Status Codes Definition
    31 In Review
    32 Returned on Review Memo
    33 Returned to Quality
    35 30 Day Letter Sent
    37 Group Suspense
    38 Review Suspense
    39 Technical Screening Suspense
    40 Proposed Adverse Determination
    41 Proposed Technical Advice
    50 New Case Establishment
    51 Centralized Unassigned Inventory
    52 Case Assignment (Non Merit)
    53 Manager Returned to Specialist
    54 Transferred to Appeals (Suspense)
    55 Waiting for Closing Approval
    56 Technical Advice Transfer (Suspense)
    57 TEDS Awaiting Closure on EDS
    58 Case in Transit
    60 Open in Technical Screening
    61 Unassigned in Inventory (Merit)
    62 Assigned in Technical Screening
    63 New Case Establishment (TEDS) (Cases established on EDS have an initial status of 50.)
    64 Manager Returned to Specialist (Technical Screening)
    71 Unassigned Inventory
    72 Case Assignment
    73 Manager Returned to Specialist
    74 Awaiting Managerial Review (TEDS)
    75 Group Inventory
    91 Unassigned Inventory (Washington)
  6. The following is a list of Closed Status Codes:

    Closed Status Codes Definition
    01 Approved
    02 Disapproved
    03 Returned Incomplete
    04 Withdrawn by T/P
    06 Merit closure No Contact
    08 Refusal to Rule
    09 Merit Closure Intermediate Processing
    11 Failure to Establish
    12 Other
    30 Correction Disposal
  7. The following is a list of Type of Request Codes:

    Type of Request Codes Definition
    I Initial
    A Amendment
    T Termination of Exempt Status ( Termination cases are no longer established by Determinations)
    P Termination of Private foundation Status
    F Private Foundation Follow-up
    R Returned, Post Review

3.13.12.5  (01-01-2015)
EO/BMF

  1. There are two parts to the EO/BMF entity module, the BMF portion and the EO section.

3.13.12.5.1  (01-01-2015)
EO/BMF Entity Module

  1. The BMF portion of the EO/BMF entity module is created by a TC 000, Doc. Code 04, 63, 80 or 81. It may contain the following information:

    • Employer identification number (EIN)

    • Name control (N/C) or check digit (C/D)

    • Establishment date

    • Employment code (EC)

    • Fiscal year/month (FYM)

    • Filing requirement code (FRC)

    • Primary location code (PLC)

    and the following entity identifying data:

    • Primary name

    • Primary continuation name

    • Sort name

    • Care of name

    • Location address

    • Foreign address

    • Mailing address

  2. The BMF entity module, with its fields defined below, can be changed by IDRS Command Codes ENREQ/BNCHG or EOREQ/EOCHG.

    1. EIN is the Employer identification number assigned to each organization by Entity Control. To change the number, use a TC 011, Document Code 63. TC 011 changes are restricted for input by campuses only.

    2. N/C is created by the coding of the organization's name. To change the name control, use CCs EOREQ/EOCHG with Document code 80, TC 013 or ENREQ/BNCHG with Document Code 63, TC 013.

    3. C/D is the check digit created from the EIN when the account posts to the BMF. It cannot be changed.

    4. Establishment Date is the date the organization started business or was established on the BMF. To create it, use TC 000. It cannot be changed.

    5. EC is the employment code which identifies the type of employment taxes or FUTA (Form 940) taxes an organization is required to pay. To change this code, use Document Code 63 or 80.

    6. FYM is the fiscal year/month created either when the organization is established on the BMF or when the first return is posted. To change it, use Document Code 63 or 80. See IRM 3.13.12.6.30 for specific instructions.

    7. FRC, the filing requirement code, for exempt organizations can be for Forms 941/944, 720, 940, 1120, or 1041 under certain conditions. These FRCs can be changed with a Document Code 63 or 80. The positive EO FRCs for Forms 990, 990-EZ, 990-T, 990-PF and 5227 can only be changed with a Document Code 80. Delete all FRCs with CC BNCHG Doc. Code 63.

      Exception:

      Delete the FRC for Form 1041-A with a TC 591.

    8. The Universal Location Code (ULC) is the area office codes based on the address where the organization receives mail. The BOD code will be used for routing work load to the appropriate campus; in other words, all accounts with a TE BOD code will be processed by the Ogden Submission Processing Center.

    9. SSN Sole proprietor cross reference SSN - The business owner's SSN added to identify ownership of a BMF account. The SSN must be removed if the account becomes tax exempt. Failure to remove the SSN will cause an unpostable when adding a subsection.

  3. The Entity Identifying Data are defined below:

    1. Create the primary name and primary continuation name by inputting a TC 000. To change them, use a TC 013, Document Code 80, CCs EOREQ/EOCHG or Document Code 63, CCs ENREQ/BNCHG.

    2. Sort name is used to identify the organization another way. For organizations with a group ruling, the sort name identifies the chapter, union, etc.

    3. Care of name is used if the taxpayer identifies a person or a place, e.g., Merchants Bank-Trust, for mailing.

    4. Location street address is the street address where the organization is located and is different from the mailing address. It can be a foreign address.

    5. Location City/State/ZIP is the city or country where the organization is located.

    6. Foreign address is used when the organization has a foreign mailing address.

    7. Mailing street address is where IRS will mail notices and returns. If it's a foreign address, it will contain the city of the foreign country and ZIP code.

    8. Mailing City/State/ZIP is where IRS will mail notices and returns. If it's a foreign address, the city will be the country, and the state and ZIP will be a blank.

3.13.12.5.2  (01-01-2015)
EO Section of the BMF

  1. Create the EO section of the EO/BMF entity module for a new entity by a TC 000, Document Code 80 or 81. If the entity is already on the BMF, create the EO section by Transaction Code 016 with a Document Code 80 or 81.

