3.45.1  Processing Employee Plan and Exempt Organization Determination Applications and User Fees (Cont. 1)

3.45.1.4 
Sorting Applications Within the EP/EO Determination Letter Application Manual Deposit Unit - AKA

3.45.1.4.8  (01-02-2015)
Correspondence Received From Area Office — Interoffice correspondence

  1. Interoffice correspondence is received on a Form 3210. Complete the Form 3210 "Acknowledgment" receipt and return copy to originator, if two copies are provided, Acknowledgment and File copies. See IRM 3.45.1.11.13

  2. All correspondence should be stamped with the R&C EO/EP Determination User Fee Unit's date stamp.

    Note:

    This provides the date that the correspondence was received within the unit.

  3. The received date entered in the TEDS system for remit/non-remit interoffice correspondence that is processed as an ADF package is the date the package was received within the EP/EO Determination User Fee Unit.

  4. The received date entered in LINUS for remit interoffice correspondence is the first IRS received date. The IRS received date is provided on the Form 3210.

3.45.1.4.9  (01-02-2015)
Advance Ruling Form 8734 (F Cases)

  1. Advance Rulings enable IRS to determine under which foundation code an organization should fall. The Advance Rulings are identified on the Form 3210 as Foundation Follow-ups (F's).

  2. Form 8734 is obsolete; however, a few forms may still be submitted from the filers.

3.45.1.4.10  (01-02-2015)
Advance Ruling (F Cases) with BMFOLO

  1. Advance Rulings are received from the EP/EO Determination Centralization Site in Cincinnati with a BMFOLO print attached to the top of the request. If one is not provided, one will need to be printed and attached to the request.

  2. Proceed as follows:

    1. Place IDRS BMFOLO page 2 with the entity information showing on top of request

    2. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    3. Date stamp Form 8734

    4. Flag any address changes.

    5. Band submission

    6. Batch in pack of 10 when possible

    7. Attach yellow batch ticket to front of pack.

  3. The Batch Ticket contains the following information

    1. Form 8734 Advance Ruling NR

    2. Rec date

    3. Vol XX

    4. Employee Initial

3.45.1.5  (01-02-2015)
Case Assembly of EP/EO Determination Letter Applications

  1. This section provides procedures on case assembly for all determination letter applications and is performed as part of the second sort function.

3.45.1.5.1  (01-02-2015)
Application With Remit (W/R) & Non-Remit (N/R)

  1. Application with Form 8717 or 8718:

    Note:

    Form 8718 is not required with the Forms 1023, 1128, 3115 or 8940.

  2. Ensure the check is payable to United States Treasury. A check payable to IRS must be stamped United States Treasury.

  3. Associate the EP applications for Legacy in the following order:

    • Form 8717

    • Application form

    • Power of Attorney authorization(s)

    • Cover Letter or taxpayer correspondence

    • All remaining contents at the back of the package

    • Bind application together

    • Sort the applications by the form number, with remit or non-remit

    • Route applications to the TE/GE Deposit Unit daily.

  4. Associate the EO Application in the following order, other than the Form 1023:

    1. Form 8718

    2. Application form

    3. Power of Attorney authorization

    4. Cover Letter or taxpayer correspondence

    5. All remaining contents at the back of the package

    6. Bind application together

    7. Sort the applications by the form number, with remit or non-remit

    8. Route applications to the TE/GE Deposit Unit daily.

    Note:

    If Form 5768 or any tax returns are received with the application, leave attached. No data information is required to be captured.

  5. Associate the Form 1023 in the following order:

    Note:

    All documents may not be filed with every application package.

    1. Form 1023 checklist

    2. Application - Form 1023 and Schedules A-H, as required

    3. Form 2848, Power of Attorney and Declaration of Representative (if filing)

    4. Form 8821, Tax Information Authorization (if filing)

    5. Expedite request (if requested)

    6. Form 5768 (if filing)

    7. All other attachments, including explanations, financial data, and printed materials or publications.

    8. Form 8718, if one was filed with the application

3.45.1.5.2  (01-02-2015)
EP Applications without a Form 8717

  1. If the Form 8717 is not attached, prepare the form and attach the payment when applicable.

  2. Form 8717 is required for the following EP Applications:

    • Form 5300 - Application for Determination for Employer Benefit Plan

    • Form 5307- Application for Determination for Adopters of Master or Prototype, Regional Prototype or Volume Submitter Plans

      Note:

      Form 5307 will be processed utilizing TEDS

    • Form 5310 - Application for Determination Upon Termination

    • Form 5316–Application for group or Pooled Trust Ruling

    • Form 6406 - Short Form Application for Determination for Amendment of Employee Benefit Plan,

      Note:

      Obsolete as of 7-9-2007, Rev Proc 2007-44

    • Form 5310 -A - Notice of Plan Merger or Consolidation, Spin-off, or Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Lines of Business, does not require a Form 8717

  3. The following information is required for the Form 8717, See IRM 3.45.1.4.3:

    • Line 1 - Sponsor's name (employer if single-employer plan)

    • Line 2 - Employer identification number (EIN)

    • Line 3 - Plan Number

    • Line 4 - Plan Name

      Note:

      If Form 8717 is prepared by IRS, the Form 8717 must be stamped with "Prepared by IRS" .

3.45.1.5.3  (01-02-2015)
EO Applications Without a Form 8718 or Page 12 for a Form 1023

  1. If the Form 8718 or page 12 for a form 1023 is not attached, prepare the form and attach the payment when applicable.

  2. Form 8718/Page 12 is required for the following EO Applications:

    • Form 1023 - Application for Recognition of Exemption under IRC 501(c)(3) of the Internal Revenue Code. Page 12 of the Form 1023 replaces Form 8718.

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

    • Form 1028 - Application for Recognition of Exemption Under IRC 521 of the Internal Revenue Code

  3. The following information is required when preparing the Form 8718:

    • Line 1 - Name of the organization, "1a" of the application

    • Line 2 - Organization's employer identification number (EIN), line "2" of the application.

      Note:

      If Form 8718 is prepared by IRS the Form 8718 must be stamped with "Prepared by IRS" .

3.45.1.5.4  (01-02-2015)
Form 5316 Group Trust AKA Form 9999

  1. Application for a ruling on the qualified status of a Group Trust is requested through Form 5316 or a cover letter. The cover letter is used in lieu of an application and will be entered into LINUS as Form 9999 if Form 5316 is not attached.

  2. Sort and associate the application as follows:

    1. Print IDRS INOLES using the definer code "P" .

    2. Print IDRS INOLES without the P if IDRS message is received "Record not found. "

    3. Attach the INOLES research to the front of Form 8717.

    4. Write "Money amount" in the top right corner of Form 8717.

    5. Flag the cover letter (this acts as the application).

    6. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    7. Verify all of the documents have been properly date stamped.

  3. Band together all of the items above.

  4. Band together in packs of five (5).

  5. Attach Orange Batch Ticket to front of pack.

  6. The Batch Ticket contains the following information:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.5.5  (01-02-2015)
Identifying The Organizing Document For An Exempt Organization

  1. A corporation, trust, or association, can apply to become an Exempt Organization. Each organization is required to submit a copy of their organizational document. Documents must meet the minimum criteria.

  2. The organizing document will be used to determine the organization name "ONLY" when the application is received without a name entered on Line 1a, or Line 1 of Form 1023.

3.45.1.5.5.1  (01-02-2015)
Organizing Document For A Corporation

  1. Corporations must submit Articles of Incorporation . The application will state whether or not the organization is a corporation.

  2. The Articles Of Incorporation must show proof they have been filed with the state. This is called a conformed organizing document.

  3. The full legal name and the state's stamp showing proof of filing are the two requirements needed to determine the proper name to input on LINUS.

  4. If the application is received with Line 1A or Line 1 of Form 1023 complete, the name will be taken "as is" from Line 1A and Line 1 of Form 1023 (rev 10/2004& 6/2006).

  5. If the information on Line 1A or Line 1 of Form 1023 is missing, the following table should be used to assist you in determining the proper name.

    If you receive: Then take the name from:
    Only the certificate The certificate
    The certificate and articles with no proof of filing The certificate
    Articles with proof of filing The articles
    Original articles with no proof of filing and amended articles with proof of filing The amended articles
    Original articles with proof of filing and amended articles with no proof of filing The original articles
    Original articles with proof of filing and certificate of amendment The amended certificate
    Original articles with no proof of filing and certificate of amendment The amended certificate

3.45.1.5.5.2  (01-02-2015)
Organizing Document for a Trust

  1. If the organization has marked the type of organization as being a trust, the name of the organization must be taken from line 1a of the application. If line 1a is missing the name will be taken from the Trust document.

