3.20.12  Imaging and Perfecting Exempt Organization Returns for Public and Internal Viewing

Manual Transmittal

November 18, 2014

Purpose

(1) This transmits a revised IRM 3.20.12, Imaging Exempt Organization Returns.

Material Changes

(1) Various grammatical, editorial, and link corrections throughout.

(2) IRM 3.20.12.1(5) IPU 14U1342 issued 09-10-2014 - Added Form 1023-EZ.

(3) IRM 3.20.12.1.1(3) IPU 14U1342 issued 09-10-2014 - Added Form 1023-EZ.

(4) IRM 3.20.12.2.1(2) IPU 14U1342 issued 09-10-2014 - Added Form 1023-EZ.

(5) IRM 3.20.12.2.2 - Moved (3) from 3.20.12.2.3.regarding other information open to the public.

(6) IRM 3.20.12.2.3(1) IPU 13U1644 issued 11-14-2013 - Added note regarding reasonable cause statements are not redacted or restricted.

(7) IRM 3.20.12.2.3(1) IPU 13U1677 issued 11-21-2013 - Added instructions to redact the SSN on Form 4720 when attached to 990/990-EZ with the 572 box checked.

(8) IRM 3.20.12.2.3(1) - Added see Exhibit 3.20.12-1 and removed table.

(9) IRM 3.20.12.2.3(1) IPU 14U1342 issued 09-10-2014 - Added Declaration signature page may be left open for public inspection and Form 1023-EZ.

(10) IRM 3.20.12.2.3(1) IPU 14U0164 issued 01-23-2014 - Added EO to Form 8879.

(11) IRM 3.20.12.2.3(2) IPU 14U0229 issued 01-30-2014 - Removed re-worked from the instructions.

(12) IRM 3.20.12.2.3(3) IPU 14U1033 issued 06-19-2014 - Added: Note If you identify a Social Security Number (SSN), you should redact the SSN. Although the IRS is not required to redact the SSNs, the redaction of an SSN, protects the holder of the SSN from possible adverse consequences by the release of personal information to the public.

(13) IRM 3.20.12.2.3(5) & (6) IPU 14U0229 issued 01-30-2014 - Removed re-worked from the instructions.

(14) IRM 3.20.12.2.4(4) IPU 14U0249 issued 02-03-2014 - Removed re-worked from exception.

(15) IRM 3.20.12.2.6 (10) -Changed contact disclosure office to TE/GE Analyst.

(16) IRM 3.20.12.2.8 IPU 14U0665 issued 04-09-2014 - Removed subsection on reporting disclosures.

(17) IRM 3.20.12.3.1(1) - Removed using Windows XP.

(18) IRM 3.20.12.3.7(1) IPU 14U0207 issued 01-29-2014 - Updated to:e-file Form 990/990-EZ/990-PF are received by imaging from the DMD Developer to be import into SEIN. Forms 990-N are not to be converted to CD/DVD through SEIN, therefore they are excluded from the E-filed import into SEIN.

(19) IRM 3.20.12.3.7(1) IPU 14U0249 issued 02-03-2014 - Changed import to imported.

(20) IRM 3.20.12.3.7(4) IPU 14U0229 issued 01-30-2014 - Added note to restrict any blank pages.

(21) IRM 3.20.12.3.9.2 IPU 14U1342 issued 09-10-2014 - Added: Declaration signature page may be left open for public inspection.

(22) IRM 3.20.12.3.9.4 IPU 14U1342 issued 09-10-2014 - Added: Declaration signature page may be left open for public inspection.

(23) IRM 3.20.12.3.9(8) - Removed Doc. Prep. OFP and added use OFP Code for type of return being refilmed.

(24) IRM 3.20.12.3.9(11) IPU 14U0769 issued 04-25-2014 - Added: Any other IDRS Prints such as ENMOD, BMFOL, OR INOLES must be thoroughly edited.

(25) IRM 3.20.12.3.9.4(2) IPU 14U0164 issued 01-23-2014 - Added 990-T Information to table.

(26) IRM 3.20.12.3.9.9 IPU 14U1342 issued 09-10-2014 - Added: Declaration signature page may be left open for public inspection.

(27) IRM 3.20.12.3.13.1(9) IPU 13U1644 issued 11-14-2013 - Added: with a signature to Form 4720.

(28) IRM 3.20.12.3.13.1(7) & (9) IPU 14U1342 issued 09-10-2014 - Added Form 1023-EZ.

(29) IRM 3.20.12.3.13.1(9) - Added see Exhibit 3.20.12-5 and removed table.

(30) IRM 3.20.12.3.13.1(14) - Added see Exhibit 3.20.12-6 and removed table.

(31) IRM 3.20.12.3.13.2(2)(g) IPU 14U1137 issued 07-11-2014 – Changed Line 44 to Line 44g.

(32) IRM 3.20.12.3.16(3) IPU 14U0249 issued 02-03-2014 - Added after the Schedule B.

(33) IRM 3.20.12.3.13.7(3) IPU 14U1137 issued 07-11-2014 - Removed edit P .

(34) IRM 3.20.12.3.23(4) (m) & (n) – changed note to: If PTA is at the end or in the middle of the name, move it to the beginning of the name. For example, May Flower PTA would be PTA May Flower.

(35) IRM 3.20.12.3.23(6) IPU 14U0249 issued 02-03-2014 - Removed (2) to use exhibit 3.20.12-3 for country codes.

(36) IRM 3.20.12.3.23(7) IPU 14U0480 issued 03-12-2014 - Added no Zip or State found, enter "ZZ" and five zeroes.

(37) IRM 3.20.12.3.29 IPU 14U1342 issued 09-10-2014 - Removed daily delinquency penalty and penalty and interest codes in (7) and removed (11).

(38) IRM 3.20.12.3.29.1 (4) - Added see Exhibit 3.20.12-1.

(39) IRM 3.20.12.3.29.1(5) - Removed table to Exhibit 3.20.12-1.

(40) IRM 3.20.12.3.31 - Reordered information.

(41) IRM 3.20.12.3.31.2 - Removed (7) edit "NE" when no envelope is attached.

(42) IRM 3.20.12.3.31.6(1) IPU 14U0249 issued 02-03-2014 - Removed re-worked from the note.

(43) Exhibit 3.20.12-1 - Changed Exhibit to show Forms, Attachments and Information Not Open for Public Inspection and removed the Exhibits showing State/ZIP Code Perfection Chart, U.S. Possessions ZIP Codes, Province, State and Territory Abbreviations and renumbered Exhibits.

(44) Exhibit 3.20.12-1 IPU 14U1342 issued 09-10-2014 - Added Declaration signature page may be left open for public inspection and Form 1023-EZ.

(45) Exhibit 3.20.12-3 IPU 14U0249 issued 02-03-2014 - Removed exhibit with country codes.

(46) Exhibit 3.20.12-5 - Added Exhibit Attachment Routing Guide.

(47) Exhibit 3.20.12-6 - Added Exhibit Example Scenarios and Appropriate Actions to Take.

(48) Exhibit 3.20.12-7 IPU 14U0229 issued 01-30-2014 - Removed D and R from the table.

(49) Exhibit 3.20.12-7 IPU 13U1665 issued 11-19-2013 - Removed edit marks P and R and clarified edit mark G#

Effect on Other Documents

IRM 3.20.12 dated December 6, 2013 is superseded. IRM 3.12.22also incorporates interim guidance from IRM Procedural Updates (IPU) " 13U1644, 13U1677, 14U0164, 14U0207, 14U0229, 14U0249, 14U0480, 14U0665, 14U0769, 14U1033, 14U1137, 14U1342"

Audience

Wage and Investment (W&I) and Small Business/Self-Employed (SB/SE) Submission Processing Employees

Effective Date

(01-01-2015)

Maria Hooke
Director, Business Systems Planning, Tax Exempt and Government Entities

3.20.12.1  (01-01-2015)
Overview of Public Inspection Under IRC Section 6104

  1. Internal Revenue Code (IRC) 6104(a)(1)(A) requires the Internal Revenue Service (IRS) to make available for public inspection the following:

    • The approved application for exemption of any organization or trust described in IRC 501(c) or IRC 501(d) determined by the IRS to be exempt from taxation under IRC 501(a) for any taxable year;

    • The approved notice of status of an organization under IRC 527(i);

    • Any documents filed in support of such application or notice; and

    • Any letter or other document issued by the IRS pertaining to the application or notice, if the application or notice was filed November 1, 1976, or thereafter.