  2. The EO section information can only be changed by CCs EOREQ/EOCHG. The EO section contains the following information:

    1. Subsection (SS), current and prior, identifies the IRC under which the organization is exempt. It also determines the type of return the organization will file. The current SS will be shown on the CC INOLE, CC ENMOD, and CC BMFOLO. The SS is assigned when the organization's request for exemption is approved. To make a change to the subsection, it must be approved by Cincinnati and updated from EDS or a determination letter. New applications processed as of July 2007 will also be updated in TEDS. If an erroneous subsection is on the BMF with Status 06, 10, 11, 40 or 41, delete it with the input of 99.

    2. Classification code (CL) identifies the type of organization or the purpose for which it was established. One to four different codes may be present. The CL will be shown on CC INOLE, CC ENMOD and CC BMFOLO. The CL can be changed only by Cincinnati.

    3. Status code and date (ST), current and multiple prior status, indicates the status of the organization. The code identifies whether or not the organization was granted an exemption or, it was applied for, revoked or terminated. The ST is normally established by Cincinnati when the exemption is granted, denied or revoked. The campus can establish ST Codes 06, 07, 10, 11, 12, 20, 36, 40 and members of a group ruling. Also, the campus can re-establish Status 01 when it is on EDS or from a determination letter, or re-establish a good status after ST 20, 21, 26, 28, or 29 has posted. The current ST is shown with the status date (YYYYMM) on CCs BMFOLO, INOLE, and ENMOD.

    4. Affiliation code (AF) indicates an individual ruling or group ruling. The AF is shown on the CC INOLE, CC ENMOD and CC BMFOLO. It normally is not changed unless the entity is changing from a group to an individual ruling, or from an individual to a group ruling.

    5. Ruling date (RD) is the date the exemption was granted or ruled on. The RD is shown on CC ENMOD, CC INOLE, and CC BMFOLO. This date is normally not changed except by Cincinnati.

    6. Group exemption number (NG) or GEN is the number Cincinnati assigns when the organization is granted a group exemption. This number is used to identify all the organizations (subordinates) which are a part of the group. The GEN is shown on CC INOLE, CC ENMOD, and CC BMFOLO. It can be changed, but CAUTION must be used.

    7. Foundation code (TF) is the code given to all organizations exempt under IRC 501(c)(3). This code identifies the type of foundation. The TF is shown on CC INOLE, CC ENMOD and CC BMFOLO. To change the foundation code requires approval from Cincinnati and the campus can only update it from TEDS, EDS or a determination letter or Form 990-PF. If a foundation code is on the BMF but the subsection changed to one which does not require a foundation code, delete it with the input of a 99.

    8. Deductibility code and year (DY) indicates whether contributions to the organization are deductible from income. The code is determined by Cincinnati when the exemption is granted and can be changed only by Cincinnati.

    9. Activity code (AC) identifies the principal activity of the organization. This code is normally changed by Cincinnati.

      Note:

      Activity codes may still be present on accounts, however, they are no longer assigned or actively used.

    10. National Taxonomy of Exempt Entities Code (NTEE) is a system of classifying the purposes, activities and fields of interest of non-profit organizations. The "NTEE system" will eventually replace the present activity codes. This code is assigned by and normally changed by Cincinnati.

      Note:

      NTEE codes may still be present on accounts, however, they are no longer assigned or actively used.

    11. North American Industry Classification System (NAICS) code is a new 6-digit PBA code which will replace the old 4 digit PBA code. The EO activity code is actually the PBA code. Both the activity code and the NAICS code will be maintained on the EO section.

    12. Type of organization (TO) indicates whether the organization is a trust, corporation or an unicorporated association. The TO is shown on CC INOLE, CC ENMOD, and CC BMFOLO. The code is assigned by Cincinnati when the exemption is granted and is normally changed by them. The campus will input the TO on all group rulings.

    13. File folder number (FF) identifies the administrative case file folder number located in Cincinnati. The FFN is assigned by Cincinnati when an application for exemption is received. The FFN will normally not be changed. The FFN is shown on CC BMFOLO.

    14. Pension plan (PP) indicates whether or not the organization has a pension plan. It is assigned by Cincinnati when the exemption is granted and is normally changed by Cincinnati.

    15. Cumulative list indicator (CU) identifies an organization which is included in the cumulative list (Pub. 78). It is input by the National Office or Cincinnati and changed by them.

    16. TEP case code (TEP) is input if the organization is identified as a "large case."

    17. Posting delay code (PDC) may be input (Range 1-6) with the transaction to be "cycled" when multiple transactions are required to adjust an account.

      Note:

      For example, in a complex adjustment with seven transactions where two must post three cycles after the first four, and the last must post a cycle after second two, input a Posting Delay Code 3 with the fifth and sixth transactions, and four with the last transaction. Posting of these transactions to the MCC MF will be deferred until the indicated number of posting cycles has passed. All transactions will be input at the same IDRS terminal session. Cycled transactions will be held on the MCC re-sequencing transaction files until the required staggered sequence among the transactions. Posting delay capability is provided for the following IDRS entity change command codes: CCs ENREQ/BNCHG and EOREQ/EOCHG (Doc. Codes 50, 53, 63, 80 and 81).

3.13.12.6  (01-01-2015)
Entity Changes for an EO/BMF Account

  1. Knowledge of several command codes will be necessary for the successful input of entity information for Exempt Organizations. IRM 3.13.12 .6 supplements IRM 2.4, IDRS Terminal Input. The input of the EO Entity change requires the following succession of Command Codes: ENMOD, and then EOREQ/EOCHG.

    • CC ENMOD shows whether the account is on the BTIF and stores data required by CC EOREQ.

    • CC EOREQ creates an input screen format for CC EOCHG. If the account is not on the BTIF, CC EOREQ will also build a "dummy" account and an entity case control on the TIF.

    • CC EOCHG puts a "pending" record of the transaction on the TIF and creates a record used for quality review, for production of a transaction for the Business Master File and for printing an IDRS Transaction Record (Form 5147).

  2. Any CC EOCHG input will create an EO section on the BMF.

    Note:

    Be sure it is an EO account before using CC EOCHG.