  2. If the Trust document is missing, pull BMFOLO for the organization's name and attach the print to the application.

3.45.1.5.5.3  (01-02-2015)
Organizing Document for an Association

  1. The "Name" is taken from Line 1A of the application when available.

  2. Associations may title their organizing document a number of ways. Some of the most common titles are:

    • Articles of Association

    • Constitution

    • Articles of Organization

  3. How an organization chooses to title their document has no bearing on the acceptability of the document. The criteria for acceptability are as follows:

    • True legal name

    • Purpose of the organization clearly stated

    • Date the document was adopted

    • Signatures of at least two officers

  4. Bylaws are not usually considered an organizing document. However, if there is no other document in the file that can serve as the organizing document, the bylaws are acceptable as long as they meet all of the above requirements.

3.45.1.6  (01-02-2015)
Payment Processing - EP/EO Determination User Fees

  1. This section contains procedures for perfecting documents and to process various types of payments received within the EP/EO Determination User Fee Unit. For additional information see IRM 3.8.45, Manual Deposit Process.

  2. All EP/EO Determination user fees with the exception of those received for the M&P, VS and VCP applications must be processed through LINUS.

  3. The postmark date of the original application determines the user fee split and the amount of valid user fee.

  4. A daily reconciliation and deposit is required to ensure timely processing of the user fees.

  5. EP/EO user fees are deposited in the following accounts:

    • 20-2411 - Treasury Account

    • 5432.5 - IRS Account

  6. Through out this section if Form 8718 is referred to, Part XI-User Fee Information takes the place of the Form 8718 for the Form 1023.

3.45.1.6.1  (01-02-2015)
Payment Perfection

  1. The Payment Perfection function within the Deposit Activity performs analysis and research on remittances and returns/documents that require additional preparation prior to depositing money. They also code or edit for other functional areas to ensure all taxpayer information is available to credit taxpayer's accounts.

  2. Prior to sending payments/documents to Payment Perfect, "complete" research should be done to ensure that there is not enough information available to establish an account or apply the monies to LINUS.

  3. Review each source document to ensure the following are true:

    1. No information is available for application to process remittance,

    2. Telephone contact can not be made.

      Note:

      Telephone contact will only be made through management approval.

  4. The following is a list of a few IDRS command codes that could be used to research to apply the payment accurately. This is not an all inclusive list; it is intended only to provide a basic point to begin payment research. For additional information refer to IRM 3.8.45, and to the Document 6209, and ADP/IDRS handbook.

    • NAME, "B- for a BMF EIN"

    • ENMOD

    • INOLE - various definers available

    • BMFOL - various definers available

  5. Route incomplete application to EO Determination Processing Section, Adjustment Unit. Identified as an incomplete application annotated with Payment processed as unidentified remittance on the IDRS screen print. Transship incomplete applications with your daily shipment but keep separate from all other applications. Do not include them on the TE/GE daily release report.

  6. If a 4663 letter is received with remittance, send to the payment perfection function to be processed as an EP delinquency penalty MFT 74 TC 160.

3.45.1.6.2  (01-02-2015)
Remittance Perfection

  1. Types of possible remittances the IRS may receive can include any of the following

    1. Personal Check

    2. Money Order

    3. Cashier Check

    4. Business Check

    5. Certified Check

    6. Voucher Check

    7. Treasury Check

    8. Draft/Postcard Type Check

    9. Irregular Checks

  2. All Payee lines Must be over stamped "United States Treasury" on payee line for the following:

    PAYEE ACCEPT/REJECT OVERSTAMP/ENDORSE
    Internal Revenue Service Accept No
    United States Treasury Accept No
    U.S. Treasury Accept No
    Department of the Treasury Accept No
    IRS Accept Over stamp
    Director (or Commissioner) of Internal Revenue Accept Over stamp
    Department of Treasury Accept Over stamp
    Estimated Tax Accept Over stamp
    Federal Tax Deposit Note: As of Jan. 1, 2011, FTD payments will not be accepted. (REG-153340-09)  
    Social Security Administration (or SSA) Accept only if received with SSA Form 4511 Over stamp
    FICA Accept Over stamp
    Blank Accept Over stamp
    Other U.S. Government Agency Accept Over stamp
    Federal Reserve Bank (or other bank) Accept if clearly intended for tax payment Over stamp
    Taxpayer (personal check or money order) Accept if taxpayer has endorsed. Reject if taxpayer has not endorsed. Over stamp and Endorse "For Deposit Only-United States Treasury" below the last endorsement
    Taxpayer—IRS Refund Check Returned refund checks are not to be processed by the depository. The refund check, document(s) and any additional remittances are to be treated as unprocessable.  
    Third Party Reject unless third party has endorsed. If third party has endorsed the check over to the taxpayer, the taxpayer must also have endorsed. Endorse "For Deposit Only-United States Treasury" below last endorsement.
    Variations of any agency or department of the United States Government should be construed to be a payment to the United States Government. Accept Over stamp
    State Agency or Franchise Tax Board Accept if the money amount matches the federal document. Over stamp

    .

3.45.1.6.3  (01-02-2015)
Remittance Not Payable to United States Treasury

  1. If remittance is not made payable to the United States Treasury or one of the acceptable payees return the remittance to the taxpayer with an explanation of an unacceptable payment.

  2. If remittance is not intended as payment for accompanying return/document, process return/document as "non-remittance." Return remittance to taxpayer with an explanation of unacceptable payment.

  3. If remittance and return/document are not for IRS, return to sender using PLS letter 1370, "Return of Document to Taxpayer" .

  4. To process the application, proceed as follows:

    1. Write "0" in the money amount field in the upper right corner of the Form 8717/8718

    2. Flag the POA and application

      Note:

      Do not flag the Form 5307 application or POA attached.

    3. Application is to be given a Non-Remit DLN and returned to technician

    4. Make a copy of the Form 8717/8718, check and the first page of the application, mark all documents with "COPY"

    5. File copy of check, Form 8717/8718, first page of application and a copy of the letter sent to the filer in the appropriate file within the Determination Deposit Unit.

      Note:

      This provides backup that the check was returned to the filer.

    6. Input the application on LINUS as a Non-Remit

3.45.1.6.4  (01-02-2015)
Cash Remittances via OTCnet

  1. Occasionally, taxpayers send cash through the mail for payment of user fees.

  2. If the cash is U.S. currency less than $5000, then it may be deposited weekly on Thursday using OTCnet. If the amount is more than $5000, it must be included with the next scheduled daily deposit.

  3. The Trace ID number for cash remittances will be manually generated from BBTS, using the Offline Trace ID Generation window in the Manual Deposit Screen and input to OTCnet.

  4. Follow normal “sorting” procedures

    • Input the money amount field on Form 8717/8718. Notate “Cash” to the left of the money amount.

    • Have case numbered and a Trace ID assigned and then returned to you.

    • Input as a remittance document.

    • Notate on the numbering sheet that the payment is cash.

    • Follow procedures per form for data input to LINUS.

    • Check the" Foreign" box in LINUS.

  5. Prepare the deposit ticket.

  6. For the Financial Institution - the following fields/actions are taken:

    • Select Agency - TE/GE

    • Trace ID#

    • List the money amount accounting symbols

    • Save for approval and give to management

    • Management will submit a deposit ticket through OTCnet and a copy will be given to the tech.

  7. Complete Form 784, Recapitulation of Remittances, with the following information:

    • Service Center - CSPC

    • Name of Director - Current director's name

    • For deposit with the current day

    • Deposit date – Current date

    • List money amount and notate as “Cash payment”

    • Fill in bottom of form with correct money amount

    • Initial Form 784

  8. Complete Form 1963, Collection Register, with the following information:

    • District Office/Service Center - CSPC

    • Area Office - Leave blank

    • CD number

    • Schedule number - Schedule number signed out for the deposit

    • Date prepared – Current date

    • List DLN of the document associated with the remittance

    • List the money amount and the accounting symbol

  9. Complete Form 2221 “Schedule of Collections” with the following information:

    • Depositor's Office and location: Cincinnati Service Center, Covington, KY 41012

    • Name and location of Depository: U.S. Bank

    • Agency Station Code: 20-09-1700-3

    • Deposit Ticket Number:

    • Date of Deposit Ticket: Current date (Thursday)

    • Postmark of source document:

    • DLN

    • Name of Remitter : Taxpayer’s Name

    • Purpose for which collection was received: user fee

    • Cash amount:

    • Accounting Symbol of fund to be credited: Money must be split between Treasury account and IRS account.

    • Cash total

    • Employee signature and title

  10. After all paperwork has been completed, separate into two packages. One package is delivered to Accounting. The second package is a file copy to be held in the TE/GE unit.

  11. The OTCnet approval sheet, deposit ticket, first copy of Form 784 along with the cash deposit is taken to Manual Deposit by daily deadline for Thursday’s deposit. Prepare a Form 3210 listing the information transmitted and have Manual Deposit initial the Form 3210 Acknowledgment copy.

3.45.1.6.5  (01-02-2015)
Unacceptable Payments

  1. Unacceptable Payment are items that the Federal Reserve Bank will not accept as payment. The check must be returned to the taxpayer, stamp the check non-negotiable and return to the filer using letter 2689.