    • In addition, the IRS must furnish, upon request, a statement indicating the subsection and paragraph of IRC 501 that describes the exempt organization or trust.

    • However, the disclosure of certain information relating to trade secrets, patents, processes, style of work or apparatus of an organization, or national defense information may be restricted. Refer to IRM 11.3.9, Disclosure of Official Information - Exempt Organizations, for a description of the documents available for disclosure and further explanation of disclosure limitations.

    • IRC 6104(a)(1) and (d)(6) and Treas. Reg. 601.702(d)(3) requires IRS to make Form 8871, Political Organization Notice of Section 527 Status, and Form 8872, Political Organization Report of Contributions and Expenditures, (forms created as a result of the law) available for public inspection.

  2. IRC 6104(a)(2) requires the IRS (pursuant to regulations) to disclose to congressional committees, described in IRC 6103(f), the approved application for tax exemption of any organization or trust described in IRC 501(c) or IRC 501(d), the notice of status of any political organization exempt from taxation under IRC 527, and any other papers which may have been gathered, received or developed by the IRS concerning such application. To the extent the requested information is not otherwise available for public inspection under IRC 6104, the requirements of IRC 6103(f) must be complied with prior to the release of information to a congressional committee. (See IRM 11.3.4,Congressional Inquiries.)

  3. IRC 6104(b) requires the IRS to make available for public inspection information required to be furnished by IRC 6033 and IRC 6034. Any annual return filed under IRC 6011 by a IRC 501(c)(3) organization after August 17, 2006, that is related to tax imposed on unrelated business income, shall also be required to be made available for public inspection. Certain contributor and coding information may, however, be withheld. (See IRM 11.3.9, Exempt Organizations, for a description of documents commonly requested and further explanation of the disclosure limitations.)

  4. IRC 6104(c) governs when the IRS may disclose to State officials certain information - including final and proposed determinations, identifying information, and returns and return information - regarding organizations described in IRC 501(c)(3).IRC 6104(c) disclosures are generally processed by designated TE/GE exempt organizations employees. Exempt Organization (EO) must consult with Government Liaison and Disclosure to resolve uncertain situations requiring the interpretation of IRC 6104(c). Refer to IRM 11.3.33,Other Disclosures to State and Local Governments, and IRM 7.28.2,EO Disclosure Procedures, disclosure of information about exempt organizations to appropriate officials as described in IRC 6104(c).

  5. IRC 6104(d) requires that certain annual returns, reports, applications for exemption, and notices of status filed by an organization described in IRC 501(c) or (d) or exempt under IRC 527(a) be available for public inspection. Generally, the exempt organization is responsible for making these documents available for public inspection at its principal office and local or field offices having three or more employees during regular business hours. Documents available for inspection include the following:

    • Form 990,Return of Organization Exempt from Income Tax

    • Form 990-EZ,Short Form Return of Organization Exempt From Income Tax (filed after December 31, 1996)

    • Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation

    • Form 990-T,Exempt Organizations Business Income Tax Return (section 501(c)(3) organizations filed after August 17, 2006)

    • Form 5227,Split-Interest Trust Information Return (with the exception of Schedule A).

    • Form 1023,Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

    • Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.

    • Form 1024,Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120

    • Any document filed in support of such application

    • Any letter or other document issued by the IRS pertaining to such application

    • Application filed before July 15, 1987, only if it had a copy of the application on July 15, 1987

    • Form 8871,Political Organization Notice of Section 527 Status

    • Form 8872,Political Organization Report of Contributions and Expenditures, relating to political organizations

    Note:

    Under Public Law 104-168, if a request for a document required to be provided is made in person, the organization must make an immediate response. If the response is to a written request, the organization must provide the requested copies within 30 days.

  6. Organizations are only required to make annual returns publicly available under IRC 6104 that were filed during the three year period beginning on the last day for filing the return.

  7. A penalty may be imposed pursuant to IRC 6652(c)(1)(C) and (D) on any person who does not make the annual returns (including all required attachments to each return), reports, exemption application, or notice of status available for public inspection in accordance with IRC 6104(d). If more than one person fails to comply, each person is jointly liable for the full amount of the penalty. The penalty amount is $20 for each day during which a failure occurs. The maximum penalty that may be imposed on all persons for any one annual return or report is $10,000. There is no maximum penalty amount assessed against the individual person responsible for failure to make the exemption application or notice of status available for public inspection. The penalty is assessed on the Social Security Number (SSN) of the individual as a Civil Penalty 600 or 601 and is processed Non-Master File (NMF).

  8. Disclosure of contributors to exempt organizations and political organizations varies. In the case of an organization that is not an IRC 509(a) private foundation or an IRC 527 political organization, the disclosure of the above documents, or other IRC 6104(d) documents, does not include disclosure of the name or address of any contributor to the organization, disclosure of copies referred to in IRC 6031(b), or any information the Secretary withheld under IRC 6104(a)(1)(D).IRC 6104(a)(1)(D) authorizes the withholding of trade secrets, patent protected material, process, style of work or apparatus if it is determined that public disclosure would adversely affect the organization, as well as information that is determined to adversely affect the National defense. Disclosure managers should work with TE/GE personnel to determine what information may be disclosed and what must be withheld. Some documents may require editing.

  9. The following are requirements for IRC 527 Political Organizations.

    • Political organizations must file Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, if the organization has a taxable income over $100.

    • A political organization whose annual gross receipts are normally more than $25,000 must file a Form 990 or Form 990-EZ unless the organization is a "Qualified State or Local Political Organization" (QSLPO), as defined by IRC 527(e)(1). If a QSLPO, the Form 990 or Form 990-EZ is required if the annual gross receipts are normally more than $100,000.

    • A political organization may be required to file Form 8871 and/or Form 8872.

    Note:

    IRM 21.3.8.14,IRC 527 Organizations, provides additional information on IRC 527 filing requirements.

  10. Political organizations may be required to file Form 8871 (electronically only) and Form 8872 (paper or electronically). If Form 8871, including any supporting papers, and Form 8872, including Schedules A and B, are required to be filed, the IRS will make the forms available for public inspection. Schedule A requires the name, employer, occupation, amount of each contributor and an aggregate year-to-date amount for each contributor. Schedule B requires similar information for each recipient of the organization’s funds. Political organizations may choose to report amounts without providing all required information (or provide incorrect information) and pay the amount specified in IRC 527(j) (currently a 35 percent penalty on these amounts). The forms and instructions provide additional information. Organizations that have, or expect to have, either contributions or expenditures exceeding $50,000 must file required reports in electronic form. IRS is required to make available to the public on the internet a searchable database of all political organizations that file a Form 8871 or a Form 8872 with the IRS no later than 48 hours after receipt of such notice or report, whether received electronically or in paper format (see (11) below for additional details). The organization must also make these forms available at its principal office and at each of its local and field offices having more than three paid employees. Technical questions relating to Form 8871 and Form 8872 can be referred to the TE/GE Customer Accounts Services (CAS) telephone operation toll free number 1-877-829-5500. Additional information on these forms and requirements may be obtained in IRM 21.7.7.4.6,Form 8871, Political Organization Notice of Section 527 Status, and IRM 21.7.7.4.7,Form 8872, Political Organization Report of Contributions and Expenditures.

  11. IRC 527(k) requires that information from the notices (Form 8871) and the reports (Form 8872) be made available to the public on the internet in a database that is searchable by the following items:

    • Names, states, zip codes, custodians of records, directors, and general purposes of the organization;

    • Entities related to the organizations;

    • Contributors to the organizations;

    • Employers of such contributors;

    • Recipients of expenditures by the organizations;

    • Ranges of contributions and expenditures; and

    • Time periods of the notices and reports.

      Note:

      The database is required to be downloaded. The website http://www.irs.gov/polorgs was created for this purpose.

  12. The intent of Congress in allowing for the public inspection of information governed by IRC 6104(a),IRC 6104(b), and IRC 6104(d), was to enable the public to scrutinize the activities of tax exempt organizations and trusts. Congress intended that these organizations and trusts be subject to a certain degree of public accountability in view of their privileged tax status and because the public has a right to know for what purposes their contributions are being or will be used.

  13. To the extent IRC 6104(a)(1)(A) and IRC 6104(b) specifically provide for the disclosure of exempt organization information by the IRS, other disclosure provisions (e.g., IRC 6103,IRC 6110, the Freedom of Information Act (FOIA), and the Privacy Act) do not apply.