  3. When inputting EOCHG, be alert to the unpostables which will be created when the BMF attempts to update or create an EO section. See IRM 3.12.278 for EO Unpostable Resolution procedures. The following unpostable codes are applicable to EO entity changes with a brief description:

    • 302 - Input TC 000 and the EIN is already on the BMF.

    • 303 - Name control input does not match name control on BMF.

    • 307 - Fiscal month discrepancy with the BMF.

    • 308 - Filing requirement discrepancy.

    • 313 - No related transaction.

    • 329 - Inconsistent filing requirements.

    • 341 - Invalid TIN.

    • 343 - Input attempts to update FRC and it does not agree with employment code or vice versa.

    • 358 - Incompatible EO status with BMF status.

    • 359 - The input of TC 020 or TC 022 and the module contains conditions which indicate the account should not be deleted.

    • 366 - The input transaction attempts to establish a tax module and there is no Exempt Organization subsection present.

    • 369 - The input of Employment Code W attempting to update the BMF and it does not agree with the EO section on the BMF.

    • 370 - The new GEN does not match a GEN on the GEN file, or the parent has not been established on the GEN file or is already on the GEN file.

    • 371 - The From GEN does not match the GEN on the BMF.

    • 372 - The BMF and the GEN file are not in agreement. This generates when a TC 590 Closing Code 014 attempts to create a TC 590 for all the subordinates on the GEN file and a discrepancy exists.

    • 373 - The input is ST 28 or 29 and the GEN does not match the GEN on the BMF, or the BMF Affiliation Code is not 6, 7, 8, or 9, or the BMF Entity Status is not 01, 02, 20 or 21.

    • 379 - TC 012 and TC 013 attempts to post and the BMF does not have an EO section.

    • 382 - EO TC containing a subsection and no EO section on BMF.

    • 429 - FRC input does not agree with FRC on the BMF.

    • 495 - A transaction attempting to update the first primary name line and the sum of the character count does not equal the actual length of the primary name line.

3.13.12.6.1  (01-01-2015)
EO Transaction Codes

  1. EO Transaction Codes include TC 000, 012, 013, 014, 016, 020, and 022.

  2. The following format fields appear on the EOCHG screen:

    • EOCHG

    • EIN

    • NM-CTRL - Name Control

    • DOC-CD - Document Code

    • TC - Transaction Code

    • TRANS-DEFINER-CD - Transaction Definer Code

    • PSTNG-DLAY-CD - Posting Delay Code

    • NEW-NAME-CTRL - New Name Control

    • PRIMARY-NAME - Primary Name - two available lines

    • SORT-NAME - Sort Name or DBA

    • CARE-OF-NAME - Care-of Name

    • FOREIGN-STREET - Foreign street address

    • MAIL-STREET-OR FOREIGN-CITY/ZIP- Mailing Street Address or Foreign Country

    • MAIL-CITY/STATE/ZIP-OR-FOREIGN COUNTRY - Mailing City, State, Zip or Foreign Country

    • LOCATION-STREET-ADDRESS - Location Street Address

    • LOCATION-CITY/STATE/ZIP - Location City, State, Zip

    • SUBSECT-CD - Subsection Code

    • FNDTION-CD - Foundation Code

    • CLSF-CD - Classification Code

    • AFFLTIN-CD - Affiliation Code

    • TYPE-ORG - Type of Organization

    • STS-CD/DT - Status Code/Year/Month

    • RULNG-DT - Ruling Date

    • ACTY-CD - Activity Code

    • CONTRIB-DED-CD/YR - Contribution Deductibility Code Year

    • FRM-GRP-EXEMP-NUM - From Group Exemption Number

    • NEW-GRP-EXEMP-NUM - New Group Exemption Number

    • FFN- File Folder Number

    • PENSION-PLN-CD - Pension Plan Code

    • ADVNC-RULNG-DT - Advance Ruling Date

    • TEP-CASE-CD - TEP Case Code

    • CUM-LST-IND - Cumulative List Indicator

    • EMPLMNT-CD - Employment Code

    • FYM - Fiscal Year Month

    • NTEE - National Taxonomy of Exempt Entities Code

    • NAICS-CD - North American Industry Classification System Code

    • FILING-REQUIREMENTS - Filing Requirements

    • REMARKS - Remarks

  3. The information for some of the fields will be taken from the pilot voucher, EDS, correspondence or the returns.

  4. The following tables show a quick reference to the valid fields with Document and Transaction Codes.

    DOCUMENT CODE 80 VALID FIELDS
    TITLE TC000 TC012 TC013 TC014 TC016
    Name Control X X X X X
    EIN X X X X X
    Transaction Code X X X X X
    Employment Code X       X
    Fiscal Year Month X X     X
    From GEN         X
    Filing Requirement X X     X
    Definer Code   X     X
    Subsection Code X X     X
    Classification Code X X     X
    Status Code/Date X X     X
    Affiliation Code X       X
    Ruling Date X       X
    New GEN X       X
    Type of Foundation X X     X
    Deductibility Code/Year X       X
    Activity Code X       X
    Type of Organization X       X
    District of Location X     X X
    File Folder Number X       X
    Pension Plan X       X
    Advance Ruling Date         X
    Cumulative List Indicator         X
    Large Case Code         X
    Organization Name X   X    
    New Name Control X   X    
    Sort Name X   X X X
    Care of Name X   X X X
    Foreign Street Address X   X X X
    Mailing Street or Foreign City/ZIP X   X X  
    Mailing City/State/ZIP or Foreign Country X   X X  
    Location Street Address X   X X X
    Location City/State/ZIP X   X X X
    National Taxonomy of Exempt Entities X       X
    Remarks X X X X X
    DOCUMENT CODE 81 VALID FIELDS
    TITLE TC016
    Name Control X
    EIN X
    Transaction Code X
    Employment Code  
    Fiscal Year Month X
    From GEN X
    Filing Requirement X
    Definer Code X
    Subsection Code X
    Classification Code X
    Status Code/Date X
    Affiliation Code X
    Ruling Date X
    New GEN  
    Type of Foundation X
    Deductibility Code/Year X
    Activity Code X
    Type of Organization X
    District of Location  
    File Folder Number X
    Pension Plan X
    Advance Ruling Date  
    Cumulative List Indicator  
    Large Case Code  
    Organization Name  
    New Name Control  
    Sort Name  
    Care of Name  
    Foreign Street Address  
    Mailing Street or Foreign City/ZIP  
    Mailing City/State/ZIP or Foreign Country  
    Location Street Address  
    Location City/State/ZIP  
    National Taxonomy of Exempt Entities X
    Remarks X