  2. If Unacceptable Payments are identified, refer to IRM 3.8.45 for additional information.

3.45.1.6.6  (01-02-2015)
Foreign Check Remittances OTCnet

  1. Remittances drawn on foreign banks payable in U.S. dollars through U.S. banks must have U.S bank's routing symbol printed in MICR ink in the lower left corner of the check and have a nine digit routing number can be processed with the regular deposits.

  2. If the check comes in on U.S. dollars, then it is treated as a domestic check. Only those checks that come in on another currency are treated as "foreign."

  3. The Trace ID number for foreign remittances drawn on foreign banks will be manually generated from BBTS, using the Offline Trace ID Generation window in the Manual Deposit Screen and input to OTCnet.

  4. Remittances payable in U.S. Dollars, drawn on foreign banks, and received with tax returns or documents will be processed using the following procedures.

    Note:

    This is intended to cover any foreign remittance, MF or otherwise, that fails to meet any portion of (1) above.

    1. Follow normal "sorting" procedures

    2. Put "0" in the money field on Form 8717/8718

    3. Have case numbered and a Trace ID assigned and then returned to you.

    4. Input as a non-remit document

    5. Notate on the numbering sheet the check is foreign

    6. Follow procedures per form for data input to LINUS

    7. DO NOT mark the "Foreign Check" box on the LINUS transaction screen.

    8. Do not send acknowledgment notice.

      Note:

      Go into "TRANS SET" and mark the letter as having been printed for that Julian date.

  5. After input to LINUS, make 2 copies of the Form 8717/8718, the 1st page of the application, and the check. Flag the copy of the 1st page of the application with the copy of the check to the back.

  6. Staple purple folder to the front of a tan folder and notate "Foreign Check - DO NOT CLOSE until money is verified" . Fill out batch card and place on front of tan folder.

  7. Hold source document in a suspense file until confirmed deposit ticket is received with money conversion report through OTCnet.

  8. To complete processing, use the following instructions:

    1. Encode the check

    2. Write on top of the encoding tape, "EO or EP foreign check "

  9. Prepare the CD using the following procedures through OTCnet.

    1. Select Foreign Currency Check

    2. Date

    3. Cincinnati Service Ctr

    4. U.S. Dollar

    5. Amount

  10. For the Financial Institute - Citi Bank the following fields/actions are taken:

    1. Select Agency - TE/GE

    2. Trace ID#

    3. List the money amount accounting symbols

    4. Save for approval and give to management

    5. Management will submit a deposit ticket through OTCnet and a copy will be given to the tech.

  11. Sign out a schedule number from the schedule book and complete Form 2221 with the following information:

    1. Block 1 - Schedule number

    2. Block 2 - Cincinnati Center, Covington, KY 41012

    3. Block 3 - Citi Bank

    4. Block 4 - 20–09–1700–3

    5. Block 9 - Leave blank

    6. Column a - Use the received date on application

    7. Column b - Leave blank

    8. Column c - Applicant's name from pg 1 of application

    9. Column d - User Fee

    10. Column e - Money amount - EO user fee must be split accordingly

    11. Column f - Appropriate accounting symbol

    12. Block 7 - Total money amount from column e

    13. Block 8 - Signature

  12. Complete Form 784, Recapitulation of Remittances, with the following information

    1. Service Center - CSPC

    2. Name of Director - Current director's name

    3. For deposit with - Citi Bank

    4. Deposit date - Leave blank

    5. List check amount and notate as "EO or EP Foreign Check "

    6. Fill in bottom of form with correct money amount

    7. The TAGnet number above the DT Number box

    8. Initial Form 784

  13. Complete Form 1963, Collection Register, with the following information:

    1. District Office/Service Center - CSPC

    2. Area Office - Leave blank

    3. Schedule number - Schedule number signed out for the deposit

    4. Date prepared - Leave blank

    5. List DLN of the document associated with the foreign remittance

    6. Below DLN notate the number of foreign checks (e.g., 1- EO, 1-EP)

    7. List the money amount and the accounting symbol. If EO, show money separated into correct accounting symbol

  14. After all paperwork has been completed, separate into two accounting packages. Clip the two packages and the two sets of copies (application and check), copy of on line submission obtained through OTCnet together and hold in suspense file.

  15. The check, deposit ticket and the 1st copy of the Form 784 are taken to Manual Deposit. Do not put a copy of the encoding tape with the check.

  16. Prepare a Form 3210 listing the check information and have Manual Deposit initial the Form 3210 Acknowledgment copy.

  17. Confirmation is received through OTCnet.

  18. When the OTCnet is received from accounting, proceed with the following instructions:

    1. Remove case from the suspense file

    2. Print confirmation through OTCnet

    3. Cross out the "0" on the money line of the Form 8717/8718 and write the correct money amount

    4. To the left of the money notate "Foreign Check"

    5. Circle out the N/R DLN and have a W/R DLN assigned from the first submission

    6. Notate on the numbering sheet "Foreign Check"

    7. Input into LINUS as "Foreign Check - 3244 W/R send to EP/EO Centralized Site"

    8. The DLN, deposit date and the Trace ID must match.

    9. Check "Foreign Check" box on the transaction screen

      Note:

      If box is not checked, the reconciliation for the day's deposit will not balance.

    10. Alert party responsible for reconciliation that you are processing a foreign check and that they need to deliver the extra accounting package.

3.45.1.6.7  (01-02-2015)
Form 2424 - Account Adjustment Voucher

  1. Form 2424 - Account Adjustment Vouchers are received from the RACS Unit. These are user fees that were misapplied to the filer's IMF or BMF account and should have been applied to their EP/EO exempt letter application. Accounting will deliver the complete package, Form 2424 and supporting documentation as soon as they have listed them on a control document. The copy of the Form 2424 and supporting documentation is to be retained in the EP/EO Determination User Fee Manual Deposit Unit for one year.

  2. Form 2424 - Account Adjustment Voucher must be credited to the correct account in LINUS within 2 days of receipt within the unit and is processed as an "Additional Payment - Memo Entry" ; the payment will not generate out on the Form 2221.

  3. There is no check received with a Form 2424; the money was deposited when it was processed and applied to the incorrect account. Forms 2424 will ALWAYS be processed as a "With Remit" Additional Payment- Memo Entry document.

  4. There is a two day turnaround for processing the Form 2424 from the time it is received within the EP/EO Determination User Fee unit from Accounting.

  5. To process the Form 2424 Entry:

    Action If . . . . Then . . . .
    Research LINUS Research shows application has been established Process as an additional payment - Memo Entry
    Research LINUS Research shows application has not been established Contact TE/GE Submission Processing Programs Program Analyst
  6. The transaction date on the Form 2424 is the date that is used for the Postmark and the Received date unless the original submission postmark date is prior to July 1, 2006 and the transaction date is after July 1, 2006. Then the Postmark date must be the postmark date of the original submission and the Received date will be the transaction date.

    Note:

    The fee split is based on the postmark date of the original submission.

  7. The dollar amount provided as the debit amount on the Form 2424 is the dollar amount that will be captured in LINUS as the user fee.

  8. If the user fee split is showing different in LINUS than on the Form 2424, take the following actions:

    • Enter the correct amount in LINUS

    • In Red ink, annotate the correct split on the Form 2424

    • Return a corrected copy to the originator via Form 3210

    • On the Form 3210 indicate that the split was incorrect and contact needs to be made with Accounting to correct their records.

    • Keep copy of the corrected Form 2424 and Form 3210 as indicated above within paragraph number one.

3.45.1.6.8  (01-02-2015)
Form 4830 IDRS Multi-purpose posting document

  1. Form 4830- IDRS Multi-purpose posting documents are received from the RACS Unit. These are user fees that were applied to the unidentified file because they were not properly identified and should have been applied to their EP/EO Determination letter application. Accounting will deliver the complete package, Form 4830, LINUS screen print and supporting documentation as soon as they have listed them on a control document. The copy of the Form 4830 and supporting documentation is to be retained in the EP/EO Determination User Fee Manual Deposit Unit for one year.

  2. Form 4830- IDRS Multi-purpose posting documents must be credited to the correct account in LINUS within 2 days of receipt within the unit and is processed as an "Additional Payment - Memo Entry" ; the payment will not generate out on the Form 2221.

  3. There is no check received with a Form 4830; the money was deposited when it was processed and applied to the incorrect account. Forms 4830 will ALWAYS be processed as a "With Remit" Additional Payment- Memo Entry document.

  4. There is a two day turnaround for processing the Form 4830 from the time it is received within the EP/EO Determination User Fee unit from Accounting.

  5. To process the Form 4830 Entry:

    Action If . . . . Then . . . .
    Research LINUS Research shows application has been established Process as an additional payment - Memo Entry
    Research LINUS Research shows application has not been established Contact TE/GE Submission Processing Programs Program Analyst
  6. The transaction date on the Form 4830 is the date that is used for the Postmark and the Received date unless the original submission postmark date is prior to July 1, 2006 and the transaction date is after July 1, 2006. Then the Postmark date must be the postmark date of the original submission and the Received date will be the transaction date.

