7.13.1  Determination Letter Applications

Manual Transmittal

August 27, 2015

Purpose

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

Material Changes

(1) This IRM is updated to meet the requirements of P.L. 111-274 (H.R. 946), the Plain Writing Act of 2010. The Act states writing must be clear, concise, well-organized, and follow other best practices appropriate to the subject or field and intended audience.

(2) IRM 7.13.1.1, Overview, is amended to remove forms chart. This information is not necessary in this IRM.

Effect on Other Documents

This supersedes IRM 7.13.1 dated August 20, 2014.

Audience

Tax Exempt and Government Entities
Employee Plans

Effective Date

(08-27-2015)

Robert S. Choi
Director, Employee Plans
Tax Exempt and Government Entities

7.13.1.1  (08-27-2015)
Overview

  1. This IRM gives an overview of the systems Employee Plans (EP) uses to process Determination Letter (DL) applications.

  2. This IRM applies to all EP employees and Cincinnati Service Processing Center (CSPC) employees who process DL applications.

7.13.1.2  (08-27-2015)
Systems

  1. We use the Tax Exempt Determination System (TEDS) as the primary system for processing DL applications, but we continue to use the Employee Plans-Exempt Organizations Determination System (EDS) to close cases and generate DLs.

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

  3. EDS is a national system run in a Sun Solaris environment. Retirement plan sponsors submit applications to EP to determine if they meet the Internal Revenue Code law requirements. EDS maintains inventory for cases in the EP and Exempt Organizations (EO) Determination Letter Programs.

  4. EDS receives data from, and sends data to, several remote systems via Electronic File Transfer Utility (EFTU):

    1. EDS uses data it receives from the Modified Employee Plans / Exempt Organizations Determination System (MEDS) to create and update cases in the EDS database.

    2. EDS sends case data to MEDS daily, including case status acknowledgement data, to manage information reports.

    3. LINUS data is taken in and stored to support manual case entry. LINUS transfers data to EDS if MEDS is unavailable.

    4. Data is sent to the Returns Inventory Classification System (RICS) daily and combined with TE/GE compliance data.

    5. Data is sent to the EP/EO Application Control System (EACS) each business day to forward to either the Employee Plans Master File (EPMF) or the Exempt Organizations Business Master File (EOBMF), and EACS sends data to EDS confirming the positing of data from EDS into EACS.

    6. Data is sent to a contractor (ICF Macro) who performs the Customer Satisfaction Survey.

    7. Data is transmitted via EFTU to Secure Data Transfer (SDT), which uses Tumbleweed Secure Transport v4.8.1, a certified Federal Information Processing Standard (FIPS) 140-2 cryptographic module. Tumbleweed Secure Transport has an integrated web server based off of Apache that uses Hypertext Transfer Protocol Secure (HTTPS) with Advanced Encryption Standard (AES) encryption.

    8. SDT is used to provide files to external IRS customers. SDT is managed and maintained by the General Support System (GSS)-17.

  5. Business Objects replaces the Cyber Security Data Warehouse (CSDW) so users can view, create, and modify inventory and employee reports. Business Objects uses tools to provide a built in interface to query and analyze data and to build ad hoc and canned reports.

  6. Locally developed letters must meet national standards for letter format, content, and style. These standards apply when local offices change nationally approved letters. If a local office changes a nationally approved letter, the letter must still contain the appropriate Office of Management and Budget (OMB) approval number and the Tax Forms and Publications Division letter number. EP Determinations must request approval from the Office of Taxpayer Correspondence for any letter they develop locally or any change they make to a nationally approved letter.

  7. Correspondex is used to automatically generate the Acknowledgement Notice 3335, Letter 4577C, Letter 5289C, and Letter 5290C.


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