3.13.12.6.2  (01-01-2015)
TC 000

  1. Transaction Code 000 establishes an account on the BMF for the first time. These accounts may be entered in one of two ways:

    1. CC ENREQ/CC BNCHG, Doc. Code 63 is used when no EO section needs to be established.

    2. CC EOREQ/CC EOCHG, Doc. Code 80 is used when an EO section needs to be established.

  2. If no EO section needs to established:

    1. CC ENREQ is used to request a CC BNCHG format for input of an entity change transaction. It must be preceded by a CC ENMOD. If the TIN is not located on the Master File, an intend indicator of 1 must be input. The intend indicator will generate a TC 000.

    2. The required fields for CC BNCHG TC 000 transactions are Doc. Code 63, name control, primary name, city, state, ZIP and filing requirements.

  3. If an EO section needs to be established:

    1. CC EOREQ is used to request an CC EOCHG format for input of an entity and/or EO section change transaction. If the TIN is not located on Master File, an intend indicator of 1 must be input. The intend indicator will generate a TC 000.

    2. The required fields for CC EOCHG TC 000 transactions are Doc. Code 80, primary name, EO status code and date, and at least one of the following filing requirements: 990-T, 5227, 990 or 990-EZ, 990-PF or NR.

  4. Any transaction which needs to be cycled or held for later input can be cycled up to 6 cycles using a posting delay code. See IRM 2.4, IDRS Terminal Input.

  5. When inputting a TC 000 with CC EOREQ/EOCHG, Document Code 80, the following fields are required:

    • Primary name

    • New name control

    • Mailing address (local)

    • Mailing, city, state and ZIP

    • Status code and date

    • One of the following FRs: 990, 990-PF, 990-T, 5227, NR (Not Required)

    Note:

    Always input a Form 990 or Form 990-PF FR if Form 990-T is a FR. If one of the FRCs (other than NR) is input, input the subsection, foundation code (if applicable), classification code, and fiscal year month.

3.13.12.6.2.1  (01-01-2015)
TC 012

  1. Transaction Code 012 reopens an account. Input this TC with either CCs ENREQ/BNCHG or CCs EOREQ/EOCHG.

  2. TC 012 reopens an inactive account where a consolidation was attempted but cannot be consolidated because duplicate modules exist and cannot be deleted with TC 020 or 022. Filing requirements of such accounts are all 8s. The transaction will not post to the account unless all FRs are changed to either a significant code or zero.

  3. When inputting a TC 012 with CC EOREQ/EOCHG, Document Code 80 only, the following fields are required:

    • One of the following Status Codes and Date: 01, 06, 07, 10, 11, 12, 18, 19, 40 or 42

    • Fiscal year month

    • Definer Code A

    • One of the following FRs: 990, 990-PF, 990-T, 5227

      Note:

      A Form 990 or Form 990-PF FR must be input if 990-T is a FR.

    • Subsection, foundation code (if applicable), and classification code

    • Remarks

3.13.12.6.2.2  (01-01-2015)
TC 013

  1. Transaction Code 013 indicates the primary name line was changed. This TC can be input using either CCs ENREQ/BNCHG or CCs EOREQ/EOCHG.

    1. Always use the Master File name control, not a check digit or dummy name control when changing the name lines.

    2. If necessary, change the name on the P Tape also.

    3. See IRM 3.13.12.6.9 for specific procedures to input a corporation name.

    4. See IRM 3.13.12.6.10 for specific procedures to input a trust name.

    5. See IRM 3.13.12.6.11 for specific procedures to input the name of a non-profit organization.

  2. Any request to change a name on an Exempt Organization account must be accompanied by appropriate documentation in order to be considered.

    Caution:

    See IRM 3.13.12.12.12.4.1 before changing a subordinate's name.

    1. If the type of organization is a 1 on EDS or on BMFOLO, the organization is incorporated with the state. A state-approved amendment to the articles of incorporation which indicates both the old and new name of the organization along with proof of filing with the state are required.

    2. If the type of organization is a 2 on EDS or on BMFOLO, the organization is a trust. An amendment to the trust agreement is required along with the trustee(s) signature.

    3. If the type of organization is a 5 on EDS or on BMFOLO, the organization is an unincorporated association. An amendment to the articles of association, constitution, by-laws or other organizing document is required along with signatures of at least two officers/members.

    If Then
    Accompanying information is present, or can be verified on the Secretary of State web sites Input a TC 013 with Doc. Code 63. Send a 252 C Letter to the organization acknowledging the change to its name.
    Accompanying information is NOT present, Inform the taxpayer with Letter 1224C the name change can not be made, unless one of the items listed above is present.
  3. Name changes which do not require documentation are:

    • Misspelled names

    • Name control mismatch

    • Accounts in EO Status 06, 11, 12, 36, 40, or 42

    • Organization is a church.

    • Organization is a credit union.

  4. When inputting a TC 013 with CC EOREQ/EOCHG, Document Code 80 only, the following fields are required:

    • Primary name

    • New name control

    • Remarks

  5. When inputting a TC 013 with CC ENREQ/BNCHG, Document Code 63 only, the following fields are required:

    • Primary name

    • New name control

    • Remarks

3.13.12.6.2.3  (01-01-2015)
TC 014

  1. Transaction Code 014 indicates the account address, i.e., domestic street address, mailing city, state and ZIP, has changed. This TC can be input using either CCs ENREQ/BNCHG or EOREQ/EOCHG. Address changes may be necessary when working unprocessable returns, EO correspondence, EO TDIs, and EO unpostables.

    Caution:

    Always verify the address on a return. If the address on the return is different from the address on Master File, always input a TC 014 to change the address even if the change is minor; e.g., the apartment number.

  2. Use the following guidelines for inputting addresses:

    1. If a foreign street address in input, input the foreign city and foreign country in the mailing street address and mailing city, state and ZIP line.

    2. A foreign postal code may be input.

    3. If a foreign country is input, input ",." in the state field.

    4. If a foreign city or postal code is input, input the foreign street address.

    5. If a domestic mailing city, state and ZIP or major city code and ZIP code are input, input the mailing street address.

    6. If a major city code is input, input a mailing ZIP code.

  3. If it can be determined the correspondence was initiated by a third party, research the CAF using CC CFINK.

    1. If a proper authorization is not found, send Letter 135C and destroy the request.

    2. If a proper authorization is found, update the address as requested.

  4. When inputting a TC 014 with CC EOREQ/EOCHG, Document Code 80 only, the following fields are required:

    • Mailing address, city, state and Zip (always input if present)

    • Remarks

  5. When inputting a TC 014 with CC ENREQ/BNCHG, Document Code 63 only, the following fields are required:

    • Primary name

    • New name control

    • Remarks

3.13.12.6.2.4  (01-01-2015)
TC 016

  1. Transaction Code 016 indicates a change to data already on the BMF such as:

    • BMF filing requirements

    • Railroad Retirement Board Numbers

    • Form 8123 code

    • Fiscal year month

    • Employment code

    • EO section

    • Sort name

    • Care of name

    • Location street address

    • Location city, state, and ZIP

  2. This TC can be input using either CCs ENREQ/BNCHG or EOREQ/EOCHG.

  3. Use Document Code 81, Definer Code D, with TC 016, when exemption data for all subordinates under one GEN number is being changed. The input document must contain the From GEN, the parent's EIN, name control, status code and month, ruling year and month and affiliation code. When this TC is used, a transaction, identical to the input TC 016, will be generated for every subordinate on the GEN file for posting to the BMF.

  4. When inputting a TC 016 with CC EOREQ/EOCHG, Document Code 80, the following fields are required:

    • Remarks

    • Definer codes, OR

    One of the following must be present:

    • Deductibility code and year

    • Activity code

    • Type of organization code

    • File folder number

    • Pension plan

    • Advance ruling date

    • Cumulative list

    • TEP case code

    • Sort name

    • In care-of-name

    • Subsection, if input is 99

    • Foundation Code, if input is 99

  5. When inputting a TC 016 with CC EOREQ/EOCHG, Document Code 81, the following fields are required:

    Note:

    A New GEN cannot be input with Doc. Code 81.

    • Remarks

    • From GEN

    • Definer codes, OR

    One of the following fields must be present:

    • Deductibility code and year

    • Activity code

    • File folder number

  6. When adding filing requirements to an account in a good status with TC 016 CC EOREQ/EOCHG, Document Code 80, the following fields are required:

    • Definer Code ABC

    • Subsection code

    • Foundation code (if applicable)

    • Classification code

    • Status code and date

    • Ruling date

    • FYM

    • Filing requirements

    • Remarks

3.13.12.6.2.5  (01-01-2015)
TC 020

  1. Transaction Code 020 deletes an account from the Master File if no modules are present which contain return or credit transactions. Use of this transaction requires your lead's or Manager's approval.

    Note:

    Accounts with modules present will remain on the BMF but all the filing requirements will be changed to 8 to indicate the account is in inactive status.

  2. When inputting a TC 020 with CC ENREQ/BNCHG, Document Code 63, the following fields are required:

    • Transaction Code 020

    • Remarks

3.13.12.6.2.6  (01-01-2015)
TC 022

  1. Transaction Code 022 will delete an EO section. Use this TC when a BMF account has an erroneously established EO section.

    Caution:

    Be very sure when using TC 022 you do not delete a good exemption. Also, if the account shows an open AIMS (TC 420, 424, or 427), or Freeze Codes (-A, E-, -F, J-, -J, N-, O-, P-, -R, -S, T-, -U, -V, W-, -W, X-, -Y, -Z) for any tax module, do not delete the EO section. It will unpost with a UPC 359. Remember once an EO section is deleted, the account reverts back to a regular BMF. DO NOT INPUT TC 022 WITHOUT THE EO MANAGER'S OR LEAD'S APPROVAL except when a TC 022 is input to remove a subordinate from a group ruling to update to either status 36 or 40..

  2. The following are examples of erroneously established EO Sections:

    • A Document Code 80 was used to change an address when a Document Code 63 should be used when no EO section information is present. This condition will result in an Unpostable 379 RC 1.

    • Sometimes organizations use their corporation or similar identifying numbers when applying for an exemption. The exemption is erroneously established on the corporation account (EIN) and subsequently placed in Status 20 to allow the Form 1120 to post.

    • The organization filed a Form 990-T for a 401(a) Trust and the account was erroneously established with EO subsection data. These accounts are often shown in Status 40.

    • Correspondence from the organization states we have erroneously established the account with GEN, exemption data, etc.

  3. Input TC 022 with CCs ENREQ/BNCHG.

    Note:

    A source document is not required when processing a Form 8868 on an account in EO Status 41.

  4. Do not use TC 022 with accounts in EO Entity Status of 01-26, 28, 29 and 70-72, unless it is obvious the EO section was erroneously established or the group was dissolved during the SGRI process.

  5. When an EO/BMF account has two EINs which should be merged (consolidated), it may be necessary to delete the EO section for one of the EINs to facilitate the merge. Use Caution when the TC 022 is used for this purpose. Always be sure one of the EINs has a complete EO Section.