    Note:

    The fee split is based on the postmark date of the original submission.

  7. The dollar amount provided as the debit amount on the Form 4830 is the dollar amount that will be captured in LINUS as the user fee.

  8. If the user fee split is showing different in LINUS than on the Form 4830, take the following actions:

    • Enter the correct amount in LINUS

    • In Red ink, annotate the correct split on the Form 4830

    • Return a corrected copy to the originator via Form 3210

    • On the Form 3210 indicate that the split was incorrect and contact needs to be made with Accounting to correct their records.

    • Keep copy of the corrected Form 4830 and Form 3210 as indicated above within paragraph number one.

3.45.1.6.9  (01-02-2015)
Memo Entries

  1. Memo Entry Applications are received from the RACS Unit. These User Fees were misrouted/mailed to another center. The center deposited the user fee payment per IRM 3.8.45 and IRM 3.30.123. Accounting will deliver the complete package to the Determination Letter Application Deposit Unit as soon as they have listed them on a control document. The package will include an original control document and one copy. A copy will be retained within the unit and the original returned.

  2. Memo Entries must be credited to the correct account in LINUS .

  3. There is no check received with a Memo Entry when it is received at CSPC. Memo Entries will ALWAYS be processed as a "With Remit" document.

  4. There is a 12 day turnaround for Accounting and the financial information must be returned to Accounting as soon as possible to avoid potential backlogs. The money is to be journalized within the same month that it is received.

  5. The following steps are required to process the Memo Entries with an application:

    1. Copy Form 2221 and attach it to the case copy that is retained within the Determination Deposit Unit. The original Form 2221 is returned to Accounting.

      Note:

      Do not attach a copy of Form 2221 to the application.

    2. Copy Form 2158, Credit Transfer Voucher; the copy is retained within the Determination Deposit Unit

  6. To process the Memo Entry:

    Action If Then
    Research LINUS Research shows application has been established Process as an additional payment
    Research LINUS Research shows application has not been established Process as initial application
  7. After the applications have been numbered, proceed as follows:

    1. On the original and the extra copy of the Form 2221 write the DLN assigned to the case in "red" along side of the name of the organization.

    2. Run an adding machine tape to show the breakdown of money between 20-2411 and 5432.5 accounting symbols.

    3. Attach the adding machine tape to the original Form 2221.

    4. Attach a copy of the adding machine tape to the extra copy of the Form 2221.

    5. Return the original Form 2221, 2158, and control sheet to the point of contact in Accounting.

  8. Each form type must be batched separately. Annotate on BBTS Transmittal that the applications are "MEMO ENTRIES" .

  9. If an EO Memo Entry is received without an application and no LINUS record is found, process as a Form 1023, additional payment Memo Entry.

  10. Send a secured email listing the EINs for each memo entry processed to the TE/GE analyst who has oversight of Determination process.

  11. Forward documentation, via Form 3210 for all additional payment Memo Entries to:

    Manager of the EP/EO Determination Processing Section Adjustment Unit
    Cincinnati Office
    P.O. Box 2508
    Room 4024
    Cincinnati, OH 45201

    Manager of the EP/EO Determination Processing Section Adjustment Unit
    Cincinnati Office
    Room 4024
    550 Main St.
    Cincinnati, OH 45202

3.45.1.6.10  (01-02-2015)
Money Amounts

  1. The numeric amount on the remittance will normally be used for processing. There may still be times when the money amount to use is questionable. The following table should be used to determine how to process the payment: For additional information refer to IRM 3.8.45.

    Note:

    Checks for EO/EP Determination User Fee are only returned if completely blank.

    If . . . Then . . .
    the numeric amount is legible and matches the written amount process the payment using the numeric amount.
    the numeric and written amounts do not match and the numeric amount matches the source document process the payment using the numeric amount.
    the numeric and written amounts do not match, and the written amount matches the source document process the payment using the written amount from the remittance, annotating, in pencil the amount used above the remittance date line.
    the numeric and written amounts do not match, and neither one matches the source document process the payment using the written amount from the remittance, annotating in pencil, the amount used above the remittance date line.
    the numeric amount is illegible or blank process the payment using the written amount. Annotate, in pencil, the amount used above the remittance date line.
    the written amount is illegible or blank process the payment using the numeric amount.
    the numeric and written amounts are blank stamp the check non-negotiable and return to the filer using Letter 2689. Process the accompanying form or document as no-remittance.
    the numeric and written amounts are illegible OR if a determination can not be made contact taxpayer via telephone to determine the remittance amount. Annotate, in pencil, above the remittance date line the amount provided by the taxpayer. If unable to reach the taxpayer by telephone, stamp the check non-negotiable and return to taxpayer using Letter 2689. Process the accompanying form or document as no-remittance.

3.45.1.6.11  (01-02-2015)
EO and EP Multiple Payments

  1. A multiple payment is two or more checks submitted for one application.

  2. If two or more checks are received for one application, each check will carry its own DLN. The first check (larger amount) will be treated as the original user fee and all additional checks will be treated as an additional payment.

  3. Do not process the EO application as an insufficient user fee application if the total amount received equals a valid user fee.

  4. The following steps are taken to process the additional checks (multis)

    1. Annotate in red ink the letter "M" and the total number of checks involved on the top left corner of the Forms 8717, Form 8718 or page 12

    2. Annotate total fee received on the top left corner of the Form 8717, 8718 or page 12.

    3. Copy the Form 8717, Form 8718 , or page 12 of the Form 1023, 1st page of the application and attach copies to each additional check.

    4. Stamp the DLN on the check and the 1st page of the application

  5. Do not select the multi indicator in LINUS.

  6. EO applications with Multi payments filed on a valid form version and if all checks add up to a valid user fee are processed through TEDS.

  7. For EO applications with Multi payments filed on a valid form version and one check equals a valid user fee, process through TEDS and process the second check as an additional payment (AKA Remit-ADF Package).

  8. For EO applications with Multi payments filed on a valid form version and neither check is a valid user fee and/or checks added together are not valid user fees, do not process application through TEDS. Application is processed as an insufficient user fee.

  9. EP applications with Multi payments filed on a form that is processed through TEDS will be processed through TEDS. The additional checks received will be processed through TEDS as an additional payment (AKA - Remit ADF Package).

3.45.1.6.12  (01-02-2015)
Split Payments

  1. A split payment is one check submitted for numerous application forms.

  2. Splits or split payments are identified by writing in red ink the letter "S" along with the number of applications submitted on the top left corner of the check, and on the Forms 8717, Forms 8718 involved in the submission.

  3. Form 1023 (rev 10/2004& 6/2006) write the number of applications submitted on the top left corner of the check, and on Part XI, User Fee Information involved in the submission.

3.45.1.6.13  (01-02-2015)
Additional Payments

  1. "Additional Payments" are user fees which are received " after the original application" was received and record shows established in LINUS.

  2. Additional payments can not be recorded in LINUS as an additional payment if no record established prior.

  3. If a user fee is received from the EO Determinations Processing Section and no record is in LINUS, the following actions are taken:

    • Annotate on the Additional Payment transmittal that no application was received, no record in LINUS and the money was sent to Remittance Perfection for additional research.

    • Return the Additional Payment transmittal to the originator.

    • Route the money to Remittance Perfection for additional research.

  4. If money is received from the filer indicating that the money is an additional payment, follow table below for account action.

    If and LINUS research shows then
    money received with correspondence indicating the money is for an additional payment account established in LINUS as a Legacy case process payment through legacy as an additional payment
    money received with correspondence indicating the money is for an additional payment (user fee) account established in LINUS as a TEDS case process payment through TEDS as an additional payment - AKA Remit ADF package.
    money received with only a Form 8717/8718 or pg. 12 of the Form 1023 account established in LINUS as a Legacy case process payment through legacy as an additional payment
    money received with correspondence indicating the money is for an additional payment (user fee) account "not" established in LINUS route submission to Remittance Perfection
    money received with only a Form 8717/8718 or pg. 12 of the Form 1023 account established in LINUS as a TEDS case process payment through TEDS as an additional payment - AKA- Remit ADF package.
    money received with only a Form 8718 or pg. 12 of the Form 1023 account not established in LINUS process as an obsolete application. Refer to procedures for processing obsolete applications.
    money received with only a Form 8717 account not established in LINUS process as an EP application. Refer to procedures for processing money received with only a Form 8717.
  5. Additional payments may be received with correspondence, an AIS, or just a check. The payments can be received directly from the filer or from another IRS office.

  6. If a check and application are received through interoffice mail from EO R&A at the FOB and LINUS research shows the account was established in LINUS as a Legacy or TEDS case, process as directed on accompanying Form 3210 or user fee transmittal.