  14. However, information concerning exempt organizations and trusts (or organizations and trusts which have applied for tax exempt status) whose disclosure is not specifically addressed by IRC 6104(a)(1)(A) or IRC 6104(b) may be disclosed pursuant to IRC 6103,IRC 6110, or the FOIA.

  15. If a member of the public requests information that is governed by IRC 6103, refer to IRM 11.3.2,Disclosure to Persons with a Material Interest, or IRM 11.3.3,Disclosure to Designees and Practitioners.

  16. If a member of the public requests information (other than information governed by IRC 6104) pursuant to the provisions of IRC 6110 or FOIA, refer to IRM 11.3.8,Disclosure of Written Determinations, and IRM 11.3.13,Freedom of Information Act.

  17. IRS has an internet website for displaying forms submitted by Political Organizations. These can be viewed at http://www.irs.gov/polorgs.

  18. IRS is responsible for providing the most complete and accurate copy of the forms to the customers.

3.20.12.1.1  (01-01-2015)
Public Inspection of Annual Returns and Applications for Tax Exempt Status

  1. IRC 6104(d) requires exempt organizations to make available for public inspection a copy of their annual information returns on Form 990 or Form 990-EZ for years beginning after December 31, 1986 and on Form 990-T, (501(c)(3) organizations only) for years beginning after August 17, 2006.

    Note:

    Form 1120-POL can not be disclosed.

  2. The returns must be made available for a three-year period beginning with the due date for the return (including any extension of time for filing).

  3. IRC 6104(d) also requires exempt organizations to make available for public inspection a copy of their application for recognition of Federal tax exemption on Form 1023, Form 1023-EZ , or Form 1024.

  4. IRC 6104(d) also requires the organization to make available for public inspection a copy of any papers submitted in support of such application and any letter or other document issued by the IRS with respect to such application.

  5. If an organization filed its application before July 15, 1987, it is required to make available a copy of its application only if it had a copy of the application on July 15, 1987.

  6. IRC 6104(d) requires tax-exempt organizations to provide copies of their returns and applications to persons who request them.

3.20.12.1.2  (01-01-2015)
General Guidelines

  1. Any instructions written at the campus (e.g., desk procedures) to clarify the IRM 3.20.12, Imaging Exempt Organization Returns, can only be implemented once the instructions are approved by the TE/GE Submission Processing Programs Staff. Form 2061, Document Clearance Record, must be signed and on file. If procedures are implemented prior to approval of TE/GE Submission Processing Programs Staff, the resources will be transferred back to TE/GE. TE/GE will not fund procedures that are not approved by the business owner.

  2. IRM 3.20.12 provides the necessary instructions, guidelines, and procedures for imaging the Exempt Organization (EO) returns, both the returns open for public inspection and not open for public inspection. Additional IRMs may be referenced in conjunction with IRM 3.20.12 that includes, but not limited to the following:

    • IRM 11.3,Disclosure of Official Information

    • IRM 3.5.20,Processing Requests for Tax Return/Return Information.

  3. All notices and/or letters used during the processing of TE/GE submissions must be approved by the TE/GE Submission Processing Programs Staff. The Form 2061, Document Clearance Record, must be signed and on file. No local letters will be approved or implemented.

  4. W&I is funded by TE/GE based on receipts processed. Refer to table below as to how a count is taken. Only one count per receipt and no count is taken as a receipt produced unless the functions are completed as indicated in the table below.

    Type of Receipt Point of Count Explanation
    Paper Return Released from the SEIN System One count per return is taken after the following functions are completed:
    • Doc Prep

    • Scanning

    • Quality Control

    • Validation

    • Verification

    • Restricting - If required

    • Quality Review

    E-filed Return Released from the SEIN System One count per return is taken after the following processes are completed:
    • Quality Control

    • Validation

    • Verification

    • Restricting - If required

    • Quality Review

    Refilms Released from the SEIN System One count per return is taken after the following processes are completed:
    • Scanning

    • Quality Control

    • Validation

    • Verification

    • Restricting - If required

    • Quality Review

    Form 990 series returns secured by EO Compliance (Exam) Released from the SEIN System One count per return is taken after the following functions are completed:
    • Doc Prep

    • Scanning

    • Quality Control

    • Validation

    • Verification

    • Restricting - If required

    • Quality Review

  5. The following Organization, Function and Program (OFP) codes must be used when processing the following forms.

    Function Activity Program & Program Title
    360 Scanning, Re-scanning, Validation, Verification, Reassociation, Release, Restricting, Quality Review,
    • 13117 - All Form 990 series returns Secured by EO Compliance (Exam)

    • 13131 - Form 990-PF Paper

    • 13134 - Form 990-PF E-filed Return

    • 13139 - Form 990-PF Refilm

    • 13140 - Form 990-T Paper

    • 13148 - Form 990-T With-

    • 13149 - Form 990-T -Refilms

    • 13161 - Form 4720

    • 13169 - Form 4720 - Refilms

    • 13190 - Form 5227

    • 13199 - Form 5227 Refilm

    • 13410 - Form 990 Non-Remit

    • 13412 - Form 990-POL with 527 checked

    • 13414 - Form 990 E-filed Return

    • 13419 - Form 990 Refilm

    • 13420- Form 990-EZ Non-Remit

    • 13422 - Form 990-EZ POL

    • 13424- Form 990-EZ E-filed Return

    • 13429 - Form 990-EZ Refilms

    • 16012 - Form 8872

    • 16019 - 8872 Refilms

    550 Clerical support for the EO Imaging Function, cleaning scanners.
    • 13100 - Clerical Support

    • 13104 - (report hours only) loading E-filed returns in SEIN system and creating EO DVDs

    • 13105 - Form 2363A

    720 Document Preparation - Preparing the document for scanning. See IRM 3.20.12.3.13Document Preparation.
    • 13100 - Doc Prep All EO Returns/Documents

    880 Reviews conducted on the EO images created by Ogden Imaging Unit. The reviews charged to this time must be requested by TE/GE
    • 13100 - Imaging Reviews Requested by TE/GE

  6. Foreign and U.S. possession organizations must report amounts in U.S. dollars and state what conversion rate the organization uses. If a return is received and the amounts are not provided in U.S. dollars (numbers 0–9, or any combination of those numbers), the return is to be treated as an unprocessable return.

3.20.12.1.3  (01-01-2015)
Quality Review of Scanned Returns

  1. Post the results on an agreed site where the data can be accessed by TE/GE, W&I and other management officials.

  2. The sample will be no less than 40 filings a month per unit.

  3. The review will be conducted within the Imaging operation.

  4. Hours used to conduct the review will be reported under 880-13100

  5. The review will consist of the following:

    • verifying that all index information was entered correctly, See IRM 3.20.12.3.23, Validation.

    • verifying that all information that cannot be disclosed was removed (redacted/restricted)

    • verifying that the scanned copy is good quality, see IRM 3.20.12.3.13.7, Processing Batches of E-Filed Returns Imported into SEIN.

    • verifying that all IRM 3.20.12 procedures were followed

      Note:

      Other elements may be added to the review as agreed upon between W&I management and TE/GE Submission Processing Program (SPP) Analyst.

  6. If errors are found, print the document (or pages if appropriate) and note the error condition.

    1. Prepare a report noting the type and date of error and sample size that was reviewed.

3.20.12.2  (01-01-2015)
Disclosure to the Public

  1. Under authority of IRC 6104(b), information included on certain annual information returns of organizations and trusts that are exempt or seeking exempt status, or information required to be filed is required to be made available for public inspection.

  2. This disclosure authority pertains to any information required to be filed by these organizations or trusts in accordance with IRC 6033 and IRC 6034.

  3. All activities connected with the public inspection of EO documents issued by Headquarters will be the responsibility of the Director, Office of Governmental Liaison and Disclosure.

  4. Generally speaking, information provided on the Forms 990 and 990-EZ can be disclosed except for names and addresses of contributors and identifying contribution amounts, or other data identified as not available to the public.

    Note:

    Review the form including attachments for contributor information to be restricted/redacted.

  5. Everything included, on tax-exempt political organization returns (Forms 990 with 527 box checked, Forms 8871, 8872, and 8453-X) can be disclosed

    Exception:

    All Social Security Numbers (SSNs) must be redacted and Form 990 Schedule B which must be restricted.

  6. The entire Schedule B, must be restricted.

    Exception:

    If attached to Form 990-PF, Schedule B, is generally not restricted or redacted. See IRM 3.20.12.2.4(3).