3.13.12.6.3  (01-01-2015)
Definer Codes

  1. For TC 012 and 016, a definer code will always be necessary if a filing requirement for Forms 990, 990-PF, 990-T, 5227 or NR is input.

  2. Definer Codes A, B, C, D, and F may be input in any position.

    1. All or one of Definer Codes A, B, and C may be present with a TC 016, Document Code 80 or 81.

    2. When entering Definer Code D, it must be the only definer code and the Document Code must be 81.

    3. When entering Definer Code F, it must be the only definer code and the Document Code must be 80.

    4. When the TC is 012 and Document Code 80, Definer Code A must be the only code present.

3.13.12.6.3.1  (01-01-2015)
Definer Code A Required Input

  1. Definer Code A - Document Code 80

    • Transaction Code 012 or 016

    • One of the following FRs: 990, 990-PF, 990-T, 5227, NR (Not Required)

      Note:

      A Form 990 or Form 990-PF FR must be present if Form 990-T is a FR.

    • FYM

    • Subsection

    • Type of foundation (if applicable)

    • Classification code

    • From GEN (if applicable)

    • Remarks

  2. Definer Code A - Document Code 81

    • Transaction Code 016

    • From GEN

    • NR filing requirement of 1

    • Subsection, type of foundation (if applicable) and classification code

    • Remarks

3.13.12.6.3.2  (01-01-2015)
Definer Code B Required Input

  1. Definer Code B - Document Code 80

    • Transaction Code 016

    • Status code and date

      Note:

      For instructions on status codes and dates, see IRM 3.13.12.6.18.

    • Remarks

3.13.12.6.3.3  (01-01-2015)
Definer Code C Required Input

  1. Definer Code C - Document Code 80

    • Transaction Code 016

    • GEN

    • Affiliation code

    • Remarks

  2. Definer Code C - Document Code 81

    • Transaction Code 016

    • From GEN

    • Affiliation code

    • Remarks

3.13.12.6.3.4  (01-01-2015)
Definer Code D Required Input

  1. Definer Code D - Document Code 81 only

    • Transaction Code 016

    • From GEN

    • Status code and date

    • Subsection, type of foundation (if applicable) and classification code

    • Ruling date

    • Affiliation Code of 9

    • Form 990 FR of 01

    • Remarks

3.13.12.6.3.5  (01-01-2015)
Definer Code E Required Input

  1. Definer Code E – Document Code 81 only

    • Transaction Code 016

    • Ruling date

    • From GEN

    • New GEN

    • Affiliation Code

    • Remarks

    Note:

    Definer Code E can only be accessed by National Office and the Ogden Submission Processing Center.

3.13.12.6.3.6  (01-01-2015)
Definer Code F Required Input

  1. Definer Code F-Document Code 80 only

    • Affiliation Code of 6, 7, 8, or 9

    • From GEN

    • Remarks

3.13.12.6.3.7  (01-01-2015)
Definer Code G Required Input

  1. Definer Code G - Document Code 80 only

    • From GEN (must not be 0000 or 9999)

    • Affiliation Code of 1, 2, or 3

    • New GEN 9999

    • EO Status Code 01

    • Form 990 FR of 01, 02 or 06

    • FYM

    • Classification Code

    • Subsection Code

    • Foundation Code of 10-18 or 21 -24 if Subsection Code is 03

    • Remarks

3.13.12.6.4  (01-01-2015)
Primary, Sort, Care of Names and Name Control

  1. The EO entity portion on the BMF consists of the following 35 character fields:

    • Primary name (legal name)

    • Continuation of primary name

    • Sort name (DBA or business name)

    • Care of name (% and name)

  2. Primary name and continuation of primary name must not be longer than a total of 70 characters or 35 characters each line. Do not split a word between lines.

  3. Use only the following characters for the legal name:

    • alpha

    • numeric

    • hyphen (-)

      Reminder:

      Do not leave a space before or after the hyphen. Do not use a double hyphen.

    • ampersand (&)

    Note:

    Use a percent sign (%) only to identify a care of name.

  4. A period (.) is not an accepted character. If the organization's name has a period within the name, substitute a space for the period. For example, if the organization's name is A.B.C.D., input the name as A B C D. No space is necessary at the end of the name.

  5. An apostrophe (') is not an accepted character. If the organization's name contains an apostrophe, omit it. For example, if the organization's name is St. Ann's School, input the name as ST ANNS SCHOOL.

  6. Use the following command codes to change entity fields:

    • ENREQ/BNCHG

    • EOREQ/EOCHG

  7. The entity fields can be input independently, with the exception of the continuation of the primary name which requires the input of the primary name field.

  8. Mail going to a domestic organization will carry two name lines. The priority of these name lines is as follows:

    1. Primary name

    2. Sort name if present on the BMF

    3. Care of name

    4. Foreign street address

    5. Continuation of primary name if no foreign street is present

  9. Input the primary name, care of name and sort name accurately to ensure outgoing mail can be properly delivered.

  10. For accurate identification of an organization, input the following information as a sort name with the number first:

    • Local #

    • District #

    • Unit #

    • School name

    • Governmental division

  11. For accurate identification of a trust, input the following information at the end of the primary name line:

    • Account number

    • Donor number

    • Contract number

3.13.12.6.5  (01-01-2015)
Primary Name

  1. Suffixes such as P.A. for Professional Association, P.C. for Professional Corporation, and INC. for Incorporated indicate a corporate entity. To input a corporate entity:

    1. Do not modify the corporate name. Do not abbreviate, change symbols or change "and" to "&." The corporation receives its charter from the state exactly as shown by the organization.

    2. Bracket the word [THE] in the corporate name or business name, unless "The" is followed by only one word. This will allow you to use the second word as the name control, but the primary name will be printed on any notice or letter exactly as the taxpayer indicated on his form or return.

  2. The true trust name must appear on the primary name line. If the true trust name is not present or cannot be determined from the primary name line, contact the organization by phone, fax or letter.

  3. If the parent primary name has the word "Grand" or "Supreme" in it, do not use the word "Grand" or "Supreme" in the subordinate’s primary name.

  4. If the parent or subordinate insists the subordinate’s primary name is other than the parent’s primary name, honor the organization’s request and change the name.

    Caution:

    See IRM 3.13.12.12.12.4.1 before changing the subordinate's name.

    Note:

    This action requires managerial approval before the name change can be made.

  5. If an invalid character is used in the name line, drop the special character form the taxpayer's name. For example, Jones.com would be JONES COM.

  6. Use the individual name to identify political organizations. For example, Committee to elect John Doe for Mayor should be input as JOHN DOE FOR MAYOR COMMITTEE TO ELECT.

  7. When using CC EOREQ/EOCHG, Document Code 80,or ENREQ/BNCHG, Document Code 63 to input the Primary Name Line:

    1. The Transaction Code must be 000 or 013.

    2. All lines must be entered as they should appear on the BMF.

    3. Never enter information in the primary name which is not a part of the primary name.

    4. The second name line is used as a continuation of the organization name. Never enter a character in the first position.

    5. The new name control must always be entered. For name control procedures, see IRM 3.13.12.6.8.

    6. When working EO type accounts, IRM 3.13.12 name control corporate and trust procedures should be used.

  8. The "at" sign (@) is a special edit character used to sort certain EO entities for Exempt Organization Select Check.

    1. While standard BMF name control procedures require name control to be the first four characters of the primary name, EO Select Check is sorted on an individual's surname, if it appears in the fund or foundation name.

    2. The "at" sign (@) is placed in front of the individual's surname, whether the surname is on the primary name line or the continuation of primary name line.

    3. A right-hand bracket (]) is input to generate the "at" sign (@).

3.13.12.6.6  (01-01-2015)
Sort Name

  1. The sort name is another way to locate the organization. BMF uses the sort name to locate the organization on the National Account Index using CC NAMEE/NAMEB.

  2. If the sort name is an individual name, e.g., a trustee, enter the name as indicated by the filer followed by their title.

  3. Delete the word "The" from the sort name, unless it is only followed by one word.

  4. The sort name can be a:

    • Business or trade name if different from the true name

    • Trustee of a trust, if the trustee is an individual

    • Local #, unit #, district #, council # of a national organization

  5. The sort name can not be a:

    • Care of Name, unless it is an individual trustee

    • Financial or banking institution

    • Location address

    • Officer's name of a corporation, e.g., president or vice-president

  6. Input $$ in the first two positions of the sort name line to delete the sort name.

  7. When using CC EOREQ/EOCHG, Document Code 80 to input the Sort Name (SN):

    1. If the Document Code is 80, the Transaction Code may be 000, 013, 014, or 016.

    2. This is a 35 character field and is treated exactly the same as a BMF secondary sort on the BMF.

    3. The first position must be numeric or alpha.

    4. To delete the SN, input $$.

    5. If the organization is part of a group ruling and the primary name line is the name of the parent, there must be a sort name. The sort name must never be included as part of the primary name .

3.13.12.6.7  (01-01-2015)
In Care of Name

  1. When using CC EOREQ/EOCHG, Document Code 80, to input the In Care of Name:

    1. If the CO is input, enter a percent sign (%) in the first position, followed by a space and then the name.

    2. To delete the CO, input $$.

    3. If the Document Code is 80, the TC may be 000, 013, 014, or 016.

  2. Input $$ in the first two positions of the care of name line to delete

3.13.12.6.8  (01-01-2015)
Name Control

  1. To input the name control:

    1. Use any combination of 2–4 alpha and numeric characters.

    2. Use blanks only in the last two positions of the name control.

    3. Do not use ampersand (&) or hyphen (-) in the first position of the name control.

3.13.12.6.8.1  (01-01-2015)
Corporation Name Control

  1. For the name control of a corporation, use the first four significant characters of the corporation's name. To determine a corporate name control:

    1. Bracket the word [THE] when followed by more than one word. For example:

      Name: The Meadowlark Co.
      Name Control: [THE] MEAD

    2. Include "the" in the name control when it is followed by only one word. For example:

      Name: The Flamingo
      Name Control: THEF

    3. Use corporate name control rules if an individual name contains the abbreviations PC for Professional Corporation, SC for Small Corporation, PA for Professional Association, or PS for Professional Service. For example:

      Name: John Waxwing PA
      Name Control: JOHN

    4. Apply corporate name control rules when the organization name contains the words "Fund" or "Foundation." For example:

      Name: Kathryn Canary Memorial Fdn
      Name Control: KATH

    5. Apply corporate name control rules when the organization name contains the name of a corporation and both the words "Trust" and "Fund."

      Exception:

      For Forms 5227, trust name control rules apply, even if the "Fund" or "Foundation" is in the organization's name. See IRM 3.13.12.6.8.2.

3.13.12.6.8.2  (01-01-2015)
Trust Name Control

  1. To determine the name control of a trust:

    1. Use the first four characters of an individual's last name. For example:

      Name: Michael I. Azalea Trust
      Name Control: AZAL

    2. Use the first four characters of the corporate name:

      Name: Daisy Corp. Employee Benefit Trust
      Name Control: DAIS

    3. Contact the organization by telephone if the trust name can not be determined. If telephone contact cannot be made, correspond using Letter 45C.

    4. If the organization name contains both "Trust" and "Fund" and an individual's name, apply trust name control rules.

      Exception:

      For Forms 5227, trust name control rules apply, even if the "Fund" or "Foundation" is in the organization's name.

  2. Trust and partnership EINs beginning with 20 26, 27, 45, 46 and 47 should follow name control rules founds in IRM 21.7.13.5.8.