    Note:

    Do not delete any entity information already in LINUS when entering additional payment information.

  7. Additional payments processed through Legacy do not roll to EDS and they do not receive an acknowledgment notice.

  8. Additional payments processed through TEDS are uploaded and processed through TEDS as a Remit ADF package using the AIS document. They do not receive an acknowledgment notice.

  9. All additional payments must be researched on LINUS for the original application postmark date. The application's original postmark determines the split of the additional payment.

  10. The IRS received date captured in LINUS must be the date the first IRS office/personal received the payment.

  11. If no IRS received date is stamped/identified, use the date the payment was received in R&C EO/EP Determination User Fee Units.

  12. Additional payments are to be deposited within the following time frames

    If Then
    payment is received prior to daily deposit deposit payment within the same day's deposit.
    payment is received after the daily deposit is complete deposit payment the next business day.
  13. Circle out all invalid received date stamps and DLNs; date stamp with current date.

  14. Verify the check is payable to United States Treasury.

  15. Write the money amount received in the top right corner of Form 8717/8718 or pg. 12 of the Form 1023 if the case is processed through Legacy.

  16. If the remit is received directly from the filer and a Form 8717/8718 or pg. 12 is not provided, one will need to be prepared unless the AIS is attached. Refer to procedures for preparing a Form 8717/8718 or page 12.

  17. If LINUS screen shot is not attached, DO NOT print one.

  18. Follow the table below for EO additional payments:

    If and and then to
    LINUS research shows the original application postmark date was prior to July 1, 2006 research shows the user fee required a split between IRS and Treasury the required fee (split) was never deposited in the IRS account add the additional payment and the original payment together determine the required split.

    Note:

    Split is a manual process. $35.00 for specific EO applications.

    LINUS research shows the original application postmark date was July 1, 2006 or later     process per procedures for additional payment.

    Note:

    Split is determined by the LINUS programming.

     

3.45.1.6.13.1  (01-02-2015)
Additional Payments (AKA Remit ADF Packages) Processed Through TEDS Using An AIS

  1. Additional payments may be received as correspondence directly from the filer or from EO/EP Processing Section. The additional payment is processed using the AIS as the payment voucher or posting voucher. The Form 8717, 8718 or pg. 12 of the Form 1023 is not required when an AIS document is provided. If the AIS is not immediately available, the user fee must be deposited as a TEDS additional payment and not held until the AIS is available. Hold the correspondence until the AIS is available and can be scanned into TEDS.

  2. The data fields captured in LINUS for additional payments processed with an AIS are:

    • EIN

    • DLN

    • Postmark Date/Received Date

    • Form Type

    • Fee Indicator

    • Money amount

  3. The Data Field Recognition module in TEDS provides automated recognition and manual entry for the specified fields listed below from the AIS.

    • TEDS case number, this will be captured from the bar code unless the bar code fails and then it must be captured manually from the Image.

    • DLN

    • Fee Submitted checkbox

    • Postmark Date

    • Received Date

  4. The following table provide the fields that are required to be verified during Verification for additional payments processed with an AIS. Data is verified either visually or via double blind entry.

    AIS - Additional Payment
    Data Field Verified by
    TEDS Case Number VC
    DLN DC
    Fee Submitted - Checkbox VC
    Postmark Date VC
    Received Date VC

3.45.1.6.13.2  (01-02-2015)
Acknowledgment of Additional Payments

  1. All transhipped additional payments will be received on a Form 3210 or a User Fee Transmittal and must be acknowledged if an acknowledgment copy is provided by the originator. Sign and date the Form 3210 acknowledging that the payment(s) were received.

  2. Annotate all corrections to the Form 3210 or a User Fee Transmittal if original information is incorrect.

  3. Form 3210 or a User Fee Transmittal acknowledgment copy and the Form 8717/8718 or pg. 12 stamped with the DLN must be routed back to originator within 10 business days of receipt.

  4. If only one copy of the Form 3210 or a User Fee Transmittal is received, this is CSPC's file copy and no acknowledgment copy is returned to the originator.

3.45.1.6.14  (01-02-2015)
Processing Miscellaneous EO & EP Correspondence With Remit

  1. Correspondence is received from the Correspondence Unit that was mis-routed or improperly addressed. The mailing envelope may or may not be attached.

  2. Correspondence is received from Extracting as correspondence, application is not attached.

  3. Use the date stamped from the Correspondence Unit as the "Received Date." If no date stamp use the current date.

  4. All correspondence should be stamped with the R&C EO/EP Determination User Fee Unit's date stamp.

    Note:

    This provides the date that the correspondence was received within the unit.

  5. Miscellaneous correspondence with remit can be any of the items listed below:

    • EP or EO application without page 1 included.

    • EO group exemption request, refer to sorting Form 1026.

    • EP group trust request, refer to sorting Form 9999.

    • An answer to IRS EP/EO request for payment of user fee.

    • A volume submitter specimen plan.

    • A payment that is " Not" for the EP/EO exempt application

    • Memo entry applications with accompanying Form 2221.

  6. If correspondence (additional documents) is received with an AIS, the package will be processed through TEDS using the procedures for an ADF package.

  7. If correspondence (additional documents) is received without an AIS, but contains an Employer Identification Number (EIN), then the following is needed:

    • Research TEDS Documentum for the account.

    • Print off the AIS document and

    • associate it with the case.

    • Follow ADF package procedures to process.

  8. If correspondence (additional documents) is received with monies, the submission is processed as an additional payment.

3.45.1.6.15  (01-02-2015)
Incomplete Application - EP/EO Applications W/Remit

  1. EP and EO applications with "Missing Pages" can be processed if additional research provides entity information to process the remittance. Additional research is only needed if the entity information is missing.

  2. Research LINUS and EDS to ensure there is no existing case established.

  3. For EP applications, an INOLES print must accompany the package if page one is missing. INOLES provides the required entity information to establish a case. A BMFOL print must accompany the package if page four of Form 5300 Rev 4/2011 is missing.

  4. For EO applications, a BMFOL print must accompany the package if page one is missing. INOLES provides the required entity information to establish a case.

  5. Refer to processing EP/EO applications to complete processing. Batch with appropriate application.

  6. If additional research does not provide entity information to process the remittance, route the monies to Payment Perfection for processing.

3.45.1.6.16  (01-02-2015)
Form 8717 or Form 8718 Received With Remittance/Without Remit and No Application

  1. Research LINUS if existing case is established; process payment as additional payment.

  2. If LINUS research shows no record, the following sections provide the procedures for EP filers and EO filers.

3.45.1.6.16.1  (01-02-2015)
Form 8718 or Page 12 of Form 1023 Received With Remit and No Applications

  1. If only a Form 8718, or pg. 12 of the Form 1023 is received with remit, LINUS research is required to determine if the submission is processed as an additional payment or an obsolete application.

  2. The following table provides the procedures to process the submission based on the LINUS research outcome.

    If if LINUS research shows then
    money received with only a Form 8718 or pg. 12 of the Form 1023 account established in LINUS as a Legacy case process payment through legacy as an additional payment
    money received with only a Form 8718 or pg. 12 of the Form 1023 account established in LINUS as a TEDS case process payment through TEDS as an additional payment - ADF package.
    money received with only a Form 8718 or pg. 12 of the Form 1023 account not established in LINUS process as an obsolete application and route the submission to the address below.

    Internal Revenue Service
    550 Main Street
    FOB Room 4114
    Attn: EO Determination Processing Section, Adjustment Unit
    Cincinnati, OH 45202

3.45.1.6.16.2  (01-02-2015)
Form 8717 Received With Remit and No Applications

  1. If only a Form 8717 is received with remit, LINUS research is required to determine if the submission is processed as an additional payment or an initial application.

  2. The following table provides the procedures to process the submission based on the LINUS research outcome.

    If if LINUS research shows then
    money received with only a Form 8717 account established in LINUS as a Legacy case process payment through legacy as an additional payment
    money received with only a Form 8717 account established in LINUS as a TEDS case process payment through TEDS as an additional payment - ADF package.
    money received with only a Form 8717 account not established in LINUS process as an original application and route the submission to the address below.

    Internal Revenue Service
    550 Main Street
    FOB Room 2405
    Attn: EP Lead Technical Screener
    Cincinnati, OH 45202

3.45.1.6.16.3  (01-02-2015)
Form 8717 or Form 8718 Received With No Application and No check

  1. Route submissions to the following addresses via Form 3210, annotating form was received with no application and no user fee.

  2. Form 8717 route to the following address

    Internal Revenue Service
    550 Main Street
    FOB Room 2405
    Attn: EP Lead Technical Screener
    Cincinnati, OH 45202

  3. Form 8718 or page 12 of Form 1023 route to the following address

    Internal Revenue Service
    550 Main Street
    FOB Room 4114
    Attn: EO Determination Processing Section, Adjustment Unit
    Cincinnati, OH 45202

3.45.1.7  (01-02-2015)
Processing Congressional Letters

  1. If the letter is in reference to EP or EO, it is processed by the Taxpayer Advocate Office at:

    Taxpayer Advocate Office
    Federal Office Building
    550 Main St.
    Room 3530
    Cincinnati, OH 45202

  2. If the letter is not in reference to EP or EO, it is processed at the Taxpayer Advocate Office in the Gateway Center. Route to Taxpayer Advocate Officer, GWC, Stop 11G.

  3. When a cover letter from a Congressman or Senator is received along with an EP or EO application, take the following steps:

    1. Make copy of the congressional letter, and a copy of page 1 of the application.

    2. Mark both copies with COPY.

    3. Place the "copy" of the congressional letter with the case.

    4. Sort the application per sorting procedures.

    5. Place Pink folder around the application.

    6. Batch the application as an expedite.

      Note:

      Treat all congressional letters as " expedite" requests.

  4. Send the original congressional letter and the copy of the first page of the application to:

    Taxpayer Advocate Office
    Federal Office Building
    550 Main St.
    Room 3530
    Cincinnati, OH 45202

  5. Send the application and a copy of the congressional letter to EP/EO Determination Processing Section, Records Unit Room 4010. The folder must be clearly marked as a congressional letter. Do not mix the application with the other applications. The congressional letter application must be kept separate.

3.45.1.8  (01-02-2015)
Numbering Applications and Preparing Folders

  1. The number assigned to each application is unique to the document and the location processing the application. The application is stamped with a Document Locator Number (DLN). The DLN, a fourteen-digit number, is used to track and retrieve the document.

  2. Blue folders are used for all Form 5310 and Form 8940 applications.cases.

  3. Tan or Buff colored folders are used for all other applications. DO NOT substitute the tan or buff colored folders with another colored folder unless approved by TE/GE analyst who has oversight of Determination process.

  4. Through out this section if Form 8718 is referred to, Part XI-User Fee Information takes the place of the Form 8718 for the Form 1023.

3.45.1.8.1  (01-02-2015)
Document Locator Number (DLN)

  1. The DLN is a controlled number assigned to every return or document per location . The fourteenth digit is the year of processing.

  2. The DLN is used to control, identify, and locate documents processed.

  3. The DLN should not be confused with the tax account number, which consists of nine digits, for example:

    • Social Security Number

    • IRS Individual Taxpayer Identification Number

    • Employer Identification Number

  4. Returns and documents are blocked and filed by DLN.

  5. The format for a DLN is as follows:

    • The first two digits of the DLN are the File Location Code. (17)

    • The third digit is the tax class. This identifies the type of tax each transaction involves. (0)

    • The fourth and fifth digit are doc code. Certain document codes can be applicable to more than one type form or tax. (53= EO, 07=EP)

    • The sixth, seventh, and eighth digits represent the control (Julian) date. (various)

    • The ninth, tenth, and eleventh digits represent the block number. (700-999 = Non-remit and 000-699 = W/remit)

    • The twelfth and thirteenth digits are the serial numbers.

    • The fourteenth digit is the last year digit of the year the DLN was assigned.

  6. Blocking series differ based on " Non Remit" and " Remit" applications.

    • Non-Remit begins with 850 block number and With-Remit begins with 050 for applications processed through TEDS.

  7. The assigned DLN will be manually stamped on required forms within an application package:

    • First page of application package, see table below:

      Package Type DLN stamped on
      Form 5300 Form 5300
      Form 5307 Form 5307
      Form 5316 Form 5316
      Form 5310 Form 5310
      Form 6406 Form 6406
      Form 8950 Form 8950
      Form 9999 Form 1st page of IDRS Print
      Form 1023 1st page of Form 1023

      Note:

      All versions

      Form 1024 Form 1024
      Form 1025 Form 1025
      Form 1026 Form 1026
      Form 1028 Form 1028
      Form 1128 Form 1128
      Form 3115 Form 3115
      Form 8734 Form 8734
      Form 8940 Form 8940
      IDRS Print - INOLE or BMFOL Page one
      Remit ADF package (Additional Payment for a TEDS Case) AIS

3.45.1.8.2  (01-02-2015)
Preparing Form 3539

  1. The check, Form 8717/8718, and the application are stamped with the same DLN. Form 3539 is used to complete the deposit process so it is imperative that the form is accurate. A separate Form 3539 is prepared for each type of application/process:

    • EO Applications with remit (EO W/R)

    • EP Applications with remit (EP W/R)

    • EO Applications no remit (EO N/R)

    • EP Applications no remit (EP N/R)

    • EP TEDS Applications with remit (EP TEDS W/R)

    • EP TEDS Applications no remit (EP TEDS N/R)

    • EP Additional Payments

    • EO Additional Payments

  2. Follow the steps below to complete the Form 3539:

    1. Write the first two numbers of the DLN in the "File Location Code" box.

    2. Enter the third number of the DLN in the "Tax Class" box.

    3. Write the fourth and fifth numbers of the DLN in the "Document Code" box.

    4. Write the type of application, EO W/R, EP W/R, EO N/R, or EP N/R, EP TEDS W/R, EP TEDS N/R in the "Form number and title" box.

    5. Write the current Julian date for with remit applications and previous Saturday's Julian date for no remit in the "Program Number" box.

    6. Enter the current date in the "Date" column.

    7. Enter the total number of documents in the series of batches in the "Item Count" box.

3.45.1.8.3  (01-02-2015)
Numbering Remit Work

  1. Work in numerical order with the oldest received dates first, beginning with EO Form 3244 working to Form 1028 followed by EP Form 3244 working to Form 9999.

  2. Generally a batch consists of 25 or less Forms 3244.

3.45.1.8.3.1  (01-02-2015)
Numbering Additional Payments

  1. Number each batch of additional payments as one DLN with consecutive serial numbers. EP and EO must be batched separately.

  2. Stamp the DLN on the:

    1. Beginning field of Form 3539.

    2. Top right hand corner of the check.

      Note:

      If the top right hand corner is not clear, the DLN should be stamped in a clear area, but can not be stamped in the lower right hand corner.

    3. Top right hand corner of the 1st page of the application. (e.g., 8717, 8718, EDS Case Control Sheet)

    4. If received with an AIS, stamp the DLN within the Box for IRS use only.

  3. Change the DLN serial number with each additional payment that you stamp.

  4. Stamp the last DLN number assigned for each batch in the "Ending field" of the Form 3539.

  5. Enter the number of additional payments numbered in the "Item Count field" .

  6. Write Additional Payments in the "Remarks field" .

3.45.1.8.3.2  (01-02-2015)
Numbering Split Payments

  1. A Split payment is one check sent in to pay for more than one application. In a split case, each application must be numbered using the same file location code, tax class, document code, Julian Date, and blocking series. Only the serial number is changed.

    1. Stamp the DLN in the "Beginning Field" of Form 3539.

    2. The same DLN is stamped on the check and the first page of the application package received with the split. To stamp the DLN requires the serial number be manually changed before each package is stamped.

    3. When all related applications and forms are stamped, mark a dash at the end of the DLN stamped on the check and write the serial number of the last application package involved in the split payment next to the DLN. The first eleven digits of the DLN are the same for all of the documents received in this package.

    4. Stamp the last DLN assigned in the "Ending Field" on the Form 3539. Write "S" and the number of applications involved in the "Remarks field" .

3.45.1.8.3.3  (01-02-2015)
Numbering Multi Payments

  1. A Multi payment is more than one check submitted for one application. To process a Multi payment:

  2. Stamp the same DLN on:

    1. The beginning field of Form 3539.

    2. The 1st page of the package.

    3. The ending field of Form 3539.

  3. Multi checks received for one application will contain their own DLN. The first check will be stamped with the same DLN as the 1st page of the package. All other checks will be processed as an additional payment and have their own DLN.

  4. Write "M" and the number of checks involved in the "Remarks field" .

    Note:

    It is extremely important to mark split and multi payments in order to leave an audit trail.

3.45.1.8.3.4  (01-02-2015)
Numbering Memo Entries

  1. When numbering memo entries the DLN assigned is identified by stating memo entry in the "Remarks field" on the Form 3539.

3.45.1.8.3.5  (01-02-2015)
Numbering Form 2424

  1. When numbering Form 2424 - Account Adjustment Voucher, the DLN assigned is the Julian Date that the payment was originally received. The payment date can be found on the Form 2424 within the box "Transaction Date."

3.45.1.8.4  (01-02-2015)
Numbering Non-Remit Forms

  1. Number each batch as one DLN with consecutive serial numbers.

    1. Stamp the DLN in the "Beginning" field of Form 3539, the top right-hand corner of the 1st page of the application.

    2. Change the DLN serial number with each request that you stamp, within each batch.

    3. Stamp the last DLN assigned in the "Ending" field of Form 3539.

    4. Enter the number of forms numbered in the "Item Count" field.

3.45.1.9  (01-02-2015)
Processing Expedite Applications

  1. Expedite Letter Applications are processed within 2 days of receipt and transhipped inside a pink folder and boxed separately from all other applications. The expedite applications are reported separately on the TE/GE Daily Release Report.

  2. Special requests such as special disaster applications, will be separate from the expedite applications and reported separately on the TE/GE Daily Release Report per request of TE/GE Submission Processing Programs program analyst with oversight.

  3. All congressional letters are treated as an expedite. Send the original congressional letter and the copy of the first page of the application to the address below; for additional information refer to See IRM 3.45.1.7

    Taxpayer Advocate Office
    Federal Office Building
    550 Main St.
    Room 3530
    Cincinnati, OH 45202

  4. The priority must be set at "1" when scanning an expedite application through TEDS.

  5. Annotation of the expedite indicator is required on the application during Doc Prep. Refer to procedures for Doc Prep of a TEDS application.

3.45.1.10  (01-02-2015)
Letter Information Network user Fee System (LINUS).

  1. LINUS is the official financial record for all of the EP/EO Determination application user fees.

  2. Acknowledgment Notices and EP/EO Determination Input Sheets are generated from this System.

  3. The only valid characters are alphas A-Z, numeric 0-9, hyphen (-), ampersand (&) and within the address the slash (/).

  4. Specific data per form type must be entered and captured within the LINUS database.

  5. Through out this section if Form 8718 is referred to, Part XI-User Fee Information takes the place of the Form 8718 for the Form 1023.

3.45.1.10.1  (01-02-2015)
Obsolete EO Applications

  1. EO Division has approved returning the applications if filed on an obsolete revision. The EO applications filed on an obsolete form revision will be returned to the filer by the EO Determination Processing Section.

  2. The table below provides the valid EO version; all other versions are considered obsolete and will be processed as an obsolete form. If mixed version dates are received within the package, page one of the application is used to determine if the application is valid.

    Form Purpose of Form Valid Revision Date
    8718 User Fee Form

    Note:

    If application is received with invalid revision, CSPC will prepare valid revision

    1/2010, 6/2006
    1023 Application for Exemption for 501(c)(3) 6/2006
    1024 Application for non 501(c)(3) subsections 9/1998
    1028 Application for Exemption for Farmers' Co-ops (IRC 521) 9/2006
    8734 Form for Advance ruling follow-up cases 1/2004

3.45.1.10.1.1  (01-02-2015)
Processing Follow-up Applications to an Obsolete Application

  1. Research LINUS to determine the correct procedures to process a follow-up application. The follow-up application must be filed on a valid version; if not, process as an obsolete application. Follow the table below:

    If LINUS shows and and then
    Original submission received and processed as an obsolete submission application received with no user fee on a valid version   process as a non-remit application.
    Original submission received as an obsolete submission application received with a valid user fee and on a valid version   Process as a valid application
    Original submission received as an obsolete submission new application received with an invalid user fee   process following procedures for an insufficient application
    Original submission received as an obsolete submission application is received with no user fee and a request for Expedite processing Do not flag as an expedite request process as a non-remit application
    Original submission received as an obsolete submission application received with a valid user fee and a request for Expedite processing   process as a valid Expedite application
    Original submission received as an obsolete submission application received with an invalid user fee and a request for Expedite processing do not flag as an expedite request process following procedures for an insufficient application

3.45.1.10.1.2  (01-02-2015)
Non-Remit EO Applications Filed on an Obsolete Revision

  1. The following are procedures that must be followed for all EO original filings received on an obsolete version processed through Legacy.

    1. Establish account on LINUS

    2. Indicate in LINUS the EO application was filed on an obsolete revision. Select the Obsolete indicator.

    3. Generate and attach the LINUS check sheet to the front of the EO application

    4. Prepare applications to be boxed and shipped to Determination Processing, Records Unit. The EO applications submitted on obsolete revisions must be sorted separately from all other applications and the Form 3210 must indicate that they are EO applications submitted on an obsolete revision.

    5. Count is reported as a separate line item on the TE/GE Release Report.

  2. Do NOT establish cases in EDS unless processed as an original valid application.

  3. Obsolete form revisions are not processed through TEDS until further notice.

3.45.1.10.1.3  (01-02-2015)
EO Applications Filed With Remit and Filed on an Obsolete Revision

  1. The following are procedures that must be followed for all EO applications received on an obsolete version and with a user fee.

    1. Establish account on LINUS

    2. Indicate in LINUS the EO application was filed on an obsolete revision.

    3. Deposit user fee

    4. Generate and attach the LINUS check sheet to the front of the application

    5. Prepare applications to be boxed and shipped to EO Determination Processing Section, Records Unit. The EO applications submitted on obsolete revisions must be sorted separately from all other applications and the Form 3210 must indicate that they are EO applications submitted on an obsolete revision.

    6. Count is reported as a separate line item on the TE/GE Release Report.

  2. Do NOT establish cases in EDS.

  3. Obsolete form revisions are not processed through TEDS until further notice.

3.45.1.10.2  (01-02-2015)
Insufficient User Fee - EO Applications

  1. EO Division has approved returning the EO applications to the filer if the application is received with an insufficient user fee. As of January 2010 all EO applications with user fees other than $400.00, $850.00, $1,000.00 or $3,000.00 are to be pulled for additional research to determine if the application is an original request or a follow-up (additional payment) to the original application or a replacement for an obsolete application.

  2. Non-remit applications are not considered insufficient user fee applications. Non-remit applications are to be processed as a non-remit application.

  3. Refer to the table below for correct indicator:

    Action If . . . . Then . . . .
    Research LINUS Research shows application has been established as an insufficient user fee Process as an additional payment
    Research LINUS Research shows application has not been established Process as initial application using the insufficient user fee indicator
    Research LINUS Research shows a prior submission was established as an obsolete application. Process as a Follow-Up application if a valid user fee was paid.
    If not, process as an additional payment
  4. The following procedures are to be followed for all EO applications that are received with an insufficient user fee and research shows that the application is an original submission and not a replacement for a prior obsolete submission or a copy for submitting an additional payment.

    1. Establish account on LINUS

    2. Indicate in LINUS the application was received with an insufficient user fee. Using the indicator "Incomplete Payment"

    3. Deposit user fee

    4. Generate and attach the LINUS check sheet to the front of the application

    5. Do NOT establish case in EDS.

    6. Do NOT treat as an expedite request.

    7. If expedite request is for a disaster relief, place the application in a pink folder, do not process as an expedite request. Process as an insufficient user fee application.

    8. Prepare applications to be boxed and shipped to EO Determination Processing Section, Records Unit. The applications submitted with an insufficient user fee must be sorted separately from all other applications and the Form 3210 must indicate that they are insufficient user fee applications.

    9. Count will be provided as a separate line item on the Daily TE/GE Release Report.

  5. Insufficient user fees will not be processed through TEDS until further notice.

3.45.1.10.3  (01-02-2015)
EO Remit - Correct User Fee

  1. Take the following steps to enter an EO remit if application is processed through Legacy.

    1. Select "ENTRY EO REMIT"

    2. Enter the EIN twice at the EIN prompts, once from the Form 8718 and once from the application. If these numbers do not match, IDRS research must be performed to determine the correct EIN.

      If the EIN Then
      Exists on the system Research on EDS and LINUS for Status and continue to step 3
      Does not exist on the system refer to "Building a Record. refer to 3.45.1.19.5" .
    3. verify the information on the document and that on the system are the same

    4. If the entity information in the system is not the same, make the necessary changes by overlaying and manually correcting, and save record.

    5. View POA information and make necessary changes and save.

    6. If the information is the same, add transaction.

    7. Enter the Blocking Series in the "BS" field.

    8. Enter the Serial Number in the "SN" field.

    9. Enter the Post Mark date in the " POSTMARK DATE" field.

    10. Verify the Received Date in the " RECEIVED DATE" field. If the date is different from that on the document, manually overlay the correct date.

    11. Select the form in the "EO Form" box.

    12. Select the appropriate indicator.

    13. Verify you have selected the correct user fee. July 1st postmark dates require a different indicator than the applications received with postmark dates prior to July 1st.

    14. If the fee is different from the amount paid, overlay the amount in the field with the amount paid.

    15. If any of the conditions listed " MEMO, FOREIGN, " exist, select the appropriate condition.

    16. Save.

    17. Select RETURN TO DEFAULTS.

    18. Exit.

    19. Annotate your initials at the top right hand corner of the Form 8718.

3.45.1.10.4  (01-02-2015)
EO - Non-Remit

  1. All original filed EO applications that are received with no user fees will need to have LINUS pre-research conducted on all applications.