  7. Contribution amounts listed on other schedules by the filer can be disclosed unless such amount could identify a contributor. If a contributor can be identified, the information must be redacted.

  8. Forms 1120-POL are NOT OPEN for public inspection.

  9. Form 5768, Election/Revocation of Election by an Eligible Sec. 501(c)(3) Organization to Make Expenditures to Influence Legislation is used by eligible organizations who either elect to use or revoke their election to use the provisions of section of 501(h) of the Code relating to expenditures by public charities to influence legislation. The Form 5768 is NOT OPEN for public inspection. The form is to be imaged if received with the Form 990 filing, but must be restricted.

  10. If there is a question as to whether information can or can not be disclosed contact the local Disclosure Office.

3.20.12.2.1  (01-01-2015)
Commonly Requested Documents

  1. Refer to IRM 11.3.9, Exempt Organizations, for guidelines on what may be disclosed.

  2. The following is a list of commonly requested documents that are open for public inspection, but you must follow the IRM procedures to ensure specific data is redacted/restricted prior to providing the filing to the public.

    • Form 990, Return of Organization Exempt from Income Tax, Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, and attachments required to be filed with the IRS. For organizations (other than a IRC 527 with periods beginning after 6/30/2000).

    • Schedule A, Public Charity Status and Public Support, for Organizations Exempt Under 501(c)(3).

    • Schedule B, Schedule of Contributors, is to be completely restricted unless it is attached to a 990-PF.

    • Form 990-PF, Return of Private Foundation.

    • Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of IRC, and supporting documents. Denied applications are available, in redacted form, pursuant to section 6110.

    • Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the internal Revenue Code, in redacted form, pursuant to section 6110.

    • Form 1024, Application for Recognition of Exemption Under Section 501(a) and supporting documents. Denied applications are available, in redacted form, pursuant to IRC section 6110.

    • Form 1041-A, U.S. Information Return-Trust Accumulation of Charitable Amounts.

    • Form 1065 if filed by an organization described in IRC section 501(d) (EO submodule-Subsection 40).

      Note:

      If Schedule K-1 is attached to a Form 1065, redact everything except the title of the schedule.

    • Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of IRC, if filed by a private foundation. Form 4720 filed by individuals or organizations other than private foundations, are not subject to disclosure provisions of IRC 6104.

    • Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax.

    • Form 8871, Political Organization Notice of Section 527 Status.

    • Form 8872, Political Organization Report of Contributions and Expenditures.

    • Form 8453-X, Declaration of Electronic Filing of Notice of Section 527 Status.

      Note:

      Form 8453-X will not be imaged as of March 1, 2012.

    Note:

    The Form 5227, Split Interest Trust Information Return, is available for public inspection, but the Form 5227 is not part of the images available to the public via DVDs. No redaction or restriction is required of EO Imaging when processing the Form 5227.

3.20.12.2.2  (01-01-2015)
Forms and Attachments Open for Public Inspection

  1. Forms and Attachments required to be filed or voluntarily filed with certain EO returns (Forms 990, 990-EZ, and 990-PF) are disclosed unless listed in Exhibit 3.20.12-1, Forms, Attachments and Information Not Open for Public Inspection, or specified individual sections of the IRM 3.20.12.

  2. When the following items are voluntarily submitted with the return, they will be disclosed:

    • Wills, minutes of meetings, Articles of Incorporation etc.

    • Worksheets, and accountant/audit reports

    • Forms 8109 (FTD coupons)

    • Forms W-2

    • Forms 4562

    • Extension of time to file, e.g., Form 8868

    • Schedules from a Form 1040 e.g., Schedule D

    • Forms 1098-C, Form 1098-E, and Form 1098-T

    • Form 1120, Schedule D

  3. Schedules or other information (including, but not limited to, Social Security Numbers, bank accounts, savings, checking, or credit union information) will be imaged but will not be restricted/redacted unless the schedule or information is listed in the Exhibit 3.20.12-1, Forms, Attachments and Information Not Open for Public Inspection, or specified in other section within IRM 3.20.12.

    Note:

    If you identify a Social Security Number (SSN), you should redact the SSN. Although the IRS is not required to redact the SSNs, the redaction of an SSN, protects the holder of the SSN from possible adverse consequences by the release of personal information to the public.

  4. Often organizations will submit information and mark the page "NOT TO BE DISCLOSED." Unless the information is listed in Section 3.20.12.2.3, the information is "Open for Public Inspection" .

  5. Form 990 was revised for tax year 2008 and subsequent. The tax year 2010 revision of Form 990 consists of 12 pages and numerous schedules have been added. Each schedule indicates whether or not it is open for public inspection. The schedules that are open to public inspection are clearly identified in the upper right hand corner by the following statement, " Open to Public Inspection" . All other schedules are to be restricted, including, but not limited to, Schedule B.

  6. Form 990-T, Exempt Organization Business Income Tax Return, filed by IRC section 501(c)(3) organizations filed after August 17, 2006.

3.20.12.2.3  (01-01-2015)
Forms, Attachments and Information Not Open For Public Inspection

  1. See Exhibit 3.20.12-1 for documents, forms, schedules and/or their related attachments which may be attached to the return as supporting documentation and are NOT OPEN to Public Inspection.

  2. The following IRS codes and marks are NOT open for public inspection.

    FORM INFORMATION IMAGE / REDACT / RESTRICT
    990, 990-EZ, 990-PF, 990-T Any indication the return is under investigation. Redacted
    Any indication of a delinquency status, e.g., the word "delinquent" stamped or written on the first page of the return. Redacted
    IRS Coding indicating a payment was received with the return. Redacted
    990/990-EZ, with subsection 501(c)(3), 990-PF ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Redacted
  3. In general, the names and addresses of contributors to an organization other than a private foundation shall not be available for public inspection.

    Note:

    Review the form including attachments for contributor information to be restricted/redacted. If an SSN is found on the IRC 527 returns make a screen print of the first page of the return and give to manager.

    • Names and addresses of contributors to private foundation are open to public inspection.

    • For political organizations, names, addresses, and additional information provided on Form 8871 and Form 8872 are open to public inspection.

      Exception:

      Social Security Numbers (SSNs) must be redacted and Form 990 Schedule B must be restricted. If an SSN is found on the IRC 527 returns make a screen print of the first page of the return and give to manager.

  4. TE/GE has established the policy not to include Form 990, Schedule B, that lists contributors and the amounts of contributions, with the images of the Form 990 series. The Schedule B is to be restricted and Social Security Numbers (SSNs) must be redacted on Form 990 with the 527 check box marked. If an SSN is found on the IRC 527 returns make a screen print of the first page of the return and give to manager.

    Note:

    Review the form including attachments for contributor information to be restricted/redacted.

    Exception:

    If attached to Form 990-PF, Schedule B, is not restricted or redacted, also see (6), below.

  5. The names, addresses, and amounts of contributions or bequests of persons who are not U.S. citizens to a foreign private foundation that received at least 85 percent of its support, other than gross investment income, from sources outside the U.S., shall not be made available for public inspection. A foundation that checks box D(2) in the Form 990-PF heading generally has this status. For additional information refer to IRC 4948(b).

  6. E-filed documentation that was received by the filer and attached to his or her paper filings are to be restricted. Examples of documentation that may be attached are: e-filed rejection slips and EF Transmission Status notification.

  7. When documents are voluntarily submitted as supporting documentation and not specifically required by a Code section other than IRC section 6033, or listed in the tables above, the supporting documentation will be disclosed.

  8. Questions about restricting particular schedules that are unusual or uncommon should be addressed to your local technical specialist or point of contact (POC) on the Planning & Analysis (P&A) Staff. Once addressed, Forms will not be held pending determination if not listed in the IRM, but will be imaged and restricted.

3.20.12.2.4  (01-01-2015)
Contributor Information Subject to Deletion

  1. Except as provided below, names and addresses of contributors (as set forth in Schedule B of Form 990 and 990-EZ) must be redacted from public inspection. Contribution amounts must also be redacted if they can reasonably be expected to identify the contributor (which is usually not the case).

    Note:

    Review the form including attachments for contributor information to be restricted/redacted.

  2. To reduce the risk of inadvertent disclosure of contributor information, IRS policy is not to disclose Schedule B. When specifically requested, however, EO Photocopy will provide the Schedule B with redacted names and addresses of contributors (and redacted contribution amounts if they can reasonably be expected to identify contributors).

  3. For private foundations, Schedule B information generally is open to public inspection. An exception applies to a foreign private foundation described in IRC 4948(b) that from the date of creation has received at least 85 percent of its support from sources outside the U.S. (generally evidenced by the checkbox in D(2) of the Form 990-PF heading). For such a foreign foundation, contributor information (name, address, amount) is not open to public inspection if the contributor is not a U.S. citizen. See IRM 3.20.12.2.3, Forms, Attachments and Information Not Open For Public Inspection, and Exhibit 3.20.12-1, Forms, Attachments and Information Not Open For Public Inspection, for other attachment guidance not open to public inspection.

    Note:

    Review the form including attachments for contributor information to be restricted/redacted.

  4. For IRC 527 political organizations, Schedule B of Form 990 is open to public inspection but will be restricted in Imaging. When specifically requested, however, EO photocopy will provide the Schedule B once confirmed a IRC 527 organization. If determined they are not a IRC 527 organization, a redacted Schedule B will be provided as stated in paragraph 2 above. See IRM 3.20.13, Exempt Organizations Returns Processing - Exempt Organization Photocopy Procedures, for additional instructions on this process. Contributor information and other information on Forms 8871 and 8872 is also open to public inspection. See IRM 11.3.9, Exempt Organizations.

    Exception:

    Social Security Numbers (SSNs) must be redacted on all IRC 527 political organizations. If an SSN is found on the IRC 527 returns make a screen print of the first page of the return and give to manager.

  5. Information relating to contributions and grants made by the filing organization is open to public inspection in all cases.

3.20.12.2.5  (01-01-2015)
Information That May Be Disclosed

  1. The statutory requirements of IRC 6104(a) regarding the withholding of certain information from documents available under that section do not apply to information that must be disclosed under IRC 6104(b). The reverse situation would also be true.

    Example:

    Trade secret information that the IRS has determined should be withheld from an organization's application does not have to be withheld from public inspection if included with its annual information return. Conversely, if an organization includes with its application a list of its major contributors and the organization is determined to be tax exempt, the IRS would not be obligated to remove this information before making the application available for public inspection.

  2. If an organization or trust files its return or other documents in accordance with IRC 6033 or IRC 6034 and specifically requests that certain data included therein not be opened for public inspection, the IRS cannot comply with this demand in view of the disclosure requirements of IRC 6104(b). Therefore, any information submitted by the organization or trust that is required to be filed pursuant to IRC 6033 or IRC 6034 must be disclosed subject to the exceptions described in IRM 11.3.9, Exempt Organizations.

3.20.12.2.6  (01-01-2015)
IRS Codes and Marks that can be Disclosed

  1. Most IRS codes and marks can be disclosed. Exceptions are found below in IRM 3.20.12.2.7, Coded Edit Marks and Data Elements Not Open for Public Inspection..

  2. IRS Received Date can be disclosed.

  3. Document Locator Number (DLN) can be disclosed.

  4. Red, brown, orange, or blue edit perfections can be disclosed.

  5. Transcription edit marks such as 'arrows' can be disclosed.

  6. The words Original, Final and Amended can be disclosed.

  7. Marks and stamps used by the scanning operators can be disclosed.

  8. Edit marks used by SEIN employees that indicate the return requires redaction/restriction can be disclosed.

  9. IRS stamps and employee names can be disclosed.

    Exception:

    CI employees names can not be disclosed.

  10. If there is any doubt as to what can be disclosed, the IRS employee should contact the TE/GE Analyst before making the document available for public inspection.

3.20.12.2.7  (01-01-2015)
Coded Edit Marks and Data Elements Not Open for Public Inspection

  1. A document that is required to be made available for inspection under IRC 6104(a) or IRC 6104(b) must be redacted of any coding information that indicates specific facts with regard to the organization's or trust's liability or possible liability for any tax, interest or penalty, that was added to the first page of the return during processing.

  2. Some codes and marks used by the IRS and/or are required by IRC 6033 and IRC 6034 must be redacted before making the document available for public inspection as shown in paragraphs (3) through (7) below.

  3. Do not disclose IRS marks or data provided by the filer that indicate a delinquency status, Compliance or Collection activities e.g., the word delinquent stamped or written on the first page of the return, or a Form 433-A, Form 656-A or request for an installment agreement.

    Note:

    A received date "is not" an indication of delinquency status, nor are the word(s) "statute" or "statute cleared"

    .

  4. Do not disclose IRS marks that indicate the return is under investigation, e.g., an audit stamp or the return was "secured" by field personnel.

  5. Do not disclose IRS marks that indicate a payment was received with the return, e.g., a stamped Received with Remittance, an amount written in green or purple, or a green or purple rocker.

  6. Do not disclose the "Y" edit mark added to the return during Document Preparation. See IRM 3.20.12.3.13.7, Document Preparation - Editing.

  7. Do not disclose condition codes "D" , "R" , "V" , or "X" , entered by IRS personnel.

3.20.12.3  (01-01-2015)
Creating Images — Scanning Operation

  1. IRM 3.20.12.3, Creating Images — Scanning Operation, provides instructions for making images of certain EO returns. These returns are:

    • Forms 990-PF

    • Forms 990/990-EZ

    • Forms 990/990-EZ with 527 box checked

    • Forms 8872

    • Form 990–T

    • Form 4720

    • Form 5227

  2. The SOI EO Imaging Network (SEIN), is a document imaging system that is used to scan and create images of specific EO returns. This is often referred to as the "front end processing" . Once a month, the returns (scanned images) that are available to the public for inspection are written to DVDs ("the back end processing" ) and distributed to various requestors nationwide. The images have specific information redacted, restricted or sanitized.

  3. All returns/attachments that are imaged through SEIN, are available to internal customers via OL-SEIN. The unredacted images on OL-SEIN are not redacted. They contain complete return information as filed.

3.20.12.3.1  (01-01-2015)
Overview of SEIN

  1. The Imaging System is a mini system set up for user/operators to perform various processing steps through a series of templates and dialog boxes.

  2. The software program used for Scanning, Quality Control (QC), Forms Processing, Validation, Verification, and Release (export of images and indexes to long-term storage) is called Ascent Capture.

  3. The Restricting and Quality Review(QR) steps use different, specially programmed software other than Ascent Capture.

  4. The user/operator works with the paper returns for Document Preparation (Doc. Prep.), Scanning, Re-Scanning, Quality Control, and Quality Review. The remainder of the work steps are worked using the image only.

3.20.12.3.2  (01-01-2015)
Glossary of Terms

  1. The following table reflects a list of terms commonly used in the Imaging operation.

    Figure 3.20.12-1
    Term Description
    Alchemy The name of the software program resident on DVDs containing scanned images.
    Batch A collection of folders.
    Batch Manager Module used to control the flow of batches.
    CD ARecorder A device used to produce and duplicate the CDs.
    Compact Disc (CD) These are created based on customer requests and contain the image of the returns.
    Contributor(s) Contributors may be individuals, fiduciaries, partnerships, corporations, associations, trusts, government agencies, or EOs. A contributor is a person who gave money, securities, or any other type of property to the organization either directly or indirectly for less than adequate consideration: i.e., someone who gives a complete or partial gift.
    Can be disclosed Information open for public inspection.
    Digital Video Disc (DVD) These are created based on customer requests and contain images of the returns.
    Expedites These are forms that are received marked as Expedites. They MUST be worked on a two day cycle.
    Fix-it An initially scanned return being fixed as a second submission.
    CFolder Collection of approximately 25 documents.
    Forms Processing The OCR step is an image clean up process that includes de-speckling (removal of unwanted dots). This process is turned on manually each day and needs no operator intervention.
    Image Server Consists of image storage devices called the Optical Jukebox and a Tier II computer for storing return indices.
    Image Storage Devices Optical Jukebox that permanently stores all the return images.
    Imaging System Consists of completely integrated hardware and software running on a Local Area Network (LAN) with PC Workstations running Windows XP.
    Initial Imaging The first scanning of returns.
    Quality Control (QC) Step is used to visually inspect scanned images and edit or reorder pages or returns.
    Quality Review (QR) Step performed to ensure a quality product. It is a review of all previous functions. including quality of images, and ensures all data that is required to be restricted/redacted is properly restricted/redacted to prevent unauthorized disclosure.
    Redaction Term used to define blocking out pieces of information not open to public inspection.
    Refilm Status given to a batch in the system containing documents that have only certain pages to be scanned. Additional forms or information received that was not part of the initial imaging. These are not original filings.
    Release Process that releases the returns to the Image Storage Devices (Optical Jukebox). This process is turned on manually each day and needs no operator intervention.
    Re-scanners Consist of 17 Bowe Bell and Howell Truper 3200 flatbed scanners, and 8 Bowe Bell and Howell Truper 3210 flatbed scanners. Low-speed scanners for special scanning and Quality Control operations.
    Re-scanning Process of amending or adding an image.
    Restricting Function where Restricting and Redacting are performed. Additionally, pages can be rotated and the validation information can be changed and saved in this function.
    Restriction Term used when an entire page of information is not open to public inspection
    Scanners Consist of 5 Kodak i1860 high-speed scanners, that are used for initial scanning as well as re-image scanning.
    Scanning Process that converts paper returns into digital images. The Scan module creates open batches, allows the operator to name the batch and set or modify scan options (e.g., document orientation, single-side, etc.), and reads returns.
    Software Program Software set up for user/operators to perform different functions in the Imaging process. The Ascent Capture process was purchased to perform the Batch Manager, Scanning, Quality Control, Forms Processing, Validation, and the export of images and indexes to long-term storage. Additional software was written to perform Release, Restricting, and Quality Review.
    Supplemental information A term used to refer to non IRS created pages filed with a return that provide additional information. Supplemental information that is clearly identified as a continuation of the form or it's related schedule(s) should be placed in order behind the applicable form or schedule. Supplemental information not clearly identified as a continuation of the form or schedule(s) should be placed behind the schedules.

    Note:

    Supplemental attachments can not be inserted in the middle of an e-file return or schedules, they will be at the end. Page(s) following a schedule on an e-file return are part of the schedule and should not be moved.

    Validation This step is the process of entering certain fields from a return that allows it to be retrieved from the database. A keyboard operator obtains this information from various parts of the return and inputs it during the Validation process. Indexes include Organization Name, Employer Identification Number (EIN), Tax Period, State, Zip Code, Total Assets and Subsection Code.
    Verification The process of checking the accuracy of a specified index. Verification is performed on the EIN, Tax Period, and Organization Name.
    Visually Unacceptable Refers to any page or document that has information that is cut off, illegible, too light, too dark, or missing.
    Workstations PC workstations are equipped with 21-inch monitors for viewing images.

3.20.12.3.3  (01-01-2015)
Batch Manager Module

  1. The Batch Manager module is used to check the current status and to control the flow of batches. Batch Manager provides a summary table that displays the current status of all active batches in the Ascent Capture process.

  2. The Batch Manager module can be used to:

    • display the summary table showing the status, form type, program, batch and folder number of all active batches.

    • create new batches.

    • delete existing batches.

    • edit or view batch properties.

    • display a batch audit and error trail.

3.20.12.3.4  (01-01-2015)
Receipt of Work – Timeframe Guidelines

  1. Timeliness guidelines for return imaging are specified in IRM 3.30.123 Processing Timeliness: Cycles, Criteria, and Critical Dates.

  2. Forms 990, 990-EZ, 990-PF, 990T, 4720, and 5227 initial returns are batched into folders of approximately 25 returns.

  3. Re-film returns will come from several areas within the campus. The Document 7214, Refilm for Aperture Card (Tag), will only be attached to original returns/documents requesting to be re-filmed. All photocopied re-filmed requests will not have the Document 7214 attached.

  4. All receipts have time frames and age criteria for processing/imaging the work.

    Note:

    Processing time in Imaging must be adjusted as necessary to meet program completion date (PCD) goals.

    Form/Type of work Time frame - Age Criteria
    Form 990-PF receipt Imaged within 10 work days of receipt
    Form 990, 990-EZ, 990-T, 4720, 5227 - Non-Peak Season Image within 15 work days of receipt
    Form 990, 990-EZ, 990-T, 4720, 5227 - Peak Season - March - Mid-July & Dec - Mid-Jan. Image within 20 work days of receipt
    Refund Returns Image within 5 work days from receipt
    E-filed Returns Imaged within 15 work days of receipt in the OL-SEIN system (import date from SOI)

    Note: all filings for the year (January through December) must be imaged no later than January 7th of the following year in order to be included in the DVDs for that year.
    Refilms Must be batched and controlled within "One" workday of receipt and refilmed within 10 workdays. Note: When using IDRS prints to attach something to a document in Files, type the word ATTACHMENT on the IDRS screen before printing. After printing, highlight the word ATTACHMENT along with the DLN receiving the attachment. This allows Files to continue accepting IDRS prints in place of Forms 9856.
    During peak season:
    March - Mid-July, and
    Dec - Mid-January
    an additional five days is added to process the refilm documents unless it is marked as an expedite.
    Refilm marked as expedite Must be refilmed within two working days and routed to files to be associated with the IDRS action form.

    Note:

    When using IDRS prints to attach something to a document in Files, type the word ATTACHMENT on the IDRS screen before printing. After printing, highlight the word ATTACHMENT along with the DLN receiving the attachment. This allows Files to continue accepting IDRS prints in place of Forms 9856.

    Form 8872 Two work days of receipt within the Imaging Unit to image the Form 8872
    Batches starting with "X" Are to be expedited on a two-day cycle
    Form 2363-A Complete Imaging process within 45 work days of receipt within the Imaging Unit
    Form 990 series returns secured by EO Compliance (Exam) Within 15 days of receipt in the Imaging Unit

3.20.12.3.5  (01-01-2015)
Loose Unattached Documents and/or Envelopes

  1. All unattached schedule(s), supplemental page(s) and/or envelopes that are separated from the original return during imaging must be reassociated with the original return when possible.

  2. If SEIN is unable to reassociate the loose or unattached document with the original return, the document will be routed to EO Accounts, M/S 6552 to be associated to the original return. "Annotate on the routing slip why the document is being routed and/or what action needs to be taken."

  3. If unable to reassociate loose or unattached envelopes, the envelope will be given to the lead or manager to be destroyed.

3.20.12.3.6  (01-01-2015)
Initial Returns

  1. Initial returns are returns that are received for the first time from Extracting. These returns are batched and routed to the Imaging area. With remittance documents are routed to Deposit before being routed to the Imaging area.

  2. The instructions for imaging "Initial" Returns are different from the instructions for imaging Reimage returns and Fix-its. Refer to imaging reimaged returns/documents for reimaging procedures.

  3. For procedures on imaging "Amended" returns, refer to section on Imaging Amended returns.

3.20.12.3.6.1  (01-01-2015)
Control and Routing for Initial Returns

  1. All initial returns are batched and controlled on the Batch/Block Tracking System (BBTS).

  2. When a batch of work is received, a log sheet is prepared with the program number, batch number, date, and volume (Batch Transmittal).

  3. Each batch of work will be routed through Document Preparation (Doc. Prep.), Scanning, Quality Control, Validation, Verification, Reassociation, Restricting (restricting function on public disclosed returns), and Quality Review.

  4. When a folder of returns is completed through the various steps, the system will automatically release each folder to the next step.

  5. When all folders in a batch have completed all steps of the imaging process, the batch is released on BBTS.

3.20.12.3.7  (01-01-2015)
Processing Batches of E-Filed Returns Imported into SEIN

  1. E-file Form 990/990-EZ/990-PF are received by imaging from the DMD Developer to be imported into SEIN. Forms 990-N are not to be converted to DVD through SEIN, therefore they are excluded from the e-filed import into SEIN.

  2. The following steps are to be taken to process a batch of e-Filed EO returns

    1. Look in Batch Manager for a batch whose name starts with ‘EFILE 990’. It should be in Quality Control/Rescan.

    2. Open the batch in Quality Control/Rescan.

    3. Check the number of documents in the batch. Normally, there are 30 documents per batch.

    4. Check the documents to make sure the schedules are in the correct order.

      Note:

      Restrict any blank pages.

    5. Rotate landscape documents, when needed. If e-file poor quality imaged pages are identified, contact DMD and the SPP Analyst with oversight of Imaging for correction. If after contact the quality cannot be improved, continue with process and disclose as applicable.

    6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    7. Proceed with Validation. See IRM 3.20.12.3.23, Validation.

    8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    9. Perform Verification.

    10. Release the batch.

    11. Open the batch in Restricting.

    12. Follow all IRM procedures for redacting and/or restricting a paper filed return.

    13. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    14. Perform Quality Review.

3.20.12.3.8  (01-01-2015)
Imaging Amended Returns

  1. An Amended return is to be treated and processed as an initial/original filing. An Amended return is "NOT" to be processed as a Re-Film.