3.13.12.6.8.3  (01-01-2015)
Other Name Control

  1. Use the following rules to determine name control for exempt organizations other than corporations and trusts:

    1. Use the pilot voucher to determine the name control for Parent Teacher's Associations.

    2. If the return has an abbreviated first name, use the first four characters of the abbreviated name for the name control. For example:

      Name: RSVP 245
      Name Control: RSVP

    3. If the name contains the words "lodge," "local," "chapter," or "post," use the first four digits of the parent name:

      Name: Local 210, International
      Name Control: INTE

      Name: Post 3120, Veterans of Space Wars
      Name Control: VETE

    4. When an individual name and a corporate name appear, use the first four letters of the corporation name. For example:

      Name: Barbara J. Zinnia
      ZZ Grain, Inc.
      Name Control: ZZGR

    5. For churches and their subordinates, i.e., nursing homes, hospitals and schools, use the legal name of the church or subordinate as the name control. For example:

      Name: Diocese of Kansas City
      St. Ro se's Hospital
      Name Control: STRO

      Name: St. Bernard's Methodist Church Bldg. Fund
      Name Control: STBE

  2. To determine the name control for political organizations, follow the examples below:

    1. Friends of Jane Doe
      Name Control: JANE
      Input: JANE DOE FRIENDS OF

    2. Committee to Elect John Smith
      Name Control: JOHN
      Input: JOHN SMITH COMMITTEE TO ELECT

    3. Smith for State Representative
      Name Control: SMITH
      Input: SMITH FOR STATE REPRESENTATIVE

    4. Linda Jones for Congress
      Name Control: LINDA
      Input LINDA JONES FOR CONGRESS

    5. Citizens for John Doe
      Name Control: JOHN
      Input: JOHN DOE CITIZENS FOR

3.13.12.6.9  (01-01-2015)
Inputting Corporation Name, Sort Name, and Name Control

  1. Use the following to input a corporation name, sort name and name control:

    • Application for an Employer Identification Number (Form SS–4)

    • The filing of a return without an EIN

    • A return with a name change

    • Correspondence from the organization indicating a name change

3.13.12.6.10  (01-01-2015)
Inputting Trust Name, Sort Name, and Name Control

  1. Use the following to input a trust name, sort name and name control:

    • Application for an Employer Identification Number (Form SS–4)

    • The filing of a return

    • A return with a name change

    • Correspondence requesting a name change

  2. Keep the primary name to no more than 70 characters. Abbreviate the following words or phrases, if necessary:

    Word or Phrase Abbreviation
    Trust TR
    Under agreement, UA or Under agreement UA
    Dated Jan. 16, 1987 01-16-87 (See Note)
    Trustee TTEE
    For the Benefit of, F/B/O, F B O FBO
    Non-exempt Charitable Trust NECT
    Under Trust Agreement UTA
    Voluntary Employee Benefit Association VEBA
    Charitable Remainder Annuity Trust CRAT*
    Charitable Remainder Unitrust CRUT*

    Note:

    Do not input date, dated or the alpha month.

  3. Always make the individual trustee a sort name. Do not sort name a bank, mortgage company or corporation. Make this type of trustee a care of name line.

  4. Use the following example for inputting a trust name:

    Return or form shows:
    Turtle Memorial Cemetery Perpetual Trust Fund
    William C Bear Trustee

    Primary Name: TURTLE MEMORIAL CEMETERY PERPETUAL
    [Continuation of Primary Name]: TRUST FUND
    Sort Name: BEAR WILLIAM C TTEE

    Note:

    When completing name and continuation lines for Forms 5227, add the bank account number (usually 8 to 10 digits) to help identify possible duplicate EIN assignment. However, it is not necessary to update name lines with bank information each year. Do not add numbers or characters in addition to the 8 to 10 digits bank account number.

3.13.12.6.11  (01-01-2015)
Inputting Non-profit Organization Name, Sort Name, and Name Control

  1. Use the following to input non-profit organization names:

    • Application for an Employer Identification Number (Form SS–4)

    • The filing of a return without an EIN; e.g., Forms 990, 990-EZ, 990-T, 990-PF, 5227, 990BL, 1041-A, and 4720

    • A return with a name change

    • Correspondence requesting a name change

  2. To input the "in care of name" line when establishing the account for a non-profit organization from a Form SS-4, enter the officer's name on the in care of line, if the "care of" is blank and the signature area identifies the name of an officer of the organization.

3.13.12.6.12  (01-01-2015)
Addresses

  1. IRM 3.13.12.6.12 gives instructions on domestic, domestic foreign, and foreign addresses.

3.13.12.6.12.1  (01-01-2015)
Domestic Mailing and Location Addresses

  1. According to postal regulations, mail will be delivered to the last address immediately preceding the city, state and ZIP code. To input the mailing address, always use the P.O. Box as the mailing address if present.

    Exception:

    If the taxpayer indicates the street address is the mailing address and the P.O. Box is the location address, leave the P.O. Box as the location address. This applies to trusts and estates only.

  2. A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

  3. If both a location address and mailing address are present:

    1. Input the location street address on the location street address line.

    2. Input the location city, state, and ZIP code on the location city/state/ZIP line.

    3. Enter a comma after both the city and state and enter the ZIP code last.

  4. To delete a location address:

    1. Use CC ENREQ/BNCHG or EOREQ/EOCHG.

    2. Input $$ in the first two positions of the location street address.

    3. Make sure the location city, state and ZIP line is blank.

  5. When changing the mailing address from a street to a Post Office (P.O.) Box number, retain the street address as a location address. The retention of the street address is necessary as an audit trail for locating organizations.

    Caution:

    If the organization is part of a GEN, do not retain the former street address as the location address when the mailing address is changed to a P.O. Box.

  6. Do not input the additional four (4) digits of the 12-digit ZIP code on TC 000, TC 014, and TC 019. The Finalist computer program will automatically expand the nine (9) digit ZIP code to 12 digits.

  7. The Street Address (STAD) has a maximum of 35 characters when entered. If the STAD is entered, input the city and state fields. A major city code may be used followed by two (2) commas and the zip code.


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