The format of this IRM was changed:

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.

Accounts Maintenance Transcripts: A transcript generated when an unresolved credit is on the master file.

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

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.

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

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

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

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

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

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 LM (Large & Mid-Size Business) BOD, to the TE (Tax Exempt) BOD or to the SB BOD.

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

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

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.

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

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

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

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.

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.

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

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

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

Entity: The portion of the master file record which identifies the organization. The entity contains:

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

Exempt Organization - (EO): Those organizations exempt from federal income tax under section 501(a) of the Internal Revenue Code 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. Section 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. If they do not apply for exemption, they will not be included in the Publication 78. Also, if they do not establish exempt status by application, they are at risk of retroactive revocation and taxation if they are found not be engaged in the activities described by the subsection under which they claim tax-exempt status.

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

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

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

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

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

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.

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.

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

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.

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).

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.

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

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).

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

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.

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.

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

Pilot Voucher: An Exempt Organization and Business Master File (BMF) Entity Voucher prepared for processing group exemptions. This is a file copy only.

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.

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

Re-input: Reprocessing the return.

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

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

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

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

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

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

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.

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

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.

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

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.

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

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.

Transcript: A copy of entity and tax data from the master file concerning an organization's account.

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.

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

The following is a list of transaction codes (TCs) used by the Entity Control Function. See LEM 3.27.68, ADP Systems Code for further information.

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

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

The following list of CP notices are for internal use:

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

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.

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

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

The campuses may expand the basic categories. In this case, base the batch size of each category on batch sizing theory.

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

The sorter must have a better than average knowledge of Taxpayer Advocate cases. If the item meets prescribed Taxpayer Advocate criteria, do not sort a previously instructed. Instead, refer these items to the Manager or designee for expedite handling. See IRM 13.1.7.2 for TAS casework criteria.

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.

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.

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

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

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.

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.

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.

Background

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:

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.

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

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.

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.

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.

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.

The EO Entity Manager, Lead or tax examiner should monitor recurring problems in processing areas. The EO Entity manger 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.

The Quality Review tax examiner is assigned the following:

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.

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.

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

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

Command Code (CC) EOGEN can do the following:

Command Code (CC) EOGEN cannot do the following:

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

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

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

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

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).

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.

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.

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 no 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.

Refer to IRM 2.3, Terminal Response for more information.

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.

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.

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

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

The following is a list of the Open Status Codes:

The following is a list of Closed Status Codes:

The following is a list of Type of Request Codes:

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:

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

The Entity Identifying Data are defined below:

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.

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

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

The following format fields appear on the EOCHG screen:

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

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

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

If no EO section needs to established:

If an EO section needs to be established:

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.

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

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.

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

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

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.

Use only the following characters for the legal name:

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.

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.

Use the following command codes to change entity fields:

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.

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

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

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

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

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:

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.

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.

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.

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.

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.

When using CC EOREQ/EOCHG, Document Code 80, to input the Primary Name Line:

The "at" sign (@) is a special edit character used to sort certain EO entities for Publication 78, Cumulative List of Organizations.

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.

If the sort name is an individual name, e.g., a trustee, input last name first, then the first name, followed by the middle name or initial.

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

The sort name can be a:

The sort name can not be a:

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

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

Input percent sign (%) in the third position and a blank in the fourth position of the care of name when using CCs EOREQ/EOCHG.

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

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

To input the name control:

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

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

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

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.

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

Use the following to input non-profit organization names:

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.

This section gives instructions on domestic, domestic foreign, and foreign addresses.

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

When inputting the Subsection Code (SS) with CC EOREQ/EOCHG and either Document Code 80 or 81:

If the Doc. Code is 81, input the following items:

If the Document Code is 80, perform the following validity and consistency checks:

Subsection validity checks are also dependent on filing requirements and status codes. See IRM 3.13.12.6.33 for filing requirements and IRM 3.13.12.6.18 for status codes.

If an erroneous subsection is on the BMF, delete with 99.

When inputting the Foundation Code (TF) with CC EOREQ/EOCHG and either Document Code 80 or 81:

The following table is a list of foundation codes and descriptions:

When inputting the Classification Code (CL) with CC EOREQ/EOCHG and either Document Code 80 or 81: