7.13.1  Determination Letter Applications

Manual Transmittal

June 10, 2013

Purpose

(1) This transmits revised text for IRM 7.13.1, Employee Plans Automated Processing Procedures, Determination Letter Applications.

Material Changes

(1) Minor editorial changes have been made throughout the text to improve grammar and clarity.

(2) IRM 7.13.1.1, Overview updated to reflect the new application forms.

(3) IRM 7.13.1.2, Systems updated to reflect how the Tax Exempt Determinations System (TEDS) has replaced the Employee Plans/Exempt Organizations Determination System (EDS) as the main system for processing DL applications.

(4) IRM 7.13.1.2, Systems updated to reflect that the Acknowledgement Notice 3335 and Letter 4577C are processed in Correspondex.

Effect on Other Documents

IRM 7.13.1 dated April 1, 2006 is superseded.

Audience

Tax Exempt and Government Entities (TE/GE) Employee Plans Personnel

Effective Date

(06-10-2013)

Robert Choi
Director, Employee Plans
Tax Exempt and Government Entities

7.13.1.1  (06-10-2013)
Overview

  1. This IRM provides an overview of the systems available for processing Employee Plans (EP) determination letter applications.

  2. The guidance in this IRM applies to all EP employees and Cincinnati Service Processing Center (CSPC) employees that process determination letter (DL) applications.

  3. DLs may be requested using the following forms:

    Form Revision Date
    Form 5300, Application for Determination for Employee Benefit Plan. April 2011
    Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans. March 2008
    Form 5309, Application for Determination of Employee Stock Ownership Plan.
    NOTE: The Form 5309 must be filed with a Form 5300.
    January 2012
    Form 5310, Application for Determination for Terminating Plans. April 2006
    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.
    NOTE: The filing of Form 5310-A will not result in the issuance of a determination letter.
    November 2010
    Form 5316, Application for Group or Pooled Trust Ruling or Cover Letter. June 2011

    Caution:

    DLs cannot be issued for an out of date application. If one is received, request that the taxpayer send in a completed version of one of the current forms.

7.13.1.2  (06-10-2013)
Systems

  1. TEDS is the primary system for processing DL applications. Although, DL applications are processed in TEDS, they will continue to be closed and DLs generated on the EDS.

  2. The Letter Information Network User Fee System (LINUS) is used to process the user fee applicable for the DL application. This initial input data for user fee is then automatically transmitted to TEDS. The Form 2221, Schedule of Collections, acknowledgment letters and the EP Determination Input Sheet are generated from LINUS.

  3. EDS is a menu-driven system with four available subsystems.

    1. Data Transcription Subsystem (DTS) is used to establish the application information on the EDS database. However, DTS is not used when applications are established on TEDS which is now the primary system used for establishing cases.

    2. Inventory Control Subsystem (ICS) replaced the EP/EO Applications Control System (EACS) for tracking cases from opening to closing.

    3. Letter Generation Subsystem (LGS) provides a means to generate additional information and closing letters.

    4. Management Information Subsystem (MIS) generates reports on user fees, unpostables, and employee roster.

  4. The use of DTS and LGS are mandatory. DTS creates records for all documents entered and stores the records for later use in LGS. EDS creates action history records which identify each action taken and identifies the employee who took the action. In order to detect security breaches, local letter generation systems are not permitted for the determination letter. The exceptions to the use of LGS are as follows:

    1. If a letter does not exist for a specific situation or the existing letters are inappropriate, a manually prepared letter may be used. See (5) below for instructions regarding the use of locally developed letters.

    2. If the LGS is non-operational for a period of time that would hamper the normal workflow, the EP Determinations Manager, may authorize the use of manually prepared letters. The letters exhibited in IRM 7.13.5, Letter Generation, will be used as pattern letters when the system is non-operational.

  5. Locally developed letters must meet national standards for letter format, content, and style. These standards also apply when local changes are made to letters approved for national use. If a local change is made to a letter approved for national use, the letter must still contain the appropriate Office of Management and Budget (OMB) approval number and letter number used by the Tax Forms and Publications Division in the Washington D.C. office. EP Determinations must request approval from the Office of Taxpayer Correspondence for any locally developed letters or local changes made to letters approved for national use.

  6. Correspondex is used to automatically generate the Acknowledgement Notice 3335 and the Letter 4577C.

  7. Centralized Authorization File (CAF) is no longer used for EP determination letter cases.


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