  2. If you receive an amended return from Accounts Management and the return has a DLN but no "scan stamp" , follow the instructions within the remarks field on the Form 12634.

  3. If you receive an amended return from Accounts Management and the return has no DLN and no scan stamp, follow procedures for Imaging an initial/original filing.

3.20.12.3.9  (01-01-2015)
Refilm

  1. Refilm is performed when additional forms or information are received that were not part of the initial imaging. Examples of refilms are as follows:

    • Missing schedules provided by the filer after the initial return was filed. Such as Schedule B, Schedule A, etc.

    • Missing signature.

      Note:

      Do not refilm the signature page on the correspondence if original return was signed.

    • Correspondence for Schedule B check box. See IRM 3.20.12.3.9.2, Refilming Letter 2694C - Form 990 - Request for Missing Information (2008 and subsequent), and IRM 3.20.12.3.9.3, Refilming Letter 2695C - Form 990-EZ - Request for Missing Information (2008 and subsequent).

  2. A return that has never been through the Imaging system is not imaged as a refilm. They must be treated as an original return.

    Example:

    Form 990 when a Form 990-EZ was filed in error.

  3. Amended returns submitted by the filer are not a refilm. They are to be processed as an original filing.

  4. A change to the EIN, name, tax period, or sub-section IRC 527. This type of re-film request will come from EO Entity.

  5. Do not refilm a return if it is not identified as being part of the returns that are imaged through the SEIN process in IRM 3.20.12.3, Creating images - Scanning Operation..

  6. Requests for refilming returns/documents come primarily from EO Accounts and Error Resolution (ERS)/Rejects.

  7. Request from EO Entity include the following forms:

    • 8872

    • 990 filed by a POL IRC 527

    The request is generally to refilm the document to correct the EIN or Entity information.

  8. If refilm request is received as a photocopy, documents are to come from the sender with Doc Preparation completed, use OFP Code for type of return being refilmed, IRM 3.20.12.1.2, General Guidelines.

  9. A copy of the 1st page of the return is required to be attached to the refilm documents. If the first page of the original return is not available, a modified print of BRTVU, or another approved IDRS prints must be attached to the front of the information requesting to be refilmed.

  10. The BRTVU print must be thoroughly edited and contain only the EIN, tax period, subsection code, form and entity information.

    Note:

    Subsection is only required if it is an index field for that return.

  11. If any other IDRS print such as ENMOD, BMFOL, or INOLES are used in place of BRTVU, they must be thoroughly edited and contain only the EIN, tax period, subsection code, form, and entity information.

    Note:

    Subsection is only required if it is a index field for that return.

  12. If refilms are received with missing/incorrect information or are illegible they are to be rejected back to the originator indicating reason, such as what is missing and/or incomplete. If the refilm is from EO Accounts it will be rejected back to EO Accounts P&A Point of Contact at M/S 2100 not to the originator.

  13. Page 1 of the return and prints of IDRS attached to the front of the information requesting to be refilmed is to be restricted.

3.20.12.3.9.1  (01-01-2015)
Control and Routing of Refilms

  1. Returns that need to be refilmed are mailed to the Imaging Unit from other areas of the campus.

  2. Refilms must be separated by form type, batched and controlled on BBTS within one day of receipt within the Imaging Unit.

  3. Each batch of work will be Document Prepared (Doc. Prep.), Scanned, Quality Controlled (QC), Validated, Verified, Reassociated, Restricted, and Quality Reviewed (QR).

  4. When a block of returns is completed through the various steps, the system will release each block to the next step.

  5. After completion, proceed as follows:

    Received From: Form Type: then:
    Error Resolution Section (ERS)/Rejects 990-PF

    Note:

    If live return/document

    Sort & Sequence M/S 6729
    Error Resolution Section (ERS)/Rejects Photocopied reimage request Destroy photo copy request
    EO Accounts Photocopied reimage request
    Destroy photo copies
    EO Accounts if original document with a DLN route to files
    EO Entity Photocopied re-image request. Destroy photo copies
  6. The following are timeframes required to process all refilm requests:

    Type of refilm request Request received from Refilm process Must be completed
    990-PF Error Resolution Section (ERS) 10 work days from Imaging receive date, except during March and December peak, then it is 15 work days.
    990 & 990-EZ Error Resolution Section (ERS) 10 work days from Imaging received date, except during March and December peak, then it is 15 work days
    5227 & 4720 Error Resolution Section (ERS) 10 work days from Imaging received date, except during March and December peak, then it is 15 work days
    All non-expedite refilm requests EO Accounts 10 work days from Imaging receive date, except during March and December peak, then it is 15 work days.
    F8872 and F990 filed by a POL IRC 527 EO Entity 10 work days from Imaging receive date, except during March and December peak, then it is 15 work days.
    Expedites all areas 2 work days from Imaging receive date

3.20.12.3.9.2  (01-01-2015)
Refilming Letter 2694C - Form 990 - Request for Missing Information (2008 and subsequent)

  1. The Letter 2694C is sent to the filer if the original return is filed without a Schedule B attached and the check box on the return stating that a Schedule B is not required is not checked.

  2. The filer is asked to check the box indicating if the organization is not required to file the Schedule B with the return. The filer is also instructed to sign the declaration at the end of the Letter 2694C.

  3. If the filer is required to file a Schedule B the letter instructs them to complete the Schedule B and attach it to the Letter 2694C.

  4. The following table provides the refilming procedure for the Letter 2694C:

    Letter 2694C re-film and
    Received back from the filer with Schedule B completed and attached Schedule B, do not image the Letter 2694C

    Note:

    Declaration signature page may be left open for public inspection.

    follow procedures for imaging, redacting and/or restricting the schedule B
    Received with Box checked indicating Schedule B is not required Letter 2694C do not redact or restrict the Letter 2694C, unless filer has annotated on the Letter 2694C information that is required to be redacted, such as information that can not be disclosed. The letter provides relevant information that would have been open to public inspection on the Form filed initially.

3.20.12.3.9.3  (01-01-2015)
Refilming Letter 2695C - Form 990-EZ - Request for Missing Information (2008 and subsequent)

  1. The Letter 2695C is sent to the filer if the original return is filed without a Schedule B attached and the check box on the return stating that a Schedule B is not required is not checked.

  2. The filer is asked to check the box indicating if the organization is not required to file the Schedule B with the return. The filer is also instructed to sign the declaration at the end of the Letter 2695C.

  3. If the filer is required to file a Schedule B the letter instructs them to complete the Schedule B and attach it to the Letter 2695C.

  4. The following table provides the refilming procedure for the Letter 2695C:

    Letter 2695C refilm and
    Received back from the filer with Schedule B completed and attached Schedule B, do not image the Letter 2695C

    Note:

    Declaration signature page may be left open for public inspection.

    follow procedures for imaging, redacting and/or restricting the schedule B
    Received with Box checked indicating Schedule B is not required Letter 2695C do not redact or restrict the Letter 2695C, unless filer has annotated on the Letter 2695C information that is required to be redacted, such as information that can not be disclosed. The letter provides relevant information that would have been open to public inspection on the Form filed initially.

3.20.12.3.9.4  (01-01-2015)
Refilming Letter 2696C X - Exempt Organization Miscellaneous Forms Request for Missing Information

  1. The Letter 2696C X is sent to the filer if the original return is filed without a signature. The filer is asked to sign the declaration at the end of the Letter 2696C X and return the letter. The Letter 2696C X is also sent to the filer of Form 990-T to request missing Form 8941, if filed to claim the IRC 45R credit.

    Note:

    Form 990-T filed only to claim the IRC 45R credit and the attached Form 8941 will not be refilmed.

  2. The following table provides the re-filming procedure for the Letter 2696C X:

    Letter 2696C X and refilm and
    is for a disclosable return, such as Form 990, Form 990-PF, and Form 990-T 501(c)(3). received back from the filer with the declaration completed and attached Letter 2696C X redact the letter except the declaration.
    is for a return that is not disclosed to the public on DVDs, such as Form 5227, Form 4720 and Form 990-T non 501(c)(3). received back from the filer with the declaration completed and attached Letter 2696C X no redaction is needed.
    is sent out to request Form 8941 for a Form 990-T filed to claim the IRC 45R credit along with their normal filing received back from the filer with Form 8941 Form 8941 and Letter 2696C X redact Letter 2696C X, restrict Form 8941.

    Note:

    Declaration signature page may be left open for public inspection.