  2. CSPC will process the application as a Non-Remit unless LINUS research shows the following:

    LINUS Research shows and and LINUS shows then
    Prior application received and processed as an obsolete application Non-remit application is a valid version correct user fee was paid process application as a Non-Remit application.
    Prior application received and processed as an obsolete application Non-remit application is an invalid version correct user fee was paid process application as an obsolete application
    Prior application received and processed as an obsolete application Non-remit application is an invalid version insufficient user fee was paid process application as an obsolete application.
    Prior application received and processed as an obsolete application Non-remit application is a valid version sufficient user fee was paid Process as a non-remit application.
    Prior application received and processed as an insufficient User Fee application Non-remit application is a valid version   if valid version, process as a non-remit application.
  3. Follow the steps to enter an EO non-remit in LINUS if processed through Legacy:

    1. Select "ENTRY EO NON REMIT"

    2. Enter the EIN twice at the EIN prompts, once from the Form 8718 and once from the application. If these numbers do not match, IDRS research must be performed to determine the correct EIN.

      If the EIN Then
      Exists on the system Research on EDS and LINUS for status. Proceed to step #3.
      Does not exist on the system refer to "Building a Record" .
    3. Verify the entity information on the document and that on the system are the same.

    4. If the record in LINUS shows a valid user fee received and the money has not been refunded and the form version is valid, process as a non-remit application.

    5. If the entity information is not the same, research IDRS updated Entity information. Make the necessary changes by overlaying and manually correcting, save record, and add transaction.

    6. View POA information, make necessary changes and save record.

    7. If the information is the same, add transaction.

    8. Enter the Blocking Series in the "BS" field.

    9. Enter the Serial Number in the "SN" field.

    10. Enter the Post Mark date in the " POSTMARK DATE" field.

    11. Verify the Received Date in the " RECEIVED DATE" field. If the date is different from that on the document, manually overlay the correct date.

    12. Select the form in the "EO Form" box

    13. Select the "non-remit" indicator

    14. Save

    15. Select "RETURN TO DEFAULTS"

    16. Exit

    17. Annotate your initials at the top right hand corner of the Form 8718

3.45.1.10.4.1  (01-02-2015)
Processing Follow-up Applications for a Non-Remit Application

  1. EO Division has approved holding the EO applications if the filer does not submit the appropriate user fee. The application will be held in suspense for 90 days. This is for all applications with the postmark date of July 1, 2006 or later.

    Note:

    A follow-up application must be filed on a valid version. If filed on an obsolete version the application is always processed as an obsolete application.

  2. Research LINUS to determine the appropriate process for the non-remit application. Follow the table below:

    If research shows date of and then and
    Original submission less than 100 days research shows the correct user fee was paid and no refund is showing process application, if on valid version as a non-remit Do not establish case in EDS
    Original submission less than 100 days research shows the correct user fee not paid process application as a non-remit Do Not establish case in EDS
    Original submission greater than 100 days research shows the correct user fee was paid and LINUS does not show a refund process application as a non-remit Do Not establish case in EDS
    Original submission greater than 100 days research shows the correct user fee was paid and LINUS shows a refund process application as a non-remit Do Not establish case in EDS
    Original submission greater than 100 days research shows the user fee has not been paid. process application as a non-remit submission Do not establish case in EDS

3.45.1.10.5  (01-02-2015)
EO Application Indicators

  1. The table below provides the indicators for the EO Applications

    If form type is Fee Schedule is Fee received and postmark date is select indicator
    Form 1023 Part XI (2) $400.00 July 1st or later 3a Initial Appl.
    Form 1023 Part XI(2) less than $400.00 July 1st or later 3a Incomplete Payment
    Form 1023 Part XI(2) greater than $400.00 July 1st or later 3a Initial Appl.
    Form 1023 Part XI(3) $850.00 July 1st or later 3b Initial Appl.
    Form 1023 Part XI(2) less than $850.00 July 1st or later 3b Incomplete Payment
    Form 1023 Part XI(2) greater than $850.00 but not $3,000.00 July 1st or later 3a Incomplete Payment
    Form 1024 3a $400.00 July 1st or later 3a Initial Appl.
    Form 1024 3a less than $400.00 July 1st or later 3a Incomplete Payment
    Form 1024 3a greater than $400.00 and not $850.00 or $3,00.00 July 1st or later 3a Incomplete Payment
    Form 1024 3b $850.00 July 1st or later 3b Initial Appl.
    Form 1024 3b less than $850.00 July 1st or later 3b Incomplete Payment
    Form 1024 3b greater than $850.00 and not $3,000.00 July 1st or later 3a Incomplete Payment
    Form 1025 3a $400.00 July 1st or later 3a Initial Appl.
    Form 1025 3a less than $400.00 July 1st or later 3a Incomplete Payment
    Form 1025 3a greater than $400.00 and not $850.00 or $3,000.00 July 1st or later 3a Incomplete Payment
    Form 1025 3b $850.00 July 1st or later 3b Initial Appl.
    Form 1025 3b less than $850.00 July 1st or later 3b Incomplete Payment
    Form 1025 3b greater than $850.00 and not $3,000.00 July 1st or later 3a Incomplete Payment
    Form 1026 3c $3,000.00 July 1st or later 3c Initial Appl.
    Form 1028 3a $400.00 July 1st or later 3a Initial Appl.
    Form 1028 3a less than $400.00 July 1st or later 3a Incomplete Payment
    Form 1028 3a greater than $400.00 July 1st or later 3a Initial Appl.
    Form 1028 3b $850.00 July 1st or later 3b Initial Appl.
    Form 1028 3b less than $850.00 July 1st or later 3b Incomplete Payment
    Form 1028 3b greater than $850.00 and not $3,000.00 July 1st or later 3a Incomplete payment
    Form 1128 Part III Section A L14 $350.00 Jan 3, 2011 or later Change in Accounting Period
    Form 3115 Part III L 23a $275.00 Jan 3, 2011 or later Change in Accounting Method
    Form 8940 8a, b or c $1,000.00 Jan 3, 2011 or later Misc Determination (a-c)
    Form 8940 8d,e,f,g,h,I $400.00 Jan 3, 2011 or later Misc Determination (d-i)
  2. If no indicator is marked and the fee is anything other than those listed above, select the incomplete payment indicator and process as an application with an insufficient fee received.

3.45.1.10.5.1  (01-02-2015)
EO Remit Application(s) LINUS Data Elements if processed through TEDS

  1. EO applications are processed through TEDS utilizing the Captiva software. Minimal data is manually captured in LINUS to establish the account; all other required data will be captured through TEDS and uploaded electronically to LINUS within 48 hours of account establishment.

  2. The following elements are the minimal data that is captured in LINUS for the EO applications processed through TEDS:

    • Name

    • Fee/Form Indicator (indicated required fee amount)

      Note:

      Verify Money Received Field, if necessary, over ride the amount to reflect the correct amount received.

    • Payment Amount Received

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  3. The following elements are captured in LINUS for the EO applications processed through TEDS with a foreign address:

    • Name

    • Address

      Note:

      On applications with a Foreign address, the entire entity must be captured.

    • Fee/Form Indicator (indicated required fee amount)

      Note:

      Verify Money Received Field; if necessary, over ride the amount to reflect the correct amount received.

    • Payment Amount Received

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  4. The Fee/Form indictor is captured as follows in the table below:

    If Then mark
    Memo Entry Memo Entry Indicator
    Foreign Check Foreign Check Indicator
    Form Type Indicator is not marked Select Indicator closest to the fee paid
    Obsolete Form Version Obsolete Indicator
    Insufficient Fee Insufficient Indicator
  5. Cases processed through TEDS will not generate a Code & Edit Check Sheet. A TEDS folder label is required to be generated and affixed to the case folder.

  6. LINUS records for applications processed through TEDS will not contain POA information.

3.45.1.10.5.2  (01-02-2015)
EO Non-Remit Application(s) LINUS Data Elements if processed through TEDS

  1. EO applications are processed through TEDS utilizing the Captiva software. Minimal data is manually captured in LINUS to establish the account; all other required data will be captured through TEDS and uploaded electronically to LINUS within 48 hours of account establishment.

  2. The following elements are the minimal data that is captured in LINUS for the EO non-remit applications processed through TEDS:

    • Name

    • Fee/Form Indicator (indicated required fee amount)

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  3. The following elements are captured in LINUS for the EO applications processed through TEDS with a foreign address:

    • Name

    • Address

    • Fee/Form Indicator (indicated required fee amount)

    • EIN

    • DLN

    • Postmark Date

    • Received Date

    • Non-Remit Fee/Form Indicator

  4. On applications with a Foreign address, the entire entity must be captured.

  5. Cases processed through TEDS will not generate a Code & Edit Check Sheet. A TEDS folder label is required to be generated and affixed to the case folder.

  6. LINUS records for applications processed through TEDS will not contain POA information.

3.45.1.10.6  (01-02-2015)
EP Remit Applications

  1. EP applications are processed through TEDS utilizing the Captiva software. Minimal data is manually captured in LINUS to establish the account; all other required data will be captured through TEDS and uploaded electronically to LINUS within 48 hours of account establishment.

  2. All EP Applications that are processed through Legacy System require the employee to capture all elements to deposit the user fee and establish the account in LINUS.


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