3.20.12.3.9.5  (01-01-2015)
Refilming Letter 2697C - Form 990-PF - Request for Missing Information

  1. The Letter 2697C is sent to the filer if the original return is identified during processing as needing additional information. The filer is asked to sign the declaration at the end of the Letter 2697C and return the letter with the requested information.

  2. The following table provides the re-filming procedure for the Letter 2697C:

    Letter 2697C and refilm and
    is for a disclosable Form 990-PF return received back from the filer with the declaration completed the check box indicating that the organization is not required to file a Schedule B. Letter 2697C redact the letter except the declaration and the box showing the statement indicating that the Schedule B is not required.
    is for a return that is not disclosed to the public on DVDs, such as Form 5227, and Form 4720.

    Note:

    Letter 2699C should only be used for the Form 990-PF. Therefore it would be very rare to see it attached to a return other than the Form 990-PF.

    received back from the filer with the declaration completed and additional documents required attached Letter 2697C no redaction is needed.

3.20.12.3.9.6  (01-01-2015)
Refilming Letter 2698C - Form 990 - Request for Missing Information (2007 and prior)

  1. The Letter 2698C is sent to the filer if the original return is filed without a Schedule B attached and the check box on the return stating that a Schedule B is not required is not checked.

  2. The filer is asked to check the box indicating if the organization is not required to file the Schedule B with the return. The filer is also instructed to sign the declaration at the end of the Letter 2698C.

  3. If the filer is required to file a Schedule B the letter instructs them to complete the Schedule B and attach it to the Letter 2698C.

  4. The following table provides the re-filming procedure for the Letter 2698C:

    Letter 2698C refilm and
    Received back from the filer with Schedule B completed and attached Schedule B, do not image the Letter 2698C follow procedures for imaging, redacting and/or restricting the schedule B.
    Received with Box checked indicating Schedule B is not required Letter 2698C do not redact or restrict the Letter 2698C, unless filer has annotated on the Letter 2698C information that is required to be redacted, such as information that can not be disclosed. The letter provides relevant information that would have been open to public inspection on the Form filed initially.

3.20.12.3.9.7  (01-01-2015)
Refilming Letter 2699C - Form 990-EZ - Request for Missing Information (2007 and prior)

  1. The Letter 2699C is sent to the filer if the original return is identified during processing as needing additional information. The filer is asked to sign the declaration at the end of the Letter 2696C and return the letter with the requested information.

  2. The following table provides the refilming procedure for the Letter 2699C:

    Letter 2699C and refilm and
    is for a disclosable Form 990-EZ return received back from the filer with the declaration completed the check box indicating that the organization is not required to file a Schedule B. Letter 2699C redact the letter except the declaration and the box showing the statement indicating that the Schedule B is not required.
    is for a return that is not disclosed to the public on DVDs, such as Form 5227, and Form 4720.

    Note:

    Letter 2699C should only be used for the Form 990-EZ therefore it would be very rare to see it attached to a return other than the Form 990-EZ.

    received back from the filer with the declaration completed and additional documents required attached Letter 2699C no redaction is needed.

3.20.12.3.9.8  (01-01-2015)
Refilming Letter 3734C - Form 990/990-EZ - Correspondence Issues

  1. Letter 3734C is sent to the filer from EO Accounts for additional correspondence issues. The filer is asked to sign the declaration at the end of the Letter 3734C and return the letter with the requested information.

  2. The following table provides the refilming procedure for the Letter 3734C:

    Letter 3734C and refilm and
    is for a disclosable Form 990/990-EZ return received back from the filer with the declaration completed the check box indicating that the organization is not required to file a Schedule B. Letter 3734C redact the letter except the declaration and the box showing the statement indicating that the Schedule B is not required.

3.20.12.3.9.9  (01-01-2015)
Refilming Letter 3735C - Form 990-T and 1120POL- Correspondence Issues

  1. Letter 3735C is sent to the filer from EO Accounts for additional correspondence issues.

  2. The following table provides the refilming procedure for Letter 3735C:

    Letter 3735C and refilm and
    is for a disclosable Form 990-T return received back from the filer Letter 3735C Image and restrict the letter.

    Note:

    Declaration signature page may be left open for public inspection.

    is for a Form 990-T that is not disclosable received back from the filer Letter 3735C Image, do not restrict or redact letter.

3.20.12.3.9.10  (01-01-2015)
Refilming Letter 3736C - Form 990-PF - Correspondence Issues

  1. Letter 3736C is sent to the filer from EO Accounts for additional correspondence issues. The filer is asked to sign the declaration at the end of the Letter 3736C and return the letter with the requested information.

  2. The following table provides the refilming procedure for the Letter 3736C:

    Letter 3736C and re-film and
    is for a disclosable Form 990-PF return received back from the filer with the declaration completed Letter 3736C redact the letter except the declaration.

3.20.12.3.10  (01-01-2015)
Imaging Form 990 series returns Secured by EO Compliance (Exam)

  1. EO Compliance agents secure original Form 990 series returns from filers that require imaging.

  2. These returns are not to be sent through processing after being imaged as Compliance has already established an account through substitute for return (SFR) procedures and adjusted that account with the necessary changes from the secured original return.

  3. To avoid routing and processing these original returns unnecessarily, EO Compliance agents will write wording across the top similar to "Amended return secured by TE/GE" and the date, photocopy the original return within one day of receipt and route the same day to the Exam single point of contact (SPOC), M/S 1114.

  4. The Exam SPOC will verify the quality of the photocopy is acceptable for imaging and will forward the same day directly to the Imaging day shift manager as follows:

    • Form 12634 (green routing slip) with
      "Attention Imaging Team 8" , mail stop 6058

    • Exam Cover sheet attached to each photocopy with the following wording:
      "IMAGE REQUEST
      This is a copy of an original return secured by EO Exam and not imaged.
      Please image and destroy copy.
      If you have any questions, contact: EO Exam EO FAST team M/S 1114 801–620-3287 "

    • Photocopy of original Form 990 series return.

    Note:

    Exam agents and SPOC will not stockpile these photocopies but will send the same day to ensure there is no delay of the images being made available for public inspection

  5. If the photocopy quality is not acceptable for producing a quality image, the photocopy will be rejected back to the Exam SPOC, M/S 1114, indicating the reason, such as "poor quality for Imaging" .

  6. If the photocopy quality is acceptable for imaging, follow established original return instructions contained in IRM 3.20.12 for imaging that Form 990 series form.

    Note:

    These returns have never been through the Imaging system and must be treated as original returns.

3.20.12.3.10.1  (01-01-2015)
Control and Routing of Form 990 series returns Secured by EO Compliance (Exam)

  1. Secured returns that need to be imaged are photocopied and mailed to the Imaging Team 8 from EO Compliance (Exam).

  2. Secured returns must be separated from other original returns and batched by individual form type, batched and controlled on BBTS within one day of receipt within the Imaging Unit. See IRM 3.20.12.1.2(5) for OFP and program codes.

  3. Each batch of work will be Document Prepared (Doc. Prep.), Scanned, Quality Controlled (QC), Validated, Verified, Reassociated, Restricted, and Quality Reviewed (QR).

  4. When a block of returns is completed through the various steps, the system will release each block to the next step.

  5. After completion, proceed as follows:

    Received From: Form Type: then:
    EO Compliance (Exam) Any Form 990 series photocopied Destroy photocopy request and copies and delete from BBTS.
  6. The following are time frames required to image all Form 990 series returns Secured by EO Compliance (Exam):

    Type of Secured Image request Request received from Imaging process Must be completed
    All Form 990 series returns secured by EO Compliance (Exam) EO Exam Compliance (Exam) 15 work days from Imaging receive date.

3.20.12.3.11  (01-01-2015)
Form 990-EZ Filed in Lieu of Form 990-N

  1. The following list contains examples of why a filer cannot file an electronic Form 990-N without the assistance of IRS.

    • The Form 990-N system is not allowing the filer to submit their filings

    • EO Submodule is not established

    • Filer has no access to a computer

  2. When a filer is unable to file an electronic Form 990-N, they may send in a paper Form 990/990-EZ, and cross out the "990-EZ or 990." on the top of the form and write "Form 990-N" , "could not access the 990-N system" or similar wording, anywhere on the form. These returns should be sent to Entity at Mail Stop 6273, in order to establish the Form 990-N electronically for them. Substitute Forms 990-N are not to be imaged, all Form 990-Ns are mandated to be filed electronic.


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